SCOTTISH EXECUTIVE
Finance and Sustainable Growth
Water Testing (Church and Community Halls)
To ask the Scottish Executive what advice it has given to local authorities regarding water testing in church and community halls. (S3O-6066)
General guidance on the strengthened legislative framework for private water supplies was issued to local authorities in 2006. It contains nothing specific about church and community halls, but supplies to such places should be treated in the same way as other large private supplies.
I thank the minister for his encouraging answer. I have no doubt that he is aware that many rural church and community halls throughout Scotland with private water sources will face annual water testing by local authorities, which will add to their limited budgets a considerable burden that many of them cannot afford. Will he investigate the situation and consider what support the Scottish Government and local authorities can give Scotland's church and community halls?
The charge for such testing is, of course, capped. I understand that reaching the cap of ÂŁ600-plus is relatively uncommon. The rates for such properties are significantly reduced in return for their providing their own water, but I am conscious of the issue and of its importance to churches and community associations. Elizabeth Smith recently wrote to me about a community association in her region and I will reply to her in early course.
Local Government Finance
To ask the Scottish Executive whether it agrees with the comment of the Convention of Scottish Local Authorities president Pat Watters that this year's local government finance settlement "will be a standstill at best." (S3O-6093)
We are providing local government with record levels of funding, but we are aware of the significant spending pressures that local government faces. That is why we continue to have regular meetings with COSLA to consider the best use of the available resources.
If—as the cabinet secretary suggests—local government is receiving record levels of investment, will he explain why Renfrewshire Council is cutting its education budget by £2.5 million and why it is to axe 81 posts, including 28 teachers, eight classroom assistants, seven foreign language assistants and 10 school secretaries?
Renfrewshire Council has benefited from a financial settlement that protects it by the application of the floor mechanism in local government finance. As Mr Henry knows, the floor mechanism ensures that local authorities are given an increase that protects them from changes in their financial situation. Renfrewshire Council has decided to reconfigure its outstanding debt profile, which has put it in a position to benefit from the floor. The council's spending on core services such as front-line education services will increase by 7.2 per cent in the coming year, which is significantly more than the equivalent Scotland figure of 4.7 per cent, and is higher than that in any of its neighbouring authorities. Decisions on individual public services in Renfrewshire are—properly—for the council, which has received a strong settlement from the Scottish Government.
Scottish Futures Trust
To ask the Scottish Executive on what date the Scottish Futures Trust will publish a detailed business plan. (S3O-6119)
The Scottish Futures Trust will publish a detailed business plan in the near future.
It is always difficult to compose a supplementary question when one receives such an informative answer from the cabinet secretary.
As Mr Finnie will be aware, many considerations apply in ensuring that disclosure of information is consistent with the Freedom of Information (Scotland) Act 2002, which he supported and which was passed by Parliament during his term in office as a minister. Clearly, the legislation must be properly applied to ensure that all relevant information that should be disclosed is disclosed, but exemptions in the legislation—of which there are many—should be applied. Clearly, if freedom of information requests have been responded to, they will have been responded to in a way that is consistent with the existing freedom of information legislation.
Given the Confederation of British Industry Scotland's positive belief that
I saw at the weekend the material that CBI Scotland released and I welcome that positive contribution to the discussion on how we take forward capital expenditure. The Scottish Futures Trust's chairman, Sir Angus Grossart, has been in dialogue with CBI Scotland to explain his approach in advancing the agenda for the trust. I welcome the constructive engagement that CBI Scotland has applied to the discussions.
Of course, the CBI Scotland commentary recognises that the Scottish Futures Trust is in fact the public-private partnership model with a fairly low-level lick of paint, but let me bring another commentary into the debate. Is the cabinet secretary aware of the work of the University of Edinburgh's Mark Hellowell—his word was gospel prior to 2007 when he was often quoted by the SNP, so let us see whether his word is still gospel these days—on the Government's non-profit-distributing model? Does he share Mark Hellowell's view that the Government's proposal is more expensive than the public-private partnership model, that it is in fact the public-private partnership by another name and that it is certainly not a not-for-profit model? I refer the cabinet secretary to page 19 of the SNP manifesto, which stated that the SNP would form a "not-for-profit" arrangement for procurement of public infrastructure. Would the First Minister—sorry, I mean the cabinet secretary—care to respond to those points?
That was reckless language of promotion from Mr Kerr. I would not make such an accusation against him at any stage in his life.
