An exclusive interview with Rodney Ayre, President of the Scottish Chambers of Commerce, conducted by Scott Wright, left, Deputy Business Editor at The Herald.
Rodney Ayre, the Mitsubishi veteran recently appointed president of Scottish Chambers of Commerce (SCC), has stated his view that there is a better way for business and the Scottish Government to work together, following years of strain between the two parties.
And he underlined the importance of Scotland continuing to foster strong economic ties with the US, amid concern President-elect Donald Trump will reintroduce import tariffs on products such as textiles and single malt Scotch whisky after his inauguration next week.
Relations between business and Scottish Government ministers have been a source of tension in recent years, notably in the period since the Covid-19 pandemic, with company bosses frequently expressing frustration that the political leadership at Holyrood does not understand or prioritise business. This impression has not been helped by the fall-out from the flawed deposit return scheme, controversial proposals to severely restrict alcohol advertising, and a sense that sectors such as hospitality have not been provided with sufficient support during various crises.
The latest Scottish Business Monitor, a survey of more than 350 firms produced by the Fraser of Allander Institute shortly before Christmas, found that just 9% of Scottish firms agreed that the Scottish Government understands the business environment.
Meanwhile, at UK level, the decision by Chancellor Rachel Reeves to hike employer national insurance contributions have also drawn sharp criticism from sections of the business community, such as retail. Critics of Ms Reeves have also questioned her plan for kick-starting UK economic growth.
Mr Ayre, a manufacturing engineer who heads production at Mitsubishi’s six sites in West Lothian, acknowledges that much government activity in recent years, on both sides of the Border, has focused on crisis management, whether relating to the pandemic, war in Ukraine or the cost of living crisis. He said First Minister John Swinney “looks like he listens” and praises the openness of other political figures such as Minister for Business Richard Lochhead and Russell Findlay, leader of the Scottish Conservatives. But he suggested business could bring more to the table.
Speaking exclusively to The Herald, Mr Ayre said: “It sounds like there is a voice to be listened to, [but] do we [business] give them enough on the table for them to get behind? It is easy to complain. I work in a business where it is very easy to complain. A problem without a solution is a complaint, and I have got no time for complaints! And I think maybe the government is a little bit like that.
“[Government might say] ‘Okay, I hear you complaining about this, have you got something to give me?’. I think we could maybe be better at doing that.”
Mr Ayre, who succeeded Crieff Hydro hotel boss Stephen Leckie as president of SCC, cited his experience at Mitsubishi, which is heavily involved in the roll-out of heat pumps to households across Scotland. He said Mitsubishi cannot do this on its own and stressed the importance of cash support from government for the boiler upgrade scheme. He also said the company needs government to support legislation to tackle the fact electricity is priced more expensively than gas, and to tackle “disinformation from lobbyists” around the energy transition.
However, Mr Ayre emphasised that Mitsubishi is not relying solely on government to tackle these challenges, noting that it has built its own training centre to ensure it has enough skilled workers. It negotiates tariffs with suppliers such as Octopus to secure prices are as close as possible to those enjoyed by electric vehicles for ground sourced heat pumps.
Mr Ayre said: “Businesses like mine are good at doing things by themselves. That is a bit of selfish statement – Mitsubishi Electric is by no means a small business. Small and micro [firms] aren’t able to do that. How can we use all that power to put something better on the table that says to the government, if you do this, we will give you that.”
Meanwhile, Mr Ayre offered his view on the implications for the Scottish economy for a second Donald Trump presidency in the US, amid fears among sectors such as whisky and textiles that the controversial politician will reintroduce tariffs on imports across the Atlantic.
Mr Ayre said: “We are aware and had a look at what he did the last time. It is very unpredictable what he will do, and I don’t think the current rhetoric that has been through the newspapers in the last few days [around Trump’s views on the North Sea] will help.”
Observing that US politics is conducted very differently to the UK, Mr Ayre added: “Will he increase tariffs on some products from Scotland? I think it depends very much on his relationship with Scotland, because he is a relationship man.
“I don’t think he doesn’t like Scotland. I just think that some of our politicians should maybe ‘haud their wheesht’ until they find out what is going to go on.
“When you have got the biggest business leader in the world, the first thing you don’t come out and say is I don’t want to talk to you. You might come out at the end of the meeting and say, thanks for the conversation, but we are done. Donald Trump is a businessman, first and foremost he is a businessman.
“Is there an opportunity? There is. There definitely is. A trade agreement would be enormous. I don’t believe everything I read or see. I’m old fashioned. If you shake my hand and we agree to trust each other… break that and you are done. There is always an opportunity.”
Originally published in The Herald on the 18th of January 2025, produced exclusively by Scott Wright, Deputy Business Editor, The Herald