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Chamber and committees

Plenary, 06 Mar 2008

Meeting date: Thursday, March 6, 2008


Contents


Question Time


SCOTTISH EXECUTIVE


Finance and Sustainable Growth


Economic Development (Borders)

To ask the Scottish Executive what dedicated investment there will be for supporting economic development in the Borders. (S3O-2502)

The Cabinet Secretary for Finance and Sustainable Growth (John Swinney):

The prime source of investment for supporting economic development in the Borders, alongside the private sector, will come from the local authority and Scottish Enterprise. Scottish Enterprise's delivery will be organised on a regional basis, with Borders alongside Dumfries and Galloway comprising its south of Scotland region.

Scottish Enterprise's future budget allocations to each of the five regions in its area have not yet been approved. I can however tell the member that the Scottish Government places great importance on supporting and encouraging economic development throughout Scotland, including the Borders.

The Government economic strategy sets out how we will focus on creating a more successful country through increasing sustainable economic growth. The strategy sets out an approach to growth that is cohesive across Scotland's regions.

Jeremy Purvis:

It is only a matter of weeks until the start of the new financial year and yet there is still no definite figure for what the enterprise network investment will be. The cabinet secretary will know that the figure last year was £9 million, of which £1.1 million was for skills and learning. How much will go to the Borders next year? When will agreement on that investment be reached with the business gateway and the local authority? What is the target for start-up businesses? The cabinet secretary knows that last year's figure of £9 million included £520,000 to encourage more than 200 new business start-ups. What is the figure for next year?

John Swinney:

Discussions relating to decisions on the business gateway are on-going. The Government is working to ensure that those decisions are arrived at timeously. Obviously, in many respects the formulation of budgets is predicated on the passage through the Parliament of the Budget (Scotland) Bill. I am delighted that we succeeded in achieving passage of our budget bill last month.

One measure that will support investment in the Borders is the small business bonus scheme, which has been warmly welcomed across Scotland. It will have a formidable effect on communities in the Borders. The effect will be no less in the town of Hawick. The town may not be in Mr Purvis's constituency, but it is in the Borders. In the Hawick News, of which I am an avid reader, I read that the announcement of the small business bonus scheme was welcomed as "great news" by Hawick and Hermitage councillor Ron Smith, who is—I happen to have heard—a Liberal Democrat. Mr Smith said:

"This is great news. It will particularly favour the smaller local shops which are the mainstay of any High Street."

I am delighted that the Government has made such a positive impression on economic development in the Borders. I look forward to Borders businesses benefiting from such a visionary scheme from the Government.

John Lamont (Roxburgh and Berwickshire) (Con):

I draw the cabinet secretary's attention to the Government's gross value added figures, which show a dramatic drop in investment in the Borders during the time of the Liberal-Labour Administration. Can he assure me that the trend will be reversed?

John Swinney:

I am pretty sure that Mr Lamont is also an avid reader of the Hawick News, so he too will have seen the warm welcome that the Liberal Democrats have given the small business bonus scheme that the Government was delighted to introduce. I am glad that the Conservatives were able to support it during the passage of the budget bill. I am certain that the reduction in business rates will have a significant effect on improving business competitiveness and opportunities, particularly for businesses in areas such as the Borders where business rates are a formidable part of the cost of running a business. I look forward to seeing the fruits of that success in the months and years to come.

Christine Grahame (South of Scotland) (SNP):

I attended a successful Borders tourism exchange event in Kelso on Tuesday, as did my colleague John Lamont—this is not a coalition. As the cabinet secretary is aware, tourism is a key growth area in the Borders. Has he had any contact with this fledgling partnership? If not, will he or the Minister for Enterprise, Energy and Tourism meet representatives and me to discuss ways of assisting this development?

John Swinney:

Christine Grahame is omnipresent in the Borders—Kelso, Hawick, Galashiels and all other areas—and I am delighted to welcome her interest in the area. The Minister for Enterprise, Energy and Tourism will be delighted to meet the tourism representatives. There has been a great deal of dialogue between the Government, particularly the enterprise minister, and the tourism sector. We appreciate that dialogue, which forms part of our determination to ensure that tourism becomes an even greater contributor to the Scottish economy. There is significant potential for it to do so.

