May’s 100 unanswered questions, 100 days on from the Brexit result (By Angus Robertson MP)

We are now 100 days on from the EU referendum result, and the utter lack of clarity from the Prime Minister and the rest of the UK Government is a shameful abdication of responsibility.

The Tories are in the process of walking the UK economy off a cliff with a vague promise that they’ll find a parachute on the way down. It’s not good enough.

People in Scotland voted overwhelmingly against leaving the EU – but even Leave voters must be worried by Theresa May’s inability to outline even the basics of what ‘Brexit means Brexit’ actually means.

Today the SNP is publishing 100 Brexit questions 100 days on – it is by no means an exhaustive list, but is shows the sheer scale of uncertainty facing Scotland and the rest of the UK. The Prime Minister is today set to address the Tory conference on Brexit – she needs to take the opportunity to start delivering at least some of the answers.

Theresa May’s Brexit ministers are more interested in post-Empire fantasies about commissioning new Royal yachts than doing the hard work required – and this casual approach is putting jobs, investment and economic prosperity at risk.

Angus Robertson MP, SNP Westminster Leader

Trade

1. Will the UK still be a member of the single market?

2. If not, what will the terms of the UK’s access to the single market be?

3. Will the UK remain a member of the European Union Customs Union?

4. Was the establishment of the Department for International Trade an admission that the UK has no intention of remaining a member of the European Union Customs Union?

5. Will the UK have to make a financial contribution to the EU?

6. In the Holyrood debate of 30th June 2016 Ruth Davidson said: “Retaining our place in the single market should be the overriding priority.” How will the Tories ensure that Scotland remains in the single market?

7. What preparatory work has the UK Government done on the tariff agreements that would be required with the EU and other countries in the event of being outside the single market?

8. Will businesses be able to continue to trade with the EU without customs checks or other administrative costs?

9. Has the UK Government discussed proposed new trade arrangements with the WTO?

10. What guarantees has the UK Government sought or received from other nations that punitive tariff levels will not be imposed on UK produce – such as steel exports – in the event of not being in the single market?

11. Has the UK Government produced any estimates of the likely impact of Brexit on inward investment levels?

12. Has the UK Government spoken to the Japanese Government about the report it published on Brexit, and what guarantees have been sought regarding Japanese investment in the UK?

13. Has the UK Government engaged with the US Government regarding President Obama’s remarks – made both prior to and after the EU referendum – that the UK will now find itself “at the back of the queue” when it comes to US trade priorities in Europe?

14. Has the UK Government opened discussions with the United States on a post-Brexit trade agreement?

15. What does the UK Government conclude from President Obama’s remarks about the future of the so-called “special relationship” with the United States?

16. Are the talks held by the UK Government since June 23rd with non-EU nations regarding bilateral trade deals in breach of the UK’s still current EU treaty obligations? And if so, is the UK risking financial penalties and fines from the EU?

17. On 5 June 2016 the then Prime Minister David Cameron said: “Those campaigning to leave Europe are inviting the British people to make an extraordinary choice – to be the first major economy in history to deliberately choose a second-rate, more restrictive trading relationship for its biggest market…” Why do so many Conservatives who supported ‘Remain’ now enthusiastically ‘choose a second-rate, more restrictive trading relationship for [the UK’s] biggest market’?

18. On 18 April 2016 the then Chancellor George Osborne cited treasury analysis saying every household would be £4,300 a year worse off and that the effects of Brexit meant “Britain would be permanently poorer. Britain’s families would be permanently poorer too…” How much poorer do the Conservative party believe people in Scotland will be if we were to be pulled out of the EU?

19. On 26 May 2016 Tory MSP John Lamont said that the European negotiating position has allowed international trade agreements that have opened up new markets for Scottish produce but that “We do not know what the alternative would be if the UK voted to leave”. Can he or the Conservatives now tell us what the alternative is since they now appear to be backing Brexit?

20. On 21 June 2016 Ruth Davidson said: “Basic questions over restrictions, tariffs or the ability of British workers to operate abroad are dismissed instead of answered…’Out’ doesn’t just fail the certainty test.” Now that she appears to support Brexit what “certainty test” has she met to ensure there will be no such restrictions or tariffs if Scotland were to be pulled out of the EU?