How can the cabinet secretary say with any credibility that the SFT will achieve ÂŁ160 million-worth of savings a year when it does not actually have a business plan?
Mr Brown will be familiar with the outline business case that was put forward by the Government as part of the establishment of the Scottish Futures Trust. That work, which was informed by detailed preparatory work within Government and which was advised on by other external parties, has provided the basis for how we could deliver greater value in the Government's procurement budget, particularly on capital investment. That is the basis of the calculation of an expectation of savings, and that is the focus of the work of the Scottish Futures Trust, which is to deliver on the expectations that were set out clearly in the outline business case that was published in May last year.
Orkney Islands Council (Meetings)
To ask the Scottish Executive when it last met representatives of Orkney Islands Council to discuss funding for council services. (S3O-6121)
Scottish Government officials meet representatives of the council from time to time to discuss issues related to funding.
The cabinet secretary will, from representations he has received from me and from Orkney Islands Council in recent months, be aware of our concern that the current funding formula does not, in its assessment of need, adequately reflect rurality. I welcome the on-going review of the formula and hope that it will address the issue of rurality.
There are a couple of different issues in Mr McArthur's question. The first is the general issue about levels of funding and application of the funding formula, and the extent to which it properly reflects sparsity of population and, as in the case of Orkney, island status. All those factors are taken into account in the current formula, which we inherited from the previous Administration. The big question is about the weighting that is applied to those factors. The weighting will be part of the on-going review of the local government distribution formula, which is being taken forward by the Government in partnership with the Convention of Scottish Local Authorities. I assure the member that the issues that he has raised will be reflected upon by the Government, as part of that process.
Town Centre Regeneration Fund
To ask the Scottish Executive when it will announce how the ÂŁ60 million town centre regeneration fund will be allocated. (S3O-6128)
As the Minister for Housing and Communities stated here last week, full details of the town centre regeneration fund will be announced by the end of March 2009.
So far, the only regeneration that we have seen is the regeneration of press releases from Scottish National Party and Tory MSPs, urging communities to bid for the as yet non-existent funds. Is not there a danger that that will raise expectations that cannot be met? Would it not be better if the minister were to say now how the money will be allocated, and where and what will be eligible for funding, so that towns such as Cupar, St Andrews, Newport and Pittenweem in my constituency can realistically assess whether they have any chance of making successful bids?
I would be interested to understand the subtle difference between raising expectations in some parts of the country and not raising them in Pittenweem, Cupar and the other important towns of North East Fife that Mr Smith mentioned.
The cabinet secretary might be aware of the situation in Cumbernauld and other new towns, where the town centres are essentially owned by private companies. The compartmentalised ownership of those town centres gives rise to problems in regeneration initiatives. Will the cabinet secretary explain how the town centre regeneration fund might benefit Cumbernauld town centre and other similar town centres?
The establishment of the town centre regeneration fund offers a clear opportunity—especially at this point in the economic cycle. It is a difficult time in the market, and public sector investment is making up a large proportion of the private sector investment vacancy that has been left. We seek to find the most important criteria for making judgments on deployment of the fund. Clearly, no commitments can be given about individual towns at this stage, but I assure Mr Hepburn that great energy will be put into ensuring that the right criteria are selected for judging which projects should be taken up. Broad considerations will be taken into account in our discussions on the allocation of resources from the fund.
I am rather disappointed to hear that no commitments can be made to particular towns. People in Kirkintilloch in my constituency eagerly await the arrival of Mr Mather in May, when he is coming to have a meeting with us. I was rather hoping that he would be able to furnish us with some details of the town centre fund, but now we find that the issue does not come within his remit but within the remit of the bold Mr Alex Neil, who is not here to answer any questions.
Would you ask a question please?
Perhaps the cabinet secretary could explain why the decision was made in that way?
I am afraid that I am not the person who judges what questions are allowed to be asked in Parliament. As I should, I respectfully leave that to the Presiding Officer. I am merely here as a functionary to answer questions on behalf of the Government—questions that have been selected by our distinguished Presiding Officer. It is absolutely not my responsibility to choose the questions to be answered; I just give the quality answers on behalf of the Government.
Local Government (Executive Pay)
To ask the Scottish Executive whether it has had, or plans to have, discussions with the Convention of Scottish Local Authorities or the Society of Local Authority Chief Executives and Senior Managers on the issue of executive pay in local government. (S3O-6068)
Executive pay in local government is a matter for local authorities themselves, as independent corporate bodies. We have no plans to discuss this with COSLA or SOLACE.
