Debate: Programme for Government – An Economy Fit for the Future - 08 September 2026
Watch on YouTubeVideo summary
The parliamentary debate on the Programme for Government centered on defining an economy fit for the future, with the Cabinet Secretary emphasizing sustainable growth as essential for funding public services and fostering innovation in sectors like AI, space, and net-zero technologies. Proponents highlighted Scotland's historical performance, noting that GDP per person has grown faster than the rest of the UK since 2007, while outlining new initiatives such as a National Council for Economic Growth, a Major Projects Office, and a High Growth Unit to accelerate investment and streamline planning. However, significant criticism arose regarding the economic model, with opponents arguing that record-high taxes, energy costs, and business rates have created a "welfare economy" rather than a "wealth economy," leading to company liquidations and job losses in industries like shipbuilding and electronics. The discussion also touched upon a substantial £800 million gap in the tax base, which the government attributed to opposition inaction while critics pointed to slow earnings growth and regulatory barriers as primary causes.
A major theme of the debate was the urgent need for regionalization and addressing specific geographic disparities, particularly concerning islands and rural communities. Critics argued that national statistics were misleading because they masked stagnation in regions like the Northwest compared to Scotland's overall figures, and they called for powers to be pushed from the center to local authorities to better address local needs. Specific failures were highlighted regarding connectivity, including the loss of lifeline air services on islands, widespread ferry disruptions, and delays in digital infrastructure rollout, which undermined the potential of these areas as productive engines. Furthermore, concerns were raised about a projected labor shortfall of 1.3 million people, contrasting sharply with the government's pledge of only 150,000 apprenticeships, while rural advocates decried policies like food price caps and proposed land sale restrictions that threatened the viability of farming and fishing sectors which contribute significantly to the Gross Value Added.
The discourse extended to broader structural issues, including the tension between neoliberalism since the 1980s and a vision for public ownership in key sectors like housing, energy, and transport. Speakers advocated for expanding community control over services, citing successful municipalization of bus networks as a model to improve patronage and timetabling, while also calling for fair work laws and childcare support to boost economic participation among care and hospitality workers. Innovation was celebrated through success stories like neuromorphic photonic chip development in Glasgow, yet this optimism was tempered by warnings about the impact of hyperscale AI data centers on local well-being and the need to ensure that inward investment retains intellectual property within Scotland. The debate concluded with a consensus that while external constraints from Westminster and global inflation present challenges, the government must continue to drive tailored economic strategies that prioritize ordinary families, eradicate child poverty, and secure energy independence through devolved powers, despite the final vote on the main motion being defeated.
Read the full video transcript
All agreed.
>> We are all agreed. The next item of
business is the debate on motion 1070 in
the name of Steven Flynn on program for
government and economy fit for the
future. Members wishing to speak should
press the request to speak buttons now.
I call Steven Flynn to speak to and move
motion 1070.
12 minutes when you're ready. Cabinet
Secretary
mic on.
>> Yeah. Thank you very much, presiding
officer. And from the outset, let me be
clear with Parliament. In fact, let me
be unambiguous and emphatic. This
government believes in sustainable
economic growth and we intend to deliver
it. And this parliament and the public
who sent us here to represent them will
welcome that focus. A focus that runs
right through the heart of our program
for government. Because without growth,
we cannot fund the services that the
public rely upon. But with it, we can
innovate, we can develop, and most
important of all, we can create jobs and
opportunity right here in Scotland. Now,
presiding officer, that alone is a prize
that is too great to ignore. And to
achieve it, we start with solid
foundations.
Because members will be all too familiar
with the fact that since 2007, GDP per
person has grown faster in Scotland than
the rest of the UK as a whole. They will
know that in Scotland our productivity
has been more than double the UK
average. Just as they will have read the
research published by the Royal Bank of
Scotland. It shows Scotland leading the
UK with the fastest growth in new
startups. But let me repeat this is just
a starting point because working with
our newly established National Council
for Economic Growth, we intend to make
Scotland the best place on these islands
to do business. Now, it's a bold vision
built on protecting what we have and
building for the future. One that seeks
to capitalize not just on our history,
not just on our natural environment, but
most of all, one that seeks to
capitalize on the energy, skills, and
talent of our people.
>> Of course, I will.
>> Rachel Hamilton, thank the cabinet
secretary for taking in the
intervention. Yesterday, we were at uh a
fiscal literacy event, but I noticed
that the uh cabinet secretary wasn't at
that event. Maybe he knows everything,
but what we did learn is that there's an
800 million uh tax uh base gap. If
everything is so rosy in his
introduction to his speech and
Scotland's doing so well, where is that
tax base gap come from? Cabinet
Secretary.
>> Thank you, Deputy Presiding Officer. I
think it's long overdue that the Tories
took a fiscal literacy test given uh
given they are of course the party of
Liz Trust but I'll leave the the member
to to reflect on that very small matter
of collapsing the entire UK economy as
well. So they're getting on with
reflecting on those things. What we'll
do is create an economy where
longestablished sectors such as tourism,
food and drink and financial services
can adapt, innovate and stay ahead of
the global competition. An economy where
new sources of growth across energy, net
zero technologies and infrastructure
generate long-term sustainable
employment and help shelter our economy
from global shocks.
>> Yes, of course I can.
>> Thank the cabinet secret for giving way.
He makes an important point about these
sectors driving growth, but one of the
big challenges for Scotland is firms
based in Scotland. They mentioned there
was a high rate of startup growth, but
one of the big challenges Scotland has
is the amount of firms that don't grow
and then are bought over by overseas
conglomerates. There's a real challenge
of retaining massive firms in Scotland.
>> Cabinet Secretary.
>> Yes. And if Mr. Sweeney bears with me
just a moment, I will come to that very
point because we have some good news in
that regard. But of course, beyond the
energy net zero and infrastructure
space, we also want an economy where our
creative sector continues to break new
ground, challenge convention, and shape
our national brand. An economy where
emerging sectors such as space, AI, life
sciences, and critical technologies have
the talent, investment, and
opportunities they need to get stronger
and create businesses that start up and
scale successfully. To repeat, because
it does bear repeating an economy that
generates well-paid jobs for people in
every corner of Scotland. Now, I'm
cleareyed enough to know that to deliver
those aims, we must work at pace. For
investors, we know that the processes
involved in moving from idea to
implementation can too often be too
sticky and too slow. That is why this
government will create a major projects
office to accelerate progress on
nationally and strategically significant
investment projects. It will unblock
barriers and unlock private investment.
Of course,
>> Mr. Johnson,
>> I'm very grateful to the cabinet
secretary for giving way and while I I
think it is welcome to facilitate high
growth, it's not a danger of duplication
the creation of this unit, isn't that
what Scottish Enterprise is for? And is
there any intent to reform the
enterprise agencies?
>> Cabinet Secretary, I
>> I don't believe that there will be any
duplication. I'll certainly make sure
that that's not the case when when we're
talking about the future of the
enterprise agencies. I think it is
however important to recognize the fact
that we have a direction of travel in
relation to regional economic growth and
I look forward to saying a little bit
more of that in my speech and I'm sure
Mr. Johnson will agree with me on many
of those points as he appears very keen
to do so on far too many occasions up
till now. But as I reemphasize that our
determination is to unblock barriers and
unlock private investment. We do
recognize that it's not enough on its
own. We can reduce barriers and as a
result this parliament we have a
responsibility as a parliament to make
sure that when we regulate we do so
simply we do so flexibly and we do so as
a last resort for the innovators. We
know that too often it can be too easy
to find the capital to support and
develop your ideas and products not here
in Scotland but abroad. But we want you
to stay in Scotland. We want you to
scale in Scotland because your success
is our collective success. That is why
this government will create a new high
growth unit to provide the wraparound
support you need. It will build upon the
support offered by our enterprise
agencies and our investment bank. But
it's not enough on its own. So we will
use the power of public sector
procurement to stimulate innovation and
provide new business opportunities for
Scottish companies and we will empower
our regional economies to thrive.
This point will require an element of
bravery from the government. And on the
point of bravery, I see Rachel
Hamilton's coming back in once again.
>> Oh, Mr. Flynn, I'm not scared of you. Um
98% of uh businesses in Scotland are
small businesses.
Your speech is talking about scaling up
um and being supported by SOC and
enterprises. They tend to support bigger
businesses.
Isn't it time we gave small businesses
support too because they are the drivers
of our economy?
Cabinet Secretary
>> Rachel Hamilton, as well as going to a
fiscal literacy course, perhaps should
also look at some of the other schemes
that are in place from this government
to support small businesses, such as the
very generous small business support
that we offer to ensure that they don't
have to pay business rates in Scotland,
which I think is incredibly important to
the bottom line for many of those small
businesses that she and I want to see
thrive. But she appears to she appears
to be suggesting she's not in favor of
the small business bonus which I think
will come as a surprise to many of the
businesses in her constituency. Mr.
Renie of course
>> Mr. Is the cabinet secretary able to
provide the chamber with an update on
his relationships with Alvance and the
DL plant with Liberty Steel? And
businesses will find it and
entrepreneurs will find it frustrating
that the government is prepared to put
hundreds of millions of pounds of
financial backing for those companies on
the promise that they would make
significant investments that have not
been fulfilled. So what action is the
government going to take for nothing
else at least to restore some confidence
amongst those entrepreneurs that this
government is on their side?
>> Cabinet Secretary
>> I thank Mr. Renie for his question and I
I know that he's been very diligent on
this issue over very many years. I think
it's important just to to place on
record that sometimes in life and
sometimes in politics you don't engage
with people who you believe to be acting
in good faith and if I may suggest that
that is the case in this regard not in
regards to Mr. already but of course in
regards to the company who are
associated with DL and I expect them to
respond in a much more positive fashion
moving forward than they have up till
now and on the specifics that Mr. Renie
seeks an answer to. I can of course give
him the commitment to write to him in
detail on this very topic and to perhaps
meet with him in person if he feels that
will be of benefit going forward.
So, so what so what lessons has the
government learned from its engagement
with Mr. Gupta and the GFG Alliance
because the serious fraud office are
investigating them. There have been
numerous years where they've not
published financial accounts. So surely
the government must reflect on the
decisions that it took at the end of the
last decade so that we do not repeat
these mistakes. cabinet secretary. I
>> look, I I do not think it's a mistake
for government to want to protect jobs
in Scotland. In fact, I think it's
incumbent upon us to do that. And
there's a number of examples that I
could point to over the course of recent
years where we've done exactly that and
we've been well-intentioned in our
approach and we've approached it in good
faith. Unfortunately, that good faith is
not reflected by everyone who we have
dealt with. And as I've said, I'm more
than happy to write to Mr. Renie in
relation to the specific points that he
has made. But the point I was seeking to
to make, deputy presiding officer,
because I am conscious of time, is that
when we seek to allow our regional
economies to thrive and to provide that
empowerment, it will require an element
of bravery from government, not just
because it represents public sector
reform, but because it involves moving
power from the center outwards. But I do
believe that there is shared ambition
amongst most in this parliament to do
just that. And that shared ambition
extends itself to the support we have in
this chamber for a variety of issues.
Whether that's expanding child care
because it can have a positive impact on
our economy. Well, that's the important
role that developing and nurturing the
skills of tomorrow can have on our
economy and the important role that
bringing the long-term unemployed back
into the workforce can have on our
economy. And Deputy Presiding Officer, I
do not say shared ambition lightly. I
say it because it is essential that we
acknowledge that economic growth cannot
just be about this government. It must
be about this parliament. Yes, we will
have our differences, but as members of
this parliament, we must be willing to
come together to deliver for our economy
and the people who sent us here. And
this parliament must recognize that the
world around us is turning and Scotland
cannot afford to stand still or to yearn
for the past. To do so would repeat the
mistakes of prime minister after prime
minister after prime minister after
prime minister. That's just the last few
years. uh Westminster, we must instead
recognize that domestic supply chains
matter, that energy security is not a
choice but a necessity, and that our
partnership with European allies is
essential. To be clear, it's why this
parliament must fight to protect the
energy jobs that we have today, but also
be big enough to back the energy
opportunities of tomorrow. the wind,
solar, and pump storage projects that
will not only provide us with ever more
abundant clean energy, but that will
allow us to create new jobs and build
the expertise we need to export our
skills across the world. Not to run and
cower from the opportunity in front of
us, like those who deny science on the
benches to my left seek to do, but to
highlight the economic opportunity that
energy abundance has and continues to
offer our nation. Because not only can
it offer jobs, it also offers us a
unique opportunity to anchor the digital
world right here in Scotland. It is our
competitive advantage and we only get
one opportunity to capture it.
>> Of course I will.
>> Send the Carson.
>> I I thank the cabinet say for giving
away and and I think there's no doubt
the importance of energy uh and so on to
create jobs. So why has this government
over the last 20 years completely failed
to take communities in rural Scotland
with them, bring them on board, and yet
we see communities fighting on a daily
basis to prevent the the
industrialization of rural Scotland with
massive turbines, uh, solar parts, now
AI centers. Why is the government failed
to take the communities with them?
>> Look, I I thought that the Tories
believed in investment. I thought that
they believed in energy abundance and I
thought that they understood the
constitutional makeup of these isles
because as Finley Carson will know
responsibility for the grid in Scotland
does not rest with the Scottish
government. Nisso plans rest with the UK
government and I will and planning is of
course within our remitt but he will
recognize and understand on these aisles
energy needs to get from A to B and I
will come to that very point in due
course.
>> Yeah I have been very generous uh deputy
presiding officer with my time. I'm very
conscious that it has eaten into my time
in terms of being generous in that
regard. So let me just jump to a
concluding point because I think all of
us in this chamber have watched the
doommongering that has stemmed from
Westminster over the course of recent
years and we've seen it just yesterday
with Rachel Reeves, sorry, John Healey
speaking again about the future of the
UK and what a contrast that doomongering
is to the opportunity that we have here
in Scotland to grasp that renewables
opportunity to look at the digital world
in a new way to make sure that our
financial services are growing to ensure
that those innovative technologies such
as semiconductors are harnessed and
secured in Scotland for our domestic
security going forward. That's a hopeful
optimistic future for Scotland. It's
something that we should be very proud
of and I of course therefore move the
motion in my name.