21. On 22 June 2016 Theresa May as Home Secretary warned people in Northern Ireland that there could be “tariffs on exporting goods into the EU” if we’re out of the European Union. What level of tariffs do the Conservatives think will be levelled on Scottish goods if Scotland were to be pulled out of the EU?

22. Before the EU referendum vote the Scottish Secretary David Mundell wrote: “Hundreds of thousands of jobs in Scotland depend on having access to the EU’s single market. What would happen to the families who rely on those jobs for their livelihoods if we were to pull out of the EU?” What would happen to those families who rely on those jobs if Scotland were to be pulled out of the EU?

23. On 31 May 2015 the then Prime Minister David Cameron warned Eurosceptic Tories that quitting the EU would leave farmers facing punishing tariffs on their exports. He said: “It’s for [Eurosceptics] to look those farmers in the eye and tell them if they’re going to have to pay tariffs and, if so, how much.” How much will Scottish farmers have to pay in tariffs if Scotland were to be pulled out of the EU?

24. Before the EU referendum vote David Mundell wrote: “A vote to leave would trade in our power and influence as the EU’s second largest economy for the weakness and irrelevance of observer status”. Why does he now support “the weakness and irrelevance of observer status” that will come with Brexit?

25. Before the EU referendum David Mundell wrote: “Others say that losing our free and unrestricted access to a single market of 500 million people…will leave us no worse off. That sounds to me like it’s too good to be true.” How “true” is it now?

Economic impact

26. What work has the UK Government done on the overall impact of Brexit of employment levels in the UK?

27. Does the UK Government still stand by the pre-referendum economic projection papers published by HM Treasury?

28. Along with Nissan, how many firms have indicated that they are pausing or reviewing investment decisions since the Brexit vote?

29. How will multi-national companies with bases and operations here and elsewhere in EU be supported to maintain those bases and profitability without incurring additional costs?

30. How many inward investment proposals is the UK Government aware of that have not gone ahead since the EU referendum?

31. What is the likely impact of Brexit on exports of Scottish food and drink, such as seafood, meat and whisky to the EU and through EU Free Trade Agreements?

32. Has the UK Government conducted any formal or informal negotiations about EFTA membership?

33. What will the future of passporting for financial services be?

34. On 28 June 2016 Ruth Davidson said: “I am absolutely sure that my role is to … help [get], particularly in my patch of the world, passporting for financial services”. Does she still support getting passporting for financial services and will she support free movement to retain it?

35. What substance is there to suggestions that the UK Government is prepared to agree a continued single market for bankers and the financial services sector alone?

36. On 6 June 2016 the then Prime Minister David Cameron said a ‘Leave’ vote would “put a bomb under the economy…[and]…we’d have lit the fuse ourselves”. How will the Conservative party defuse this metaphoric bomb under our economy?

37. What impact will leaving the EU have on tax revenues?

38. What impact will leaving the EU have on UK GDP?

39. What impact will leaving the EU have on UK productivity?

40. What impact will leaving the EU have on Scottish exports?

41. Has the UK government carried out any assessment of investor confidence in the UK energy market among energy firms?

42. Will the UK Government remove current EU regulations on food and plant safety?

Impact on business

43. Will the UK implement the EU Digital Single Market Strategy and participate in the Digital Single Market?

44. Will Scottish businesses and individuals lose out on the changes to mobile roaming charges coming into effect next year?

45. Will the UK still be a member of the Single Aviation Market?

46. Will the UK continue to adhere to the common rules and procedures of EU consumer protection legislation?

47. Will Scottish businesses and families lose out on the EU pledge to introduce free wifi by 2020 into major EU cities and capitals?

48. Will Scottish businesses and families lose out on the EU pledge to roll out 5G by 2025?

49. Will foods that currently have protected geographical indication under EU law still be protected in this way?

50. What impact will Brexit have on skills in the construction sector?

51. Will the UK Government introduce tariffs on the import of raw construction materials and what impact would this have on public infrastructure projects, including housing?

52. How will the UK Government ensure that Brexit does not make it more difficult for the construction industry to secure loans for building new homes?

