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Chamber and committees

Plenary, 05 Feb 2004

Meeting date: Thursday, February 5, 2004


Contents


Question Time


SCOTTISH EXECUTIVE


Voluntary Sector (Funding)

To ask the Scottish Executive whether it will consider reforming the way in which voluntary organisations receive Government funds. (S2O-1232)

The Deputy Minister for Communities (Mrs Mary Mulligan):

The Executive, in conjunction with the Convention of Scottish Local Authorities and the Scottish Council for Voluntary Organisations, is currently undertaking a strategic review of funding for the voluntary sector. The review will identify the scale and pattern of funding to the sector and examine the scope for improving the availability, effectiveness and sustainability of that funding.

Jeremy Purvis:

I thank the minister for her response and welcome the review. However, voluntary bodies such as Fairbridge in Scotland, a charity that specialises in the personal development of challenging young people and deals with young people from my constituency, and In Touch in Galashiels, an organisation that provides valuable support for young people, are finding it difficult to receive long-term funding to meet core work costs, especially as there is a bias towards project-based funding. Will the review consider a move towards providing longer-term funding, which can secure longer-term planning of services and staff?

Mrs Mulligan:

I am well aware of the member's involvement with In Touch; indeed, the support that he has given to that organisation through fairly difficult circumstances is to his credit. However, as I intimated, we are seeking to address the issue of sustainability. We recognise that it is not always necessary to reinvent the wheel and that building on good practice is essential to our aim of supporting the voluntary sector. I assure the member that the matter will be considered.

Christine Grahame (South of Scotland) (SNP):

I note what has been said. Perhaps my question is directed more at the Minister for Enterprise and Lifelong Learning—certainly, I would be happy to provide him with a copy of my letter regarding In Touch. As my colleague said, In Touch is in danger of losing its funding. However, some £31,000 is left in the new futures fund. Will the minister liaise with the Minister for Enterprise and Lifelong Learning to find out whether an intermediate payment could be made to In Touch until it can secure other funding, perhaps from the communities fund?

Mrs Mulligan:

I was not aware of the member's involvement with the matter. I have had discussions about the issue and we will continue to consider the difficulties that are being experienced. I know that Mr Purvis has made representations, although I do not know whether he has done so to my colleague the Minister for Enterprise and Lifelong Learning. I am sure that we will continue to look at the matter.


Asylum Seekers (Employment in Schools)

To ask the Scottish Executive what discussions it has had with the Home Office regarding qualified asylum seekers working in classrooms. (S2O-1231)

The Minister for Communities (Ms Margaret Curran):

None. However, the General Teaching Council for Scotland is actively engaging with ethnic minority groups to provide advice and guidance on the registration process. The GTCS welcomes the opportunity to engage with such groups and is keen—as the Executive is—to widen access to teaching in Scotland, so that the teacher work force better reflects the ethnic diversity of the country as a whole.

Donald Gorrie:

The support of the minister and of the GTCS in particular is welcome. However, will she seriously take issue with the Home Office, which has a ridiculous rule that asylum seekers cannot have a proper job? I can see no defence of that rule. Surely, after qualified teachers have had the proper tuition in the Scottish system, they should have proper jobs and not be required only to shadow. Will the minister pursue that matter?

Ms Curran:

As I am sure members are aware, I have regular meetings with the Home Office and I understand that another one is planned for the coming month. I have always attempted to reflect appropriately members' views to the Home Office and will continue to do so. Mr Gorrie will appreciate that, as has been explained in the chamber on many occasions, certain matters are reserved.

For my part, the work that I do in relation to refugees in Scotland involves a range of initiatives to help people into work. For example, Anniesland College has a work familiarisation course and Glasgow Chamber of Commerce has job brokerage schemes and links with language-to-work classes. We are trying to pursue the broader issue that lies behind Donald Gorrie's question.

