Public consultation on the Scottish Government’s plan for a Scottish National Investment Bank has ended with a plea from a left-of-centre think tank to give the bank a clear social mission.
In its submission to MSPs, Common Weal argues that only a guaranteed mission to act for “the common good” can keep the bank from eventually turning into just another profit-seeking financial institution.
The group also wants a guarantee that the bank cannot eventually be privatised, as happened to the UK government’s Edinburgh-based Green Investment Bank.
The SNIB, announced by first minister Nicola Sturgeon in September’s Programme for Government, is being set up on behalf of ministers by a working group led by the Tesco Bank chief executive Benny Higgins.
Common Weal, a long-time campaigner for an SNIB, argues that it must be structured to support projects that contribute to “a ‘public good’ intervention in the economy as a whole”.
The warning reflects perceptions among some that previous government economic interventions like the enterprise agencies have become increasingly commercial in their approach.
The think-tank suggests a series of mission statements setting out the bank’s commitment to diversity of ownership, sectoral rebalancing, innovation and addressing social and economic “imperatives.”
It also wants a stakeholder governance structure, a commitment to retain the bank in majority public ownership, and an entitlement to lend to both the public and private sectors.
“This is a really big opportunity for Scotland, but we really need to get this right,” Robin McAlpine, Common Weal director, said.
“A half-hearted attempt to do this will only leave an institution that no-one really comes to love.
“This needs to be well designed, mission-driven and bold in its scale and ambition if it is to have the impact it should and if it is to become a permanent, trusted and respected part of Scotland’s economic future.”
