SCOTTISH Secretary Ian Murray has called for the Scottish National Investment Bank (SNIB) to be able to invest in defence companies.
The UK Government announced plans to increase defence spending to 2.5%, rising to 3% in the next parliament. It has also pledged to cut international aid to 0.3% of gross national income – or around £6 billion per year – to fund an increase in defence spending. A move which has attracted criticism from political figures.
Earlier this week the Scottish Government rejected a proposal from former SNP MP Stewart McDonald who said the bank – which is funded by the Scottish Government – should be able to invest directly in arms firms.
The Scottish Government said the investment would not match the SNIB’s “missions” of addressing climate change, transforming communities or scaling up tech innovation.
Following a speech and Q&A session in Edinburgh on Friday, Murray echoed McDonald’s calls for the bank should to invest in the country’s defence sector.
“The Scottish National Investment Bank can’t [invest in defence] because of politics in Scotland” he told the PA news agency.
He continued: “It isn’t credible in terms of the defence position the current Scottish Government has and they have to back the Scottish defence industry.
“That increase to 2.5% of GDP, obviously there’s a whole host of arguments and reasons for it on the global stage, but actually when you distil it down to economic development, it’s about jobs and growth in the defence industry in Scotland.
“We’re well placed to take advantage of that and we should be doing everything in our possible power to make sure we are taking advantage of it.”
Responding to McDonald’s calls, a spokesman for the Scottish Government said: “All investments from the SNIB must deliver both commercial returns and support at least one of the bank’s missions: addressing the climate crisis, transforming communities, or scaling up innovation and technology.
“In line with policy, the bank does not invest in organisations that are primarily engaged in the manufacture of munitions or weapons.”
The Labour Government’s moves to ramp up militarisation has sparked warnings from anti-war campaigners. David Mackenzie, secretary of the Secure Scotland group, said: “We really need to stop and think. We should be talking about how to get off the slippery slope, instead of pointing out the grubby economic gains.
“Surely as Scots we want for ourselves and our future a better vision, based on promoting peace, working for our common global security, rather than helping to inflame an already dangerous situation.”
