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Nurturing Wealth Creation
Financial support
It is essential that appropriate financial support be provided to facilitate future investment in capital and people and to assist sales to export markets, if Scottish manufacturers are to compete successfully in an increasingly competitive global market.
Regional Selective Assistance (RSA)
Widespread perceptions that the Scottish Executive's main source of financial support, Regional Selective Assistance (RSA), is not meeting manufacturers' needs appear to be misplaced. Investigation demonstrates that, in Assisted Areas, RSA should meet most manufacturers' requirements. Indeed, some 80% of RSA expenditure has historically gone in support of manufacturing projects.
However, the fact that such perceptions persist amongst the manufacturing sector demonstrates that, to date, there has not been adequate communication of this policy.
There is also evidence to suggest that there are material inconsistencies and inadequacies in how the scheme is presented by local enterprise companies (LECs) and a lack of information on other sources of support funding should a company be ineligible for RSA. While we welcome the fact that some progress has been made, there is much to be done to improve communication with manufacturers.
Recommendation 1: |
The Scottish Executive should improve communication to manufacturers on the availability of Regional Selective Assistance (RSA) and other sources of investment support funding. This should include training of local enterprise companies' business advisers on RSA. |
Overseas marketing
Overseas markets remain enormously important for Scottish manufacturers and support for sustaining and enhancing export sales is necessary.
Market access programmes administered by Scottish Development International (SDI) are difficult to access and the process is not transparent.
It appears that too much emphasis is placed on 'priority' sectors and markets and new exporters. This creates barriers to funding for established exporters and limits the markets that can be visited.
At the UK level, the current ceiling on the number of times a company can receive assistance in any particular overseas market is excessively restrictive.
Recommendation 2: |
The Scottish Executive should improve access to support funding to aid export sales promotion and marketing. Consistent criteria to allocate support funding to both new and existing manufacturers for exporting to a wider range of markets is required. |
Recommendation 3: |
The UK Government should review existing regulations regarding Trade Partners UK's Trade Mission and Exhibition Schemes. |
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