McInnes demands action to encourage new business in Dundee

12.00.00am BST (GMT +0100) Thu 5th Jun 2008

Alison McInnes, Liberal Democrat MSP for North East Scotland, has seized on figures showing a slump in the number of new business start ups.

Official figures from the Committee of Scottish Clearing Bankers show that in the first quarter of 2007, the number of start up businesses in Scotland was 8,356. In the first quarter of 2008, the number of start up businesses was 5,550 - a third less than the same time last year.

Commenting, Mrs McInnes said:

"CSCB figures show that across Scotland the number of new businesses has dropped by a third when compared with the same time last year. In Dundee new start ups dropped by 5%.

"This could be the start of a worrying trend for Scottish business, as new, profitable, successful and sustained business will be central to improving our economic growth rate.

"As a result of the swingeing cuts to Scottish Enterprise, there is now confusion over where responsibility for supporting new businesses under the Business Gateway rests - a situation that profoundly concerns business.

"A heady mixture of slashed budgets, ill-considered proposals and lingering uncertainty about the SNP's plans for business have combined to create an environment in which encouraging and supporting new businesses to start up has been needlessly difficult.

"In opposition, the SNP talked about the need to improve dramatically Scotland's business start up rate. In Government, they have presided over a slump. The Scottish Government must raise its game."