Listen
Council of Economic Advisers
13/06/2008
The third meeting of The Council of Economic Advisers (CEA) today considered the next steps Scotland must take to raise the nation's rate of sustainable economic growth.
Recognising the difference in economic conditions since the group first met in September 2007, the CEA discussed a wide range of issues in relation to the economy and climate change.
First Minister Alex Salmond, Cabinet Secretary for Finance and Sustainable Growth John Swinney, and Cabinet Secretary for Education and Lifelong Learning Fiona Hyslop joined the CEA at the University of Glasgow.
Chairman Sir George Mathewson said:
"Today has seen a very productive and informed discussion and I believe we have made some good progress.
"Our discussion was centred on a series of policy initiatives, which have, as the overarching proposition, the need to create a narrative of economic success and a joined up approach to promoting our country at home and abroad. At its most basic, we must make clear that Scotland is back in business.
"The effective promotion of Scotland internationally is crucial if we are going to deliver higher levels of economic growth in the short term and for the future.
"In this regard we were told about the Scottish Government's determination to use Homecoming 2009 as a vehicle to attract new visitors and present Scotland as an ideal location for investment. It is important that wider Scottish society - our universities and businesses - participate fully in this initiative.
"The strategy set out by the government also includes proposals to pursue population growth, develop a more supportive business environment, including planning, and target growth in key sectors. The challenge now is to put this approach into action.
"With this in mind, we welcome the fact that Ministers have paid attention to the recommendations made by the CEA in terms of changing the culture of the planning system and also looking at ways of incentivising sustainable local development.
"Following a report from Cabinet Secretary for Education, Fiona Hyslop, there was a wide-ranging discussion on skills, productivity and the role of our universities. It is clear that education is a key investment for our nation and we also have to find ways of ensuring that it is seen as a personal investment for our students.
"There must be real collaboration between government, the universities and business to maximise productivity.
"We closed our discussion by examining how the growth and emissions targets fitted together and welcomed the fact that the Scottish Government was looking at the interaction of these two, sometimes competing, issues.
"We have recommended to the First Minister today that he commissions an immediate independent assessment of the cost of various energy options. And because of the importance of energy saving in this equation that he explores, with the energy companies and banks, options for reducing the up-front capital cost of energy efficiency measures, perhaps through systems that allow consumers to pay back the capital costs over a number of years."
The First Minister said:
"The meeting today was highly productive. I am extremely grateful for the advice of the Council both today and on an ongoing basis as we seek to realise the potential for Scotland's economic success.
"We have outlined our aim of raising the GDP growth rate to UK level by 2011 while restraining our carbon emissions. This point is critical to the strategic purpose of the CEA."
In addition the CEA agreed to publish its first annual report before the end of the year.