Meeting of the Parliament

Meeting date: Wednesday, March 6, 2013

Official Report 807KB pdf

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Portfolio Question Time

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Finance, Employment and Sustainable Growth

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Companies (Growth and New Markets)

1. To ask the Scottish Government what assistance is available to help companies grow and identify new markets. (S4O-01862)

Sustainable economic growth is the Scottish Government’s key objective and is delivered through a strategy of promoting and supporting growth companies in growth sectors and growth markets.

The firm Elmwood employs 102 workers in my region in the design, manufacture and fitting of various products, and includes a museum fit-out division. It informs me that despite a strong performance throughout the United Kingdom, further expansion depends on being able to promote its high-end products on the world stage, which means attending global conferences and expos.

Will the minister consider what incentives might be available from Government or Scottish Development International to support Elmwood in such ventures throughout the world? Will he consider visiting Elmwood with me to see the fine work that it does?

Yes, I would be happy to take up the member on his invitation and praise the company for its success thus far.

In relation to Elmwood’s ambitions for exporting, we will ensure that it receives the excellent support of the enterprise network, which helps companies precisely in the way that Bob Doris has identified, for example by assisting trade missions. Thereanent, I am looking forward to leading a trade mission of 29 oil and gas companies to Brazil, which departs Scotland on Sunday.

Does the minister agree that the findings of the latest global connections survey, which showed that Scottish exports increased by £1.6 billion to £23.9 billion in 2010-11, is evidence that the efforts of the Scottish Government, SDI, Scottish Enterprise and Highlands and Islands Enterprise to promote Scottish goods and services are paying off?

Yes, I agree. I have seen at first hand the commitment and abilities of the staff of our enterprise network, who are working to make a terrific success of our aspirations for companies to grow.

We have set an ambitious target of achieving a 50 per cent increase in exports by 2017. I hope that that will be achieved. If it is, it will be by sectors in oil and gas, renewables, chemical science, and food and drink. It seems that even in a recession—or perhaps because of it—the world cannot drink enough whisky.

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Aberdeen Western Peripheral Route (Funding)

2. To ask the Scottish Government what recent discussions the Cabinet Secretary for Finance, Employment and Sustainable Growth has had with the Cabinet Secretary for Infrastructure, Investment and Cities on the funding arrangements for the Aberdeen western peripheral route. (S4O-01863)

The Aberdeen western peripheral route Balmedie to Tipperty scheme is now in procurement and the funding arrangements are a matter of on-going consideration among ministers and officials throughout the Scottish Government.

In those discussions with the Cabinet Secretary for Infrastructure, Investment and Cities, I am sure that the importance of speedy progress on this much delayed scheme was high on the agenda. To aid progress, local authorities have indicated that they are prepared to pay up front their share of the costs of the AWPR. Given that the Government’s funding is to be through non-profit distribution, will the cabinet secretary reassure us that the Scottish Government is on track to secure the private sector funding that it is to lever in? Can he confirm that the Haudagain roundabout is also still part of the procurement exercise?

It has been made clear that the work on the Haudagain roundabout will be undertaken once the work on the Aberdeen western peripheral route is completed. That represents no change to the current arrangements.

On the pursuit of NPD funding, as I said in my original answer, the scheme is now in procurement and the funding arrangements are being pursued. We will take the project forward because we are as dissatisfied as anybody else with the length of time that it has taken to get the project out of the authorisation mechanisms and into procurement.

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United Kingdom Credit Rating

3. To ask the Scottish Government what discussions it has had with the UK Government since its credit rating was downgraded from AAA to AA1 regarding any impact on the Scottish economy. (S4O-01864)

The decision to downgrade the United Kingdom’s credit rating confirms the failure of the UK Government’s economic strategy. We have on many occasions warned that the UK Government’s approach and the pace of implementation of austerity are undermining the recovery, and evidence has become ever clearer to support that view.

