Finance and Sustainable Growth
Cities (Sustainable Growth)
The Government’s purpose is to increase sustainable economic growth in all areas of Scotland, including our cities. We have a wide range of policies in place to support that growth.
I thank the cabinet secretary for his expansive reply. He will be aware of the publication today of the Sustainable Development Commission Scotland’s fourth annual assessment of progress by the Scottish Government, which notes:
The Government’s work on the issue is designed to ensure that every opportunity to strengthen and develop communities is seized. That was the case for the pilot projects in which community councils were allocated resources to enable recovery in communities, and that lay at the heart of the work of the town centre regeneration fund into the bargain.
Businesses and Jobs (Inverclyde)
In 2009-10, Scottish Enterprise spent £338 million on promoting economic development in Scotland. The Scottish Government provided £281 million of that amount in grant in aid. Scottish Enterprise’s investment and continuing involvement in Riverside Inverclyde, an urban regeneration company, are the focal points of its activity to attract businesses and jobs to the area.
The minister will know that regeneration of a community is about people—about building quality homes for them to live in; creating jobs for them to work at; having schools and colleges that will educate them and allow them to gain additional skills; and, of course, providing the quality services that they require. Given that all those matters face severe spending reductions, what work has the Scottish Government done to measure the impact that the cuts will have on communities such as Inverclyde, which are less resilient to them? If the Scottish Government cannot protect us from Tory cuts, does the minister at least understand and take account of the cuts’ disproportionate impact on communities such as Inverclyde? The Cabinet Secretary for Finance and Sustainable Growth has recognised that and previously assured me that he would take account of it.
I recognise the situation that Duncan McNeil portrays. I was educated in Greenock in Inverclyde and I worked there. I remember companies such as Drummond’s, Mitchell’s, Hastie’s, Kincaid’s, Scott’s and Lithgow’s, which all contracted and have gone.
I am sure that the minister will agree that enterprise agencies and the whole of the public sector play an important part in bringing business and success to Inverclyde. Does he also agree that, with higher fuel costs on the way, having higher fuel prices in neighbouring areas and lower ones in Inverclyde will benefit the area and its economy?
I very much agree with that. Coming together on that has been the hallmark of what I have been trying to do, in my small way, in politics. We are endeavouring to come to the right conclusions and press the right buttons when it comes to important decisions about lowering fuel costs to help families and make the community as competitive as it can be.
Scottish Budget (Financial Recovery)
The Scottish Government has set out a budget for 2011-12 that prioritises support for Scotland’s economy. It includes substantial support for Scottish business, including through our package of business reliefs, which is worth £2.4 billion over five years; support for employment, at a time when there are significant pressures on the labour market, including by encouraging small businesses to recruit, and, in the public sector, by maintaining funding for the NHS and protecting local authorities from the worst of the cuts; the provision of a record 25,000 modern apprenticeships in 2011-12; and continued investment in Scotland’s infrastructure, such as through the £2.5 billion investment programme that will be achieved through the non-profit-distributing model, which will help economic recovery.
Does the cabinet secretary agree that Scotland’s college sector has a key role to play in ensuring that our skills base is maintained during the financial downturn? The Government has said that it will provide an additional £15 million to the sector but, to date, the colleges have no idea how that will be allocated. Is he aware that student teaching hours are being cut to maintain student numbers? Does he agree that that is not good enough and that it downplays the important part that our colleges play in educating and training people across Scotland? Will he acknowledge the excellent work that Cumbernauld College is undertaking at its Cumbernauld and Kirkintilloch campuses? Will he assure me that our colleges will be supported to ensure that we have a trained and educated workforce for the future?
I am delighted to place on record the Government’s appreciation for the work that is undertaken at Cumbernauld College, which I am certain will support many people of all ages in Cumbernauld and Kilsyth and the wider North Lanarkshire area.
Flood Alleviation Schemes (Moray)
The Scottish Government and COSLA have agreed to discuss the issues around future capital support for flooding. The fact that budgets for the current year have already been agreed with COSLA means that any changes would not take effect until 2012-13.
I, too, apologise for being slightly late today.