Linda Fabiani (Central Scotland) (SNP):

In her discussions with the Home Office, will the minister relay the general concerns of many people in Scotland about the inability of asylum seekers to work? Before July 2002, they could seek permission to work. Will she please lobby the Home Office, on behalf of many people here, to revert to that position?

Ms Curran:

I recognise Linda Fabiani's interest in the matter—she has raised those points with me previously in different forums. Respectfully, I would not say that it was my job to lobby the Home Office. I do not think that that is even partly the role of the Scottish Parliament. As I have always tried to explain, I try to represent appropriately the interests even of those who hold views that are not my own. I seek to ensure that the Home Office is aware of the detail of what is happening in Scotland.

I have raised the general points to which Linda Fabiani referred, but I have not raised the specific issues to which Donald Gorrie referred. Linda Fabiani will appreciate that we are talking about a reserved matter. However, the Home Office has made salient points about the need to ensure that we have an efficient immigration policy and that we speed up applications to ensure that people are not unduly discriminated against and that their skills can be utilised in our interests. That is why I have, within my remit, focused on the issue of work in relation to refugees.

Question 3 has been withdrawn.


School Excursions

To ask the Scottish Executive what steps it is taking to assist schools in the provision of transport to museums and visitor attractions. (S2O-1216)

The Minister for Tourism, Culture and Sport (Mr Frank McAveety):

Although it is for local authorities to determine the level of funding allocated to school transport provision, the Scottish Executive provides £48.4 million per annum to assist local authorities in providing school transport services. That allocation covers all aspects of transport provision, including school trips.

Mr MacAskill:

The minister will be aware that one of the principal difficulties for schools is the cost of hiring coaches and other buses to take pupils to museums and visitor attractions. Does he agree that such visits are important for the educational development of our young people and their understanding of our culture and history? Will he consider whether we should extend the fuel duty rebate—which has been renamed the bus service operators grant—not simply to scheduled routes, but to important routes that allow our children to learn about and experience their culture?

Mr McAveety:

The specific detail of that question would have been better addressed to the Minister for Transport. However, we are keen to find creative ways of encouraging young people to visit our museums and visitor attractions and of minimising the cost to them. I believe that the best way of doing that is to work in creative partnerships with cultural co-ordinators in local authorities and local authorities themselves to maximise access to the cultural and built heritage in Scotland.

Rhona Brankin (Midlothian) (Lab):

I declare an interest as a trustee of the Scottish Mining Museum.

The minister will be aware of the innovative use made by Midlothian Council of the funding for school cultural co-ordinators to pay for transport for schoolchildren to visit the Scottish Mining Museum and to develop excellent education packages. As a result of that work, 500 youngsters have accessed the museum in the past year. Does he agree that the funding for school cultural co-ordinators is vital in ensuring that schoolchildren have access to all our museums in Scotland?

Mr McAveety:

I agree. I was delighted to be able to visit the Scottish Mining Museum in the past few months to consider its long-term future and viability. I am encouraged by the fact that the local authority has creatively used the cultural co-ordinators funding to ensure that youngsters within its area benefit. Many other local authorities are piloting and pioneering initiatives. In Glasgow, for example, there has recently been a 50 per cent increase in the number of schoolchildren visiting museums because of Glasgow City Council's innovative approach to school transport.

Will the Executive take action to ensure that all buses contracted for transporting schoolchildren are fitted with seat belts?

Mr McAveety:

I would be happy to address that issue, although, again, I think that the question would be more appropriately addressed to the Minister for Transport. We give children's safety a high priority. I assure Mr Canavan that, if there are concerns about children's safety, the Executive will be happy to address them.


ScotRail Franchise

To ask the Scottish Executive what the implications of the referral of First Group to the Competition Commission by the Office of Fair Trading are for the ScotRail franchise. (S2O-1267)

The evaluation of bids for the ScotRail franchise is proceeding as planned and a preferred bidder will be identified in due course.