53. Will the UK Government guarantee that the operating and administrative costs incurred by LEADER local action groups throughout the lifetime of funded projects will be met?

Workplace rights

54. Will provisions in employment law pertaining to annual leave, which is underpinned by EU law, be maintained after Brexit?

55. Will the rights of agency workers, part-time workers or fixed term workers, all of which are underpinned by EU law, be maintained post-Brexit?

56. Will the health and safety obligations of UK workplaces be maintained after the UK leaves the EU?

57. Will state-guaranteed payments for employees whose employers face insolvency, which are guaranteed by the EU, be maintained after Brexit?

58. Will EU-guaranteed redundancy rights for employees be maintained after the UK leaves the EU?

59. Will the current level of paternity, maternity and parental leave, which is underpinned by EU law, be maintained after Brexit?

60. Will the current anti-discrimination legislation, underpinned by EU law, be maintained after Brexit?

61. Will the working time directive still apply to workers in the UK?

Free movement

62. Will EU citizens living in the UK now be allowed to remain, to work and to retain all their current rights?

63. Will UK citizens have to apply for visas to travel to Europe?

64. Will EU-wide health entitlement cards still be valid for UK citizens?

65. Will UK citizens living in the EU be given the right to remain and retain their rights to access services there?

66. What will happen to the 8 per cent of EU nationals currently employed in our fishing fleet?

67. What will happen to the estimated 30,000 EU nationals working in our food and drink sector?

Personal finances

68. Before the 23rd June vote David Mundell wrote: “All the economic experts predict that the potential damage a Brexit would do to jobs, mortgages and the economy as a whole across Scotland is just too severe.” How “severe” will Brexit be for jobs, mortgages and the economy in Scotland if Scotland were to be pulled out of the EU?

69. In his article of 23rd June 2016 David Mundell wrote: “…when Remainers ask…how a collapse in the stock market will impact upon people’s pension pots…we deserve to have answers from the Vote Leave campaign.” In light of reports that Brexit has caused greater deficits in pension funds, with gilt yields at historic lows, can Mr Mundell tell those pensioners how Scotland being pulled out of the EU will be good for their pensions?

70. On 11 June 2016, Ruth Davidson said: “It’s clear that following the fantasy economics of the Leave campaign would put this universal dream [of buying a first home] at risk. Families…can’t afford a vote to leave.” How will she protect this “universal dream” and how could families in Scotland afford a home if Scotland were to be pulled out of the EU?

EU funding streams

71. What guarantees can the UK Government give on replacing EU structural funding which will be lost as a result of Brexit?

72. What guarantees can the UK Government give on support for farming beyond 2020?

73. Will the UK Government guarantee the £360 million funding Scotland is entitled to receive for fishing, farming and food that is unlikely to be secured by the date of the Autumn Statement?

74. Will the UK Government guarantee the £20 million of ERDF funding allocated for digital connectivity in the Highlands and Islands if contracts cannot be secured by the date of the autumn statement?

75. What will the future arrangements be for managing our fishing resources?

76. Will funding for the fishing sector, through the European and Maritime Fisheries Fund, be maintained?

77. On 15 June 2016 David Mundell said “fishermen are wrong in the sense there is no way we would just go back to Scotland or Britain controlling British waters”. Does the Secretary of State still think they are “wrong”?

78. Will the UK Government meet any financial penalties imposed by the EU for not spending Scottish Rural Development Programme funds?

Health and Social Security

79. Will UK workers living in other member states still be entitled to social security benefits?

80. What will the impact of changes to freedom of movement be on NHS staff recruitment and retention?

81. Will the UK continue to participate on EU-wide public health initiatives?

82. Will mutual recognition of medical qualifications across the EU continue?

83. Will the UK continue to adhere to EU-wide medicines regulation?

84. What impact would leaving the EU have on professional sport, including football?

Education

85. Will Scottish students still be able to participate in the Erasmus scheme?

86. How will academics living and working in Scotland, or elsewhere in the UK, be supported to travel to EU countries and Higher Education institutions to participate in learning and research opportunities?

87. Will UK universities and research institutions still be able to access EU funding?

88. Will academics living and working in EU countries be able to travel to Scotland, and elsewhere in the UK, to collaborate on learning and research without a visa?

