Positive Signs

Amid the economic gloom that we have all had to get used to in recent years, it is often the case that people strain hard to see recovery heralded in the smallest of signs. Yet recently published figures do show positive movements for the Scottish economy in the final months of 2011.

While GDP in the UK and in the Eurozone fell by 0.3% in the final quarter of last year, in Scotland the reduction was a more modest 0.1%. A small difference to be sure, but a welcome sign that in that period at least the Scottish economy outperformed that of the rest of the UK.

That figure was underpinned by figures published at the same time showing that Scotland has a lower rate of unemployment, a higher rate of employment and lower economic inactivity than the UK as a whole. These are welcome signs in all three of the key labour market statistics.

One of the key factors that have helped to boost Scotland’s economic performance relative to the rest of the UK has been the Scottish Government’s Small Business Bonus Scheme. This has seen rates bills abolished or substantially reduced for thousands of businesses across Scotland, keeping money in their balance sheets at a time when the margins businesses are operating in are tighter than ever.

In Aberdeenshire alone, this support has seen businesses save more than £20 million in taxation since the policy was brought in during 2008. Across Scotland, the figure that has been saved is over £400 million.

This is a substantial level of support that has been instrumental in keeping the small businesses which form the lifeblood of our economy afloat during harsh economic times. It is one of the Scottish Government achievements of which I am most proud and our commitment to maintaining this essential policy has not wavered.

With the publication of first quarter data for 2012 showing that the UK economy as a whole has again contracted, meaning that it has fallen into a double-dip recession, it is measures such as the Small Business Bonus that will help maximise Scotland’s economic performance.

With first quarter figures for Scotland not yet available, I know that people across the country will sincerely hope that the positive signs that are there in the Scottish economy will help us to avoid the fate of the rest of the UK.

Making your vote count

For the first time in many years, the 3rd of May will see local government elections held in Scotland with no other elections taking place at the same time. After the large number of spoilt ballot papers in the 2007 elections, making sure that council elections take place on a separate date was one of the key recommendations that were made by the inquiry that was subsequently held into what had happened.

Holding the elections on their own day should help to reduce confusion, but everyone should also remember that in this election they need to vote using numbers to rank the candidates in order of preference. The decisions that local authorities make have a huge impact on our day to day lives so I hope that we will see a substantial turnout in Banffshire & Buchan Coast as people play their part in the democratic process.

The importance of these elections should not be underestimated, particularly in these difficult economic times where the decisions local authorities make are particularly critical, so I look forward to working with the new and returning councillors which local residents elect on the 3rd of May.

Connecting With The World Faster

As technology develops at an ever faster pace, the internet takes on an ever greater role in our daily lives. More and more of our daily activities, whether for business or leisure, are online, making fast and reliable broadband connections more important than ever.

That is why I was delighted by the news that Buckie and Fraserburgh have both benefited from infrastructure upgrades that mean residents will be able to access the faster broadband connections they increasingly need. Faster broadband connections boost economic growth in the places that benefit from them and improve the quality of people’s day to day lives. That is why the Scottish Government has set ambitious targets to deliver world class digital infrastructure for people across Scotland by 2020.

As part of this, the objective of delivering speeds of 40-80Mbps to around 85-90% of premises in Scotland by 2015 has been set. Speeds of this kind are a step change in what has typically been available until very recently, but must become the norm if Scotland is to compete economically with other countries around the world. Achieving this will undoubtedly be a challenge, particularly in those parts of the country that the market would not otherwise deliver the necessary infrastructure to. That is why the Scottish Government will be targeting its public investment in the typically rural areas that are home to the 30% of premises that would not otherwise see broadband upgrades.

Additional funding for this purpose was an important part of the Scottish Government’s recently passed budget and will continue to be a key priority for investment in the years ahead. It is essential that in delivering the digital infrastructure necessary for the future of our economy, people are not disadvantaged by where they live. A fast internet connection is no less essential to a business or household in a rural part of the country as it is to one in one of Scotland’s cities. People across every part of Scotland should be able to get the broadband connections they need and it is right that the Scottish Government is prioritising this in its approach.

I am confident that we will see more upgrades to the broadband infrastructure in Banffshire & Buchan Coast in the near future and I know just how welcome they will be to the people in the area that are able to benefit from them.

Slow steps forward

I have written several times before about the many twists, turns and false starts that have faced efforts to bring a Carbon Capture & Storage project to Peterhead power station. Several months ago when efforts to build a CCS project at Longannet in Fife failed, the UK Government indicated that the £1 billion of public funding for carbon capture technologies would still be made available during the current Westminster term.

However, this money was subsequently reallocated for other projects by the Treasury and 2015 identified as the date when the project that wins the Carbon Capture & Storage Competition can expect to receive funding.

This was enormously frustrating and another unnecessary delay imposed by the UK Government in what is fast becoming a habit. That competition has now been launched by the UK Government and as slow progress is better than none at all it is at least a positive step forward.

I am optimistic of Peterhead’s prospects of winning through and securing the funding that will bring jobs and investment to the area. What would be utterly unacceptable, however, is if we see any further mishandling and unnecessary delays that further hinder progress.