Iain Smith:

Does the minister agree that it seems a little strange for the Office of Fair Trading to refer the bid to the Competition Commission, with the result that there is effectively less competition and choice in relation to the ScotRail franchise bid? Will he assure me that he will do all that he can to ensure that, whatever the outcome of the referral to the Competition Commission, it will not result in hard-pressed rail passengers such as those in my constituency of North East Fife having a poorer service under the new franchise than they might expect and deserve?

Nicol Stephen:

It would be inappropriate for me to be drawn into commenting on the Competition Commission referral, but I am sure that the commission will consider the issues to which Iain Smith refers. I agree absolutely that the quality of service provided to passengers should be at the forefront of everyone's consideration of the issue. As the Parliament knows, the existing franchise is being extended until 17 October, which is our target date for the introduction of the new franchise. It is therefore important that all issues relating to the franchise are resolved as soon as possible.


Breastfeeding

6. Elaine Smith (Coatbridge and Chryston) (Lab):

I declare my registered interest, which relates to my member's bill, the Breastfeeding etc (Scotland) Bill.

To ask the Scottish Executive how funding to support and promote breastfeeding in Scotland compares with such funding in England, Wales and Northern Ireland. (S2O-1208)

The Minister for Health and Community Care (Malcolm Chisholm):

For 2003-04, the Scottish Executive has allocated £37,000 directly to support the Scottish breastfeeding group and the national breastfeeding adviser. The Department of Health has confirmed that it has a budget of approximately £300,000 for 2003-04 for similar activities. I have contacted both the National Assembly for Wales and the Northern Ireland Office and will forward their responses to the member when I receive them.

Elaine Smith:

I thank the minister for his response and look forward to receiving those answers. I am sure that he will agree that considerable progress has been made in many areas of Scotland in relation to breastfeeding. However, does he agree that much of that progress has been due to the initiative and dedication shown by health sector workers? Does he also agree that, in order to ensure that that progress is consolidated and built on, we should increase direct funding for breastfeeding, whether by additional moneys or by ring fencing from existing budgets?

Malcolm Chisholm:

I would not like to give the impression that the sum that I mentioned was all the money that is spent on breastfeeding. As Elaine Smith and other members know, we allocate money to boards for general purposes and only ring fence in a small number of cases. Like Elaine Smith, I pay tribute to the health workers and all who are involved in peer support groups such as the one that I visited in her constituency some time ago. Last year, the Executive gave £60,000 to help the development of peer support groups for breastfeeding in Ayrshire. NHS Scotland has also spent a lot of money on the promotion of breastfeeding—last year, the figure was £230,000. Moreover, the chief scientist office is putting quite a lot of money into research on ways in which we can encourage and support breastfeeding.

Mary Scanlon (Highlands and Islands) (Con):

To ensure a consistent approach to promoting breastfeeding, will the minister ensure that all pregnant mums are given information and advice on the benefits of breastfeeding, both to the mother and to the child, as a routine and integral part of the antenatal check-up system?

Malcolm Chisholm:

That information and advice certainly ought to be given. I do not know off the top of my head exactly how many instances there are in which that happens, but I shall look into the matter further and give Mary Scanlon a more detailed response. In principle, however, I agree that what she suggests should certainly happen.


Laurencekirk Station

To ask the Scottish Executive when it expects to receive the completed Scottish transport appraisal guidance part 2 study into the possible reopening of Laurencekirk railway station from Aberdeenshire Council. (S2O-1265)

The Minister for Transport (Nicol Stephen):

The timetable for the development of the proposal to reopen Laurencekirk station is a matter for Aberdeenshire Council. I very much welcome Aberdeenshire Council's commitment to improving rail services in its area, including its work on the Aberdeen crossrail, improvements to the Aberdeen to Inverness line, rail freight development and the reopening of Laurencekirk station.

Does the minister agree that it is vital that progress should continue to be made on Laurencekirk station? Is he in a position to reveal when the study might commence?