Justice and Security

89. If the UK Government opts out of a new European policing co-operation framework, how will Police Scotland continue to have access to key data, co-operation and other resources held by the EU crime-fighting agency Europol?

90. Will police in the UK continue to have use of the European Arrest Warrant?

91. On 21 June 2016, Ruth Davidson referenced a number of policing, security organisation and states saying “we’re safer in the EU” and that if it came to choice between them and the ‘Leave’ campaign about “who keeps my family safe I’m going to vote for them every single day of the week and twice on Sunday.” Now that she appears to support Brexit how will people’s families be safer if we leave the EU?

92. Will the UK have any role in influencing or shaping the EU’s Common Security and Defence Policy?

Brexit process

93. If the Courts say that Parliamentary approval is needed by the House of Commons and the House of Lords in order for the UK to exit the European Union, will the UK Government seek that approva

94. Will the UK Government seek approval of the Scottish Parliament before triggering article 50?

95. Will the UK Government ensure that its negotiating position is agreed by all devolved nations prior to article 50 being triggered?

96. When will article 50 be triggered?

97. Will devolved nations be invited to participate in any Brexit negotiations?

98. How many meetings has the Prime Minister had with the Brexit ministers?

Pre-independence referendum promises

99. In the independence referendum the Scottish Tory leader Ruth Davidson promised that voting “No means we stay in” the EU. How do the Tories plan to keep that promise to those that voted No in 2014?

100. In a joint statement of 5 August 2014 David Cameron and the Scottish Tory leader Ruth Davidson – along with Ed Miliband, Nick Clegg then Scottish Labour leader Johann Lamont, the LibDems’ Willie Rennie, signed a pledge saying: “Power lies with the Scottish people and we believe it is for the Scottish people to decide how Scotland is governed.” How will the Conservatives keep this pledge on which they won a No vote if Scotland is pulled out of the EU against its will?

ARTICLE SOURCE: http://www.snp.org/100_unanswered_questions_100_days_from_the_brexit_result

Accounts given clean audit for eleventh year running.

The Scottish Government continues to manage its budget resources effectively, Consolidated Accounts published today show.

Welcoming the accounts, which are the primary means of accountability and reporting in relation to the Scottish public financial resources, Finance Secretary Derek Mackay said:

“Under the current devolution settlement, the Scottish Government is not permitted to overspend its budget. As a consequence, we have consistently adopted a position of controlling public expenditure to ensure we live within the budget caps that apply, but remain able to carry forward some spending power resources for a future year. This is a common and prudent strategy that has proved to be the right one over a number of years.

“This is the eleventh consecutive year Audit Scotland has given the Consolidated Accounts a clean, unqualified audit and once again demonstrates our firm grip on Scotland’s public finances. The provisional cash underspend has not changed since my statement to parliament in June, remaining at £155 million for 2015-16 and representing only 0.5% of the overall budget. Not a penny of this underspend is lost to Scotland, as we will be carrying this forward into 2016-17 to support the £100 million capital stimulus and other initiatives, which were recently announced within our Programme for Government.

“This is also the first year in which devolved taxes in respect of the Land and Building Transactions and Landfill Taxes have been managed in Scotland and the accounts indicate these taxes delivered £74 million more that initial estimates.

“We recognise that Scotland’s budget process needs to evolve to take account of the complexities and opportunities associated with the new powers, notably those relating to fiscal policy. That is why I have agreed a fundamental review of the budgetary process to ensure we develop a process that balances the time required for proportionate and effective Parliamentary scrutiny with the need to ensure the information is based on the most up-to-date forecasts.

“Our continuing competence in the management of the public finances has once again been demonstrated at a time of considerable economic turbulence and on-going pressures on our finances, notably through the UK Government’s continued adherence to austerity.”

ARTICLE SOURCE: http://news.scotland.gov.uk/News/Scottish-Government-accounts-2015-16-2c18.aspx

Scot Govt Announce Over £9 million to improve energy efficiency.

Homes and businesses across 11 local authority areas will be warmer and cheaper to heat thanks to over £9 million of Scottish Government funding.

Councils have been awarded the funding to pilot new and innovative approaches to drive down energy bills and tackle climate change.