Shortly, I will write to the Chancellor of the Exchequer ahead of his budget statement later this month and will urge him to deliver a budget that boosts real investment in our economy.

Last week, the Tory finance spokesperson told us that the downgrade would not affect the markets and had not affected the markets. We ken better noo. Sterling has fallen by 7 per cent against both the dollar and the euro in the past week and is now the weakest major currency. That means more expensive imports—

Yes, but can we have a question, Mr Brodie?

Does the cabinet secretary agree that the UK Government’s austerity policies have lost all credibility and that the sooner we have our hands on the levers of economic power, the better?

As I said in my original answer to Mr Brodie, the downgrading of the UK’s credit rating is indicative of the failure of the UK Government’s economic strategy. We predicted the sequence of events if the UK Government placed too much emphasis on the pursuit of austerity and not enough on supporting growth—that is perhaps best illustrated by the reduction in our capital budget by 26 per cent—and Moody’s has clearly highlighted the lack of growth that has become apparent. I urge the United Kingdom Government to pay heed to that judgment and to take a different course in the budget on 20 March.

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Scotland Excel (Meetings)

4. To ask the Scottish Government when it last met Scotland Excel and what matters were discussed. (S4O-01865)

Scottish Government officials regularly meet Scotland Excel to discuss a range of matters in relation to public procurement. Earlier today, I attended a meeting of ministers, officials and local government representatives including Scotland Excel to discuss the standards and processes that are in place for school meals and local authority procurement of food and drink. In fact, I left the meeting to attend portfolio questions.

I do apologise to the minister for dragging him away to answer questions in Parliament.

Was the principle of the traceability of livestock, which consumers now expect, recognised at that meeting? Parents, pupils and teachers now expect the contents of school dinners to be traceable. If the minister and the Government accept that principle, does that mean that procurement policy through Scotland Excel will change and move forward to achieve that?

I am sure that the whole Parliament will benefit from the joint statement that will be released at the conclusion of today’s joint meeting with local government, at which two cabinet secretaries are present. I assure the Parliament that a great deal of intensive work is being done on the subject in partnership with Scotland Excel.

The member will know that a number of tests are being done at present, and work is being done in partnership with agencies to ensure that quality is in place and that we can have confidence in the food supply. Scotland Excel has encouraged local authorities to adopt a precautionary approach at this time while it looks at both procurement practices and standards in school meals.

I refer all members to the statement that will be released at the conclusion of the meeting on the next steps in relation to this serious issue.

How will the procurement reform bill increase the Scottish Government’s efforts to support both sustainable procurement and fair trading in the public sector?

I do not wish to pre-empt the bill, but it will present an opportunity to Parliament and those who are engaged in public sector procurement to consider social, environmental and economic benefits in future procurement—some £9 billion-worth of procurement.

At the moment, the partnership that exists for procurement in the public sector, particularly in local authorities—whether councils are part of Scotland Excel and whether they adopt contracts—is voluntary. Of course, councils have the latitude to buy local within the parameters that are outlined in Excel, so some of the good work that exists in current procurement can be emulated. However, the bill could present further opportunities to include greater consideration of ethical and other benefits as part of the formal procurement process.

What provisions are there at present within the Scotland Excel guidelines to encourage local, fresh and fairtrade food procurement? The Scotland Excel website highlights that it shares best procurement practice.

I reassure the member that a range of working guidance encourages local procurement. There is a myth that Excel deals only with national procurement, but there is provision to purchase and supply food and drink locally and for that to be included in contracts and specifications. Indeed, suppliers can provide on an authority to authority basis, rather than on a national basis.

In terms of specific guidelines, there is strong quality assurance through nutritional requirements, the work of inspectors and a food for life catering mark initiative. A lot of progress has been made on the hungry for success initiative as well as on our work in partnership with the Soil Association.

Across that range of activities, the emphasis is on trying to buy local as much as possible and on buying the best-quality produce. Those are factors within the current procurement process and we will continue to encourage them through the guidance that we produce.

