Time for a Scottish National Investment Bank

Common Weal, Friends of the Earth Scotland and the New Economics Foundation (NEF) call on the Scottish Government to set up a Scottish National Investment Bank

SNP Spring Conference delegates unanimously passed a motion to set up a Scottish National Investment Bank (SNIB). The proposal should now be pursued by the Scottish Government, Common Weal and other advocates of the policy proposal have argued.

A SNIB could be established now by the Scottish Government, could be a major creator of jobs and become a huge boost to the Scottish economy. The motion, proposed by Kirriemuir and Dean branch of the SNP, reflected this potential.

Common Weal has worked alongside Friends of the Earth Scotland and the New Economics Foundation in developing the proposals for a SNIB across two reports, one outlining the broad vision in March 2016 and another in October last year developing the details of implementation.

Using Scottish Government figures for job creation from capital investment, the report states that such a bank could directly support the creation of 50,000 jobs “within just a few years of being established”.

It could also be used for public investment, being part of a strategy to replace costly public-private partnerships. To illustrate the scale of the potential benefit to the public finances, the report estimates that the Scottish Government would have saved a total of £26 billion if the projects financed through Private Finance Initiative (PFI) and Non-Profit Dividend (NPD) schemes had instead been financed by a SNIB.

Ben Wray, Head of Policy for Common Weal said:

"The SNP membership has spoken - now the leadership should listen. A Scottish National Investment Bank is exactly what the Scottish economy needs in the post-Brexit landscape: tackle chronic under-investment, provide the patient capital small and medium sized Scottish businesses are not getting and create high-paying jobs. 

"In countries like Germany a state investment bank is the norm - there's no reason why that shouldn't be the case here, and the Scottish Government could set it up now. It's an idea whose time has come."

Laurie MacFarlane, economist from the New Economics Foundation said:

“The passing of today’s motion reflects the strength of the economic case for establishing a new Scottish National Investment Bank . Meeting the challenges of the twenty-first century requires bold and ambitious plans for financing and directing investment in a smart, inclusive and sustainable direction.  But with public budgets in decline, economic uncertainty increasing and a banking sector still focused on short-term shareholder returns, the need for fresh thinking around investment is greater than ever.

“A new Scottish National Investment Bank would channel investment to the areas of the economy most in need. In doing so, it would boost productivity, expand the business base, speed up the transition to a low carbon economy and support the creation of thousands of new jobs. It would also generate billions of pounds of savings for the public purse by providing a low cost alternative to expensive private finance schemes. It’s now up to the Scottish Government to act to turn it into a reality.”

“We now have a real chance to construct a modern form of public investment that promotes beautiful, cost-effective public buildings that serve the need of our citizens first.” Malcolm Fraser

Malcolm Fraser, award-winning architect said:

"This is a pivotal moment, recognising that if we cede responsibility for building our essential public infrastructure, such as our schools and hospitals, to private finance – to Bankers, in essence – we get ruinously-expensive, shoddy buildings, that put the interests of fancy finance before people.  We now have a real chance to construct a modern form of public investment that promotes beautiful, cost-effective public buildings that serve the need of our citizens first."

Robin McAlpine, Director of Common Weal said:

‘There is now a substantial momentum building up behind the idea of a Scottish National Investment Bank and that support is coming from many different places. I very much hope this can now be explored properly by the Scottish Government.”

Ric Lander, Divestment Campaigner for Friends of the Earth Scotland, said:

"Tackling climate change requires long-term investment. We can't rely on the private sector to provide investment to secure our future. National investment banks in other countries fund projects like renewable energy, public transport and insulation: this is exactly the kind of investment we need to avert dangerous climate change."

Comments

SoupCruncher

Fri, 03/24/2017 - 09:38

This needs done yesterday! Banking in UK geared purely to big business, nothing for the little people but contempt.

Peter Dow

Sat, 03/25/2017 - 14:36

Capitalised how?

A Scottish National Investment Bank, ok, but how is it to be sufficiently capitalised?

Instead of answering that question correctly, which means CRUCIFYING Sturgeon and Swinney for signing the ROTTEN Fiscal Framework Agreement with the UK Treasury of February 2016 wherein the Scottish government DENIES ITSELF sufficient borrowing powers from the central bank, what have the proposers of the SNIB proposal done?

The presenters of this SNIB proposal have PANDERED to the SNP rank and file to get support for a proposal which leaves the same fools in charge of the SNP finance and economy policies.

This lets the SNP leadership OFF THE HOOK for their DISGRACEFUL failure to demand £ billions a year more borrowing powers from the central bank which manages our currency.

The SNP leadership must be NAILED TO THE WALL for their utter incompetence.

SNP support for a SNIB without SNP opposition to Sturgeon, Swinney, MacKay and Brown financial and economic illiteracy is WORTHLESS.

Nice idea, but poorly executed.

tracymarks

Fri, 05/26/2017 - 13:11

Am really grateful and thankful for what Dr.Sebi has done for me and my family. I Was having HIV/ AIDS for good three years with no solution, the diseases almost took my life and because I was unable to work and I was also loosing lots of money for medication, but one faithful day when I went online, I met lots of testimonies about this great man so I decided to give it a try and to God be the glory he did it. he cured me of my diseases and am so happy and so pleased to Write about him today. if you need his help or you also want to get cured just the way I got mine, just email him below dr.sebispelltemple@gmail.com or Whatsapp;+2348153863900 and get your healing. He has cure for other deadly diseases like Diabetes, Herpes, Hepatitis of all types and Cancer or see more at
http://drsebispelltemple.wixsite.com/spelltemple

stella225

Sat, 06/24/2017 - 01:25

My name are Stella Piper ,my life became devastated when my husband sent me packing, after 12years that we have been together. I was lost and helpless after trying so many ways to make my husband take me back. One day at work, i was absent minded not knowing that my boss was calling me, so he sat and asked me what its was all about i told him and he smiled and said that it was not a problem. I never understand what he meant by it wasn't a problem getting my husband back, he said he used a spell to get his wife back when she left him for another man and now they are together till date and at first i was shocked hearing such thing from my boss. He gave me an email address of the great spell caster who helped him get his wife back. prophetabulelehealingtemple@gmail.com i never believed this would work but i had no choice that to get in contact with the spell caster which i did, and he requested for my information and that of my husband to enable him cast the spell and i sent him the details, but after two days, my mom called me that my husband came pleading that he wants me back, i never believed it because it was just like a dream and i had to rush down to my mothers place and to my greatest surprise, my husband was kneeling before me pleading for forgiveness that he wants me and the kids back home, then i called prophet abulele regarding sudden change of my husband and he made it clear to me that my husband will love me till the end of the world, that he will never leave my sight. Now me and my husband is back together again and has started doing pleasant things he hasn't done before, he makes me happy and do what he is suppose to do as a man without nagging. Please if you need help of any kind, kindly contact prophet abulele for help and you can reach him via email: prophetabulelehealingtemple@gmail.com

CommonSpace journalism is completely free from the influence of advertisers and is only possible with your continued support. Please contribute a monthly amount towards our costs. Build the Scotland you want to live in - support our new media.