According to The Herald on 26 February 2009, taxpayers were paying ÂŁ20 million in salaries to chief executives and senior directors of local authorities in Scotland. Is the cabinet secretary prepared to consider the continued practice of performance-related pay being received by local authority chief executives and senior directors?
Mr Wilson's point is significant, because the scrutiny that is applied to decisions that are made in the public sector will become ever more intense in the current economic climate. The public sector will have to be able to explain all the bases on which we offer remuneration.
Does the cabinet secretary agree that, when populations in many local authority areas are falling, it is astonishing that some local authorities have chosen to increase the salaries of chief executives and senior officers not only beyond the rate of inflation, but beyond the agreed pay rises? Renfrewshire Council has awarded more than ÂŁ350,000 per year, every year, to the chief executive and senior directors at a time when the population is falling. Does the cabinet secretary agree that that is unacceptable?
Mr Henry will understand that I cannot, as I said in my original answer to Mr Wilson, comment on individual decisions by local authorities. However, to reiterate what I said to Mr Wilson, in the present economic climate and given all the issues with which we have to wrestle in handling the public purse, it is absolutely fundamental that all public authorities, including Government, local authorities and executive agencies, take due account of the challenging economic climate and the link with remuneration. All authorities must deal with that effectively, to guarantee that they deliver appropriate remuneration packages in the context of the economic climate.
Carbon Savings (Reporting)
To ask the Scottish Executive, when a householder receives advice from an energy saving Scotland advice centre, funded from the Scottish Government's energy budget, and subsequently takes steps that produce a carbon saving, by whom that carbon saving is reported. (S3O-6102)
The energy saving Scotland advice centres are managed on our behalf by the Energy Saving Trust. The Energy Saving Trust employs an independent team to evaluate continually the advice that the centres give. That is then reported to the Scottish Government in quarterly and annual reports.
The minister will understand the importance of clarity in carbon accounting in the context of the Climate Change (Scotland) Bill. When measures are taken under a Scottish Government-funded programme, are the savings reported by that programme? Similarly, when measures are taken by a power company under the carbon emissions reduction target, are the savings reported by that company? In either case, does an insulation or heating installer deduct from any carbon savings that are reported an amount that is equal to the savings that the Energy Saving Trust reports to the minister in respect of advice that has been given?
I share the member's interest in achieving a true and fair view and an objective and accurate assessment so that we can monitor progress. The process is robust. As I mentioned, the carbon savings are evaluated through quarterly surveys. A carbon saving is attributed to the Energy Saving Trust or the advice centres only when a householder confirms that the advice that was provided influenced or stimulated the action. In addition, the Energy Saving Trust has an independent internal audit committee that is made up not only of Energy Saving Trust employees, but of external bodies such as the energy companies EDF Energy and Scottish Power, environmental agencies and BP.
Local Authority Funding (Roads)
To ask the Scottish Executive whether it intends to review the formula for the allocation of funds to local authorities for the upkeep of roads. (S3O-6100)
As I said a moment ago in answer to Mr McArthur, a joint review with the Convention of Scottish Local Authorities is under way. The review will be concluded in time to inform the allocation of funding to local government from 2011-12, following the next spending review. The current system uses a needs-based formula that we inherited from the previous Administration.
The cabinet secretary is aware that the formula is predicated largely on the length of road and not the volume of usage. A recent article in the Glasgow Evening Times indicated that Glasgow roads have 20 times the number of vehicles as the equivalent roads in rural Scotland have. I know that the minister understands that concern, because we spent the summer months pounding the pavements of some of those roads in the east end of Glasgow. Amidst the clamour of Tollcross Road, as we were desperately seeking to persuade the electorate, we recognised that traffic has quite an impact on places such as Glasgow.
As Mr McAveety knows, from his time as a minister and from the time that we spent together on the Finance Committee, the allocation formula is needs based, but requires the use of considerable judgment with regard to the relevant factors and criteria.
I want to alert the cabinet secretary to the dire state of the roads in Clydesdale, in the South of Scotland region. Does he agree that, to stimulate economic growth during a time of recession, everything must be done to ensure that the infrastructure of rural areas is improved? Does he also agree that South Lanarkshire Council should do all that it can to maintain the roads in Clydesdale?
