Scotland to get a National Investment Bank to help grow the economy and do what the big banks have failed to do

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You’ll remember the trillions Gordon Brown gave to the big UK banks and his expectation that they would use at least some of that to lend to new and growing businesses. They didn’t. They stashed it away to make their accounts look good and, of course, gave themselves bonuses. Announcing the commitment to a Scottish National Investment Bank, the First Minister neatly summed up the rationale for having one:

‘A significant constraint faced by many businesses with growth potential is access to long term, patient capital. I can therefore announce today that we will begin work to establish a Scottish National Investment Bank.’

In other words, if RBS and the others won’t help us grow the economy, we’ll have to do it ourselves. This is an already established idea in many European countries:

‘The Council of Economic Advisers has highlighted the important role National Investment Banks play in providing long term investment to support economic growth in many European countries.’

When Jeremy Corbyn suggested UK have one in 2016 it was shot down as a crackpot leftist idea. Of course, Germany has the Kreditanstalt für Wiederaufbau. I think they know a thing or two about running an economy.

https://news.gov.scot/news/scottish-national-investment-bank

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12 thoughts on “Scotland to get a National Investment Bank to help grow the economy and do what the big banks have failed to do

  1. Alasdair Macdonald September 6, 2017 / 9:20 am

    Mr Robertson, you just don’t get it do you? SNPBaaaaaaaaaaaaaad.

    That is why SLab are going to vote Anas Sarwar as leader – he is going to ‘fight the SNP’ That’s the important thing isn’t it? It’s not about fighting the baleful Tory austerity and ‘welfare’ policies. It is not about developing the economy of Scotland as the investment bank will do.

    I think you are being too kind to Messrs Brown and Darling regarding the bale out of the banks. Darling was simply defending the interests of his class and has been rewarded with a sinecure in the Lords and the City and the failed PM has things fairly cushy, too.

    Keep up the good work.

    Like

    • johnrobertson834 September 6, 2017 / 10:41 am

      Thanks Alasdair,. I get it but I won’t stop. I agree fully with your other points especially about Darling

      Like

  2. William Henderson September 6, 2017 / 9:28 am

    Best news ever!!!! Expect RUCTIONS from established power.

    They don’t like intelligent, moral newcomers in their money-creation racket.

    Like

  3. Clydebuilt September 6, 2017 / 10:00 am

    Darling and Brown secured

    1. Transfer of Ownership of BoS to Lloyds
    2. State ownership of RBS
    3. Sale of (Scotland’s biggest building soc.) Dunfermline Building Society to Nationwide, “Forced by Bank of England”

    I remember
    1. Mathewson arguing to save the RBS
    2. the CEO of the DBS on with Brewer saying there was no need for the forced sale, clearly agitated, doing all he could to save the society.
    3. the risk controller ( correct title?) going public about the goings on at the BoS. With agent Andy Hornby being whisked off to a safe job at Boots

    D & B didn’t save Scotland’s banking industry, they transferred its ownership or sold it off ( To English institutions)

    Like

    • Clydebuilt September 6, 2017 / 10:03 am

      Scottish National Investment bank , great idea , wish they had done it sooner

      Liked by 1 person

  4. Sam September 6, 2017 / 11:05 am

    Expecting Westminster to be against a Scottish Investment bank. They won’t want to see the SNP succeed at growing our economy.
    It’ll all disappear when the Tories close down Holyrood after Brexit.

    Like

  5. Contrary September 7, 2017 / 8:24 am

    It looks like an investment bank is a great idea – I just don’t know the full implications of what it does and how it does, but it sounds like it offers serious stability to businesses,,,, and we know how businesses get upset by uncertainty. I am assuming that the scotgov can go ahead with this without any ‘approval’ from elsewhere?

    Personally, as far as I’m concerned, anyone in power in Westminster makes no difference to the Scottish situation, they are all part of the establishment and each will perpetuate the archaic feudal system in place in Westminster and will have no intention of changing the system because it benefits them financially and socially, to the detriment of the populace. We can not rely on the large population of England to vote to change the system, they never will do, so Scotland needs out. It makes no difference if Jeremy is in there or not. Sorry about being negative on this, but I’ve noticed a general theme of thinking Jeremy is some kind saviour – not for Scotland, but I hope it happens for our English cousins. It might, maybe, but I certainly wouldn’t rely on it, make independence negotiations a bit more civilised if Jeremy was PM right enough.

    Like

    • Willie Hogg September 7, 2017 / 1:23 pm

      There is a Scottish Investment Bank ltd which is part of Scottish Enterprise and invests in SMEs, The proposal is that a much larger National Investment Bank be formed to provide loans to support Civic investment. It is intended that it will replace PPP funding in future schemes.

      Like

    • Contrary September 7, 2017 / 10:30 pm

      Ohhhhh. Okay, thanks Willie, so they already have a working scheme for small enterprises, and are broadening it to include funding of bigger and/or more projects? (I’ve just read John’s latest post where he says he waits to be corrected ‘with a calm and modest mind’ and I now can’t get it out of my head!)(do correct me if I’m wrong! I am certain I am calm).

      I think I just have a bit of a visceral fear of anything called ‘bank’ with ‘investment’ attached, I just think London, and bonuses, etc. I am sure I will be able to shake it off, the further away we get from London.

      Like

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