Chamber and committees

Although the Executive does not set specific targets for growth in R&D expenditure relative to GDP, it has a range of policies to encourage R&D and commercialisation activity in Scotland. The Executive is committed to improving Scotland’s position relative to our main competitors.

Member states have still to agree the details of the Commission’s proposals on Joint Technology Initiatives under European Framework Programme 7 and whether or not they are prepared to commit to funding them.

The Executive and its agencies are working with the UK government to make sure that the FP7 proposals as a whole are satisfactory for the UK and that Scotland will be in a position to take best advantage when details are finally agreed.

All departments within the Executive play a part in determining and contributing to economic development in Scotland. Greater economic prosperity is secured through the efforts and contributions of a wide range of individuals and bodies, working in an integrated and collaborative manner.

Full details of the composition of planned public expenditure in Scotland for the years 2005-06 to 2007-08 are contained in the 2004 spending review publication:

 Building a Better Scotland: Spending Proposals 2005-2008: Enterprise, Opportunity, Fairness. This is available at http://www.scotland.gov.uk/library5/enterprise/babs.pdf.

Business taxation issues are mainly reserved. The Executive recently announced a reduction in business rates and further details will be issued shortly. These changes will help to strengthen growth potential.

National Statistics came into force in June 2000 and the Code of Practice was issued in 2002. Information on breaches of the Code of Practice are published each year in the Chief Statistician’s Annual Report, which can be accessed via the links below. Six breaches occurred between 2002-03 and 2003-04. All but one of these breaches occurred because information was released before publication date, and were not incidents where information was amended or withheld. The remaining breach was due to a technical problem resulting in data not being available on time.

2001-02: http://www.scotland.gov.uk/library5/finance/chiefstats0102.pdf.

Although the code of practice was in draft at this time, it was reported that, as in the 2001 report, there were no breaches of the principles of the code.

2002-03: http://www.scotland.gov.uk/Resource/Doc/933/0004381.pdf.

Three breaches were reported.

2003-04: http://www.scotland.gov.uk/Publications/2005/04/AnnualReport2004.

Three breaches were reported.

2004-05: The Chief Statistician’s 2005 Annual Report is due to published later this year and will report that there were no breaches in 2004-05.

2005-06: The Chief Statistician is currently investigating a recent breach of the Code of Practice.

Editorial responsibility forthe Executive’s annual Government Expenditure and Revenue in Scotland (GERS)publication resides with the Office of the Chief Economic Adviser, which is partof the Office of the Permanent Secretary’s Department. There are no plans to alterthis arrangement.

The economic challenges facingScotland with respect to the Lisbon agenda of growth and employment are similar to thoseidentified and discussed in The Framework for Economic Development in Scotland(FEDS). These relate primarily to the productivity challenge facing the Scottisheconomy and, in particular, closing the productivity gap between Scotland andthe world’s leading advanced economies. FEDS also highlights the importance of researchand development and innovation as a key driver of productivity and economic development,which is also a Lisbon objective.

In terms of employment, Scotland is performingvery well by European standards. Over 150,000 people have entered employment sincethe creation of the Scottish Parliament and our employment rate is in excess of the current 2010 Lisbon target and among the highest in the European Union.

The Scottish Executive will notproduce a separatte national reform programme. National reform programmes are beingproduced at member state level. The UK position on economic reform is consistent with that of the Executive.

The refocus of the Lisbon Strategytowards growth and employment aligns policy priorities in the EU with those thatcurrently exist in the UK and in Scotland. The Executive’s priorities are outlined in the Frameworkfor Economic Development in Scotland and A Smart,Successful Scotland.

National reform programmes arebeing produced at member state level. The UK position on economic reform is consistent with that of the Executive. The Lisbon Strategy and the renewed EU focus on growth and jobs fitswell with existing Executive policy, as set out in The Framework for EconomicDevelopment in Scotland (FEDS) and the Executive’s Enterprise strategy ASmart Successful Scotland (SSS). Both of these documents have been informedby discussion with stakeholders and through regular consultation with the Scottish Parliament and Parliamentary committees. The Executive also consults regularly withkey stakeholders through various forums, ensuring that all views are represented.

The UK Government consults widelywith national, regional, local and sectoral stakeholders in developing proposalsfor structural economic reform. In preparation of its national reform programme,the UK government has held an open stakeholder dialogue from 8 July to the 12 August 2005, invitingcomments and input from all stakeholders across the United Kingdomon the proposals for structural economic reform. Responses were received from theprivate, public and voluntary sectors. The Executive inputted to this process andhas on-going consultation with the UK government on the national reform programme.Many of the reforms necessary to meet the Lisbon objectives have already been implementedin the UK and in Scotland and were consulted on prior to implementation.

Total Scottish expenditure onresearch and development in Scotland was equivalent to 1.5 per cent of GDP in 2003, whichis the most recent year for which we have data. The Executive has not set specifictargets for growth in R&D expenditure relative to GDP, but is committed to improvingScotland’s position relative to our main competitors.

The new guidelines establishedin the revised Lisbon Strategy, which focus greater attention on productivity andemployment, align the Lisbon policy priorities closely with those that currently existin Scotland and the United Kingdom. The economic development prioritiesof the Executive are set out in the long-term economic strategy The Frameworkfor Economic Development in Scotland and the Executive’s Enterprise strategyA Smart, Successful Scotland (SSS).

The three key Lisbon objectivesfor growth and jobs (making Europe a moreattractive place to invest and work; knowledge and innovation for growth; and creatingmore and better jobs) fit well with the three main policy objectives of SSS (globalconnections; skills and learning; and growing business).

Global connections has a rangeof policies aimed at encouraging Scottish companies to increase their involvementin global markets and international collaborations. These policies also promoteScotland as a world class location to live, study, work and invest. The policiesrelating to the skills and learning objective aim to exploit high-skill levels,support lifelong learning, continuing workforce development and increasing economicactivity. Finally, the growing business theme promotes innovation and entrepreneurship,supporting new companies and growing business of scale.