Finance, Employment and Sustainable Growth
Question 1, from Ken Macintosh, has not been lodged. The member has provided me with an explanation.
Jobs
The Scottish Government welcomes the news that April’s Bank of Scotland barometer showed the strongest monthly improvement since May 2011, with Scotland once again outperforming the United Kingdom as a whole.
The cabinet secretary will be aware that figures were published in the Reed job index yesterday that show a 5 per cent rise in the number of new job vacancies in May compared with the previous month, and a 17 per cent rise compared with the figures for May 2011. Does he agree that, although those signs are positive, if we are to keep the momentum going, we need an injection of capital investment in key shovel-ready projects across Scotland?
I certainly welcome the different signs of improvement in the labour market, which is a substantial indicator of the progress that has been made in Scotland. However, as I set out to Parliament in last week’s debate on the euro zone, we must be mindful of the issues—principally, those that arise from the euro zone—that could undermine our economic performance. The obligation on Governments is to maximise the effective capital investment programmes that can be implemented, which is why we, as the Administration, have shifted revenue into capital funds and why, in a number of other areas, we have taken decisions, such as that on the non-profit distributing model, to support capital investment. It is also why a number of commentators argue, as we do, for increased capital investment. I encourage the UK Government to act on those points.
The survey to which Mr Lyle referred shows an improvement in the job vacancy position in the whole UK, not just in Scotland. Mr Swinney is a fair-minded person, so I am sure that he will be happy to acknowledge that the improving prospect across the UK must be down to, at least in part, the efforts of the UK coalition Government to improve the economy.
Just say yes.
I will never give an answer that was scripted by Mary Scanlon, I can tell Parliament that. That will be the last thing I will ever do.
Council Tax Exemption (Students)
The Scottish Government will propose legislation to extend the council tax exemption for students, as set out in our manifesto. Ministers consider the current council tax system to be unfair and intend to consult others on proposals to replace it as a whole with a fairer local tax later in the parliamentary session.
I reiterate the importance of that interim step for students such as those in my constituency who have contacted me through Edinburgh University Students Association because they are appalled by the grey area that they fall into. Does the minister share my view of the importance of that step?
Yes, I do. Whatever we do in relation to the issue, we must handle it carefully. It is important that council tax exemptions and their definition do not affect other welfare benefits to which students may be entitled.
Local Government Taxation
The current council tax system is unfair and the Scottish Government will consult others later in this parliamentary session to produce a fairer local tax that is based on the ability to pay. Business rates will be reviewed over the summer.
Does the minister accept that, with no prospect of a local government taxation change and a freeze on council tax, we will inevitably see a further decline in public services over the present Government’s term?
No, I do not accept that proposition. The council tax freeze has been fully funded and has been a great relief to many households in Scotland. The financial package that ensured that the council tax freeze was in place was agreed by all parties in Scottish local government through the Convention of Scottish Local Authorities. The council tax freeze is fully funded and sustainable, and it is a great relief to households across the country.
Can the minister outline the benefits of the council tax freeze to the average household in Scotland and tell us how the position compares with that under the previous Scottish Executive’s tax regime?
The average band D household will have benefited from a cumulative saving of around £487 over the period of the council tax freeze, between 2008 and 2013. That compares with an increase in the average band D council tax of £441—an increase of 62.4 per cent—between 1996-97 and 2007-08.
Unemployment (Glasgow)
The Scottish Government engages regularly with Glasgow City Council on the varied employability initiatives of the Glasgow works partnership. That includes two recent meetings to discuss the use of the extra £3.4 million that Glasgow was allocated to help to tackle youth unemployment.
I am delighted to hear that there are positive discussions between the Scottish Government and Glasgow City Council. Does the cabinet secretary agree that the council should seriously consider making strategic use of its pension fund to boost employment opportunities in the city?
There is an opportunity for long-term pension funds to be used to support investment in economic infrastructure. In the past, that has been a relatively underutilised element of support for public infrastructure. The city council is actively exploring that option, and I encourage it and other local authorities to pursue that initiative as a way of utilising significant resources that can assist economic recovery. There is an opportunity for public authorities to play an increasing part in that activity, and I encourage them to take it.
