Where's the local economic support?
Viewed from Inverness, the north-south divide doesn't look good for Glasgow.
Economic consultant Tony Mackay spends much of his time in the Highland capital. From that vantage point, he's taken a close look at Clydeside's economic performance in his latest bulletin, and doesn't much rate what he sees.
Whereas the data shows Glasgow had a growth rate significantly ahead of the Scottish average five years ago, that lead has been wiped out.
The city's unemployment rate has risen at a much faster rate than the Scottish average (allowing for question marks over the sampling size): over the past year, it's been up 8.5%, while the Scottish figure is up 2.3%.
"These are very depressing statistics," says Mackay, before he goes on to dwell on de-population.
And there's a swipe at the public sector, not only for being so dominant (it's more important to Glasgow than to Edinburgh, the government centre) but also for the city council and Scottish Enterprise "glossing over" the city's problems, while simultaneously "sticking their heads in the sand".
There's a claim of a lack of reality and objectivity in these public sector bodies. And criticism that the private sector job creation has been in low value added call centre and retail jobs.
Uist headquarters
This chimes with question marks hanging over public sector support for economic regeneration. Holyrood's economy committee is returning this morning to its inquiry into the future of Scottish Enterprise and Highlands and Islands Enterprise, and the role of councils using their economic powers.
In submissions so far, public agencies and councils claim to be working well together. They would, wouldn't they?
There's more unhappiness about the dominance of Inverness in the mindset of Highlands and Islands Enterprise, particularly from the Western Isles.
Comhairle nan Eilean Siar, the islands council, wants to take over the HIE powers. Or if it's to remain in control, the council says it should relocate its headquarters to South Uist - an area in most need of economic support. Orkney is unimpressed by the alleged Moray Firth bias as well.
Meanwhile, Glasgow is staking its claim to take on more economic powers. As the largest local authority in population and spend, it reckons it has what it takes to make its own economic future.
Tony Mackay would seem to disagree. And in a telling contribution from the Scottish Local Authorities Economic Development Group (SLAED), including the officials who have taken on the local regeneration role from local enterprise companies, changes in role over the past three years have been woefully underfunded.
"It is clear that there has been a reduction in local regeneration activities across Scotland since the abolition of the LECs," it says.
In 2009-10, that meant a transfer of a paltry 拢3.9m - "significantly less than the LECs were able to invest in this activity prior to their abolition".
Challenging relations
The local authorities see Scottish Enterprise as failing to keep a pipeline of projects flowing, even on national projects.
"It is clear that fewer new projects have been instigated than might have been in the past, while other projects have stalled or have since been considered lower priority, as the available budget for both Scottish Enterprise and the local authorities has been constrained for such regeneration activities," says SLAED.
A similar charge is levelled at Skills Development Scotland. It took on Scottish Enterprise's training role in the same programme of reforms announced in 2007. But councils say it's far from easy to work with SDS - the euphemism is "challenging" - and resources have been squeezed.
Joint working is based on what's gone before - not on new ways of working and new proposals, it is claimed.
Some of the shortcomings of the new training regime have been addressed in the new strategy set out this week by the Scottish government. It recognises that too much training is being done without being allied to what employers actually need.
And all this while Scottish Enterprise/the Scottish Government fail to find a new boss for their joint overseas promotions division, Scottish Development International.
The failure to find a suitable candidate earlier this year, before re-advertising, doesn't fill you full of confidence for the current team in charge.
That adds up to a lot of "challenges" around the public sector's economic development support for the private sector. It's at a time when both sectors have plenty more challenges in the pipeline.
Comment number 1.
At 6th Oct 2010, spagan wrote:Perhaps Douglas, you should dig out your copy of the UK government-commissioned - and now infamous "McCrone Report".
Its conclusions and advice to Westminster were astonishing:
鈥淭his paper has shown that the advent of North Sea oil has completely overturned the traditional argument against Scottish nationalism. An independent Scotland could expect to have massive surpluses both on its budget and on its balance of payments and with the proper husbanding of resources this situation could last for a very long time into the future.鈥
As you well know Douglas, the McCrone report wasn鈥檛 published until recently (but you can google it online).
Its suppression is damning evidence that the Scottish unionist parties have been complicit in the betrayal of the people of Scotland for 30 years. A sure sign of where New Labour and Old Tories and LibDumb loyalties don鈥檛 lie.
McCrone also concluded that the income from oil meant Britain had to seriously attend to the matter of poverty in Scotland, especially on the West central belt or else it might well face a constitutional crisis:
鈥淚f, in five years鈥 time North Sea oil is contributing massively to the UK budget, while the economic and social condition of West central Scotland continues in the poor state that it is today, it would be hard to imagine conditions more favourable to the growth in support of the nationalist movement. Very determined steps to urgently transform economic conditions in Scotland will therefore be necessary and the Scottish people will have to be persuaded that their problems really have received the attention and expenditure they deserve if this outcome is to be avoided.鈥
30 wasted years Douglas!
Just think. If you had unearthed this document at the time and highlighted the UK Government's intention to suppress it.
Or even if belatedly, you had given publicity to it when it was eventually and reluctantly released.
The West Central Belt of Scotland needs to start puting itself first - instead of lying down prostrate - voting for a Labour apaologist - and keeping the 成人快手 Counties in the style that they can only dream of.
Slainte Mhor
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Comment number 2.
At 6th Oct 2010, spagan wrote:Douglas
Justed wanted to make sure that any folk browsing know that I extracted the above - with very little adaptation - from the first of 3 articles written by Alex Porter. I'm sure that if anyone googles "alex porter" and "rags to riches" they'll find the series.
I think it is worthy of a much wider audience - and I would provide the link - but apparently 成人快手 Scotland have censored any pro-SNP site?
Curious times.
Slainte Mhor
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Comment number 3.
At 7th Oct 2010, Doug wrote:I am not in the business of defending Glasgow City Council and its ruthless Glasgow Herald PR machine but this one man band from Inverness sounds like a wishful thinker. I do not think his work would stand up to serious scrutiny. I do not rule out the possibility that Glasgow City Council are pleased with it in order to accrue more public funds. It is also pointless to consider Glasgow City as a single labour market and economic area due to its massive suburbs outwith the local authority boundary.
He also failed to consult the GROS (if Mr. Fraser is correct) population estimates which shows a growing population, and there is possibility that immigrants arriving in Glasgow are unemployed.
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