Des McNulty (Clydebank and Milngavie) (Lab):

How does the Cabinet Secretary for Finance and Sustainable Growth reconcile the statement, made in June 2007, that the Scottish Government would provide £115 million towards the Waverley line project with yesterday's announcement, which effectively removes £115 million—which was earmarked for taking forward the project—from the budget for the spending review period? How is no money and no railway before 2011 good news for economic development in the Borders?

John Swinney:

Because we will actually do it. This is the big regret about the previous Administration, which had eight years of an undiluted opportunity. Without being in any way disrespectful to the record of the Labour Party in the previous Administration, I remember its members being privately reluctant about the Borders railway—so much so that nothing was done to lay one metre of track. It is bizarre that Mr McNulty is trying to hold the Government to account in this way. We will be able to deliver on the Borders railway in a way that the Labour and Liberal Administration comprehensively failed to do during the past eight years.


Young People (Education and Training)

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

To ask the Scottish Executive what plans it has to allocate additional funding, over and above the Cabinet Secretary for Education and Lifelong Learning's budget, to ensure that all young people receive sufficient education and training to contribute effectively to the economy. (S3O-2548)

The Cabinet Secretary for Finance and Sustainable Growth (John Swinney):

The Budget (Scotland) Bill for 2008-09, which details the Administration's spending plans, was approved by Parliament on 6 February 2008. Appropriate provision has been made in the overall budget, and in the education and lifelong learning and local government budgets, to ensure that all young people receive sufficient education and training to contribute effectively to the economy.

Elaine Smith:

Does the cabinet secretary agree that sufficient funding is essential if further education institutions are to be allowed to prioritise the educational needs of the communities they serve rather than operate as businesses subject to financial constraints based on restrictive performance indicators? Is the cabinet secretary aware of the situation in my constituency, where general education courses at Coatbridge College are under threat? Can he offer any assistance to help secure a future for those vital courses?

John Swinney:

I am aware of the detail to which Elaine Smith refers regarding the situation at Coatbridge College. As I understand it, the changes to the general education courses there have been undertaken on educational grounds, as part of a process that has been under way for some considerable time. Essentially, their purpose is to improve the performance of the college, which is now achieving formidable levels of performance—and the number of enrolments has increased from about 5,000 to about 7,000. The college is performing well, it is financially secure and it is working to deliver the courses that are appropriate for all the communities it serves.

On Elaine Smith's more general point at the start of her question, the Government is determined to ensure that the further education sector receives adequate funding, which I believe it has, and can make a significant contribution to the development of skills in our economy. It is upon the skills agenda that we will be able to build a great measure of our competitiveness. The further education sector and Coatbridge College, which is in an area where economic development is very welcome, will be able to contribute to that, based on the budget that Parliament has approved.


Tidal Energy (Pentland Firth)

To ask the Scottish Executive what discussions it has had with the United Kingdom Government regarding investment in the development of renewable tidal energy in the Pentland Firth. (S3O-2507)

The Minister for Enterprise, Energy and Tourism (Jim Mather):

We are in close contact with the UK Government on a range of issues relating to the development of renewable energy. The Pentland Firth presents a huge potential energy resource and could play a vital role in terms of our renewables targets as well as revitalising the local economy. The Scottish Government is working closely with a number of bodies, including Highlands and Islands Enterprise, Highland Council and the Crown Estate, on ways to accelerate deployment in the firth and maximise the associated economic benefits for Caithness.

I call Jim Mather—sorry, Jamie Stone.

Jamie Stone:

Yes, I am indeed Jamie Stone, but that does not prevent me from warmly welcoming the positive tone of the minister's answer. As Dounreay continues to decommission and people are worried about long-term quality employment, there is a lot of positive talk about the potential of the Pentland Firth. Does the minister agree that turning that potential into an actuality will take considerable investment and that the enterprise network, the Scottish Government and Highland Council will not have those resources? Does the minister therefore agree that co-ordination with Westminster to provide public funding and to attract private funding will be essential?

Jim Mather:

We do not see the enterprise agency as working in isolation, and we tend to go beyond what Westminster is offering. Our proposed changes in the renewables obligation Scotland will give developers the appropriate support to develop the technology further. We will consult on those proposed changes in due course.

