Manufacturing |
RECOMMENDATION | COMMENT |
46. Scottish companies can only succeed in the global market if there is competitive infrastructure on which a competitive culture can be built. A range of actions to achieve this are recommended including: | |
46.1 a level playing field across the UK for business rates and taxes; | See 42 and 51 |
46.2 specific actions to achieve a competitive skill base; | See 15 |
46.3 a review of the plethora of organisations which build links between business and schools; | A Ministerial Review of Education for Work was announced in September 2001. It will comment on the effectiveness of the organisations involved and report by summer 2002. |
46.4 simplification or reduction of regulation; | See 19 and 33 |
46.5 the implementation of a national benchmarking programme; | Attention has focused on measuring the distribution of productivity performance across Scottish manufacturing as a whole and within individual sectors. See 'Productivity in Scottish Manufacturing Plants', Scottish Economic Report, June 2001, pp. 69-73. |
46.6 sponsorship of a best practice sharing programme; | A number of best practice programmes such as the UK Benchmarking Index and Inside UK Enterprise already operate in Scotland. The number and scope of these is reviewed regularly to ensure the best overall approach. |
46.7 the creation of a competitive ethos in schools; | Schools can address the creation of a competitive ethos within the economy through areas of the curriculum such as Environmental Studies, Maths (financial education), Personal and Social Development/ Education.
Many enterprise education activities include a competitive element. |
46.8 the creation of a Parliamentary Committee on Competitiveness; | We would expect such matters to be covered by the Enterprise & Lifelong Learning Committee. |
46.9 the development of a multi-modal transport and access strategy extending for 25 years; | The A8, A80 and M74 Transport Corridor Studies are due to report this summer (2002). These will contain proposals for transport improvements over 5-, 10- and 20-year horizons. |
46.10 the creation of a national e-commerce strategy. | E-business plays a crucial role in the vision set out by the Executive in A Smart, Successful Scotland. Both Scottish Enterprise and Highlands and Islands Enterprise have developed e-business strategies in response to this policy direction, including targets for the measurement of progress towards this vision. |
47. There is a need for manufacturing's contribution to wealth creation and value added to be better understood. A number of ideas are suggested including: | |
47.1 the abolition of student fees for university courses in science and engineering; | Tuition fee contributions have been removed from all eligible Scottish full-time students in Scotland from 2000-1. |
47.2 put in place a programme to make manufacturing better understood in the civil service; | The Executive is keen to encourage interchange activity with all sectors of society including the manufacturing sector. We will be issuing the 'Scottish Executive Interchange Guide' shortly. This will outline the Executive's commitment to interchange, identify the priority areas, encourage staff to seek opportunities with linked organisations and provide guidance on terms and conditions. Interchange in the past has largely been achieved through long-term secondments. A much broader menu of both outward and inward interchange opportunities is encouraged in the Guide including attachments, twinning, shadowing, mentoring, non-executive opportunities, joint training and contact/ discussion groups. |
47.3 bias SHEFC funding to engineering and science; | A large proportion of SHEFC's teaching & research funding is already devoted to supporting science. The Science Strategy for Scotland, published in August 2001, establishes a new Science Advisory Committee, which will be asked to advise the Executive in science priorities. |
47.4 provide resources to schools and/or industry to improve mutual understanding, and to improve the image of manufacturing; | Through the work of the Manufacturing Image Group, a campaign called 'Make it in Scotland' has been developed to raise the awareness of manufacturing amongst S2 pupils. Delivery is through a series of Roadshows, involving hands-on activities and information sessions with an extended pilot in academic year 2001/2 and a full national rollout in 2002/3. |
47.5 the Parliament to lead a national focus on the role and importance of wealth creation, value added and manufacturing and tradeable services to living standards in Scotland; and | The Executive's approach to economic development has been set out in 'Framework for Economic Development in Scotland' (June 2000), and, in relation to the Enterprise Network, in A Smart, Successful Scotland (January 2001). These set out the Executive's strategy for establishing the conditions for long-term, sustainable economic development and a competitive knowledge-based economy. A report on progress within the key priority areas of the Framework is published twice-yearly in the Scottish Economic Report.