>> Thank you.
>> Call Daniel Johnston 5 minutes please.
Thank you very much. I assume my five
minutes is a little bit more clear
tailed than the cabinet secretaries 10.
Uh but uh uh and I moved the amendment
in my name. Um I spent the summer with
people asking me the constant question,
what did I think was going to be in the
program for government? I said I didn't
know. And actually I should have been
much more confident because there's two
big ideas. One about ritualization and
the other about health service for both
came from the Labor Party manifesto. So
um you know but you know
But I I think what we have to do is look
at these issues seriously. I think it is
important that we move from an agenda
that has come from this uh parliament I
think across different administrations
which is focused on building central
bureaucracy to one about delivery. But I
am concerned that we have had a lack of
clarity and articulation for the
government so far. But I make these
comments because I do want to be
constructive. I think this agenda is an
important one. And so the comments that
I make are are in the sense that I would
like to see a reform agenda that is
genuinely cross party because
longlasting reform requires cross party
input and consensus. But I think
fundamentally general Petraeus uh the
the leading general and strategic
thinker has a theory of change which
relies on four key things. One is having
a big idea, communicating the big idea,
having a a mechanism for delivery and
then refining. My concern is is that
while the government has said that what
it wants to do is have public sort of
person- centered delivery, what they've
not said is what assets does it believe
it has and how does it believe that it's
going to reorganize them to that
delivery and it's certainly I don't
think in my view has communicated that.
So looking at that more specifically at
regalization, this is something we have
to look at. Now the cabinet secretary
referenced uh Scotland's growth figures
and they are interesting but we should
look at growth figures around the
country. Manchester's GDP per head was
1.7,000 pounds lower per head than
Scotland in 2016, but it overtook
Scotland in 2022.
Since 2009, Scotland's productivity grew
13%.
But it's only one 1% of that growth
since 2020. In the Northwest, it's the
reverse. It's had 11% productivity
growth since 2009, but 10% of that was
since 2020.
something is happening in England's
regions that is not happening in
Scotland's regions. We need to analyze
that and bottle it. Now I worry that the
regionalization agenda is and while it's
important is being blown off course in
recent days over focus on council
merges. I think we need to see an
articulation about why regionalization
matters and it's not just about the
numbers elsewhere. is because I believe
regions are the fundamental building
blocks that we can build economic
growth. It is the area where we can
create coordinated plans for delivery,
create partnership between government
and industry and trade unions, where we
can plan infrastructure to grow local
economies. Ultimately, my view is this.
Since 1999, we have been using devolved
powers to recreate a unitary uh state. I
think that has been a mistake. What we
need to do is use this reform agenda to
reverse that to push powers out from the
center. I think there is a fear in local
government at the moment that what we're
talking about is sucking powers up from
local authorities. If you speak to local
leaders in England where we've got
successful combined authorities, they
are clear about one thing. Ignore
mayors. Ignore those structures. That's
not what it's about. is about having a
plan about coordinating across local
authority areas and power being pushed
down from the center. That's what we
need to see in Scotland. And I think
likewise in other areas of public sector
reform, we need to hear more about the
how. How will this make things better?
But critically, what is the organizing
principle that will be changed and how
will we ensure local accountability? But
in my final minute, I just want to also
draw attention to the skills agenda. The
the labor market projections show that
we will have a 1.3 million person
shortfall in labor in the coming years.
But all we had in the plan, the program
for government was 150,000 apprenticips.
You divide that by five and you come up
with a figure of 30,000. That number
sounds familiar. It was the pledge from
the last parliament for the number of
apprenticeships. But over the last 5
years, the number of apprentichip start
has never exceeded 26,000.
So, it's a recycled pledge and one which
doesn't acknowledge the shortfall in the
last few years. We need a skills agenda
that's not just about catching up. We
need one that's about upskilling and
reskilling. One that focuses on needs,
how we ensure that people stay in the
workplace with an aging population.
Scotland has enormous assets and huge
potential. We are a small nation, but
one that can be flexible. But above all
else, we have people with enormous
potential and talent. We need to make
the most of them. Thank you, Deputy
Presiding Officer.
>> Thank you. Can I ask Mr. Johnson to move
amendment 1070.1?
Mr. Johnson, can you move your
amendment?
>> I did that at the beginning. I moved the
amendment in my name if I didn't
previously. Apologies.
speak to and move.
>> Welcome offer to speak to and move
amendment 1070.4
10 minutes please.
>> Thank you deputy presiding officer.
Another day another debate on the
economy and economic growth. What is
that? No politician in this parliament
since 2010 has experienced it. So how
can they debate it?
Deputy Presiding Office, in the last 10
years, GDP per head, which is the only
true measure of prosperity, has been
anemic in the UK, in Scotland, and in
Europe. For example, in 10 years, France
up 8%.
>> UK No, I'm going to continue. I'm going
to make some progress. France up 8%, UK
up 5%, Germany up 3 and a half%,
Scotland up 3%. To be clear, that's
inflation adjusted over 10 years,
meaning all four countries have grown at
less than 1% peranom. So if misery likes
company, it's not just us. But compare
that to the USA with 18% real growth in
the same decade where GDP perhead is now
one and a half times that that of the
UK. And Mr. Flynn and the Tartan army
saw that firsthand in Boston this
summer. So what is to be done? Well,
it's actually pretty simple.
How about we adopt some policies which
drive economic growth? Before I give you
some examples, why bother?
Deputy Presiding Officer, yesterday we
had a very worthwhile workshop here in
Hollywood with Spice Fraser Islander and
Scottish Fiscal Commission. I think all
members would agree it was a sobering
day. The Scottish government is facing a
5 billion black hole over the next 5
years and there are no easy answers. S&P
policy decisions, well-meaning no doubt,
have pushed welfare spending up to
record levels, public sector employment
and pay up to record levels, government
borrowing and debt service up to record
levels, and taxation up to record
levels. The only way out of this squeeze
is to create economic growth. But the
only record here is it's close to zero.
Population in Scotland is 5 a.5 million,
comprising 900,000 children under 16,
3.6 6 million adults of working age and
1 million pensioners. The 3.6 million
adults fall into three categories. 2.1
million working in the private sector,
600,000 the public sector and 900,000
not working. The welfare economy created
by Nicholas Sturgeon and promulgated by
the S&P for the last 10 years has been
very good for those who work in the
public sector and for those who do not
work. But it's been disastrous for the
private sector. For the public sector,
20 years of upwards only pay increases,
no redundancy policy. And final salary
pensions, loan six abolished in the
private sector. For those on welfare,
the most generous regime in the UK with
Scottish social security already costing
1 billion more than UK equivalent. But
for the private sector, well, they just
have to pay for it, right? Six income
tax bans making Scots the highest tax in
the UK, driving productivity down.
Energy costs a record high level.
Employment taxes at a record high level,
minimum wage at a record high level, and
business rates at a record high level.
Is it any surprise when I meet business
owners? They just shake their heads in
despair. Those bought shoulders are now
shrugging their shoulders. Why bother
growing their revenues when it's all
taken away? Why bother hiring new staff
or expanding their premises when
additioning costs are so punishing?
Deputy Presiding Officer, more than half
of the private sector employ workers are
employed by small mediumsiz enterprises.
Surely the alarm bells must have sounded
when the government just learned that of
the top 500memes in Scotland, onethird
reported the revenues went down in the
last 12 months. And just today, just
today, no, I'm going to continue for
now. Uh just today VG Meathers, Hollers
and Canour have gone into liquidation
after 6 years of trading citing
skyrocketing fuel prices, soaring
insurance premiums, mounting compliance
burdens, and rising maintenance costs.
Deputy presiding officer, it's time now
for a reset.
We need to build a wealth economy rather
than a welfare economy.
It is only the private sector that can
create the wealth that pays for public
services and welfare. So, let's
implement policies to make work pay, to
reward workers who work, to incentivize
business owners to invest in their
companies, and to focus on jobs. And why
focus on our base of 380,000memes
in Scotland? Because the days of mass
employment in Scotland are over. We
discussed this in the chamber last week.
We highlighted include where 16,000 jobs
in ship building give way to 8,000 jobs
in electronics give way to 2,000 jobs in
call centers and ever decreas decreasing
circles. Now the member for Imberly last
week put on the record that the blame
for that lies with the Tories. Well,
it's not down to me to defend the
Tories, but that is just a lazy trope.
That is that is that is just a lazy
trope designed to fit a political
narrative. The reality is that by the
1980s and I was there in that time,
South Korea was building ships at
onethird of the price and in onethird of
the time as the cloudside yards. It was
international competition which closed
the shipyards. Similarly on electronics
in greenox, it was well known 10 years
before it closed that IBM could
manufacture cheaper in Hungary and
Bangladesh and so they left. So that is
why we should focus all our attention on
our base of 380,000memes
because they are loyal. They they are
local. I'm going to continue. They are
local. They're loyal to their
communities and they won't disappear
overseas so long as they remain
competitive. This is our opportunity now
to get them inside incentivized to grow
their revenues, invest in the premises
and people and employ local ad adults
who can be retrained and reskilled.
But in order to do that, we need to
reduce their cost of doing business. And
to deliver that, we need a coordinated
approach between Westminster, Hollywood,
and local authorities to enact policies
which drive economic growth. Let me give
you five short examples. Policy number
one, cheaper energy. My colleague Dun
Duncan Massie will expand on this, but
it's clear we cannot re-industrialize
Scotland with an energy cost at four
times the US and seven times China. And
it's time now we use our own North Sea
gas as our transition fuel.
Policy number two, lower taxes. If the
government increases taxes on people who
work while paying people more who don't
work, don't be surprised if more people
don't work. Instead, lower the tax rates
and give everyone an incentive to work.
Policy number three, skills and
training. One quarter of S1 pupils don't
have the literacy to access education.
Let's fix that and stream them into the
Swiss head, hands or heart at 12 and get
them into meaningful technical jobs
through the schools and colleges. And
for adults, create a lifelong learning
program for continual reskilling and
retraining.
Policy number four, deregulation. Get
rid of the business prevention officers,
simplifying fasttrack planning decisions
formemes, and remove useless EU
bureaucracy such as GDPR.
Policy number five, no more gimmicks and
no more woke. To the cabinet secretary,
I say, "Please just drop the food price
cap. They tried it in Hungary and the
poor went hungry." No more performative
debates on Gaz or transgender and never
end them. Just get out of the way and
allow our own very creative and
innovative Scots to build businesses and
create jobs. What is the objective here?
Simply, very simple. to build a new
modern Scotland which builds prosperity
for all through well-paid and meaningful
jobs rather than through welfare. To
create a joined up industrial strategy
for Scotland based around our 10, not
three, worldclass centers of excellence,
financial services, advanced
manufacturing, energy, food and drink,
tourism and hospitality, creative
industries, life sciences, agriculture,
fisheries and marine. to get our young
people streamed into these sectors
primarily through our schools, colleges,
and apprenticeships. And we're adding
value, our universities, to get our
adults reskilled and retrained with an
objective to grow our working population
from 2.7 million to 3 million by helping
300,000 Scots of welfare into work and
to equip our local authorities with
10-year plans to regenerate their town
centers with business premises formemes
with health, housing, and transport
solutions for local workers, which will
rebuild civic pride with one single
objective to create wealth, which which
will in turn create health and
happiness.
Deputy presiding officer, the laugher
curve is never wrong. Increase taxes and
you will collect less tax. Reduce tax
rates and you will collect more revenue.
Look at Sweden 20 years ago. Between
2000 and 2017, they reduced their tax
ratio from 51% to 44% of GDP and they
now collect an extra 20 billion peranom.
It's time to drop the mindless ideology.
Tax the rich. Well, the rich is 1% of
the population is already contributing
30% of income tax and the top 10%
contribute 50%. What happens when they
stop striving or retire early or leave?
It's pretty simple. Newton's third law
says every action has an equal and
opposite reaction. Increasing tax rates
reduces revenue collection. Reducing tax
rates increases revenue collection. Go
figure. I move the amendment in my name.
>> I call Patrick Harvey. 7 minutes please
uh to speak to and move amendment
1070.2.
>> Thanks presiding officer. There might be
a little bit of a key change at this
point in the in the debate. I I'd like
to begin by acknowledging some aims that
the Scottish government have and some
aims that the UK government have that I
share and which I hope they share with
each other. The the Scottish
government's motion talks about raising
living standards, a strong and
sustainable economy, investing in
highquality public services, increasing
climate resilience, and tackling the
climate and nature emergencies.
Any progressive party or government
should share those objectives. and the
the UK government. I'm slightly
surprised that the the Labour uh opening
speech didn't champion uh a little bit
some of the prime minister's remarks in
his first speech. Uh Andy Burnham as
prime minister promised the biggest
changes in the last 40 years. He talked
about a new economic model. He said four
decades of the neoliberalism that began
in the 1980s have not been kind. He said
in the 1980s Britain took some wrong
turns. political power was centralized,
economic power privatized, large parts
of the country de-industrialized, and
they still haven't recovered. This is
ambitious rhetoric. It remains to be
seen whether any of that turns into
action on the scale that's necessary to
meet that challenge. And critically, if
there is action to follow uh the on the
scale of that challenge, it must include
bringing much economic power back under
democratic control.
as well as centralization,
privatization, and de-industrialization.
The harms of the neoliberalism that
began in the 1980s also included the
growth of extractive industries,
exploiting people and planet, and hugely
growing inequality. Now, we can't simply
reverse time, but we can begin to repair
the damage on privatization. Scotland
never copied the doomed experiment of
privatizing the water industry and has
already recently taken Scot Rail back
into public ownership, but there's far
more that we can do to grow public and
community ownership in our economy. The
current moves toward bus franchising
should be a first step toward fully
publicly owned bus services. Public
stakes in renewable energy and
investment in publiclyowned and operated
heat networks can also play a
significant role. And we can begin to
reverse decades of harmful drift on
housing policy where social housing was
sold off and new build was directed by
invested interest investors interests
instead of by social need. Changing it
would take time but routes to bringing
private rented housing stock into social
rent and ensuring that land use in
future is determined by local housing
needs would be a strong start. I give
way
>> Daniel Jones.
