Finance and Sustainable Growth
Question 1 was not lodged.
High-speed Rail
The Scottish Government has pressed and will continue to press Scotland’s case for inclusion in a United Kingdom high-speed rail network. We are actively engaging in discussions with the UK Government to that end.
Does the minister agree that the northern section of the high-speed rail link from Manchester to Glasgow and Edinburgh provides by far the best return on investment—the cost benefit ratio is around 7.6 to 1—because of the huge potential for modal shift from air to rail?
I endorse absolutely what Robert Brown said in relation to the importance of the northern part of the HS2 network. Frankly, if the line does not come all the way to Scotland, the economic return and—fundamentally—the climate change impact that can be derived from getting people off planes and on to trains are much diminished. Of about 7 million journeys a year, just over 1 million are by train; most of the remaining journeys are by air. We have, of course, had input in the HS2 study. I will meet the UK Minister of State for Transport, Theresa Villiers, on 4 November, and this is one of the subjects that we will discuss.
Youth Unemployment
I have done so. Tackling youth unemployment is a high priority for the Scottish Government. I keep regularly in touch with Cabinet colleagues as we continue to take forward action to ensure that young people have the skills that they need for future employment. Most recently, we focused on summer leavers—from school, college and university—and agreed a £6.5 million package of additional support.
The cabinet secretary may be aware of recent Scottish Trades Union Congress analysis of unemployment figures that shows that the number of young people claiming jobseekers allowance for six months or more in Scotland has risen by 33 per cent in the past year. The same analysis shows a very worrying rise in my constituency of Midlothian of 95 per cent over the same period. Given that young people in my constituency are less likely to go into higher or further education than young people elsewhere in the country, I am concerned that the situation may get even worse. In order to avoid denying a whole generation opportunity, what plans does the Scottish Government have for targeted support for areas such as Midlothian, where youth unemployment is rapidly rising?
I am aware of the STUC report to which Rhona Brankin refers, which is a thorough analysis of this challenge. She raises important concerns on behalf of her constituents.
Can the cabinet secretary clarify the situation with regard to winter leavers and access to colleges? How many places are there? What capacity is available in the college sector to address the challenges of winter leavers?
Our recognition of the summer leavers issue shows that we recognise that there will be certain points in the calendar when the challenge in finding appropriate destinations for young people who are leaving school, college or university becomes more acute. An interesting fact about the summer leavers activity is that we put in place capacity that was not fully utilised—we overprovided in terms of the scale of the problem that we expected. I hope that Mr O’Donnell will be reassured that we have taken measures to tackle the issue and that, from the information that is currently available to me, we appear to have achieved that in the summer.
Aberdeen Western Peripheral Route
As we have made clear on a number of occasions, the legal challenges submitted to the Court of Session have already caused significant delay to the construction of the Aberdeen western peripheral route. We remain totally committed to delivering the project and to its being completed as soon as possible, but we have no alternative but to wait for the outcome of the appeals before substantial progress can be made on that much-needed project.
Does the minister agree that the delays to the commencement of construction of the western peripheral route have made it all the more important to address congestion in Aberdeen by not delaying other important transport improvements, including the improvements at the Haudagain roundabout? The minister has said that that work should not begin before the western peripheral route is completed. Why is that approach necessary?
The member will know that we have identified the nature of the intervention for the Haudagain roundabout and that we are continuing to make the necessary preparations. One of the issues in relation to the Haudagain roundabout is the fact that the major contribution to relieving congestion at that part of Aberdeen’s road network will be the opening of the Aberdeen western peripheral route itself. For reasons of good use of public funds, we want to draw together a range of transport interventions in Aberdeen in a single funding package. To proceed in any other way would significantly increase the costs and create a range of difficulties in the current—and, indeed, any other—climate.