The two 'Programme for Government' publications set out the main commitments and priorities for this Parliament. The commitments cut across all ministerial portfolios but there are a number dealing specifically with wealth creation, value added and manufacturing. |
47.6 encourage the development of a media platform for manufacturing, showing short exemplars of manufacturing success. | See 47.4 |
48. There is a need to create an environment where risk taking is encouraged. A number of actions are suggested: | |
48.1 tidy up legal anomalies such as ability to provide security on floating assets; | In November 1999, the Executive commissioned a report on business finance and security over moveable property. This is currently being prepared for publication. |
48.2 consider how to facilitate the ability to provide security on opportunity rather than assets; | See 48.1 |
48.3 encourage entrepreneurs who have experienced genuine failure to get back into risk taking; | Recognise the need to reduce the stigma of bankruptcy and encourage new business start-ups. DTI's proposed changes to the UK's corporate insolvency provisions, which are largely reserved, were included in the White Paper, Insolvency - A Second Chance, and will be legislated for at Westminster. The Scottish Parliament will be asked to consent to Westminster legislating on the limited aspects that are devolved. We will study the extension of the proposed provisions on personal bankruptcy as this is an almost wholly-devolved matter. Legislation to modernise the law in this area would be for the Scottish Parliament to take forward. |
48.4 provide support to new ventures in creating web sites and accessing world markets; | UK online for business is a DTI-led initiative launched in September 2000 to provide proactive advice and support for businesses to help them exploit the potential of new technologies, including advice on the creation of web sites and selling to overseas markets. In Scotland, the initiative is delivered through the Enterprise Networks, together with more locally tailored e-business initiatives including workshops, awareness-raising events and one-to-one consultancy advice. |
48.5 review how research is commercialised: commercialisation should be built around risk takers and those with business leadership; | Technology Ventures Scotland and the Scottish Institute for Enterprise have both been set up to enhance the interaction between business and the science base in the field of commercialisation. |
48.6 exploit the existing manufacturing base to move up the value chain and increase value added; | See 50 |
48.7 there is a need for a range of incentives to support risk taking. | In addition to the above initiatives Scottish Enterprise's Business Birthrate strategy (BBRS) has helped to encourage a culture of enterprise and responsible risk taking. Following the independent review of the BBRS, Scottish Enterprise has developed the New Approach to Entrepreneurship strategy announced on 23 January 2002. Building on lessons learned from the review, a number of key programmes to generate and support entrepreneurial dynamism are being introduced. Additionally, intend to establish a 20 million Fund of Funds and investor readiness programme to help more firms break through existing investment barriers and achieve their true growth potential. |
49. There is a need to realign incentives towards adding value and creating wealth rather than simply in creating employment. A range of new and realigned incentives is proposed. | See 50 |
50. There is a need to construct a manufacturing strategy for Scotland. The strategy should address issues such as practical research, product deployment, skill development, basic skills, focused incentives, Scottish brand image and competitiveness targets and measurements. | In March 2000, Henry McLeish, as Minister for Enterprise and Lifelong Learning, launched Created in Scotland, the Way Forward for Scottish Manufacturing in the 21st Century. The document was drawn up in close consultation with the
Scottish Manufacturing Steering Group, involving manufacturers, business organisations, trade unions and representatives from the higher education sector.
Created in Scotland highlights a range of initiatives that are required for manufacturing to play its full role in the knowledge driven economy. Created in Scotland lists 38 initiatives at Scottish level and 14 at the UK level, covering: business environment; knowledge and technology; science base and its commercialisation; skills and people; and images and attitudes. Good progress has already been made across the full range of 52 initiatives. |