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National Performance Framework

5. To ask the Scottish Government what progress the national performance framework has made in reducing inequality. (S4O-01866)

The national performance framework describes the kind of Scotland that we want to see and how our actions will improve the quality of life for the people of Scotland. That commitment is reinforced by a specific national outcome defining success as reaching a point at which

“We have tackled the significant inequalities in Scottish society.”

Progress towards the achievement of the outcomes and of the Government’s purpose is assessed through a set of diverse indicators. We publish that material in an impartial and transparent way on the Scotland Performs website.

I thank the cabinet secretary for his answer. Does he agree that the ambition for a fairer, more equal society is a priority for an independent Scotland and that evidence of how we can achieve that is crucial?

Minister? Sorry, cabinet secretary?

Yes. The steps that we have taken through the national performance framework have been designed to establish an approach across Government—across all areas of the public sector—whereby we draw together under some common themes the steps that we can take to improve the quality of life for people in Scotland.

I was heartened by Professor Joseph Stiglitz’s assessment of the national performance framework in his contribution to the Economy, Energy and Tourism Committee meeting last week—especially given Professor Stiglitz’s strong presence and profile on the question of tackling inequality within the global community. I assure Jean Urquhart that such thinking will be at the heart of the Scottish Government’s approach and it is certainly at the heart of the opportunities that are presented by Scottish independence.

The cabinet secretary has pre-empted my question. In light of Professor Stiglitz’s evidence to the Economy, Energy and Tourism Committee and his positive comments about the national performance framework, what action has the cabinet secretary taken—or does he envisage taking?

First, I record my appreciation to Professor Stiglitz for his assessment of the national performance framework. Over some months, we have been involved in a discussion about how we can develop and enhance awareness of the national performance framework and the effect that it has on policy making.

Kenneth Macintosh led a debate in Parliament on related themes. I made a contribution to that debate that highlighted the Government’s interest in pursuing the issue. Subsequently, I met Claudia Beamish on related areas. I have agreed to convene an all-party discussion on how to take forward the national performance framework with external stakeholders, recognising that that has a constructive contribution to make to development of the Government’s policy agenda and, crucially, to the interaction that Parliament might wish to have with the Government on achievement of the Government’s policies and assessment of those within the national performance framework. I am grateful to colleagues from across the parliamentary spectrum who have indicated their willingness to participate in that discussion.

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Offshore Wind

6. To ask the Scottish Government what contribution Scotland’s offshore wind resources will make to meeting European Union renewable energy targets. (S4O-01867)

With over one quarter of the European offshore wind resource, Scotland is ideally placed to make a significant contribution to the European Union target of generating 20 per cent of its energy from renewable sources by 2020.

Does Fergus Ewing acknowledge that it is because Aberdeen has the highest concentration of offshore energy expertise anywhere in Europe that the EU wants to invest in a wind energy deployment centre in Aberdeen bay? Does he agree that it is important to send out the right signals about the priority that Scotland gives to further development of offshore wind technologies?

As Lewis Macdonald will be aware, Scottish ministers must refrain from commenting on live applications: it would not be appropriate for me to make specific comment on any application that is before us.

However, to answer the question in a general sense, it is absolutely correct that Aberdeen possesses expertise in oil and gas, some of which can be transferred to assist in developments in the offshore wind sector. That knowledge, together with knowledge from the fishing industry about how to operate in the cruel seas around Scotland’s waters, is an essential ingredient for the success of the offshore industry. Lewis Macdonald’s point is well made.

Are the uncertainties and delays in the UK Government’s energy market reform impeding progress in our meeting the renewable energy targets?

We are extremely concerned about what is, in effect, an investment hiatus, because there are simply no rules for the post-2017 future incentivisation of renewable energy, and of offshore wind in particular. We therefore urge the UK Government to end the uncertainty and to provide answers on EMR as quickly as possible, otherwise—the industry has warned—we risk leaking investment to Germany and France, and we risk jeopardising an industry that could contribute a great deal to Scotland and the rest of the UK.

