South of Scotland Enterprise Bill passes stage 1published at 17:01 Greenwich Mean Time 26 March 2019
MSPs unanimously agree the general principles of the South of Scotland Enterprise Bill, external.
The economy committee continues its inquiry into construction and the economy
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MSPs debate the South of Scotland Enterprise Bill
A Tory MSP leads a debate on financial scam prevention
Louise Wilson and Craig Hutchison
MSPs unanimously agree the general principles of the South of Scotland Enterprise Bill, external.
A string of key economic issues facing the south of Scotland have been taken to Deputy First Minister John Swinney.
He met representatives from Dumfries and Galloway Council, Scottish Borders Council and Scottish Enterprise who make up the South of Scotland Alliance.
Brexit, transport and demographic challenges were among the areas discussed in Dumfries.
Mr Swinney said the meeting was a "welcome opportunity" to talk about a number of "shared concerns".
Funding commitments of more than £300m have been announced for the Borderlands Growth Deal.
The Scottish government first revealed backing to the tune of £85m over a 10-year period.
In his Spring Statement, Chancellor Philip Hammond then unveiled a UK government commitment of £260m.
The proposed deal covers the council areas of Dumfries and Galloway, Scottish Borders, Northumberland, Cumbria and Carlisle City.
The new enterprise agency was announced in June 2017 to "meet the economic needs of communities" in the south of Scotland.
The move was part of the final report from the Scottish government's enterprise and skills review containing a range of measures to help business.
Then Economy Secretary Keith Brown said it showed how to "transform the performance" of the economy.
He said it recognised the need for dedicated support to southern Scotland as already offered in the Highlands.
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Lib Dem MSP Mike Rumbles begins saying that, since he is a north east MSP, an enterprise agency for this region might be an idea for a future bill!
Turning to the bill at hand, Mr Rumbles highlights a degree of concern from the public about how ministers will go about choosing who will lead to new enterprise agency given the need for a range of skills.
How will the cabinet secretary ensure the membership is right and that the board is accountable to the local people they serve, he asks.
"This is a good bill," the Lib Dem concludes.
Green MSP John Finnie says the scrutiny of legislation shows the parliament is at its best, praising the REC report, external.
Mr Finnie adds the Scottish Greens will be supporting the bill at decision time, when its general principles will be voted on.
He points out this is not a competition between the north and the south, calling for collaboration.
The Green MSP says the challenges will remain and must be worked upon.
Mr Smyth says while his party will support the bill, it will also seek to amend it going forward.
We believe more direction around inclusive growth is needed and there should be reference to community ownership, he argues.
Enhancing transport networks and digital connectivity should also be a key aim of the new agency, the Labour MSP insists.
Mr Smyth agrees with other speakers that the agency must be accountable to locals and he suggests this is not obvious in the legislation as currently drafted.
More than 100 jobs are set to be created at the former Pinneys of Scotland plant in Annan, the Scottish government has announced.
The factory in Dumfries and Galloway has been bought by food processing company Bhagat Holdings Limited.
It said production would begin in the autumn.
The area was left devastated when it was announced last year that the Pinneys factory was being closedby parent company Young's.
Labour MSP Colin Smyth says it is simply unfair a business in the Highlands can reach support but the same business does not receive the same support in the south of Scotland.
It was clear to him that the south of Scotland was a forgotten region and the lowest paid in the country, Mr Smyth explains.
Low growth is also an issue, leading to many young people leaving the area, says the Labour MSP, leading to a demographic challenge.
He says when an "economic tsunami" like the closure of Pinneys hits, the effects can be devastating.
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Mr Carson says there are people who live in the south of Scotland but work in Carlisle, meaning their take home pay will be less than colleagues.
He says this will not attract the working age people the region requires.
The Tory MSP goes on to express concern about centralisation and local accountability.
The board must be led by individuals with a range of skills and experience to deliver on its full potential, he adds.
The Scottish Conservatives support this bill but he says it must be accompanied by clear communication to raise awareness, Mr Carson concludes.
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Tory MSP Finlay Carson opens the debate for the Scottish Conservatives saying, as the constituency representative for Galloway and West Dumfries, he backs a new agency and welcomes this bill.
Mr Carson welcomes the fact the SNP have listened to Tory calls for this agency.
He points to the lack of sustained growth in the south of Scotland as making the case for the enterprise body.
Creating the fertile ground for growth must be done in tandem with a suitable tax policy, he argues.
People close to the border have to pay higher taxes than those in Carlisle, insists Mr Carson, calling the tax policy of the Scottish government misguided.
The new agency must have sufficient flexibility to operate outwith its geographic boundaries and to work with other agencies, he states.
He welcomes the cabinet secretary's confirmation that this will happen.
There was strong support for collocating the new agency with other bodies to ensure there is a one-stop shop approach, Mr Mountain states.
A mechanism is required to ensure genuine local accountability he argues and he urges the government to bring forward an amendment to allow the agency to gain feedback.
Plans to create a south of Scotland enterprise agency have won the backing of MSPs.
Holyrood's rural economy committee said there was "no doubt" the body was needed and had "overwhelming support".
They said the area faced a number of challenges, including an aging population as well as transport and digital connectivity issues.
The committee identified a number of challenges facing the economy in Dumfries and Galloway and the Scottish Borders.
Rural Economy and Connectivity Committee convener Edward Mountain says the committee fully supports the creation of a new agency for the south of Scotland.
Mr Mountain details the external evidence gathering the committee carried out in the south of Scotland, expressing gratitude to all who participated.
Overall there was strong support for the new agency, he explains, reflected in the oral and written evidence MSPs received.
There is no doubt a new enterprise agency in the south is required, says Mr Mountain.