2nd – 3rd November 2006

PROCEEDINGS OF THE
3Rd Business in the Parliament CONFERENCE

Published by the Enterprise and Culture Committee on behalf of The Scottish Parliament and The Scottish Executive, February 2007

CONTENTS

Page
Foreword / 1
Programme / 3
Alphabetical list of delegates / 5
Reflections from the discussion sessions / 9
Report on investment, innovation and excellence
Report on sustainable development
Report on skills in the modern workforce
Report on Scotland’s infrastructure
Report on government and business
Report on businesses of the future / 10
13
18
21
24
28
Transcript / 31

FOREWORD

“It is with great pleasure that we have provided this joint foreword to the proceedings of this year’s Business in the Parliament Conference. These conferences are now considered to be one of the flagship events in the calendar for both politicians and business people. They differ, however, in one crucial respect from many of the other conferences and seminars that take place through the year. The Business in Parliament Conference is jointly organised by both the Scottish Executive and the Scottish Parliament and also enjoys the strong support of our partners amongst the business organisations and trades unions. Held in the Scottish Parliament building, it is truly, as was the intention, a “gathering place” and “a place of shared conversations, not sterile conversations” between Scotland’s business leaders and practitioners, government ministers and parliamentarians.

This sense of dialogue, often robust but nonetheless welcome, is critical if we as policy-makers and legislators are to understand the needs and views of our wealth creators and vice versa. The opportunity to discuss plans and priorities is vital to achieving our shared goal of growing our economy.

Both the Scottish Executive and the Enterprise and Culture Committee of the Scottish Parliament agreed as an outcome of the latter’s inquiry into business growth that there needs to be a national consensus on growing Scotland’s economy. Although we enter a period running up to the elections in May 2007 where there will be much debate on the issues of the day, we both share the view that government, Parliament, business and trade unions must continue to strive for a common understanding on the way forward. That is something which will require a mature debate and a meeting of minds. The very fact that we, albeit representing different political parties, can jointly organise this conference is testament to our recognition of the need to work together on the priorities for business.

We don’t intend to comment at this stage on all of the points raised during the Business in the Parliament Conference. But it is important that politicians of all political persuasions as well officials in the Executive and its agencies look carefully at the views expressed by the business community and take them properly into account when considering their policies and priorities.

We are very grateful to all those that took part in this year’s Conference and to the continued support of Scotland’s business organisations and the Scottish Trades Union Congress. We also thank all of our keynote speakers for their involvement and the facilitators of this year’s discussion groups for their assistance. We are particularly grateful for the collection of reports provided by the facilitators that can be found in these proceedings and it would be remiss of us if we didn’t comment on some of the ideas they contain.

We are struck by the comments from Professor Russel Griggs that, in disseminating Scotland’s vision for the future across the globe, we cannot rely on government or economic development agencies alone. Scotland’s businesses and their staff are a vital resource in promoting Scotland worldwide.

We also agree with the observations in Professor Griggs’ report that 98% of Scotland’s companies employ fewer that 10 people and that it is the transition of these firms into larger, more profitable businesses that is critical to the growth of our economy. We must provide an environment for more of Scotland’s smaller firms to grow into companies of scale, active and located in Scotland. Part of this must come from efforts to increase the levels of investment by companies in research, development and innovation.

This point is also highlighted in Liz Cameron’s report which also noted that we need to continue to work to ensure that excellence within our Universities is fully exploited commercially if Scotland is to remain ahead of its competitors in this area. But, as her group noted, we also need to build on initiatives such as Determined to Succeed, if we are to nurture and encourage an innovative business-focussed attitude amongst our young people.

Both Niall Stuart’s and Shonaig Macpherson’s reports have highlighted the need both in government policy generally, and in the sustainable development agenda more specifically, to get both the principle and the detail right in our legislation and policies. We note the frustrations amongst some in the business community that the principle behind our efforts is often sound but the detail needs to be implemented sensitively and timeously. We agree, and plan to look carefully at the points raised in this year’s conference on procurement, getting the planning system right, on measures to support R&D and the regulatory environment.