Nicol Stephen:

I checked on the position today. I have been told that Aberdeenshire Council will tender shortly for the more detailed appraisal work that is required to bring the proposal up to the STAG 2 level. The work should therefore be able to commence shortly. I am also minded to support a proposal that the funding of the project should be shared between the Scottish Executive and Aberdeenshire Council. If the tender process proceeds as planned, I hope that the STAG 2 study will be available to the council and the Executive before the summer.

Mr David Davidson (North East Scotland) (Con):

Further to the minister's response to Mr Rumbles about Scottish Executive participation in the funding, and given the claims of the Liberal Democrat-led Aberdeenshire Council that it is grossly underfunded by the Executive—hence its fair share campaign—will the minister assure the chamber that, if the council is unable to pick up its share, the project will receive the full funding that is required?

Nicol Stephen:

I hope that the council will agree that every little helps. The study will not be a major, multimillion-pound piece of work—I believe that it could cost tens of thousands rather than hundreds of thousands or millions of pounds. We are happy to be partners in the project, as we are in many other public transport projects right across Scotland. I think that partnership between the Executive and local councils across Scotland is the best way of delivering improvements to our public transport network.


School Rolls

To ask the Scottish Executive whether it will make a statement in respect of the extent of falling school rolls. (S2O-1269)

Current projections of pupil numbers show a significant decline in most areas over the next 10 years. Those have already been taken into account in our teacher work force planning exercise.

Lord James Douglas-Hamilton:

As the decline might lead to considerable spare capacity and could cause some schools to close, would it not be better if funds followed pupils to the schools of their parents' choice? Surely funding should be based on the popularity of schools with parents and not exclusively on the decisions of politicians.

Peter Peacock:

As I said, the matter is a major issue for Scottish education and presents major challenges, particularly for local authorities in planning future provision. That is why we asked local authorities to produce an estates strategy for the future and to look at their investment plans, catchment areas and all the other issues that are raised. It is rather rich to hear Lord James Douglas-Hamilton speak on the subject, given that the Tory party's policies would abolish all catchment areas for Scottish schools. That would result in there being no guarantee that children would get into their local school and it would create chaos for many pupils in Scotland in the interests of only a few.


NHS Fife (Meetings)

To ask the Scottish Executive when it last met NHS Fife. (S2O-1214)

Officials of the Scottish Executive Health Department regularly meet NHS boards and discuss a wide range of issues. The most recent meeting with NHS Fife took place on 9 January 2004.

Tricia Marwick:

At the meeting on 9 January, did the Executive discuss the cuts in nursing posts that Fife NHS Board is proposing? Will the minister say whether he supports the board's proposals to cut 34 nursing posts and other posts in occupational health, physiotherapy and dietetics? Is he prepared to guarantee that the cuts will not impact on patient care, waiting lists and waiting times and that they will not result in a poorer health service for the people of Fife?

Malcolm Chisholm:

The meeting on 9 January was held between officials and Fife NHS Board. The issues that were discussed concerned the medical work force. Obviously, I have taken a keen interest in the nursing jobs to which Tricia Marwick referred. When I have discussed the issue both with the medical director and the chair of the board, I have asked the kind of questions that Tricia Marwick raised. The explanation that I was given is that the issue is fundamentally about the redesign of services.

The posts are in an older people's ward in a hospital and in mental health. We should remember that the lead-up to the matter is the redesign of mental health so that more care is delivered in community settings. Moreover, and crucially, the older people's ward was being used to hold patients who on the whole were delayed discharges and who were awaiting more appropriate care in the community. I am told that, as NHS Fife has reduced the number of its delayed discharges, it no longer requires those beds for that purpose. In each case, NHS Fife has explained the issue to me in terms of the redesign of care. Of course, no nurse will lose her or his job. As certain posts become vacant, they will not be filled, but new posts will be created and new people will be recruited for more work within the community.

Christine May (Central Fife) (Lab):

I assure the minister and the chamber that his explanation coincides with that given to me when I asked the same questions some time ago.

