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Holyrood's bottom line

Douglas Fraser | 06:53 UK time, Wednesday, 29 December 2010

Businesses don't vote: voters do. So why are politicians so exercised about the business lobbies' New Year messages, issued this morning?

CBI Scotland's Iain McMillan hadn't even released his report card on the SNP administration, when it had already provoked a heated exchange between the four main political parties.

The fact that they'd all got hold of the statement in advance does suggest he's more than happy to spark a bit of a barney.

And he knows that the view of the business leadership matters to politicians because they help shape public views on the question of economic competence. That played a starring role in 2010's Westminster election campaign.

It's a tussle rarely taken up by business leaders, who tend instead to be careful when they engage in sharply-worded judgements on incumbent politicians.

Roundly abused

It wasn't always so. A previous generation of business leaders in the 1980s and 1990s backed the then Conservative government in its opposition to devolution or to devolved tax powers, and were roundly abused for doing so. It's led to caution on political engagement.

But Iain McMillan isn't deterred. He's been around a while, and he's got previous on this.

He has less reason than others who lobby for business - whether the small-to-medium variety, directors or chambers of commerce - to try to represent a wide range of the membership's political views. He's given enough licence by the CBI's members (the larger businesses, often straddling the border) to stick his neck out a bit.

And that's just what he's done, with a [nearing the] end of term report card. It praises the SNP administration at Holyrood for its council tax freeze, transport investment, school curriculum reform, and renewable energy support.

But he then lists the items that CBI Scotland hasn't much liked: cancelling airport rail links, blocking more private involvement in delivering public services, notably in Scottish Water, and refusing new nuclear power plants.

'Wasted money and energy'

The incendiary bit is an attack on the SNP administration for its "national conversation" on independence, saying it's wasted money and energy on something Scots don't want.

The First Minister's spokesman was quick to hit back at Iain McMillan himself, highlighting his membership of the Calman Commission, at the invitation of the three pro-union parties that set it up.

That raises an interesting question of whether business supports the devolution tax measures, based on Calman, which the UK coalition government is now putting through Westminster. Iain McMillan has personally signed up for them, but otherwise, the normally vocal business lobby has been strangely silent.

One leading figure tells me members haven't yet engaged with it, having thought it would be quietly parked by an incoming Conservative government.

But it's now a coalition commitment, giving it momentum which is hard to stop. And when business-people do engage with it, my source tells me they're unlikely to like what they see.

Skirmishes and fury

Other items on the business lobby groups' wish list for economic growth may yet become hot campaign issues, but it's hard to see transitional relief on business rates revaluation becoming the national talking point by next May 5. Likewise, the question of Scottish Water's governance.

But these issues are skirmishes within that battleground of economic competence, over which the parties will surely argue furiously.

And among the SNP's responses to Iain McMillan and their party opponents is the intriguing notion that blame can be apportioned by a precise two-to-one ratio between the past Labour government and the current coalition one. It seems blame is now subject to mathematical calculation.

Just as calculating is the £30m levy on supermarkets. The CBI doesn't like it, but the Federation of Small Businesses does - or at least, it's not complaining.

The SNP is explicitly saying the proposal helps rebalance the power of the supermarkets against smaller retailers, and will affect only one in a thousand business properties.

In other words, there's a modification to that rule on business and politics: while big business doesn't vote, the people who run and identify with small businesses certainly do.

UPDATE

The war of words continues. Scottish government sources dismiss Iain McMillan as representing nobody in particular, and John Swinney has explicitly said he seems to be following a political more than a business agenda.

Meanwhile, the CBI Scotland director has been taking stock of the Scottish government's response to his New Year statement.

Speaking to ´óÏó´«Ã½ Scotland, he's said: "There is an arrogance, there is a smugness, and there is a propensity not to accept what business is telling it. And unfortunately we're seeing this coming through in far too many policies today".

Wasn't this meant to be the season of goodwill?

Comments

  • Comment number 1.

    Don't see what all the fuss is about. McMillan criticising the National Conversation is like a Ranger's supporter criticising Celtic. It's hardly front page news.

  • Comment number 2.

    Just like the supermarkets McMillan rants in bulk and sells it cheap.

  • Comment number 3.

    This comment has been referred for further consideration. Explain.

  • Comment number 4.

    I reckon this is a pretty well-balanced piece, actually (in comparison to some of the stuff we see from ´óÏó´«Ã½ Scotland, anyway...) Mr Fraser has highlighted that once the Scotland Bill is put up for closer scrutiny, it's unlikely to win favour amongst the majority of business leaders. He's also highlighted a very important point that defines a major difference in the SNP's approach to businesses and growth, as opposed to the Westminster approach of the past 31 years - namely a focus on small businesses and people, rather than bowing down to the narrow self-interest of big corporations. It's refreshing to see a Government governing for the people, rather than for big business, and it's something people really need to keep in mind when they go to the polling stations in May - do you want a party that looks after their electorate's interests and the many small businesses that make up our economy, or do you want one of the parties that have proven track records of bending over backwards to allow big businesses to run rampant over them?

