Dumfries Liberal Democrats

Borders politicians launch economic recovery plan

Leader of the Scottish Liberal Democrats, Tavish Scott MSP, joined Borders MP Michael Moore and Tweeddale, Ettrick and Lauderdale MSP Jeremy Purvis to launch the Liberal Democrats' proposals to support the Borders economy through the current economic downturn.

The parliamentarians were joined by Cllr Alec Nicol at the launch of the 'Road to Recovery' document on Friday at Spylaw Industrial Estate, Kelso. The launch followed a visit by the politicians to Abbey Tool & Gauge, where they discussed the challenges being faced by local businesses.

The Liberal Democrats' proposals include:

• a 2p cut in income tax, which would put an average £300 back into the pockets of local people, helping to restore consumer confidence and support local retail;

• the lowering of rural transport costs through a Rural Fuel Discount Scheme to help remote businesses that are being squeezed the most;

• the restoration of a local and dedicated Borders enterprise agency;

• immediate action to ensure that wholesale energy price reductions are passed on to businesses, and that utility companies offer flexible business billing.

The parliamentarians are also asking the Scottish Government to fully support the Abbotsford project as a key driver of cultural tourism in the Borders, to reconsider their decision not to progress the Selkirk bypass, and to bring forward the Waverley railway project.

In addition, Mr Moore and Mr Purvis believe that the UK Government must use its influence with the banks to ensure that adequate lending levels are resumed, and that arrears are not recovered until customers have been provided with a thorough financial review of their situation, and only as a last resort.

Speaking at the launch of the proposals, Mr Purvis said:

"People in the Borders have watched as financial institutions have hit the rocks. As local people read of the billions that Gordon Brown and Alistair Darling have been prepared to pump into the banking system, it is understandable that they should ask what is being done to help them.

"Our proposals set out clearly what should be done to put money back into the pockets of struggling families and to kick-start renewed economic growth. Every level of Government must take action - no-one should sit on their hands while grave consequences hit the most vulnerable people.

"Cutting the burden of taxation, to put money directly back into the pockets of hard-pressed families, and taking action on energy and fuel prices would make a real and immediate difference to the lives of people in the Borders."

Mr Moore added:

"Here in the Borders we have some of the highest quality businesses any place in the world. Many of our local businesses have truly global reputations, and whether it is in textiles, fibre optics or pharmaceuticals, our local economy is the most diverse it has been for a generation.

"However, the situation remains fragile. Recent figures show we have the second biggest fall in new company start-ups in Scotland, and there has been a 30% increase in unemployment since this time last year.

"Our businesses can only grow if the banks get back to lending responsibly. Reports of the banks' reluctance to lend to small businesses and farmers have been coming in from across the region. It is vital that the UK Government uses its influence to get the banks lending again. For our small businesses, securing finance and borrowing is one of their top priorities."

Notes:

1. A summary of the proposals is given below:

• A 2p cut in income tax would put over £300 in a Borderer's pocket helping consumer confidence and support retail and manufacturing

• Westminster must get the bailed out banks lending again

• The Westminster Government can act now to lower transport costs - supporting remote businesses which have been squeezed the most and lifeline rural independent filling stations

• There should be immediate action for wholesale energy price reductions to be passed on to businesses and there should be locally owned and generated "green" energy for Borders businesses

• The UK Government should ensure that Banks only seek to recover arrears after customers have had a financial review of their situation and it should be a last resort

• A local and dedicated Borders enterprise agency should be restored by the Scottish Government

• The UK Government needs to ensure that utility companies offer flexible business billing

• As a legacy to the Homecoming year, Abbotsford must be fully support by the Scottish Government as a key driver to support cultural tourism in the Borders

• Bring the critical Waverley Railway project forward ahead of 2013

• The Scottish Government should reconsider its decision not to progress the Selkirk bypass

• There should be a new round of support for school buildings for the next generation of new build for our school estate

• A next generation solution to enable the Borders to be the first full super broadband and wi-fi region in the UK

• The Borders should have full mobile phone coverage