Scotland’s Energy Efficiency Programme (SEEP) Pathfinder Fund is being directed at businesses, community groups and individuals working and living in areas with particularly high levels of fuel poverty.

These pilots will help shape the wider work that will be delivered when SEEP is rolled out further from 2018.

Cabinet Secretary for Communities, Social Security and Equalities Angela Constance announced the funding on a visit to meet Margaret Wilson, a West Lothian householder who has already seen her fuel bills reduced thanks to the installation of Scottish Government-funded energy efficiency measures.

Ms Constance also visited Lanthorn Community Centre and met with a local mum and toddler group to talk to them about what measures they can take to help make their homes easier to heat this winter.

Ms Constance said:

“Since 2008 over one million energy efficiency measures have been installed in almost one million households across Scotland which has helped make homes warmer and easier to heat.

“The Scottish Government will continue to prioritise tackling fuel poverty and remains committed to helping those most in need.

These SEEP pilot projects will build on our existing support for households and also improve the energy efficiency of community centres, charities, businesses and commercial properties.

“Tackling fuel poverty is a priority for us, but we need to be creative if we want to make a real lasting difference. I look forward to seeing how councils can bring their innovative ideas to life to reduce energy bills and tackle fuel poverty in their communities.”

Minister for Business, Innovation and Energy Paul Wheelhouse said:

“By taking a coordinated approach to improving buildings across the commercial, public and industrial sectors we are not only boosting the economy but will be able to substantially reduce greenhouse gas emissions which will help us meet our ambitious climate change targets.

“This is part of our overall investment of over £1 billion by 2021 in energy efficiency which aims to make homes and buildings warmer, improve health outcomes and create a supply chain across all of Scotland which will support around 4,000 jobs a year once the programme is fully operational.”

Margaret Wilson, from Livingston, West Lothian, has already benefitted from Scottish Government funded fuel efficiency measures. She said:

“We are delighted with the work carried out and we’re already feeling the benefits of having a warmer home. With winter not far off, it will make a huge difference to us to have the peace of mind that our home is more energy efficient and we can afford to have the heating on a bit longer without worrying as much about when the bill comes in.

“Everyone we dealt with was so helpful and everything went smoothly – we’d definitely recommend that other people apply and have the same experience that we did.”

ARTICLE SOURCE: http://news.scotland.gov.uk/News/Action-on-fuel-poverty-2c06.aspx

Significant Milestone in Scottish Government’s Ambitious Plans Reached (Scot Gov)

Road users are now able to drive on the first stretch of new road surfacing to be constructed as part of the A9 Dualling: Kincraig to Dalraddy project – the first project to get underway as part of the Scottish Government’s ambitious A9 dualling programme.

Since opening at 05:30 today, drivers are now able to follow a new road layout between Kincraig and Dalraddy which will take them onto approximately 4km of newly constructed carriageway. This will then allow the contractor delivering the works to begin work upgrading the existing carriageway.

Drivers should be aware that further changes to the road layout will continue to be rolled out over the coming weeks, and are reminded to approach this section of road with care as the changes come into effect.

Hailing the milestone, Keith Brown, Cabinet Secretary for Economy, Jobs & Fair Work said:

“As one of Scotland’s largest and most challenging infrastructure projects, I welcome this important milestone in our A9 dualling programme, with the first stretch of new road in the programme between Kincraig and Dalraddy now in use.

“Along with the ongoing construction work, we are also continuing to progress the design of the other sections to be dualled with three ground investigation contracts awarded in the last few months. These important investigations are helping to inform and shape the design as we work towards identifying preferred routes for a number of sections to be dualled.

“I am also pleased with the strong links the contractor has forged within the community in delivering improvements for the local primary school, assistance with community events, and an innovative association with the Highland Wildlife Park.

“The Scottish Government is working hard to ensure communities along the A9 get the 21st century road network they rightly deserve, and when completed our dualling programme will bring faster journey times, better journey time reliability and road safety improvements for anyone travelling between the cities of Perth and Inverness.”

ARTICLE SOURCE: http://news.scotland.gov.uk/News/First-Stretch-Of-New-A9-Opens-2c05.aspx

Scotland’s manufacturing future By David Livey (snp)

Nicola Sturgeon officially re-opened the Dalzell Scottish steel plant in Motherwell today. This follows decisive action taken by the Scottish Government earlier this year to secure a new owner, which safeguarded full manufacturing capability for the plant in the future.