>> I'm very grateful to Patrick Harvey for
giving way. I was interested by that
detail within the green amendment. When
they say stock transfer, are they you
inferring that there would be market uh
uh uh uh level compensation or what does
he envisionage uh that transfer
entailing?
>> Mr. Harvey, it
>> I certainly don't imagine it would be on
the scale of wholesale stock transfer in
the way that we saw away from the social
renting sector. But if any landlord
believes that they're not making enough
extractive profit out of private rents
anymore in the face of rent controls,
they should be given a route to make
sure that that h that home can move into
the social rent sector with tenant
insight. There are other options that I
think the government has already started
exploring on that and we should build on
it on poverty and insecure work. Uh
again, good intentions in the Scottish
government have been the beginnings of
important changes in the application of
fair work principles, but here we're
held back by the devolution settlement.
With more power to act, we could achieve
fair working conditions and an end to
poverty wages throughout the economy.
And for those who are angry about social
security uh costs, I would remind
members that poverty wages are the
overriding reason why so many workers
depend on in work social security
benefits. On union rights, the UK
government has taken some good first
steps, repealing some of the worsts of
recent anti-UN laws. That agenda can go
further. Devolution doesn't let us
legislate for that, but the Scottish
government could work with the trade
union movement to drive up membership,
especially in under unionized sectors
like hospitality and the gig economy.
Union organization helps drive up
standards. It rebalances power in the
economy and has been shown to cut
inequality as well. On deregulation,
another feature of 1980s neoliberalism.
The Scottish government's better
regulation framework is not as
simplistic as a straightforward
deregulation agenda, but it too often
places the interest of business ahead of
the purpose of serving the public
interest. And many regulators in
Scotland have had legal duties imposed
on them to put economic growth ahead of
the public good, ahead of public health,
and ahead of protection for the
environment. You don't need to share the
green skepticism about GDP to recognize
that regulators should be putting their
regulatory purpose ahead of boosting GDP
because a truly successful economy is
one that respects those priorities while
meeting people's material needs on wage
and wealth inequality. the gulf between
the highest and lowest paid and the
extraordinary growth in social and
political power of the super rich to
control how we live our lives, the ideas
we're exposed to, how we see the world.
That must be confronted uh as well. And
this week, yet again, Scotland and the
UK has seen how profound a threat we now
face from far-right ideas, racist and
anti-immigrant conspiracy theories which
some of the wealthiest people on this
planet are propagating. Redistributing
power in our economy must mean
redistributing wealth. And again,
Scotland has taken initial steps with a
fairer tax system, but that must be only
the beginning. and every level of
government must do more, ensuring that
asset wealth is part of the tax base.
If we do all of this, not only do we
achieve a more equal society, but we
also achieve an economy which has the
resources to invest collectively in the
things that improve our lives
collectively, health care, education,
community facilities, the public realm,
and so much more. Because the economic
model that has been dominant for decades
has caused inequality.
It's allowed exploitation. It's
accelerated environmental destruction.
But it's also allowed our public
services and our public realm to be
degraded when they should have been
renewed for the 21st century. Presiding
officer, all of this can and must change
if people are going to be given a real
reason to believe that politics is
capable of improving their lives and
their communities and building a world
that we can pass on to the next
generation with pride. I move the
amendment in my name.
>> Thank you. Can I call Rachel Hamilton to
speak to and move amendment 1070.3
6 minutes please?
>> Thank you preciding officer and I move
the amendment in my name. Well, where to
start? I'm going to attempt by uh
speaking to some of the amendments to
Steven Flynn's motion. But what I would
say is that Scottish Conservatives do
agree on some aspects of program for
government, which are around uh public
uh sector reform and uh procurement
modernization, which we heard a lot of
this morning. Uh businesses need support
to be able to scale up and they need
access to public sector procurement,
particularly Mr. discipline in the uh
sector of AI which seems to be there
seems to be a lack of guidance from
government but here we are we've got
Steven Flynn and John Swinny trying to
rebrand two dec decades of economic
failure as a fresh start it's not a
fresh start they promised an econ
economy fit for the future but Scots are
still being punished with high taxes and
whilst their businesses face rising
costs costs, their sluggish growth, and
yet they want more reviews and
consultations put onto businesses who
are just trying to survive. Scotland
needs action from the S&P. It doesn't
need any more dithering. We've seen
enough of the dithering. We've got a
high tax agenda. We've got a high spend
agenda. And the only way we are going to
ensure that we've got public services
that are fit for purpose is to ensure
that we cut taxes. Now, if I look at
some of the the the information that we
received yesterday at the fiscal
literacy and I I reiterate my point. I
believe that the cabinet secretary
should have been there because he would
have heard what the rest of us and his
S&P backbench colleagues heard.
Scotland has lagged behind the rest of
the United Kingdom for a decade decade
and that is at a cost of 12 billion and
the benefits bill which Patrick Harvey
talks about is is nearly 10 billion that
will reach 10 billion by 2030. Yeah, of
course. cabinet secretary. Just as a
point of clarity for Rachel Hamilton,
because she's placed on record twice
now, uh where I was yesterday, um some
of us have child care commitments, uh on
a Monday, and I wouldn't want her to get
into the space of trying to make a
political point in relation to myself,
which I'm sure she'll try to use
elsewhere, without recognizing the fact
that I I wasn't able to be in Edinburgh
yesterday because like a lot of people
in this parliament, I have children, and
I'm sure she'll reflect upon
Rachel Hamilton.
>> Yes. And I totally accept that I had
three children um of a young age when I
started here in 2016 and and had child
care responsibilities as well. Um but
the S&P's own fiscal watchdog says that
weak earnings and employment growth are
eroding Scotland's tax base. The
Scottish Scottish Fish School Commission
identified an 888
million pound taxbased performance gap
in 202425
and that was driven primarily by uh slow
aggregate earnings and employment growth
in Scotland uh that was slower than the
rest of the United Kingdom. The program
for government talks about making
Scotland the best place to do business,
but it it it says that businesses should
be doing more consultation and have more
regulation. Yes, of course.
>> Bob Doris,
>> I thank Rachel Hamilton for giving away.
I was at the the event yesterday also
presiding officer. One of the things we
heard was in the year before Scotland
had a a surplus of over600 million
pounds. One of the issues with the
fiscal framework is that volatility from
one year to the next. Another reason we
have to reform the fiscal framework.
Would Rachel Hamilton agree with that?
Any budget is going to have a forecast
as Bob Doris will know and it will have
to do reconciliation whatever. But the
the fundamental
uh argument remains that the tax base
has not improved and the government are
relying on making choices here in this
Scottish Parliament that support
increasing
um things that they can't afford and the
public can see that. But moving towards
um the green amendment, I'm just
surprised that Patrick Harvey burst out
laughing at Malcolm offered uh reference
to the Laffer curve because we we all
know Mr. Harvey that um you know in work
poverty that you talk about it it is
about you know people not turning down
pay increases to keep their child
payment. It is about making work pay. It
is about increasing productivity and
it's about allowing people to be skilled
up and get earning power and to actually
you know get on in life and to that is
the best way to support people. Um on
the green amendment in itself I mean the
share of Scots paying the higher rate
has more than doubled from 12% in 1617
to a forecast of 26% this year. a
million taxpayers are expected to be
caught by uh that increase by 2030.
And of course, we we've heard that tax
um rises did not raise the money that
they hoped with the analysis um
suggesting that the 48 p top rate of
income tax may have reduced public
revenues by 22 million. That is 22
million that we could have put put
towards really essential public
services. And if we look at it as um
part of the United Kingdom, Scots
already pay 1.8 billion pounds more in
tax than they would elsewhere in the
United Kingdom. But I I want to move um
on to some of the other amendments.
There's much I can agree with in the
reform amendment um particularly around
the impact of high energy costs and also
um the argument that we must be making
to increase our nuclear capacity whether
it's small reactors um which are a
simpler solution or supporting uh uh oil
and gas in the North Sea and supporting
all those uh jobs that are created in
the North Sea. I see my time is running
out. Did you say I had six or seven
minutes?
>> Could I take another minute for taking
interventions?
>> You can have some time for taking
interventions.
>> I'll quickly um just wind up on some of
the speaking towards the um Liberal
Democrat amendment. We we just can't
support this amendment, I'm afraid, Mr.
MacArthur. Um because I feel as though
you're patting yourself on the back for
supporting um an SMP budget, and that
SMP budget has failed the economy. It
has weakened economic growth and it has
failed um the delivery of public
services um for just a very small uh
negotiation return that the Liberal
Democrats got and I think they sort of
played you on on that. Um and I mean
finally on the Scottish Conservative
amendment I I just believe that we need
to remove the barriers to growth. We
need to remove the challenges that small
businesses and the rural economy are
facing. Um Steven Flynn's um comment
there about the small business rate
bonus I think is really uninformed
because he knows perfectly well that the
assessor's revaluation which the
government set the criteria of has
increased
um the uh valuations and the bills that
small businesses are facing and it has
decreased the number of people who are
now eligible because they've gone over
the threshold for small business rate
relief and I don't need to register my
interest for that because I do not
receive a small business rate relief as
a shareholder in a small business. Thank
you.
>> I call Liam MacArthur to speak to move
amendment 1070.55
minutes, please.
>> Thank you, presiding officer. Uh can I
start by um welcoming the cabinet
secretary to his post rather belatedly
um but also thank him for the engagement
he's shown over what is a pretty vast
brief. Um there is much I agreed with in
terms of his opening remarks and indeed
in the in the motion. I think the
criticism that he was perhaps a little
rosetinted in his perspective aliding
over some of the challenges, challenges
that are perhaps external and over which
we have less control, but also I think
challenges that are faced by businesses
uh here in in Scotland as a result of
things that are very much within our
control. I think there's a consistent
and a persistent impression that
decision making can take longer here
than it needs to and happens elsewhere.
I think it's something we collectively
do need to address. Um though can I note
and welcome the uh recognition the
program for government last week that
our islands are quote productive engines
for economic growth. That's reflected in
my amendment which I have pleasure in
moving. Um I think it has the benefit of
being true. We see this in uh the energy
sector where our transition to uh to net
zero. Um, we see it in our fishing and
agriculture and aquaculture sectors and
our wider world leading food and drink
sector where Scotland's aspirations rest
fairly heavily on our islands continuing
to punch above our weight. Uh, but
government rhetoric here needs to be
matched by reality. 10 years on, I think
the islands act has failed to live up to
the promises made by ministers at the
time. And I have come across no islander
who has anything good to say about the
legislation and who cannot point to
so-called island proofing or island
impact assessments as having delivered
anything tangible in practice. It does
feel that this has paid lip service
against the backdrop of tendencies
within government uh to centralize. Over
the summer we saw the loss of air
services on key uh lifeline route
serving the islands. We've seen ongoing
and widespread disruption to ferry
services on the west coast and an
island's resilience fund which was slow
to be set up to pay out and is ignoring
still many of the legitimate claims in
coastal communities. Similarly, the roll
out of digital infrastructure essential
to leveling the playing field for rural
and island areas has been slow, subject
to lengthy delays and currently lacks
resilience. So, I think there's time for
legislative scrutiny and some much
needed dental work. to put some more
teeth into the islands act. Despite
these criticisms, however, Scottish
Liberal Democrats will continue to look
for areas where we can make progress
with the government and indeed other
parties. It's what the public uh would
expect. I think the cabinet secretary
was right in that. There's a lot of
frustration, even anger out there at
politicians over promising and and
underdeling. I think a government that's
been imposed for two decades must again
shoulder much of the responsibility. But
the onus is on all of us elected to this
parliament to find ways of getting
things done to address the real pressing
needs of those who sent us here. I think
our track record as a party whether on
legislation or indeed in budget
negotiations has been has lived up to
that expectation. Last year amongst
other things we did secure 178 million
pounds in a relief package to help
businesses struggling with eyewatering
rate release. No small nothing I would
suggest to Miss Hamilton. It provided
breathing space but fundamental reform
is required and I welcome the fact that
government has embarked on that process
but it must continue to have business at
its heart. It will not be easy and
government I'll take an intervention
with Patrick Harvey.
>> Patrick Harvey
>> I'm uh I'm grateful to Liam MacArthur.
Uh the the [clears throat] parts of the
Libdem motion about non-domemestic rates
were the only bet I was trying to
understand in order to reach a decision
on on how we'll vote. Is Liam MacArthur
saying that what should happen in future
is fundamental reform that achieves
fairness and predictability but also to
ensure that those businesses that can
pay do or is he as some do actually
asking for a tax cut for business which
much of which would be capitalized into
business rents and has to be paid for
either on taxes on workers or cuts to
services. Lee McCaf,
>> I think that's a a fair point and and
goes to the heart of the I suppos the
dilemma facing the government in
particular in coming up with something
that will command um confidence across
the business community but across the
the public as as a whole. Um those funds
need to be raised somehow. We need to
find a way that is felt to be fair and
equitable. I think what we're seeing in
the current system is sharp rises that
appear to come out of nowhere and leave
viable businesses uh with in certainly
in the short-term cash flow issues in
some cases uh leave their viability in
question through no fault of their own.
Um, and I think, as I say, Patrick
Harvey highlights some of the complexity
here, and it's why the government has to
avoid going down the route of short-term
fixes or even gimmicks, the sorts of
gimmicks that have given rise to the
proposed food price cap that I think has
been roundly condemned as being
counterproductive
in the area of um housing as well. um
the the parliament um has declared a a
housing emergency two years ago since
when the action in response from
government has not reflected that same
urgency. I was at a summit yesterday
looking at Orcne's future workforce and
pretty consistently across the board.
Housing was being identified as um one
of if not the biggest obstacle to
businesses, third sector organizations
and to the delivery of key public
services. I'm sure is not alone in that.
will be seeing similar stories across
the the country. Long-term investment is
needed, but so are urgent steps in the
short term. And the Scottish government,
I think, must also accept that the
cumulative impact of some of the recent
policy decisions have created
uncertainty and a loss of confidence in
a sector which has not helped in this
regard. The government truly does
consider our islands to be engines of
growth. It can't afford to maintain a
one-sizefits-all approach to policy that
ignores the specific needs of those
communities. Better tailored support for
Ireland resilience, connectivity, and
infrastructure in the short term will
have long-term benefits for Scotland's
economy as a whole. Presiding officer, I
welcome the ambition set out in the
government motion, but also recognize
the substantial work and reform needed
to ensure that ambition can be realized
for every part of Scotland. And I urge
colleagues to support the amendment in
my name, which I move.