I wrote to the minister on 1 February, asking whether he would consider including the A90/A937 junction redevelopment in the contracts for the AWPR. A reply from David Middleton contains the line:
We are seeking to bring together a range of transport interventions in one large package that will give us economies of scale. Subject to approval being granted, those will include the Balmedie-Tipperty intervention, a number of park-and-ride facilities, the Haudagain roundabout and the AWPR. However, as we have not yet moved to a position of financial close on a range of projects, we are in a position to achieve further economies of scale by looking at other opportunities.
Public Authorities (Island Areas)
Following my meeting with the conveners and chief executives of councils in the Highlands and Islands on 27 May, my officials have been liaising with the Highlands and Islands group of councils to clarify the key issues and challenges in sharing service provision across sectors. In particular, the Scottish Government and the Convention of Scottish Local Authorities are actively supporting efforts by health boards and local authorities to develop better joint working arrangements. The development of an integrated resource framework will enable partners to make better use of existing resources to deliver new models of care locally. I understand that Comhairle nan Eilean Siar and NHS Western Isles have already completed the first stage of that process by mapping out their current models of service provision. That work will continue to develop.
The cabinet secretary is clearly aware of the arguments for still closer working between health boards and local authorities. Does he agree that there is a particularly strong case for that among island authorities, where the replication of bureaucracy between two bodies with coterminous boundaries is often not in the interest of service users?
There is significant merit in Dr Allan’s point. In my previous answer, I mentioned the focus on the integrated resource framework, which assists in trying to bring together the working priorities of the relevant public bodies. Particularly in island communities, opportunities exist to find ways of encouraging and enhancing joint working, which is of course to be welcomed. The Government will continue to support that process and to work with our public sector partners on achieving integration that focuses services on the needs of individuals and delivers better outcomes for those individuals.
Of our three island communities, Orkney seems to be leading the way on closer working between local authorities and NHS boards, with the setting up of Orkney health and care in April this year. Given that governance arrangements in the NHS are different from those in councils, will the cabinet secretary work with the Cabinet Secretary for Health and Wellbeing to support Orkney health and care to overcome what are seen as serious obstacles?
Inevitably, in such processes, obstacles can emerge in the working practices and accountability directions of different public bodies. I assure Mary Scanlon that the health secretary and I are actively supporting all that joint working. It is important that we ensure that we deliver the approach that I set out in my second answer to Dr Allan, which is about focusing on the achievement of better outcomes for individuals. That should drive the approach that public bodies take.
Question 6 has been withdrawn.
Council Tax Freeze (2011-12)
The Scottish Government’s clear preference is to extend the council tax freeze for a further year in 2011-12. Following the independent budget review, we are discussing the issue with our local authority partners and other stakeholders.
The cabinet secretary should be clear that, in that ambition, he will have the support of the Scottish Conservatives. Does he agree that, as hard-working families across Scotland struggle with the consequences of Labour’s recession, they would welcome a council tax freeze for a further year? Will he join me in condemning a Labour Party that is determined to hit those hard-working families with punishing council tax increases at a time when they can least afford to pay them?
I am not sure that I would venture on to such party-political ground on such a harmonious Thursday afternoon in the city of Edinburgh and our national Parliament. However, there is some substance in Mr Fraser’s remark, which is a pleasant change.
I was goaded into getting to my feet by Mr Fraser, whose knowledge of international economics could be written on the back of a stamp. As we all know, it was not Labour’s recession; there was a global recession.
I am always intrigued by Mr Whitton’s assessment of the unholy alliances that exist. The last time I looked, in East Dunbartonshire Council—[Interruption.] I think that my friends in the Liberal Democrats know where I am going here. In East Dunbartonshire Council—
And Inverclyde Council.
I am always grateful for help from the back benches. In East Dunbartonshire Council—the council area for which Mr Whitton is a member of Parliament—there is an unholy alliance between the Labour Party and the Conservatives in freezing out the SNP from the administration.
