Chamber and committees

I thank Ed Poole and Guto Ifan for their submission, which is really helpful. Figures 3.2 and 3.3 drew my attention. What is happening in Wales is almost a mirror image of what is happening in Scotland. You have mentioned that many risks that Scotland has are outwith our control. The decline in oil and gas has been mentioned, but I guess that there could be other factors that would draw the figures down. Is that right?

That might also inform policy changes to try to stop the reduction in budget that we will receive over the next few years.

This follows on from Daniel Johnson’s question about the fact that, to keep level, our economy would have to grow by the same amount as the rest of the UK. Is that the same for Wales? When we look at the graph, we see that the net effect of its tax devolution is positive, but ours is negative. Is Wales growing its economy at the same or higher rate than the rest of the UK? Is the rate higher than Scotland’s?

I am just trying to understand the issue. Looking at the graphs, we see that there has been a positive impact for Wales. Does that mean that its economy is growing faster than Scotland’s? What does Scotland need to do to try to halt the decline of the benefits of tax devolution?

Maybe one of the other Davids would like to answer.

It is good to hear that the Welsh Government is doing a detailed analysis to try to understand those figures. I guess that the Scottish Government should do something similar to try to understand why the figures here are going in a negative direction.

Would I be right in thinking that our current model was selected probably because the Scottish Government had more appetite for risk than the Welsh Government did when it was negotiating its block grant adjustments?

I will start my contribution by agreeing with the first part of the Government’s motion. The resilience and innovation that employers and workers have shown through the pandemic in keeping much of our economy open should be recognised, so I, too, thank everyone who has played their part.

As we have heard today, labour markets across the world are undergoing significant pressures and changes. The United Kingdom is no different from what can be seen in the US, Europe, China and beyond.

However, there are differences within the UK, right here at home, thanks to 14 years of SNP inaction and failed economic policy. Our tax take per person is lower than the take in the rest of the UK, our welfare bill is rising, our working population is falling in comparison with that in the rest of the UK, economic growth is lower and our recovery is slower than recovery in the rest of the UK is.

No, I will make some progress first.

As we say in our amendment, that has been highlighted by forecast groups, and must be addressed by the devolved Government as a matter of urgency. However, instead of attracting investment and higher-paid jobs, the Government seems to be intent on driving business away. Decisions such as turning its back on the energy industry do nothing to reverse that decline. Another lost opportunity is the Government’s decision to block free ports in Scotland. We lose out, while investment goes to England.

I hope that we have seen another U-turn from the SNP Government, because so far it has not engaged with the UK Government like the other regions across England have. If that is now the case, I welcome that news.

Jobs and investment have been lost to Aberdeen, all because the devolved Government wants to pick a political fight. It is a disgrace. Another motion for debate has been brought before us by a tired Government that is attempting to pat itself on the back but is, in fact, doing the opposite by highlighting its incompetence. That is just like when Alex Salmond promised many years ago that there would, with the SNP, be thousands of green jobs, none of which have come to fruition.

Members from across the chamber have made interesting points. I think that we all agree that immigration impacts on our economy—but so do many other factors. As Daniel Johnson and Liz Smith pointed out, the economy has long-term underlying issues that existed long before Brexit or Covid.

The cabinet secretary ignored the intervention by Murdo Fraser about labour shortages in Europe and how the Accor group of hotels in France cannot get staff. Freedom of movement is therefore obviously not the only issue, when places in France also have labour shortages.

As Liz Smith pointed out, SNP ministers have refused to listen to businesses, failed to the listen to the Scottish Fiscal Commission and failed to invest in skills and productivity.

I will, at the end of this part of my speech.

The mayor of Tees Valley said:

“We have attracted investors who were originally looking at Scotland when some areas in Scotland were looking at freeport status, and when they decided not to move forward with the current UK freeport policy”

they

“have actually abandoned Scotland.”