Economic leader promises a step-change in region�s economic strategy after �difficult period� for city
By John Phelps

TOM Smith, the newly appointed chairman of the Aberdeen City and Shire Economic Forum (Acsef), has promised to use the city's recent spate of bad headlines as a "catalyst for step-change" as the private sector consolidated its unique leadership role in the region's economic strategy.

Managing director of Aberdeen telecoms company Nessco, Smith is also a former chief executive of Aberdeen and Grampian Chamber of Commerce and chairman of Oil & Gas UK. He told the Sunday Herald that the city's financial crisis, and the perceived mishandling of the Trump golf development application, had made Acsef "more determined" to give strategic leadership to ensure the continued economic prosperity of Scotland's highest earning region.

"On occasions you need to be taken to the edge and look over, and this crisis was the catalyst," he said.

"This has been a difficult period for the council and the residents of Aberdeen, and we can either just wring our hands or take it as a tremendous opportunity."

Smith was careful to praise the contribution of Aberdeen public sector players, particularly Scottish Enterprise, in formulating the region's strategy and in co-ordinating the "fragmented" private sector players. But the Aberdeen example, which has been publicly praised by the Cabinet secretary for finance John Swinney, is being seen by development professionals elsewhere in Scotland as a pioneering case of private sector leadership for delivering a region-wide economic programme.

Acsef's new action plan for the region was arrived at through consultation with 1200 businesses in Aberdeen City and Shire. It envisages a 2.5% growth in gross value added, achieved through the energy, life sciences, tourism and food and drink sectors. Its objectives include improving transport infrastructure, increasing skills supply, "anchoring the oil and gas industry", redeveloping the city centre, and improving planning efficiency.

"We now have an action plan leading up to 2025 that will deliver the vision laid out in the economic manifesto published last year," Smith said.

"We have described what needs to be done, how we can do it, who needs to do it and when it needs to be done."

Acsef, the first partnership in the UK to feature public and private sector players working in close collaboration, held its second "summit" last week. It now aims to attract about £800 million in investment, about 60% of it from the private sector.

"Before, it was all storming and forming', now it's crystallising'. There is an appreciation that there is a plan, a vision that reflects the aspirations of the audience. We are articulating a vision and setting out a road map," said Smith.

Aberdeen's civic leadership has been firmly on the back foot in recent months following a scandal over the selling of council properties for £5.5m less than market value. The Liberal Democrat-led council was the subject of a scathing report by the Accounts Commission, which claimed the city did not have the capacity to deal with its own financial mess and urged it to seek "appropriate external assistance". Liberal Democrat council leader Kate Dean has refused calls to resign, claiming the backing of council colleagues.

Aberdeenshire's reputation as a business-friendly destination was also heavily damaged when a proposed £1bn development by the US tycoon Donald Trump, central to Acsef's tourism strategy, was rejected on the casting vote of Liberal Democrat councillor Martin Ford. He was subsequently forced to resign as sub-committee chairman.

Trump flies to Scotland tomorrow. After a visit to his mother's birthplace in Stornoway, he will take part in a public local inquiry ordered by Scottish ministers.