  • Comment number 5.

    Perhaps governments are worried about what business thinks, rather than what voters think, because they pay a lot of taxes, and are responsible for allowing nearly everyone else to pay taxes.

    Having said that, we need this government (in London) to split the banking industry into separate compartments: transaction processing, retail banking, retail lending, business banking and venture capital. Which might be more easily defined as different levels of risk.

    Government needs to set some rules here, and not be worried about the rest of the world. If we get this right, there might be a lot more safe business coming our way. If we don't make these changes we'll end up with more risk in the banking system.

  • Comment number 6.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • Comment number 7.

    I posted two or three Douglas blogs back, on the Energy issue, my take on the National Conversation.
    I continue to believe that it is not in Scotland's long-term interest to divorce from the UK.
    Perhaps, however, it is the strength of the Euro that is attracting the separationists.
    There must be a 'secret-something' that the SNP intend to pull out of the bag to justify economically such a divorce, but, for the life of me, I can't see it!

  • Comment number 8.


    As Doulas Daniel @ #4 proposes - Think Small.

  • Comment number 9.

    The Scots invented the modern world.

    We built railways through deserts and jungles when everyone else said it couldn't be done.
    We built ships that naysayers said were too big to float and powered them with engines that they said would never work.
    We discovered medicines that saved millions upon millions of lives.
    We made scientific inventions that have changed the lives of every man, woman and child on the planet.
    We produced the philosophers that paved the way for modern society.

    And then the likes of MacMillan come along and say that we're not capable of looking after our pocket money.

    Sad. Very sad.

  • Comment number 10.

    Happy New Year Harry.

    What you say about the contribution Scotsmen made to world history is indisputable.

    I guess MacMillan was making the pocket money statement in the light of macro-management problems over the last decade or so, leading to 'bankrupcy' across our nations. And we all know which Scotsmen made this contribution.

    Hope we all have a good year, and that our cut, thrust & parry doesn't damage all our online friendships.

    Geoff.

  • Comment number 11.

    Happy new year Geoff.

    'And we all know which Scotsmen made this contribution.'

    If perchance you are including a certain Gordon Brown in this list then can I set you on the straight and narrow.

    Brown might have been born in Scotland but his contempt for the land of his birth is legendary.

    I will do everything in my power to keep the people of Scotland chained to their colonial masters and the nation bled of every penny it has and the proceeds sent south.

    The man couldn't even stomach using the word 'Scotland' when referring to the land of his birth preferring 'North Britain'

    When future books are written about Scottish patriots I can categorically state here and now that the name Gordon Brown will not appear amongst them.

    PS. Brown asked everyone in the country to fly a Butchers Apron in their gardens and having travelled the length and breadth of Scotland can say that I've seen the grand total of , erm, none.

  • Comment number 12.

    This comment has been referred for further consideration. Explain.

  • Comment number 13.

    12. At 8:02pm on 02 Jan 2011, tenswen_dnaltocs

    I wouldn't worry too much about it.

    Even the most ardent unionists I know are cringing at the performance of our media.

    Even if they loathe the SNP they are more worried about the loss of democracy in our country and have no wish to go down a Pyongyang style of state controlled propaganda.

    It's going to backfire on the unionists big style.

  • Comment number 14.

    This is an important story so why hasn't the ´óÏó´«Ã½ covered it?


  • Comment number 15.

    Harry, Guid New Year to you. It is not a question of worry but rather that I like many others take issue with the blatant partiality of the ´óÏó´«Ã½, who do not even try to report current affairs in Scotland in a fair and balanced manner. The fact that this blog appears to be free of the kind of censoring we see on BWB is to it's credit, although how long it will last remains to be seen.

    ´óÏó´«Ã½ Scotland appear to be quite openly operating an agenda that is pro Labour and hostile to the SNP and independence,even in the face of growing numbers of Scotlands population that are becoming in favour of such. By this quite disgraceful action they are in breach of their charter and disenfranchising a large part of the Scottish population. They know that they are bombproof on this as no body or organisation is prepared to stand up to them. It is border line racism. The amount of money they collect in Scottish licence fee, compared to the amount of money actually spent in Scotland is shocking in its deficit. Pacific Quay is no more than an oversized bookings office. A grey shed of a building out of proportion to its function and surroundings, simply a UK flag waving project.

    All complaints regarding programmed bias and blatant hostility such as we saw on the last Question Time from Glasgow are dismissed out of hand, in the most patronising manner.