This isn’t the first time the Scottish Government has stepped up to protect a key national asset. With government assistance a new buyer was found for the Ferguson shipyard in Port Glasgow. Under new ownership, the yard is winning public contracts and expanding its workforce.

Manufacturing is hugely important to Scotland’s economy, accounting for over half of our international exports; employing nearly 190,000 people across the country. In government, the SNP is working to make sure we have an innovative manufacturing industry that creates high-skilled, well-paid jobs into the future.

Here’s some of the action we’re taking.

Targeted support to help manufacturers expand

We will continue to invest in the ingenuity of Scotland’s manufacturers, which account for half of our research and development (R&D) spend. Nicola Sturgeon recently announced the biggest R&D grant ever awarded – to one of of the world’s leading bus and coach builders, Alexander Dennis, to help them grow and innovate.

To support more businesses, particularly start-up companies with the potential to grow and export more, a new Scottish Growth Scheme will provide up to £500 million over three years of investment guarantees and some loans.

Investing in economic development

While the UK government abolished regional development agencies in England, we’ve retained our enterprise agencies in Scotland. That’s just one reason why spending on economic development in Scotland is higher than the UK as a whole – to the tune of £76 per head.

We will now review enterprise and skills agencies to ensure they continue to deliver the targeted support that young people, universities, colleges and businesses need.

A new National Manufacturing Institute to foster innovation

The Scottish Government is undertaking new work to establish a new manufacturing centre of excellence and skills academy, the National Manufacturing Institute for Scotland.

The centre will provide support to Scotland’s manufacturers to help them compete in international markets and support Scotland’s industry in terms of innovation and digital opportunities.

This is a major, transformative project being developed by the Scottish Government and Strathclyde University, alongside the Scottish Research Partnership in Engineering, enterprise agencies, Skills Development Scotland, the Scottish Funding Council and the private sector.

Creating a skilled manufacturing workforce for the future

Research suggests that 65 per cent of children in preschool today will work in jobs or careers that don’t yet exist. So, we will develop and implement a Scottish STEM strategy to ensure, from the earliest age, children are alive to the opportunities that science, technology, engineering and maths can offer them.

We’ll roll out our programme of school STEM clusters and develop a Scottish STEM ambassador network, so that by 2020 every Scottish school is working with a STEM partner from the private, public or third sectors. We’ll focus in particular on encouraging more girls and women to study STEM related subjects.

Leading the world with greener, smarter manufacturing

We’ve put in place a programme of support – backed by a £70 million investment – to enable companies to grasp the opportunities of the circular economy. The circular economy provides firms with opportunities to reduce waste, improve design and manufacturing processes, and extend the life-cycle of the products they produce.

ARTICLE SOURCE: http://www.snp.org/scotland_s_manufacturing_future

Speech To Institute of Directors by Nicola Surgeon (27/09/16)

It is a pleasure to speak here today. The Institute of Directors has demonstrated, over many years, an unswerving commitment to improving the quality of business leadership in Scotland and across the UK.

Three hundred people a year in Scotland currently use your director development courses. You work closely with the Scottish Government to increase the number of women on public and private sector boards. And you will be an important member of Scotland’s Post-Referendum Business Network. That’s the new forum which we are establishing, so that the Scottish and UK Governments can understand – and act on – the concerns and priorities of business following the EU referendum.

Now, as you might expect, I’m going to focus this morning on the implications of the EU referendum for Scotland. I’m going to make the case that – notwithstanding the outcome of the referendum – remaining a member of the single market, as well as being democratically defensible, will be crucial to businesses and communities in Scotland and across the UK.

But I want to begin by putting that argument in context. Over the last 9 years, the Government that I now lead has consistently strived to make Scotland the best place in the UK to do business.

One of the first actions we took in 2007– in response to concerns from business – was to create the small business bonus scheme. As a result, almost 100,000 small business premises in Scotland now pay zero or reduced rates. In fact, the policy has been such a success that it is being emulated by the UK government next year.

