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Scotland - June 2009

Welcome to our first Scotland e-newsletter
which we hope you will find of interest. In it we discuss some key developments in the Scottish scene, raise some timely issues and questions and tell you a bit about our current work. We would love to get any feedback about the articles and we will publish some of these in our next edition.

This first edition comes at a time when we are drawing a line under the ill informed press coverage of our work with Highlands and Islands Enterprise. This implied that we had benefitted from our Chair, Willy Roe, also being Chair of HIE. We wanted you to know the facts:

- The work carried out for HIE by Rocket Science has actually reduced significantly since Willy Roe took on his role as Chairman of HIE. Last year it was one-quarter of the level it was prior to his appointment, this year it is one-fifth;
- The work carried out for HIE last year accounted for less than one per cent of the turnover of Rocket Science.

It is clear from these figures that we have not received any kind of special treatment since Willy Roe's appointment as Chair of HIE and that our HIE work has been a marginal factor in our growth.
When Willy Roe was appointed as Chair of HIE I agreed two key principles with the Chief Executive of HIE:

- Willy Roe would be totally excluded from all aspects of any contract with HIE
- There would be total public transparency in all our contracts with HIE.

We have stuck to these principles rigorously and details of all our contracts with HIE have been published every year in HIE's Annual Report and on their website.

There was also an allegation of plagiarism in one of our reports for HIE. This report was produced by a 'rogue' consultant who was our highest paid senior consultant in the UK (not a 'junior consultant' as he has claimed in the press). This incidence of plagiarism was unique in our history and by the time it was uncovered he had already resigned - with immediate effect - during his probationary period. I have started legal proceedings against this individual for damages. HIE has now examined all the reports we have produced for them. There is no plagiarism in the work carried out for them by Rocket Science. In a single report they did identify some apparent lack of attribution in the work of a partner organisation, Jane's Strategic Advisory Services, a subsidiary of US based IHS who have accepted full responsibility for this.

Our other news is that Willy Roe will be resigning as our Chair. Willy holds a growing number of public roles with actual and potential customers of Rocket Science (eg Chair of Highlands and Islands Enterprise and Skills Development Scotland and most recently through his appointment as a Commissioner with the UK Commission for Employment and Skills). Despite the creation of clear protocols to guide behaviour on both sides he has come to the view that there could be an even higher standard of separation of functions that would prevent any possible perception of a conflict of interest arising in the future. As a result he will be completely separating his public service functions from his private business interests with effect from 1st July 2009 when he will cease to have any involvement in Rocket Science. Willy was a founder Director of Rocket Science and we will be very sad to lose his guiding hand but we have a well-established Board that will continue to guide the company onto future success.

I would like to end with a big thank you to all those who have so kindly contacted us over the last few weeks to offer your support - we have hugely appreciated this at a stressful time for us.

I hope you enjoy our first Scottish e-newsletter. We would be pleased to receive your feedback and look forward to working with you in the coming months and years.

Richard Scothorne
Managing Director

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The CashBack BAT flies in
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On re-reading 'On Vacancies'
I still remember reading this clear and elegant paper in the 1990s and being struck by the significance of its findings. I won't pretend I understood all or even most of it, but reading between the equations I got the gist: vacancy rates had stayed the same during the slump of 1963, the boom of 1979 and the recovery of 1987, despite huge changes in unemployment. What was going on?
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