BUSINESS bosses have been urged to pull together to help Glasgow survive the worldwide credit crunch.

City council leader Steven Purcell made the rallying call to Team Glasgow as it was announced a high-powered group of company chiefs are to help steer the city's economy through the difficult times ahead.

The economic advisory board includes four millionaires and the chief executive of the Scottish Council for Development and Industry.

Mr Purcell outlined how he plans to tackle the economic downturn at a State of the City Economy conference in front of dozens of business leaders.

His plans include using government grants to provide affordable housing to buy land while prices are low, buying homes developers cannot sell and finishing housing developments if work stops.

The properties would then be rented to the social rented sector.

A £36million Better Glasgow fund has been set up to fund regeneration schemes including public realm projects, lighting, heritage schemes, green spaces and new business and training centres.

Schools which have been lying empty will be transformed into business academies to support and develop young businesses.

The council will also offer small and medium-sized businesses loans with interest rates lower than banks are willing to offer.

As reported in the Evening Times yesterday, he also announced developers will be allowed to pay for land after an upturn in the economy together with opportunities for profit sharing and joint ventures.

Mr Purcell said: "These are tough times. We know our economy is going to get worse before it gets better.

"All of us in the city are a part of a team that must work together to make Glasgow the best city it can be. KEYS TO SUCCESS Buy land and any unsold houses, finish any unfinished housing developments £36M Better Glasgow fund has been set up for regeneration work Empty schools will be turned into new business academies Council will offer smaller businesses loans at low interest Developers can pay for land once the economy recovers

"This is not a time for any of us to retreat into our bunkers. Whether it is public agencies or private commerce, we must stick together.

"We need all the public agencies, the Scottish Government, the UK Government and businesses of every size and sector to help if we are going to protect businesses, jobs and opportunity.

"This is a rallying call for Team Glasgow to pull together."

Mr Purcell said the new economic advisory board will be made up of businessmen Sir Tom Hunter, Willie Haughey, Jim McColl and Akmal Khushi and business expert Lesley Sawers.

He added: "They will help me understand the challenges facing the local economy and how to respond to them as council leader."

Mr Purcell said despite the looming financial crisis he remained "truly thankful" the city had the 2014 Commonwealth Games with its massive £1billion of investment on the Games sites, housing, hotels, roads and other major projects.

He explained: "No city is recession-proof, not even one with a massive programme of public works in the pipeline.

"But the programme to build the Games venues and all the other related projects is a valuable safety net for the city economy.

"We know work will not dry up in Glasgow."

A pot of money - The Business Investment Fund - will be extended to lend money to small and medium-sized firms at flexible terms.

Mr Purcell said: "Because of the effects of the credit crunch, businesses and small businesses in particular, are struggling to find borrowing facilities on suitable terms.

"We, the city council, will lend them money at rates lower than anything small businesses can get to support them through these difficult times.

"We recognise businesses need more than warm words in difficult times.

"They also need a bit of slack when it comes to costs, especially from the public sector." Dr Lesley Sawers The former chief executive of Glasgow Chamber of Commerce. She is now chief executive of the Scottish Council for Development and Industry Sir Tom Hunter Sir Tom started his career selling trainers from the back of a van and went on to found the Sports Division chain of shops Willie Haughey Glasgow-born Willie Haughey is chairman and millionaire boss of City Refrigeration Holdings which is based in the Gorbals Akmal Khushi He and his brother Afzal have made the £90million Glasgow sportswear firm Jacobs and Turner a global business Jim McColl Boss of East Kilbride's Clyde Blowers, has portfolio of companies in 22 countries and recently bought four US firms for $1billion

The city will "take some hard knocks in the months ahead" but Mr Purcell added: "I genuinely believe this city has a bright future and even with economic downturns there are enormous opportunities. Let's pull together and come out the other side stronger than ever."

The moves were immediately welcomed. Glasgow Chamber of Commerce chief executive Richard Cairns said: "The reaction to these measures is positive, and we both support and endorse them.

Glasgow's strength is in the effective ongoing partnership of the public and private sectors.

"The Chamber will lead the city's business community in working with the council and all other public agencies to make sure we come out of the other end of this recession strong and ready to compete."

Jonathan Fair, chief executive of Homes for Scotland, which represents firms building 95% of the country's new homes, said: "Glasgow's decisive action and flexible team-working approach to ensure that investment continues to be made in businesses, homes and jobs is to be congratulated.

"The challenge now is getting other local authorities to follow Glasgow's bold lead."