The publication of more than 240 responses to the Scottish Government's consultation on the establishment of a South of Scotland Enterprise Agency (SOSEA) has thrown up a complex range of issues which must be addressed if the region's failing economy is to be turned around.
It is clear SOSEA will not be short of ideas and proposals when it gets down to business in 2020 with the aim of achieving similar results to those chalked up at the other end of Scotland by Highlands & Islands Enterprise (HIE). No doubt HIE will be a hard act to follow.
But a number of the written submissions refer to an "Aye Been" attitude which may have stifled economic prosperity in the Scottish Borders and Dumfries & Galloway by resisting change in the past. Now there are calls for a radical approach following the comparative failure of conventional methods of promoting business expansion, inward investment and tourism.
The scene is set in a submission on behalf of Scottish Borders Council by its chief economic development officer Bryan McGrath.
He points out that the territory to be covered by SOSEA makes up one seventh of Scotland’s total land area with 24 people per square kilometre, the most sparsely populated area outside of the Highlands & Islands; low wealth creation (Gross Value Added (GVA) per head in the South of Scotland is £19,793 equating to 79.5% of the national average (£24,876 for Scotland}; low average weekly wages – the median weekly wage for all workers in the South of Scotland is roughly £467 (£467.8 in SB and £466.5 in D&G – 29th and 30th respectively amongst the 32 local authorities across Scotland). This is significantly below the national average of £547.30.; out-migration of young people and shrinking workforce - in 2017 the proportion of people of working age 16-64 was 58% in the South of Scotland compared to 64% for Scotland.
Another of the issues pinpointed by Mr McGrath is low Gross Value Added – GVA per worker in the South of Scotland is 20% below the Scottish average, demonstrating that there is a significant productivity gap in the region. A key objective should be to close this productivity gap to the national average. Adding 20% on to the GVA would contribute over £750 million a year to the South’s economy.
Then there is the small matter of low investment in Research & Development – in the South of Scotland, business investment per head is £50, while the national average is almost four times higher at £198.
According to Mr McGrath: "We must be willing to take a long-term view of what we are trying to achieve in the South of Scotland and what it will take in resources and collective effort to deliver it. A particular priority could be supporting the regeneration of the more economically fragile towns and town centres, and rural communities."
He adds: "Critically, the Agency will need to break the cycle which sees an outflow of well-educated young people from the South of Scotland, leaving the area light on the skilled workforce which would attract more specialised higher paying businesses."
There are a number of interesting suggestions from HIE which produced a detailed report setting out its views and offering its support for the fledgling SOSEA.
Like Mr McGrath, HIE warns: " It takes considerable time to turn around an under performing economy and the new agency must be able and empowered to take a long-term view. We would support a focus on inclusive growth and therefore suggest that an appropriate aim may be to reduce the economic disparity between the South and the rest of Scotland, while contributing strongly to Scotland’s economic prosperity."
The HIE submission says: "Our ambition for the South of Scotland is very much based on our experience in the Highlands and Islands. When HIE’s forerunner was established in 1965, it was as an innovative model to halt and reverse enormous economic disadvantage that was then affecting all parts of the Highlands and Islands.
"Fifty years on, the region is a very difference place. Population has grown by 23% (compared to 3% across Scotland over the same period) - reflecting the growing attractiveness of the region as a place to live, work, study and invest. The business base has been broadened from traditional industries to encompass life sciences, creative industries, energy, universities, and business services, while food and drink, and tourism remain strong contributors. Similar diversification is required in the South of Scotland."
A number of commentators have claimed the new Agency will fail in its objective unless it has a similar sized multi-million pounds budget to that enjoyed by HIE. And that appears to be borne out by HIE itself.
The Highlands submission explains:"Over the years, HIE has taken a number of bold and ambitious decisions to provide catalysts to the region’s development. Examples include: The University of the Highlands and Islands; the development of the European Marine Energy Centre (EMEC) in Orkney - the world’s first grid connected wave and tidal test centre; the successful inward investment of Inverness Medical (now LifeScan Scotland, part of Johnson & Johnson) – the catalyst for a regional life sciences sector and the development of Inverness Campus.
"Similar bold and large-scale investments such as these need to be an ongoing feature of the South of Scotland’s economic development. This is an exciting opportunity for the South of Scotland and HIE would be happy to continue to support, not only the development phase, but the initial delivery years of the Agency as these will be crucial to its success.
"HIE and the South of Scotland have many common challenges and opportunities, i.e. similar focus on sectors with most growth opportunities. Ongoing collaboration should be mutually beneficial in addressing these and contributing to national growth."
One of the most contentious issues for those involved in setting up SOSEA is likely to be the location for the Agency's HQ. Some of those who sent in their views claimed a headquarters in the Borders or Dumfries & Galloway (depending where they lived) would be disastrous for the other half of southern Scotland.
And one anonymous respondent put it this way: "Share resources to keep the civil service spend to a minimum;what we don’t need is another publicly funded office of 200 well paid pencil pushers in Dumfries or Galashiels."
NEXT: THE TIMBER INDUSTRY AND THE ROADS NETWORK
No comments:
Post a Comment