A report by Cambridge Econometrics says that the success of offshore wind by 2030 could add nearly 1 per cent to United Kingdom gross domestic product. That is what is at stake. Therefore, we are working with the UK Government to end the uncertainty as quickly as possible.

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Severance Payments (Public Sector)

7. To ask the Scottish Government how much it has spent on public sector severance payments in the last five years. (S4O-01868)

In a period of unprecedented financial restraint, the Scottish Government is taking action to reduce costs and improve efficiency. As part of the efficiency drive, we are committed to reducing our headcount through an on-going programme of voluntary early exit.

In the five years to the end of March 2012, the core Scottish Government has spent £58.7 million on voluntary early-exit payments, which are estimated to deliver savings of around £99 million a year. Throughout that period, the Scottish Government’s no compulsory redundancy policy has provided certainty to public sector workers. We remain committed to protecting public sector employment as far as we can within the resources that are available to us.

A freedom of information response from Renfrewshire Council shows that, as a result of budget cuts of around £30 million between 2008 and 2012, Derek Mackay, who was then leader of the council and is now local government minister, spent more than £39 million on exit packages—

That is a matter for Renfrewshire Council, not for the cabinet secretary. Can you come to a focused point, please?

One hundred and twenty-eight staff members received half of that £38 million. At a time of swingeing cuts, transport charges being brought in for adults with disabilities, teachers losing their jobs and directors’ pay increasing, is this—

Order. That is not a matter for the cabinet secretary. Can you resume your seat, Ms Fee? We move to question 8.

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Oil and Gas Reserves

8. To ask the Scottish Government what recent assessment it has made of the reserves of oil and gas remaining in Scottish waters. (S4O-01869)

Oil and Gas UK estimates that up to 24,000 million barrels of oil equivalent have still to be recovered. Those reserves have a potential wholesale value of up to £1.5 trillion—£1.5 million million. That implies that, by value, more than half the reserves in the United Kingdom continental shelf have still to be extracted.

Furthermore, the latest Oil and Gas UK activity survey reports record levels of North Sea investment. In 2012, investment was worth £11.4 billion, which was the highest level for 30 years. Total investment in companies’ plans is now estimated to be worth almost £100 billion—that is £100,000 million. Oil and gas will therefore remain an enormous economic resource for several decades to come.

Fergus Ewing will be well aware of the McCrone report, which showed that the Labour Government in the 1970s deliberately lied to the Scottish people about the extent of our oil and gas wealth. How confident is he, as we approach next year’s independence referendum, that the better together campaign will refrain from talking down the extent of our oil and gas resources and how those resources could help to transform an independent Scotland into a more prosperous and equal society?

I would not be overwhelmed with confidence in that respect. However, as energy minister, my part is to work productively to assist businesses and individuals in Scotland—especially in Aberdeen—to achieve enormous success. They are truly world leading and world beating in many areas, such as subsea work, reservoir management and project management. They are running projects throughout the world, thanks to their expertise.

What we need is for the UK Government to address the very serious problems—for example, the ageing infrastructure—that could, according to the analysis that has been submitted to PILOT by Jonathan Roger of Centrica Energy, if they are not addressed cost £85,000 million of lost tax revenue. Those are the serious issues that we need to address and the Scottish Government is, for its part, determined to give those matters the consideration that they deserve.

Was the cabinet secretary present at the recent meeting of the Scottish Cabinet at which John Swinney presented a paper on the finances of independence, which has miraculously found its way into the hands of the better together campaign? On the subject of oil and gas revenues, does he agree with the following statement from Mr Swinney:

“This high level of volatility creates considerable uncertainty in projecting forward Scotland’s fiscal position”?

I suppose that I should be complimented that I have been promoted to the post of cabinet secretary. However, that is a post that I do not hold, so I do not attend Cabinet meetings. Therefore, the question, albeit that it is somewhat contrived, is hypothetical. Be that as it may.