This is an important issue. I will put a number of points on the record to deal with Mary Scanlon’s question. The first relates to the Elgin flood scheme. The Government has given an assurance to Moray Council that has enabled the council to embark on work on the scheme. I hope that Mary Scanlon will acknowledge that the assurances that, in my opinion, were always there have been acknowledged by Moray Council and that work on the scheme has started.
Co-operative Enterprises
The development of co-operative enterprises is an operational matter for Co-operative Development Scotland, which is a wholly owned subsidiary of Scottish Enterprise. CDS has a specific role to promote and support all forms of new and existing co-operatives with growth potential. Working closely with business gateway, it provides specialist advice and support, promotes the co-operative model and helps to develop markets for co-operative and co-owned businesses.
There is now significant international evidence that worker co-operatives and employee-owned businesses are more productive than conventionally owned companies. Much of that evidence has been brought together by David Erdal in his book “Beyond the Corporation: Humanity Working”, which will be launched this evening at the National Library of Scotland. Given that increased productivity is the key to growing Scotland’s economy, has the minister any plans to encourage the availability of financing for those who are pursuing employee ownership or worker co-operatives, beyond that which the Baxi Partnership already provides?
I know David Erdal well. He is the man who sold his company, Tullis Russell, to its employees. The company has shown real resilience since, which supports the international evidence on the productivity of co-operatives and employee-owned businesses, and the good work of the Baxi Partnership.
Planning Application (Milngavie)
The directorate for planning and environmental appeals anticipates that the total cost to Scottish ministers of dealing with the planning appeal by Tesco Stores Ltd in Milngavie will be around £16,000. That includes the cost of hiring venues for a pre-examination meeting and for inquiry and hearing sessions, advertising the inquiry sessions in the local press, informing all parties of arrangements for the meetings, staff time, and travel and subsistence costs for the reporter. At this stage, it is anticipated that the reporter will issue his decision in March 2011.
I was in contact with the minister’s predecessor on this particular application, and I confirm for the record that it was a ministerial decision to pass the appeal to the reporter. There was a possibility of not so doing, but the decision to do so was made in the minister’s name.
The basis that Des McNulty asks about is the same basis that applied when he was a planning minister. It is a democratic basis that has been established for many years and accepted by all the parties, whereby decisions go to inquiry reporters. In some of the local press coverage of this issue, Des McNulty suggests that the decision should have been taken immediately by ministers rather than going to an inquiry reporter. I checked on that today and can state that that has never been done, and there are good reasons why it should not be done.
This question raises the issue of cost, and no doubt the minister will reply to me as he did in the last part of his reply to Mr McNulty.
I am stunned that that kind of argument can be made by somebody who opposed the large retailer levy. The large planning applications to which the member refers would not necessarily apply in this case. I accept that a substantially lower fee is paid in Scotland. I have made that point before to Mr Purvis. However, rather than £15,000, I think that the figure is around £18,000. As Mr Purvis said, though, it can be substantially more than that in England and Wales, up to a maximum of £250,000. All I will say is that that just shows the business-friendly policies of this Government, which ensure that we can allow planning applications to go forward.
Will the minister comment on the fact that Des McNulty claims locally in Milngavie that he wants to protect town centres and small businesses from the power of Tesco, but when offered just that he votes against it in the Parliament in Edinburgh?
Order. That has nothing to do with the substantive question.
I have a similar question for the minister about the cost of appeals, with regard to the incinerator in Coatbridge.
I am sorry, but that has nothing to do with the substantive question either.
Oil Price
The Scottish Government is concerned about the impact of rising oil prices and the flow-through to fuel prices, and the effect that that is having on households and businesses across Scotland.
The cabinet secretary will be aware that many consumers, especially in the Highlands and Islands, are off the gas grid and must rely on oil and liquefied petroleum gas to heat their homes. Prices for those fuels were already high, but they rose dramatically during the recent cold spell. Will the minister tell us what is being done and what can be done to assist users of oil and LPG with the high cost of those fuels?
In the short term, there are a number of challenges in the area, because individuals are facing higher bills for refilling their oil supplies than they faced before the spell of winter weather and the substantial rise in oil prices.
Economic Growth (North Ayrshire)
The Scottish Government is committed to supporting North Ayrshire Council’s implementation of its economic development and regeneration strategy. A joint working party will be established in the near future, to address a range of physical regeneration, economic and social issues, which were highlighted at a recent meeting with North Ayrshire community planning partners.