Employment Initiatives (Central Scotland)
The Scottish Government is supporting a range of employment initiatives in Central Scotland. For example, North and South Lanarkshire councils have been allocated around £1.8 million and £1.4 million respectively to support their efforts to get more young people into employment. Community planning partnerships in Central Scotland have received nearly £6.7 million from the current round of European funding towards programmes that will help a range of people to access employment. In addition, between April 2011 and March 2012, companies in Central Scotland accepted offers of regional selective assistance to the value of £7 million, which will create or safeguard 616 jobs in the region. Central Scotland will also benefit from our continuation of community jobs Scotland and our on-going commitment to deliver 25,000 modern apprenticeship starts in each year of the parliamentary session.
Youth unemployment is constantly in the news, and we know that tackling it is high on the Scottish Government’s agenda. I welcome the cabinet secretary’s comments on the initiatives that he mentioned, but will he expand on what initiatives are available to older constituents who are unemployed?
A great deal of activity is taken forward as part of the work programme from the Department for Work and Pensions. I am sure that Mr Wilson has heard ministers say that we have actively discussed with United Kingdom Government ministers the importance of ensuring that there is no duplication of activity in our programmes. We are therefore allowing the DWP programme to take its course in supporting back into employment people who have been out of work for a longer period, and we do not attempt to operate in that area.
The cabinet secretary will be aware that the number of young people in Scotland who are long-term unemployed has quadrupled in the past year. What is the Government doing specifically to address long-term youth unemployment?
The work that the Government is taking forward on support for young people is captured in the various initiatives that have been set out. The Minister for Youth Employment has set out on at least a couple of occasions since her appointment in December a number of different elements in the programme that are supporting young people to get into employment.
Business Support (West of Scotland)
Such assistance is delivered by the enterprise network and the business gateway, with support from business representative bodies and voluntary organisations. In addition, initiatives such as Entrepreneurial Spark support growth businesses. The Cabinet Secretary for Finance, Employment and Sustainable Growth officially opened the Entrepreneurial Spark facility in Tom Hunter’s premises in Dundonald earlier today.
The minister will be aware of the Economy, Energy and Tourism Committee’s inquiry into the Scottish Government’s 2020 renewable energy targets and the wide variety of evidence that we have received so far. According to the evidence, there are parts of Scotland that are not yet fully engaged in the job opportunities that will be available in the renewables sector, particularly the offshore sector. What actions has the minister tasked public agencies to undertake to ensure that every area—particularly areas in the west of Scotland such as Inverclyde and West Dunbartonshire—can get involved in creating jobs, apprenticeships and other opportunities in renewable energy? Will he agree to meet me to discuss the matter further?
Yes. We want all parts of Scotland to benefit as far as they can. As far as the west of Scotland is concerned, the member will be aware of the major test and demonstration site at Hunterston, which is an excellent example of the benefits that are accruing to the west coast. Recently, at the all-energy conference in Aberdeen, which I attended, the First Minister announced the first national renewables infrastructure fund project, which involves a £1.3 million investment in the 53 hectare Westway industrial site and adjoining dock in Renfrewshire.
Monetary Policy Committee (Scottish Representation)
The Scottish Government has engaged in discussion with the Bank of England on a number of occasions on matters of importance to the Scottish economy. Our proposal is that, post-independence, Scotland will retain the pound, with the Bank of England as the central bank for the sterling zone. That would be in the interests of both the Scottish and UK economies.
I am afraid that the minister has evaded the question. I will make the question clear: has the minister had any discussions with the MPC about the break-up of the United Kingdom, and will he provide a public record of any exchanges that have taken place?
In my earlier answer I said to Mr Martin that we engage in discussions with the Bank of England on a number of issues of importance to the Scottish economy. That dialogue is appropriate for us to have, as a Government.
The cabinet secretary will have seen the comments of the former member of the monetary policy committee, Professor David Blanchflower, who stated that it is not unreasonable for Scotland to have a seat at that table. Will the cabinet secretary join me in welcoming those comments?
I saw Professor Blanchflower’s remarks, which also featured during today’s First Minister’s question time. They represent a very authoritative contribution to the discussions that are taking place and reinforce the substantive point, which is that it is clearly in the interests of the remainder of the United Kingdom to ensure that Scotland is able to continue to make an effective contribution to the sterling zone, not least because of the boost to the UK’s balance of payments to the tune of £32 billion, which emerges from the oil and gas industry in Scotland alone. Such points strongly reinforce the point that Professor Blanchflower made.
