Views
Concerted support needed for local economy - for The Inverness Courier
LAST week's announcement that the owners of Strathaird Salmon are proposing to close their factory in Inverness next year was devastating news to the 350 people who would lose their jobs if this goes forward. Everything that can be done should be done to see if this can be avoided and. But it the closure does take place, all agencies must pull together to support workers to find new jobs as quickly as possible.
The Strathaird announcement was also a bleak reminder that the economic and financial problems facing the country as a whole will also have an effect in the Highlands. The possible closure of Woolworths stores on High Streets across our area is another.
All the predictions suggest that across the country as a whole the economic prospects are grim for the next few months. But at a local level, there is much that can be done to reduce the impact and we should also remain optimistic about the long-term future of the Highland economy.
In a well-received speech to the Inverness Chamber of Commerce last week, Liberal Democrat leader Nick Clegg spelled out what needs to be done at a national level. Unfortunately, his prescription of big tax cuts for low and middle income families, reduced energy bills, and substantial investment in housing and infrastructure was not the route the Chancellor chose to go down in his pre-budget report last week.
Instead, the government decided to cut VAT temporarily by 2.5 per cent. Many economists doubt whether this will be effective, particularly as many retailers are already offering very substantial discounts.
It is to be hoped that retailers will benefit, though it is very doubtful that ordinary people will notice the benefit. Substantial and permanent cuts in income tax would be more effective and fairer.
The biggest barrier for many businesses is the attitude of banks. Many local firms have told me that they are having to put expansion on hold because the banks will not lend the money, and some have been forced into difficulties because banks have withdrawn or reduced finance at very short notice. Tens of billions of taxpayers' money have gone into bailing out banks, and the government should be forcing them to keep lending to keep the economy going. Royal Bank of Scotland — now majority owned by all of us — is doing the right thing, but others haven't followed.
If the banks can't be forced to lend, or if the government is too weak to make them, then we will have to look at whether the state itself should be lending directly. Highlands and Islands Enterprise used to provide loans to businesses in the past, and perhaps should be thinking about doing so again. Of course, it would easier for them to do so if the Scottish government reversed the reckless and destructive cut of £50 million from their budget. That money should returned now.
WINTER FESTIVAL
The Winter Festival in Inverness is a very-well timed and well-planned initiative, which should raise spirits and boost business at the same time. On Sunday evening, I took part in a fantastic parade through the city to mark St Andrew's Day. Hundreds of local people enjoyed the event and the entertainments that followed.
This sort of event shows what can be done locally to attract visitors and engage locals. All of those involved are to be congratulated — not just those in the public eye, but the unsung heroes like Gerry Reynolds and Councillor Glynis Sinclair too. The Inverness farmers market continues to be very popular, and boosts local farmers too.
These are just a few examples of the council and the local community doing its bit to boost the area.
Whatever the economic problems of the next few months and years, that spirit will ensure that we can be optimistic about the long-term future of our city.
Posted on: 02/12/2008