I ask the minister to join me in congratulating CIS and the management of the Kingdom shopping centre in Glenrothes—a town in my constituency with some surrounding villages—on their decision, which was announced this week, to ban smoking in the shopping centre. They have done that in conjunction with NHS Fife, which is offering increased support to people who wish to kick the smoking habit. That scheme can be carried out because of the redesign of services, to which the minister referred, and the funding that has been provided for it. Will the minister assure us that he will continue to support health boards in improving the health of the nation, as well as in curing its ills? Will he also assure us that, with his good friend the Minister for Finance and Public Services, funding will continue to be provided for that purpose?

The question is about NHS Fife, of course.

Malcolm Chisholm:

Christine May raised a range of issues about NHS Fife. On money, it is worth noting that the increase given to Fife from April is more than 8 per cent, which is large by historical standards. The redesign of services will go ahead in Fife, where the full business case for the redesign of services is being prepared.

On smoking in public places, we have a commitment to increase the number of smoke-free places. The example to which Christine May referred is a good one. She will know that Tom McCabe announced substantial additional funding to support people in giving up smoking—an extra £4 million is coming on stream in due course. That is a key part of the anti-smoking strategy.

Mr Brocklebank, back to Fife, perhaps.

Mr Ted Brocklebank (Mid Scotland and Fife) (Con):

Indeed, Presiding Officer.

At the recent meeting with NHS Fife, did the minister have the opportunity to raise the vexed matter of the much-delayed hospital for north-east Fife, given that people have been waiting for it for more than a decade? Can he indicate when work will begin on the new hospital, which is to be based in St Andrews, and when long-suffering Fifers can expect to be treated there?

Malcolm Chisholm:

As I said, the meeting was between officials and NHS Fife and the issues related to the medical work force, so the question of the hospital at St Andrews did not come up. However, work is on-going on that issue. I will write to the member with the details.

Mr Keith Raffan (Mid Scotland and Fife) (LD):

Will the minister join me in thanking the outgoing chairman of NHS Fife, Esther Roberton, for the admirable way in which she led NHS Fife and guided it through a difficult period? During that period, the future of the health service in the kingdom and of the hospitals in Dunfermline and Kirkcaldy were addressed and extra services were initiated to treat drug misuse, an issue in which I am particularly interested, as the minister knows. Whatever somebody's political colour, they deserve congratulations when they have done a very good job.

Malcolm Chisholm:

I paid tribute to Esther Roberton on 9 October in the chamber, when she was being unfairly attacked. I repeat today that I pay tribute to all the work that she has done as chair of NHS Fife. Some difficult decisions had to be taken, but the board's new approach to public involvement represents a big improvement on what happened in the past. We know that the plans are now in place and the full business case is being worked up, so as soon as possible we will see the new arrangements in Fife.

A range of difficult medical work force issues were discussed at the meeting with Health Department officials on 9 January and various actions—relating to anaesthetists, for example—were taken. The Health Department is arranging a meeting with the Royal College of Anaesthetists to try to resolve some of the issues. We know that there are difficulties, particularly in some smaller board areas such as Fife, where there are problems to do with big hospitals in Edinburgh and Dundee. However, the way in which those difficulties are being approached, with the help of the Health Department, is a tribute to what Esther Roberton has done.


Measles, Mumps and Rubella Vaccine

10. Carolyn Leckie (Central Scotland) (SSP):

To ask the Scottish Executive, in light of the Irish Government's decision to fund nearly £500,000 of scientific research into creating a safer MMR vaccine, what its position is on whether calls for further research into MMR should be resisted. (S2O-1256)

The Deputy Minister for Health and Community Care (Mr Tom McCabe):

I understand that the research in question involves a novel approach to developing vaccines that may in theory cause fewer adverse reactions than the current vaccines, which contain whole live attenuated viruses, of which MMR is only one of many. We understand that the decision to invest in the project does not in any way reflect an opinion or stance on the safety of the MMR vaccine.

