Transcript Industrial Growth in the Central Belt

Government
involvement in the
Central Belt
What influence do you think Government and EU
policy has on industry in the central belt?
• Main factors –
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Subsidies for businesses
Tax breaks for certain industries
Offering low rents and rates for the first few years
Giving grants and loans to factories that set up in the area.
Building more roads to serve the area (The M74)
Providing ready-made factories with services laid on
Training the local labour force in the skills required
• There have been many attempts to attract new
industry into Scotland in recent years
• In the 1980s Enterprise Zones were created where
large amounts of funding were available for the
setting up of new industry- Clydebank and North
Lanarkshire were two major EZ
• The EU funded some initiatives in the Central Belt –
European Investment Bank and European Regional
Development Fund.
• http://www.enterprise-europescotland.com/sct/services/enquiry_service.asp?Cont
entID=017&BackTo=0&savemsg=&CustomMessage=
• Inward Investment in the form of Scottish
Development International has attracted many
industries into Mossend and other parts of the
CB. SDI seeks out potential companies through
tax incentives, training grants and other financial
inducements.
• http://www.sdi.co.uk/invest-in-scotland/topseven-reasons.aspx
Clyde Corridor
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Scottish Enterprise has identified the Clyde Corridor as a strategic economic development zone
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The west coast has already seen huge investment along the City Harbour
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The M74 extension in the east has improved accessibility allowing for urban regeneration
The reopening of the rail line between Airdrie and Bathgate has improved access and opened up opportunities for more links with the west coast
• Scotland is now developing Science Parks and
technopoles (cluster of IT and biotech firms). Biotech
industries employ about 35,000 people in Scotland. This
depends on the firms and government agencies
attracting substantial investments from banks,
entrepreneurs and transnationals. Universities also
provide a considerable amount of investment. They
partly receive their funding from the government and
students but large amounts come from research grants.
• The technopoles and Science Parks are closely related to
the 11 Universities found in the CB
Government and E.U help for new industry
• The government and EU have invested heavily in this area via Locate
Scotland which was established in 1981 to attract foreign investment.
• Money is available in the form of grants, tax relief, rent and training costs.
• By 1995 £981 million worth of investments were attracted to the Central
Belt with a promise of safeguarding or creating 10,000 jobs.
• In 1997 a further 14,300 jobs were secured at a cost of £3.1 billion.
Government and E.U help for new industry
• European Union
• E.U. (creation of EU itself provides huge European market for goods) joining
EU opens up a huge source of funds available to outlying areas – ERDF
(European Regional Development Fund), EIB (European Investment Bank),
ESF (European Social Fund) and their associated benefits
• Cohesion Fund – aimed at states whose Gross National Income (GNI) is
<90% of EU average
• There have been many attempts to attract new industry into
Scotland in recent years.
• In the 1980s Enterprise Zones were created where large amounts of
funding were available for the setting up of new industry- Clydebank
and North Lanarkshire were two major EZ
• The EU funded some initiatives in the Central Belt – European
Investment Bank and European Regional Development Fund.
• Inward Investment in the form of Scottish Development
International has attracted many industries into Mossend and other
parts of the CB. SDI seeks out potential companies through tax
incentives, training grants and other financial inducements.
• Scotland is now developing Science Parks and
technopoles (cluster of IT and biotech firms). Biotech
industries employ about 35,000 people in Scotland. This
depends on the firms and government agencies
attracting substantial investments from banks,
entrepreneurs and transnationals. Universities also
provide a considerable amount of investment. They
partly receive their funding from the government and
students but large amounts come from research grants.
• The technopoles and Science Parks are closely related to
the 11 Universities found in the CB