In addition, there is the Scottish Government's £13 million wave and tidal energy support scheme. The scheme supports nine innovative projects and provides funding for infrastructure upgrades at the European Marine Energy Centre in Orkney. We have also just completed a strategic environmental assessment that has identified a number of ways in which we can push forward our knowledge to understand how best to develop marine renewables. In response to that, we will convene a marine energy policy group, made up of key industry and environmental stakeholders. They will lead in creating and monitoring an environmental research programme for the sector. The situation is looking positive for the future.

Rob Gibson (Highlands and Islands) (SNP):

Would the development of a European energy network be a means to take marine power to the markets that exist, perhaps to bypass the blockage with the Office of Gas and Electricity Markets, and to get the UK Government to see that there is a wider market in Europe? Would that incentivise the investors in the Pentland Firth potential to commit the large sums that will be required?

Jim Mather:

It is interesting that the wider potential has been identified not only by the Scottish Government but by a very British institution, the Crown Estate, which identified the potential of subsea interconnection. The bottom line is that the Government is committed to harvesting offshore renewables. The development of an offshore network and infrastructure is accepted to be vital in unlocking the long-term economic benefits—hence the strategic environmental assessment. That is an indication of our desire to explore every option to optimise the renewables. We will maintain close and regular contact with a range of stakeholders. However, under the current framework, regulatory responsibility remains with Ofgem.

Does the minister seriously still intend to reduce targets for tidal and wave energy over the next four years?

Reducing targets and returning to zero, and thereby not penalising consumers and the industry for devices that do not exist, seems eminently sensible to me. That is indeed what we intend to do.

Lewis Macdonald (Aberdeen Central) (Lab):

Does the minister agree that, in addition to the funding from Scottish sources that he has indicated, it is important that tidal energy initiatives in the north of Scotland continue to attract UK Government funding, as they have done in the past four years? In view of industry predictions that commercially achievable tidal and wave energy projects are likely to come on stream eight to 10 years from now, will he indicate his intentions in addressing base-load need in the interim period?

Jim Mather:

On UK collaboration, the answer is yes—it is important so that we can develop and help to meet the UK targets, which would otherwise be a struggle. Let me point also to UK data that say that, in 2006, 92 per cent of the Scottish energy requirement was provided by fossil fuels, renewables and pump storage.

In essence, our future in renewables is rosy. We are seeing material investment programmes from all the major companies. The Government is laying down the right signals, which are being followed and which we intend to augment in the future. We are also seeing unprecedented interest from overseas. This very day, I am meeting companies that are beginning to look at what they can do in Scotland.

We are putting out the right signals and the investment is forthcoming. We will collaborate with anyone and everyone who will help us to meet the targets that Scotland is setting for itself on energy and stability of supply, and our commitment to climate change.


Road Equivalent Tariff (Mull and Islay)

4. Des McNulty (Clydebank and Milngavie) (Lab):

To ask the Scottish Executive on what basis it was decided that services to and from Mull and Islay should not be included in the pilot of the road equivalent tariff scheme that was recently announced by the Minister for Transport, Infrastructure and Climate Change. (S3O-2540)

The Minister for Transport, Infrastructure and Climate Change (Stewart Stevenson):

Mr Swinney announced details of the road equivalent tariff study during his visit to Stornoway on 13 August 2007. That announcement made it clear that we would carry out a study into RET in the context of ferry fares in Scotland and that the study would include a pilot exercise on one or more of the Western Isles to mainland routes.

I am pleased to say that we are able to include all the Western Isles to mainland routes in the pilot exercise as well as the Oban to Coll and Tiree service. Focusing on those routes initially will allow us to reach a view on the potential costs and benefits of the scheme and to take informed decisions on its potential impacts across other routes. Consideration will be given to the roll-out of RET across the Clyde and Hebrides and northern isles networks once the impact of RET has been evaluated.

Some of the minister's responses are beginning to resemble the justification that was provided by comical Ali during the Iraq invasion. Such things will be picked up—[Interruption.]

Order.

Des McNulty:

People in Arran and Cumbrae will be extremely annoyed that significant reductions in ferry fares will be available to others, but not to them. People in Mull and Islay will be annoyed that significant reductions will be available to others, but not to them. People in Orkney and Shetland will also—

They would probably like a question as well, Mr McNulty.

Had the Government followed Labour's approach of implementing a 40 per cent reduction in ferry fares—

Can we have a question, please.

Such a reduction would have delivered something for everyone. Why will the minister not deliver that?

Stewart Stevenson:

Perhaps we can now clearly understand why Labour has no parliamentary representatives in the Western Isles.