Can I call uh in the opening speeches uh
can I call firstly Bob Doris to be
followed by Patricia Gibson. Six minutes
please. Thank you very much, presiding
officer, and I was keen to speak in this
afternoon's debate to discuss how the
Scottish government along with key
partners can do all it can to support
hugely talented individuals and
businesses who are innovative
uh and are often at the cutting edge of
their sectors to flourish, remain based
in Scotland, but have a vibrant
international global reach and success.
Supporting such businesses is one way
Scotland can continue to maintain and
strengthen our position is the most
attractive place in the UK for inward
investment outside London and the
Southeast. However, we can both
celebrate success such as that inward
investment track record and be clear we
must always strive to do much more and
we can do that a cross party collegiate
way. Yes,
>> Sweenie
>> I take the point Mr. Dors is making
about inward investment and foreign
direct investment part does he recognize
that there's no critique of the nature
of that investment. So for example the
takeover by a foreign company of a
Scottish company is actually classed as
foreign direct investment.
>> Bob Doris
>> I thank Mr. Sweden for that
intervention. I think it's very
reasonable to to analyze individual
investment opportunities if it meets the
test if you like to benefit the Scottish
economy and Scottishbased businesses. I
think there's some reasonable points
there that Mr. speed would seek to to
make. For instance, I am sure we would
all welcome that Scottish Enterprise
supported projects over the last 5 year
period up to March 2025
to create or safeguard around 90,000
jobs and bring their 4.6 billion pound
of capital investment to Scotland. But
by the same token, I would suggest that
Scottish Enterprise can despite that
impressive performance do better still.
I'm open to suggestions this debate
about what more it can do. But I want to
use my speech to highlight one of
Scotland's success stories. The motion
speaks of making Scotland the best place
to invest and to do business. Let me
give the Changer Chamber of Glasgow
example. I recently met with my
constituent David Campbell who along
with his business partners as a
co-founder of Lumiè and the meeting was
hugely beneficial. I learned that
Lumiere's is a is building the world's
most efficient and advanced neuromorphic
photonic chips so that AI can run
anywhere in every environment on Earth
and in orbit with minimal power, no
killing and entirely on device,
worldleading technology in my city of
Glasgow. This is a Scottish company
working on global problems and Scotland
got them started. Scottish Edge, a great
example of partnership funding. Scottish
Enterprise, Space Scotland, and Innovate
UK have all backed them. Strong
partnership funding. David believes our
innovation ecosystem is doing its job
very well. However, we must also ensure
we're equally equipped to support
scaleups. That is vital. All the key
ingredients do exist in Scotland to
support scaleups. We've got the
universities, the scientists, the
engineers and innovative founders of
many a company. Expansion and scale up
of course requires significant capital.
Our successful innovators and businesses
they will secure capital. I'm confident
of that. What we need, however, is to
support an investment environment which
enables that capital to be invested
here, right here in Scotland. capital
investment which ensures a jobs
expansion here in Scotland rather than
moving internationally and with it the
intellectual property going overseas and
the tax base going with them. The
Scottish government's program for
government indicates there's to be a new
major projects office to accelerate
progress on strategically significant
investment in private capital projects
unlocking private investment across
strategic sectors like housing and
energy and on that front energy I should
say the company that I I mentioned
Lumier the neuromorphic photonic chips
are 90% more efficient than the silicon
alternatives and with data centers and
the energy at play there that's
strategically important not just for
Scotland but I suggest for the world
economy I welcome that and I hope
companies such as Lumiè and other
similar companies can benefit from that
initiative and the major projects office
it is positive that the Scottish
government will also establish a high
growth unit as we've heard working with
senior industry leaders from the outset
to accelerate support for high potential
businesses to scale anchor and grow in
Scotland and that's hugely important I
believe It would be incredibly
beneficial for the cabinet secretary to
visit Lumiers and discuss with the
founders of that business how they can
continue to scale up such groundbreaking
and innovative businesses if you like a
an example of how uh that new high
growth unit could work with businesses
such as Lumiers to see a successful
pathway not just for them but for other
business to continue to develop and
flourish based here in Scotland. So I I
would extend that invite to the cabinet
secretary. I was also pleased to hear in
the program for government uh then the
developing of the invest in Scotland
portal working with partners to deliver
a program of investor events and summits
including a 247 scaleup summit just next
year something we want to see positive
outcomes from and finally the Scottish
National Investment Bank is to launch a
Scottish innovation fund promoting
university spinouts and leveraging
private capital in closing presiding
officer I want to make sure our
fantastic startup startups and and
spinouts are invested and put deep roots
here in Scotland and have an
international reach and that requires
private investment. But I'm also keen to
know what more we can do with public
sector investment and equity stakes. So
when those businesses do go global we
get a significant uh recoup of finances
back to the Scottish public purse and we
invest again and we go again the next
generation of business innovation. So,
I'll be supporting the government motion
here this afternoon and I look forward
what I think is an exciting opportunity
for Scottish businesses to go global.
>> Thank you. Before I call Miss Gibson,
can I remind everyone who wants to speak
in the debate, please press the request
to speak button. Thank you. Uh, Patricia
Gibson to be followed by Paul McClennon.
Thank you, presiding officer. As a
government which seeks to build a more
just, fair, prosperous Scotland, it is
vital to grow Scotland's economy and
ensure Scotland is the best place to do
business. We are rich in resources, rich
in innovators, and in this regard have a
history of leading the world. Indeed,
Scotland has a very proud history,
having played a pioneering and central
role in the global industrial
revolution, transforming from a rural
society into a powerhouse of heavy
industry, textiles, and engineering, and
now stands on the cutting edge of new
technologies which are already and will
continue to transform our society. Now I
won't detain the chamber by listing the
world changing innovations which
emanated from Scotland and have benefit
benefited mankind. I will indeed.
>> Rachel Hamilton
>> I don't mean to put a downer on Patricia
Gibson's um input but with today we've
seen the Pisa rankings absolutely
tanking. We used to be world leing in
education in Scotland. What happened and
how is that going to impact what you're
talking about? Patricia Gibson,
>> we have enjoyed the greatest number of
workingclass children um going to
university without tuition. We have
record number of passes in exams. Our
reading levels and maths and science are
increasing and it depends on which
measure you use and I'm not surprised
that Rachel Hamilton chooses to use a
measure which puts Scotland in its in
its its poorest light. But I will say we
we come from a tradition in Scotland
because of our long history of um free
education um where we have led the world
in innovations. But
we have to look to the future and we
must do so with ambition as set out in
the motion in the name of the cabinet
secretary mindful of the potential
offered by our resources our people our
innovations and using the confidence
which this provides to build a better
Scotland for all our people and at this
juncture deputy it's presiding officer I
should say that um I really don't want
to put a dampener on the contributions
made by Malcolm offered and Rachel
Rachel Hamilton. But the uncomfortable
truth that flies in the face of very
much of what they've said today is that
there overall more taxpayers continue to
move to Scotland than from the rest of
the UK than are leaving. And that's from
HMRC data this year. And there is no
official economic data showing that any
businesses in Scotland are leaving
Scotland due to um the burden of tax.
That's a we uncomfortable truth which I
shall leave you to grapple with at your
leisure.
We need to build a better Scotland and
that depends on how we can continue to
nurture economic growth and fund our
public services that we all rely on.
Economic growth is the canvas upon which
our broader social aims are painted,
such as tackling poverty. And of course,
it's important to remember that the
Scottish government's investment in
child care is a driver of that economic
growth by allowing women to make a
greater economic contribution than might
otherwise be the case. An important part
of a successful economy of course is
about attracting inward investment to
ensure highquality high-skilled jobs so
that the people of Scotland can utilize
their skills and live well and upskill.
And I won't repeat the information and
the statistics that the cabinet
secretary has set out so competently
because I wouldn't do it as well um
presiding officer but driving economic
growth essential to our commitments to
ease the cost of living reducing child
poverty and delivering public services
improve public services for us all. And
I'm pleased to hear from the cabinet
secretary today that every opportunity
will be taken to ensure that Scotland
continues to have a strong and vibrant
economy in the years to come with
well-paid jobs in every part of Scotland
from our cities to our island and rural
communities. We must continue to make
Scotland the most attractive place in
the UK to invest, create jobs, and build
a more sustainable future. That is not
in any way of course to underplay the
challenging context in which business
operates. We know that there is
challenging global circumstances and we
know of the structural weaknesses of the
Westminster economic system. The damage
caused by Brexit harming business, the
impact of soaring inflation, the impact
of soaring energy cost, the impact of
the cost of living which is making the
landscape much much more challenging
from bis for business than otherwise
would be. But in Scotland, we have a
federation of small business who I'm
sure sent the same briefing to all of us
telling us that their confidence, this
confidence of small business in Scotland
is growing and it's growing well. So
again, maybe something to put a we
dampener on the doomongers on that side
of the chamber.
We must continue to attract investment
and we must continue to protect and
nurture homegrown business and markets
with the greatest growth potential.
Removing barriers to progress,
increasing business and investor
confidence and securing growth in
priority areas. If Rachel Hamilton wants
to come in. Rachel Hamilton.
>> Thank you again. Apologies, but I need
to correct Patricia Gibson's assertion
that small businesses are confident. We
had and she will have had a brief from
the FSB, the uh Federation of Small
Businesses, and it says, "You cannot
build an economy fit for the future if
the businesses that make up 98% of the
business base lack confidence in the
present." I mean, read the brief. It
says it there. Patricia Gibson,
>> I'm actually quoting from the brief, and
I'm not in any way downplaying the
challenges that the Federation of Small
Business has put forward. I'm not in any
way attempting to undermine that. But
the key line from that briefing is that
confidence in small business is growing.
And I know that's uncomfortable for
Rachel Hamilton to hear and it's not
nearly as as a big black cloud as she
would like. But there you go. Maybe take
that up with the Federation of Small
Business and tell them that they have no
right to be optimistic and they have no
right to have confidence in the future
because that doesn't suit her party's
agenda. Um the program for government
included important measures to make the
the more positive business environment
possible with advancement of the 1 and a
half billion pound Scottish government
bond program which will help attract new
investment into Scotland. the new major
projects office which will unlock
private investment across strategic
sectors like housing and energy and I
look forward to the driving of
innovation in health and care through a
partnership between industry NHS
Scotland and other care providers
through innovative procurement and
support for an industry-led life
sciences cluster very important in air
and the 35 million pound life sciences
accommodation program and I welcome the
develop AI Scotland as flagship
international program. This is what
Scotland is good at. It's good at being
at the cutting edge of new technologies
just as it was at the cutting edge of
the industrial revolution. In that
regard, Scotland hasn't lost her edge.
But we do operate in extremely
challenging circumstances. We are
shackled by a failing Westminster
system. But the positive the the the
outlook for Scotland is very very
positive. But imagine
how we are punching above our weight
right now. Imagine for a moment what
more we could do with the normal powers
of an independent country at our
disposal. It is possible to build
prosperity and deliver a fairer
Scotland. And with the limited powers
that we have, we are doing just that.
[applause]
Paul McClennon.
>> Thank you signing officer. I'm pleased
to contribute to this debate this
afternoon in the program for government
around about economy fit for the future.
As the member for East Loing coast lers
I speak for a constituency that combines
coastline productive farmland growing
towns and villages and of course a
strategic position on the edge of the
capital. East Lotheian is one of East
Scotland's fastest growing areas.
Tourism and renewables are key sectors
in East London. Both employable number
in the area. Tourism employs around
about 3 to 4,000 people in East London
and generates around about 200 million
pounds to the local economy. A recent
report by the energy and climate
intelligence unit alongside the CBI
showed that East Ludian employs around
about 1,500 people in the green energy
sector and with tors decommissioning in
the next few years transition. We'll be
keen. And I am seeing that growth in the
green energy sector in East and and we
have Jillian Martin and I visited Hadfab
probably about 6 months ago and we've
seen the the position of Hadfab. It's
probably doubled or tripled its
workforce. It's taken on a lot of
numbers in terms of apprentichip. So
that's where the green energy jobs are
going and he's slowed in and the growth
is is huge potential and he's in
community benefits and community
ownership of renewables as well as
development of heat networks are a key
focus of my work in the next 5 years.
with the pace of growth need then this
brings opportunity but it also brings
pressure on infrastructure on housing
and skills and local services and I'll
touch on that further on in my speech so
an economy fit for the future must
deliver for places like East London and
the flexibility around about delivering
free and other parts of Scotland of
course is vital oneizefits all doesn't
work I welcome the clear focus on the
fiveyear program for government around
about growing the economy and
eradicating child poverty tackling
climate emergency and sustaining
highquality public services they all go
hand in hand. We need to grow our
economy to make sure we tackle child
poverty, we tackle the climate
emergency, and we look at high quality
public services. And I think that's
something we all agree on. In
particular, I support the the commitment
to deliver economic growth that reflects
unique strengths, opportunities, and
ambitions for each part of Scotland. As
I said before, that principle is
essential. A one-sizefits-all approach
will not work. I agree with the point
that Daniel Johnson made around about
local economic strategies. They must be
at the heart of delivery. In East Loian,
we have such a strategy and East Loian
works very closely with neighbors in
Edinburgh, Midlotheian, West Lian, F and
the borders. The East Loian local
economy strategy sets out a clear
vision. It's a thriving, sustainable,
inclusive East Lian. It builds on five
key principles. Fairness, enterprising,
thriving, resilient, and community
wealth building. And of course, green
and sustainable, something we can all
agree on. These align closely with the
national priorities in the program for
government and with the End Southeast
City region deal. and of course the
regional prosperity framework. Our
strengths are real. Tourism, hospitality
generates hundreds of millions for the
local economy and supports thousands of
jobs. Our food and drink sector has a
strong reputation not only of course in
East but across Scotland. We have
significant renewable energy potential
as I mentioned particular around about
the former McKenzie site and of course
offshore opportunities and we're already
seeing that in the strategic development
sites at Blindwells and just last week
the cabinet secretary Steven Flynn
visited Denver Innovation Hub near Queen
Mar University again in East and that's
seen opportunities for growth for growth
sectors in Isolia and that brings
prospects for new jobs housing and of
course commercial activity. The
reopening of East Land station has also
improved connectivity as well as the
possibility of a station at Blind Wells
and further investment in sustainable
transport is of course essential not
only in East but across Scotland. It
supports residents and businesses. Yet
growth alone is not enough. We need
growth that is fair that retains more
wealth than local communities and it
creates good jobs for local local
people. Community wealth building must
be more than a phrase. It must mean
procurement, land, assets and of course
enterprise support that so many the
benefits we see investment stays in. It
means ensuring that young people from
our towns and villages can access the
skills and apprentichips needed for the
green jobs of the future whether
renewables, construction, digital or
care all areas of growth anywhere. I
therefore welcome the program's emphasis
of attracting investment backing
homegrown business and my background is
20 years with the Bank of Scotland and
and commercial banking. So I know how
businesses grow and what they need in
terms of how to do that. I urge
government to ensure that regional
economic strategies and local plans are
properly supported with the funding
flexibility and powers needed to turn
ambition into delivery. And of course I
think last week as mentioned in the
speech that would include powers coming
back to the Scottish government from the
UK government. Also the role of Scottish
enterprise the Scottish futures trust
and the Scottish national investment
bank need to be flexible to secure
support where it's needed. And I'd like
to see part of that discussion being
taken forward by the CAPSEC and and his
response if he can if he can mention
that if it's possible. The city region
deal has also brought substantial
investment and again that's UK and
Scottish governments working closely
together. We've seen that about the
innovation hub just last week at QMU. We
need continued support for strategic
sites for skill programs as local needs
and of course for infrastructure such as
talked about transport digital and and
energy climate action and economic
opportunity also go hand in hand.
