Skills the key to economic recovery, Secretary of State for Scotland Jim Murphy tells Central College

Scottish workers will need to have skills and knowledge that are transferable as the country moves out of recession into a greener economy, said the Secretary of State for Scotland, Jim Murphy, in a speech at Central College Glasgow on Thursday (October 22).

The Scottish Secretary was the keynote speaker at a seminar organised by Central College and supported by The Herald and Glasgow Chamber of Commerce on the theme of equipping Scotland’s economic recovery.

The Scottish Secretary said colleges would play a vital role in ensuring Scotland’s workforce had the right skills to survive the recession and take advantage of the upturn.

He said Central’s new Centre for Supply Chain Leadership, which will help Scottish companies compete for contracts in the 2012 London Olympics and 2014 Commonwealth Games, was a perfect example of colleges responding the needs of industry.

“These are the skills and courses which mirror the expertise required to prosper in the increasingly diverse economy,” he said, “where transferable and portable skills will be key assets in modern manufacturing and the transition to the green economy.”

Mr Murphy took part in a question and answer session with nearly 100 influential Glasgow business figures. Chaired by Ian McConnell, Group Business Editor at The Herald and Sunday Herald, he was joined on the panel by Paul Little, Principal and CEO of Central College Glasgow, Stuart Patrick, CEO of Glasgow Chamber of Commerce, and Liam Burns, President of NUS Scotland.

Principal Little said colleges made a major contribution to training Scotland’s workforce, with a review showing that every £1 invested by the Government generated an economic return of £3.20.

The Scottish Secretary said Scotland was moving towards a “knowledge-led economy where ideas, innovations and skills will be priceless commodities in a post-recession world.”

The world economy will double in coming years – with growth in developing countries contributing to a near trebling of the global middle class to nearly 1200 million by 2030 - providing fantastic opportunities from Scottish businesses. With the Copenhagen climate summit approaching, business need to not only cut emissions, they need to be greener and more energy efficient.

This presented great opportunities for Scottish business to supply green technology solutions to growing economies such as China.

Later, in a question and answer session with the audience, he said Scotland should aim to be a European or even global leader in developing green transport products such as electric cars.

“Science and technology will be the key drivers of 21st century growth – powering areas where British firms are already world leaders – such as advanced engineering, electronics, biosciences and many parts of the services sector,” Jim said.

It was a myth that Scotland was a post-industrial country, he said. Scotland was part of the UK, the world’s sixth largest manufacturing economy, and Scotland delivered cutting edge products such as bionics for amputees, diabetes testing kits and defence components.

“Innovative, visionary firms will lead the high-tech, low carbon-led recovery,” said Mr Murphy. “This means continuing to invest in skills, education, science and research.”

Mr Murphy said the recession, and the support provided by Westminster to the banks and to prop up the UK economy, strengthened the case for devolution and union.

“Through the power and resources of the UK we can move more effectively and much quicker on the expansion of Scotland’s renewables, advanced manufacturing and our digital infrastructure – core components of sustainable recovery,” he added.

Principal Little noted the Scottish Secretary’s speech followed on from another high-profile business presentation at Central in January from the First Minister Alex Salmond.

"In these tough economic times, Central College has been a bedrock in skilling, up-skilling and re-skilling people in Scotland. Seminars like this were important to exchange ideas and add to the knowledge and skill base of the country", he said.

By working in partnership with the business community, Central College had always tried to ensure that the courses offered meet the needs of the local economy. Central College up-skilled one in five people in Scotland in business and IT courses. Central was a centre of excellence for the Charted Institute of Purchasing and Supply (CIPS) and in September the college opened the Centre for Scottish Paralegal Education.

Central College strived to provide a pipeline of students who were ready for the job market and can contribute to Scotland’s competitive business edge, he added.

He described the Centre for Supply Chain Leadership as a “real innovation for those who will be involved in the supply chain, specifically for the London Olympics and Commonwealth Games. Transferable skills will be vital in the transition to a green economy.”

Useful link: The Herald 22nd October 2009