Scottish Economy
Debate between Deidre Brock and Ged Killen(6 years, 5 months ago)
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Ged Killen
Perhaps the hon. Lady will tell us in her remarks how her party intends to change employment law, if it is devolved to the Scottish Parliament.
Scotland suffers from under-investment. While the Scottish Government have produced many investment packages, they are often too small, too numerous and too unfocused to deliver the outcomes they are set up to achieve. Those are not my words but the conclusions of recent reports by the Fraser of Allander Institute and the Scottish Parliament’s Economy, Jobs and Fair Work Committee.
Under the current Scottish Government, we have had economic development plans governed by press release. Labour proposes real investment to correct the problems of stagnant labour productivity and GDP growth. We aim to stimulate investment more widely through a national plan that focuses long-term investment on local and national infrastructure, such as information, communication, services and production technologies, as well as in physical infrastructure, such as roads, buildings and town and city centres. That will not only correct the decade of under-investment that led to the productivity problem, but begin the vital future-proofing of the Scottish workforce against the challenges of automation and increasing digitalisation.
Furthermore, we plan to examine the possibility of public sector pension funds using their resources to establish a Scottish public provident fund, which could invest in local production and infrastructure, boost local supply chains and stimulate employment.
We will implement our industrial strategy and invest in Scotland’s economy. We will also encourage and incentivise firms in Scotland to raise the percentage of turnover invested in research and development. Scotland is only ninth in the UK in R&D spend per head, so such measures are sorely needed and will be vital in solving the productivity puzzle. Those kinds of investments will encourage the growth of new industries. An excellent example of that is CST Global in my constituency—a photonics manufacturer that I believe represents the future of jobs in Scotland.
CST Global has shown itself to be a significantly high-growth, high-skill business. It has sustained strong annual growth, with revenues increasing by 88% in a year to £6.7 million in 2017. It is a strong exporter, and the photonics industry is one of the UK’s most productive. On average, each employee in the sector contributes £62,000 to the economy in gross value per year—three times the UK average. These companies also have some of the highest export rates of any industry, exporting an average of 75% of their manufactured output.
Such companies are often city-based, and we would not typically expect them to be found in smaller towns, such as Blantyre in my constituency. However, CST Global has proven that that need not be the case; when conditions are right, those companies can not only do well but thrive in these places. CST Global is very welcome in Blantyre. Supporting such businesses is central to the investment-based economic model. If we want to see the future of the Scottish economy defined by high-skill, high-wage and high-tech jobs, we have to invest.
Deidre Brock (Edinburgh North and Leith) (SNP)
If the hon. Gentleman is genuinely interested in growing the Scottish economy, he should support the devolution of powers to set VAT and national insurance rates, and to collect fuel duties, capital gains tax, interest on dividends and export duties, as well as all the other powers that the Scottish Parliament does not possess and is therefore unable to use to grow our economy.
Ged Killen
It is nice to see that both the hon. Lady and her favourite pantomime villains have turned up to continue the set-to that we often see in the Chamber. I am here to make a speech on what I believe is right for the Scottish economy. She will clearly disagree on several areas, and she can set those out in her remarks. As always for SNP Members, independence is the answer, no matter the question. I am surprised to hear SNP Members now talk about devolution so much, given that they have always opposed it. [Interruption.]