Eastland's landscape and its coastline
are amongst our greatest assets.
Protecting them while developing
renewable energy, sustainable tourism,
and nature-based solutions is not a
contradiction. It is the only sensible
path. Green jobs must be local jobs.
That requires skills pipelines linked to
our colleges, schools, and of course,
employers. It requires planning and
consensing systems that move at a pace
for opportunity without sacrificing
environmental standards. Now, that is
part of what the Scottish government and
UK government needs to look at as well.
Last week I hosted an event with EDF who
were talking about consenting I suppose
support right across Scotland and there
are issues that we need to take forward
as MSPs in that regard. Housing is also
an economic issue without sufficient
affordable and mid-market homes. We
cannot retain or attract the workforce
our businesses need. Blind well and
other sites have potential to deliver
thousands of new homes alongside other
employment opportunities. I hope the
government will continue to work closely
with each other council and regional
partners to unlock that. Presiding
officer is an economy for the future is
one that works for every economy, every
community in Scotland. It's one that
recogniz the distinctive contribution of
places like Ethan, our enterprise, our
national assets and our growing
population and equips them to tools to
succeed. The program sets that national
direction. Rec region economic
strategies provide the local roadmap. I
support the motion and look forward to
collaborating with ministers, local
partners and colleagues across the
chamber to ensure that and every part of
Scotland can thrive in the years ahead.
Thank you.
>> [applause]
>> Donald McKinnon.
>> Thank you, presiding officer. I welcome
the Scottish government's aspirations
for Scotland's economy set out by the
cabinet secretary today. The ambition to
promote inward investment, create
sustainable jobs, and making the most of
our renewable energy potential are all
laudable aims. I also welcome the
commitment to the rural economy. In
particular, I look forward to hearing
more detail around the last provider
fund and how it will operate. Small
businesses are the backbone of our rural
economy. The services they provide keep
communities functioning. But despite the
warm words in the PFG, the failures of
this government are already holding back
the economy in my constituency. From
public services that are being pushed to
breaking point to a lack of affordable
housing as Liam MacArthur mentioned
earlier on in his constituency to the
availability of child care, they are all
damaging opportunities for businesses to
grow. But failure in transport is
perhaps the biggest threat. Problems
across the West Coast ferry network were
well documented in the spring, but on
the sound of Harris, those are
persisted. From April April to July, 214
sailings were cancelled due to technical
reasons on the sound of Harris crossing.
The aging MV Lock Porion, the vessel
that links the Western Isles across the
sound of Harris, was out of action,
being re-engineed for months this
spring.
She returned to service in midMay, but
by July, a vibration issue with her gear
boxes had been identified, and she was
removed from service again. Now island
communities are being told that she will
not be back before the end of the summer
timetable in October. Only one other
vessel in the Kalmarmac fleet can
operate that route, the MV MV lous. When
she has been required to cover other
services, no vessel at all has been able
to service the sound of Harris.
Thankfully, the MV Glenn Sanuk, a
welcome addition to the fleet, has been
able to operate sailings from Loadi and
Northwest to Tarbert with a passenger
charter vessel operating across the
sound. But this arrangement has meant
that businesses in the South Harris port
of Lever and the island of Bernary have
been completely bypassed by vehicle
traffic um traveling through the
islands. The start and end of their
visitor season has been marked by
intense periods of ferry disruption. To
add insult to injury, the 10 million
pound island business resilience fund
that the first minister came to the
Western Isles to announce during the
election campaign that he said would be
delivered within 20 days of forming a
government turned into a 3 million pound
fund delivered within 100 days with the
rest to be available over the next 5
years. That's not what island businesses
were promised and it's not what island
businesses need. They were promised.
They were promised compensation for the
disruption that has already happened to
their businesses, not a promise that
they should expect more chaos in the
future. But it's okay because there's 7
million pounds left to cover it. The
reputational damage to our islands
cannot be underestimated. Unreliable
ferry services have put people off
traveling and our visitor economy is
suffering. As new fies enter the fleet
over the coming months, there needs to
be an investment made in rebuilding the
reputation of our islands. as a place
where visitors can be confident of a
holiday free from disruption. The
visitor industry in our islands needs to
be supported by the Scottish government
to achieve this. That also needs to be
supported by further investment in new
vessels, including replacements for the
sound of Bar and the Sound of Harris
feries along with a replacement for the
Lord of the Isles. The recent disruption
on the Sound of Harris does not just
affect tourists. It impacts businesses
operating across the island chain. It
impacts public services and it makes our
islands a harder place to live and make
a living. If the Scottish government is
serious about economic growth across
rural Scotland and our islands, that
means investing in good, reliable
transport links that communities and
visitors can rely on. Thank you,
>> Katy Hagman. Up to six minutes.
>> Thank you, presiding officer. Last week,
I spoke in this chamber about my genuine
gratitude that people were the heart of
our program for government, citizens
over structures. And when it comes to
looking at our economy, I take the same
stance. Our economy must be shaped by
the needs of our communities. And it is
vitally important that we acknowledge
the role of secure, well-paid jobs and
providing highquality public services,
which in turn will support our economy.
While other parts of the UK have chosen
to outsource and commission large parts
of their public service provisions, I am
proud that here in Scotland, we are
committed to fair work principles and
fair pay deals for our workforce. I
fully acknowledge that we should look at
future opportunities and these may
include working with the private sector.
However, we need to be clear that when
it comes to our public services and
building our economy, this cannot come
at the cost of people. Community and
fair work principles must be protected
and promoted as a core tenant. I also
want to acknowledge the large number of
incredible businesses in my own
constituency that are powering
Scotland's economy. While there are too
many to name, I wish to draw attention
to a few. Tucked away in rural spots
across Carrick, Kumnik, and Doom Valley.
There are some key businesses driving
our economy and significantly
contributing to Scotland's economic
successes. First to mention is Grant's
Distillery in Gervin, a vital and
essential part of our worldclass whiskey
industry supporting 5.3 billion pounds
worth of economic benefits within
Scotland. Then over to Okin to Edgar, a
wood paneling manufacturing plant
supplying the trade and supporting our
allimportant housing demands. I must
also mention that I also have the
largest aerospace hub and center of
excellence in my constituency.
Adding in destinations that include both
our Robert Burns and Robert the Bruce
Trails and sites such as Colleen Castle,
the economic benefits of tourism cannot
be ignored either. I truly believe that
rural Scotland is the key to our
economic ambitions and must be
fundamental to promoting Scotland as a
place to invest. Having world-class
businesses is one thing, but how does
that translate to our economy and our
people? I wish to talk about one of the
brilliant businesses, Land Energy, which
is also based in Gerin. They are the
UK's largest manufacturer of sustainable
wood pellets, briquettes and also
naturally fungi fertilizers. They
prioritize local suppliers and they
create local employment. Having met with
the team recently, I was struck at how
proud the staff were of their business.
They are supplying a range of products
to individuals, organizations and our
NHS. They are a living wage employer and
they are members of the air chamber of
commerce. However, they also ensure
their communities share in their success
by supporting local clubs and events
including the Gerventatifi Fest which
sadly I was very disappointed not to
attend this year. Supporting businesses
is just one aspect of building a strong
and sustainable economy. Alongside this,
ensuring that development and
regeneration projects across our
communities can be delivered. And this
is also crucial. While I welcome the
Scottish government's intention to
reform and modernize the compulsory
purchase system, I believe it is vital
that we that progress on compulsory sale
orders is accelerated. As part of that
work across Scotland, vacant and
derelink buildings owned by absentee
landlords continue to have a detrimental
impact on our communities. Where there
is a willingness from investors,
community groups or the third sector to
redevelop and repurpose these
properties, local authorities must be
provided with the appropriate levers to
facilitate investment, tackle blight,
and support community-led regeneration.
Presiding officer, if we are serious
about building a stronger economy, we
must remember that economic success is
not measured solely in figures on a
balance sheet, but in the opportunities,
security, and quality of life it
delivers for our people. From worldclass
manufacturers and distilleries to
community-led regeneration projects, the
future of Scotland's economy depends on
empowering those who invest in our
communities and creating the conditions
for them to thrive. By supporting fair
work, investing in local enterprise, and
giving councils the tools they need to
tackle dereliction and unlock
development, we can build an economy
that is not only prosperous, but one
that works for everyone in every part of
Scotland.
>> George Adam up to six minutes.
>> Thank you, presiding officer. sign
officer. I've been sitting here
listening to most of the debate and some
of what I've been going to say has
changed as I've gone along. I've
listened to Liam MacArthur as always
make an eloquent uh speech and tell us
how there's areas that we can agree on.
And I think we should have more of that
when we're talking about this in the
future. areas that we can actually
discuss and actually kind of find common
ground because I think it's too easy for
everybody just to have an absolute ramy
all the time within the parliament and
I'm partly to blame a lot of the time
for that because who doesn't like a nice
we ramy now and again but the whole
point is we should be focusing on what
we can agree on and what we can work
together but on the other hand presiding
officer there's been some total belters
of speeches as well you know Malcolm
offered opening speech mentioned that he
remembered the 1980s. As Lord offered
speech continued, I started to think he
might have still been in the 1980s. As
he started going on about his support of
extreme Thatcherism along with a wee bit
of hatred for minority groups just for a
wee bit of extra color. Uh but he talked
about the market will deliver. Well, the
market didn't deliver in the 1980s. It
didn't deliver for Scotland in the
1980s. All it created here was mass
unemployment in many industries and
lives totally destroyed. So that is not
what I want for my community's future.
Presiding officer, however, what I do
want to talk about in the motion of the
Scottish government today is the setting
out the program for government that is
bold and it's progressive. Above all,
it's ambitious for Scotland. And it also
talks about the most important thing at
its heart. It puts people at the heart
of it. Make no mistake, presiding
officer, while the doom and gloom
merchants in the opposition benches want
to drag Scotland down into a mer of
Westminster's failed economic dogma, our
Scottish government is rolling up its
sleeves and getting on with the job. The
Scottish government is building on the
economy that works for real people, for
hardworking families and communities
right across Scotland. I want to to talk
about something I think gets lost when
we talk about economic growth in this
chamber. For most people, economic
growth isn't a line on a graph. People I
know, people I've grown up with, don't
see it that way. It isn't a figure in a
treasury spreadsheet. It's whether they
have a decent job. It's whether their
wages are keeping up with the cost of
living, and whether their son and
daughter can get an apprenticeship,
whether their town center has shops,
cafes, businesses, and people are using
it. These are the important facts.
Presiding officer, with any debate about
our economy, it's about people, our
people, our friends, and our
communities. But let's look at the
facts. Under the Scottish government,
GDP per person has grown faster than the
UK as a whole. And Scotland's
productivity growth has been double the
UK average. For 11 years running,
Scotland has been the top UK destination
for foreign direct investment outside
London. Scotland's a global powerhouse
in life sciences and a leader in digital
innovation. And what does this Scottish
government program for government do? It
doubles down on those strength. It sets
out a clear unwavering vision. Attach
attached top tier investment through a
Scottish government's 1.5 billion bond
program, streamlining planning with a
new major projects office and backing
Scotland's businesses and laying the
foundations for industries in the
future. The program for government sets
out six priorities for growth. making
Scotland a better place to invest and do
business. Helping businesses to start,
scale, and innovate. Connecting people
to better work and building the right
infrastructure and enhancing Scotland's
global offer and backing growth in every
region. That last point matters to me,
presiding officer, because I represent
Paisley. I don't want just to see
economic growth concentrated in
Edinburgh or Glasgow or elsewhere. I
want to see the benefits of growth
reaching Paisley Reference and
communities right across Scotland.
