Scotland must raise its game ‘or risk turning into Third World country’

Scotland could become a “Third World nation” without a major drive to revive the country’s ailing economy, one of the country’s leading entrepreneurs has warned.

And Sir Tom Hunter told an audience of business and political leaders at Holyrood yesterday that Scotland must increase the “birth-rate” of new companies to boost growth.

The Ayrshire-based tycoon said he is still undecided on independence, but repeated his previous calls for the Scottish Parliament to have full fiscal responsibility for raising all the money it spends.

He said: “If you want 1 per cent growth and you’re happy to be compared to our European counterparts, please think again. Ageing demographics, low business birth-rate, unemployment growth will beat us down into a Third World nation at no time at all.

“But if we raise our game, reach for the stars, make ambition and innovation our mantras, we can and we will make future Scots proud of what we have put in place.”

Sir Tom said that growth can no longer be taken as a “certainty” and the current negative growth in some eurozone countries was “catastrophic.”

He added: “Look at Spain – 52 per cent of their young people between 16 and 24 are unemployed.

“That’s like a breakdown of civil society, that’s dangerous.”

Sir Tom, who made his fortune through his chain of Sports Division stores, said politicians, business people and teachers should follow the example of independent Fraserburgh-based brewery BrewDog whose mantra is “break the rules, take risks, upset trends and unsettle institutions”.

MSPs need to “put party politics aside” and back devolved fiscal responsibility, and not take too long in outlining the their arguments for and against independence.

He was addressing the Business in Parliament conference at Holyrood yesterday, where more than 200 delegates gathered to debate how to inspire the next generation of business leaders in Scotland.

Among the audience was First Minister Alex Salmond, Clyde Blowers tycoon Jim McColl and Apex Hotels chairman Norman Springford.

Sir Tom told the MSPs present they should have the “responsibility” for raising the money they spend at Holyrood.

He added: “We in Scotland need fiscal responsibility. Quite simply, we need to be responsible for what we raise in tax and what we spend in tax.

“I don’t know if we need independence yet. I’m still waiting to hear both sides of the argument. Hopefully, we won’t have to wait too long. But I do know that we need to have that debate. I believe our politicians of every hue have the maturity and decency to put party politics aside and do what is right for Scotland by coming together for our great nation.

“Government needs to deliver hope. Hope for our people.” Hope for better times ahead.”

He challenged everyone to “raise our game and invent the new Enlightenment” by getting “our business birth rate up”.

He added: “Scotland’s recent history is not good enough.”