Has the Scottish Government carried out an estimate of who has gained most from the council tax freeze—families in the lowest income decile or families in the highest income decile?
Mr Purvis will know that we have published much analysis on that point. All citizens who pay the council tax will have appreciated that the council tax has not increased at all since this Government came to power—the citizens and council tax payers of Scotland will have welcomed that.
Indoor White-water Rafting (Edinburgh Waterfront)
The Scottish Government is aware of plans by XStream Scotland to build an indoor white-water facility within the Edinburgh waterfront area.
I thank the cabinet secretary for his reply, but he did not talk about the white-water rafting facility and its direct relationship to the money that has been promised. However, I simply seek an assurance that the business plan for that world-class water sports facility will be considered on its merits, in relation to several Government policies around health and outdoor sport. Will the cabinet secretary investigate whether his department, or whichever department is more appropriate, can arrange a meeting with all interested parties—Forth Ports, the City of Edinburgh Council, sportscotland and so on—to ensure that this national, state-of-the-art facility does not slip through our fingers?
I mentioned my knowledge of the white-water facility in my original answer. I have some detailed knowledge of white-water rafting, based on the level of activity that is undertaken in my constituency—outdoors, I might add—by the white-water rafting fraternity. If Margo MacDonald wants to suggest a group day out white-water rafting on the River Tay or the River Tummel, she need only lodge a parliamentary question to me.
Does the cabinet secretary recognise that the completion of the tram project is vital for developments on Edinburgh’s waterfront, and in west Edinburgh as Tesco Bank acknowledged in a statement last week? Will he consider the use of TIF as an important tool for plugging any funding shortfall that may arise in completing the route to Newhaven?
As I said in my previous answer, the TIF proposal that the council presented to me focuses on the development of new public infrastructure, which will undoubtedly assist in the development of the waterfront.
Will the cabinet secretary give us an idea of which other councils have approached him about the use of TIF schemes? What progress has been made in Aberdeen on the city’s TIF plans?
I will not give an exhaustive list of the authorities with which I have discussed TIF as there have been quite a number. However, I can confirm that Aberdeen City Council has expressed a desire to progress that approach, and we will ensure that its proposal is given due consideration.
Infrastructure Projects (Community Benefit)
In February 2008, the Scottish Government published a report and guidance on the use of community benefit clauses in public procurement. Those clauses are now being used in a variety of infrastructure projects to deliver wider social benefits, including targeted recruitment and training, and opportunities for social enterprises and small and medium-sized enterprises.
The cabinet secretary will be aware that we have discussed community benefit clauses before. In Inverclyde, three groups of organisations—the urban regeneration company, the local authority and housing associations—have such clauses in their infrastructure projects. However, this week yet another constituent—who is a joiner—told me that he has been unemployed for two years and just cannot get a job.
I understand Mr McMillan’s perspective, and we have discussed the subject on a number of occasions. As I said in my previous answer, we have put the concept of community benefit clauses into our procurement regulations and guidance. That is a helpful step, as it structures the way in which individual projects can be progressed and benefits can be obtained for local communities.
Office of Gas and Electricity Markets (Transmission Charging Review)
Scotland has some of the best renewable energy resources in Europe. I therefore welcome the review of charging, which the Office of Gas and Electricity Markets announced in Glasgow on 22 September. The review shows that Ofgem is starting to listen to the Scottish Government and the Scottish Parliament, which has also backed the call for an independent review.
Does the minister believe that a situation in which electricity suppliers in north-east Scotland face some of the highest transmission charges in the United Kingdom is incompatible with promoting renewable energy? Does he also believe that Ofgem’s current practices must change if we are to reach our ambitious climate change targets?
Yes, I agree. Generators in the north-east are being charged £20 per kilowatt hour in comparison with a subsidy of £5.87 per kilowatt hour in south-west England. Scottish generators, which, on the whole, produce 12 per cent of UK generation, are paying 40 per cent of UK transmission charges, which is about £100 million a year more than their fair share.
