Download Scotland`s financial sector

What business needs from
Scotland’s National Transport
Strategy
Presentation to Scottish Executive Business
Breakfast
27 April 2006
Amanda Harvie, Chief Executive
Scottish Financial Enterprise
Scottish Financial Enterprise (SFE) is the independent
organisation, formed in 1986, that supports and
represents the interests of Scotland’s financial services
industry. Our members encompass all sectors of the
industry including banks, insurance, fund management,
asset servicing, corporate finance and broking services,
professional advisors and support services.
Key focus of SFE’s work:
• Lobbying for improvements to the business environment that Scotland
provides for the financial services industry
• Influencing government, regulators and other policy makers outwith
Scotland, mainly in Westminster and Brussels, by facilitating engagement
between them and our members
• Promoting greater awareness, understanding and support of Scotland’s
financial services industry, particularly among politicians and the media
Scotland’s National Transport Strategy
Consultation
• Is the vital, not-to-be-missed opportunity to shape the
policy framework for delivering 21st century transport
infrastructure to secure our economic future!
Scotland’s National Transport Strategy
Must be:
• 21st century world-class
• A catalyst for long-term economic success
• Deliver a major step-change in economic growth
Why transport matters to our financial service industry
•
An international industry competing in the global market and making a major
contribution to the Scottish economy
•
Over 300 years of innovation and excellence
•
Scotland is now one of Europe’s leading financial centres and the second largest
financial services hub in the UK next to London
•
Many global financial services companies are headquartered and located in
Scotland
•
Particular strengths in banking; general insurance, life assurance and pensions;
investment management; asset servicing; corporate finance and broking services,
and a strong community of professional advisors and other suppliers
Contribution of financial services
to the Scottish economy
•
Financial services accounts for more than 10% of Scottish jobs, employing over
113,000 people directly and over 100,000 more in support services
•
Financial services is the fastest growing sector of the Scottish economy. In the last
five years (2000 Q3 to 2005 Q3) financial services in Scotland grew by 35.5% while
the overall Scottish economy grew by 8.8% and the whole of the UK financial
services industry grew by 16.6% in the same period
•
Financial services generates over £6bn (more than 6%) of Scottish GDP measured
as Gross Value Added – and much more!
Contribution to Economy 1998-2005Q3
(Indexed to 100 in 2002)
120
110
100
90
80
70
60
1998
1999
Scotland
2000
Agriculture
Source: Scottish Executive GDP Index
2001
2002
Production
2003
Construction
2004
2005
Financial Services
Financial Sector Growth 1998-2005Q3
(Indexed to 100 in 2002)
120
110
100
90
80
70
60
1998
1999
2000
2001
2002
Scotland
Source: Scottish Executive GDP Index
2003
UK
2004
2005
Industry agenda for the Scottish Executive
•
•
•
•
•
•
•
An overarching strategy to further develop Scotland as a leading international financial
services centre, focused on improvements to:
Transport and communications infrastructure
Skills development and labour supply
Cost and ease of doing business from Scotland
Financial literacy education across Scotland
Support of industry’s lobbying agenda in Westminster and Brussels
Brand identity and promotion
Recognised by the Scottish Executive in the shared public/private sector Strategy for the
Financial Services Industry in Scotland to ensure “an innovative, competitive and thriving
international financial services industry in Scotland, underpinned by world-class infrastructure and
universally recognised as a leader on the global stage”
Financial services future growth scenario
•
•
•
Strong business optimism
Continued growth in recruitment
Opportunity for continued growth of international financial services industry in
Scotland
BUT
•
•
•
•
Growing transport problems and connectivity challenges
Risks in meeting demand for office space, services and housing
Need for overarching strategy to improve infrastructure
Neglecting the industry’s connectivity needs will threaten its growth and
economic contribution
Financial services industry satisfaction with current
transport infrastructure
(Source: SFE Report on the Connectivity Needs of Scotland’s Financial Services Industry – April
2005)
Satisfied
20%
No response
10%
Dissatisifed
70%
How does Scotland’s infrastructure compare?
(Source: SFE Report on the Connectivity Needs of Scotland’s Financial Services Industry – April 2005)
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Much
Better
Slightly
Better
Same
Standard
Slightly
Worse
Much
Worse
Don't Know
Ranked top five transport initiatives for financial
services industry in Scotland
(Source: SFE Report on the Connectivity Needs of Scotland’s Financial Services Industry – April 2005)
Edinburgh airport rail link
Glasgow airport rail link
More direct flights
High-speed Edinburgh - Glasgow link
Completion of M8
Rank Weighting
Financial services – connectivity needs
1. International
•
Connectivity is key factor in location of mobile businesses
•
Major contributor to economic growth and performance
•
Route Development Fund has been successful in generating new direct routes
from Scotland
•
Expansion of Fund is welcome but must ensure business requirements are priority
•
Direct routes required to key business destinations in EU, US and Asia
Financial services – connectivity needs
2. National – air and rail to London
•
Need to at least upgrade East Coast Line by upgrading track and improving
journey times and reliability
•
More flights to London City airport from Edinburgh and Glasgow, especially in
view of Docklands Light Railway
•
Strong demand for more frequent flights and later evening departures
Financial services – connectivity needs
3. Inter-regional
•
Urgent need to improve links between Edinburgh and Glasgow airports and their
city and business centres
•
Need for improved connectivity between Edinburgh and Glasgow to form central
hub:
- high speed transport link
- completion of M8
•
Strengthen road and rail links with other key areas, particularly Perth, Dundee,
Aberdeen, Stirling, Fife
Financial services – connectivity needs
4. Intra-regional
Need for multi-modal links within cities, including:
•
•
High quality commuter bus shuttles
Tram systems on high volume routes
To deliver:
•
•
•
Faster, more efficient access and mobility
Reduced congestion
Improved living and working environment
Priority actions identified by SFE research
•
•
•
•
•
•
•
•
•
Develop an overarching and interconnected transport and economic development strategy
to include future office and residential needs of the financial services industry
Create a financial services “super-hub” in Scotland centred on an Edinburgh-Glasgow axis
Create a high-speed ground link between Edinburgh and Glasgow
Improve connectivity by road and rail between Edinburgh and Glasgow and Perth, Dundee,
Stirling and Aberdeen
Address key bottlenecks, e.g. Forth crossings and the M8
Create International Business Districts around Edinburgh and Glasgow airports
Continue to invest in Route Development Fund to support key business destinations
Gather international evidence on innovative funding and delivery of transport infrastructure
Develop new ways of working with the private sector to deliver the transport needs of the
financial services industry
The way forward for Scotland
•
•
•
•
•
•
•
•
Accelerate delivery of current projects
Abandon “thematic” and “regionalised” approach to national transport strategy
development
Make transport the catalyst for transformational long-term economic growth
Maximise innovative funding and delivery mechanisms
Embrace private sector expertise
Align related policies and infrastructure to allow for successful delivery
Be bold, ambitious and prepared to take risks – in policy, solutions and delivery
Benchmark quality of transport infrastructure and plans against global competition
We must develop and deliver an overarching, long-term, 21st century transport
strategy that will radically enhance the economic geography of Scotland to meet
our future needs and deliver transformational long-term economic growth
THE NATIONAL TRANSPORT STRATEGY MUST BE NOTHING LESS!
For further information contact:
Amanda Harvie
Chief Executive
Scottish Financial Enterprise
91 George Street
Edinburgh
EH2 3ES
Tel: +44 (0)131 247 7700 Fax: +44 (0)131 247 7709
Email: [email protected]
Website: www.sfe.org.uk