I was pleased to see the minister and Mr Neil at the meeting.
Manufacturing is vital to the whole of the Scottish economy and its importance was highlighted in “The Scottish Economic Recovery Plan: Update February 2011”, which was published last week. The manufacturing sector is helping to lead Scotland’s economy out of recession. The most recent gross domestic product data show that the Scottish manufacturing sector grew by 0.7 per cent in the third quarter of 2010.
Economic Activity
The Scottish Government brought forward a budget for 2011-12 that prioritises support for economic recovery and sustainable economic growth, in the face of the reductions in the public expenditure that is available to us. In partnership with other devolved Administrations, we continue to make representations to the United Kingdom Government and to make the case for sustained investment in the Scottish economy. The budget contains a range of interventions, a number of which I have set out to the Parliament today.
I am sure that members of all parties will acknowledge the Government’s hard work in the face of the largest-ever cut to the Scottish block grant.
I certainly do. I represent a neighbouring constituency and I have watched the strengthening of Dundee’s economy over a number of years. The projects to which Mr FitzPatrick referred, on the V and A at Dundee and at Gamesa and the Michelin Tyre plant, are encouraging interventions and there are a number of developments in the manufacturing sector, which I think helps to rebalance elements of the Scottish economy.
School Buildings (Local Authority Funding)
In June 2009, the Scottish Government announced £800 million of funding towards a £1.25 billion school building programme, which will be funded by a mixture of capital and revenue finance. Decisions regarding the allocation of funding for the Scotland’s schools for the future programme are a matter for the Cabinet Secretary for Education and Lifelong Learning.
As the cabinet secretary knows—not least because his colleague, the education secretary, who is a former pupil of the school, will have told him—ambitious plans are being developed to refurbish and extend Marr college in Troon. Those plans have widespread support in the town. Will the cabinet secretary assure me that, when he determines future funding allocations to councils, he will consider favourably those proposals by South Ayrshire Council, which will help to preserve one of Troon’s most iconic buildings and to deliver the best possible educational facilities for local pupils and teachers?
The support that is available for school refurbishment and building programmes is, in part, in the school building programme to which I referred in my original answer to Mr Scott, but it is also in the general capital finance that is made available to local authorities.
Schools are a vital part of our infrastructure programme. The Scottish National Party Government emptied that programme of nearly £1 billion, largely due to its view on private finance. I welcome the complete reversal of the Government’s position on the use of private finance, as outlined in its budget, in which it adopts public-private partnerships back into the mainstream of public financing.
It is important that we marshal all the facts and the sequence of events. Mr Kerr probably stood in my place in 2007 and said to Parliament that, if the SNP came to office, it would cancel all the school building projects that were in train. Now, he comes to the chamber and criticises the Government for not doing that but doing what it said it would do: sustain the programme that was in place. In fact, since we came to office, we have delivered more on the school building programme than Mr Kerr and his colleagues were committed to.
Business Rates (Ballater)
We are always happy to listen to the views of the business community. That is why the Minister for Enterprise, Energy and Tourism visited Ballater to meet local businesses on 27 September. The First Minister will consider the request for a further meeting from the Ballater Business Association and respond shortly.
I thank the cabinet secretary for that reply, but Jim Mather wrote to the Ballater Business Association yesterday. Its reply of today states:
As I said in my original answer to Mr Rumbles, the First Minister will consider the request and respond shortly to the Ballater Business Association.
Scottish Investment Bank
Demand for the Scottish Investment Bank equity products remains high with the likely level of investment in 2010-11 being similar to the previous year’s high level. Last month, the Cabinet Secretary for Finance and Sustainable Growth was pleased to announce that the Scottish loan fund was open for business with the appointment of Maven Capital Partners as the fund managers. A further £5 million has been added to the fund—an extra £2 million in European regional development funding, matched with a £3 million commitment from Highlands and Islands Enterprise—bringing the total public sector commitment to £55 million.
I have had some engagement with smaller manufacturing-type companies in the region that I represent, which have raised concerns with me that, because of their tight margins, some of the costs associated with the Scottish loan fund might be prohibitive and affect their ability to engage with it. Are the Scottish Government and the minister aware of that potential issue? Have they made an assessment of the cost with the loan fund managers? Obviously, I respect the commercial nature of the information that the businesses have given me, but would the minister be willing to engage with some of those businesses if I was able to share that information with him?