The median wage in the Western Isles is £55 a week less than that in Shetland. The unemployment rate is twice that in the northern isles. Over the past 20 years there has been an 18 per cent reduction in the population of the Western Isles, but other island populations have experienced relative stability. If it is not clear to the member, we are delivering equity and fairness as well as delivering on a manifesto commitment. We have done the right thing by the people of the Western Isles.

Jamie McGrigor (Highlands and Islands) (Con):

Not only the people of Mull and Islay, but the residents of Jura, Bute, Colonsay and Arran—as well as those who live in Dunoon—will miss out on the lower ferry fares. All those people would have benefited from the previous Government's manifesto plan for a 40 per cent cut in ferry fares, but after 19 October—

Can we have a question please, Mr McGrigor.

For 30 months after 19 October, only the people of the Western Isles, Coll and Tiree will benefit from lower fares. Does the minister think that that is equitable?

Stewart Stevenson:

The member should revisit some of the information that he has provided and understand it more clearly. Every user, no matter where they reside—whether their journey is for business or pleasure or for the purposes of local education or health—who travels by ferry to and from the Western Isles will benefit from the £22.5 million that will be invested in the pilot over the 30-month period starting in October.

Labour's proposed 40 per cent cut was a narrow scheme that would have been limited to residents. The key difference between the two schemes is that our pilot will be a way of bringing new people to the islands and supporting the islands' economic potential—I have already given some numbers on the median salary in the Western Isles. It is clear that there is potential to be exploited.

From the pilot, we will draw conclusions in due course for the 69 ferry routes that operate throughout Scotland. We are leading the way but we're no finished the job.

I have agreed to a request from Alasdair Allan to ask a supplementary question in Gaelic. Members will be relieved to know that he will also provide his own translation.

Alasdair Allan (Western Isles) (SNP):

Chan eil mi a' tuigsinn càit a bheil comical Ali a' tighinn a-steach.

A dh'fhaighneachd do Riaghaltas na h-Alba dè seòrsa beannachdan eaconamach a thathar an dòchas gun tig dha na h-Eileanan an Iar agus gu Colla is Tiriodh nuair a thòisicheas sgeama pìolait RET air aiseagan anns an sgìre.

I am not sure where comical Ali fits into this.

What benefits does the Scottish Government expect to come to the Western Isles, Coll and Tiree when the RET pilot begins on ferry services in the area?

Stewart Stevenson:

Tapadh leat. The member has homed in on the essential part of what we are trying to do. This is about economic development and equity. Primarily, we are creating an opportunity for tourism businesses and for the young people of the Western Isles to feel that they have a future there. We want to tackle the attrition of the islands' population, which has declined by 18 per cent in 20 years, and to give hope to the people of the Western Isles. I hope that Mr Allan will be able to convey that message to them powerfully. I believe that they will welcome it.


Scottish Enterprise (Meetings)

To ask the Scottish Executive when it last met representatives of Scottish Enterprise Lanarkshire and what issues were discussed. (S3O-2454)

The question in the Business Bulletin asks when the Scottish Executive last met representatives of Scottish Enterprise. The word "Lanarkshire" does not appear.

That is correct. I should have clarified the point.

Jim Mather:

Thank you, Presiding Officer.

The Cabinet Secretary for Finance and Sustainable Growth and I met the chair and chief executive of Scottish Enterprise on 20 February. The main topic of discussion was progress and current activity in implementing the enterprise network reforms.

Margaret Mitchell:

I thank the minister for clarifying that my question referred to Scottish Enterprise, rather than Scottish Enterprise Lanarkshire.

Is the minister aware of concerns in the medical technology sector in Lanarkshire about the fact that, over the coming months, Scottish Enterprise is due to wind down the not-for-profit organisation that was set up to encourage entrepreneurs into the medtech sector in Scotland—an arrangement that was subsequently replicated throughout Britain? Given that that will leave the Scottish medtech sector as the only such sector in the United Kingdom without a support organisation, will the minister approach Scottish Enterprise with a view to having it reconsider its decision?