Every minister in the Scottish Government recognises the terrific success of the oil and gas industry. That is the serious point that is before us. Moreover, we need to spell out the facts to the public—they do not want the political spin, if I may gently say that to Mr Macintosh.

I quoted John Swinney’s paper. [Interruption.]

Order.

The public want the facts, even if the Labour Party is not particularly interested in them—as we have seen to be the case on previous occasions.

To conclude the point, the facts are that around one half of all the earnings that are made in the oil and gas sector in Scotland are made through exports. That is because we are not simply extracting oil from the waters off our own shores but are exporting our expertise throughout the world. Wherever oil is discovered, Scottish men and women will be found at the forefront of that industry. That fact must be better appreciated in Scotland in order to build up the confidence in our nation.

What estimate can the minister make of the production and economic potential of Scotland’s unconventional gas industry, which is based onshore? What actions can his Government take to ensure that the tremendous wealth and expertise that is based in the north-east of Scotland can spread across Scotland to the advantage of our whole economy?

I am not sure how relevant that is to the primary question, but I am happy to answer.

As I think Alex Johnstone is aware, we pursue an evidence-based approach in relation to unconventionals. Before we proceed, we want to see the evidence on potential environmental impacts and other matters, and we want to work with local authorities, the Scottish Environment Protection Agency and the United Kingdom Government. That is exactly what we are doing, and that is the right approach.

I say with respect to Alex Johnstone that it might, because there is no unconventional gas mining in Scotland at present, be a little more productive to focus on the real live issues that face us now. For example, if over the lifetime of projects we extract 1 per cent more oil and gas from the fields off our shores, the gain to the taxpayer will be £22,000 million. The oil and gas industry is achieving great success and is maximising recovery, which is the centre of our oil and gas strategy. We are delighted that the UK Government is finally, after we produced our oil and gas strategy last May, getting round to producing its own strategy. What a shame that it is nearly four decades too late.

I recall Donald Dewar at The Scotsman’s great debate in 1992 saying that there was no guarantee that oil would stay above $12 per barrel. Given Scotland’s considerable reserves of oil and gas in the North Sea and the Atlantic and our significant renewable energy potential, does the minister agree that, provided that we can properly harness those resources, Scotland is set for a prosperous future?

Yes, I do. Perhaps if the UK had pursued the approach that Norway has pursued, which was to set up an oil fund—I believe that Norway’s fund is of the order of £300 billion—the resource would not have been squandered in the 1980s, the 1990s and the noughties. If Tory and Labour Governments at Westminster had taken that sensible and prudent fiscal approach, perhaps things would be in a better state now.

However, next year, we will have the opportunity, in the hands of our own nation, to determine to make the decisions for ourselves and to run our own affairs. We have the opportunity to determine whether our children and grandchildren receive the benefits of the enormous assets off the shores of this country and to make an investment for the future, rather than squander those assets, as has happened over the past four decades.

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Strategic Forum (Savings)

9. To ask the Scottish Government what savings the strategic forum will achieve in 2012-13. (S4O-01870)

In the spending review, we challenged the strategic forum partners to achieve savings of £20 million in 2012-13. In the spring budget revisions, adjustments totalling £15 million were made to the partners’ budgets to reflect the savings that are required. The balance is currently being treated as a pressure on the overall budget. The partners have been pursuing a number of initiatives that are designed to achieve the savings in their budgets in a way that minimises the impact on front-line expenditure. The savings will count towards the efficiency savings of at least 3 per cent per annum that we have made clear we expect all public bodies to deliver during the spending review period.

What does that do to the three-year figure for the strategic forum over the spending review period? I understand that the figure was meant to be £85 million over three years, but what will the saving now be?

The only change to the position is the one that I referred to in my initial answer: we are treating £5 million of the projected savings from the strategic forum partners as a corporate pressure on the Government’s budget. The figures for the remainder of the spending review remain as set out when I announced the spending review.