In 2011, we retained our enterprise agencies at a time when regional development agencies in England were being abolished. We’ve supported key economic sectors such as food and drink, energy, financial services and creative industries. And we have invested in education, skills, transport links and broadband.

We’re also working with businesses to create a change in our culture – we want Scotland to become an entrepreneurial nation. That involves everything from promoting entrepreneurship in schools, to directly encouraging start-ups, to producing the European Union’s only framework for women in enterprise.

We still have much more to do – and of course our growth has been hit by difficulties in the oil and gas sector in the last two years. But we have also achieved significant successes. The number of registered businesses in Scotland is at record levels. Unemployment in Scotland is again lower than in the rest of the UK. We consistently outperform every part of the UK except London when it comes to attracting inward investment. Scotland’s productivity has grown since 2007, while the UK’s has stagnated.

We work every day with business to build an economy based on exports, innovation, high skills, and increased productivity. And so the trade benefits – and the social protections – of single market membership are an integral part of our vision for Scotland’s economy.

There’s one other aspect of our economic approach which I think is worth highlighting. In everything we do, we put a strong emphasis on inclusive growth. We believe – in line with the World Bank and many other international experts – that growth will be stronger and more sustainable if it is broadly based.

We therefore see many of our social policies – for example tackling poverty, improving childcare and boosting educational attainment – as having a strong economic justification.

And we also see business as a partner in delivering social progress.

I know that Simon sometimes talks about the Royal Charter of the Institute of Directors. It was granted in 1906 but remains relevant today. It pledges “to promote, for the public benefit, high levels of skill, knowledge, competence and integrity on the part of directors.” The reference to the public benefit is crucial – it acknowledges that businesses are part of wider society; your fortunes are tied to the wellbeing of your communities, customers and employees.

We are fortunate in Scotland that so many of our leading companies – as well as being innovative, dynamic, ambitious and successful – already recognise this.

There are now almost 600 accredited living wage employers in Scotland. That’s up from 70 just two years ago. Next week, we publish a strategy for a fairer Scotland which includes pledges from a number of major employers. We are working with business to create a society where the benefits of economic growth are shared more equally, so that future economic growth is stronger and more sustainable.

I’m emphasising this point, because the EU referendum shows that it is more important than ever.

I’m very proud of the fact that Scotland voted so strongly to remain in the European Union. But I can’t ignore the fact that even in Scotland, a million people voted to leave. They did not think that that the European Union benefited them – they did not see advantages from free trade and free movement.

That feeling was even more prevalent in other parts of the UK. There are many, many causes of the vote to leave the EU. For many people, they will have included entirely reasonable doubts and reservations about the EU. It is, after all, an imperfect organisation.

But in part, Brexit was a product of a sense of disenfranchisement and disillusionment. It was borne of inequality, of feelings of powerlessness – of austerity budgets which hurt the public services and social safety nets that so many people depend on.

And so one consequence of the referendum must be a new effort – which needs to be given real substance in the UK Government’s autumn statement – to ensure that the benefits of growth, of globalisation, are more fairly distributed. The UK Government has suffered one of its most significant policy reversals in generations – it can no longer ignore the social and economic cost of inequality or the impact of its austerity economics.

Now, as all of you know, the outcome of the EU referendum was not one which I sought, and it is not one for which people in Scotland voted.

We believe that EU membership makes it easier to export goods and services, to attract talented migrants and to benefit from inward investment.

And in many ways, EU membership is now part of Scotland’s sense of itself. We see ourselves as an open, internationalist country. We value the contribution made by EU citizens across Scotland. We like the fundamental principle behind the European Union – of independent nations co-operating for a common good.

So Scotland is in a situation which is not of our making. But it is a situation which we will seek to deal with as constructively and as positively as possible.

In doing that, my guiding priority is to reflect and protect the interests of the people of Scotland.

As part of this, I have made it clear that a referendum on Scottish independence remains an option. If the approach taken by the Westminster government proves to be seriously damaging to our economy, our competitiveness and our place in the world and if independence is the only way of protecting our interests, then it stands to reason that it is an option we must have the ability to consider.

