The First Minister's Press Secretary (FMPS) opened by saying that Cabinet met earlier than usual because the First Minister and Enterprise Minister Wendy Alexander were departing for Finland to examine its handing of digital technology.
The FM had just met with Patricia Hewitt, the UK Government's Trade and Industry Secretary, and Secretary of State for Scotland Helen Liddell to discuss a number of issues. It was a constructive meeting and the FM had explained there was a study going on looking at likely consequences on the Scottish economy of the current world situation.
The FMPS pointed out that Patricia Hewitt was in the north of Scotland looking at oil developments which is a positive for the Scottish economy. However there was no complacency and that is why there was a need to exchange information. The next stage will be for the Executive's Chief Economist Dr Andrew Goudie to report to the FM in a couple of weeks on what will be the likely consequences for Scotland and it will be taken forward from there.
Asked what sectors Dr Goudie will look at, the FMPS said it would look across all sectors of the economy in general, including tourism. Asked when it was started, the FMPS said last week. Asked about the team compiling it, the FMPS said the idea was to draw up a picture of what the likely consequences for the Scottish economy. Asked if there were early indications of what these might be, the FMPS said, as he had already said on behalf of the FM, that the basics of the economy remained sound. Jobs were still being created whether it be oil jobs in Aberdeen or, in other contexts, jobs announced today and yesterday by various supermarket chains. Asked if there were signs of any negative, the FMPS said the the FM had always said that if Scotland wants to be a global player in the economy and it was impossible to be immune to the tides that flow across the global economy. He pointed to the FM's own constituency and the case of a company who postponed plans for a major project but didn't cancel it.
Asked since Americans represent such a large part of tourism market were there any specific plans to alleviate the problem, the FMPS said the Executive had put in a large sum of money to visitScotland, £37.5m this year, a 95% increase and that was partly previously in response to Foot and Mouth Disease. visitScotland was in charge of the strategy and had redirected some of its marketing towards the UK and Europe. The FMPS also said that if Americans were not travelling it is going to have an effect and it was important to be open about that. But he stressed that visitScotland with the support of the Executive was doing its utmost to attract tourists to Scotland from the UK and Europe.
Asked about anxiety about inward investment levels, the FMPS said it was a matter of waiting and seeing whether there were further consequences for Scotland. But he said it was important to point out that even today in an industry like oil Patricia Hewitt was announcing something new which involved jobs and the basics of the economy are still sound.
Asked whether it was discussed if the Executive might dip into its £700m budget underspend as compensation for tourism, the FMPS repeated the first thing to do was to get the economic report and then consult on its results.
Asked if there were to be regular meetings between Executive Ministers and Patricia Hewitt, the FMPS said they would like to meet regularly to discuss a range of issues. He stressed they would be keeping in close touch.
Asked was the underspend discussed at Cabinet, the FMPS replied no. Asked what was discussed, he said matters of interest and concern. Asked about the Care Development Group and the potential £20m contribution from UK Department of Work and Pensions, the FPS said discussions were continuing.
Asked about Motorola, the FMPS said £2m had already been committed and the projected commitment was up to £5m. All money had to be spent in line with best value criteria. He referred queries on figures to Scottish Enterprise.
FMPS: Peter MacMahon