Underdeveloped Commercial and Industrial Land (Urban Areas)
We have invested more than £90 million in urban regeneration companies since 2007, supporting the delivery of transformational projects in key regeneration areas across Scotland. Since 2008, we have invested £36.6 million through the vacant and derelict land fund, providing five of the most affected local authorities with the means to de-risk development within their boundaries.
I thank the cabinet secretary for his very full reply. Is he aware of the desolate situation at Drumchapel shopping centre in Glasgow? Apart from a small supermarket, the centre now has only one limited row of shops for a population of more than 9,000. That requires local residents to make bus journeys to get to any sizeable shopping centre; in an area of generally low average incomes, that is a considerable financial strain. Will the Scottish Government look into helping facilitate partnership development with the current owners of the site?
I will certainly examine the issue that Mr Kidd raises and determine whether there is any way in which the Government or its agencies can assist in bringing together parties to try to encourage development. We clearly have a range of different interventions in place to support regeneration in urban communities. The issue that Mr Kidd raises is worthy of further examination to determine whether more can be done.
Question 12 has been withdrawn.
Tax-varying Powers
We made it clear at the outset of this Administration that we did not intend to use the income tax-varying powers available under the Scotland Act 1998. That has remained our position since.
I remind the cabinet secretary that the SNP is in power here. Circumstances have changed since it was elected. He and his ministers have constantly been moaning about a lack of powers to raise extra funds, yet those powers exist. They were the subject of the second question in the referendum. I ask him once again—I have tried before—to explain to the Parliament why he is afraid to start the process that would raise funds that could provide much-needed revenue and capital expenditure for the Government.
I reassure Lord Foulkes that I am afraid of absolutely nothing. The question is, what is the appropriate step to take in relation to taxation decisions that affect the population of Scotland? As I said in my answer to Mr Fraser, the population in Scotland is facing significant increases in taxation as a consequence of the economic situation that we face. If Lord Foulkes’s answer to that is to put more and more taxation on the shoulders of—
What is the cabinet secretary’s answer?
Lord Foulkes asks what my answer is. He got my answer a moment ago but he did not like it. I am now telling him what the flaws are in his argument and his answer. Piling income tax increases on top of council tax increases and VAT increases would result only in Lord Foulkes coming to the chamber and moaning about the burden on hard-pressed families. We will not put a burden on hard-pressed families in Scotland.
The cabinet secretary is aware that a tax increase of 3p in the pound under the tax-varying powers would cost taxpayers on £30,000 a year an additional £676 a year. Although that might not be a lot to Lord George Foulkes, it would certainly be a lot to most ordinary families. Does the cabinet secretary agree that that, together with Labour’s plans to scrap the council tax freeze, represents a double whammy for middle-income families that are already hit hard by Labour’s recession?
Mr Gibson makes a number of fair points about the stance that Lord Foulkes has explained to the Parliament. I reiterate that we must recognise the economic and financial circumstances of individual citizens in our country, given some of the other tax decisions that the United Kingdom Government has taken. When we add that to the challenges that we face on public expenditure, the course of action that Lord Foulkes suggests seems to me to be a damaging one for the people of Scotland.
Co-operative Sector
The Scottish Government recognises the importance of co-operative enterprises in contributing to the growth of the Scottish economy and providing jobs and wealth across Scotland, but also in bringing a wide range of social benefits to our local communities. Recent research that was commissioned by Co-operative Development Scotland shows that co-operatives in Scotland employ some 28,000 people and generate an annual turnover of just over £4 billion.
I thank the cabinet secretary for his fearless answer. Given the huge economic, social and cultural importance of the co-operative sector to the country and the unique role that Scotland has played in the development of the sector via both the Fenwick weavers and the United Nations Educational, Scientific and Cultural Organisation world heritage site at New Lanark, will the cabinet secretary inform the Parliament how the Government plans to play its part in the UN international year of the co-operative, which is scheduled for 2012?