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Rolls-Royce (East Kilbride)

10. To ask the Scottish Government what assistance it is giving to the task force set up by South Lanarkshire Council in relation to the proposed closure of the Rolls-Royce plant in East Kilbride. (S4O-01871)

The Scottish Government is represented on the task force by officials from Scottish Enterprise and Skills Development Scotland, who are contributing to the development of an East Kilbride action plan, which is aimed at encouraging future business opportunities. The Scottish Government is, through Scottish Enterprise and with partners, supporting the action plan by funding resources for its development. A member of staff from Scottish Enterprise has now been assigned to project manage development of the plan, which will sit in the council’s economic development strategy for the wider South Lanarkshire economy.

I ask that the cabinet secretary recognise the importance of East Kilbride within South Lanarkshire and the west of Scotland as Scotland’s largest town and a prime business location. Will he ensure that appropriate assistance is given at all times to the town to promote innovative responses to major employment losses?

I am happy to give Linda Fabiani that assurance. The Government acknowledges the significant role that East Kilbride has played in the development of innovative technologies and of a strong and continuing manufacturing base. I assure Linda Fabiani that services such as the Scottish manufacturing advisory service would be available to relevant companies in the locality to assist in developing their capability to ensure that East Kilbride continues its reputation as a significant economic player and centre of manufacturing activity.

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Currency Union

11. To ask the Scottish Government what discussions it has had with the United Kingdom Government regarding a currency union between an independent Scotland and the rest of the UK. (S4O-01872)

The Scottish Government has proposed discussions with the UK Government to explore a joint approach to issues to be resolved after the referendum in line with the Electoral Commission’s clear recommendation and within the spirit of the Edinburgh agreement.

The fiscal commission has published a set of proposals to deliver a stable and robust macroeconomic framework post independence, including a formal monetary union. We look forward to the UK Government agreeing to discuss the proposed set-up of a formal monetary union and other matters of importance for the people of Scotland as they prepare for their decision in the referendum.

Investment in the oil and gas sector is at its highest for 30 years and the sector contributes upwards of £40 billion to the strength of the pound, with more than £1 trillion-worth of oil and gas still to be extracted. Does the cabinet secretary therefore agree that the UK Government should acknowledge that a currency union with Scotland is beneficial to the UK as well as to Scotland and that it is time that Scotland saw more of that benefit? Bizarrely, the no campaign argues that having access to billions of pounds of oil tax revenue is somehow a bad thing for Scotland but a good thing for Westminster.

I assure Maureen Watt that the Government is giving clear consideration to the output of the fiscal commission, which made it clear in its report that there are advantages for the rest of the United Kingdom not only from the contribution of oil and gas to the strength of sterling but from the continuation of Scotland as a key trading partner, which strengthens the arguments for the attractiveness of a currency union.

An independent Scotland would be uniquely placed to benefit fully from the strengths of its own economy and to invest to secure its continued success for future generations. Maureen Watt makes a point about the use of oil and gas resources. Those who are opposed to Scottish independence seem to have some difficulty in believing that that resource, which is clearly attributed to Scotland, should be used in the interests of, and to the benefit of, the people of this country.

Does the cabinet secretary not acknowledge that we already have a currency union, that we have had one for 300 years and that the only threat to that currency union is from his party?

The problem for Mr Macdonald is that all the decisions about the use of any fiscal flexibility are taken by the United Kingdom Government. If he is prepared to leave all that decision making to a Government that the people of Scotland did not choose and which imposes its agenda on Scotland—whether the squandering of our oil and gas resources or the disgraceful benefit reform agenda that the UK Government is implementing—that is up to him, but we have a different agenda for where we want to take our country in the years to come.

For a moment, I thought that Maureen Watt had been converted to the case for the United Kingdom. Should Mr Swinney not just recognise that, under his proposals for the currency, Scotland would have less influence, not more?

I suspect that that question is why Mr Rennie is sitting over there as a lonely wee soul this afternoon.

