I'm old enough to remember when "inward investment" was called "branch plant economy", and was considered a bad thing. Now it's either claimed it's a good thing, or it isn't considered at all.
I was at a talk during #indyref from Robin McAlpine where he pointed out that globalisation has been just as bad for SMEs as it has for workers. And, of course, the UK financial system offers no support at all to indigenous businesses who are at the mercy of international asset strippers as soon as they enter the stock market. And at the mercy of international banking if they try to expand any other way.
Yes I remember the "branch plant syndrome". I remember Silicon Glen too, which to be fair did bring a lot of jobs to Scotland - and technology firms like NCR, Motorola, Sun Microsystems, National Semiconductor. Earlier there was Honeywell and IBM, Marconi, Ferranti... Of course, these weren't headquartered in Scotland, except Ferranti. But I think everyone thought that the presence of these and many other firms would generated a lot of indigenous business. Especially since Scotland has all these universities turning out highly qualified graduates. The SNP blames London, and the pull of the South East was of course a part of this. Robin McAlpine's point about SME's is right. Very difficult to get started and keep going when the banks are only interested in getting your house.
Yes, I remember when Silicon Glen was the future. I grew up in Livingston. My mum worked for PYE TMC. Which was bought over by Phillips who wanted a foot in the UK telecomms market, and closed the factory down once they had it.
After a few different jobs, she worked at Burroughs, who make ATM machines. Which you would think would have been stable. But when they had to close a factory down, they closed down their Scottish plant, not their French plant. The Scottish plant was more profitable, but if you took French govt money to set up a factory, the penalties for closing it down were prohibitive. The UK govt, of course, did nothing to protect UK jobs if that happened. They just were not interested in manufacturing. And still are not. It's amazing any factories survive in Scotland.
I think this has been true for a long time, Iain. It happened first in the media sector where the feisty, funky local startups like Ideal World, Wark Clements and the like were bought up by larger media conglomerates, but even as that was happening, our big banks were moving their decision making down south. I'm economically illiterate, but I've always wondered just how independent a country can be when it doesn't own its businesses. I dare say other commentators will enlighten me...
I don't pretend to any great literacy, economic or otherwise, but like you I wonder how a country can be independent if it loses its economic autonomy. That's why I'm puzzled that the SNP doesn't seem very interested in this issue. Of course it applies equally to the UK. So many British firms have been gone to foreign ownership over the the same period. . Not just the Tories either. Gordon Brown happily sold off our utilities, often to state owned European companies. He even sold our gold I seem to remember! Obviously you can't stop companies selling out, but like you, I think it must have a long term impact, if only because all the decisions are taken thousands of miles away.
Iain, another spot on piece. As you have highlighted there is nobody left in the SNP cabinet who understand business - Salmond, Neil, and at a push McKee have all gone. The current crop have never been in business, although there is an opportunity for a tartan weightwatchers start up when the inevitable loss of westminster seats transpires next year.
I'm old enough to remember when "inward investment" was called "branch plant economy", and was considered a bad thing. Now it's either claimed it's a good thing, or it isn't considered at all.
I was at a talk during #indyref from Robin McAlpine where he pointed out that globalisation has been just as bad for SMEs as it has for workers. And, of course, the UK financial system offers no support at all to indigenous businesses who are at the mercy of international asset strippers as soon as they enter the stock market. And at the mercy of international banking if they try to expand any other way.
It would make you weep.
Yes I remember the "branch plant syndrome". I remember Silicon Glen too, which to be fair did bring a lot of jobs to Scotland - and technology firms like NCR, Motorola, Sun Microsystems, National Semiconductor. Earlier there was Honeywell and IBM, Marconi, Ferranti... Of course, these weren't headquartered in Scotland, except Ferranti. But I think everyone thought that the presence of these and many other firms would generated a lot of indigenous business. Especially since Scotland has all these universities turning out highly qualified graduates. The SNP blames London, and the pull of the South East was of course a part of this. Robin McAlpine's point about SME's is right. Very difficult to get started and keep going when the banks are only interested in getting your house.
Yes, I remember when Silicon Glen was the future. I grew up in Livingston. My mum worked for PYE TMC. Which was bought over by Phillips who wanted a foot in the UK telecomms market, and closed the factory down once they had it.
After a few different jobs, she worked at Burroughs, who make ATM machines. Which you would think would have been stable. But when they had to close a factory down, they closed down their Scottish plant, not their French plant. The Scottish plant was more profitable, but if you took French govt money to set up a factory, the penalties for closing it down were prohibitive. The UK govt, of course, did nothing to protect UK jobs if that happened. They just were not interested in manufacturing. And still are not. It's amazing any factories survive in Scotland.
I think this has been true for a long time, Iain. It happened first in the media sector where the feisty, funky local startups like Ideal World, Wark Clements and the like were bought up by larger media conglomerates, but even as that was happening, our big banks were moving their decision making down south. I'm economically illiterate, but I've always wondered just how independent a country can be when it doesn't own its businesses. I dare say other commentators will enlighten me...
I don't pretend to any great literacy, economic or otherwise, but like you I wonder how a country can be independent if it loses its economic autonomy. That's why I'm puzzled that the SNP doesn't seem very interested in this issue. Of course it applies equally to the UK. So many British firms have been gone to foreign ownership over the the same period. . Not just the Tories either. Gordon Brown happily sold off our utilities, often to state owned European companies. He even sold our gold I seem to remember! Obviously you can't stop companies selling out, but like you, I think it must have a long term impact, if only because all the decisions are taken thousands of miles away.
Iain, another spot on piece. As you have highlighted there is nobody left in the SNP cabinet who understand business - Salmond, Neil, and at a push McKee have all gone. The current crop have never been in business, although there is an opportunity for a tartan weightwatchers start up when the inevitable loss of westminster seats transpires next year.