Jim Mather:

The member may see an opportunity in the current climate, which is interesting. Over the past nine months, we have met an increasing number of industry sectors that have nominated their own representative bodies. That is an effective approach that now extends beyond the Scotch Whisky Association, Scottish Financial Enterprise and Scottish Engineering to the Life Sciences Alliance and the chemical sciences sector. The best approach may be for self-motivated industry sectors to come together to create representative bodies, to engage more widely and to take control of their future strategies. My most interesting experience in this area of late was when I was invited to a second event with the Life Sciences Alliance, which had taken the initiative, built its own agenda and brought that to us and to Scottish Enterprise in a consolidated way.

Jeremy Purvis (Tweeddale, Ettrick and Lauderdale) (LD):

Will the minister give my constituents the courtesy of replying to them? Last year, Scottish Enterprise allotted £520,000 specifically to the Borders to develop 200 new start-up businesses. Will there be a target for that in the coming year? If so, what is it?

Jim Mather:

The obsession with targets is interesting. Recently I have fallen under the spell of one John Seddon, who is bringing the Toyota approach to the public sector. If other members have not heard of that approach, I am glad to be able to broadcast it further today. Mr Seddon's view is that we should gradually wean ourselves off targets, which may create confusion and lead ingenuity to be utilised to meet targets rather than to make progress. Rather than impose further targets on areas, I am keen to work with them in order perennially to get better results—closely measured, year on year—to move matters forward.

David Whitton (Strathkelvin and Bearsden) (Lab):

I am disappointed to hear that the minister is not interested in targets, as I thought that he was interested in outcomes. Scottish Enterprise has always set targets for business growth. Perhaps when he meets Scottish Enterprise he will press it to get on with the changes that are being made to the business gateway. Far from being subject to timeous arrangements, the switchover is months behind. Perhaps Mr Swinney only puts stories in the Sunday Herald and does not read them.

The member should ask a question.

David Whitton:

The delay to the business gateway is delaying start-ups. Is there any chance at all that there will be a change of mind, and that the Kirkintilloch office in my constituency will be properly staffed instead of being just a virtual office? That is hitting the number of start-ups in my constituency.

Jim Mather:

I suggest that Mr Whitton did not properly hear my answer vis-à-vis targets and outcomes. Perhaps he should read the Official Report to get some clarity on that.

Meanwhile, in the real world, the Convention of Scottish Local Authorities and Scottish Enterprise are working together closely to achieve the results that we all want. They are working closely in dialogue and looking towards the unifying goal of increased sustainable growth to which we are all looking; seeking to be part of the one economic system; working together to increase sustainable growth; and, in the process, encouraging more businesspeople to be involved to ensure that we have a much better system that delivers infinitely better results than we have had in the past.


Clyde Fastlink

To ask the Scottish Executive what steps are being taken by ministers to progress the Clyde fastlink public transport project. (S3O-2539)

The Clyde fastlink project is being considered within the strategic transport projects review.

Pauline McNeill:

Phase 1 of the Clyde fastlink would provide a vital link between Glasgow city centre and the Scottish Exhibition and Conference Centre, which is a venue for the Commonwealth games in 2014, and which will be the location of the press and international broadcasting centre. For that reason, does the minister agree that the fastlink project should be supported financially within this spending review? Does he agree that this is not just about the Commonwealth games, but that the fastlink would be a vital link for people in my constituency who live along the north of the Clyde in new communities, and that it would link up two major hospitals, not to mention other important venues? When will money be made available for fastlink? When can we expect to hear when it will be available?

Stewart Stevenson:

We are proceeding at best pace with the strategic transport projects review that we inherited from the previous Administration. We think that that is a sound way forward. We are making progress, and we have identified a series of clusters and corridors in which we are looking at transport needs.

I expect to undertake a series of engagements with communities throughout Scotland to discuss which particular needs we should reflect in the final outcomes. I expect that to happen over the summer recess.


Sheriffhall Junction

To ask the Scottish Executive whether it will provide an update on Transport Scotland's consideration of options for improving the Sheriffhall junction. (S3O-2513)

The Minister for Transport, Infrastructure and Climate Change (Stewart Stevenson):

Transport Scotland has commissioned the consultants Atkins Ltd to investigate short and long-term improvement options for Sheriffhall. Short-term measures to optimise the performance of Sheriffhall roundabout without incurring the delay involved in publishing road orders, such as signal adjustment and localised improvements at the roundabout, are being considered. Depending on the nature of such measures, implementation will begin this summer.