In relation to further research on the MMR vaccine, we have no plans at present to support such research. The evidence and expert advice from around the world clearly show that MMR remains the safest and most effective way to protect children from these very serious, and potentially fatal, diseases.

Carolyn Leckie:

Professor Greg Atkins of Trinity College Dublin, where research into a synthetic alternative to MMR is being funded, stated that claims that there is no link between MMR and autism have neither been confirmed nor refuted. Will the minister tell me whether he agrees with that statement? Given that the demand for single vaccines has increased from 11,800 in 2001 to 103,000 last year—an increase of nearly 1,000 per cent—and that the Health Protection Agency has acknowledged that measles outbreaks would have been worse without single jabs, is it not time to mirror the Irish Government's response by funding research into alternatives and, in the meantime, to allow all parents the right and means to access single vaccines from the NHS?

Mr McCabe:

I have already made it clear that our understanding is that the research promotes no view or stance on the safety of MMR. The gentleman in Ireland may well have expressed an opinion, but it differs greatly from that of the scientific community around the world. It is important that we say that. Of course, we in the Executive are aware that the parents of young children are placed in a difficult position when the unsubstantiated views of a small minority of the scientific community are given prominence. It is our intention to continue to promote the facts, which are based on scientific evidence from around the world, and therefore to assist parents in making an informed choice.

Alex Neil (Central Scotland) (SNP):

I suggest that the minister read "A Public Enemy" by Ibsen, in which a character was in the same position as the minority of scientists and was proved to be right.

Given that there is no conclusive evidence that MMR contributes to or causes autism, does the minister accept that there is no absolutely conclusive evidence that it does not? Is it not time for the Executive to take a more humane and flexible approach to the problem until there is conclusive evidence one way or the other?

Mr McCabe:

I stress that the approach of the Executive is not only humane but based on the best principles of public safety and health. I suggest to Mr Neil that he think carefully before making the kind of statements that can cause confusion for parents of young children and possibly drive down the uptake of the vaccines. When the uptake is driven down to a point at which an outbreak is possible, we will all have the opportunity to reflect on what we have said.


Golf

To ask the Scottish Executive what progress it is making in the implementation of its national strategy for golf. (S2O-1221)

The Minister for Tourism, Culture and Sport (Mr Frank McAveety):

Work is on schedule to implement the clubgolf strategy launched by the First Minister and Colin Montgomerie at Gleneagles in February 2003. I am confident that by 2009 every nine-year-old in Scotland will be given the opportunity to participate in golf in programmes and at facilities that are appropriate for them, should they wish to do so.

Murdo Fraser:

The minister might be interested to know that, despite the promise in the golf strategy to make available business strategy training packages for golf clubs, when I carried out a survey of clubs in my area I found that only 18 per cent were aware that such a service existed and only 16 per cent said that their views on developing the sector had been sought. What is he doing to ensure that the golf strategy is more than just another glossy initiative and delivers real benefits to clubs at grass-roots level that are operating in a rather difficult economic environment?

Mr McAveety:

I am happy to take on board the specific point that Murdo Fraser raised. We have now appointed five regional managers who are tasked specifically with addressing a range of strategies within the overall clubgolf strategy, such as strategies for raising the number of young people involved, particularly girls and individuals from disadvantaged areas. We are also working in partnership with organisations such as the St Andrews Links Trust to ensure that the quality of coaching is exemplary. A number of golf clubs, which are conscious that golf club membership is diminishing, are keen to explore ways in which they can work with the clubgolf strategy to develop young people's interest in order to ensure a long-term, sustainable future. I reassure members that we are absolutely determined to ensure that by 2009 clubgolf will be meaningful and will go the full course for all the people of Scotland.


