Warning Scotland could become Third World state

Group Political Editor

Saturday 9 June 2012

BILLIONAIRE businessman Sir Tom Hunter has warned Scotland must raise its game or risk becoming a Third World nation.

STARK WARNING: Entrepreneur Sir Tom Hunter addresses the Business in the Parliament conference at Holyrood. Picture: Andrew Cowan/PA

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Brian Currie Political Editor

Scotland's second richest man told other business leaders and politicians, including First Minister Alex Salmond, they had better "think again" unless they were happy to accept a 1% growth rate and be compared to other European countries struggling through economic crises.

Sir Tom said the consequence of "ageing demographics, low business birth rate and unemployment growth will beat us down into a Third World nation in no time at all". He added: "We need to change, we need to raise our game – all of us, business, education, trade unions and the third sector. Tinkering round the edges isn't going to do it. We need to think differently."Sir Tom, who made his fortune through his Sports Division chain, said "marginal growth cannot and will not secure our position as a leading small nation".The philanthropist, speaking yesterday at the Business in the Parliament conference at Holyrood, also warned against the effect austerity measures had on an economy trying to recover from recession.He said government had to drive economic renewal through infrastructure investment. "We have never emerged from recession that has not been construction-led. We need to drive stimulus into the economy, not squeeze it out of it," he added.Sir Tom also said more must be done to boost the business start-up rate, more help should be given to young entrepreneurs, and there should be more support for the education system."Scotland should be a nation where renewal is at our core, innovation our mantra, education our rockbed," he said.He highlighted figures which showed Scotland's business birth rate of 36 new registrations per 10,000 adults was still the same as it was in 2003 and urged more support for business "hatcheries" such as the not-for-profit initiative Entrepreneurial Spark which offers free workspace, IT access and mentoring and advice from its headquarters, The Glasgow Hatchery. Quoting Google founder Sergey Brin, who said the competitor he feared most was probably sitting in a bedsit in China or a garage in America, Sir Tom asked: "Why not a bedsit in Scotland?"He also said academia should stop "turning their nose up at vocational education" and train people to fill skills gaps rather than just pass exams. He asked: "Why not incentivise the best teachers to teach in our hardest schools. We need to innovate, imagine and deliver world-class teachers for world-class pupils where postcodes do not dictate the type of education a child may or may not receive."Sir Tom also claimed Scotland should be responsible for its own finances. "Quite simply, we need to be responsible for what we raise in tax and what we spend in tax. I don't know if we need independence yet. I'm still waiting to hear both sides of the argument. Hopefully, we won't have to wait too long. But I do know we need to have that debate."Despite his warnings that government and businesses had to do more to secure Scotland's future, he also had an optimistic message. He said: "The beauty of Scotland is that we are small, we're nimble. We're a speedboat, if you like, against the large supertankers that are America, India and China. We can run rings round about them if we have the ambition, drive and determination to do so."Mr Salmond, who also addressed the conference, announced the Scottish Government was to give an additional £1million to the Prince's Trust Youth Business Scotland.The trust's loan fund offers grants of up to £5000 to people aged 18 to 25 who wish to set up or grow their own business. The First Minister said the money would build on the Government's work to tackle youth unemployment.Other guests included Scotland's richest man, Jim McColl, founder and chief executive of Clyde Blowers, and leaders from the food, drinks, oil and banking industries. CBI Scotland, the Institute of Directors and Edinburgh Chamber of Commerce were also represented.

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Warning Scotland could become Third World state

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