SECTION 1 GROWING THE ECONOMY
Introduction
This section reports on the Executive's achievements in the areas of Enterprise, Lifelong Learning, Transport and Rural Development.
In 2003 we stated that growing the economy was our top priority. Since then we have seen a period of continuous economic growth. Working with the UK Government has helped us to ensure economic stability. Employment stands at record levels, and we are now nearer to full employment than almost anyone else in Europe. Our vision was for a Scotland where enterprise can flourish, and we have taken steps like freezing and cutting business rates to enable this to happen.
We were also committed to achieving this growth in a sustainable manner. Throughout this programme for government we have identified those commitments which have a specific 'Green Thread', marked with the tree symbol, as they were in the original Partnership Agreement document. We launched our sustainable development strategy, Choosing Our Future, in December 2005. The strategy recognises that individuals, businesses, local authorities and communities need to take action to change the way we use resources, plan and develop services, and seize the economic opportunities that sustainable development presents. Working towards a sustainable future for Scotland means delivering social and environmental justice as well as economic progress.
Our reforms to the planning system, taken forward by the Planning etc, (Scotland) Act 2006, will place duties to contribute to sustainable development on Ministers and planning authorities in relation to the National Planning Framework and development plans. The National Planning Framework will identify and prioritise developments of national importance.
We are investing £3 billion in transport, with most of this spent on improving our public transport. We are building railways, reopening stations and seeing increases in the number of bus passengers. This is backed by delivering specific road projects which will keep Scotland's businesses moving, for example by working towards completing the central Scotland motorway network.
We are working to secure a sustainable future for our rural communities. We have invested in transport links through the Air Discount Scheme and the Rural Transport Initiative. We have continued to support rural development, especially agriculture and fisheries, and have represented Scotland's interests at the EU, attending more than 80 Council of Ministers meetings since 1999.
Headline achievements:
- Strong economic growth since May 2003
- Implementing Green Jobs Strategy - aiming to make Scotland the renewable energy powerhouse of Europe. Solid progress on target to increase the proportion of electricity generated from renewable sources to 40% by 2020
- Largest ever investment in public transport, with growing numbers of Scotland's people using buses and trains
- Improving Scotland's transport links
- Developing rural Scotland to ensure that all communities benefit from our continuing economic growth
Making a difference:
Helping businesses develop new ideas, grow and flourish through the pipeline of support: Lightweight Medical
Lightweight Medical, a young company located in Govan, was formed in May 2003. From an initial shoestring budget, a major catalyst for growth was the receipt of a grant from the Executive under the SPUR scheme in May 2004. This allowed the company to expand and finalise the development of their first product, a neo-natal transport incubator, used to move critically ill babies between hospitals. The incubator has recently been launched to rave reviews from clinicians - giving them an urgently required safe transport environment to move babies.
In May 2006 Lightweight Medical received a SMART award to continue to expand the company and develop another world class neo-natal product, which will make a huge difference, not only to the survival chances of newborn babies, but also their future quality of life.
The support available through the SMART and SPUR schemes is a perfect match for Lightweight Medical's innovative and ambitious business model - developing and commercialising products which advance patient care by meeting urgent clinical needs. Without the support of SMART and SPUR, some high technical risk but high value products simply could not happen.
Lightweight Medical believe that public support is the only way to help get these great ideas off the ground and for the companies developing them to flourish. The 'pipeline of support' available has meant that after only three years they now have offices in Glasgow and London and are looking continually for ways to expand. Their achievements were recently recognised when they won the 'Creative Entrepreneur of the Year' Award for 2006.
'Our growth and success is thanks to the vital support we receive from the Scottish Executive. Looking to the future, we hope to increase our portfolio of products with the ongoing support of the Executive, to deliver together highly innovative and successful medical devices for the benefit of the whole Scottish economy. We are generating wealth by creating sustainable high value jobs with our high growth business model. This 'partnership' between innovating and energetic companies and the Scottish Executive is fantastic.'
Neil Farish, Director, Lightweight Medical
Enterprise and Lifelong Learning
Introduction
Making a difference:
In 2003 we said that we would act to raise the long term sustainable growth rate.
We have invested in further and higher education, providing almost £400 million extra for learning and teaching and £275 million extra to build facilities. Companies chose to locate and stay in Scotland because of the strength and depth of skills in our workforce, so we need to continue to invest in lifelong learning at all stages in life. We now have a record proportion of graduates in the workforce and more graduates than ever are staying in Scotland after completing their degrees.
We identified the issue of young people who are not in education, employment and training. This is an area where we have not done well enough compared to our competitors, so we have launched a strategy to tackle the problem. More Choices, More Chances focuses action particularly on deprived areas where this problem is most acute, working with schools, and getting other organisations in those areas to work together to help young people into training or work.
We have promoted Scotland as a good place to live and work, with a high quality of life. We continue to attract high quality jobs to Scotland through our enterprise bodies like Scottish Development International. And through the Fresh Talent initiative we have seen students and other talented workers from over 150 countries make Scotland their home. We have also seen large increases in the number of foreign tourists visiting Scotland, with numbers up 50% since 2001, leading to a 10-year high in hotel occupancy rates and increased visits to attractions.
