First Minister's Question Time – in the Scottish Parliament at 11:59 am on 14th June 2007.
To ask the First Minister what the Scottish Government's position is on the Federation of Small Businesses' recently published annual index of wealth and the comparison with other small countries, particularly in respect of health and life expectancy. (S3F-71)
The results are disappointing. They reflect what some of us have been saying for some time: on a range of indicators, Scotland has been underperforming.
The index is particularly valuable in comparing Scotland with countries such as Norway, Iceland and Ireland, whose success on that index and across a range of economic and social indicators is an example of what we should aspire to in Scotland.
Does the First Minister acknowledge that, in developed countries, relative poverty rather than absolute poverty explains the health differences between countries? That is why small, independent Scandinavian countries with a more equitable wealth distribution significantly outperform Scotland—not an independent nation—in the life expectancy of their citizens and the index of wealth.
Will the council of economic advisers that was announced by the First Minister be charged with considering every proposal to boost Scotland's economy in the light of its potential impact on not just absolute poverty, but relative poverty?
Yes it will, because one of our objectives is not just increased economic growth, which is important, but economic growth that touches every part and section of the community of Scotland.
The index was compiled by John McLaren, who should be taken seriously because he is a former special adviser to Donald Dewar and Henry McLeish. He is, therefore, a good economist who cannot be accused of feeding lines to Bill Wilson for political purposes.
I was amazed to hear the Secretary of State for Scotland, Douglas Alexander, on Tuesday in the House of Commons, seeming to regard the findings of the index as some form of success. I remind members that, on the index, we are 10th out of 10 in the small countries compared and that our position has been declining.
The index does two things. First, it tells this Administration what the starting point is as we embark on a period of government. Secondly, it should convince everybody that the opinion of the Secretary of State for Scotland—that the index shows some sort of deferred success—is not good enough for the new Scotland.
The FSB's index of success report has established itself as a valuable contribution to the debate on Scotland's economy, particularly on the importance of health and well-being to economic performance. However, does the First Minister agree that headlines such as "The worst small country in the world" are not only untrue, but are unhelpful to Scotland's reputation overseas and in attracting inward investment? What is his position on those who seek to talk down Scotland's economic performance?
I agree with that point. In defence of the press—I am always anxious to rush to its defence at every opportunity—I think that the headline was a parody of the slogan, "The best small country in the world." It is a bit foolish to have such a slogan unless we can convince people on the evidence that it is justified by the economy and social indicators. Perhaps a better slogan would be that we aspire to be the best-performing economy and social system in the world.