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Andrew Whitehead: Manufacturing an argument for the Scottish independence debate

Would a 'Yes' vote in Scotland enhance or reduce the manufacturing sector in the country and the º£½ÇÊÓÆµ as a whole?  

Last time around, I blogged a few thoughts on the Scottish independence debate from the perspective of the education sector - one of the key industry sectors here at SGH Martineau.

Another is the manufacturing sector, and so I asked Adam McGiveron, who heads that sector for us, for his thoughts.

In June, the Scottish government released a report, snappily titled 'Reindustrialising Scotland for the 21st Century: A Sustainable Industrial Strategy for a Modern, Independent Nation'.

The report advocates that a 'Yes' vote would create more jobs in manufacturing, through the ability to design a tax system which encourages companies to hire more workers and which offers financial allowances for capital investment in manufacturing.

Indeed, Alex Salmond has said that an independent Scotland could boost domestic manufacturing by 30 per cent.

With both Scotland, and the º£½ÇÊÓÆµ as a whole, desperate to boost domestic growth as a whole and the manufacturing sector in particular, the question is a simple one: Are the prospects both sides of the border enhanced, or reduced, if the two sides go it alone rather than together?

According to Adam, the key question will be how this is viewed from outside the º£½ÇÊÓÆµ.

With much of º£½ÇÊÓÆµ manufacturing reliant on overseas investment, especially in the automotive sector, the crucial issue is whether global companies from countries like India, China and Japan will be attracted by the investment prospects in a brand new country with a limited track record of government and, if not, whether the rump º£½ÇÊÓÆµ is perceived as a smaller and less influential country and therefore a less attractive base for European operations.