John Swinney admits business friction despite 'all I've ever done for them'

Published on Wednesday 28 October 2009 21:19

FINANCE secretary John Swinney was forced on to the defensive yesterday as he had to respond to an unprecedented attack from Scotland's business community.

Mr Swinney insisted economic growth was still the primary goal of the Scottish Government, as he faced tough questioning from Holyrood's economy committee.

In The Scotsman yesterday, CBI Scotland director Iain McMillan claimed policies on minimum pricing for alcohol, preventing private sector involvement in prisons and hospitals, cancelling the Glasgow airport rail link and "bullying" drinks giant Diageo over its plans to restructure all meant that the SNP was endangering investment.

He added that, after the SNP's attempts to woo business, its recent left-wing rhetoric in speeches by senior ministers, combined with its policies, meant the party was "losing the trust and support" of the private sector.

The attack was supported by David Watt, director of the Institute of directors in Scotland, and Liz Cameron, chief executive of the Scottish Chambers of Commerce, who also both highlighted the 74 million cut proposed in the enterprise budget.

Mr Swinney told them he had been forced to make some difficult decisions for next year's budget, which is the first since devolution to reduce in real terms.

He added that the Scottish Government had introduced pro-business policies, including scrapping and cutting small business rates, accelerating planning and bringing forward capital spending, as well as investing in skills.

But he admitted thathe was at odds with the business community, telling MSPs: "It looks like I am going to spend the whole day disagreeing with all the business organisations in Scotland, which is a strange position to be in, considering all the efforts I have made for them."

But political opponents claimed the attack by business leaders had exposed the SNP and that the business community had previously "been fooled".

Scottish Conservative leader Annabel Goldie said: "The SNP's anti-business chickens are coming home to roost. The unpalatable truth of the SNP as a political entity is now clear."

"Any pro-business policies from the Scottish Government are purely down to Conservative pressure in the Scottish Parliament, such as stopping tens of thousands of small businesses paying local tax."

And Liberal Democrat finance spokesman Jeremy Purvis, MSP, said businesses were right to be concerned about the SNP.

He said: "Let's take one of their flagship policies, the Scottish Futures Trust. This is a white elephant which has achieved nothing for Scotland.

"It is the Bermuda Triangle of Scottish politics: everything goes into it but nothing ever comes out. The CBI is absolutely right to call it a fiasco."