Media Briefings - Sep 25, 2001
The First Minister's Press Secretary (FMPS) opened by
saying that Cabinet met earlier than usual because the
First Minister and Enterprise Minister Wendy Alexander were
departing for Finland to examine its handing of digital
technology.
The FM had just met with Patricia Hewitt, the UK
Government's Trade and Industry Secretary, and Secretary of
State for Scotland Helen Liddell to discuss a number of
issues. It was a constructive meeting and the FM had
explained there was a study going on looking at likely
consequences on the Scottish economy of the current world
situation.
The FMPS pointed out that Patricia Hewitt was in the
north of Scotland looking at oil developments which is a
positive for the Scottish economy. However there was no
complacency and that is why there was a need to exchange
information. The next stage will be for the Executive's
Chief Economist Dr Andrew Goudie to report to the FM in a
couple of weeks on what will be the likely consequences for
Scotland and it will be taken forward from there.
Asked what sectors Dr Goudie will look at, the FMPS said
it would look across all sectors of the economy in general,
including tourism. Asked when it was started, the FMPS said
last week. Asked about the team compiling it, the FMPS said
the idea was to draw up a picture of what the likely
consequences for the Scottish economy. Asked if there were
early indications of what these might be, the FMPS said, as
he had already said on behalf of the FM, that the basics of
the economy remained sound. Jobs were still being created
whether it be oil jobs in Aberdeen or, in other contexts,
jobs announced today and yesterday by various supermarket
chains. Asked if there were signs of any negative, the FMPS
said the the FM had always said that if Scotland wants to
be a global player in the economy and it was impossible to
be immune to the tides that flow across the global economy.
He pointed to the FM's own constituency and the case of a
company who postponed plans for a major project but didn't
cancel it.
Asked since Americans represent such a large part of
tourism market were there any specific plans to alleviate
the problem, the FMPS said the Executive had put in a large
sum of money to visitScotland, £37.5m this year, a 95%
increase and that was partly previously in response to Foot
and Mouth Disease. visitScotland was in charge of the
strategy and had redirected some of its marketing towards
the UK and Europe. The FMPS also said that if Americans
were not travelling it is going to have an effect and it
was important to be open about that. But he stressed that
visitScotland with the support of the Executive was doing
its utmost to attract tourists to Scotland from the UK and
Europe.
Asked about anxiety about inward investment levels, the
FMPS said it was a matter of waiting and seeing whether
there were further consequences for Scotland. But he said
it was important to point out that even today in an
industry like oil Patricia Hewitt was announcing something
new which involved jobs and the basics of the economy are
still sound.
Asked whether it was discussed if the Executive might
dip into its £700m budget underspend as compensation for
tourism, the FMPS repeated the first thing to do was to get
the economic report and then consult on its results.
Asked if there were to be regular meetings between
Executive Ministers and Patricia Hewitt, the FMPS said they
would like to meet regularly to discuss a range of issues.
He stressed they would be keeping in close touch.
Asked was the underspend discussed at Cabinet, the FMPS
replied no. Asked what was discussed, he said matters of
interest and concern. Asked about the Care Development
Group and the potential £20m contribution from UK
Department of Work and Pensions, the FPS said discussions
were continuing.
Asked about Motorola, the FMPS said £2m had already been
committed and the projected commitment was up to £5m. All
money had to be spent in line with best value criteria. He
referred queries on figures to Scottish Enterprise.
FMPS: Peter MacMahon
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