General Questions
We come to the next item of business. I would be grateful if members who are leaving the chamber would conduct their conversations elsewhere.
Sustainable Growth (Priorities)
The funds could help to provide and support new opportunities to develop Scotland’s status as a leader in the low-carbon economy. Their availability will see us consider investment priorities across the full range of the renewables sector. In the meantime, the Scottish Government continues to work with United Kingdom Government ministers and officials to ensure that funds from the levy are released in a way that is additional to the Scottish budget.
I thank the minister for that reassurance. Given that the fossil fuel levy is aimed at helping to reduce greenhouse gases, can any of the levy that is raised in Scotland be put to use for energy conservation as well as renewable energy production?
The levy is limited by statute to the promotion of renewables and the use of renewable energy from sources in Scotland. However, we are investing significantly in vital areas of energy efficiency and conservation. We will continue to fund the Carbon Trust, the Energy Saving Trust and area-based home insulation schemes to the tune of £25 million. There is also the recent £2 million for the boiler scrappage scheme.
Is the minister aware of the suggestion from the leader of Aberdeen City Council that funds from the fossil fuel levy might be used for building roads? Is such expenditure permissible under statute, or is the suggestion simply a non-starter?
I understand that infrastructure spending would be focused on key ports and harbours in support of the growth of the offshore wind sector. Beyond that, the areas that fall within the scope of the levy are technology support, skills, renewable heat and community renewables.
Living Wage (Local Authorities)
The Scottish Government is keen to ensure that people have a decent wage. From 1 August this year, nobody who is employed by the Scottish Government will earn under £7.15 an hour, the current living wage level that is proposed by the Scottish living wage campaign. Local government pay is a matter for local authorities and the appropriate trade unions.
If the living wage is right for central Government employees and the health service, why is it not also right for local government employees?
Wendy Alexander will be familiar with the arrangements. In essence, local authorities are self-governing bodies. It is not for ministers in this Parliament to specify to local authorities the terms and conditions under which they should employ their staff. As I indicated, the Scottish Government is keen to ensure that individuals have a decent wage. For that reason, we took the decisions that we have taken. Clearly, it is a matter for local authorities to take decisions that affect individual authorities.
I am interested not only in the cabinet secretary’s response in terms of local authorities but in the question from Wendy Alexander. She is keen on the living wage, as is the cabinet secretary. Will he make representations to the United Kingdom Government to ensure that all workers receive at least the living wage rather than the national minimum wage? Will he ask it to review the national minimum wage?
Clearly, under the Scotland Act 1998, the setting of the national minimum wage is a matter for the UK Government. As a consequence, it is for the UK Government to take its own decisions in that respect. As I set out, the Scottish Government has established a position on the level of the wage that is paid to members of our staff. I am, of course, very happy to communicate our position to the UK Government.
VAT Increase
The 2.5 percentage point increase in VAT that was announced by the Chancellor of the Exchequer last week is estimated to cost the average Scottish household approximately £380 per year. The lowest-income households are estimated to be disproportionately affected by this regressive tax increase.
That is indeed shocking news. Does the minister share my dismay that, having campaigned against VAT increases—and a secret plan that the Tories had—the Liberal Democrats have now put up the level of VAT to 20 per cent?
Mr Peacock’s final point on the impact of VAT on fuel prices is entirely factual. Those of us who represent rural Scotland in particular are entirely familiar with the scale and burden of fuel costs. The overwhelming majority of the cost of a litre of fuel is related to taxation.
Is the cabinet secretary working with the United Kingdom Government with regard to what will be the first rural fuel discount pilot scheme in 14 years and its possible application in Scotland?
Mr Purvis will know that I raised the issue of fuel taxation in correspondence with the Chancellor of the Exchequer in advance of the budget. We would be delighted to work with the United Kingdom Government on developing the arrangements, as it is the policy position of this Government to act to ameliorate the effects of high fuel prices in rural areas.
Scottish Housing Regulator (Meetings)
I last met the Scottish Housing Regulator on Tuesday 1 June as part of one of my regular liaison meetings with the Convention of Scottish Local Authorities. We discussed progress among landlords towards meeting the Scottish housing quality standard.
Has the Scottish Housing Regulator compiled the eviction figures for Scottish local authorities for 2009-10? What is the Scottish Housing Regulator doing to combat the apparently high number of eviction orders in North Lanarkshire, which totalled 1,129 in 2008-09?
Like me, the Scottish Housing Regulator is concerned about the high number of evictions in certain parts of Scotland, and about the process and cost. We are discussing the issues in the Scottish Government, as part of our examination of the Local Government and Communities Committee’s stage 1 report on the Housing (Scotland) Bill and the evidence that was presented to the committee with respect to the new proposals on how to handle evictions. We will announce our response in due course, when we will define the role of the regulator in relation to such matters.
Chinese Language, Culture and History
The cabinet secretary has asked to give the first part of his answer in Mandarin. Members will be grateful to learn that he will also provide a translation.
