The oil and gas sector is a global business, and Aberdeen competes with every other global energy city to attract investment and a skilled workforce.
Despite the current low oil price, the North-east can continue to deliver for the Scottish and UK economy.
But Chamber research consistently shows that lack of infrastructure is the North-east’s greatest competitive weakness.
A step forward was the recent milestone in the Aberdeen City Region Deal, which is a vision for the region’s future, looking at four key policy areas of housing, connectivity, innovation and internationalisation.
Aberdeen is projected to have the largest population growth of Scotland’s Strategic Development Plan areas, with a 35% increase in households between 2010 and 2035.
However while the Strategic Development Plan for the region allocates housing development, it does not establish the number of affordable homes to be delivered.
In addition, the current land allocation system does not enable sufficient housing development in areas with fast business growth.
A successful city region deal can fuel housing growth.
Connectivity is crucially important. To become a thriving business hub, we need better connections by road and rail to neighbouring cities, London and the rest of the world.
A successful city region deal will get us closer to people and markets.
Access to high-speed broadband is reported as very important or critical by 86% of respondents, but in a Centre for Cities study in 2015, Aberdeen came in 61st out of 63 UK cities, with one of the lowest superfast broadband penetration rates in the country.
A successful city region deal will get us better connected.
Innovation and internationalisation are the final two pillars of the deal, and both will be vital to develop new products and services in our key industries of oil and gas, food and drink, tourism and energy research.
A successful city region deal will grow exports.
In the meantime, more joined-up regional support is needed for exporters right now.
A challenging local market should be the impetus for SMEs to take their innovations and oil and gas technology to high-growth overseas markets.
Our Chamber supports the devolution of funding from Holyrood to a local level - it’s what our members want.
We would encourage government to focus investment on the growth of key industries and promising enterprises.
Concentrating spending in areas of economic deprivation usually results in a low success rates. Backing a winner now, will create and retain jobs for the region and provide the resources we need as a nation.
To achieve this, development of the region needs to be evaluated beyond five-year political cycles.
The Aberdeen City Region Deal will not go ahead unless there is support from Scottish and UK governments.
Westminster is moving forward on city deals for the Northern Powerhouse, but Holyrood still needs to shift its gaze away from the Central Belt towards other regions of productivity.
Most importantly, both will have to work together if they want to empower regions to invest in their own future.
- Liam Smyth is membership director at Aberdeen & Grampian Chamber of Commerce.
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