Clearly, local authorities must wrestle with many competing priorities. I acknowledge the issues that Aileen Campbell raises. The Government puts in place the resources for local authorities, and it is for local authorities to judge how they deploy those resources. Obviously, decisions can be made to use part of that funding to take the appropriate steps to maintain the road network in the South of Scotland and Clydesdale.
Manufacturing Sector
To ask the Scottish Executive what assessment it has made of the impact on Scotland's manufacturing sector of the United Kingdom Government's announcement of ÂŁ2.3 billion in loan guarantees for the car industry. (S3O-6136)
The demand for new cars has dropped dramatically recently because of issues around consumer credit and confidence. In Scotland, the effects of that are being felt by our car retail industry and the wide range of companies that support car manufacturing and retail.
Is the minister aware of the concern of the manufacturing sector in my constituency about the lack of progress with Westminster's scheme and the desperate prospects for employment as a result? Is he also aware that, in Germany, as he just mentioned, domestic car sales are on the increase due to the introduction of a subsidy to scrap old cars and purchase new ones? Will the minister draw that contrast to the attention of Scotland's Council of Economic Advisers and ask the Westminster Government to get a move on with its loan guarantee plan and to consider introducing a scheme that is similar to the one that is working in Germany?
We are aware of the German scheme and will draw it to the attention of the Council of Economic Advisers and Westminster, although I am sure that they are already aware of it.
The minister is aware that the manufacturing sector is playing a growing role in Scotland's economy. Many workers are still working in that sector. Concerns have been expressed to me over a number of months about what is happening in the manufacturing sector. Would the minister consider convening a summit of key stakeholders, including trade unions, employers and the Government, to discuss the future of Scottish manufacturing?
The answer is an absolute affirmative. That would be the second such meeting that we would have had. We have also had meetings with the engineering sector—twice—and with the aerospace, marine and defence sectors; the meeting that Mr Park proposes would be part of that continuity. Widening the stakeholder base and getting as many voices in the room as possible would be helpful, and I will liaise with the member to ensure that that happens.
Scottish Futures Trust
To ask the Scottish Executive what projects the Scottish Futures Trust plans to deliver in 2009. (S3O-6078)
Details of the Scottish Futures Trust's work plan for the 2009-10 financial year will be published in its business plan in the near future. We have made clear that the SFT will commission its first new school project this year and will be involved in the next part of our schools investment programme, which will involve working with local authorities. In addition, the SFT is now leading the hub initiative and managing the process that will lead to the establishment of the two community hub pathfinders in the south-east and the north of Scotland.
The cabinet secretary has, of course, benefited from a series of pipeline projects involving schools, roads and rail links that were left for him by the previous Administration. Can he confirm that not one project has been approved, nor has one contract been signed, since February 2008? That is more than a year of inertia. Exactly how much longer will it be before projects—such as a replacement Dumbarton academy—start to flow again?
Jackie Baillie casually slips past the decision that was taken in February 2008 for the M74 completion contract, which is worth ÂŁ445 million, and which her Administration spectacularly, in all its years in office, never got going.
And I have yet to get an answer.
Presiding Officer, the member's behaviour is somewhat indelicate.
I will decide that.
In January 2009, the Government let the contract—worth £320 million—for the M80 Stepps to Haggs road improvement. That, in addition to all the school building that is going on in other parts of the country, means that the entire premise of Jackie Baillie's question is, as usual, totally without foundation—and thank goodness for that.
The cabinet secretary is aware that, in Glasgow, there is huge controversy over the council's proposals to close and merge a number of primary schools. I draw his attention to the fact that the closures include Wyndford and St Gregory's primary schools, which are side by side and provide an excellent example of a joint school campus.
I do not have in front of me the figure for the part of Glasgow City Council's capital budget that is funded by the Scottish Government, but if my memory serves me right, it is of the order of ÂŁ100 million per year. Mr Brown cannot tell me that that type of resource cannot be deployed effectively to support the schools infrastructure in the city of Glasgow. I imagine that it would be perfectly possible for that work to be undertaken.
Town Centre Regeneration Fund
To ask the Scottish Executive when communities in the Scottish Borders will be able to apply for money from the town centre regeneration fund. (S3O-6070)
As the Minister for Housing and Communities reported in the chamber last week, the town centre regeneration fund will be available in 2009-10 to support our town centres and local high streets. We are working on the details of the fund, and those will be announced by the end of March 2009.
