Scotland is a wealthy country with many rich and diverse resources. If Scotland was a business it would be worth investing in. It has a skilled population, a strong track record, important trading links and opportunities in new sectors. It has many assets. Yet the campaign against independence is determined to present Scotland’s assets as liabilities. With this strange mindset, profitable resources become a problem! Management of key resources involves regulation and decision making. If you win the lottery it involves the complicated questions of how to handle the returns, where to invest, and how to choose between different options. Scotland – with huge natural and human resources – is in a similar position. The No Campaign is like a lottery winner who rejects the reward because they’re worried about setting up a bank account. Oil and gas David Cameron describes North Sea oil revenues as the “jewel in the crown” of the UK economy. No wonder. Over £300 billion of tax has been collected by Westminster. 15-24 billion more barrels have been identified for the next 40 years. Oil has made countries across the world prosperous, yet Westminster claims that they need to control the money as this would be a problem for Scotland’s economy. No country in the history of the world has given away its oil resources due to economic problems. Despite this, the huge asset of North Sea oil and gas is presented as a liability for Scotland. Whisky The value of Scottish whisky exports was over £4 billion last year alone. David Cameron boasted that this added £120 in value to UK exports every second. The lucrative sector has enjoyed increased sales in emerging markets including China, India and Brazil. Whisky is clearly a massive asset for Scotland. Yet the Westminster Foreign Office previously declared that Scotland would suffer without their support promoting whisky internationally. This backfired when it turned out that Scottish Development International were charged to promote whisky through the Foreign Office. In any case, it’s ridiculous to suggest that the popularity of whisky is due to the efforts of David Cameron’s Government. Whisky will clearly be an asset after independence, not a liability. Renewable energy Scotland has vast wind, wave and tidal potential in the renewable energy sector. With cross party support in Scotland, there has been a gradual growth in electricity production from renewable sources. With technological improvements, this has brought down prices and contributed to the UK’s green targets. As Scotland is a energy exporter, this resources keeps lights on in England as Westminster is forced to build expensive nuclear power plants. This huge opportunity for jobs, investment and energy in Scotland is derided by the No Campaign. Westminster politicians claim that Scotland couldn’t afford to support renewable infrastructure. Similar countries like Norway and Denmark capably support renewable projects and there is a clear incentive for the rest of the UK to maintain a common energy market due to the benefits of Scotland’s renewable production. University sector and research and development Scotland has five of the world’s top 200 universities. Scotland’s higher education sector is also incredibly successful at attracting research investment. This is due to a mixture of high quality staff and research institutes. Over 40,000 international students choose Scotland as their destination to live and learn. Professor Paul Boyle, Chief Executive of the UK Research Council, said he favoured the current model of research funding in the event of Scottish independence. Despite this, the No Campaign has claimed that research funds would be under threat. Instead of focusing on the strengths and assets of Scotland’s university sector, the No Campaign prefers to present the sector as a liability for Scotland. It isn’t. Tourism Scotland is one of the world’s top tourist locations with over 14.4 million domestic and international tourists over the last year. Scotland has exceptional natural assets in the beauty of its scenery. Scotland also has an unrivalled cultural sector and in terms of business conference locations, heritage, quality dining, nightlife and digital connectivity, Scotland is in a position of strength. Independent reports by both Barclays and Delottie found that Scotland is ‘set for a tourism boom’ with the potential for the sector to double in size from £11.6 billion to £23.1 billion. Independence will also benefit the tourism sector by putting Scotland permanently on the world stage and through international promotion. In the face of this information No Campaign leader Alisdair Darling said “the UK attracts people to the great tourist attractions of Scotland“. The idea that Scotland’s tourism sector relies on the Westminster Parliament is ridiculous. Clearly a growing and successful sector like tourism is an asset for Scotland’s economy and not a liability. Shipyards Scotland’s shipyards at Govan, Scotstoun and Rosyth produce world class ships. Despite Westminster’s poor record on shipping, high quality engineering and construction continue in Scotland. The No Campaign have downplayed the abilities of the workforce by claiming that the yards are dependent on contracts from the Ministry of Defence. Yet Rosyth and Govan build ships because they are the best yards. Contracts are for skill not charity. It’s already been confirmed by Philip Hammond (Defence Secretary) that Rosyth will continue to build the second carrier whatever the result of the referendum until 2018. “Rosyth, Govan and Scotstoun are the only UK yards that can build the vessels.” (Guardian) BAE Systems has already committed to focusing its plans for downsizing Portmouth in favour of Glasgow because it makes economic sense. Geoff Searle, BAE Systems’ Type 26 Global Combat Ship programme director, said “All of our planning is based on the assumption that we will build at the revamped Scotstoun facility.” Never mind the scare stories. Most advanced economies would look at the shipbuilding skills in Scotland and create new opportunities. Professor of Maritime Business Alf Baird, of Edinburgh Napier University, says independence is a huge opportunity to revitalise shipbuilding, as did seven figures of the United Clyde Shipbuilders union last week. Countries like Norway have successfully diversified their shipping sector and Scottish design group Lateral North have proposed ambition plans to gain traction in the emerging Arctic region. Bemoaning and amplifying risks ensures stagnation and decline. While managed decline has been UK manufacturing policy for decades, Scotland can take a different path and create more jobs in quality manufacturing and the energy sector. That’s why shipbuilding is a huge asset for Scotland, not a liability. Financial services Scotland has many institutions which handle large scale financial projects, expansions and investments. This is important for the opportunities and challenges for an independent country including borrowing on the international credit markets, negotiating and managing shares of national assets and liabilities, and constructing plans for investment, growth and innovation. The ability of financial companies to manage investment projects remains a key mark of prosperity in the global economy. Despite problems with elements of shadow banking, other financial services such as pensions management, investment funds and building societies remain at the centre of the economic system. Financial services employ over 85,000 people in Scotland. Westminster politicians who failed to regulate the banking sector say that Scotland’s institutions should remain within Westminster’s structures. This is due to confusing the 2008 crisis and bailouts. They also ignore that most of the risky trading took place in the City of London rather than Scotland. There are many important lessons to learn about the relationship between retail and investment banking. However, this shouldn’t be used as a reason to caricature all financial services. Leading financiers have stated that independence will bring opportunities across the sector. As it remains a strong, diverse and developed sector, financial services remains more of an asset than a liability for Scotland. Conclusion The message is clear. A Yes vote for independence will bring Scotland’s massive wealth into Scotland’s hands. The No Campaign claim that Scotland would struggle economically and they claim that Scotland’s many wealthy sectors face problems. This is a contraction. How can Scotland’s many successful sectors be assets when we have a Westminster government yet become liabilities when Scotland is independent? Yet they only need voters to believe one doomsday scenario. A clear analysis of Scotland’s economy and future opportunities makes it clear that Scotland will be better off as an independent country. Rejecting the No Campaign’s ridiculous economic strategy will be crucial for Scotland to progress. Join Business for Scotland – Sign the business declaration
Posted on: Tue, 29 Jul 2014 17:03:39 +0000
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