Press Release

SCC Gives Broad Welcome to New Transport Select Committee Report on Aviation

Commenting on the publication of the House of Commons Transport Committee Report on the Government's Aviation Strategy, Scottish Chambers of Commerce have welcomed the recommendation to get on with the construction of a third runway at Heathrow but are slightly disappointed that the Committee has stopped short of endorsing the recommendation of Scottish Chambers of Commerce that Air Passenger Duty (APD) should be devolved to the Scottish Parliament.  Liz Cameron, Chief Executive of Scottish Chambers of Commerce, said:

'Scottish Chambers of Commerce welcome the publication of this important report by the House of Commons Transport Select Committee.  When we appeared before the Committee in January, we had two key objectives on behalf of the Scottish business community: to improve access between Scottish airports and the UK's hub airport at Heathrow and to seek to make the Scottish aviation market more competitive by campaigning for the devolution and reduction of Air Passenger Duty.

'We are therefore pleased that the Committee has come a long way in responding positively towards these objectives.  Scotland requires connectivity with the hub airport at Heathrow in order to connect with key markets across the globe that cannot be serviced directly from Scotland but this can only be achieved if Heathrow is allowed to expand to meet demand and if services between Heathrow and Scotland are maintained and expanded.  We welcome the Committee's common sense position that the UK Government should get on and allow Heathrow Airport to expand through the construction of a third runway.  This is long overdue and much needed and it is time the Government stopped trying to kick this decision into the long grass.  Their delay is costing our economy dearly.

'In terms of Air Passenger Duty, there is an overwhelming body of evidence, including the recent reports from York Aviation and PwC, which prove that the high cost of this tax is damaging business and that the ability of our airports to compete in terms of attracting new services in the international aviation market is being compromised.  Our preferred option would be to devolve this tax to the Scottish Parliament, as was recommended by the Calman Commission on Scottish Devolution back in 2009, and then to reduce or eliminate the tax altogether.

'Whilst the Transport Committee has not gone that far, we do believe that members have got the message about the negative effects of APD on regional airports and their recommendations as to an APD holiday for new services at regional airports and a comprehensive review of the impact of APD are extremely welcome.  Again this is long overdue, since the Treasury in responding to a consultation on APD back in December 2011 pledged to conduct a study to explore the feasibility and likely effects of devolution of APD to Scotland and Wales but this has still not taken place.

'Overall we believe that this is an important and well considered report from the Transport Select Committee and we urge the UK Government to respond positively to it as a priority.'

 

SCC Welcome Fall in Unemployment

Commenting on the release of official figures which show that unemployment in Scotland fell by 11,000 in the three months to February, Scottish Chambers of Commerce Chief Executive, Liz Cameron, said:

'There has been a sustained downward trend in unemployment for some time now and it is important that this has been accompanied by a rise in employment to its highest level in over a decade.  This is very welcome but since this has coincided with a period of weak annualised economic growth, the challenge going forward must be to ensure that government and business work together to ensure effective skills utilisation and productivity in the workforce.

'Scottish Chambers of Commerce have been working to help address this situation through such successful initiatives as Education into Enterprise and the Graduate Recruitment Incentive schemes and, more recently, our research work with Skills Development Scotland to identify skills needs.

'The fact that so many people are employed in Scotland is testament to the resilience of our businesses but future success will depend upon effective skills utilisation.'

 

SCC Welcome Scottish Growth Figures

Commenting on the news that Scotland's GDP grew by 0.5% in the fourth quarter of 2012, Scottish Chambers of Commerce Chief Executive, Liz Cameron, said:

'The news that Scotland's economy grew strongly for the second consecutive quarter is extremely welcome and is in contrast to the more gloomy figures for the UK as a whole.  Nevertheless we still anticipate fairly weak overall growth trends during this year, meaning that there is no room for complacency when it comes to government action to help ensure a competitive economic environment in Scotland.

'The problem of below trend growth in Scotland and how to support businesses to achieve a competitive advantage in the global marketplace is one of the central challenges to politicians in the ongoing debate over Scotland's constitutional future.  Scotland's businesses need a clear prospectus that will help them to understand where future opportunities might lie, irrespective of the outcome of next year's referendum.'

 

Scottish Businesses Need Work-ready Employees - and See the Benefits of Investing in Their People

Scottish Chambers of Commerce and Skills Development Scotland have released the results of their first 2013 Skills Pulse Survey (download it here).

Commenting, Scottish Chambers of Commerce Chief Executive Liz Cameron said:

'Members of Chambers of Commerce in Scotland employ nearly half a million people, across businesses of all sizes and in all sectors – so this survey is a great snapshot of businesses' activity and needs in skills and training.

'It is important that we work collectively to identify what employers' skills needs are – not just now, but in five or ten years' time.  This intelligence is crucial to determining the training provision that will be needed to make sure that businesses have the resources they need to grow – and that our young people have the skills they need to succeed in the jobs market.'

'These survey results provide two really clear lessons for all of us – businesses and the public sector – to take on board.  Firstly, our member businesses recognise the benefits of staff training, and investing in their employees.  Secondly, employers look for a basic level of work readiness, literacy and numeracy in job applicants – but are happy to build on this foundation to support their employees to build their skills.'

Damien Yeates, chief executive of Skills Development Scotland said:
'The survey results confirm that businesses recognise the benefits of workforce training and development, both for the organisation and for their employees.  The recent introduction of a new SDS employer services team allied with the Our Skillsforce web service helps to arm employers with vital information on the skills support services available from public sector organisations across Scotland.  The web service also enables employers to flag their skills and recruitment needs through a Skills Alert feature and be assisted to the best available support package for recruitment and training.'

 

Signs of a Recovery Remain Muted

Scottish Chambers of Commerce have released their Business Survey results for the first quarter of 2013.  The survey, conducted in conjunction with the University of Strathclyde’s Fraser of Allander Institute, reports an encouraging start to the year in the manufacturing sector, with some positive signs in construction and, to a lesser extent, tourism.  However low demand remains a major constraint to increased activity in most sectors and the barrier to a return to trend growth.

Garry Clark, Head of Policy and Public Affairs at Scottish Chambers of Commerce, said:

'Our latest survey paints a picture of continued fragility in the Scottish economy with weak levels of domestic and consumer demand.  As we warned at the beginning of this year, there are clear signs that the economy is continuing to bump along a path of little or no growth and further action may be required by government to stimulate demand over the course 2013.

'There are some positives to take out of this quarter’s figures, particularly the renewed strength of manufactured exports which has resulted in an upturn in optimism in the manufacturing sector.  We also welcome a second quarter of improved results in the construction sector, although this is beginning to highlight recruitment difficulties re-emerging in this sector.  More unexpected was a return to signs of positive optimism in the tourism sector, though discounting is again evident.

'The majority of businesses across all sectors, except in oil and gas  identify the lack of demand as the key blockage to future growth and if Scotland is to return to trend levels of growth of 1-1.5% per year or more, then further efforts will be required by government at all levels to stimulate demand.  The Scottish Government and, more recently, the UK Government have now recognised the value of focusing resources on capital spending and investment.  This must be accelerated and government must also look at how it can reduce the cost base for business, including action to reduce the impact of business rates.

'Businesses will find opportunities where they can, but the muted signs of improvement in our economy as we enter the spring can only be sustained and strengthened  when businesses and consumers alike have the confidence to spend and invest.'

 
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