Scotland is a science nation. We are seeing growth in sectors of the economy like life sciences, building on a tradition of funding research in the agricultural and biological sector. However, we have needed to build on our historically low levels of investment in business research and development. We have continued to develop a 'pipeline of support' to encourage investment in research and the development of new products. We have invested in innovative support opportunities like the Intermediary Technology Institutes. Over 10 years, £450 million is available to raise levels of corporate research and development in three of Scotland's industry sectors: Life Sciences, Energy, and Techmedia.
Headline achievements:
- Employment levels are around their historic best, at over 75%, with 180,000 more Scots in employment since the creation of the Scottish Parliament
- More training opportunities for young people, including 34,000 Modern Apprenticeship scheme places
- All communities in Scotland now have access to broadband services and we are amongst the top countries in the world for broadband coverage
- 91% of Scottish graduates entered employment in Scotland on completion of their degrees in 2004-05, compared with 82% in 1999
- Fresh Talent initiative has allowed us to welcome more than 3,000 students to stay in Scotland following completion of their studies, and has targeted talented migrants from around the world
- Every Scottish school is now delivering Enterprise Education with over 7,000 school/ business partnerships
- Nearly 2.4 million overseas visitors came to Scotland in 2005, spending more than £1.2 billion
Case study:
European Marine Energy Centre, Orkney
Meeting the target of generating 40% of Scotland's electricity from renewable sources by 2020 is a challenging ambition that requires development of and investment in new forms of renewables. Scotland is fortunate enough to have a climate well suited for renewables generation. We are one of the windiest countries in Europe and have a huge wave and tidal resource. The Forum for Renewable Energy Development in Scotland estimated that the marine energy sector could provide 7,000 jobs for the economy by 2020.
The European Marine Energy Centre ( EMEC) in Orkney was established in 2003 at an overall cost of £5.65 million, with the Executive investing £3 million. EMEC is leading the world in developing new marine renewable technology. In 2005, EMEC became the first centre in the world to gain United Kingdom Accreditation Service ( UKAS) ratification, and in 2006 it expanded to open a new tidal energy test centre.
EMEC's role is to provide facilities which will allow pre-commercial wave and tidal devices to develop to a position of mass-market readiness. It has already helped to pioneer Ocean Power Delivery's Pelamis device; with more devices expected to test at EMEC within the coming months.
'I firmly believe that Scotland has the potential to be the renewables powerhouse of Europe and a world leader in wave and tidal energy. Our conditions make marine energy potential particularly high in Scotland. It is vital that we do all we can to harness the vast wave and tidal opportunities as soon as possible.'
Nicol Stephen, Deputy First Minister
Transport
Introduction
Making a difference:
In 2003 we said that we would invest in Scotland's transport system to put in place an integrated system that aims to connect the whole country and to be connected to the rest of the world.
Since then there have been significant increases in overall resources for transport with 70% of our investment targeted on public transport.
We are investing in rail with new stations, new carriages, new routes and more safety measures at stations. Working with our local delivery partners, we have constructed the Larkhall-Milngavie line, are building the Kincardine-Alloa-Stirling rail link, and are supporting the redevelopment of the Borders Rail Line and the Airdrie-Bathgate railway. Plans are moving ahead to deliver the Glasgow and Edinburgh Airport rail links, and the redevelopment of Waverley station in Edinburgh is underway.
We have radically changed the way that our transport needs will be determined in the future through the creation of Transport Scotland and the publication of the National Transport Strategy. The National Transport Strategy was published in December 2006 and sets out our visions, priorities and plans for transport for the next 20 years. This is based around three key strategic outcomes of improving journey times and connections, reducing emissions and improving quality, affordability and accessibility.
We have been developing our global air links. The Air Route Development Fund has seen huge growth in the number of direct scheduled flights from Scotland to the rest of Europe and the world. For example, the Fund is assisting the provision of direct flights from Scotland to Berlin, Warsaw, Dubai and the USA.
We have removed tolls from the Erskine and Skye Bridges.
Our efforts to promote sustainable transport are starting to have an impact. Rail and bus passenger numbers continue to rise. In the case of rail there was an increase of 9% in 2005 and there have been increases in bus passenger numbers in six of the last seven years. Investment in cycling and walking has increased, including £8 million to expand the National Cycle Network and £5 million to reduce the environmental impact of the school run, improve road safety and increase active travel by children.
We have been working to make our roads safer. Investment to reduce casualties has led to the lowest rate of road accidents since the 1950s. We have also been providing a national framework for safe walking to school, through the development of the safer routes to school programme. We have now introduced 20 mph speed limits around most schools.