However, there is already a very strong
economic story developing in Paisley. In
Paisley, we aren't just Scotland's
largest town. We're embracing the
Scottish government's plan for growth,
and the choices made in this program for
government are going to help write the
next chapter of our town's history. Take
manufacturing economic transition. This
program for government priorities the
advanced manufacturing energy energy
transition will look just down the road
in Paisley in the advanced manufacturing
innovation district Scotland right
beside Glasgow airport in Paisley
Paisley is already home to the national
manufacturer institute Scotland and the
medicine's manufacturer innovation
center this program for government
commits to cluster development high
growth units and university spinout
funding means more high value
highskilled jobs coming to communities
like mine in Paisley It secures our
place in the world stage in these key
industries. And look at the University
of the West of Scotland right in the
very heart of our historic town. UWS is
not only educating the workforce for the
future. Its research excellence has been
turned into real businesses, real
products, and real jobs. Through its
research and enterprise work, the
university brings academics, graduates,
and entrepreneurs together, giving
ambitious companies access to specialist
knowledge, facilities, and support so
that ideas developed in Paisley can
compete across the world. I saw that
myself when I visited the camp Paisley
campus in July and met two outstanding
UWS spinout companies. Noble Sound has
taken university research and developed
flexibly flexible high resolution
ultrasound sensors using ranging from
energy and aerospace to digital
healthcare. Well fish tech is using
pioneering non-lethal blood testing to
transform how aquaculture industry
monitors fish health technology
developed in my hometown that is now
serving customers at home and
internationally. That is what e economic
growth looks like in practice. Presiding
officer, university research, excellence
to nurture innovation, businesses
turning knowledge into future businesses
and ensuring that we move forward. And
most importantly, presiding officer,
look at how the program for government
supports Paisley's families. We're
living through the squeeze of the
Westminster's cost of living crisis, but
this Scottish government is is standing
by them. The Scottish government's
capping bus fairs at two pound across
SPT area is delivering a
transformational expansion of child care
and moving towards universal coverage
from 9 months old right up to the end of
primary school starting with national
primary school breakfastes. Paisley's
local workforce and is boosting
Paisley's local workforce and lifting
children out of poverty. These aren't
just words presiding officer. These are
how governments can make a difference in
people's lives and in famil family's
future. In closing, presiding officer,
the Scottish government is building a
green, resilient, prosperous future.
It's using every lever, every penny, and
ever power that it has available to it
to deliver for Scotland and to deliver
for our communities. Of course, imagine
what it would be like if Scotland could
do this, this parliament, not fighting
with one hand tied behind its back by
Westminster economic mismanagement.
Imagine what Paisley and Scotland could
achieve with the full powers of Scottish
independence and rejoining the EU and
taking control of energy policy and
building a tailored economy that put
Scotland's people first. Presiding
officer, this is a program for
government rooted and ambitious and
focused in delivery, creating good jobs,
supporting families, and giving
communities like mine the confidence to
thrive. This is the future I want for my
hometown, and that's what I want for
Scotland.
>> [applause]
>> We now move on to closing speeches and I
call Willie Renie.
>> There's nothing like a good speech from
George Adam to conclude the debate this
afternoon. We've never heard of Paisley
so often and it's a great thing to hear,
but I think the fungy filled fertilizer
was certainly the highlight of the whole
debate this afternoon. But what it does
show is that many members in this
chamber are very proud of the businesses
that they represent in their
constituencies, but also they have good
relationships with those businesses. Bob
Doris, um, Dom McKinnon, Paul McClennon,
as well as George Adam and Katie Hagman
talking about the businesses that are
thriving in their part of the world. And
that fits in with my first point.
Scotland is a good place to do business
and we shouldn't talk it down. We
shouldn't trash it because there are
many people who do great things in this
country and we should cherish it. And
those who wish to say that the country
is broken and business is broken, I
think we should dismiss. That's not to
say that there aren't issues and I'll
come on to those issues in a second. But
we should cherish the fact that we have
got really good people who do great
things in business. They've got great
skills, great talents, and they are able
to create good opportunities and
economic growth. We have resources in
this country, whether it's energy,
renewable energy, oil and gas. We've
also got great defense industries that
do some fantastic work and defend our
country. We've got secure laws and we
shouldn't underestimate how important
secure laws and enforcement is because
not many parts of the country have that
security. And those people who want to
invest in this country want to know that
their money will be safe and that they
will be secure in their investments. And
then we have a government that can make
decisions to back individual businesses
and areas and clusters. So all of these
things we should cherish whether it's
the tourism sector, energy, defense,
universities, finance, sciences, food
and drink. There's lots of things that
were great in this country. But there
are challenges and we know that Brexit
has posed a significant imposition on
this country and has broken trade
barriers. It created trade barriers with
the rest of Europe who were important
traders with this country. We have great
problems with our transport system where
we're not managing to get the fairies
operational which Donald McKinnon was
talking about or building the A9 on time
or the A96 or the rest and be thankful.
There's a whole list of issues around
about transport. the planning system is
clogged up and it needs to be much
smoother. We need to have a system where
businesses know that if they invest in
developing a site that they will get
planning permission in good time and
good order. And we need to have um the
rates of high economic inactivity
tackled. We need to make sure that the
next generation in terms of young people
who have got additional support needs
that they're given the right support
because they are the workers of the
future. We've heard about the piece of
performance today and we shouldn't
underestimate it and John Swinny I think
was wrong to just highlight all the the
positive slim pickings from that
analysis. We do need to recognize that
we do have a challenge in the
performance of our schools
internationally the the perception that
this country is also a high tax nation
that the tax is out of control. Now, of
course, we've seen the figures around
about those who are moving to this
country or moving away, but the
behavioral change that is often hidden
is something that we should reflect on
as well as the impact that it's having
on economic activity and the 5 billion
pound financial deficit that the country
is facing in just a few years time. All
of those issues means that we have
sluggish economic growth and that is
also epitomized in the fact that we have
a very slow rate of house construction.
So what do we do and what do we do next?
And I do recognize that Steven Flynn
struck a different tone today in terms
of college investment on social security
on the fact he emphasized that work is
good on his criticism I think for the
first time of GFG Alliance and I welcome
his contribution on that and then on
careful regulation. But we need to do an
awful lot more in terms of supporting
young people at school who have got
additional support needs, of driving
down the rates of economic inactivity,
of keeping the business of doing
business simple, sometimes boring and
predictable so that businesses know
exactly what they can expect and that
means a smoother planning process. but
also invest in skills. And that comes
back to my central point from the
beginning that we need to invest in the
skills and the talents of the people in
this country because if we do not, we
will not get us out of the sluggish
growth that we've experiencing for many
years now. Thank you.
>> I call in Finley Carson.
>> Thank you, presiding officer. Rural
areas make up around 98% of Scotland's
land mass and contribute roughly a third
of our total GVA. Agriculture alone
added 2.5 billion to the economy last
year while shooting and conservation,
agurism and farm retail each contributed
around 300 million annually. Yet despite
that importance, communities such as
those in my constituency of Galloway and
Western Freeze are too often overlooked.
Their unique challenges are often
ignored and the support they need is
often an afterthought. And its program
for government, the Scottish government
pledges to continue its strong
investment in agriculture in Croftton
communities. However, the reality as
always is rather different. The
agricultural budget was cut by£16
million pounds in real terms and
ministers continue to and fail to
provide multi-anual funding which is fit
for purpose leaving farmers without the
certainty they need to plan and invest
and grow their business.
>> Absolutely. Right on.
>> Right on Q. Thank you very much Mr.
Carson for taking my intervention. 660
million has been pledged and will be
delivered over the term of the next
parliament with some more reforms to
come that will actually see agriculture
businesses rewarded for more of their
activity. Does he not welcome that?
>> Phil Carson.
>> No, I don't because 660 million is the
figure that's been quoted year on year.
Realistically, what we're seeing is a
flatline and a real-term reduction in
that budget. But if the minister, the
cabinet secretary wants to repeat that
repeatedly, that's fine because it just
sets out exactly how this government has
failed uh farmers.
The rural uh the program for government
highlights the rural support plan
published in March and claims that it
provides clarity and certainty. However,
industry responses suggest otherwise.
Giving evidence at the real affairs
committee last week, Professor David
McCracken of SRU said that what is
lacking is an actual pathway and some
sense of direction regarding how schemes
will change over the next 5 years. That
criticism matters because the Scottish
government intends to reduce support for
active farming and in in real terms uh
and redirect funding elsewhere. Yet
active farming remains essential to food
production, food security in the wider
rural economy. As former NF US President
Martin Kennedy told the committee, right
now we are not focusing on active
agriculture and that is where the
frustration is. The program for
government always prom also promises I
will right on Q
>> fairly. It's not right on Q. We rehearse
this argument over and over and over
again. Scotland is the only part of the
UK where we continue to make direct
support. We've got a rural support
program which is ongoing right now which
is aimed to deliver far more funding
into the people who are actively
farming. What has the member got against
that?
>> Yeah, it just falls in deaf ears. Maybe
if the minister had listened to the
committee meeting last week and the
committee meeting in March 2025, you'd
understand that he's he's talking in a
echo chamber and he's not listening to
what's really happening out there. I've
already quoted the president NFS and
I've got another uh number of quotes
that will set out exactly why this
government is failing.
The program government doesn't set out
uh uh how we can promote economic growth
in the rural areas. We have no real
indication of what the bill will
actually deliver. Too often it feels as
though ministers are reach reaching out
for another consultation, another
strategy or another piece of legislation
instead of taking the difficult
decisions and delivering practical
outcomes. Rural Scotland needs action,
not endless process. Indeed, during the
previous parliamentary session, the
government introduced a range of
measures that could have proven damaging
to the rural economy. One example was
the proposal to require larger land
holdings to be laotted before sale. That
completely ignores the reality that many
farming businesses need to scale up in
order to remain viable and continue to
support jobs and investment in rural
areas. Likewise, rewelding policies,
ongoing debate about reducing livestock
numbers and meat consumption, and the
Scottish government's refusal to embrace
gene editing technology all create
further uncertainty for farmers. There's
another cue.
>> Cabinet Secretary,
>> I'm not quite sure how many times I've
had to correct Finley Carson in the last
session around the fact that the
Scottish government has no policies in
place to uh reduce livestock numbers.
>> Finley Carson.
>> Yeah. And once again, the cabinet
secretary repeats, they've got no
policies to reduce, but they've got no
policies to ensure that the livestock
numbers are maintained. No policies
whatsoever. No, I won't. I need to make
progress.
I think there's a requirement for
members to treat each other with
respect. And the minister saying I'm
talking nonsense certainly isn't a good
example of that.
Maybe maybe the minister needs to listen
a little bit more to the industry rather
than blindly defending his government's
position. The picture is made worse by
cut to capital funding within the rural
affairs budget. That cannot be denied.
Farmers need support to invest in modern
equipment and technology that can
improve productivity while reducing
costs and environmental impacts. Food
security must be a greater priority.
Scotland needs more local abattoars,
stronger local supply chains, and a
greater focus on promot promoting
Scottish produce rather than relying on
uh imports. We should be encouraging
more people into agriculture, not making
the industry less attractive through
uncertainty and a lack of long-term
vision. We should also make better use
of Scotland's natural resources. Venison
is a high quality nutritious sustainable
product that is available in abundance
and we need to play more attention to
the great role that can play and the
role of public procurement including in
our schools.
>> Rachel Hamilton
>> taking the intervention. Uh 23
organizations across retail, rural and
farming have criticized the S&P's plan
for a cap on food prices. Does Finley
Carson agree with me that this could be
entirely detrimental and and impact the
rural economy severely?
>> Carson,
>> absolutely. I think we've got a policy
here that once again uh was all about
making announcements, but I could say
that it was ill thought through, but
it's not been thought through at all. Uh
there's there's very little chance that
this is going to be delivered. It was
another giveaway at election time. Um
but that the concerns do remain about
the impact of recent registration on
countryside sports and land management.
While insufficient attention uh and and
indeed funding has been given to the
fishing sector despite its contribution
of almost 400 million to the economy and
the thousands of jobs it support. Many
of these policies may be well intended
but I fear that there are commumulative
impact on the e economic viability of
rural Scotland is not being properly
considered. Those concerns are shared by
others across the sector. Donna Smith of
the Croftton Federation told the Rural
Affairs Committee last week that
Croffter shared the frustration over the
real lack of any kind of indication of
where we are heading. In conclusion,
presiding officer, the need of rural
Scotland have too often been secondary
to the priorities of this government.
Food production is now too often placed
behind environmental targets. Economic
prosper prosper pro prosperity is often
too often sacrificed in pursuit of
ideological objectives and the realities
of living and work in remote and rural
communities are of too often forgotten.
Perhaps that explains why rural Scotland
continues to face depopulation,
declining opportunities and growing
difficulties in accessing essential
services. Presiding officer, if we want
thriving rural communities, a strong
rural economy, and greater food
security, we need a renewed focus on
active sustainable agriculture,
productive land use, and the people who
live and work in rural Scotland every
day.
>> Mark Ruscll,
>> thank you, presiding officer. Well, I
think Steven Flynn set out the
objective, I guess, at the start of this
debate. Well-paid jobs in every corner
of Scotland. I don't think anybody could
disagree with that, but clearly we don't
have an agreement on how we get there,
what needs to change to deliver that.
But I do think the prime minister's
ambitious rhetoric over the summer was
important because we've been waiting for
a Labour leader for a very long time to
talk about neoliberalism, to talk about
the failures of the last 40 years. is
and it'll be interesting to see whether
you know a new Scottish labor leader is
also prepared to adopt that same
analysis and apply perhaps some of those
fixes as well because I think George
Adams right I mean communities across
central Scotland were absolutely
battered in the 1980s neoliberalism has
been a failure in most areas of our
economy and you know communities feel I
think across Scotland that they
increasingly do not have a meaningful
stake in the economy they are not able
to direct the economy. They're not able
to direct their own futures. Liam
MacArthur talked about island proofing
and perhaps the expectation the islands
bill was going to bring more of that
conversation into island communities,
but it hasn't. It hasn't really
delivered. Daniel Johnson talked about
the importance of pushing powers down.
Then he didn't mention mayors in that
context, but I'd be interested to hear
more from Labor about what they
meaningfully believe pushing powers down
will actually deliver. Casey Hagman
talked about citizens over structures
and I think it's important that people
are able to be part of the
conversations. So I'll give you an
example. This week I'll be meeting with
community councils surrounding uh the
Moss Morren site have a stake in the
future uh of that site in F and we'll be
discussing the economic future. We'll be
talking about legacy. will be talking
about skills and we'll be talking about
the kind of operators that they would
like to see come to Moss Morren and
invest in the area and I am concerned
because at the moment much of the
conversation about the future of the
economy in Fe and the future of Moss
Morren has been a conversation between
Scottish enterprise the plant operators
and potential investors including data
center developers I don't feel at this
point reassured that communities and
unions have been meaningfully involved
in that planning around what the future
of that part of F looks like and I think
it's absolutely clear that we need to
see more public control because public
control of our services does work. We've
seen that with municipalization of bus
services in the Highlands in Sterling
and hopefully to come in Strath Clyde as
well.