Given the nature of the question and the way that Mr Park phrased it, I would very much prefer to sit down with him and discuss the particulars of those businesses, so that I understand them more clearly. We are in very challenging times. People will know how expensive it is to borrow from the private sector and from banks at this time. We are determined to do everything we can to work with companies, through the vehicle of the Scottish loan fund and using other measures, to help them navigate their way through this time. There is a dialogue there that we could and should have.
Edinburgh Tram Project
With formal mediation due to start next week, this is not the right time to be considering substantial changes to the governance of the project. However, I want to ensure that every opportunity is taken to resolve the long-running dispute between TIE Ltd and the contractor so that trams can be delivered in Edinburgh as soon as possible, and I have agreed that Transport Scotland will take part in the mediation process.
I commend the Cabinet Secretary for Finance and Sustainable Growth for intervening to enable the mediation process to take place. We hope that it will reach a successful conclusion.
Lord Foulkes will have heard the statements on the subject that were made by the cabinet secretary this morning. The Scottish Government has not been merely an observer. We receive regular updates from the City of Edinburgh Council and Transport Scotland maintains regular communication. As the cabinet secretary made clear, he has had a number of meetings with the City of Edinburgh Council on the matter.
Public Sector Absenteeism
The Scottish Government is committed to driving down absenteeism across the public sector, working with public sector partners and employee representatives. All cost-effective interventions to improve both employee wellbeing and public sector efficiency are being considered.
The cabinet secretary will be aware, from our discussions at the time of the budget, that if we were able to achieve a two-day reduction per employee in the level of absenteeism in the public sector—which is far higher than in comparable occupations in the private sector—we would achieve a saving of some £138 million a year. There is a significant prize at stake. Beyond the generalities, what specific programmes are being put in place to address the problem in the departments for which the cabinet secretary has direct responsibility?
Before Mr McLetchie gets carried away with the savings that he has identified, I point out that they would materialise only if we also reduced commensurately the level of public sector employment. In the interests of completeness, it is important that we all understand that.
One notable absentee from the public sector after the election will be Mr Mather, the Minister for Enterprise, Energy and Tourism. I take the opportunity to pay tribute to him during what I think will be his last question time. Although we have had our differences across the floor of the chamber, he has always been a congenial minister. Indeed, he has visited my constituency on a couple of occasions. I am sure that he would agree that one way in which the Government could reduce absenteeism in the public sector would be by adopting Labour’s living wage campaign, which, in Glasgow, has led to a reduction in the number of days for which employees have been absent from work.
I acknowledge the generous tribute that David Whitton has paid to Jim Mather. Mr Mather is not only a congenial colleague; he is also an excellent person to work with. It has been an unreserved privilege for me to have him at my side throughout the term of the Government, and I thank Mr Mather warmly for all that he has contributed to the Government. Absenteeism and Mr Mather are not two things that I would often put together in the same sentence, as he is always there, working hard with great diligence.
Railway Station Car Parking
The consultation responses indicated that further research was required to gain a fuller understanding of the factors influencing the use of park-and-ride facilities and the relative importance of each factor. Research into those factors and the relationship between car park supply and public transport demand is currently being undertaken. The research findings, along with the consultation responses, will be used to produce a national rail car parking policy early in the next session of Parliament.
In its submission to the consultation, North Lanarkshire Council stated that
It is fair to point out that decisions of that nature rest with North Lanarkshire Council, which has ownership of the park-and-ride facility at Croy, for example. However, it is our view that rail car parks should not be viewed strictly as a revenue source but as a means of facilitating access to the rail network for people who live outwith a station’s walk-in catchment area.
On a point of order, Presiding Officer. Is it in order for ministers to give misleading responses to questions? Earlier, I asked a question about Tesco’s appeal. It is quite clearly a ministerial decision to pass any appeal to the inquiry reporters unit. Ministers authorise expenditure on an inquiry and any decision that is reached is on the authority of the minister. That is quite explicit in the legislation. I do not—
I must stop the member there. The member knows full well that the Presiding Officer has already ruled that it is not up to the chair to comment on the veracity or accuracy of ministers’ responses to questions.