Grahame Smith’s report rightly emphasises the importance of providing the workforce of the future with the right mix of skills and attitudes, especially a spirit of entrepreneurship, to succeed. But he also stresses the clear need to remain committed to investing in improving the skills of our existing workforce if we are going to maintain and improve our competitive position.

We also share many of the views expressed in Iain Macmillan’s report in relation to the critical importance of the need to develop Scotland’s infrastructure and improve the connectivity of air, road and rail. In recent weeks government has acted on concerns in relation to the Firth of Forth.

The group could not have put in better when he indicated that there is a political side to infrastructure which is about delivering on economic objectives. As the group observed, if everything becomes a priority it means nothing is a priority.

We share this view and would not restrict it to only infrastructure issues. Achieving an informed vision of our shared priorities for, and respective roles in, growing Scotland’s economy is precisely why we have, and will continue to support, the Business in Parliament Conference.”

PROGRAMME

Thursday 2nd November, 2006
Evening Reception at the Scottish Parliament
6.30pm
7.00pm
7.45pm
9.30pm / Guests arrive
Welcome - The Rt. Hon George Reid MSP, The Presiding Officer
An evening with
Sir Tom Farmer CBE KCSG
Hosted by Sarah Smith, journalist and broadcaster
Drinks Reception in the Garden Lobby
Close
Friday 3rd November, 2006
8.15am / Arrival and Registration with refreshments and a light breakfast
9.15am / Welcome – The Rt. Hon George Reid MSP, The Presiding Officer
9.25am / Opening Address - The Deputy First Minister and Minister for Enterprise and Lifelong Learning, Nicol Stephen MSP
Alex Neil MSP, Convener of the Enterprise and Culture Committee
9.45am / Business Futures & Future Businesses – challenges of the 21st Century
 Mary Dickson, Managing Director, First ScotRail
 Sir Alan Langlands, Principal & Vice Chancellor, University of Dundee
 Jim McColl, Chairman & Chief Executive, Clyde Blowers
 David Milne, CEO, Wolfson Microelectronics
10.25am / Discussion Sessions
12pm / Feedback and Open Forum

12.35pm

/ Scotland’s place in the world
Gerry Rice, Deputy Director of Communications, International Monetary Fund, former Communications Director, The World Bank
12.55pm /

Closing speech - The First Minister, The Rt. Hon Jack McConnell

1.10pm / Closing Remarks and Close
1.15pm / Lunch

ALPHABETICAL LIST OF DELEGATES

1

ABrian Adam MSP (Aberdeen North) (SNP)

Mr Mark Adams (Microsoft)

Bill Aitken MSP (Glasgow) (Con)

Mr Hugh Aitken (Sun Microsystems Ltd)

Mr Neil Anderson (Scottish and Newcastle UK)

Mr Erik Archer (Fullex Architectural Aluminium Ltd)

BJackie Baillie MSP (Dumbarton) (Lab)

Shiona Baird MSP (North East Scotland) (Green)

Richard Baker MSP (North East Scotland) (Lab)

Mr Edgar Balfour (Orkney Meat Ltd)

Mark Ballard MSP (Lothians) (Green)

Mr John Banister (Ackergill Tower)

Scott Barrie MSP (Dunfermline West) (Lab)

Mr Mark Batho (Scottish Executive)

Mr David Bleiman (Scottish Trades Union Congress)

Professor D Jane Bower (Centre for Enterprise Management)

Mr Stephen Boyd (Scottish Trades Union Congress)

Rhona Brankin MSP (Deputy Minister for Environment and Rural Development)

Mr Tom Brock (Scottish Seabird Centre)

Mr Ted Brocklebank MSP (Mid Scotland and Fife) (Con)

Mr Derek Brown (The Edrington Group)

Mr George Brown (Brown and Brown Consultants)

Derek Brownlee MSP (South of Scotland) (Con)

CMs Lezley Cameron (Lezley M Cameron DL)

Ms Liz Cameron (Scottish Chamber of Commerce)

Mr Tony Cameron (Scottish Prison Service)

Mr Peter Campbell (D.H. McKellar)

Mr Michael Cannon (Scottish Enterprise)

Mr Duncan Cantor (HBOS plc)

Mr David Carrick (Memex Technology Ltd)

