{"id":79570,"date":"2017-03-09T12:42:11","date_gmt":"2017-03-09T12:42:11","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=b534782a3d276edcdee46d736ff994ec"},"modified":"2017-03-09T12:42:11","modified_gmt":"2017-03-09T12:42:11","slug":"speech-lord-dunlop-spoke-at-scotland-policy-conference-edinburgh","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=79570","title":{"rendered":"Speech: Lord Dunlop spoke at Scotland Policy conference, Edinburgh."},"content":{"rendered":"
\n

Introduction<\/p>\n

Good morning ladies and gentlemen.<\/p>\n

Thank you for inviting me to address your conference today.<\/p>\n

This conference is taking place at a crucially important time.<\/p>\n

Yesterday the Bill to authorise the Prime Minister to notify the UK\u2019s intention to withdraw from the European Union passed it\u2019s Third Reading in the House of Lords.<\/p>\n

The debates in the Upper House have been passionate, lively and continuing late into the evening.<\/p>\n

And if I may say so, they have been a million miles from the perception many people have of the House of Lords.<\/p>\n

When I joined the House of Lords one of my new colleagues recounted the story of a peer who\u2019d had a dream he was making a speech in the Chamber of the House of Lords\u2026<\/p>\n

\u2026and then the Peer woke up and realised he was making a speech in the Chamber of the House of Lords!<\/p>\n

Well I can assure you everyone in the House of Lords has been wide-awake and on their toes as we\u2019ve considered the Article 50 Bill.<\/p>\n

The Bill now goes back to the House of Commons to consider Lords Amendments and then on to what is colloquially known as \u201cping pong\u201d\u2026<\/p>\n

\u2026 or possibly if you\u2019re Boris Johnson – \u201cwhiff whaff\u201d.<\/p>\n

The key point is that we\u2019re on track to meet the Prime Minister\u2019s commitment to trigger Article 50 by the end of March.<\/p>\n

Against that backdrop my theme is very simple: working together\u2026<\/p>\n

\u2026because there\u2019s never been a time when it\u2019s been more important for us to come together and to work together in the national interest.<\/p>\n

I believe that\u2019s what people here in Scotland – and right across the UK – want from – and expect – of their governments.<\/p>\n

So today I want to cover three aspects\u2026<\/p>\n

\u2026strengthening the performance of the Scottish economy\u2026<\/p>\n

\u2026securing the best deal as we exit the EU\u2026<\/p>\n

\u2026and reaching a sensible and stable settlement with the devolved administrations as powers are repatriated from the EU.<\/p>\n

Scotland\u2019s Economic Performance<\/h4>\n

I had the good fortune to study at Edinburgh University under the late, great Professor John P McIntosh.<\/p>\n

He was one of the foremost political thinkers of his generation – in so many ways the father of devolution.<\/p>\n

I often wonder what he would make of today\u2019s Scottish politics.<\/p>\n

He would certainly be proud to see a Scottish Parliament at Holyrood.<\/p>\n

And not just any old parliament\u2026<\/p>\n

\u2026but a parliament now widely accepted as one of the most powerful devolved parliaments anywhere in the world.<\/p>\n

I suspect however he would also be dismayed that\u2026<\/p>\n

\u2026after nearly 20 years of devolved government\u2026<\/p>\n

\u2026constitutional politics continues obsessively to dominate public discourse in Scotland\u2026<\/p>\n

\u2026with other vitally and immediately important issues\u2026<\/p>\n

\u2026the state of our schools and hospitals, the deficit in our public finances or the development of our economy all struggling to command such attention.<\/p>\n

At the top of the list of those matters that must command our attention is the performance of Scotland\u2019s economy\u2026<\/p>\n

\u2026because by nearly all key measures, the Scottish economy is beginning to lag behind that of the rest of the UK.<\/p>\n

Our GDP growth last year was a third that of the UK as a whole, remaining pretty much flat over the last six quarters.<\/p>\n

The number of businesses in Scotland is falling, whereas in the rest of the UK, it is rising.<\/p>\n

And activity in the labour market is lagging behind the UK \u2013 the worst performance of any of our regions or nations.<\/p>\n

My purpose in reeling off these rather downbeat statistics is not to depress you or to talk down Scotland.<\/p>\n

I bow to no-one in my confidence in the potential of Scotland and in the talents of her people.<\/p>\n