Longer-term options that are identified as part of the feasibility study will be considered against other priorities in Transport Scotland's strategic transport projects review, which is under way and due to report in summer 2008.

Rhona Brankin:

Coming just a day after the minister announced that the £115 million that was earmarked for the Waverley line has disappeared, and that my constituents will wait at least five years for trains to run on the Waverley line, his answer represents a double whammy for Midlothian commuters. Not content with delaying the Waverley line through 10 months of Scottish National Party inaction, the minister is no closer to delivering much-needed improvements—

I believe that this question is about the Sheriffhall junction. The member should ask a question.

Rhona Brankin:

If the Government will not set a timetable or provide funding for the Waverley line, will it at least do something for fed-up users of the Edinburgh city bypass, stop dithering and commit to a grade-separated junction to ease congestion at a traffic black spot that was recently judged to be one of the 10 most daunting junctions in the United Kingdom?

I will confine my remarks to Sheriffhall, as the Presiding Officer instructed. Once again, I encourage Rhona Brankin to listen and to read what I have previously said. We are acting—[Interruption.]

Order.

Stewart Stevenson:

We are acting immediately to seek to make improvements that can be made rapidly. We are doing that because we recognise the need to make changes at Sheriffhall. Members would, of course, expect us to consider the long-term needs of Sheriffhall too, which we are doing. [Interruption.]

Order.

Stewart Stevenson:

The member may not have had confidence in the strategic transport projects review that the previous Administration undertook, but I am sure that the SNP Administration will take community concerns very seriously, despite the member's loose and unhelpful language.


visitscotland.com

To ask the Scottish Executive how proposed changes to visitscotland.com will affect potential visitors to Scotland. (S3O-2535)

The Minister for Enterprise, Energy and Tourism (Jim Mather):

The changes to visitscotland.com will enhance our visitors' understanding of Scotland by inspiring them and informing them about all that is on offer. Visitors will be given a choice of fast, free and direct access to the most comprehensive visitors' guide to Scotland and to a diverse and dynamic online travel shop. The aim is to attract more visitors to Scotland and for the site to act as a shop window for accommodation services and other businesses that seek to reach the international tourism market.

Lewis Macdonald:

In the light of what the minister has already said this afternoon, will he confirm his continuing support for the target of increasing tourism revenues by 50 per cent by 2015? Will he join me in commending visitscotland.com for its success in developing over the past two years a world-leading technology platform for the changes that it is making? How have visitors to Scotland and providers of tourism services been consulted on the changes? How will their experience be monitored in the future?

Jim Mather:

Of course we accept the figure that the member mentioned as a goal or target that is driving the industry and creating a great deal of enthusiasm. It is also triggering altruism in the industry, because the industry realises that enhancing the visitor experience, delivering better value and creating better career opportunities will drive the industry forward. This week, we had the opportunity to put that back to the industry. At the tourism conference, I think it was said that there was a 79 per cent acceptance rate in the industry that it was going for growth big time.

The end-user customer and the industry must be listened to. Marco Trufelli of visitscotland.com and VisitScotland conscientiously did that at our event with the industry in August and our subsequent event in November. They have delivered even to the satisfaction of some of the sceptics who were in the room at that time. There was healthy scepticism, but Marco Trufelli and visitscotland.com seem to have learned to love their sceptics and produced a result that passes muster with them.


Council Tax Freeze

To ask the Scottish Executive how many local authorities it understands have so far agreed to a freeze or cut in council tax for the coming financial year. (S3O-2468)

The Cabinet Secretary for Finance and Sustainable Growth (John Swinney):

I am delighted to give a specific answer for Labour members. I am delighted to say that all local authorities have decided to freeze or cut their council tax rates. That is good news for local taxpayers throughout Scotland and an example of how well the concordat with local authorities is working, despite all the scaremongering that there has been.

Keith Brown:

Does the cabinet secretary agree that that was a Scottish National Party manifesto commitment and that, as such, another promise has been delivered? Does he agree that, given the dire predictions of doomsayers in the Opposition parties who said that it would never happen, councils deserve credit for the achievement? Does he agree that the aim has been achieved in the most difficult year in the council cycle—the first year—when council tax rates are always increased by the greatest amount? Finally, does he agree that such a major benefit to hard-pressed council tax payers would never have happened if Gordon Brown, Ming Campbell and Tavish Scott had been successful in their squalid machinations in trying to thwart the will of the Scottish people? Those people threw out the Lib-Lab coalition that had contributed hugely to the 60 per cent increase in council tax bills since 1997.

