Repercussions of Foreign Ownership in the Scottish Food and Drink Sector

The potential implications of businesses in the food and drink sector in Scotland being owned and controlled by entities outside of the country were brought to the forefront at the Holyrood last week. Seasoned SNP MSP John Mason addressed the rural affairs secretary on the matter, contending that while jobs and turnover were being generated in Scotland, profits were being repatriated overseas. He emphasised that the majority of the top five whisky and salmon business owners were from outside of Scotland.

He brought this concern to the attention of the room, stating, “Surely, the Government should be concerned that the profits are leaving Scotland.” In response, Mairi Gougeon underscored, “we want to ensure that we maximise the benefits for Scotland wherever we can.”

The rural affairs secretary added, “As part of our overall approach to enhancing economic growth in Scotland, we have the national strategy for economic transformation and Scotland’s inward investment plan, which aim to support and create a positive business environment that contributes to improvements in commercial confidence and investment, as well as to Scotland’s overall attractiveness as a location for inward investment.”

Ms. Gougeon went on to point out, “The benefits of carefully targeted inward investment can be seen across Scotland’s economy. There are supply chain opportunities, and we also see productivity improvements through innovation. Those additional spillover benefits act to create opportunities for existing Scottish-owned businesses by providing them with access to markets and technologies that they might not otherwise have benefited from.”

She further elaborated, “Through Scotland’s inward investment plan, we seek to attract the knowledge, know-how, products and technologies that do not readily exist in Scotland, to enhance and complement our clusters, supply chains and communities.”

The discussion was further enriched when Tory MSP Biran Whittle intervened and asked Ms. Gougeon to comment on the need to support the rural economy, bolster local suppliers, and ensure that public food procurement is as robust as it possibly can be. Ms. Gougeon concluded the session by expressing, “In order to address some of the issues around that complex landscape, the key vehicle that we can look at is the good food nation plan; we have recently consulted on the plan and are considering the responses.”