Tulloch Chief calls for brakes on Government Cuts
11th August 2010
"Tulloch Homes Group report a steadying progression on house sales over the past 6 or 7 months as the economy begins its fragile journey to recovery.
Mortgage availability still remains the most challenging aspect in the process of selling houses and it's puzzling how this can be when banks are being encouraged by the Government to lend individuals and business units, and in particular trying to stimulate first time/second time buyer activity on the housing ladder.
Also, on the UK macro economic front, Mr Sutherland issued a plea to the Treasury to think hard on the much heralded public sector cuts and their likely impact on business throughout Scotland and in the Highlands & Islands in particular.
We all recognise the need for UK Plc to be a vibrant growth orientated economy and to reduce its deficit timeously, but an attack on public spending overnight is not the way to do so in the current climate and in industry we favour a more focused and considered approach straddling a number of years to achieve this. Additionally, indicating a cut culture via the emergency budget and not doing anything about it until perhaps the end of October is also undermining the vital ingredient of confidence in the consumers' minds, no matter which business you trade within, whether it be retail, manufacturing or housebuilding, and large swathes of the economy are affected by this uncertainty.
Many peoples' businesses depend on public sector contracts within the Highlands & Islands of Scotland and many public sector employees spend a significant sum of money in shops, holidays, garages and indeed housebuilding, and they in turn must be puzzled and worried about their own jobs given the statement made by our Central and Scottish Government.
Perhaps the Highlands & Islands economy is more heavily dependent on the public sector than any other part of Scotland and might be damaged by cuts on the scale projected by both Edinburgh and London Government and we think they would do well to re-think the pace of such cuts.
I keep hearing the cry that the public sector cuts in jobs in particular will be taken up by the private sector but I don't understand how 1 and 1 makes 2 in this instance as the private sector itself is fighting its corner in the teeth of the most difficult recovery from a recession ever seen. This is a frequent and very valid point made to me regularly by fellow North business leaders whose concerns need to be taken on board and, I repeat, we urge the Treasury in London to think again and to think about the fragility of the recovery in Scotland and the impact of public sector cuts on the situation.
We all root for UK Plc to be back there punching its weight on the global stage but we need to be pragmatic, sensible and aware of the impacts locally within the Highlands & Islands"