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Government not politics please - May 2011

The army has a phrase that “ preparation prevents poor performance”. Another familiar phrase is “time spent in preparation is rarely wasted”. “Practice makes perfect” may be a further variation on a theme. National vocational qualifications are based on this principle of learning through implementation. Which golfer was it, who when accused of being lucky said, “the more I practise, the luckier I get?”

The benefits are obvious in terms of familiarity with the task, scenario planning of various possible circumstances, understanding of true impact of decisions, identification of unintended consequences, efficiencies gained through getting things in the right order, building-in flexibility and resilience, awareness of critical decision-points – the list goes on. These obvious advantages for scouts of all ages from a “be prepared” approach are actively pursued by businesses which invest in training courses and staff development for project management, risk analysis, time management and strategic planning. Enterprise prizes being able to plan and invest with confidence.

By the time that you read this, the election will have passed and we will know what kind of government we have for the next few years in Scotland. What message should we be giving to government about what business needs to generate growth, and how they can help?

Our own research suggests that the things that are important to you at this stage of the economic cycle shows that “stability” and “simplification” of complex red-tape are two of the improvements that you crave the most, along with easier access to finance. The simple truth is that business can’t plan effectively, can’t create new jobs as fast as they could, can’t invest in the future, can’t make their full contribution to recovery unless they are confident that they have a steady operating environment.

All of the main political parties are quite clear that economic growth is the answer to our problems and the main pursuit of their policy interventions. They expect the private sector to earn the country out of the downturn. We could do a good job, if they didn’t leave their good intentions at the door, and surprise business with ill thought-out policy changes. Governments of all stripes and all levels keep making the same mistakes: failure to consult, secretiveness, political posturing and headline grabbing, surprise changes, denial of consequences, an obsession with new initiatives and a stunningly naive expectation that higher taxes are the answer to everything.

It is these governments which give business five weeks’ notice of major changes to business rates, or no notice of significant changes to the tax regime for the North Sea, and have piled up more than £22bn of cumulative additional costs to business in the UK between 2011 and 2015 from new employment legislation. As the expenditure commitments stack up and the wealth-generating base declines it is getting beyond a joke. Business finds it doesn’t trust government any more.

We need a new political consensus developed not by professional politicians whose only background is as advisers to other politicians (that’s called nepotism), but pragmatic people with a “hinterland” of experience (as Dennis Healey used to say) who can run a whelk stall. That probably means you, dear reader, so step forward. Business leaders will have to transfer their experience and savvy to the political world, if we are to ensure that the right decisions are made, and that the easy option of introducing a new tax or red tape is not the default position.

But, I do not see many business people willing to step up to the mark, and media intrusion is frequently the reason given to me when I ask. Many business people give generously of their time to work for free for the community – whether that is helping charities, serving on economic development bodies, working through professional bodies, or even standing for election to the AGCC Board and Council. Maybe some of us will have to go the extra step unless we want to continue to be on the receiving end.

So our message to whomever is in power after May 5 is - Business needs government (good government and less government), not politics.