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Scotland's financial giant leads way in 'Power' list

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Published Date: 07 February 2008
THE Scotsman's countdown of the country's 50 most powerful people shows the rich and diverse nature of Scotland's culture – and highlights the plethora of self-made personalities who have fought to the top of their profession by sheer determination and hard work.
But the snapshot of influence also demonstrates the importance of a university education – and suggests an enduring gender bias in favour of men.

According to Dr Philip Beresford, the man behind the Sunday Times Rich List, the three centres of eco
nomic power in Scotland are Aberdeen's oil, Edinburgh's finance and Glasgow's industry.

All three sectors feature in our list, typified by Sir Ian Wood (oil), the likes of Fred Goodwin, Keith Skeoch and Sir Angus Grossart (financial services), and Mark Selway and Jim McColl (industry).

Scotland is dominated by "plenty of self-made wealth", said Dr Beresford – a fact made clear from inclusion on the list of names such as Sir Tom Hunter, Sir Tom Farmer and Brian Souter/Ann Gloag, all in our top ten. Only one aristocrat is on the list – Richard Scott, the tenth Duke of Buccleuch.

The list is also dominated by those who attended state schools, rather than the privately educated. Of the 43 The Scotsman was able to compare (excluding those schooled overseas or who attended fee-paying and state schools), 32 were state-educated and just 11 went to private schools.

Neil McGregor, head of the Scottish Economic Research Unit, said this was a huge vindication of Scotland's much-derided education system.

"It shows there is still clear opportunity to go from a state school education into positions of power in Scotland," he said.

"The fact that a big majority of the most powerful people went through the Scottish public education system shows it does provide a basis for getting ahead and taking the opportunities to excel. There seems to be no favouritism to people who went to private school."

Tied to the phenomenon of self-made wealth is the trend for modern philanthropy.

The Sir Toms – Hunter and Farmer – and Sir Ian Wood (and JK Rowling) have made their own multimillions and are now intent on giving much of their money away through trusts to charitable causes.

And although Sir Tom Hunter was reported as saying he regretted giving cash to Labour and believed political parties should not rely on rich men for their survival, both Sir Tom Farmer and Brian Souter have supported the SNP in the recent past – and on both occasions, their decision was seen as a giving out a powerful political signal.

Dr Beresford said politicians no longer wielded the power they once had over business, because there was no longer such a policy division among the main parties. In fact, he said, influence now tended to flow the other way, with politicians desperate to have "the stardust" of the successful entrepreneur or celebrity rub off on them.

Although the top ten of the 50 Power Scots is heavily weighted towards business, key positions in the list are also held by – quite naturally – Alex Salmond and Gordon Brown, whose relationship is key to the whole future of Scotland. There are also many in the top 50 who have made their names in arts or popular culture.

Mr McGregor said: "Having people like Fred Kiernan and Greg Hemphill (No 44) says quite a lot about Scottish culture. They probably would be the first to admit they are nowhere near the top 50 in terms of wealth, but the influence the media maybe has in Scotland, in terms of music and the arts, justifies that."

However, Professor Christine Geraghty of Glasgow University's theatre, film and television studies department, said the list overall was relatively traditional – and reflected a Scotland concerned with the economy and banking.

She said there were fewer media figures who might expect to be included today, and warned against over-interpreting the inclusion of two of Scotland's international successes – JK Rowling (No 7) and Kevin MacDonald (No 35).

She said these two, particularly Ms Rowling, were phenomena and should be looked at as individuals, rather than demonstrative of a wider trend.

But she admitted the inclusion of Kirsty Wark and Alan Clements (No 34) and Eileen Gallagher (No 33), demonstrated the important role of Scottish talent in independent television production, and the power the main players wielded.

She said the inclusion of people such as the director of the Edinburgh International Festival and the Book Festival and the organiser of T in the Park showed that Scotland was trying to create itself as a base for tourism, "and successfully so".

Prof Geraghty also pointed out the over-representation of men with top-level jobs in football – George Burley, Walter Smith, Gordon Strachan and Gordon Smith. However, she said this perhaps reflected accurately the division of power in Scotland – with the hopes and dreams of many of its citizens wrapped up in the national sport, which also generates a hefty income for its economy.

The media and popular culture entries – aside from sport – are noteworthy for the high number of women. Outside these categories, only eight women appear in the top 50 power list.

Professor Ruth Evans, an expert in feminist study and criticism at Stirling University, said this could be partially explained by the list's heavy bias towards industry, business and politics, rather than areas populated by higher numbers of women, such as the arts.

But she said it demonstrated, to an extent, the power inequalities which persisted today. Across the UK, she said, 96 per cent of board directors were male – and she called on recruiters to target women with methods such as more female-friendly business language.

According to Mr McGregor, the most common feature of our Power Scots is a university degree – and given that, traditionally, men were more likely to go into higher education, this might explain part of the bias.

But he said this could change for future generations. "The list shows if you want to get on, there are probably opportunities for those who haven't been to university to go straight from school and develop significant businesses, wealth and power – but it appears having a degree probably puts you in a better position to do it," he said.

