MSPs demand more action to improve companies' 'vital' export trade

SCOTTISH companies' poor performance in export markets has been criticised by MSPs, who fear it is harming the country's recovery from the recession.

The Scottish Parliament's economy, energy and tourism committee believes more companies need to expand into overseas trade.

It has called on Scottish Development International (SDI) to "update" its strategy and services to focus more on increasing the number of companies that see exports as a route to success.

SDI aims to help the growth of the Scottish economy by encouraging inward investment, while at the same time helping Scottish-based companies develop international trade.

Iain Smith, convener of the committee, said: "Scotland is slowly coming out of recession, but is lagging behind some other economies, such as Asia, so now is a good time to tap into growing overseas markets. Our report is particularly timely given the increasing constraints on public finances. While Scotland has a good track record in export markets across a number of sectors, such as oil and gas and whisky, overall performance is inconsistent."

The report, which also examined whether initiatives provide value for money, said: "The committee believes that if the Scottish economy is to recover, and to do so as quickly as possible, then an increased focus on international trade will be necessary."

It added: "The evidence we have presented in our report, and our analysis of the long-term trends for exports and inward investment, show that Scotland's performance is increasingly patchy."