Mr David Chalmers (Federation of Small Businesses in Scotland)

Mr George Chalmers (REM Ltd)

Mr Keith Chapman (Curtis Fine Papers Limited)

Mr John Clark (John Clark Motor Group)

Mr Alan Craig (Caledonian Financial Planning)

Mr Bruce Crawford MSP (Mid Scotland and Fife) (SNP)

Mr Jim Crawford (Dowhill Country Fayre & J.C. Energy)

Mr Sandy Cumming CBE (Highlands and Islands Enterprise)

DMr Graeme Dalziel (Dunfermline Building Society)

Mr Bruce Davidson (Loch Fyne Oysters)

Mr David Davidson MSP (North East Scotland) (Con)

Mr Niall Davidson (Scottish Council for Development and Industry)

Mr Ben Dawson (Ben Dawson Furniture)

Susan Deacon MSP (Edinburgh East and Musselburgh) (Lab)

Mr John Devine (Greater Easterhouse Development Co)

Mr Brendan Dick (BT Scotland)

Mr Graeme Dickson (Scottish Executive)

Ms Mary Dickson (First ScotRail)

Mr Domhnall Dods (THUS plc)

Mr Bryan Donaghey (Diageo Global Supply)

Mr Harry Donaldson (Scottish Trades Union Congress)

Mr Brian Donnelly (Devro Scotland)

Mr Alastair Dorward (Perthshire Chamber of Commerce)

EMr Gerard Eadie (CR Smith)

Mr George Eadie (CR Smith)

Ms Helen Eadie MSP (Dunfermline East) (Lab)

Mr Gerry Edwards (National Semiconductors (UK) Ltd)

Dr Janet Egdell (Transport Scotland)

Fergus Ewing MSP (Inverness East, Nairn and Lochaber) (SNP)

Mr Ian A Ewing (Sovereign Homemaker)

FLinda Fabiani MSP (Central Scotland) (SNP)

Mr Martin Fairbairn (Scottish Further & Higher Education Funding Council)

Mr Dominic Fairlie (Scotia Homes Ltd)

Sir Tom Farmer CBE KCSG (Maidencraig Investments)

Mr Iain Ferguson (CBI Scotland)

Alex Fergusson MSP (Galloway and Upper Nithsdale) (Con)

Ross Finnie MSP (Minister for Environment and Rural Development)

Mr Hamish Fraser (Federation of Small Businesses in Scotland)

Murdo Fraser MSP (Mid Scotland and Fife) (Con)

Mr Harry Frew (Scottish Trades Union Congress)

GMr Peter Gardner (Annick Manufacturing Ltd)

Mr Jim Garrity (Pollock Credit Union)

Ms Moira Gash (Federation of Snall Businesses in Scotland)

Mr David Gibb (Wavegen)

Rob Gibson MSP (Highlands and Islands) (SNP)

Karen Gillon MSP (Clydesdale) (Lab)

Marlyn Glen MSP (North East Scotland) (Lab)

Miss Annabel Goldie MSP (West of Scotland) (Con)

Mr Alan Gordon (Stena Line)

Mr Charlie Gordon MSP (Glasgow Cathcart) (Lab)

Mr David Gordon (Windsave Ltd)

Dr Andrew Goudie (Scottish Executive)

Mr Keith Gowenlock (WSP Development & Transportation)

Mr Iain Graham (Graham Technology plc)

Mr Steve Graham (Scottish Manufacturing Advisory Service)

Christine Grahame MSP (South of Scotland) (SNP)

Mr Paul Grant (Mackays Ltd)

Mr Richard Grant (BP)

Mr Douglas Greig (Scottish Executive)

Professor Russel Griggs (Imes Group Ltd)

HRobin Harper MSP (Lothians) (Green)

Mr Stephen Harwood (Balumbie Castle Golf Club)

Mr Patrick Haynes (Thus plc)

Mr Mark Hedley (Scotchem Ltd)

Mr Phil Henderson (Scottish Power)

Hugh Henry MSP (Deputy Minister for Justice)

Mr Gavin Hewitt (Scotch Whisky Association)

Mr Ron Hewitt (Edinburgh Chamber of Commerce)