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Public Art (Investment)

12. To ask the Scottish Government whether the Cabinet Secretary for Finance, Employment and Sustainable Growth supports investment in large-scale public art projects as a means of generating jobs and boosting economic growth. (S4O-01873)

The Scottish Government supports investment in large-scale public art projects through grant funding to Creative Scotland, which is Scotland’s national agency for the arts, screen and creative industries. Creative Scotland aims to encourage high-quality public art projects that contribute to successful places, build new audiences and extend the diversity of public art practice.

The cabinet secretary will be aware of the star of Caledonia, a world-class landmark that has been designed by Cecil Balmand and Charles Jencks to mark the border between England and Scotland. Does he agree that the star could stimulate sustainable economic growth throughout the nation as an iconic gateway to Scotland, and that it could stimulate the economic growth of Dumfriesshire?

Joan McAlpine makes a strong and valid point. The developments are exciting and imaginative. As we have seen from our own investment in the cultural facilities of Scotland, once they are supported financially and programmes such as the refurbishment of the national museum of Scotland take their course, they attract significant numbers of visitors and have a beneficial economic impact. I am quite sure that the star of Caledonia venture in Dumfries and Galloway has all that potential into the bargain.

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Local Government (Constitutional Protection)

13. To ask the Scottish Government what engagement it has had with the Convention of Scottish Local Authorities in relation to constitutional protection for local government in an independent Scotland. (S4O-01874)

The Scottish Government engages regularly with COSLA and other key partners and stakeholders ahead of a constitutional platform being developed.

The minister will be aware of the recent comments of COSLA president David O’Neill about constitutional protection for local government. Does the minister agree that that appears to indicate that some in the Labour movement are opening their eyes to the opportunities that independence will bring? Would it not be better if the Labour Party helped to inform the debate by setting out its stall to show what it would do with the powers of an independent Scotland?

The question is about COSLA, cabinet secretary—I am sorry, minister.

It looks as though I am not the only minister who has had a promotion this afternoon.

In line with the Electoral Commission’s call for both sides of the independence campaign to set out the process following the referendum, the Scottish Government has published a number of papers, including the paper outlining the transition to independence, the fiscal commission working group’s considerations, and a discussion paper about streamlining and strengthening economic and competition regulation. Those papers are helpful to the debate. I am glad that some people in the Labour Party are now recognising the opportunities that will be provided by a yes vote, and I look forward to their being joined by other members of the Labour Party in the forthcoming debate.

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Employment Opportunities (Older People)

14. To ask the Scottish Government what it is doing to improve employment opportunities for older people. (S4O-01875)

This time we will hear from the proper cabinet secretary.

From April, we will introduce a new employability fund that is aimed at further supporting local areas to provide targeted interventions for those who are out of work. Through Skills Development Scotland, the fund will deliver 17,100 individual training opportunities in 2013-14. As with the current training for work programme, the fund will be open to people who are aged 18 and over. To date, £64.6 million of European social fund grant has been allocated in priority 5 towards projects that are worth £168 million, of which £32.3 million has been allocated to six community planning partnerships in some of the most deprived areas of Scotland, and almost £3 million has gone to projects being delivered in Fife.

ESF projects address the challenge to improve the skills of the unemployed, the lowest paid and the socially deprived, while contributing to Scotland’s future economic growth. Since the start of 2007, more than half of those who accessed ESF employability support across Scotland have been over the age of 25.

Time is tight this afternoon, so I would appreciate a brief question, Mr Campbell, and a brief answer, cabinet secretary.

I acknowledge the Government’s efforts to help younger people into work. What opportunities are there for the exchange of knowledge and skills between older workers and young people?

Many such opportunities will be contained in the training for work interventions that I have set out. As we discussed in yesterday’s debate on the changing demographic pattern in Scotland, older people can play a strong and vibrant role in Scotland’s labour market, and the Government will do all in its power to encourage the fulfilment of that potential.