Financial Services Sector (Employment)

To ask the Scottish Executive what steps it will take to protect employment in the financial services sector in Edinburgh. (S2O-1244)

The Deputy First Minister and Minister for Enterprise and Lifelong Learning (Mr Jim Wallace):

Scotland's financial services sector has demonstrated solid growth over the past decade and continues to perform robustly. Against the background of challenges from increased global competition, however, there is no room for complacency. The Scottish Executive recognises that and has responded to calls for a greater engagement with the sector by establishing the financial services strategy group, which is charged with developing and delivering a shared vision and strategy by the end of 2004. The strategy is aimed at sustaining and maximising the success of the financial services industry in Scotland, including Edinburgh.

Colin Fox:

Given that 91,000 people in Scotland are employed in financial services and that the banks are involved in a rapacious chase for profitability, with the high street banks soon to announce combined profits of some £26 billion this year, how confident can those who work in the financial services sector be about the Executive's ability to protect them from companies that ignore their corporate social responsibility, up sticks from Scotland and relocate to countries where labour is cheap and profits abundant?

Mr Wallace:

The fact that we have set up a financial services strategy group shows how seriously we take the importance of this sector to Scotland. It also shows that we want to ensure that we have a shared vision, so that the Executive can do what it is able to do to improve the position of the sector.

However, I must say that nothing would see a greater exodus of financial services jobs from Scotland than the nationalisation of the banks and other companies in the sector.

Sarah Boyack (Edinburgh Central) (Lab):

I welcome the minister's first response and ask whether he supports the City of Edinburgh Council's initiative to work with Scottish Enterprise Edinburgh and Lothian and Scottish Financial Enterprise to tackle the challenges that are presented by the trend towards offshoring functions for reasons that are primarily to do with labour costs. Will he outline what work is being done with regard to the 2004 report that he talked about earlier today? In the meantime, what is being done to promote the advantages of Edinburgh to companies in the financial services sector that are comparing Edinburgh with locations in the far east? What can the Scottish Executive do to support that work?

Mr Wallace:

I am aware of the work that the City of Edinburgh Council is doing to examine the current state of the industry in Edinburgh, the challenges presented by, among other things, the threat to jobs from India and other countries in the far east and the ways in which Edinburgh can position itself to make more of its advantages. Edinburgh, among other places in Scotland, is recognised for the skills and commitment of the work force in the financial services sector. Scottish Enterprise continues to focus on those skills through the financial services action plan that was agreed by the financial services strategy group. One of the things that that group is specifically examining is the challenge that comes from the outsourcing of jobs not only for reasons of labour costs but because of the growing skills in the sector in other countries. That is why we have to focus on the many competitive advantages that we have. The purpose of setting up that group is to identify our strengths so that we can build on them.

When did the minister last meet the management of Standard Life and what issues were discussed?

Mr Wallace:

I last met the new chief executive of Standard Life a week last Monday. We discussed a range of issues about the steps that the Executive might be able to take to help to strengthen the Scottish economy with regard to the financial services sector and other sectors.

Lord James Douglas-Hamilton (Lothians) (Con):

Does the minister agree that having a vibrant financial services sector in Edinburgh is extremely important to Scotland's economy? Does he further agree that businesses in Edinburgh and elsewhere in Scotland would benefit enormously if the Executive were to agree that Scottish business rates should be set at a competitive level in comparison to those in England?

Mr Wallace:

I agree with the premise of Lord James Douglas-Hamilton's first question: the financial services sector is vitally important to Scotland. When I was in the United States of America last month, there was a great recognition of the quality of the work that is done in Scotland, the skills of the work force and the reputation for probity that the Scottish industry has. I must say that I do not recall anyone mentioning business rates to me. There are much more effective ways of supporting the financial services sector in Scotland than adopting that Conservative policy.

Helen Eadie (Dunfermline East) (Lab):

I declare my registered interest as a Co-operative Party member.

Yesterday, together with other Co-operative Party MSPs, I met chief officials from Standard Life. If one reads recent press reports, one might think that the financial services sector in Scotland has a job on its hands, but unwarranted and unsubstantiated allegations, such as those that Standard Life has faced in recent weeks, can do real harm to the institutions themselves, their staff and their customers. Reasoned debate rather than media frenzy is what is needed now. Will the minister comment on the current media frenzy and its potentially damaging impact?

