Banking on sustainable future for all
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CAITHNESS has good opportunities for new jobs in the new Scottish economy.
This week I’ve been banking on a sustainable future for the country, in a manner of speaking. Firstly I spoke at the launch of an Edinburgh office of the ethical bank, Triodos. Secondly I spoke in the Holyrood debate on bringing the HQ of the Green Investment Bank (GIB) to Scotland.
When I was the economy, energy and tourism committee’s deputy convener in the last parliament I campaigned strongly for a successful GIB for the whole UK to be based in Scotland.
I argued that Scottish banking has its current problems but it has 300 years of skills behind it and what happens is you get a hub effect and that’s the reason why banks from America, asset managers and the kind of people who support asset managers, have moved branches into Scotland, even since the recession.
Scotland is at the cutting edge of renewable energy development and it’s important that there’s confidence to take that forward, but we have significant drawbacks at the moment because our parliament cannot borrow money nor can we yet get our hands on all of the fossil fuel levy, which is nearly £200 million. In the absence of these things we really are trying to make cutting-edge developments with one hand tied behind our back.
RBS says it has a good portfolio of energy investment but my understanding of that from presentations in the parliament just around the time of the financial crisis is that may be true in other countries but it’s not true in Scotland and, as is well known, includes damaging tar sand extraction in North America. The big banks have not backed our renewables revolution.
It is critical in the relationship between Scotland’s sustainable financial future, energy future and green future that investment must continue and must increase, and this is one of the areas which can be most successful in taking Scotland forward to create jobs and invest our way into profitable companies that pay taxes to help us get on our feet.
This week a Scottish Government debate underlined this crucial issue which has wide cross-party support.
That’s why I much welcome a diversity of banking opportunities. I’ve always believed that credit unions and local banks can work well. Triodos, set up in Holland and active in half a dozen European countries, is welcome in Scotland. Already of its UK accounts 12 per cent of loan book and 10.4 per cent of personal deposits are Scottish. So you can save and get a fair return and support ethical companies like Triodos which back clients in Caithness and all the way south.
HOW can Scotland pay to invest in renewables and other jobs in the new economy?
A major fact emerged this week that more than half of the value of North Sea oil and gas reserves is yet to be extracted – representing an asset with a potential wholesale value of a trillion pounds. Alex Salmond urged the UK chancellor to deliver long-term stability in the tax regime to support maximum recovery by the industry.
Mr Salmond welcomed the fact the UK Government is now working with the industry on options for reform of the tax regime, following the chancellor’s unexpected and damaging announcement in last year’s budget of a hike in the supplementary charge paid by North Sea operators.
Mr Salmond also said a new strategy, developed with the oil and gas sector, would be published in the spring – and outline how the Scottish Government and its agencies will continue to support the industry in priority areas such as maximising extraction rates, securing its future skills base and developing the supply chain in Scotland and further afield.
When he visited Scrabster recently, finance secretary John Swinney appreciated how important the Caithness port is to the area of exploration west of Shetland. I have no hesitation in recognising this opportunity, if carefully handled. The industry is a huge success story, and the key message is that there is still much more to come.
The public sector in Scotland will continue to support innovative companies to make their products a success, but for innovation to flourish we also need a stable investment environment. With more than half of the value of North Sea oil and gas reserves yet to be extracted, Scotland can well afford an independent and innovative economy.
THE Scottish Government support for the new Wick schools building project is most welcome. It should be welcomed by parents and the wider community.
I am mindful of the conditions education secretary Mike Russell has made to the Highland Council. I am particularly concerned to see the road safety plan is thoroughly developed along with parents. Also the school travel plan must fit the conditions in the royal burgh.
Let’s see a Caithness area committee set up as proposed by the SNP councillors. Then they should make travel plans fit for the area, not designed for a city like Inverness. The huge benefit of modern schools is a boon for the county in fit-for-purpose sustainable buildings that promote the development of confident young people.
I’m banking on the schools plan to produce a cheerful, well-educated stream of talent for the future of Wick and Caithness.
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