Sir David Murray: Scotland is run like an insolvent firm
The former chairman of Rangers FC has given his assessment on the state of Scotland
Sir David Murray has criticised “waste” in big government infrastructure projects and claimed that if Scotland was a business, it would be insolvent.
Multi-millionaire Sir David, the former Rangers chairman who forged much of his wealth in steel and property, said his “main gripe” with the Scottish government was the projects which came in over budget and behind time.
While he has not pledged any allegiance to a political party, he has been vocal about how the current Government’s decisions impact business.
He said: “For every £100 we take in in tax, we’re spending £120. We’ve got nearly a 12% GDP deficit. It’s unsustainable. If we’re a business we’re trading insolvently, we can’t go on like this.
“My main gripe is the waste in projects. When I was in Glasgow last week, I took the car past the new Barlinnie (prison) getting built. Already it’s going to be more than double the price, and already it’s not big enough.
“Then I carried through to Airdrie-Coatbridge and the site of the new Monklands hospital, which I’m told if it’s finished for 2033 it could be £2 billion. I do not understand.
“We seem to make the same mistakes again and again. Where’s the discipline in building projects?
“The Aberdeen bypass, the Aberdeen hospital, the Sick Kids in Edinburgh – when they’re building it, halfway through they realise (it’s) not the right filters in the system.
“Surely somebody must be held responsible. These are massive projects which are not being controlled properly.”
Sir Murray formed Murray International Metals Limited by the age of 23 and is currently the chairman of Murray Capital, a private investment company which is wholly owned by the Murray family.
It invests primarily in traditional economy businesses, with a preference for industrial sectors including manufacturing, engineering and oil and gas.
He claimed there was a tendency for some politicians to “sneer” at business people who had generated wealth and that more needed to be done to encourage entrepreneurship.
Ahead of the election, the Scottish Greens have pledged to introduce a 10:1 pay ratio for any company or organisation receiving significant funding or contracts from the Scottish government.
This would be added to the conditionality of grants and contracts and mean the highest-paid employee at an organisation could not earn more than 10 times the salary of the lowest-paid worker.
The party has said it would be a wage cap on executive pay in order to distribute wealth.
Sir David said a cap on wages would put “a cap on ambition”.
He said: “I also think, unfortunately, some politicians… sneer at business people as if we’ve done something wrong to build a business to make money. There’s nothing to be ashamed about making money, as long as you do it within the rules along the way.
“But I don’t think we encourage entrepreneurship. I don’t think we welcome enough business people, when you’re getting top business people going on radio shows and saying: ‘If we keep shaking the tree, there’ll be no apples to fall.’
“You can’t keep going and going and going, there’ll be no money. I saw recently one of the politicians wants to put a cap on wages. Well, you might as well put a cap on ambition. Where’s the ambition?”
Sir Murray formed Murray International Metals Limited by the age of 23 and is currently the chairman of Murray Capital, a private investment company which is wholly owned by the Murray family.
It invests primarily in traditional economy businesses, with a preference for industrial sectors including manufacturing, engineering and oil and gas.
He previously called into question the use of steel sourced in China in the construction of two new CalMac ferries rather than buying metal produced at the Dalzell plant in Motherwell.
Earlier, he revealed he has been in discussions to revive the plant as a centre for wind turbine production.
An SNP spokesperson commented: “The SNP has driven forward economic growth in Scotland. Most recent GDP figures show we outperformed the UK as a whole, Scotland has the highest levels of foreign direct investment of anywhere in the UK outside of London, most people are expected to pay less income tax than they would south of the border, and two global credit rating agencies have given Scotland a high investment grade matching the UK – and higher than some other G7 economies.
“Broken, Brexit Britain is in terminal decline and through a fresh start with independence we can re-join the EU and use our vast energy wealth to unleash economic growth that allows us to build a wealthier and fairer Scotland anew – that future is on the ballot in May and only a vote for the SNP can secure it.”
Sir David released his book Mettle last year which became a Sunday Times bestseller, with the paperback due to be released on May 9.
His book covers the downfall of Rangers after he sold the club to businessman Craig Whyte for £1 in 2011. Within a year the Ibrox club was placed into liquidation over unpaid tax bills and forced to restart in the fourth tier of Scottish football.
The financial difficulties were exacerbated by a large debt accumulated under Murray's ownership, where £47million in tax-free loans were paid to players in staff in the form of Employee Benefit Trusts (EBTs).
All the proceeds of Sir David’s book are going to the Erskine Veterans Charity.
“I’ve been a long supporter,” he said. “When I first became an amputee many, many years ago, and I was involved in basketball, it was always a Thistle basketball club who came from people who were at the Erskine hospital.
“So for 40 years, I’ve known of the hospital. It’s been through our foundation, we have a Murray foundation. One of the constant contributions we make is to the Erskine hospital.
“If you look at and read about what they do, they help a lot of people.”
Sir David underwent a double amputation of his legs following a car crash when he was aged just 24.
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