The manufacturing sector has been suffering

The message from Enterprise Minister Jim Wallace came as he set out his assessment of the Scottish economy and how the executive intends to improve it.

Mr Wallace told MSPs of further initiatives to encourage calculated risk-taking, particularly by young entrepreneurs.

He spelt out his vision in his first major speech to parliament on the economy since he took over the enterprise portfolio.

But opposition leaders criticised ministers over Scotland's sluggish economy, with the SNP calling for immigration powers to help reverse population decline.

Despite the acute difficulties experience by Scottish businesses in recent times, our labour market continues to perform strongly Jim Wallace

Speaking in parliament, Mr Wallace said: "Despite the acute difficulties experienced by Scottish businesses in recent times, our labour market continues to perform strongly.

"However we have to address our underlying strengths and our weaknesses.

"By investment in research and development, by investment in training, we want to raise the skills of the Scottish people and have businesses that are succeeding - in that way we can deliver prosperity right across the board."

Mr Wallace did not depart from the executive's economic strategy - Smart, Successful Scotland - which has won support across the political divide.

Mr Wallace is calling for more risk taking

But he did stamp his own character on the strategy, for example by emphasising the potential for "green jobs" in the environmental sector.

SNP leader John Swinney argued in the same debate that the Scottish Parliament should take control of both economic and immigration policies.

He said population decline was "the gravest threat" to Scotland's economy and blamed it on economic mismanagement.

He said: "To reverse that trend we need full financial freedom for the parliament - the powers that will give Scotland a competitive advantage and create the conditions for growth and job creation."

'Disgraceful rhetoric'

Parliament, he said, should take responsibility for immigration if it wants to fulfil the first minister's aspiration of attracting fresh talent to Scotland.

Mr Swinney said: "I have no doubt his sentiments are genuine. But his words count for nothing in the face of the disgraceful rhetoric and actions of the Westminster parties.

"The message they are sending out is essentially - don't come here.

"I believe there is a consensus of disgust in the Scottish Parliament at the race to be the most racist going on at Westminster."

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