David Lonsdale: Business of wealth and job creation must have Holyrood's help

When MSPs reconvene at Holyrood following the Summer Recess, their attention will turn quickly to the unveiling of the Scottish Government's legislative and administrative programme for the coming year.

So what does business want to see from our MSPs in the months ahead?

With the Scottish Parliament responsible for many areas of importance to the economy and an annual budget in excess of 30 billion, business has a real stake in this debate. Two priorities emerged from the recent publication of the CBI Scotland manifesto: an imaginative response to the financial stringency ahead given the need to sustain investment in the economy, and a more effective approach to fostering enterprise.

The past 12 months have been tough for business. However, recent data suggests Scotland is emerging from recession, albeit at a decidedly modest rate. For many it will not feel like recovery for some time yet, reinforcing the need for policies which promote business investment and exports.

Our political leaders must channel their collective energies into aiding the recovery. All MSPs have a role to play. The legislative and government agenda should include: n Legislation to alter the status of Scottish Water. The alternative model identified by the Independent Budget Review and the Scottish Futures Trust, of a public interest company along similar lines to Welsh Water, would free up 140m each and every year whilst retaining the benefits of public control. Public sector capital spend is set to be hard hit by the austerity drive, and this 140m could be better deployed on other GDP-enhancing capital projects. n Direction to spending departments and public authorities to encourage far greater outsourcing of service delivery. Much greater use needs to be made of the private sector to deliver public services, for cost reasons but also to maintain service quality and innovation. Ministers should start by ditching plans to extend the Freedom of Information Act (FoI) to those firms which provide public services, which will increase duplication and cost. Ministers should similarly rescind the bans on firms providing GP services, hospital services, hospital catering and cleaning, and prisons.

Require public authorities to settle supplier invoices within 10 days. The Scottish Government has helped firms' cash flow by settling supplier invoices with a ten-day national target. They ought go further and set a more stretching target, and require all devolved public authorities to match the best payment performance. n Require public authorities to pay refunds more quickly. CBI Scotland has previously praised Ministers for retaining poundage rate parity with the rest of the UK, though we disagreed strongly over the decision not to re-introduce transitional relief following this year's revaluation. Other issues with rates remain, not least over the delay some firms report in obtaining monies owed to them. New guidance or greater transparency would ensure such cash is returned within weeks. n Set more ambitious targets for growing exports. A step change in Scotland's export performance is required to rebalance our economy. A more ambitious export target, coupled with better promotion of initiatives such as GlobalScots, and the re-introduction of an Air Route Development Fund to support more direct links to key business hubs overseas, should be the starting point.

The coming parliamentary year will be dominated by the party manifestos and the looming election. As far as business is concerned, the test for all policies is simple - will it make Scotland a better place to create jobs and wealth as the recovery takes hold? lDavid Lonsdale is Assistant Director of CBI Scotland