MSPs launch inquiry in bid to revive nation's decimated export industries

Published on Saturday 25 April 2009 15:27

SCOTTISH manufacturing will become the focus of a parliamentary inquiry as figures show Scotland's share of world trade has plunged 75% since 1998.

The economy, energy and tourism committee is expected to launch an investigation into how Scotland's export markets can be revived after research commissioned by MSPs revealed that Scottish manufacturers now only lay claim to 0.16% of international trade.

Although many western European countries have experienced industrial decline over the past 20 years as manufacturing has shifted to developing countries, such as China, the report shows Scotland has experienced a much faster rate of collapse compared with the rest of the UK.

It also points out that Ireland, by contrast, has actually succeeded in increasing its exports over the past two decades by nurturing industries such as pharmaceuticals and engineering.

MSPs will consider what more Government economic agencies such as Scottish Enterprise and Scottish Development International (SDI) can do to revive manufacturing in this country, which still employs in excess of 218,000 people.

Iain Smith, Liberal Democrat member for North East Fife and convener of the committee, said: "The value of our export industries and the attraction of inward investment are critical parts of our economy.

"There is probably no better time during this recession to review how well the Scottish economy performs in these respects and how well the public sector supports our industry. How Scotland can export its way out of a recession is a key matter for us to consider, and I'd like to start this debate with our industries, business organisations and trades unions now."

The inquiry is likely to be welcomed by manufacturing bodies, which for a long time have been calling for the Scottish Government to draw up an action plan for the sector.

Earlier this month, the Institution of Mechanical Engineers pressed Alex Salmond's administration to take swifter action to rear future export industries around the low-carbon economy.

David Lonsdale, assistant director of the CBI in Scotland, urged the committee to press ahead with an inquiry.

He said: "CBI surveys show that the much hoped for boon for Scots exporters from the weaker exchange rate remains elusive, as key overseas markets are in a funk at the moment. However, international trade is likely to play a larger role in driving forward our economy in the years ahead.

"It is therefore crucial that domestic public policy continues to resist protectionism and encourages firms to raise their game and maximise the opportunities to win new business overseas," Lonsdale said.