Investing for recovery: creating ‘Scottish government investments’ & ‘equiscot’
Call for major overhaul of government investment programmes
A paper published today by two leading Scottish economic figures argues for the creation of two new Scottish Government investment vehicles to sit at the top of a simplified economic development structure.
Andrew Wilson, former SNP MSP, RBS economist and Chair of the First Minister’s Sustainable Growth Commission, and Alan McFarlane, Chair of Reform Scotland and founder of Dundas Global Investors, also call for urgent co-operation between the UK and Scottish governments to allow Scotland to access debt-funded capital in order to accelerate the emergence from the Covid-19 crisis.
Today’s paper – Investing for Recovery – proposes:
- co-operation by both governments to access tens of billions of pounds of debt-funded capital
- the creation of Scottish Government Investments, to be an active shareholder of publicly-held assets, staffed by experienced industry personnel (examples of assets would include quangos, public corporations and infrastructure assets)
- the creation of Equiscot as the asset management arm of the Scottish National Investment Bank, based on Singapore’s Temasek model, which would be able to invest for value and return, and which could also provide a home for local authority pension schemes
- decluttering of Scotland’s economic development organisations to remove duplication and waste, create more independence and attract a different level of expertise