Executive 'failing' firms

BUSINESS leaders yesterday seized the opportunity of a major business-political conference to issue a stinging attack on Jack McConnell, the First Minister, and his administration's commitment to business.

Speaking in the opening session of the second Business in Parliament conference, Janette Anderson, chief executive of Glasgow-based rail infrastructure company First Engineering accused the Executive of "failing to fly the flag for Scots business", and the political class in general of bogging down economy-enhancing infrastructure schemes in parliamentary procedure.

She also accused the Executive of focusing on hi-tech businesses such as life sciences and IT at the expense of traditional "basic" industries.

Her tone was picked up by, among others, Ian Graham of software firm Graham Technology, who launched an equally scathing critique of the government's procurement policy, which he said discriminated against indigenous companies.

"It is a sad indictment of the current situation that Graham Technology earns 15 per cent of its global revenues from public sector bodies - yet it has never received a penny from the Scottish Executive.

"We have sold to the Australian government, the South African government, the Irish government, the Indonesian government - even the British government - but never to the Scottish government."

Both McConnell and his deputy, Nicol Stephen, used the conference, which was attended by more than 250 business leaders, public sector representatives and politicians, to trumpet the ruling coalition's commitment to growing the economy in partnership with business.

In a coolly received speech, McConnell declared that his relations with business had "never been better". But observers noted that, despite McConnell's designation of economic growth as the "number one issue", only 27 per cent of MSPs, and 20 per cent of Labour MSPs, turned up at a conference designed to promote it.

"It's better than last year, but it's still pretty dismal," said one business leader.

Other reactions to the event's intentions were positive, however. Alan Wilson, chief executive of the Scottish Council of Development and Industry, said: "I think the conference was useful in that it demonstrates politicians' willingness to engage with the business community.

"The fact that the speakers were quite critical of the Executive's public procurement methodology, red tape, and planning procedure - that was healthy. I'm sure the powers that be will take account."