"That has been the situation in the past, but with the opening up of higher education and greater access, that's perhaps changing."

Mr McGregor added: "When you talk about a meritocracy, you are talking about a situation where people have equal opportunity, not necessarily an equal outcome. There seems to be, at a political level, an ambition to increase opportunities for those who are maybe from a disadvantaged background."

So in ten years' time, this list could be very different – see you in 2018.

1 SIR FRED GOODWIN

BANKER


The law graduate has built up a formidable reputation since leaving Paisley Grammar and Glasgow University. He qualified as a chartered accountant in 1983 and, five years later, he was a partner with Touche Ross.

He was headhunted as deputy chief executive of Clydesdale Bank in 1995, became chief executive of Clydesdale and sister bank Yorkshire, then joined RBS in 1998 as deputy chief executive to Sir George Mathewson. He took the throne in 2001.

Sir Fred, now 48, had to contend with claims he was too young to run a major public company and was nicknamed "Fred the Shred" for his efficiency measures. But he masterminded the NatWest takeover, and, since then, the group has grown in size and reputation to be listed as one of the world's top ten banks. It now employs 135,000 staff and is worth almost £40 billion. He has led government task forces, but his real power lies in the way RBS is now synonymous with Edinburgh and Scotland. Anyone flying into the capital could be forgiven for thinking RBS owns the city, with its omnipresent airport logos and huge new HQ, with famous bridge, nearby. It is said a major airline which planned to cut services from Edinburgh was urged not to by Sir Fred – and did so. Others quip the RBS bridge should bear the slogan "Welcome To Fredinburgh" to reflect his influence.

2 SIR TOM HUNTER

ENTREPRENEUR/PHILANTHROPIST


An inspiration to all budding entrepreneurs – and a man of considerable influence. A grocer's son, he was born in Ayrshire and went to Cumnock Academy. He graduated from the Business School of Strathclyde University, began selling trainers from a van and built Sports Division into a major retailer. He founded private equity partnership West Coast Capital in 2001, has concluded more than £4 billion-worth of deals and by last April was reportedly Scotland's first home-grown billionaire. In 2006, he revealed plans to give away £1 billion to mainly educational causes here and abroad. He is committed to making Scotland a more enterprising nation.

3 ALEX SALMOND

FIRST MINISTER


As the first SNP First Minister, he is keen to secure as much power for Scotland as possible – up to and including independence. Born in Linlithgow, his father was a civil servant. He grew up on a council estate and went to Linlithgow Academy, going on to study economics and history at St Andrews University. He worked as an economist before becoming MP for Banff and Buchan in 1987. Elected to the SNP's top job in 1990, he led the party at Holyrood from 1999 but later quit as leader and as MSP. He stood for the Scottish Parliament again in 2007 and led the SNP to victory. His stock has risen, thanks to his use of charisma to tread a cautious, yet heavily patriotic line.

4 BRIAN SOUTER/ANN GLOAG

TRANSPORT TYCOONS


The brother and sister, raised on a Perth council estate and educated at Perth Academy, have built up a huge fortune from bus company Stagecoach. Souter studied at the University of Abertay, Dundee, before training as a chartered accountant. Gloag qualified as a nurse. She founded a bus company with then-husband Robin Gloag. They were joined by Souter and took chances afforded by 1980s bus deregulation to build their empire. Souter, a member of the evangelical Church of the Nazarene, fought the repeal of section 28 and bankrolled much of the SNP's 2007 election campaign. His sister has several charity interests.

5 GORDON BROWN

PRIME MINISTER


Despite devolution, Brown still holds wide-reaching powers in Scotland. He controls the country's macroeconomics and is responsible for sending its troops to war. Born in Govan, although his parents lived in Giffnock, he was raised in Kirkcaldy, where his father was a minister. He was educated at Kirkcaldy West Primary and selected for an experimental education programme, which took him two years early to Kirkcaldy High. He went to Edinburgh University at 16 and was a lecturer and journalist before becoming an MP. His relationship with Alex Salmond is crucial to Scotland's future.

6 SIR ANGUS GROSSART

FINANCIER


Sir Angus has been behind some of the boldest takeovers in modern Scotland and his name adds weight to any deal. Born in Lanarkshire, he grew up in a mining village, but was independently educated at the Glasgow Academy. After Glasgow University he spent seven years practising at the Bar in Edinburgh.

He is chairman/MD of Noble Grossart, the merchant bank he jointly founded. He has also served as chairman or director of many firms, including the Royal Bank of Scotland, where he was vice-chair and served on numerous public, cultural and charitable bodies.

7 JK ROWLING

AUTHOR


Joanne Rowling's real power is that she made a generation denounced as TV addicts and computer obsessives turn to books. On the back of this, she has developed formidable commercial powers, with her very name prompting financiers and donors to put their hands in their pockets. Forbes has named her the world's second-richest female entertainer and the 48th most powerful celebrity of 2007. She was runner-up in Time's 2007 Person of the Year.

