LABOUR DITHERED ON STIMULATING ECONOMY WHILST SNP ACTED.

LABOUR DITHERED ON STIMULATING ECONOMY WHILST SNP ACTED.

FACTS SHOW LONDON WELL BEHIND THE WORLD

Commenting on James Purnell's attack on the Scottish Government SNP MSP Alex Neil – a member of the Scottish Parliament's Finance Committee – said the Work and Pensions Secretary had shown his ignorance as the Scottish Government acted early

compared to the dithering and delay from the Labour Government.

Mr Neil pointed out:

• Alex Salmond announced in August 2008 that European Structural Funds would be accelerated and used to provide a direct stimulus to the Scottish economy. This was five months before England and Wales

• The SNP Government announced support for home owners and the bringing forward of £100 million of investment in affordable housing.

• The SNP Government announced its six-point plan to stimulate the Scottish economy on 14th October. It was only on 24th November that Labour announced their stimulus package

• At least seven governments from major world economies announced their stimulus package well before Labour

• The Labour government's Treasury has refused to release £1 billion of funding requested by the Scottish government to help stimulate the Scottish economy

• Labour's plans will result in £1 billion of cuts in the Scottish budget in the last two years of the current spending round

• Research shows Labour's 2.5% VAT cut will cost £1billion in Scotland and only support 7,200 jobs while a capital investment programme of the same value - favoured by the SNP Government - has the potential to support 14,900 jobs. Remarks by the IMF's chief economist Olivier Blanchard have backed up this research

Commenting Mr Neil said:

"James Purnell 's ill-informed comments show how little he knows about Scotland and even less about the actions the Scottish Government has taken to stimulate the Scottish economy.

"All he has done is expose Labour 's dithering and delay in the face of Gordon Brown's recession .

Not only did the Scottish Government announce its plans nearly a month and half before Labour in London but the rest of the world has been outpacing Brown's Britain as well.

"And the fact is that the First Minister announced that European Structural Funds would be accelerated and used to provide a direct stimulus to the Scottish economy in August 2008 – FIVE MONTHS before England and Wales.

"Far from leading – or "saving" – the world the facts speak for themselves and show that Brown is being left behind in the wake of action by other Governments.

"In fact the more we learn from countries and governments around the world the more we learn that Brown 's claim to have "saved the world" is a work of fiction."