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Vol 32 No
.3
In association with
Fraser of Allander Institute
Economic Commentary
 
FRASER ECONOMIC COMMENTARY
Fraser ofAllandereconomiccommentary
February 2009
Vol 32 No 3
©
University of Strathclyde, 2009
The University of Strathclyde is a charitable body, registered inScotland, number SC015263 
Outlook and appraisal
.......................................................4
 The Scottish economy
Forecasts of the Scottish economy....................................18Review of Scottish Business Surveys................................27Overview of the labour market...........................................31
Economic perspectives
A recommendation on how the method of setting waterprices in Scotland should be changed: customer financedcapital as a notional loan to the utilityJim Cuthbert and Margaret Cuthbert...............................36Scottish Ferry PolicyNeil Kay..........................................................................45
FEBRUARY 2009 PAGE 1
 
FRASER ECONOMIC COMMENTARY
The Fraser of Allander Economic Commentary was firstpublished in 1975. The new association betweenPricewaterhouseCoopers and the University ofStrathclyde’s Business School provides the Fraser ofAllander Institute with the support to continue theCommentary, and we gratefully acknowledge this support.The Fraser of Allander Institute is a research unit within theDepartment of Economics at the University of Strathclydein Glasgow. The Institute carries out research on theScottish economy, including the analysis of short-termmovements in economic activity. Its researchers have aninternational reputation in modelling regional economiesand in regional development. One-off research projectscan be commissioned by private and public sector clients.If you would like further information on the Institute’sresearch or services, please contact the InstituteAdministrator on 0141 548 3958 or email the Institute atfraser@strath.ac.uk.The Fraser of Allander Institute was established in 1975 asa result of a donation from the Hugh Fraser Foundation.We gratefully acknowledge the contribution of theBuchanan and Ewing Bequest towards the publicationcosts of the Commentary.
PwC support the production of the Economic Commentary buthave no control of its editorial content, including, in particular, theeconomic forecasts. PwC produces its own regular review of UKand international economic prospects, the next issue of which ispublished on their website:http://www.pwc.co.uk/eng/publications/uk_economic_outlook.html PAGE 2 VOLUME 32 NUMBER 3
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