Scotland’s Economy

Graeme Downie Excerpts

Tuesday 15th October 2024 Westminster Hall

[Graeme Downie (Dunfermline and Dollar) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Dowd. I congratulate my hon. Friend the Member for Glasgow East (John Grady) on securing this important debate.

Back in the mists of time, in 2007, a new economic strategy for Scotland was announced by a new kid on the block, a certain Mr John Swinney, a member of a Government that would rely on Conservative votes for its survival. Let us see how it went.

In 2007 John Swinney promised a “wealthier and fairer” Scotland that would

“enable businesses…to increase their wealth.”

As has already been said, Scotland’s economy has performed far behind what we would have expected and hoped. Just this week we saw the latest NatWest regional tracker published, analysing economic activity across the UK, with Scotland languishing in eighth place out of the measured regions—not a good start.

John Swinney said Scotland would be “smarter”, yet in 2017, when he was Education Secretary, the Scottish Government admitted that young adults

“are more likely to experience low paid, precarious work, and cycling between this and unemployment”.

Just this week the Scottish Funding Council said that the

“reform of the post-school…landscape has not yet been implemented”.

So much for smarter and better opportunities.

It was said that Scotland would be “healthier”. As a former board member of NHS Fife, I could waste an entire speech explaining exactly how that has not been the case: £1.7 billion of NHS funding on agency staff, £1.3 billion on delayed discharge, and a chaotic, overreaching attempt to design a national care service. That makes it three down so far for the First Minister’s 2007 plan.

It was said that Scotland would be “safer and stronger”, but we have had the shambolic implementation of Police Scotland and lower police numbers since 2008. The First Minister also said that Scotland would be “greener”. Is there any consolation at the end? Well, I guess we could give him partial credit here. The Scottish Government did become greener, albeit for only a short time, when a calamitous coalition with the Green party saw climate change targets abandoned and a disastrous attempt to implement an ill-considered and ultimately abandoned deposit return scheme. Before SNP colleagues begin drafting their press releases about more powers, I point them to the foreword to the 2007 document, which said that the strategy could be achieved

“with the levers that we have”.

Scotland deserves better, and that is what this Labour Government—who have been in power for only a little over 100 days, rather than the 17 years of the SNP—are already attempting to deliver. We have established a national wealth fund, launched the largest increase in workers’ rights, launched GB Energy, announced a record-breaking £1.5 billion of funding for clean energy, and issued an industrial strategy focused on growth sectors where we know Scotland can and should perform better in the future. That is what we should be aiming for.

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[John Lamont]

I totally agree. We need to invest in the skills we have; otherwise they will be lost, particularly for more traditional industries. If the skills are lost there, they might never return.

I do not often agree with the hon. Member for Aberdeen North (Kirsty Blackman), but she highlighted an important point about the gap that is emerging, with skills in the oil and gas sector potentially being lost if the renewable sector does not accelerate more quickly. Those in the sector up in the north-east, in Aberdeen, highlighted that point repeatedly during my time as a Minister. They were concerned that there was such a stigma attached to the oil and gas sector now that new people were not moving into that area and would not then be able to move over to the renewable sector when that opportunity arose.

[Graeme Downie]

Does the hon. Gentleman agree that the failure of both the SNP and Conservative Governments to plan for the site at Longannet, which closed in 2016 and now lies empty, is a missed opportunity? Does he agree that all Governments in the future should be looking to work together on that, to bring thousands of jobs back to that area of west Fife?

[John Lamont]

I will push back slightly on the narrative that, up until the election of the new Government, the Scottish Government and the UK Government had not been working together on the project that the hon. Gentleman mentions, or on other areas. The reality is—as, again, I know from my own experience as a UK Government Minister—that there were huge amounts of co-operation between the Scottish Government and the UK Government latterly. Yes, we did not agree on the question of independence, but it is a myth to say that just because there is a new Prime Minister, a new Labour Government, all of a sudden there is a reset. I know the UK officials behind the scenes were working incredibly hard with officials in the Scottish Government to achieve the best for all of our communities; for all of us who represent Scottish constituencies. The project he highlights is an example where both Governments should be, and have been, working together to try to achieve positive outcomes.

The last Member I want to mention is the hon. Member for Edinburgh South West (Dr Arthur). I have to say I was very disappointed that he refused to oppose the new Labour Government’s decision to scrap the supercomputer project for Edinburgh University. I know it was going to be a huge boost to the university. I know that even in my own area, again in the borders, there were a number of people directly employed with that project and they were mightily disappointed when the new Government decided to rip up that deal.

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[Martin McCluskey]

I welcome that comment from my hon. Friend, and also congratulate him on his election to the Treasury Committee, where I am sure he will make a great contribution. He has set out exactly what the plans the Government have set out will do for Scotland, and the aspirations and ambition of those plans for our country.

Returning to the UK industrial strategy council, this body will work with specialist sectoral taskforces, and bring together the expertise of businesses, academics, and trade unions to help drive economic growth in all parts of our country. That will allow us to build on Scotland’s strengths and huge potential in key sectors, including advanced manufacturing, life sciences, financial services, clean energy, defence, and creative industries—all areas where Scotland is already beginning to thrive. Together with the establishment of GB Energy in Aberdeen, which the hon. Member for Aberdeen North (Kirsty Blackman) highlighted in her speech, and the creation of a national wealth fund, we will bring investment, jobs, and growth to Scotland.

[Graeme Downie]

Does the Minister agree that a key area for investment from the national wealth fund should be Scotland’s port infrastructure in order to ensure we are making the best economic use of our coastline, such as at places like Rosyth in my constituency?