A lack of lived business experience among ministers is a “disadvantage” for the Scottish Government, a former minister has said as he called for a “reset” with the sector.
Ivan McKee held the business, trade, tourism and enterprise brief between 2021 and 2023, while his past ministerial jobs have included public finance and trade.
Shona Robison and Neil Gray were given cabinet posts as Finance Secretary and Wellbeing Economy Secretary respectively in March, following First Minister Humza Yousaf’s appointment.
In a column for The Herald newspaper, McKee offered his perspective on whether Scottish Government policy - and his successors - work for business.
He held several senior posts in the manufacturing sector before entering politics and said that while the government’s economic strategy recognises the importance of tackling poverty with strong public services and a thriving economy, “a narrative has taken hold in recent years that the Scottish Government doesn’t ‘get’ business”.
Scottish Government policies such as the Deposit Return Scheme (DRS) and proposed alcohol advertising bans have caused concern among business leaders.
While McKee noted there is “no shortage of government engagement with business”, he added dialogue must be “meaningful”, leading to businesses feeling like they are being listened to and not just “being used as a prop for a photo call”.
The Airdrie and Shotts MSP went on to call for all economy and business ministers to have “lived experience” within the sectors to understand the problems facing firms.
“Having lived experience helps,” he said. “Sure, businesses don’t expect politicians to be experts, but being able to have empathy beyond soundbites really helps.
“A government without any business experience in its ranks starts off at a disadvantage.”
McKee added: “Despite the hard work of many, the perception persists that government needs to reset its relationship with business.
“I know the First Minister understands that; the problem is that once that narrative takes root, it is difficult to shake it off.”
Scottish Conservative business spokesman Jamie Halcro Johnston urged ministers to “heed” the warnings of McKee, given his business experience.
He said: “Some of their worst blunders - the proposed alcohol advertising ban and the DRS shambles - were as a direct result of ignoring business warnings.
“The SNP should listen to Ivan McKee’s scathing attack on his own party’s policies, ditch their previous attitude and totally rethink their approach to business.”
A Scottish Government spokeswoman responded: “A thriving business sector is crucial to the three missions set out in the Scottish Government’s policy prospectus – creating a fair, green and growing economy; improving equality by tackling poverty; and building stronger communities by delivering more efficient public services.
“The First Minister has made clear a New Deal for Business is one of his government’s key priorities.
“Urgent discussions have already begun on how to develop this new deal, exploring how government can better support our businesses and communities using the policy levers at our disposal.”
Separately, Scottish Secretary Alister Jack has rejected a suggestion from the First Minister for the UK Government to pick up the bill for compensating businesses if Scotland’s DRS cannot go ahead as planned.
With the deadline looming for Westminster to grant an exemption for the Scottish scheme by the end of this month, the First Minister reportedly suggested businesses could turn to Westminster to try to recoup some of their costs.
Jack, however, was clear that “it’s absolutely got nothing to do with the UK Government”.
He also told MPs on the Commons Scottish Affairs Committee that he had yet to receive the “proper grown-up assessments” he had asked for from ministers at Holyrood that would allow a decision to be taken on whether DRS should be exempted from the UK Internal Market Act.
That legislation was brought in after Brexit in a bid to ensure smooth trade across the different nations of the UK – with concerns being raised that because Scotland’s scheme would come in before similar initiatives in England, Wales and Northern Ireland it could create a trade barrier.
Yousaf insisted at the weekend that there was “no reason for the UK government not to grant that exemption” as he accused Westminster of “playing politics with what is the climate emergency”.
The First Minister added: “If the UK government end up pulling the plug on the scheme, because they don’t give the Internal Market Act exemption, then I wouldn’t be surprised at all if companies are asking for compensation.”
Scottish Conservative leader Douglas Ross asked if Yousaf had “even approached the UK government about this before announcing it to the media”.
Jack told him: “No, that letter has not been received.”
While he told MPs on the committee the Scottish Government had formally requested an exemption for the scheme on 6 March, he said they had not supplied him with the impact assessments he had requested.
“I have yet to see the workings that could let me take a responsible decision one way or the other on this with any confidence,” the Scottish Secretary told the committee.
“At the inter-ministerial government meeting on April 17 I asked for impact assessments to be done on consumer choice, consumer cost, to businesses, to trade within the UK and to international trade.
“I haven’t seen those proper impact assessments yet, and I can’t come to a decision on an exemption until I see proper impact assessments, so we know we are making the right decision and not causing unnecessary consequences.”
Businesses, however, have invested in new labels for bottles and cans which would be required under DRS, with reverse vending machines, where consumers would take empty drinks containers back to, also being installed.
But without impact assessments from the Scottish government, Jack insisted it was like a house being built without planning permission first being sought.
He told MPS: “After the UKIM legislation the Scottish government should have come and talked to us about an exemption, minister to minister, at that time.
“That didn’t happen.”
Jack said the Scottish government had pressed ahead and set up Circularity Scotland - the body which will run the scheme - without impact assessments in the wake of the UK Internal Market Act
The Scottish Secretary insisted: “We need to see impacts assessments on consumers, on consumer choice, on cost to consumers, on businesses, on trade within the UK and on international trade.
“Those impact assessments still haven’t been done, but it is important they are done, because before you go and build your house, you should seek planning permission.
“The Scottish government have built a house and now they are asking for planning permission, it is the wrong way round.”
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