Headline achievements:
- Introduction of Scotland-wide free bus travel for older people and those with a disability
- Removal of the tolls on the Skye and Erskine bridges
- 25 million miles of freight per year has been taken off the roads through the Executive's investment in Freight Facilities Grants
- Improved air connections through the Air Route Development Fund - 35 new scheduled routes (including 27 new international routes) are continuing to operate as a result of intervention by the Fund
- Connecting remote communities in Western Isles, Orkney, Shetland, Islay and Jura, Caithness and North-West Sutherland through the Air Discount Scheme. The scheme offers a 40% discount on core air fares and has 99% membership in its first seven months of operation
- Investment in public and rural transport, including the funding of nearly 60 projects to connect rural Scotland through the Rural Community Transport Initiative
- Bus Route Development Grant funding is improving the quality and frequency of local bus services
Case study:
More than 1 million people benefit from the new concessionary travel scheme
A new concessionary travel scheme for older and disabled people was launched on 1 April 2006. It allows holders of the new National Entitlement Card to travel free, by bus, anywhere in Scotland, at any time. More than 1 million cards have now been issued, with around 80% of those eligible already taking up the concessionary travel scheme, operated by Transport Scotland. The card will eventually replace the various and numerous card schemes currently run by local authorities. In the future other services covered by the card may include library and leisure membership, cashless catering and proof of age for young people.
The travel initiative is connecting communities across Scotland. Over summer 2006 use of the scheme peaked with 12 million journeys every four weeks as more and more older and disabled people got on the bus to visit cities, towns and beauty spots around the country, meeting family, friends and sightseeing.
'I would like to thank the Scottish Executive for a lovely spring and summer! They gave me a free bus pass for the length and breadth of Scotland and that is where I have been. In all I have had 15 bus trips… It's been years since I have been to St Andrews, which my pass encouraged me to visit, likewise the Borders, Fife, Perth and beyond.'
Letter to the Edinburgh Evening News, 14 September 2006
Rural
Introduction
Making a difference:
In 2003 we said that we were committed to maintaining strong, prosperous and growing communities in rural Scotland. We said that we would work to ensure that the rural economy continued to provide jobs and opportunities for all, and we would secure a sustainable future for our rural industries.
We have encouraged local authorities to protect and develop rural services, particularly through the opportunities offered by Community Planning. We have funded over 500 community-led projects through the Scottish Rural Partnership Fund and the Rural Development Small Awards Fund and continue to offer our support in a way that encourages the local decision-making process.
We have invested in our reputation for high quality food and drink, to provide a future for Scotland's rural businesses. We have done so by supporting the development of sustainable farming practices, and the Organic Aid Scheme has offered support to over 240 farm businesses to convert to organic and to more than 170 organic farmers to continue to farm organically. We have ensured that Scotch Beef can once again be enjoyed in European restaurants.
We have supported the reform of the Common Agriculture Policy, shifting away from production subsidies to payments that recognise the economic, social and environmental contribution agriculture makes to rural development. Our Forward Strategy for Scottish Agriculture: Next Steps sets out how we will take this further and develop a more integrated food-supply chain, responsive to market demand and promoting cultivation of energy crops.
We are moving towards a sustainable future for the fishing industry, working within the context of the revised Common Fisheries Policy, and we have worked with UK colleagues to secure a balanced deal for the Scottish industry. We have continued to support our aquaculture industry, which has faced a period of difficult economic conditions.
Headline achievements:
- Scotch Beef back on European menus
- Our agriculture, fisheries and forestry industries underpinned by the principles of sustainable development
- New animal health and welfare standards introduced by Animal Health and Welfare (Scotland) Act 2006
- Stakeholders involved in new local management arrangements for inshore fisheries
- Right of responsible access to land - more extensive than elsewhere in the UK
- Recognising our unique natural heritage, and following the success of the Cairngorm and Loch Lomond and the Trossachs National Parks, consulting on Scotland's first coastal and marine National Park
- Launch of Choosing our future, Scotland's sustainable development strategy
Case study:
Transforming access to Scotland's countryside
Scotland's ancient land ownership laws were modernised by the Land Reform (Scotland) Act 2003, which established a new right of responsible non-motorised public access. The right encourages visitors to the many beautiful and remote parts of Scotland. The rights and responsibilities of land managers and those exercising access rights are set out in the Scottish Outdoor Access Code. This contributes to quality of life in relation to health, well-being, tourism and local economic development.
Local access forums have been set up in local authorities and national park authorities throughout Scotland, involving land manager and recreational interests to resolve any problems or disputes over access. The access authorities uphold access rights, and have made path agreements with land managers. They are also active in exempting land from the rights where appropriate, for example for car rallies, and have begun to draw up plans for a system of core paths sufficient for giving the public reasonable access throughout their areas. Land Management Contracts have rewarded farmers and landowners who invest in extra public access.
Highland Council has established six local access forums. With seven access officers and 23 rangers, formal consultation on core paths plans began in February 2006, with the six area plans expected to be drawn up by January 2008. The estimated length of way-marked paths in the area stood at 7,321 km in March 2006. The Council also issued one notice to a land owner to secure the removal of an impediment to access.
'We are very conscious of the value of access to the social and economic well-being of our communities. The fundamental changes to the law underwrite that value and we welcome the opportunity to make those changes work.'
Stewart Eastaugh, Access Officer at Highland Council