    So it is not a question of worry, rather that I see it as my public duty to complain to the ´óÏó´«Ã½ and discuss it on line where permitted. These comments I have made would be censored on BWBs blog, it will be interesting to see if they survive here.

    There are online news forums springing up because of this deficit, one of which we are not allowed to mention, that has in a few short weeks become internationally popular and is exploding around the world, such is the depth and quality of articles found there. If you read my moniker on here in a Chinese kind of way you will arrive there. On BWB, that title was changed to a number such is the paranoia about the site, I see it has survived on here. I have not tested it lately on BWB as he appears to be comatose. But to change a moniker because it suggest a new site, shows a certain level of paranoia that could equal that found in North Korea, or the old Eastern Bloc.

    What is the function of a blog?

    What purpose does it serve if the comments on it are censored, even those comments that are not abusive or libelous, but which simply offend the political bias of the moderator?

    What statement then does that heavy handed paranoid moderating make about the blogs owners and the organisation behind it?

    You can say what you want as long as it does not favour the SNP or disadvantage Labour, what a sad indicment of the UK and the ´óÏó´«Ã½ if that is what it has to do to and win the argument. By those very actions they loose.

    So Harry, I am not worried, quite the opposite in fact. 2011 promises to be a great year for Scotland.

    Yours aye...

  • Comment number 16.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • Comment number 17.

    Iain Gray has just destroyed any opportunity of a trading relationship with Montenegro. The ´óÏó´«Ã½ didn't report it of course but a couple of newspapers have. Here's one example.


  • Comment number 18.

    You don't expect the Scottish Government to realise it even needs to listen, do you? The role of politicians, in the main, it to look like they're listening. It's rarely to take on actually managing situations.

    The spokeswoman's comments in this story, /news/uk-scotland-scotland-politics-12106764 , is sadly only too typical.

    She seems to be saying, more or less, "well, so what, if officers paid out of the public purse are running around in flash luxury cars at the taxpayers expense? You can't expect us to go around governing the NHS in Scotland can you? After all, we're only the Scottish GOVERNment!"

    Or am I being too cynical?

    Having said all, someone who works for a Health Board has expressed to me significant surprise at the number of middle and senior managers who have rather upmarket 'lease' cars to use, courtesy of NHS Scotland - and I'm not talking 4x4s to deal with bad weather.

  • Comment number 19.


    "... ´óÏó´«Ã½ Scotland appear to be quite openly operating an agenda that is pro Labour and hostile to the SNP and independence,even in the face of growing numbers of Scotlands population that are becoming in favour of such. ...There are online news forums springing up because of this deficit, one of which we are not allowed to mention, that has in a few short weeks become internationally popular and is exploding around the world, such is the depth and quality of articles found there." (tenswen_dnaltocs 15)
    ................................
    Dear tenswen_dnaltocs,
    TENSWEN DNALTOCS (PROFANITY FILTER INVOKED BY ´óÏó´«Ã½): I found it erudite, discursive and partisan to Scottish issues with a distinctly SNP slant. It seems to get somewhat less of the odd, the ranting and the off-topics (many moderated off the airwaves) that frequently dog ´óÏó´«Ã½'s online blogs.
    Thanks, DRAW FFOEG.

  • Comment number 20.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • Comment number 21.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • Comment number 22.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • Comment number 23.

    GeoffWard,
    I'm pretty sure it is "news" which is the profanity in the eyes of the ´óÏó´«Ã½, certainly when it comes to Iain Gray and Montenegro anyway.

  • Comment number 24.

    Where did Geoff go? Which rule is he supposed to have broken??

  • Comment number 25.

    #18 Sutara, afternoon, as someone who is aware of what one health board gets up to , I can tell you that those who actually visit patients in their own homes are facing less choices in how they get around.
    IF they get a lease car they pay tax twice for the use of it and get the grand some of 8p a mile for business use and of course 0p for personal use.
    the 8p a mile not having changed in decades whilst the cost of fuel has gone up and up.
    why senior managers and executives need lease cars when the tax system changed and it is no longer a perk is beyond me.
    yet another reason to get rid of as many of these layers of management and executives as can be sensibly removed. they are costing us a fortune and delivering not a lot.
    Sid



  • Comment number 26.

    I wonder if Jackie Bailey and the ´óÏó´«Ã½ will become exercised about this...

  • Comment number 27.

    Someone over on another site, most of us know the one, has worked out that of all the medium and large sized businesses with headquarters in Scotland only 2.3% are members of CBI Scotland.
    The federation of small businesses has a much larger membership and regularly sends out press releases but is generally ignored.

  • Comment number 28.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • Comment number 29.

    Dear colleagues,
    I have been mod-ed a few times for Profanity.
    The only word that I consistently use is 'Scottish'. How the ´óÏó´«Ã½ can consider this word profane beats me!
    Geoff.

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