1. This document sets out the Scottish Government's proposed missions for the Scottish National Investment Bank (the Bank). It outlines the Bank's mission-oriented approach and explains why these are the right missions for the Bank to adopt at this time.
2. This document will be laid in the Scottish Parliament for the purposes of consultation for a period of 40 days. This 40 day period will not take into account any time when Parliament is dissolved or in recess for more than 4 days.
Support for a Mission-Oriented Approach
3. The Bank will adopt a mission-oriented approach when providing finance, with missions set by the Scottish Government as recommended in the Bank's Implementation Plan. Adopting this approach will focus the Bank towards addressing pressing challenges facing Scottish society. The clarity that the missions provide will also give the opportunity to crowd-in investment, create and shape new markets and promote inclusive economic growth. This is an innovative opportunity for investment drivers to be along different lines from those typically used by private investment institutions and development banks.
4. A mission-oriented approach will support delivery of the Bank's vision to "provide finance and act to catalyse private investment to achieve a step change in growth for the Scottish economy by powering innovation and accelerating the move to a net zero emissions, high-tech, connected, globally-competitive and inclusive economy".
5. The Scottish Government has held two public consultations regarding proposals to establish the Bank. The first consultation invited comments and suggestions on key issues on the creation of the Bank (responses published in February 2018), and the second consultation was undertaken to help inform development of the Scottish National Investment Bank Bill (the Bill) (responses published February 2019). The consultation responses show extensive support for the proposed approach, with mission-oriented finance expected to impact positively on sustainable economic growth.
6. Similarly, support for the Bank to adopt a mission-oriented approach was demonstrated during the passage of the Bill. The Economy, Energy and Fair Work Committee stated in its Stage 1 report on the Bill that they welcomed the intention that the missions will be "central to the ethos of the Bank, will absorb and direct its energy and resources, and will ensure the focus of its work".