LETTER TO THE ECONOMY, ENTERPRISE AND TOURISM COMMITTEE
March 8, 2010
8 March 2010
Clerk to the Committee
Economy, Enterprise and Tourism Committee
Scottish Parliament
Edinburgh
EH99 1SP
INQUIRY INTO THE PUBLIC SECTOR'S SUPPORT FOR EXPORTERS, INTERNATIONAL TRADE AND THE ATTRACTION OF INWARD INVESTMENT
I write in response to the Committee's call for evidence to this inquiry.
Scottish Financial Enterprise, as you know, represents Scotland's financial services industry. It is funded by its members, which are drawn from all sectors of the industry as well as from professional bodies, educational institutions and public sector interests. Common to all members is an interest in promoting and supporting the continued success of our industry in Scotland.
SFE's purpose is to promote not only the industry but also Scotland as an international financial centre. We work very closely indeed with the public agencies charged with promoting Scotland internationally and I offer the following comments on the basis of that experience. Scottish Enterprise, one of the sponsors of Scottish Development International, is a member of SFE.
The international presence of SDI and UKTI is very valuable to us. Having people on the ground in China, India and other markets where getting things organised can be difficult is of great practical value. For example, we have done a good deal of work with SDI and UKTI in China in the last couple of years, promoting Scotland's fund management sector. Their ability to bring resources and local knowledge to bear have been instrumental in organising the events that have underpinned that.
Government and its agencies command respect and attention in countries with Chinese cultural roots, in ways not found in European and US markets. So a government, or government-related, business card carries weight. We recognise that; and take advantage of it to open doors and cement relationships.
If the argument that the influence of foreign governments and their agencies varies between markets and cultures is accepted, then it is worth considering whether more public resource should go to the markets where government has more influence (most obviously East Asia), leaving other markets for the private sector to pursue on its own account. That question may merit consideration by the Committee.
We also see benefits for our industry, in some markets, in having more than one level of UK government with which we can work. It is advantageous to our industry, I think, that we can draw on the support of the UK authorities on reserved issues, such as regulation; and that of the devolved government on matters such as financial services education. But it is a case of horses for courses and we need to be canny about which government has most influence on a particular issue and approach the interlocutor authorities accordingly.
We also work very closely with TheCityUK, the City of London Corporation and other London-based bodies. Scotland's proximity to the largest financial centre in the world and the fact that we are in many ways part of it are powerful promotional tools for our industry in many markets. We seek to take advantage for Scotland from London's eminence and, we believe, to enhance the UK's overall international proposition by doing so.
SFE is a member of Scotland Europa, which gives us good value for money in providing guidance and advice on how to engage with the institutions of the EU. It has a high reputation in the Brussels policy-making community and is very proficient in organising events. Perhaps most valuable of all, it understands the subtleties of influencing in Brussels and gives us capacities to engage there we could only otherwise obtain at much higher (probably prohibitively so, in fact) cost, in terms both of time and of money.
I hope these observations are helpful to the Committee. I would be happy to expand on them if required.
Yours sincerely
Owen Kelly
Chief Executive
