Realism must be the watchword for capital

MY former colleague George Kerevan has certainly caused a stir with his prediction that an independent Scotland should adopt adopting its own currency but will need “to cut its budget coat to fit its fiscal means”. As someone who previously worked as an economist and an Edinburgh councillor before becoming chief leader writer at the Scotsman, his contribution to editorial conferences was extremely valuable not just because of his depth of knowledge but because as a prominent SNP candidate he did not allow the party’s positions to skew his analysis. Not that we agreed on everything, independence being the most obvious difference, but he was a pragmatist who understood the editor’s word was final. Similarly, he is no political ingenue, so his argument that Scotland will have to endure further fiscal pain if it is to become an economic powerhouse can be taken at face value.

The difficulty for the SNP is it is now harder to attack the Conservative Government for budgeting within the country’s means to build a stronger economy when its man on the Commons’ Treasury Select Committee argues an independent Scotland will need even more of the same.

George writes about pulling the levers of economic growth, and this is something of which he has some experience, not as a commentator, but as part of a project which brought real economic benefits to Edinburgh and continues to do so. As a Labour councillor on the old district council he helped found the city’s arm’s length development company EDI to create the Edinburgh Park and Gyle business district. More than 20 years on, the area’s expansion is central to the future shape of the capital and with the collapse of the oil industry (and what now looks like the failure of the renewable energy sector) it could be pivotal to the future prosperity of the entire country.

As George will be well aware, much of the Scottish post-Brexit crystal ball-gazing has focused on the potential for a Scotland remaining within the EU to become a magnet for financial businesses looking to retain the benefits of EU membership. Why such firms wouldn’t flit to Dublin to save hanging about for the results of years of negotiation to emerge is another thing, but one way or another Edinburgh needs to grow and it does

‘‘ One way or another Edinburgh needs to grow and it does beg questions about how businesses can be attracted and where they will go

beg questions about how significant businesses can be attracted and where they will go.

It might have been the Waterfront once, but the most likely answer is West Edinburgh, where there are still undeveloped plots around Edinburgh Park rail station and the vast International Business Gateway (IBG) scheme is now being promoted on land between the Gogar Roundabout and Edinburgh Airport.

A mix of housing and business space, it’s designed to take advantage of the excellent transport links in that part of the city – the airport, two motorways, a dual carriageway, a railway, a tram line, and a canal – and is being driven by a partnership involving the Scottish Government, the city council, Transport Scotland, Edinburgh Airport, the Royal Highland Society and a private development firm New Ingliston Ltd.

The IBG will almost certainly feature in the Edinburgh City Region Deal to secure £1 billion of Government funds now being thrashed out with the UK Government and it is understood the sheaf of projects being proposed are being well received. The pre-Brexit plan was for the Government’s support to generate a further £3bn of private investment and, while that figure might now need adjustment, in the current political and investment climate only a very brave UK politician would turn it down.

With worthy phrases like “investment, intellect and culture will fuse to create new ways of doing things” and to become “the most connected, creative, inclusive and entrepreneurial place in Europe”, the City Deal bid was launched just under a year ago and the go-ahead for in-depth negotiations was given in this year’s Budget.

But the fear is that behind the fine words there isn’t a real vision of the shape and structure of the region and what is being proposed is, like the Glasgow deal, a series of off-the-shelf projects which bear little relationship to one another. When Edinburgh City Council founded EDI and Edinburgh Park, it was with a clear vision not just to create a new district, but to maximise resources and generate wealth for the whole city. The thinking, as the worst consultants say, was joined up.

These are challenging times and we need less talk of another referendum but some of the realism expressed by George Kerevan this week and the practical vision his council displayed 30 years ago.