Subsea Sector
The subsea sector makes an immense contribution to the Scottish economy. The extraction of oil and gas contributed to nearly £12,000 million of gross value added to the Scottish economy in 2009, and related services contributed a further £2,500 million.
The minister will be aware that in my constituency of Aberdeenshire West, particularly at Westhill, there is continuing growth of small and medium-sized businesses, which denotes the confidence that they have to invest in Scotland. However, there is a skills shortage. At what stage can the Government intervene to alleviate the skills shortage in the industry?
Dennis Robertson is absolutely right. I am aware of his extensive engagement in Westhill in his constituency. The Scottish Government has committed to the funding of 500 modern apprenticeships in energy and climate change each year, half in the oil and gas sector. Last year, the First Minister announced new investment of £2 million to support an additional 1,000 flexible training places.
Beecroft Report
The UK Government is taking forward a wide-ranging review of employment law. Official-level exchanges have confirmed that the Beecroft report was commissioned to contribute to that on-going work and that not all its recommendations are expected to be adopted.
I thank the minister for his response but hope to get a more unequivocal response from him on some of the concerns that I think are shared across the chamber. In particular, when I raised the issue with the First Minister in November of last year, he indicated that he shared many of my concerns and said that the Scottish Government would respond shortly. If the minister expresses this Parliament’s concerns directly to the UK Government, I ask that he share that with us. Can he assure the Parliament that a dialogue is taking place not only between officials but at ministerial level?
I am struggling to work out which part of my answer was equivocal. It was a perfectly clear, direct answer to the question, which was about discussions. There was no lack of clarity in my response. We are, of course, extremely concerned that employers and employees should be treated fairly and appropriately. We have made known to the UK Government our views on a number of aspects of the report. However, as I said, we understand that some of the proposals are not expected to be adopted.
Gross Domestic Product (Measures)
This Government is leading the way in measuring more than just gross domestic product. The national performance framework describes the kind of Scotland that we want and how our actions will improve the quality of life for the people of Scotland.
The cabinet secretary will know that a range of civic society organisations have recently requested a more expansive version of the indicators that he mentions, which I am sure will be helpful in moving us forward. How will indicators that take into account issues outside the market and the need to live within our environmental limits sit with GDP and fit in with the national performance framework?
I am very familiar with the work that Claudia Beamish cites, which comes from a number of non-governmental organisations and other civic organisations. I respect the work that they have put into the matter. There is extensive international commentary around many of the issues.
Scottish Enterprise (Meetings)
Ministers and officials meet representatives of Scottish Enterprise regularly to discuss a range of issues that are important to the delivery of the Scottish Government’s purpose.
Has the cabinet secretary had talks with Scottish Enterprise about the effects of the Local Government Finance (Unoccupied Properties etc) (Scotland) Bill on Maxim park, the superb office-block space in Lanarkshire that the First Minister opened in 2009? Despite active marketing, it is only 5 per cent occupied—rising soon to 15 per cent with the relocation of the Scottish Environment Protection Agency. Can the cabinet secretary provide the annual cost of the additional business rates that Scottish Enterprise will pay as a result of the bill? My colleague Gavin Brown requested that figure on 24 May.
I cannot give Margaret Mitchell a definitive answer to the point about Maxim park today, but I will be happy to answer the question. If the Parliament enacts the Government’s proposals through the legislative process, the position that will emerge in Scotland will still be more competitive for and more beneficial to businesses than the position south of the border.
Will the cabinet secretary join me in congratulating Scottish Enterprise’s energy team on its work on Scotland’s oil and gas strategy and the successful launch of that strategy at Hydrasun’s premises in my constituency last month? Does he agree that the oil and gas sector has a key role to play in the reindustrialisation of Scotland?
The oil and gas strategy, which in the Government’s opinion was long overdue, was successfully put together through work alongside the oil and gas industry leadership group, which is chaired jointly by Melfort Campbell and Fergus Ewing, the energy minister.
