MSPs call for formal role in setting direction of public sector lender

The recommendation was made in a unanimous cross-party report on the law enabling the new public sector lender, from Holyrood’s Economy Committee.

Currently, Scottish ministers insist that they, as the bank’s only shareholder and sponsor, will “set the direction for its investments through its strategic missions”.

The SNIB is to provide “patient capital” for Scottish companies which may otherwise be unable to find it, helping them borrow over the course of 10 to 15 years.

It is expected to be established next year and the Scottish government has committed £2 billion over a decade to capitalise the bank.

MSPs said in their report that the SNIB had the potential to be a “positive and integral part of the Scottish economy”, as they approved the general principles of the bill to empower ministers to create the bank.

But they also said that Parliament “should be formally consulted on those areas that will set the long-term focus of the Bank’s work - likely to be fundamental policy matters such as climate crisis, social housing or the care system”.

Committee convener Gordon Lindhurst said: “From the array of evidence we heard, the Scottish National Investment Bank has the potential to be a positive and integral part of the Scottish economy.

“However, there are areas covered by the Bill and accompanying documents on which further work is required to ensure that the bank’s full potential is achieved.

“The committee considers that there is a crucial and formal role that MSPs should continue to play in the development of the bank. Similar processes exist in other pieces of comparable legislation and would be entirely appropriate here.

“The committee recognised the vital role the bank will play in fundamental policy matters such as social housing, climate change or the care system, to name but a few.”

Scottish Conservative MSP Dean Lockhart said: “There are still a huge number of outstanding questions regarding the SNP’s plans for the Scottish National Investment Bank that need answered.

“There is still little indication of what the structure of the bank will be, and how closely involved SNP ministers will be in running it. With the SNP seemingly clueless on this, it’s only right MSPs play a formal role in setting the SNIB’s role and goals.

“Given the SNP’s track-record of failure on the economy we cannot afford to allow them to make a mess of this as well.”

Labour’s Jackie Baillie said: “The SNP government has staggered from one failed economic project to the next. The Scottish-European Growth Co-Investment Fund has only spent £3.2m out of a £200m fund to help businesses.

“The SNIB cannot be a wasted opportunity and another SNP failure in government.”