But as I said the morning after the referendum, independence is not my starting point in this process. My starting point is to do everything I can to retain the benefits of EU membership, and to preserve as best I can, Scotland’s relationship with the EU. That’s what people in Scotland voted for in June. It is what I aim to achieve.

I have established a Standing Committee on Europe. It is investigating distinctive solutions for Scotland, which preserve the benefits of EU membership. We are looking to see if there are ways in which – for example – the benefits of single market membership could be retained by Scotland even if they are discarded by the rest of the UK.

That won’t be straightforward. But nothing about Brexit is straightforward. The UK Government has already implied that it is prepared to think carefully – as it should – about Northern Ireland’s position, to avoid restoring a hard border with Ireland. We all need to think creatively and negotiate constructively. In these circumstances, no option can be off the table for Scotland.

And of course, the other key objective of the Scottish Government, is to exert as much influence as possible on the UK Government’s eventual negotiating position.

In doing that – and I’m trying to be tactful here – it would be helpful to know more about the UK Government’s current thinking. As a first step, I think we would all benefit from some clarity.

However one of the few things we do know is that the Prime Minister will not invoke Article 50 until a “UK approach” to negotiations has been agreed. She has also promised significant engagement with all of the devolved administrations on what that UK approach should be.

The Scottish Government has a very clear view of the UK approach we would like to see. We believe that the UK should seek to retain full membership of the single market.

We know that some parts of that – such as retaining freedom of movement – would not satisfy everyone. Although immigration brings significant economic benefits, those benefits aren’t felt by everyone. So it will become even more important to ensure that the economy works more effectively for people who are currently unemployed, or on low wages.

But we believe that there is a strong democratic justification for retaining our single market membership. After all, 48% of the electorate voted to remain in the EU. So did two of the four nations of the UK. And people who voted to leave were repeatedly told that leaving the EU did not necessarily require leaving the single market. There is no meaningful mandate for what is generally known as a hard brexit. Single market membership seems to us to be the obvious consensus position.

And single market membership would also – surely – be the least damaging outcome for individuals, communities and businesses across the whole of the UK. That’s why the Scottish Government’s position is, I believe, one which is shared by the majority of businesses.

Many people in the UK look at the political debate in America now – where one candidate is talking about imposing significant tariffs on imported goods – and we criticise that debate. So it seems almost unbelievable that we’re now in a position where barriers and tariffs with our nearest neighbours could become part of our daily business life.

You only have to read the 15 page memorandum from the Government of Japan – a more clear-sighted analysis than anything we’ve seen so far from the UK Government – to see what the third largest economy in the world believes could happen if we leave the single market: a loss of company headquarters, a hit to exports, turmoil in labour markets, damage to financial services and cuts to research and development investment.

The Institute of Fiscal Studies tried to quantify the consequences last month. It estimated that losing our membership of the single market could cost the UK approximately 4% of GDP. That’s almost two years of average economic growth.

There would be other effects, too. To give just one example, last week the Times Educational Supplement’s annual report showed that Scotland has more top class universities per head of population, than any country in the world except for Luxembourg. But a hard Brexit would cause our universities significant difficulties. Being outside the single market could hinder their collaboration with international partners, and harm their attempts to recruit staff and students from overseas. It’s an example of how single market membership brings benefits across the whole of our economy and our society.

I began this speech by setting out how much the Scottish Government values its partnership with the IoD and with business more generally. For nine years now, we have worked with you to encourage sustainable growth and to boost prosperity in all parts of Scotland. And throughout that time, EU membership has been part – not just of our economic strategy, but of our wider vision of Scottish society.

So we deeply regret the outcome of the EU referendum. And we don’t want the UK Government to compound the mistakes it made over the referendum, during Brexit negotiations.

We believe that leaving the single market would cause lasting, unnecessary and self-imposed damage to businesses and communities across the UK. So we intend to argue wholeheartedly for single market membership – including the economic benefits that freedom of movement brings. We see that approach as being democratically justified, socially progressive, and economically beneficial.

And in making that case, we want to make common cause with trade unions, business organisations and other political parties throughout the UK. We believe that in doing so, we will be serving the interests of individuals, businesses and communities – not simply in Scotland, but across all the nations of these islands.

ARTICLE SOURCE: http://www.snp.org/first_minister_speech_to_institute_of_directors