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Reputational repair for Scottish finance

Douglas Fraser | 16:29 UK time, Monday, 1 June 2009

A task force on finance sector jobs - that's the highly original, main response from the Financial Sector Advisory Board, according to its annual report.

The idea is to retain the maximum number of jobs possible, as well as retaining high-level skills in Scotland.

Quite how it does that is less clear. While FiSAB's report, published today, can point to numerous attempts to improve financial education, its response to the financial sector's crisis is long on vagueness and short on specifics.

The changes being considered include: "reconsidering education, skills and financial capability priorities" and "ensuring an appropriate regulatory response so that Scotland offers a business-friendly location".

There's also a pledge to "reposition and re-emphasise communications activity", presenting "a holistic view of the overall participation across civic and business society of the financial services industry in Scotland".

There's an admission that the sector needs to get out and sell Scotland the financial brand - to outside investors, savers, and to the people of Scotland.

There's to be an emphasis on how much finance is about the mainstream economy, and not just fat cats with humungous bonuses.

That includes a stress on attracting people into working within finance, at a time when it may seem a tad unattractive.

When asked about reputational damage to Scotland the Canny Brand, the answer usually comes back that others are too busy handling their own end of the financial crisis to think of Scotland as uniquely harmed.

But John Campbell, chairman of Scottish Financial Enterprise, recently told a gathering of financiers and government figures at the Scotland Office in London that that's no reason to be complacent.

"SFE intends to put a lot of energy in the year ahead into refuting negative claims, and explaining the industry in Scotland, and its diversity," he said.

    It's been a good weekend for interesting and random statistics about the state of the economy. Here's my selection:
    * Retail footfall is down 2.4% between last month and May last year, with the Scottish figure down 3.3%. Worst affected was Wales and south-west England down 8%.
    According to Experian, the research company that compiled the figures, the nature of footfall is changing, as shoppers become less spontaneous about purchasing, and more given to savvy, informed decisions, checking out products, sometimes to go home and buy them more cheaply online. It's what they like to call "a culture of considered thrift".
    * The Bank of Scotland's retail price index reckons Scottish prices dropped by 0.7% between the start of last year and the first quarter of this one. The year before, prices rose 5.4%. As the recession kicked in, London faced the sharpest drop across the UK, at 2.8%. This was driven by the fall in mortgage payments, down by more than a third, while clothing and footwear prices fell 6.3%. Food and non-alcoholic drinks were up 10%. Oddly, Bank of Scotland reported a 4% rise in Scottish council tax, during a year when bills were frozen.
    * Inflation over the past 10 years in Scotland has seen mortgage payments rise 27% on average, while clothing and footwear is 26% down, communications 13% lower, fuel and power is up 73%, food is up 30%, and restaurants 38%.
    * The latest UK manufacturing purchasing managers' index is out today. It's still contracting but at its highest point for a year. Production and new orders continued to fall, but at the slowest rate for 14 months. Capital goods producers - machinery, for instance - "vastly under-performed" other sectors, and job shedding remained "rapid", driven by cost-cutting.
    * The really important economic issue of our times is the cost of attending a wedding. Halifax has generously researched the issue, and found that the average guest spends £458 on travel, hotels, new clothes, drinks, gifts etc.
    Stag/hen nights are also included in that, costing an average £92. And if it's overseas, the £258 average cost puts the total up to £648.
    For the big day, men spend more than women on new threads for the big day - £123 to £106.
    And, less surprisingly, a big majority agree that the bride and groom should consider the cost to their guests before requiring that everyone flies to Antigua.

Comments

  • Comment number 1.

    Why does Scottish Financial Enterprise still exist? It's members are pretty much isolated from the real economy and are a self serving unpatriotic collection of misfits that have summarily failed to grow the Scottish economy.

    They should be ashamed of themselves.

  • Comment number 2.

    The G20 thought that the worldwide financial collapse was largely the result of loose regulation.

    Almost half the world's wealth was destroyed. And the cost to every British taxpayer is reckoned at nearly £5,000.

    Holyrood could surely take the initiative here and investigate what prevents the public's financial watchdogs from barking. Maybe the political process insisted on 'light touch' regulation. The Fraser and Crerar official inquiries certainly hinted at this.

    A thorough inquiry might have wide lessons and help to restore Scotland's reputation in finance.

  • Comment number 3.

    The Financial Sector Advisory Board has been an abject failure.

    It should be wound up forthwith

  • Comment number 4.

    nice information have been mention here..Thanks for the information
    Barbara

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