Dundee and Angus Chamber of Commerce has called on the Scottish Government to increase support for the business community in the new year.
Chief executive Alan Mitchell said he expects ”another tough year” in 2012 with business confidence being hit by continuing problems in the Eurozone, public spending cuts and increasing consumer uncertainty.
Mr Mitchell said it is vital the authorities redouble efforts to encourage inward investment and export trade opportunities and ensure the wider business environment does not put Scottish businesses at a competitive disadvantage compared to other economies.
He said: ”Global trade is still rising. This means more international opportunities than ever before and effective backing from the Scottish Government will be critical to winning that business.
”The Scottish Government is spending a bigger proportion of its budget on infrastructure projects but that spend has to filter down to local firms.
”The Government must deliver a competitive tax regime in 2012. Business rates could rise by nearly 6% in April 2012 that will damage the economy by making businesses less likely to invest.
”And they should re-visit their plans to subject colleges to swingeing budget cuts because reducing investment in future skills makes no economic sense.”
Despite the wider economic gloom, Mr Mitchell said there is reason for optimism in the economy locally.
He said the chamber is setting up an energy forum and tourism group to support ”future growth sectors” and said the prospects for renewables energy giant SSE this month committed itself to developing plans for a manufacturing base at Dundee Port that could support hundreds of jobs is particularly exciting.
However, he said lessons could be learned from established sectors such as the life sciences to ensure the best chance of a positive outcome for the region.
”There are no easy fixes just hard work, innovation, collaboration, and a dose of good fortune. This region has businesses that have already risen to the challenge and will continue to do so,” Mr Mitchell said.
”More recently we have all been excited because we could be a significant renewable energy hub. The timescales over which these initiatives will bring new investment and jobs will vary and, in some cases, will be medium and long-term.
”But they will bring jobs and investment, and the big challenge, particularly for the public agencies that are in the lead in delivering the projects, is to get in front of local companies to inform and educate them, so they know what opportunities are coming and they can get ready to take advantage.
”Life sciences has been a great success story for this area because of the really effective collaboration and joint planning that the key organisations like NHS Tayside, Dundee City Council and the University of Dundee achieved. That model for joined-up decision-making has served us well.”