Thursday, 8 December 2011

Birlinn book blast on subsidies

Birlinn Ltd is a book publisher based in Newington Road.  Its managing director is Hugh Andrew.  Today he has an excellent article in the Scotsman raising important issues about subsidies.

Particularly, he railed against Amazon being paid £10m to locate in Scotland when local firms loose jobs and do not get such subsidy largesse.   Whilst all companies need to adapt to changing demands - and Amazon have a business model which is superbly efficient for customers who increasingly buy books online - he makes some excellent points about subsidies and the corrosive effect they have. Here below are a couple of  extracts but the full article is well worth a read.
It is this story that reveals the utter moral and economic bankruptcy at the heart of Scottish government. . . 
. . . Ultimately business flourishes not because of subsidy but profit, and it is the creation of a flourishing economic ecosystem which enables that profit to be generated. Every distortion, every subsidy represents not an enhancement of that ecosystem but its slow death. And to add insult to injury, it is indigenous business that will pay for its own destruction through a 5.6 per cent increase in business rates in the worst recession in our lifetimes.

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