Glasgow 'powerhouse' must target private investors, says commission

Published on Wednesday 29 June 2011 16:01

THE private sector should be given a greater role in the leadership of Glasgow to help re-focus the city's economy towards fast-growth emerging industries, according to a hard-hitting report published today.

&#149 Jim McDonald

Research from the Glasgow Economic Commission, a group set up after the recession involving business leaders such as Weir Group chief executive Keith Cochrane and Tesco Bank boss Benny Higgins, recommends that a new "private-public leadership body" be established to co-ordinate the economic development efforts of the city council, Scottish Enterprise, the Glasgow Chamber of Commerce and other organisations.

The commission, which has been working on the study for eight months, recommends that particular attention should be paid to attracting low carbon industries, engineering, design and manufacturing firms. Other key sectors should include life sciences, financial services and tourism, the group said.

The commission was chaired by University of Strathclyde principal Jim McDonald and also involved Bailie Liz Cameron of Glasgow City Council and Ian Curle of the Edrington Group.

McDonald said Glasgow stood "at the cusp" of reshaping its commercial and business profile.

"Glasgow can now reshape itself, in a partnership between the public and private sector, to build jobs, build wealth creation, and build new industries that play on the international stage," he said.

He argued that the city had undergone major transformations in the past, such as its move from an industry and trade focus to financial services and retail, and a private-public body would help steer the next stage of its economic development.

The report recommends a number of "alternative funding" options to drive economic growth, such as tax increment financing (TIF) - a complex form of funding involving future business rates - and using public land to incentivise private investment.

City council leader Gordon Matheson, who commissioned the report, called for the council to be allowed to keep the proceeds of its non-domestic rates, currently distributed around Scotland, to give the city an extra 70 million a year to invest.

He also called for Finance Secretary John Swinney to give the go ahead on a 30m TIF deal on the Buchanan Galleries.

"Scotland won't succeed without Glasgow," he said. "You need to invest back in the economic powerhouse for growth to continue."