Economy, not independence, will be the focus of election, admits Alex Salmond

Published on Monday 11 January 2010 21:33

ALEX Salmond has conceded that the general election will be fought over the economy and not Scotland's constitutional future, as he shared a platform with one his rivals at a major jobs summit.

• First Minister Alex Salmond, right, and Scottish Secretary Jim Murphy announced the creation of hundreds of Scottish jobs at a summit yesterday. Picture: PA

The First Minister sat alongside Labour's Scottish Secretary Jim Murphy, in what had been billed as an event where the two would put aside their political differences to secure Scotland's economic recovery, announcing the creation of 500 jobs.

Afterwards, Mr Salmond told The Scotsman that the election, probably in May, would be fought on jobs and the economy.

"I think the economy will be the number one issue, and we will be fighting it as champions for Scotland, both locally and nationally, as the party that is best placed to defend Scotland's interest," he said.

He added that the same argument would be made on both the current and possible future constitutional arrangements.

The Scottish Secretary described the assessment by Mr Salmond as "a major concession" in accepting that the agenda he had argued for was right.

Mr Murphy yesterday wrote to ask Mr Salmond to drop his referendum bill and concentrate on the economic recovery.

A spokesman for the Scottish Secretary said: "This shows that Mr Murphy's focus on the recovery was correct and the fact that the SNP have accepted this shows that they accept they are marginal in the election.

"There are two possible outcomes: one is a Labour one to build on the recovery; the other is a Conservative one to endanger it."

The two bitter rivals sat next to one another on the stage at John Wheatley College in Easterhouse, Glasgow, politely applauding each other's speeches.

Mr Salmond told the audience his government had created an extra 193 jobs by securing 34 million of European cash from the social and regional development funds. He said this would help 28,000 get "employment opportunities" through training.

But almost immediately afterwards, sources close to Mr Murphy suggested the Scottish Government was behind the game in securing European funding, which they said had gone to England and Wales first, a charge dismissed by Mr Salmond.

Mr Murphy announced the creation of 300 new jobs in Fife through the Future Jobs Fund.

But during his speech, Mr Salmond made a barbed reference to the failure of the UK government to accelerate capital spending from 2011-12 to next year's budget, which he described as essential to support jobs and Scotland's fragile recovery.

"There will be a Budget before the election, so there is still everything to play for," he said.

Outside the conference hall, Mr Salmond complained the Treasury was blocking the creation of a Scottish Investment Bank to help support Scotland's recovery.

He said the Treasury had objected because the bid was not being led by the private sector and had threatened to deduct the equivalent of any European money from the Scottish budget.

Mr Murphy pointed to the Scottish sample of the latest YouGov poll, which gave Labour an 11-point lead over the SNP. "It shows we are holding up well in Scotland," he said.

EXAMINING SUPPORT FOR BUSINESS

A HOLYROOD inquiry is to be held into the role of trade in boosting economic recovery.

It will look into the way the Scottish Government and other public-sector bodies support businesses in the recession.

The inquiry will be held by the economy, energy and tourism committee.

Its convener, Liberal Democrat MSP Iain Smith, said: "In recent months the Scottish economy, together with those of other countries, has fallen into recession and indications show that recovery will be slow. The committee believes that, if the Scottish economy is to recover as quickly as possible, then an increased focus on international trade, both inward and outward, is required."

The Scottish Government has an immediate target to raise GDP growth to the UK level by 2011.

But forecasters, including the Scottish Government's own economic adviser, say the path to recovery in Scotland will be slow, perhaps even slower than in the rest of the UK.

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