And as a result of that municipalization
and community control of services, we've
seen improvements in services, new
services being started, better
timetabling, more patronage. So it's
clear that done right, public control
and public involvement in the delivery
of services can work. And there are
great models from across the UK of how
that's done. Yeah.
>> Heni speak to the thank the member for
giving way. does not speak to the wider
fiscal challenge that by taking equity
stakes and public control in
corporations that generate money for the
public good that grows the tax base it
grows the revenue base sorry of the
Scottish government
>> Mark Ruscoll
>> absolutely and it's that virtuous cycle
of reinvestment in public services that
benefit us all and if that results in
more um profitable and more successful
public services that meets the public
needs then that virtuous circle just
continues and continues I mean
notwithstanding that I recognize the
crashes. I think we were all at the
public finances um seminar yesterday and
and bits of it were sobering. Although I
was particularly proud of the fact that
the changes in tax that the Greens
brought in through a budget deal have
actually resulted in one half billion
pounds of extra services, investment in
services every year. Um but I recognize
there's still a gap there. I recognize
that public service reform is
inevitable. We've also got other
challenges though within our economy. So
AI is being talked about very positively
in the chamber this afternoon, but of
course it is changing the labor market.
It is changing the opportunities that
are available particularly for young
people to take their first jobs in
industry. And then of course who can
ignore the climate change? Well, climate
change and the climate crisis. Well,
unfortunately I think most speakers have
this afternoon apart from Paul McClennon
who I think gave a very good speech. But
I would also just point to the economic
impact um sorry the the impact on the
economy of climate change. If you look
at the impact uh in the national park in
the Kangors as a result of the wildfires
uh this summer this is just a hint of
the economic impact to come because of
climate change and it's clear that
climate impacts harm productivity.
Climate impacts contribute to higher
inflation. They put pressure on public
finances and climate risks actually slow
growth. So, it's disappointing that the
PFG program for government is weak on
climate. There isn't a transformative
mission at the heart of the PFG, for
example, on home heating uh that will
create jobs, that will tackle the
crisis, that will lower emissions. I was
surprised not to hear any uh speaker
this afternoon talk about the well-being
economy. I thought this was uh a legacy
from Nicholas Sturgeon that members of
the SNP were particularly proud about
and it feels that right now we should be
doubling down on that vision of a
well-being economy, fair and inclusive
work, gender equality within our
economy, fair taxation, investment in
communities and an economy that operates
within the ecological limits of our
climate and our environment. And you
only got to look at the issue of hypers
scale AI data centers. Of course, hypers
scale AI data centers will deliver GDP
economic growth. They'll they'll deliver
growth and wealth for speculative
developers.
>> Yeah.
>> Seeking planning permissions for the
operating companies and bizarrely even
the environmental impact of hypers scale
AI data centers will increase GDP. But
where are the well-being economy tests
here with the government? Where is the
test around the lack of jobs that these
data centers will will deliver? uh where
is the failure? Where is their
assessment of their failure to reinvest
back into the communities that are
hosting them? The Scottish government
really need to get a grip on the growth
of these data centers, define what is a
responsible investment in Scotland. And
while they're waiting to do that, they
should hit the pause button on approving
any more because, you know, Stephen uh
Flynn said that regulation uh needs to
be simple, but it needs to be as a last
resort. I mean, I I disagree. I think
regulation can drive innovation while it
also protects people on the planet. And
right now, uh, cabinet secretary, AI
data centers really need that
appropriate level of regulation. It
needs to come sooner, uh, than later.
Presiding officer, I think I'm nearing
the end of my of my time. So, what I
will say is that, you know, we have a
potential for an incredible
>> We have got time. So, you may finish
your speech.
>> Okay. Thank you very much. Um, I think
if I can just Did the cabinet secretary
want to come in on that? No. Okay. Uh um
I think I've noticed that the cabinet
secretary uh covers the environment and
rural affairs is also um with us this
afternoon, but it's been, you know,
noticeable that we've had very few
reflections on on the environment. And I
I would really just well I know the
cabinet secretary is about to speak, but
if the cabinet Yes. So maybe cabinet
secretary will come around to that. I
would though circle back though to the
importance of putting communities at the
heart of this government's action on the
nature emergency as well. Uh I visited a
number of projects that have been funded
in communities by the nature restoration
fund over the summer. um from Strath
Fillain where the community is involved
in large-scale asset transfer, the
forestry and woodland um you know
through to uh Lock Allen where the rural
affairs committee visited over the
summer where we saw really ambitious
coastal restoration projects and I would
say that that work is is really leading
leading the way in Scotland and it's
creating jobs and it's creating
opportunities for communities. But the
the message that we've been getting
continually is where is that long-term
commitment to funding? So, communities
are starting projects. They're starting
uh ambitious work which is benefiting
the economy and benefiting the
communities and environment, but they
don't have that long-term commitment
through the nature restoration fund. So,
I would ask the cabinet secretary uh to
to reflect on that and ensure that
communities are at the heart of the
nature recovery work that we're doing as
well. Um, I think the final thing I
would I would say uh, presiding officer
is that, you know, we have the potential
for a vibrant future economy in
Scotland, one which is fair, a real
well-being economy. And it'll be
interesting to see if if the cabinet
secretary is prepared to use that
language in summing up as a as a as a
sturgeonite perhaps she will. Um, but it
but it but it's clear that it's clear
that there are big challenges that we
need to address. We need to get this
right. We need to get this right in
terms of our approach to uh potential
threats like AI. We need to empower
communities. We need to put people at
the heart of delivering of public
services. And I think that that is where
we on these benches still have questions
about whether this government is
ambitious enough in actually putting
people and planet first.
>> I call Duncan Massie.
>> Thank you, Deputy Presiding Officer.
Well, it's been an interesting debate.
Uh I think there have been points of
agreement. I do welcome the fact that
again we're at least talking about
growth which uh seems to have been
missing from this parliament and
certainly from S&P administrations for a
very long time. But I do fear however
that this continuity Scottish government
just cannot deliver. It just doesn't
understand the issues and it will keep
imposing high taxes and myriad
regulation. It will keep on imposing
Soviet style dictats like food price
caps, minimum alcohol pricing, and
centralized control well of nearly
everything.
So again, my fear rather than the growth
that's set out in our document, what we
will actually get will look more like
1960s Albania now complete with
breadcues.
Because we know Scotland today faces
stagnant growth causing stagnant wasted
wages and resulting in far too few
opportunities for people especially
young people. That's the national
failure and it's one that must be
addressed by growth coupled with jobs
and benefits reform.
And of course, it's hard to drive growth
and jobs when we are crushing one of our
key industries, crushing our North Sea
oil and gas industry with deliberate
policy choices.
I am pleased that the jack door gas
field looks set to go ahead. However,
let's be clear. It's the bare minimum
needed to revive our industry. And the
dither and delay from Labor and Tory
governments over these consents along
with S&P's presumption against new oil
and gas has been hugely damaging for the
industry. I will take an intervention.
>> Patricia Gibson,
>> for taking an intervention, I'm just
thinking I'm just wondering if Mr. Massi
has considered given that everything is
so awful according to him how he can
explain why it is that more taxpayers
continue to move to Scotland from the
rest of the UK than leave Scotland.
Um surely that is at odds with the idea
that everything is just terrible here.
Duncan Mi
>> I think you'll find that the tax base is
declining even if the numbers are
increasing. But in case in caseing with
the important argument that I'm making
about oil and gas, I want to use this
opportunity to call on the UK government
to urgently approve other pro projects
like Rosebank as well as backing new
exploration so that we can maximize our
own resources whilst reducing imports
and overall emissions. And that ensures
that we protect jobs, protect tax
revenue, and protect energy security.
And I call on this S&P government to
back this as well. This parliament needs
to be a champion for our oil and gas
industry if we want a strong industry
going forward. And I do hope the cabinet
secretary agrees. Yes, I would.
>> Paul McClennon.
>> Thank you, Sign Officer. I mentioned in
my speech talking about energy and
climate intelligence unit saying there
was 1500 green jobs in his loading and
that's continuing to to grow. Does he
not understand the rhetoric coming from
his party and his colleagues are harming
these prospects in my community and in
my area
>> Duncan Massie and we do have time in
hand so you can respond.
>> I disagree with that and I'm coming to
energy uh because of course I will
answer that. I will answer that. Of
course, another core reason for the lack
of growth is the cost of our energy. And
despite the Saudi Arabia style rhetoric
that we're hearing, uh what we have is a
failing system that is driving an ever
more fragile grid dependent on huge UK
government subsidies and driving some of
the highest energy costs in the world,
especially our energy, industrial energy
prices. And that is causing huge cost of
living challenges and of course driving
huge damage to all our industries and
many businesses.
And let's talk about jobs because it
seems to me that this government is
becoming increasingly desperate on the
lack of renewable jobs that are coming
through. And that's in terms of job
numbers, location of jobs because
they're not happening in the northeast.
and the pay of these jobs which are much
lower than equivalent industries that
are being replaced. ONS numbers say
around 16,200
direct renewables jobs in Scotland and
that's great and we support uh
renewables in the energy mix but that's
versus around 90,000 in the upstream oil
and gas industry. So we need to have a
perspective. Renewables are a welcome
part of the mix, but they're are not a
replacement for our current energy
industries. And of course, if we look at
some of the, you know, wider
infrastructure like our fantastic
prochemical infrastructure plants like
Grangemouth, uh there are real risks to
operations going forward because feed
stocks will become more and more
dependent on ethane imports from the US.
So Britain and Scotland, we need cheap,
abundant, reliable energy and that's
going to be best delivered by maximizing
our oil and gas over the medium term,
transitioning to nuclear power over the
longer term with renewables playing a
complimentary role rather than a
dominant one.
So to conclude, presid deputy presiding
officer, as we outlined earlier, it's
now time for a reset. We need to build a
wealth economy instead of a welfare
economy. To build a new modern Scotland
which produces which builds prosperity
for all through well-p paid and
meaningful jobs rather than welfare. To
create a joined up industrial strategy
for Scotland based around our 10 natural
worldclass industries. And with the five
key policy areas being cheaper energy,
lower taxes, skills and retraining, real
deregulation, and less of the
performance performative gimmicks.
Ultimately, our goal should be clear. We
must build a Scotland where young
people, whether pursuing a trade or a
profession, an apprenticeship or a
degree, can secure a good job, earn a
decent wage, afford a home, take a
holiday, and raise a family. That is the
promise of a growing economy. That is
what reform seeks to deliver. I would
ask members to support our amendment.
Thank you.
Paul Sweeney.
>> Thank you, Deputy Resigning Officer, and
I second the amendment in the name of my
friend, member for Edinburgh Southern.
Um, this afternoon, we've heard an
interesting uh debate about headline
growth, but also more interestingly,
some of the more holistic issues we need
to do to address fair economic growth,
the kind that builds up local economies,
joins up education with industry, and
embeds fair work to weather climate
change. We too often pass legislation on
say land reform or community wealth
building in this legislature with
high-minded rhetoric only to watch
radical ideas get watered down into
administrative burdens for cashstrapped
councils and bus franchise franchising
as was mentioned by Mr. Harvey is an
obvious example of this taking far too
long and way behind other British cities
in the case of Glasgow and indeed by
introducing the fair cap which is
welcomed it's simply doubling down on
corporate subsidy rather than taking
public control in the truest sense we
need to speed this up
>> yes I have to give way
>> the member will know that I support
regulation of Strath Clyde buses I'm
just wondering if the members have a
perspective that the more public money
goes into the bus system the more we can
extract in behalf of Strath Clyde when
we bring in that regulation.
>> Paul Sweeney,
>> it's a very good point and it speaks to
Mr. Ruscoll's point about a virtuous
cycle. If we can extend public control
of the fairbox and Strath Clyde that
will supercharge our ability to run
subsidized services where there isn't
profitable routes for example or extend
the frequency of bus services. So it's
an important part and actually as the
center for cities has identified if
Glasgow can catch up with other European
cities of now size the entire Scottish
economy would be around 4% bigger. So
it's a huge prize to be won if we can
get it right. And that's particularly
crucial because as the government knows
they are facing a 2.6 billion pound
resource deficit and a2.1 billion pound
capital deficit by 2030. So managing
this fiscal gap through consolidation
alone risk repeating the disruptive
mistakes of austerity that we saw from
2012 onwards. And to grow revenue we
must acknowledge also the fundamental
role of large domestically anchored
firms in our economy. major corporate
headquarters drive regional supply
chains, research and development and
build our tax base. So without them, our
macroeconomic output is undermined and
eroded. And the Scottish government's
own figures from just last month expose
the vulnerability of our economy. Only a
fifth of Scottish businesses actually
export at all. Because we rely so
heavily on a shrinking pool of large
firms to carry that burden, the loss of
domestic corporate leadership is
catastrophic. is exactly why our
manufacturing exports have collapsed by
15% in real terms since 2018. And this
is the cost of losing half of our major
independent publicly listed company
headquarters in Scotland over the last
30 years. Titans like Scottish Power,
Scottish and Newcastle and Christian
Salverson, all hollowed out by foreign
takeovers. And this barely features in
the public debate. But without these
domestic anchors, Scotland operates
increasingly like an extractive
enterprise for foreign multinationals.
In 2021, the gap between our gross
domestic product and our gross national
income revealed that 36.5 billion pounds
was extracted from our economy to
overseas shareholders. International
capital is too often favored over
domestic public value as we regularly
hear from uncritical sighting of foreign
direct investment statistics like we
heard from the member for Paisley and
the member for Kelvin and Mary Hill in
Glasgow. We only need to look at our
ship building heritage as was mentioned
earlier to see the historic cost of a
lack of joined up industrial planning in
Scotland. In the 1980s, a senior civil
servant warned that the chairman of the
state-owned British ship builders
corporation that Margaret Thatcher
wanted rid of ship building. And that
crusade culminated in 1988 when the
industry minister, Kenneth Clark,
decided over dinner uh to turn off state
support for the ship building industry,
prompting the chairman to turn up at a
colleague's door asking for a bottle of
whiskey to toast that it was all over.