Mr Pete Higgins (CGI Media Ltd)

Mr John Howie (Babcock Naval Services)

Mr Martin Hunter (Federation of Small Businesses in Scotland)

JMr Allan James (Semefab)

Cathy Jamieson MSP (Minister for Justice)

Alex Johnstone MSP (North East Scotland) (Con)

KMr John Keenan (Scottish Trades Union Congress)

Mr Bob Keiller (PSN)

Ms Fiona Killen (Anderson Strathern)

Mr Billy Kirkwood (RDK Construction/Robert Ryan)

Mr Aydin Kurt-Elli (Lumison)

LMr Alistair Lamont (Wamcal Ltd)

Johann Lamont MSP (Deputy Minister for Communities)

Sir Alan Langlands (University of Dundee)

Mr John Langlands (British Polythene Industries)

Mr Bob Leitch (Ayrshire Chamber of Commerce)

Ms Liz Lewis (Scottish Executive)

Mr Namasiku Liandu (Scottish Trades Union Congress)

Mr David Lonsdale (CBI Scotland)

Ms Alison Loudon (NXD Recruitment)

Mr Keith Lough (Composite Energy)

Ms Susan Love (Federation of Small Businesses)

Dr Janet Lowe (Skills Committee)

George Lyon MSP (Deputy Minister for Finance and Public Sector Reform and Deputy Minister for Parliamentary Business)

Mr Inglis Lyon (Highlands & Islands Airports Ltd)

MMs Margo MacDonald MSP (Lothians) (Independent)

Mr Iain MacGregor (Vested Interest Design Ltd)

Mr Rory Machail (Federation of Small Businesses in Scotland)

Mr Maitland Mackie (Mackie’s of Scotland)

Mr Murdo MacLeod (MacLeod Construction Ltd)

Mr John Macpherson (Alloa Hire Centre Ltd)

Ms Shonaig Macpherson (Scottish Council for Development and Industry)

Mr Graham MacQueen (MacQueen Bros. Removals & Storage)

Mr Warrick Malcolm (Society of British Aerospace Companies)

Ms Christine Manson (Simply Organic)

Paul Martin MSP (Glasgow Springburn) (Lab)

Mr John Mason (Scottish Executive)

Jim Mather MSP (Highlands and Islands) (SNP)

Michael Matheson MSP (Central Scotland) (SNP)

Christine May MSP (Central Fife) (Lab)

Mr Robert McAlpine (Hydrasun Group Ltd)

Mr Tom McCabe MSP (Minister for Finance and Public Service Reform)

Mr John McClelland CBE (Scottish Funding Council)

Mr Jim McColl (Clyde Blowers Ltd)

Rt Hon Jack McConnell MSP (First Minister)

Ms Claire McCormick

Ms Leona McDermid (HISEZ)

Mr Tom McGhee (Spark of Genius)

Mr David McGinley (Babcock Engineering Services)

Jamie McGrigor MSP (Highlands and Islands) (Con)

Mr David McIntosh (BAA Glasgow)

Mr Dominic McKay (Chivas Brothers)

Mr Ian McKay (Royal Mail Group plc)

Ms Flora McLean (Scottish Food and Drink Federation)

Mr Norrie McLean (Scottish Food and Drink Federation)

David McLetchie MSP (Edinburgh Pentlands) (Con)

Mr Iain McMillan CBE (CBI Scotland)

Mr Duncan McNeil MSP (Greenock and Inverclyde) (Lab)

Ms Joanne Miller (Federation of Small Businesses in Scotland)

Mr David Milne (Wolfson Microelectronics plc)

Mrs Nanette Milne MSP (North East Scotland) (Con)

Mr Alan Mitchell (CBI Scotland)

Mr Bill Mitchell (Greenock Chamber of Commerce)

Mr Gordon Mitchell (Caledonian Paper)

Mrs Nosheena Mobarik OBE (M Computer Technologies)

Mr Alasdair Morrison MSP (Western Isles) (Lab)

Mr Paul Motley (European in Scotland)

Mr Dave Moxham (STUC)

Bristow Muldoon MSP (Livingston) (Lab)

Mr David D Murray (Charlotte Capital)