Zài guòqù liangnián li, women hé Zhonguó jiàoyù jiànlì le liánhao de hézuò guanxì. My apologies for the accent.
Quickly, please, cabinet secretary.
We have provided £115,000 to enable 91 students from colleges and universities to spend three weeks in China.
Ni huì shuo Zhonguó huà hao de! Russell bù zhang. Xiè xiè.
I certainly will. We are building further educational links through the saltire scholarships for China, the higher education research partnership for PhD studies and the China scholarships for excellence. As my friend the Cabinet Secretary for Finance and Sustainable Growth knows, we are also building successful business collaborations. The relationship is good, strong and growing.
Local Authorities (Socioeconomic Duties)
The approach taken by individual councils in delivering on their duties and responsibilities is a matter for each council. For those facing redundancy, local authorities can work with Skills Development Scotland, which will co-ordinate local response teams under the partnership action for continuing employment initiative to provide tailored help and support for affected individuals.
I thank the cabinet secretary for that answer, which I suppose will give comfort to some people. However, at the same time that council tax has been frozen, rents for council tenants in Dundee have increased by more than £300 over three years. If we take into account housing benefit, does the minister accept that the Scottish Government’s council tax freeze has penalised the working poor and exacerbated the problem of the poverty trap? What will he do to prevent this cumulative blow to the local economy from increasing?
I find Marlyn Glen’s use of the term “working poor” quite interesting. That aside, I think that working households on low incomes will be very grateful for the fact that this Government has frozen the council tax for three years. In contrast, when we came into office, we found that, under the previous Labour Administration, the council tax had increased by 60 per cent. I am quite sure that members of the public will be able to look at this Administration’s record and be grateful that, instead of making the same exorbitant increases that the previous Labour Administration presided over, we actually froze the tax. If the Labour Party’s clarion call is that the answer to everything is to increase people’s council tax, it will serve as a timely reminder of how poor were the measures taken by the previous Labour Administration.
Regional Growth Fund
The regional growth fund will operate only in England. Scottish Enterprise already provides significant funding to support business growth and jobs, including through regional selective assistance, SMART grants, research and development grants and the equity-based funds that will form part of the Scottish investment bank. In addition, as part of the Scottish investment bank, the loan fund will provide an additional source of finance for Scotland’s growth and exporting businesses.
It is sad that the regional growth fund will not operate in Scotland. The cabinet secretary mentioned the Scottish investment bank. In Tyne and Wear, the metro will possibly be upgraded with money from the regional growth fund, which cannot operate in Scotland. The cabinet secretary will be aware that Strathclyde partnership for transport wishes to modernise Glasgow’s subway. Will he speak to Scottish Enterprise and look into whether the Scottish investment bank can provide funds to SPT for the much-needed modernisation and upgrade of the subway?
Ministers are familiar with the proposals put forward by Strathclyde partnership for transport in relation to the Glasgow subway. Mr Stevenson, the Minister for Transport, Infrastructure and Climate Change, has already met SPT on that question and will of course maintain a dialogue about it. The Government recognises the significance and effectiveness of the Glasgow subway. We will continue to engage constructively with the partnership on that question.
Scottish Ambulance Service (Meetings)
The Scottish Government is in regular contact with the Scottish Ambulance Service on a range of issues. I met the chair and a number of members of staff when I visited Springburn ambulance station on Tuesday. While I was there, I was able to confirm investment of £7.5 million in new ambulance defibrillators.
The cabinet secretary might be aware that the Scottish Ambulance Service has been unable to recruit to a vacant post in Strontian and Ardnamurchan, which means that the area is often covered by a single-crewed ambulance and is sometimes not covered at all. The situation is now deteriorating, with a further vacancy arising. Will the cabinet secretary ensure that there is adequate cover for the area until the situation is resolved, and will she ensure that the Scottish Ambulance Service examines its shift patterns to ensure that the jobs are attractive to would-be applicants?
I thank Rhoda Grant for her question. I am aware that she has written to the Scottish Ambulance Service about the situation in the Strontian and Ardnamurchan area. It will reply to her in due course and I have asked to see a copy of that reply.
Public Services (Privatisation)
The United Kingdom Government’s budget statement on 22 June 2010 set out plans for a programme of selling public assets over the next 12 months. While that is a matter for the United Kingdom Government, the Scottish Government expects to be consulted about that process if there is a potential impact on Scotland.
Does the cabinet secretary share my concern about the decision by the Tory UK Government to revive the previous Labour Government’s plans to part-privatise the Royal Mail? Will he restate the Scottish Government’s support for a publicly owned and operated postal service? In light of the plans, is it not the case that the Scottish Government’s post office diversification fund is more important than ever?
I am certainly happy to restate the Government’s position of supporting a publicly owned postal network in Scotland. I am also very happy to say that the post office diversification fund is taking its course. The contents of the fund are out for consultation just now and the Government will take swift decisions on its application in due course.