And as one yard director noted at the
time, just as British ship builders was
becoming effective, it was terminated.
And today, other European countries,
principally France, Germany, and Italy,
dominate an industry in Europe worth 92
billion euros and employing over 350,000
people. Today, reforms leader pedled
that same hands-off dogma, and there
wasn't much detail from the cabinet
secretary about what it would do in the
government to improve industrial
planning. Uh, when our Scottish
engineering champion and wood group was
recently faced with a foreign takeover,
the Scottish minister sat on their hands
and did nothing about it. And this
paralysis is most absurdly demonstrated
by handing half a billion pounds in
taxpayer funded ship building contracts
to overseas shipyards in Turkey and in
Poland. And as my colleague, the member
for Neil and mentioned the recent
procurement for the Lord of the Isles
ferry was excluded British shipyards
from bidding at all. So we have to look
at what other countries are doing and
benchmark against in contrast what's
happening here with Spain's tax leasing
regime which is levering accelerated
depreciation to provide a 20% subsidy
for domestic shipyards while our
government treats procurement as an
isolated transaction nations like Spain
are using statebacked finance to
guarantee domestic work. We should be
using the Scottish National Investment
Bank to de-risk projects for our own
shipyards not exporting capital and
importing finished ships. So where the
Scottish government does intervene also
it is often halfbaked and disastrously
misjudged. As we heard from the member
for Northeast Faith in 2015 ministers
brokered the sale of the DL steel works
in Motherwell to Sanjie Gupta with an
unpaid 7 million pound loan um also for
an aluminium wheel factory that never
materialized in the highlands. Now DL is
paralyzed by cash shortages unable to
roll 34,000 tons of steel plate for the
new royal auxiliary ships being built in
Belfast. Instead of propping up letting
these dodgy magnates hold these key
assets hostage, we could be aggressively
backing a green steel plant there with
an electric art furnace to feed our
shipyards and their offshore wind
sector. Perhaps the reform of compulsory
purchase orders and compulsory sale
orders that the member for Carrick come
up doing valley mention could be
deployed in favor of our industries as
well as our high streets. So we must
reclaim our industrial and municipal
ambition in Glasgow, a city built in
worldclass engineering and bold
municipal enterprise. We know true
economic strength is generated locally
and retained publicly. We need an
industrial strategy that backs our
domestic engineering base, leverages
public procurement for local supply
chains, and ensures our infrastructure
serves the public good. We cannot settle
for a branch plant economy. We must
build Scotland economy in a way which
retains its wealth for the communities
who generate it. Thank you.
I call on the cabinet secretary to wind
up the debate and we'd be grateful if
the cabinet secretary could take us just
up to before decision time.
>> Thank you, presiding officer. And for
those of you that have been waiting for
um uh the climate aspect of things, the
rural aspect of things, and there's been
a number of people uh in in the the
debate that have alluded to quite a lot
of the economic growth potential,
particularly in climate action. I'm
going to concentrate my remarks largely
on that but obviously um make mention of
some of the points in in the debate here
and I'm really grateful for all the
contributions and I think there's also
been a bit of a philosophical debate on
what is e economic growth you know Mark
Ruskll um I'm not an anything out
actually you know but I'm I'm I'm I'm
just somebody that wants to see a
successful country for for the everyone
that lives in Scotland and if that's the
well-being economy then that's the
well-being economy I mean I think We all
know countries where you've got um high
GDP and you've got um um um large
companies, you've got billionaires with
like nine yachts, is it or or or
whatever. And and that's a sort of
marker of economic success, but it's not
a marker of economic success if you've
got kids going hungry. It's not a marker
of success if you've got town centers
depleted. You've got people that can't
get work or or don't have opportunities.
that is is if that's a well-being
economy then I'm you know I I I I I want
I want that and and of course um that
doesn't that doesn't m that doesn't make
me a character from Dr. Shivago uh to
Duncan Massie is painting us as you know
wanting to see that everyone in our
country gets the the fruits and the
benefits of economic growth. It's been
some kind of like communism. That's
absolutely ridiculous. And actually at
the end of Duncan Massie's speech, he
actually pointed to what actually a
well-being economy is. Um which I was I
was really pleased to hear from from Mr.
Massie because he talked about what it
would mean for the ordinary families.
And our program for government sets out
a clear plan of action we'll take over
the next five years for sustainable
economic growth. Sustainable economic
growth that is going to be benefiting
people, providing jobs, providing
opportunities for our young people, but
also progress on our climate commitments
because e economic growth that benefits
people and communities across Scotland
and provide well-paid jobs also goes
handinhand as Paul McClennon says with a
lot of the activities associated with
the transition. Um you know Duncan
Massie mentioned that the 90 90,000 jobs
associated with oil and gas and my own
family has benefited very much from from
that industry. Um many of them have wor
worked in it but 90,000 um jobs was the
peak at 2014 and we know the trajectory
is is slowing down. So we need to make
sure we need to make sure that there are
the jobs for the for now the transition
and the future. Um, and we need to make
sure that we're also we're less reliant
on burning fossil fuels for all our
civic e activities because we've seen in
the last well the last year what that's
meant for like the my constituents and
many constituents in rural areas who've
got oil fired gas heating out the back
what that does to rely on that kind of
heating um means that you are subject to
to global geopolitical uh situations. I
will.
>> Paul,
>> thank you. Thank for giving. We just to
address the point I made earlier about
firms. Um, does she not regret that the
Scottish government didn't do more to
try and preserve the independence of
Wood Group as an independently
headquartered large Scottish company?
>> Well, this this gives me gives me an
opportunity to to share Mr. Flynn and my
bewilderment about that. I mean, it was
was Mr. Sweeney asking that we
nationalize Wood Group? Um, I'm I'm not
quite sure what he wanted us to do. I'll
go back I'll go back to some of the the
the contributions. And now what I really
liked about some of the speeches that I
heard today is the fact that is the fact
that we um members brought in other
interventions in the program for
government that actually are going to
have an economic impact. And Patricia
Gibson um and George Adam both made the
case about the economic um potential of
child care. And I one of my favorite
stories is about Yen Stolenberg who was
the Norwegian prime minister and he was
asked by the Washington Post what's the
secret to Norway's economic success and
the journalist was expecting a response
that was oil and gas and he didn't say
that. He said oh we've made childcare
free so that we've increased women's
participation in the economy and that's
the secret of our economic success and
that's always stuck with me. So those
might look like a social intervention or
educational intervention has an e
economic input as well and I was really
pleased to hear Patricia Gibson and
George Adam refer to that as well. Um
Katie Hagman and Patrick Harvey also
pointed out the lack of powers in
employment law and the impact that would
have on fair work if we had those powers
here as well. And I think that that's
really important particularly we talk
about that well-being economy. Um the
insecure work has grown since 2011.
That's not me saying that's a TU. And
the types of jobs associated with that
insecurity are care, leisure,
hospitality disproportionately affecting
female workers. Yes, I will. I'm uh I'm
very grateful if I'm being called uh for
the cabinet secretary giving way. The
the point I was making was twofold. that
yes, there are constraints in the
devolution settlement that don't allow
us to take hard measures, but also that
there are things the Scottish government
could be doing within those limits. Does
the cabinet secretary agree that the
Scottish government ought to work
constructively with the trade union
movement to help drive up union
membership in under unionized sectors
like hospitality because that's a way of
uh making sure that we bring about a
change in the power balance within parts
of the economy where it's hurting
people.
>> Yeah, I I mean I I I agree I would agree
with that sentiment. I think the
Scottish government's done an awful lot
of work with the ST on this in
particular. Um, I want to go back to uh
some of the the comments that others
have have made as well. I mean, Bob
Doris rightly challenged Rachel Hamilton
on the need to reform the fiscal
framework to give Scottish government
and parliament more scope on fiscal
levers as well. and and and I I I think
that's you know again in the round has
an impact on the economy but economic
growth Malcolm offered made some
assertions about economic growth uh
between um you know the the the the
parameters of the dates that he
mentioned economic growth between 1990
and 2024
grew 68.5% in real terms and that was at
the time that we set our net zero
targets as well And I think that says a
a story. Scotland's economy grew by
68.5%
in real terms at the same time as we cut
our greenhouse gas emissions by more
than half. Now
that is a fact and it also speaks to the
fact that economic growth is not just
GDP. Scotland's I won't won't Mr. Ma
massi we have competitive advantages in
key se sectors and offshore energy
supply chains financial professional
services associated with them huge
infrastructure investment in our
electricity grid and networks that are
going to sustain thousands of jobs
across Scotland and unlock significant
investment that will see businesses form
and grow and that is the that that
that's the the fact of the if you are
turning your back in any of the actions
associated with climate action and the
drive to net zero though you're turning
your back on that growth potential. The
direct financial benefits of delivering
all of the policies in the climate
change plan is estimated at over 42
billion pounds to the Scottish economy
over the period to 2040. and adaptation
measures like infrastructure investments
in utilities, wellp prevention, flood
defenses are critical, will provide jobs
I won't just now and in themselves
contribute between six and 7 billion
pounds to the economy over the next
year. And Mark Ruskll also made the
point that they will save money as well.
The wildfire devastation that we've seen
not just in Scotland but across of the
UK has had real economic impact on
communities and net zero related
industries already support 10.2 billion
in gross value added in Scotland. That's
4.9% of the total economic output and
over 100,000 full-time equivalent jobs
across Scotland. And I was very pleased
to hear some of the examples from
people's constituencies, members
constituencies. Um, and and Katie Hagman
mentioned the organic fertilizer from
land energy in her constituency. And
again, that is a resilience issue as
well. We have manufacturers in Scotland
that are looking at organic fertilizers.
That means that the cost of fertilizer
is not impacted by the oil price and
indeed adventures in the straight of
Hormuz. And we need to see more of that
happening in Scotland. And uh we need to
make out make sure that we're more
resilient in that in that way. Our 200
million billion energy infrastructure
pipeline represents a long-term flow of
capital investment across multiple
regions and multiple regions not just in
northeast where I'm from where the
energy industry has been vibrant for
many many decades. The investment in
renewables and the investment in in in
new lowcarbon technologies is going to
take place across the whole of Scotland.
The whole of Scotland are going to
benefit from the the the revolution that
we'll see in lowcarbon energies.
But of course, Scotland's vast energy
wealth must benefit the people of
Scotland. We've seen 400 billion pounds
in revenues from the North Sea have gone
directly to the UK government's Treasury
coffers and that's why we formally
requested the devolution of energy
powers from the UK government to the
Scottish Parliament. George Adam went a
tad further of course and rightly said
that all powers should be brought to the
Scottish uh government and parliament
and we should have our independence.
But our economy must deliver for every
part of Scotland. As I said, we're
investing 1.9 billion over the next 10
years in regional growth deals to unlock
uh economic potential across the whole
of Scotland. I want to say a little bit
about what Liam MacArthur has talked
about and how we can be looking at
potential planning reforms and how we
must treat our rural and our island
businesses and economic growth
differently because there are different
stresses and pressures but also there
are different opportunities in that
space and that's the kind of
conversations I want to have about the
rural renewal bill and indeed I want to
feed into planning reforms about how we
can make economic growth in our island
communities and our rural communities
Please surge. I will if I have time.
Presiding officer
taking an intervention from
>> Liam MacArthur.
>> There's two people asking to come in.
>> Thank the cabinet secretary um for
taking the intervention and for her her
comments. is not I I suppose a matter
for her as a government minister but the
point I was making about the need for
post- legislative scrutiny of the
islands act 10 years on is that
something that in the generality um she
would support as a principle because I
think it's fairly clear that promises in
relation to future legislation um are
going to be easier to stack up if
there's confidence that a legislation
has already been passed is actually
doing what it said on the tin
>> cabinet secretary
>> well obviously there's post legislative
scrut is looking at the actual
legislation itself, but there's other
things that we can do without having to
change legislation. And I'm keen to do
them, particularly with the rural
renewal bill and particular
interventions and the rest rest of
government around planning reforms that
might make things uh less less
difficult, bring down some of the
barriers to economic growth. Um I will I
will wind up now presiding officer. I'm
determined to deliver climate action in
a way that supports thriving local
communities, businesses, and households.
I am very pleased that I was asked to
wind up this debate along with my
colleague Steven Flynn because climate
action is a blueprint for economic
growth and I am convinced of that and I
think it's shown today in some of the
contributions indeed the the the way
that we have worked together to talk
about our economic growth opportunities
also speaks to our climate ambitions as
well with a once in a generation
opportunity for transformation that not
just won't just reduce emissions but
will en ensure that our economy prospers
and if we don't grasp the opportunities
of this other countries will we will
grasp these opportunities with both
hands and in 10 15 20 years we will have
a more energy secure country we'll have
a more prosperous country and we have
one that will be playing our part in
addressing climate change thank you
>> thank you cabinet secretary
that concludes the debate on program for
government and economy fit for the
future item of business is consideration
Point of order, Julie McDougall.
>> Thank you, presiding officer. Um, I just
wanted to formally give an apology um to
yourself and the chamber. I opened the
debate last Thursday on behalf of reform
and um I wasn't here for the closing
speeches. It won't happen again. Thank
you.
>> Thank you very much for that. It's
appreciated.
Sorry, button is now working. The next
item of business is consideration of two
parliamentary bureau motions. I call on
Jamie Hburn on behalf of the
parliamentary bureau to move motions
1097 on committee membership and 1098 on
substitution on committees.
>> Move presiding officer.
>> The question on these motions will put
at decision time and we now move to
decision time. There are seven questions
to be put as a result of today's
business and can advise members that if
the amendment in the name of Patrick
Harvey is agreed to, the amendment in
the name of Rachel Hamilton will fall.
The first question is amendment 1070.1
in the name of Daniel Johnson which
seeks to amend motion 171070
in the name of Steven Flynn on program
for government and economy fit for the
future be agreed. Are we all agreed?
>> We are not agreed. Therefore, we'll move
to a vote. There'll be a short
suspension members to access the digital
voting system.