First, I acknowledge Bill Butler’s long-standing interest in the role of co-operatives in our society. I add the comment that, in terms of the business models and corporate structures that exist in our country today, we are at a moment when the co-operative structure has a great deal to contribute to the decisions that we may take in the years to come, recognising the values that the co-operative movement brings of sharing activity and working together within communities and sectors to deliver the greatest benefits that we can possibly create.
Fossil Fuel Levy
I recently discussed access to the fossil fuel levy with Treasury ministers both at a finance quadrilateral meeting on 15 September and in my meeting with the Secretary of State for Scotland on 27 September. I also wrote to the chief secretary on 30 September to press for the early release of those funds in a way that is additional to the Scottish budget.
Does the cabinet secretary agree that if the coalition Government wishes to retain even a shred of credibility regarding its respect agenda, it must return that money to Scotland to boost jobs and investment in our renewables sector?
It would be a helpful intervention if the United Kingdom Government were to find the means of releasing that resource to be deployed in support of renewables development in Scotland. By statute, the resources in the fossil fuel levy must be used to support renewables development. As has been demonstrated over many months and years, Scotland has a fantastic opportunity in the area and the United Kingdom Government has the capability to take a decision that would be to the long-term benefit of investment in the Scottish economy. I assure Mr Gibson that that objective has been at the heart of my interventions in all my discussions with the United Kingdom Government.
Does the cabinet secretary recall that both he and the First Minister said in June that they confidently expected the new coalition Government to agree to release that money? Yet, we are now in October and despite all his meetings, letters and persuasion, we are not getting it. Why, does he think, has the coalition Government been so obdurate and why has it not accepted his arguments?
In fairness to the coalition Government ministers, they are not the first ministers whom I have contacted on the subject. The one thing I will say about the current coalition Government is that at least it is prepared to talk about the issue in a meaningful fashion. I could produce for Lord Foulkes reams of correspondence. He might paper the walls of his Parliament office—if that were permitted—with the letters that I sent to the previous Government asking it to take steps on the fossil fuel levy moneys.
Renewable Heat Incentive
In July I wrote to the UK energy minister, Charles Hendry, to stress the need for a renewable heat incentive to support the development of the sector and to help achieve our renewable heat and wider climate change targets.
The minister will be aware that it is difficult to overstate the importance of incentives in promoting the growth of renewable energy and that we have a huge opportunity, not merely for manufacturers but for installers and those who train and accredit them. Can the minister give me some encouragement by saying whether his efforts with the UK Government will bear fruit? The renewable heat incentive is hugely important to the renewables sector.
Yes, I can give the member a commitment that we will continue our focus on the matter. This year we have hosted numerous stakeholder events specifically on renewable heat and heard at first hand about the importance of renewable heat to Scotland, not just from manufacturers and installers but landowners, farmers, forestry interests, haulage interests, housing associations, local authorities and so on. Scotland is ready for it and the renewable heat incentive is crucial to our aim of building a viable and diverse renewable heat industry. I will continue the dialogue with Westminster to ensure that Scottish interests are listened to.
Recruitment
In the Scottish Government core, 179 people were externally recruited and 305 people were internally recruited. In Scottish Government agencies, 69 people were externally recruited and 54 people were internally recruited. Of the 179 externally recruited posts in the Scottish Government core, 83 were permanent. Of the 69 externally recruited posts in Scottish Government agencies, 47 were permanent.
Those figures come when the Scottish Government has a presumption against external recruitment. How much has that presumption saved on what would have been spent if it had not been in place?
That question is difficult to answer. The judgment about whether to fill posts internally or externally is based on whether a business case for appointments exists. It is not automatically presumed that a post must be filled. A judgment is applied to whether it is essential to fill the post, given the financial constraints in which we operate.
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First Minister’s Question Time