Salmond's economic elite target red tape

Published on Saturday 22 September 2007 00:08

A BLUEPRINT for simplifying Scotland's bureaucratic planning system is to be drawn up by the First Minister's new council of economic advisers, which met for the first time yesterday.

An investigation into planning emerged as a key early priority for the high-powered team of economists and business leaders appointed by Alex Salmond to advise him on growing Scotland's economy.

Mr Salmond yesterday hailed the all-day gathering in Edinburgh as "inspiring".

The First Minister said the council would have a key role to play in informing the Scottish Government's pledge to raise growth rates north of the Border to those in the UK as a whole.

Sources close to council last night said that the nine of the 11-member body who attended had spent most of the day studying facts about Scotland's economy, including labour force participation, productivity and population.

However, the meeting also had a special presentation by Jim Mackinnon, the Scottish Government's Chief Planner, who outlined the current issues over planning which many in the business world believe holds up economic development.

Last night a source close to the process said: "This was very much a first meeting with a long look at the statistics and thoughts on what kinds of information will be required in the future.

"Planning was an important part of that and it is something they are sure to return to soon."

Speaking after the meeting Mr Salmond said: "My belief that we have gathered some of the best minds to focus on achieving greater economic success for Scotland has been confirmed by the dynamic exchange of ideas that has taken place today."

The council is chaired by former Royal Bank of Scotland chief executive and chairman Sir George Mathewson, who backed the SNP in the Holyrood election campaign.

Yesterday it was confirmed that the council will have quarterly meetings, with minutes to be published two weeks later.

Mr Salmond said that publication would "keep everyone with an interest in improving Scotland's economic performance informed of the areas under discussion".

The council will also publish an annual report, providing an expert commentary on the Scottish economy.

Speaking before the meeting, Sir George said he hoped the new body would provide the best possible advice.

In a radio interview, he said: "I would hope that we are able to provide, from a very wide range of experience and background, the best economic advice possible to the First Minister.

"It is not by any means our job to make decisions, that's for the politicians, but we would hope to be able to think and consider the economic issues that face Scotland and try and suggest some ways forward."

He said that in recent years the Scottish economy had underperformed in relation to the rest of the UK

, adding it was "possible" to have a growth rate equal to the UK's within four years, but that he was "not prepared to say at this point in time how we would do it".

Derek Brownlee, the Conservative finance spokesman, said: "The council is made up of some very respected figures in the world of economics and there is a real opportunity here to deliver some fresh, new ideas for Scotland.

"However, the new minority government must be receptive to fresh thinking that might not necessarily fit in with the SNP's independence agenda."

Nicol Stephen, the Liberal Democrat leader, called for the council to be allowed to consider the forthcoming spending review, which will allocate 90 billion of public money over three years.

A Scottish Government spokesman said that the role of the council was "to advise on growing the economy". Ministers were accountable to parliament for spending decisions and budget process.

COUNCIL OF ADVISERS

Jennifer Steedman

Head of analytical service, Scottish Government

Prof John Kay

Fellow of St John's College, Oxford

Crawford Beveridge

Executive vice-president and chairman of Sun Microsystems in Europe, Middle East and Africa

Robert Smith

Chairman of Weir Group and Scottish & Southern Energy. Chairs the Smith Group.

Jennifer Erickson

Special adviser to the First Minister

Prof Alex Kemp

Professor of petroleum economics at the University of Aberdeen

Alex Salmond

First Minister

Sir George Mathewson

Chief executive and then chairman of the Royal Bank of Scotland

Prof Frances Ruane

Director of Ireland's Economic and Social Research Institute

Jim McColl

Chairman and chief executive of Clyde Blowers.

Prof James Mirrlees

Professor emeritus at Cambridge University and professor-at-large at the Chinese University, Hong Kong

John Swinney

Cabinet Secretary for finance and sustainable growth

Andrew Goudie

Chief economic adviser to the Scottish Government

Prof Andrew Hughes Hallett

Professor of economics and public policy at George Mason University in the US and visiting Professor of Economics at St Andrews University

Two members of the team were not at yesterday's meeting:

Finn Kydland

Henley Professor of Economics at the University of California, Santa Barbara

Frances Cairncross

Rector of Exeter College, Oxford