Mr Wallace:

I acknowledge Helen Eadie's long-standing interest in the mutual sector—a sector that has contributed much to Scotland and to places further afield over many years. With regard to Standard Life, the board has decided to conduct a strategic review of the business in light of the fundamental changes that are occurring in the life and pensions industry. It would not be appropriate for ministers to comment on that. At the end of the day, it is a matter for the board to make decisions in the best interests of the company.

It is right for Helen Eadie to point out that, despite a lot of doom and gloom, this is an industry that has shown solid growth over the past 10 years. In an annual review of recruitment trends in Scotland's financial markets that was published last week, 87 per cent of those surveyed

"described their company's level of business confidence as optimistic".

Only 13 per cent said that

"they had neutral feelings about the future."

Indeed, 86 per cent of Glasgow respondents and 68 per cent of Edinburgh respondents indicated that they would increase their permanent head count. There is no cause for complacency, but we should recognise and build on strengths where they exist.


Universities (International Student Visas)

To ask the Scottish Executive what information it has on the number of students at Scottish universities who applied for international student visas last year. (S2O-1252)

The Deputy First Minister and Minister for Enterprise and Lifelong Learning (Mr Jim Wallace):

Matters relating to United Kingdom immigration procedures are reserved, and responsibility for those areas rests with the Home Office. Therefore, the Scottish Executive does not hold information on the number of students at Scottish universities who applied for international student visas last year. The most recent figures from the Higher Education Statistics Agency indicate that there were 12,939 non-European Union overseas students at Scottish higher education institutions in 2001-02, although not all those students would have required international student visas.

Mark Ballard:

As the minister is aware, the new international students visa charge was introduced last year with no period of consultation and only three weeks' notice. It costs between £150 and £250. Universities UK has found that the average international student contributes £5,600 to the local economy, on top of their university expenditure. Given the First Minister's call for more people to work and study in Scotland, will the Executive consider reimbursing international students the cost of that unnecessary and short-sighted visa charge?

Mr Wallace:

I am aware of the concerns that have been expressed and I have taken steps to ensure that the Home Office is aware of Scottish stakeholder issues and the importance of international students to Scotland. I can assure the chamber and Mr Ballard that officials keep in touch with developments in that area on behalf of Scottish stakeholders as part of the activity linked with the Prime Minister's initiative. The Executive recognises the importance of international students, in their own right and as part of the First Minister's fresh talent initiative. The Executive is considering ways of attracting and retaining that talent to ensure Scotland's longer-term prosperity. The Executive recognises the contribution made by international students; indeed, it would like to see more of them.


Football Supporters Trusts

To ask the Scottish Executive what support it is giving to assist the formation and sustainability of individual football supporters trusts. (S2O-1260)

The Executive has made funding available to Supporters Direct to extend its activities to Scotland. We are currently considering a proposal to extend funding for a further two years.

Scott Barrie:

In thanking the minister for his answer, I should perhaps declare an interest. I am a founder member of the soon-to-be-launched Pars supporters trust.

Given the perilous state of the finances of many of our senior clubs, does the minister agree that supporters trusts are an excellent way forward for football, as they allow true fans a say in the running of their clubs, which anchors clubs firmly in the local community? Is the Executive committed to continuing support of the trusts through Supporters Direct?

Mr McAveety:

We are keen to continue discussions with Supporters Direct, and we will give a response to it in due course. I have been asked to attend the annual general meeting of Supporters Direct, where I hope that we will continue our discussions to address the central issue facing many clubs throughout Scotland, and the communities that are served by those clubs, on the role that supporters can play in stabilising some very uncertain futures. The long-term commitment of Supporters Direct is to ensure that fans have a greater voice in clubs and that much more strategic planning takes place, taking into account the resources that are available to clubs.