Warning of risks to Scotland from deep defence cuts

Published on Tuesday 28 September 2010 22:32

THE Scottish Chambers of Commerce has written to the UK government warning of the damage that would be inflicted on the country's defence industry if the coalition goes ahead with deep cuts in spending.

• Mike Salter:"Scotland punches above its weight"

Thousands of Scottish jobs are under threat, including work on two giant aircraft carriers for the Royal Navy at Govan and Rosyth,

Mike Salter, Chambers chairman, told the organisation's annual dinner last night that the impact of cuts in defence spending in Scotland would be "immense" and he hoped the government was listening to its pleas.

"Scotland punches above its weight in terms of its contribution to our armed forces, but the returns in terms of investment in Scotland have deteriorated over recent years," he said.

"We cannot afford to see this cut further as a result of the impending Strategic Defence and Security Review.

"I would urge the UK government to take this on board during the coming weeks - security, skills and our economy are at great risk."

It emerged yesterday that Liam Fox, the Defence Secretary, has written to David Cameron, the Prime Minister, warning him against "draconian cuts" which would undermine morale in the armed forces at a time when the country is at war.

Salter, who said his organisation had written to the government expressing its concerns, said he hoped the government was listening.

Salter said he viewed the forthcoming cutbacks in public expenditure with "some trepidation" but said they need not necessarily lead to cuts in service provision or in quality.

"A focus on 'doing things differently' and using resources better can achieve much. This should be the focus for the near and the longer term," he said.

"I have been encouraged in conversations with a number of local authorities who are indeed already doing things differently in their endeavours to maintain services in critical areas, displaying real innovation, not just tampering at the edges.

"They have identified potential opportunities as well as threats, and are clearly looking to the longer term."

Salter said that positive signs were emerging of Scottish firms increasing their overseas trade links. "Scotland is highly regarded in international markets, more so than we perhaps realise," he said.

"The country has a reputation for being straight-forward, trusting, respected and innovative. As well as our well recognised products there is an increasingly broader spectrum of businesses exporting 'Brand Scotland' to the world."

Scottish Chambers International recently launched "Smart Exporter" in partnership with the Scottish Government and Scottish Development International.It helps companies gain from the experiences of others in venturing into exports.

The Princess Royal, who was guest speaker, encouraged businesses to chase the many contracts that were coming up for the 2012 London Olympics.