Investment call ‘legitimate’ says Labour

Commenting on remarks by Labour's Economy and Skills spokesperson, John Park, on the Politics Show (today) where he said the SNP Government's calls for a £1 billion funding package to avert recession in Scotland were 'legitimate', SNP MSP Alex Neil welcomed Mr Park's comments but said his shadow cabinet colleague Andy Kerr was at odds with the position and had attacked it.

Mr Neil, a member of the Scottish Parliament's Finance Committee, said:

I welcome the comments from John Park, Labour's economy spokesperson that it is 'legitimate' for the Scottish Government to continue the dialogue with the Westminster Government to release Scotland's money.

"It's just a shame his own shadow cabinet colleague disagrees. John Park is at odds with Andy Kerr who has condemned the Scottish Government's efforts to help our economy by repatriating Scotland's money from the Treasury to help boost the Scottish economy.

"Once again Andy Kerr is getting in the way of consensus. Iain Gray needs to get Mr Kerr in line and his front bench all singing off same song sheet

"Andy Kerr's knee-jerk reaction is simply to oppose anything the SNP Government does - for example when he failed to back the freeze on council tax or reduction and removal of business rates for thousands of small businesses. 

"The First Minister has given support to Gordon Brown during this period of international financial crisis by backing his action to help stabilise UK banks. 

"Whereas the First Minister wants more to be done – such as a further cut in interest rates and the UK Government guaranteeing of deposits – it is important that during difficult economic times governments work together to help reflate the economy.

"Surely the Labour party in Scotland can support the Scottish Government's call for the Treasury to unlock some £1 billion of Scotland's money to help stimulate our economy, help secure jobs and stave off a deep recession?

"Andy Kerr has only opened up splits within Labour on whether they want to help Scotland's economy.  Andy Kerr says no, but former Labour UK minister Brian Wilson agrees with the Scottish Government that Ofgem should release the £120 million pounds from the Fossil Fuel Levy; and Scottish Secretary Jim Murphy backs calls for the £150 million Lottery money to be returned to Scotland.

"When UK government financial rules have been thrown out the window in an attempt to stabilise the financial sector it is only right that Treasury controls of Scotland's budget are relaxed."