Economy (North Ayrshire)
The Cabinet Secretary for Infrastructure and Capital Investment, Mr Neil, met North Ayrshire Council in March to discuss a range of key local issues. He will meet the council again later in the year for an update on economic and regeneration activities.
I thank the cabinet secretary for that answer—
Can we switch Ms Burgess’s microphone on, please?
Thank you.
I appreciate the issues that Margaret Burgess raises powerfully and effectively in Parliament on behalf of her constituents. I had the pleasure of being in Margaret Burgess’s constituency for the launch of the enterprise areas initiative at the GlaxoSmithKline premises in Irvine. That is one example of where the Government is making support available to encourage the development of new business activity in North Ayrshire.
Economic Support (South Scotland)
The Scottish Government is committed to supporting sustainable economic growth across Scotland. We recognise the particular challenges that are faced in the south of Scotland, and we work closely with a range of delivery partners including Scottish Enterprise, Scottish Development International, Skills Development Scotland, VisitScotland, local authorities, the third sector, financial institutions and specialist sectoral advisory bodies to promote economic activity in the area.
The cabinet secretary will be aware of the Scottish Agricultural College report, “Rural Scotland in Focus 2012”, which was published last week and highlights a number of serious issues concerning the long-term economic challenges that face many of our communities—our small towns, in particular.
The key point is that the Government must take an approach that supports and encourages the development of business opportunities in rural Scotland. Some of that will come from the active promotion that the Cabinet Secretary for Rural Affairs and the Environment takes forward—for example, in the area of food and drink to provide a strong platform for food and drink companies. I can think of a number of companies in the area that Aileen McLeod represents that are being prominently promoted by the rural affairs secretary.
Employment (Disabled People)
I am working with a range of partners including Remploy, the Department for Work and Pensions, Scottish Enterprise, Skills Development Scotland and trade unions, to look at how new enterprises could be grown from the affected factories, or to support individuals into new employment.
I recently met the GMB in relation to the United Kingdom Government’s plan to close Remploy Springburn unless a buyer is found. The GMB expressed serious concern that significant constraints might have been placed on interested buyers by the tying into the process of R Healthcare. Given the commercially sensitive nature of the process, I do not want to say more. I have written to the appropriate UK minister, Maria Miller, to set out the concerns. I know that Mr Ewing takes an interest in the matter, so will he meet me urgently, given the tight timescales that are involved, to discuss what can be done to facilitate progress?
Yes, I am happy to meet Mr Doris to discuss the matter, and I would be grateful to receive more detail on his concerns, so that we can consider them fully, as is appropriate.
Community Planning Partnerships
The review of community planning and single outcome agreements, which was conducted jointly by the Scottish Government and the Convention of Scottish Local Authorities, was completed at the end of February. A set of actions to implement the review’s conclusions has been agreed with COSLA and is being taken forward.
As part of that agreement, can we hope for clarity about the alignment of local and national priorities?
Yes, we can. There exists a window of opportunity, now that councils have secured their mandates, through single outcome agreements that focus on the pillars of public sector reform that we set out in our response to the Christie commission. They are prevention, integration, workforce development and improved services. The new arrangements for community planning and single outcome agreements will achieve the aspiration that Mr Campbell outlined.
Mobile Telephone Masts (Siting)
We have no plans at present to review the planning legislation and guidance on the siting of mobile phone masts.
I have received a number of representations from constituents in the south of Edinburgh who are worried about the health implications of the siting of telephone masts close to residential areas. Does the minister agree that public agencies could do more to open up development on their own land, so that we can have fewer telephone masts in residential areas?
It is for individual public sector organisations to determine the policy that they regard as being appropriate on location of masts on their property. Some councils have adopted a precautionary principle while others have taken a different approach.
Sustainable Economic Growth
The Government economic strategy sets out how we are maximising economic potential from the existing levers, to support recovery and promote sustainable economic growth.
Does the cabinet secretary agree that many town centres are struggling as a result of absentee landlords of empty shops, for whom regeneration of the town is not a priority, and who are blocking redevelopment and regeneration? Does he agree that the Local Government Finance (Unoccupied Properties etc) (Scotland) Bill is one solution? Does the Scottish Government have further plans in that regard?
I agree with the fundamental point that Mr Adam made. There are barriers to economic activity in our town centres.
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