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Forget supertankers, we are a speedboat



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Published Date: 14 January 2007
AS WE ponder Scotland's future, we should consider the following: in global parlance there are nations that are supertankers, taking an eternity to change and adapt, alongside various other shipping sizes all with commensurate time lags in effecting change. Sadly for Scotland, some people believe we are a supertanker - and you get the distinct impression this supertanker is not for turning any time soon.
This, fellow patriots, is precisely the attitude that frustrates me. The fact is, in boating parlance we are a speedboat, with a small crew capable of taking on all comers if only we have the confidence to accept it and get on with it.

Take China
: it currently sends one million students to university each year, is building the equivalent of a new power station weekly and is set to overtake the US as the most powerful economy in the world. We may think of China as a supertanker, but it sees itself as a speedboat, so what hope do we have?

Actually, I believe there is a great deal of hope - if we drive our economy and our public and private sectors hard in the pursuit of excellence, taking calculated risks along the way, without the constant fear of failure that underpins supertanker thinking.

I'm proud to be Scottish and proud that we Scots led the world during the Enlightenment. I also believe we can lead a new enlightenment. To do so we will need to be bold, belligerent and ballsy - messing around the edges will see our boat well and truly sunk, whereas invigorated, dynamic public and private sectors can see us lead, not follow, other nations.

This will take collective responsibility - it's not only up to politicians, businessmen, educationalists and trade unions; we are all responsible. It is hard to mobilise that collective will to get things done with an urgency that will seize Scotland's opportunities. I know from experience that this urgency can be injected, but I have also seen the frustrations as the system holds up that dynamism. In my opinion, this is not deliberate, but it does result in taking the least risky, slow-moving path of change. This is not good enough for anyone in Scotland, whatever their political hue.

This is not all about the public sector - our private sector needs to up its game, look outwards, drive international business and build big sustainable businesses. We are more than capable of doing that, as RBS, Scottish and Southern Energy, HBOS and Jim McColl's endeavours show. But we need to do far more.

For me, that's about collective engagement: delivering tomorrow's leaders today through a vibrant education system that caters to individual need, not collective paranoia over exam results.

I am apolitical. Frankly, most of the political parties seem to have good, sensible ideas. But my worry for Scotland is a political stalemate after the election that puts our speedboat into reverse. That would confine our nation to second-class citizenship for years to come. We cannot accept that.

For the sake of informed debate, let me lay out a few, I hope, challenging thoughts, many of which I hope will be built upon at a forthcoming dinner we are hosting with HBOS in Glasgow.

The absolute competitive advantage of any business, government or nation is very clear to me: people. If you have well educated, motivated people with a can-do attitude, the chances are you will win.

Our biggest threat in this respect is the not in education, employment or training (NEET) issue. Some 20% of our kids are checking out of education because it bores them rigid. Unless we address this, 12,000 to 15,000 children every year will be signing up for a lifetime of unemployment. This is a disgrace. I believe that if we gave a small group of people - and I could name them all - the applicable 20% of the education budget, they would deliver for those kids. Why not? If the system stifles delivery, free it up.

And whilst on the subject of education, how about judging university personnel against pupil success and applied research outcomes, instead of rewarding them according to the number of research papers they write?

We need more vibrant new businesses that will sustain themselves and grow beyond the critical start-up phase. Again, there is an answer - the Prince's Scottish Youth Business Trust is arguably the most efficient business builder in the world, so let's park £100m of Scottish Enterprise's annual budget there. Sticking with Scottish Enterprise, let's double the Careers Scotland budget and get those highly trained, dynamic careers officers in our schools and businesses making dynamic links between young people, necessary training and business and public sector demand.

Let's agree to place some very large bets on Scotland's future. Let's invest a minimum of £500m per annum in each of the following sectors: biotechnology, renewable energy, tourism and financial services. None of this requires more money for Scotland; it requires the re-allocation of existing funds. I'm not saying it would be easy, nor am I saying these are all the right answers. What I am saying is we need to be courageous for Scotland to succeed - same old same old with change on the margins will take us nowhere fast.

And as we consider Scotland's challenges, we should pause to recognise just how relatively easy they are. Two of the most impressive men I have ever met were confronted with two of the biggest challenges their countries had ever known. One succeeded, the other is well on his way to doing so - Nelson Mandela brought peace to a divided nation, whilst Rwanda's President Paul Kagame is successfully rebuilding a nation following 100 days of genocide that killed one million people. Their humility knows no bounds, nor does their unbridled ambition. We can all learn from them.