The creator of Harry Potter is a notable philanthropist, supporting such charities as Comic Relief, the Multiple Sclerosis Society of Great Britain and One Parent Families. She can raise huge sums, as when her Tales of Beedle The Bard fetched £1.95 million at auction last year. She went to a state school in Monmouthshire, then Exeter University, and lived in Paris, Portugal and London before making Edinburgh her home.

8 SIR TOM FARMER

BUSINESSMAN


An inspiration to young entrepreneurs, the Kwik-Fit tycoon is an influential philanthropist and political funder. One of seven siblings from a devout Roman Catholic family, he went to Holy Cross Academy, Edinburgh, but left at 15 to train as an engineering apprentice. He went on to found his own firm which he sold five years later for £450,000. He retired to the US, but became bored and decided to find a new challenge. He returned to Edinburgh to start the Kwik-Fit chain of garages in 1971. He netted £78 million when it was sold in 1999 and recently made £2.4 million from the sale of Edinburgh Properties.

He is politically powerful, making a splash when he donated £100,000 to the SNP in 2006 to help fund the next year's election campaign. He is active in the charitable sector, and owns the island of Inchkeith in the Firth of Forth and nearly 90 per cent of Hibernian FC.

9 SIR BILL GAMMELL

OIL TYCOON


Gammell is ridiculously well-connected and has put a lot back into Scottish society, including funding sporting initiatives. The son of an investment banker, he attended Fettes College in Edinburgh, where he became the friend and debating partner of one Tony Blair. He read economics and accountancy at Stirling University and, after his international rugby career was ended by injury, followed his father into business. Using venture capital, he founded Cairn Energy and in the 1990s its fortunes soared when a field it had bought in India turned out to be a huge find, catapulting Cairn into the FTSE 100 – it is now Europe's biggest independent oil company. In the 1950s, Gammell's father invested in a US oil company owned by future president George Bush snr, and the two families became – and still are – friends. Gammell was knighted in 2006.

10 SIR JOHN ELVIDGE

CIVIL SERVANT


As permanent secretary to the Scottish Government, Sir John heads the civil service and is the most powerful public servant in Scotland. He grew up in London, where he attended Sir George Monoux School, a now-closed community school. He went to Oxford University, but has spent most of his working life in Scotland. He joined the Scottish Office in 1973, working in most departments, with an emphasis on economic development, physical infrastructure and EU relations. He was made permanent secretary in 2003 and knighted in the 2006 Birthday Honours.

Despite being part of the UK civil service, Sir John has gone out of his way to prove the government machine will work for the SNP administration. Indeed, some of his positive comments have been taken as a powerful endorsement of the Salmond government.





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  • Last Updated: 07 February 2008 12:14 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Power Scots
 
1

Mercutio,

FALKIRK 07/02/2008 00:32:24
This is probably the biggest load of tosh the Scotsman has ever printed.
2

Ard Righ,

The Rock Of Edinburgh 07/02/2008 00:41:31
This typifies english media trivia.

Class hierarchies anyone?
3

Roberta Burns,

07/02/2008 01:31:31
Rather satisfying to see a (W)Banker lead the list.
4

urban poacher,

Edinburgh 07/02/2008 01:31:54
who cares where is Wendy she is the most important person in Scotland and her supporters Jacqui and George.
5

Destroy the Planet,

07/02/2008 08:34:22
Reminds me of that Sinitta song 'so macho'

So macho,
He/She's got to be so macho
So macho

etc etc

I'd hate to get stuck with any of them at a party though
6

Dissector,

Stirling 07/02/2008 08:58:46
With no disrespect to those highlighted in the article, that research is biggest non-useful report published in years and falls into the category of a GBO - Glimpse of the Blindingly Obvious and is totally useless.No doubt "Slippery Fish" will be pleased to be included
Considerably more honesty about Scotland shortcomings and the lack of appropriate (not trumpet-blowing) practical, realistic efforts to address them would be much more use.
7

thinking,

Scotland 07/02/2008 09:21:24
I think they must have gone through the school system before it was mucked about with.
Scotland did have a an extremely good educational system at one time
8

The Strategist,

07/02/2008 09:52:55
Personally I believe Goodwin represents everything that is bad about the financial services sector.

Martin Wolf wrote in the FT recently "A financial sector that generates vast rewards for insiders and repeated crises for hundreds of millions of innocent bystanders is, I would argue, politically unacceptable in the long run."

The fact is that the Goodwins of this world do not deserve our adulation and we should stop pretending they do.
9

walter,

07/02/2008 10:19:20
I see the normal has appeared in the comments, attack the article as it state an unwanted truth.
All these successful people were educated under the school system before devolution and with in the framework of the union and that is an inconvenient truth that nats do not wish to acknowledge.
10

Geomac 1,

Kinross 07/02/2008 12:07:26
Yawn! This whole series of articles is yet another example of utter tripe - full of sound and fury signifying nothing!

 

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