NAlex Neil MSP (Central Scotland) (SNP)

Ms Sarah Neil (Database Business Systems Ltd)

Mr Douglas Niven (Integrated Marketing Associates)

OMr John O’Neill (Strathclyde Homes)

PMr Jack Perry (Scottish Enterprise)

Dave Petrie MSP (Highlands and Islands) (Con)

Mr Andrew Pinkerton (Construction Industry Group)

Ms Aileen Ponton (Sector Skills Development Agency)

Mr Iain Provan (Direct Telecom, East Renfrewshire Chamber of Commerce)

Mr Dacre Purchase (Scottish Coal Company Ltd)

Ms Polly Purvis (ScotlandIS)

RMr Hugh Raven (Soil Association Scotland)

Rt Hon George Reid (Presiding Officer)

Mr Gerry Rice (International Monetary Fund)

Ms Maura Rice

Ms Nicola Richards (Columbus 1400)

Mr William Roe (Highlands and Islands Enterprise)

Mr Kenneth Ross (Elphinstone Group)

Mr Geoff Runcie (Aberdeen Chamber of Commerce)

Mr Jamie Russell (Tree of Knowledge Ltd)

Mr Peter Russell (Scottish Executive)

Mr Bill Rutherford (Powerall Systems Ltd)

Mr Philip Rycroft (Scottish Executive)

SMr Stephane Sallmard (Optos plc)

Tavish Scott MSP (Minister for Transport)

Mr Hugh Scullion (Scottish Trades Union Congress)

Mr John Seddon (Maxwell Conversions)

Mr Peter Selmen (Elphinstone)

Mr Wilson Shaw (BCA Insulation)

Ms Anita Shelton (Scottish Trades Union Congress)

Mr Norman Simpson (Renfrewshire Chamber of Commerce Ltd)

Professor Charles P Skene OBE (Skene Group)

Mr Duncan Skinner (Production Services Network Ltd)

Mr Grahame Smith (Scottish Trades Union Congress)

Margaret Smith MSP (Edinburgh West) (LD)

Mr Peter Smith (Diageo)

Ms Sarah Smith (journalist and broadcaster

Mr William Smith (WSP Development and Transportation)

Mr Martin Stepek (Scottish Family Business Association)

Nicol Stephen MSP (Deputy First Minister and Minister for Enterprise and Lifelong Learning)

Mr George Stevenson (R Mathieson & Sons Ltd)

Stewart Stevenson MSP (Banff and Buchan) (SNP)

Mr Tim Steward (Federation of Small Businesses in Scotland)

Mr Tom Stokes (Evans Easyspace)

Mr Jamie Stone MSP (Caithness, Sutherland and Easter Ross) (LD)

Mr Charles Struthers (Enstone Thistle Ltd)

Mr Graham Struthers (Federation of Small Businesses in Scotland)

Mr Niall Stuart (Federation of Small Businesses)

Ms Winifred Sutherland (Federation of Small Businesses in Scotland)

Mr John Swinney MSP (North Tayside) (SNP)

TMr Miles Templeman (Institute of Directors)

Mr Ivor S Tiefenbrun MBE (Linn Products Ltd)

Mr Murray Tosh MSP (West of Scotland) (Con)

UMs Linda Urquhart (Morton Fraser LLP)

VMr Brian Veitch (Arup Scotland)

Mr Henk Verweijmeren (Invisible Heating Systems Scotland)

WMr Derek Walker (The Tree of Knowledge)

Mr Jim Wallace MSP (Orkney) (LD)

Sir John Ward (Scottish Enterprise)

Mr Andrew Watson (Federation of Small Businesses in Scotland)

Mr David Watson (David Watson)

Mr David Watt (Institute of Directors)

Ms Maureen Watt MSP (North East Scotland) (SNP)

Mrs Jo Wedlock (Homecoming Scotland)

Mr Alfred Weir (NVT Group Ltd)

Mr Roger White (AG Barr plc))

Mr Gareth Williams (Scottish Council for Development and Industry)

Mr Tim Williams (Millstream Associates Ltd)

Mr Andy Willox OBE (Federation of Small Businesses in Scotland)