I acknowledge that the exact details will not be announced for several weeks. However, I am sure that the cabinet secretary is aware that many council officials throughout Scotland are drawing up elaborate plans for how they want to spend that new fund. Will the cabinet secretary reassure me that bids that come directly from local communities and groups will be considered, and that councils will not be given complete control over those funds?
The details of the arrangements for distribution of the funding and for judging individual projects will be set out by Alex Neil, the Minister for Housing and Communities, later this month. I am certain that, as part of that process, the questions that Mr Lamont raises will be properly and fully answered.
National Planning Framework (Consultation)
To ask the Scottish Executive whether it considers that the consultation carried out on the national planning framework for Scotland 2 was adequate. (S3O-6064)
We believe that a very full consultation was carried out. We complied fully with the commitments in the statutory participation statement, which was the first of its kind in Scotland. Planning Aid for Scotland commented:
I thank the minister for that most helpful answer. Although the development at Tornagrain on the A96 is not designated as a national project, it is mentioned in paragraph 272 of the NPF 2 document. Given its inclusion, some of my constituents are concerned that the development has been approved. Will the minister clarify that planning permission has still to be granted for the Tornagrain development and that a local consultation on the application will take place in the normal manner?
Yes.
We have a debate on the national planning framework later, so I will move on.
Bus Services
To ask the Scottish Executive what plans it has to give communities a greater say in the provision of local bus services. (S3O-6082)
As part of our work on the bus action plan, the Scottish Government has encouraged the establishment of bus forums by local authorities. Bus forums are a way in which bus users can voice their concerns about local bus services directly to bus operators and local authorities. In "Buses for Scotland—Progress Through Partnership: A Guide for Local Authorities, Regional Transport Partnerships and Bus Operators", we have provided best practice guidance on how to establish bus forums.
I thank the minister for that reply, although I think that my constituents will find it rather disappointing; in particular, I refer to the thousands of bus users in Gorebridge, Newtongrange, Rosewell and Eskbank, who have been told by First that more than 700 bus journeys between Midlothian and Edinburgh will be withdrawn in April. Does the minister share my concern that such cuts can be made without consultation of the affected communities? Does he agree that such service reductions do nothing to promote the use of public transport? Will he be brave enough to stand up to Brian Souter by backing my colleague Charlie Gordon's proposals for bus re-regulation? Will he put the interests of Scotland's bus passengers before the SNP's coffers?
I realise that the member arrived in time to participate only from question 5 onwards. If she had listened to some of the earlier answers, she would know that the Government is engaged in a wide range of issues of interest to people throughout Scotland.
Briefly please, minister.
We are heavily promoting the range of options that we inherited from our predecessor Administration to ensure that the bus services that are required throughout Scotland are actually delivered.
Question 14 has been withdrawn.
Borrowing Powers
To ask the Scottish Executive what it considers the advantages would be of the acquisition of borrowing powers. (S3O-6118)
The opportunity to borrow in a responsible manner would give the Scottish Government greater flexibility in budgetary management and in our ability to manage expenditure in the best interests of the people of Scotland and the Scottish economy. It would create opportunities to address Scotland's clear infrastructure needs more quickly by phasing funding in a way that is sensible, efficient and wholly appropriate to Scotland's circumstances. It would also increase the range of policy levers that are available to help to stimulate the economy during times of economic need.
Does the cabinet secretary agree that one of the advantages of the Scottish Government having borrowing powers would be an end to the kind of whingeing that we heard on television last night from the SNP Minister for Transport, Infrastructure and Climate Change, whose position appeared to be that the taxpayers of England and the rest of the United Kingdom should bail out the Scottish Government over its troubles in respect of the new Forth bridge? Does the cabinet secretary agree that that sort of attitude is both unseemly and unsuitable and that it would be far better if the Parliament and the Government were able to plan their capital programme properly over a longer period, with the ability to fund the necessary repayments?
Mr Brown might have a point if there were any substance to what he has said. I saw Mr Stevenson's interview last night, and I must have been watching a different channel from the one that Mr Brown was watching. We are asking, legitimately, for the ability sensibly to plan over a longer period of time projects that have an extraordinary cost within the routine of public expenditure. During the budget process, I negotiated with the Liberal Democrats a common purpose approach to the question. I am surprised that the member and I are at odds with each other so quickly, when we were so united only a short time ago.
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