John Swinney:

Mr Brown makes a number of very fair points. Of course we are talking about a commitment that the Government said it would deliver, and we have delivered on it comprehensively. I am delighted that Stirling Council, of its own free will, has gone a stage beyond the Government and exercised its discretion as a local authority to reduce the council tax. I pay tribute to the approach that our local authorities have taken and look forward to expressing my view personally to local authorities when I address the Convention of Scottish Local Authorities in St Andrews tomorrow.

We are going through a period in which the people of Scotland are benefiting from the radical and reforming agenda of the Government. At a time when fuel and food prices are increasing, the Government has delivered some protection to hard-pressed families in Scotland. I am sure that they appreciate that.


Economic Growth (Slowdown)

To ask the Scottish Executive what action it proposes to protect Scotland from the effects of the worldwide slowdown in economic growth. (S3O-2495)

The Cabinet Secretary for Finance and Sustainable Growth (John Swinney):

The Government's economic strategy has been developed as a long-term strategy to turn around decades of economic underperformance in Scotland and to increase sustainable economic growth. The strategy has been developed to enhance Scotland's relative competitiveness in the face of variable economic conditions globally.

At the core of our approach is a focus on the fundamentals of Scotland's economic development—on learning, skills and wellbeing; on creating a supportive business environment; on the importance of infrastructure, development and place; on effective government; and on creating greater equity so that all of Scotland can share in our increased prosperity.

Those factors have been identified by the Council of Economic Advisers as crucial to our future success. We are confident that, by focusing on all those areas, we will enhance Scotland's economic performance during any global economic slowdown and in the recovery.

Ross Finnie:

I am grateful for that lengthy response. I did not expect the cabinet secretary to emulate his colleague Mr Mather in the length of his response, but I give credit where it is due. Does the cabinet secretary agree that, although he has set a long-term strategy with those aims, in relation to the economic slowdown in the current globalised economy, the notion of having economic independence at a macro level is illusory?

John Swinney:

Mr Finnie should not be surprised at the length of my answer. In opposition, I was frequently on the receiving end of formidably long answers from Mr Finnie. However, I would not want him to think that that was revenge; it was simply a measure of the quality of answer that Mr Finnie deserves—as do all members.

Scotland cannot be insulated from global economic factors and the global economic slowdown. One of our limitations in responding to those factors is the limitation of our powers at a macro level to enhance our competitiveness. The Administration will use all the powers at its disposal to ensure that Scotland is protected from the effects of the global economic slowdown. I would be delighted to work with Mr Finnie to ensure that the Parliament has a greater range of powers, which would make us stronger in tackling those difficulties in the period ahead. I am sure that, on this and on many other issues, we will be able to find common ground with Mr Finnie and his Liberal Democrat colleagues.


Offenders (Rehabilitation)

To ask the Scottish Executive whether any funding, over and above that in the Cabinet Secretary for Justice's budget, will be allocated to deliver the rehabilitation of offenders. (S3O-2532)

The Cabinet Secretary for Finance and Sustainable Growth (John Swinney):

In the spending review 2007 allocations, as set out in the draft budget for 2008-09, the main tranche of funding for dealing with the rehabilitation of offenders was included as part of the concordat-based local government finance settlement. The criminal justice social work element of that funding amounts to £86.45 million per annum for 2008-09 through to 2010-11. That is detailed in annex K to finance circular 6/2007, which was issued on 13 December 2007.

Paul Martin:

Many of the budget headings have been amplified by the Cabinet Secretary for Justice on a number of occasions. Will the cabinet secretary clarify that audits will be done to ensure that whatever investment is made in the system will have the effects that the Government said it will have?

John Swinney:

Mr Martin is aware, from the spending review document that was published in November, that the Government has established a performance framework to measure the effectiveness of Government policy in reaching several national outcomes that will determine our progress in improving the quality of life of people in Scotland. The spending review document contains 45 performance indicators to measure specific elements of our progress, which the Government considers to be material in achieving improvements in the quality of life of our citizens. That information will be regularly and publicly made available and the Government's effectiveness will be scrutinised.

For wider audit issues in relation to public expenditure, the familiar assessments that are undertaken by Audit Scotland and other organisations will continue as the Government has set out.