To quote George Bernard Shaw: "The reasonable man adapts himself to the conditions that surround him... The unreasonable man adapts surrounding conditions to himself... All progress depends on the unreasonable man."



The full article contains 1010 words and appears in Scotland On Sunday newspaper.
Page 1 of 1

  • Last Updated: 13 January 2007 7:13 PM
  • Source: Scotland On Sunday
  • Location: Scotland
  • Related Topics: Tom Hunter
 
1

The Strategist,

14/01/2007 00:57:07

Tom is wrong.. What Scottish Enterprise should really do is meet on the 5th January every year, choose 100 small companies or individuals with a good idea and send them each a cheque for £1m. Then they could go home and think of another 100 names for the following year.

2

Mev Brown,

Southhouse, Edinburgh 14/01/2007 08:56:04

I found this article painfully optimistic.

For Scotland, I fear, a holed super tanker might be a better analogy.

Both the public sector and “economic inactivity” have witnessed massive increases since Labour came to power.

Around half a million people now work for the state and approx. 25% of the Scots work force is “economically inactive”. In Glasgow the figure is around 33%.

Labour has established a dependency culture in Scotland. Too late it has realised this and, having effectively institutionalised large sections of our population, is now looking to make radical changes to the benefits system to reverse this.

Consider today’s announcement for “fit-for-work” tests for Incapacity Benefit.

Again, look at Scottish Enterprise. For £500million, I’d like to think they have their successes. But I can’t say I ever notice SE make the evening news.

Contrast this to the key role the Ministry of International Trade and Industry (MITI) played in developing the Japanese economy.

Over the last 10 years, how big a part has Hong Kong played in China’s growth?

We live in a society that treats business people and success with suspicion.

The obstacles that must be overcome [the Labour party being a major obstacle] to achieve real economic success are considerable.

Scotland needs a massive cultural transformation to move from a dependency culture to a risk taking culture.

What Scotland desperately needs is a political leader that could be described, as Sir Tom put it, “An impressive man”.

And I don’t see any on the horizon.

3

The Strategist,

14/01/2007 13:27:09

Mev - One of the big differences between MITI and SE is of course that SE is subject to things like the EU rules on State Aid... It therefore has to depend to a great extent on the willingness of the private sector to play the game and particularly in terms of investment levels it isn't.

I have long argued for example that pouring public sector money into research and development is a pointless exercise if the private sector - in the shape of the funders - aren't prepared to get behind these new technologies and turn them into commercial successes. In other words, properly fund start-ups and spin-outs.

Nicol Stephen surprisingly said as much at the Global Scot conference. He said "private sector funders were hampering the drive to improve the number of successful start-ups by starving companies of the kind of risk capital that could make a vital difference to early-stage ventures." He went on to say "That is very dangerous and short-sighted and ultimately damaging for the economy."

He's right but unfortunately few people took much notice.

4

Mev Brown,

Southhouse, Edinburgh 14/01/2007 22:50:17

Dick – Firstly, I am standing in the elections in May and would welcome the chance to run some business policy ideas past you: mev@mevbrown.org.uk

Secondly, Sir Tom talked about the fear of failure. I remember reading an article in the WSJ years ago about 3 bankrupts.

The American was considered to have gained valuable commercial experience, the Brit was considered to have ended his business career and the Japanese was expected to commit suicide.

I’m very sceptical about importing ideas or practices from overseas. It doesn’t always sit with our culture. Again, there will be other obstacles – the EU as you point out.

The fear of failure is a major issue, especially if public funds are being wasted. The press would have a field day.

Sir Tom mentioned the RBS [amongst others], but do you remember the front pages of numerous newspapers when they announced record profits? I was half expecting to read stories about the lynch mobs the next again day!

Would people be happier if it were an American, German or Japanese bank reporting those profits?

Again, Sir Tom danced around the issue of around 12-15,000 kids a year going from secondary education into the benefits system. 11 years of state education, and all they can do is fill in a benefits claim form?

And we just spent £2bn bumping up teachers wages?

And he also ducked the issue by saying “I am apolitical. Frankly, most of the political parties seem to have good, sensible ideas”. Oh, please…

To coin his term, he is “messing around the edges” of the debate.

Don’t get me wrong, I have no doubts he means well, and ditto for the Labour party. But Scotland is well past the stage of politicians with good intentions.

Labour is clearly in for “a kicking” in May and rightly so. My concern is that the SNP is for all practical purposes, no better than Labour.


 

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