Salmond criticises government for lack of financial stimulus

There are two threats to the recovery of the economy, Alex Salmond, First Minister of Scotland, told conference. The first is the difficulty of accessing finance, and the second is the lack of financial stimulus package for the UK.

"I envy Peter Mandelson," said Mr. Salmon, "not for his membership of the House of Lords, I envy him in that he is the major shareholder in a number of the nation's banks."

Pointing out Lord Mandelson's role as the major shareholder of some banks, he said that he should be aware of the recent Access to Finance Survey published by the Scottish government. This represented a major threat to recovery, he said. "I don't think it's too much for the major shareholder to suggest proper access to finance."

The First Minister explained how he was in Washington on the day that Obama launched his financial stimulus package. Japan, France, Canada, and Italy all have similar programmes in place, but Britain does not, he said, and this is the second barrier to full financial recovery.

On a more positive note, Mr. Salmond pointed to the success of the Small Business Bonus Scheme, which the Scottish National Party was quick to introduce when it came to power.

"The Small Business Bonus Scheme was very much at the heart of the FSB manifesto in the 2007 elections," he reflected. "What the Small Business Bonus does is give the automatic relief from Business Rates: 100% for businesses relief with ratable values of £8-10,000; 50% for the £10-12,000; and 25% for the £15-18,000."

The recession had meant that the economic environment is not as it was when the bonus was introduced, he added - but it was perhaps, even more necessary during the last three years than under circumstances in which it was first envisaged.

Small businesses had been able to take advantage of apprenticeship schemes in Scotland, he said. The First Minister also raised the issue of the Payment Services Directive - 90% of companies working for Scottish government are now paid within 10 days, he said. But he admitted that subcontractors would not necessarily be getting such favorable payment terms, so he pledged to tackle this by ensuring that 10-day payment terms tickle down from contractors to subcontractors, and so on down the chain.

Also on the subject of finance, proposals for a Scottish Investment Bank for Scotland are very near fruition, he said. There is now an East of Scotland Investment Fund and the East of Scotland Fund as been expanded, Mr. Salmond announced. Not only will existing businesses receive help from the new East of Scotland Fund, but 130 new businesses will also be able to get support from the fund.

A question from the Shropshire region challenged Mr. Salmond to explain how Scotland would cope without subsidy from England, if the nation got full independence. Nodding towards Aberdeen's oil rigs, Salmond joked that if his nation was independent, "folk from Scotland wouldn't continually be complaining about the people from Shropshire living off their natural resources - and people from Shropshire could live off their own natural resources". 

 

Source - FSB : Conference Insider

Posted Date: 19th Apr 2010