But we do need a reality check.<\/p>\n

In recent years the Scottish economy has not been performing as well as we would all like it to.<\/p>\n

And closing this growth gap is more important than ever given the new and extensive tax powers devolved to the Scottish Parliament.<\/p>\n

Because in future what the Scottish Government is able to spend on public services will depend in large part on revenues raised here in Scotland\u2026<\/p>\n

\u2026accounting for over 50% of the total Scottish budget.<\/p>\n

If ever there was an incentive to pursue, enterprise-friendly, pro-growth policies then this is it.<\/p>\n

So it\u2019s time for us to address these immediate – and I hope temporary- challenges before they become permanent structural imbalances.<\/p>\n

That\u2019s why the UK Government has been working closely with the Scottish Government on the UK City Deal programme.<\/p>\n

It\u2019s widely accepted that cities\u2026<\/p>\n

\u2026with their concentrations of talented and enterprising people, their infrastructure and their institutions of higher education\u2026<\/p>\n

\u2026are principal drivers of growth and job creation.<\/p>\n

It\u2019s a notable achievement that Scotland is the only part of the UK where each of its cities either already has a city deal or is in the process of negotiating one.<\/p>\n

City Deals are not about carving out separate and isolated enclaves.<\/p>\n

Quite the reverse – they are about creating a network of regional economic powerhouses capable of forging mutually beneficial connections and linkages.<\/p>\n

The value of connectivity is clear beyond doubt.<\/p>\n

Just look at the trade flows within the UK.<\/p>\n

Scottish trade with the UK is worth four times more than its trade with the EU \u2013 nearly \u00a350b to the rest of the UK, just over \u00a312.3b to the EU.<\/p>\n

Since 2002, Scottish sales to other parts of the UK have risen by 74%, while exports to the EU have increased by just 8%.<\/p>\n

The message is very clear: on this island of ours we are thoroughly inter-dependent.<\/p>\n

We want to build on those vital economic connections.<\/p>\n

That\u2019s what the UK Government\u2019s Industrial Strategy is all about\u2026<\/p>\n

\u2026by driving collaboration across the UK through, for example, sector deals and the Innovation Challenge Fund.<\/p>\n

And I want to ensure that – in what will be a very competitive environment – we are putting our best foot forward to maximise the benefits for Scotland from these initiatives.<\/p>\n

We will work closely with Scottish ministers to align our strategy with the Scottish Government\u2019s so that it\u2019s fit for purpose here in Scotland.<\/p>\n

The prize of working effectively together is potentially huge.<\/p>\n

If business productivity were to rise by one per cent every year\u2026<\/p>\n

\u2026within a decade it would add \u00a3240bn to the size of the economy\u2026<\/p>\n

\u2026equivalent to \u00a39,000 per household in Britain.<\/p>\n

Brexit<\/h4>\n

And of course we need to address these challenges as the UK negotiates its exit from the EU.<\/p>\n

Challenges that were manifest before the vote last June.<\/p>\n

And challenges therefore that are not a result of Brexit.<\/p>\n

However, Brexit provides the sharp spur to redouble our efforts to improve the productivity and competitiveness of the Scottish and UK economies\u2026<\/p>\n

\u2026so that we can realise our ambition of a Britain that continues to be the global, outward-facing, progressive country we all want it to be.<\/p>\n

Negotiating with our European partners the best possible deal for Scotland and the UK as a whole is of the highest priority.<\/p>\n

Over the last 8 months the Secretary of State for Scotland and I have talked to businesses in every part of Scotland.<\/p>\n

Our overwhelming sense is that most Scottish businesses whatever their views about Brexit\u2026<\/p>\n

\u2026will manage it with great resilience\u2026<\/p>\n

\u2026and want us to get on with agreeing a new and ambitious trading relationship with the EU.<\/p>\n

And let me assure you in achieving this mission, the UK wants to work with the Scottish Government.<\/p>\n

We will put ourselves in the strongest position to achieve our joint objectives if we present a united front to the EU.<\/p>\n

And despite some of the high-octane public rhetoric from some Scottish Government Ministers\u2026<\/p>\n

\u2026who sometimes seem to prefer process arguments\u2026<\/p>\n

\u2026and to emphasise division and difference\u2026<\/p>\n

\u2026there is significant common ground between the Scottish Government\u2019s priorities and those articulated by the Prime Minister:<\/p>\n