The benefits of basing the Green Investment Bank in Edinburgh would be decidedly more than just 75 jobs
The race for where to base the UK's Green Investment Bank is heating up and it seems that Edinburgh's competition has just got tougher.
More than 20 cities have now put themselves forward, including Stoke-on-Trent, Liverpool, London, Edinburgh, Bristol, Nottingham and Newcastle.
Although the kudos of winning the bid would be good for the Scottish capital, the Green Investment Bank will, eventually, employ just 75 people (even if they're relatively highly skilled jobs).
The lobbying has already begun; Edinburgh South Labour MP Ian Murray, said: "We have the specialist and skilled staff to run the organisation, it would be at the heart of the financial services sector in Edinburgh and the location would give fantastic value for money with an abundance of trained staff."
There's no doubting that Scotland has a decent core of renewal energy expertise locally, but if it needed to recruit externally, would it be willing or able to pay City-style salaries and bonuses that many have suggested would be required to attract the necessary staff?
Well, maybe not, but salaries in Edinburgh's financial sector are certainly higher than many cities on that list.
The big question though is whether it's worth all this extensive bidding for a relatively small number of jobs. The answer, at least in the medium to long-term, is a definite yes.
"The effect on employment in Scotland will undoubtedly be positive and whilst the numbers directly employed may well turn out to be small at the initial stages, the knock on effect on indirect employment in Scotland will be significant if the bank is located here," says Tom Speirs, a partner in the energy and climate change team at law firm HBG Gateley Wareing in Edinburgh.
Notably, he says, the knock on effect will provide more work for banks and financial services organisations locally, as well as accounting and legal firms. Outside of professional services, there could also be a boost for engineering and manufacturing north of the border, he says.
Considering the ongoing predictions of relative stagnation in the Scottish financial services sector, this could be the shot in the arm needed to create jobs.
