Plenary, 09 Oct 2008

Meeting date: Thursday, October 9, 2008

Official Report 618KB pdf

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Question Time

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SCOTTISH EXECUTIVE

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Finance and Sustainable Growth

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Housing Investment (North Lanarkshire)

To ask the Scottish Executive what action it is taking to support delivery of national outcome 10 in North Lanarkshire Council's single outcome agreement. (S3O-4497)

The Scottish Government continues to work closely with all councils, including North Lanarkshire, to support them in the delivery of their single outcome agreements.

I ask the First Minister—[Laughter.] That was an instant promotion for John Swinney.

The Cabinet Secretary for Finance and Sustainable Growth knows that I represent the new town of Cumbernauld as part of my constituency. National outcome agreement 10 states:

"Scottish Government to work with Council to recognise and address the exceptional investment requirements of former Cumbernauld Development Corporation housing stock."

I have corresponded with the minister who is responsible for housing and highlighted the serious need for investment in the high-rise flats in Cumbernauld. Will the Government, in recognition of the exceptional investment that is required, support North Lanarkshire Council with additional funding to remedy that and meet the needs relating to those high-rise flats?

I am grateful to Cathie Craigie for my almost instant promotion, but I am sure that it will not have reverberated well upstairs, to put it gently.

I acknowledge the seriousness of the member's point, and I understand that the Government's housing investment division has discussed with North Lanarkshire Council the challenges that it faces in relation to the housing stock of the former Cumbernauld Development Corporation. The Government has been supporting the council and exploring new ways to use the new, more flexible enforcement and financial assistance powers under the Housing (Scotland) Act 2006. The Government will, of course, continue discussions with the council in that respect.

We recently supported the Cumbernauld Housing Partnership in employing consultants to assess the condition of its stock and to work towards determining solutions, and the Government remains ready to have further discussions with the council in that regard.

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Capital City Status (Funding)

To ask the Scottish Executive what progress has been made in efforts to acknowledge the funding implications of Edinburgh's capital city status. (S3O-4570)

The City of Edinburgh Council formally submitted a business case to the Scottish Government at the end of September. I am considering its case and will confirm my decision in time to inform the local government settlement announcement for 2009-10.

I thank the cabinet secretary for his answer, and for his support for Edinburgh to date on this important issue. As he knows, the case for a capital city supplement has cross-party support among all local MSPs and parties in the council.

I will highlight two issues that have a direct impact on our economy and which affect the capital city in particular. Edinburgh accounts for 75 per cent of the country's overall need for affordable housing, but it secures only 15 per cent of funding support in the south-east of Scotland.

With regard to inward migration—an issue that I have raised a couple of times in the chamber—our local schools are struggling to cope with the language needs of children who are coming into Scotland. Will the cabinet secretary examine those two issues positively, given Edinburgh's unique position in relation to its capital city status and as a generator for our economy?

The Government is involved in discussions with the City of Edinburgh Council on the question of a capital city supplement. The issue was raised during the process of agreeing the Government's budget last year. I agreed to come back to Parliament after we had considered a business case from the council, and that is exactly what the Government will do.

On the specific points that Margaret Smith raised, it is clear that there is a significant challenge in relation to affordable housing. The Government has made support available to the City of Edinburgh Council to develop its housing stock and we will continue to assess that position in future spending decisions. The minister who is responsible for housing is, of course, aware of the representations that Margaret Smith has made on the matter and will take decisions accordingly.

Can the minister assure me that the fact that we have a capital city supplement will not militate against Edinburgh's receiving any extra money for which it might come looking? I will not outline the particular difficulties that have arisen in Edinburgh as a result of the current financial turmoil, because the minister knows them better than I do, but it may be that I will come looking for more money. I would not want that to be thought of as greedy; it would just be a necessity. I would like an assurance that the capital city supplement will not be held against Edinburgh.

Margo MacDonald, of course, advanced the argument for a capital city supplement, and I was happy to confirm in my answer to Margaret Smith that the Government has received the business case that we requested from the City of Edinburgh Council. We will take decisions in time to inform the announcement of the local government settlement for 2009-10.

I understand the issue that Margo MacDonald raises, which is common to a range of public authorities in Scotland and to the Scottish Government into the bargain. We must meet the financial challenges of the period in which we are operating. The Government will consider the matter, but I cannot give Margo MacDonald a commitment on any other provisions that might or might not be available. The Government will take decisions in the course of its budget process.

What impact would cutting income tax in Scotland by 2p in the pound, as the Liberal Democrats propose, have on the cabinet secretary's ability to allocate resources to Scotland's cities?

I am not sure that that really relates to Edinburgh's capital city status, but if the cabinet secretary would like to make a brief comment, I will allow it.

I simply point out that, if I was required to find £800 million of savings in the Government's budget, there would be significant implications for Scotland's public services. I therefore look forward with interest to reading the amendments that the Liberal Democrats lodge during the parliamentary budget process to substantiate their bold and imaginative policy announcement.

I support the general case for capital city status for Edinburgh, not least because of its unique capital city functions, but I re-emphasise that it needs more money for affordable housing, not least because the population is increasing more rapidly and the need for affordable housing is far greater than it is elsewhere in Scotland. I point out to the cabinet secretary that, because land prices are lower at the moment, there is an opportunity to buy land for affordable housing at a much cheaper price. Extra money for that would be particularly helpful and opportune.

Mr Chisholm makes the entirely reasonable point that an opportunity exists to substantially expand the supply of affordable housing in Scotland because of the changes in the housing market. It is for that reason that the Government has already changed its capital programme and is working with local authorities to accelerate investment in affordable housing.

However, as Mr Chisholm knows from his experience as a minister, we operate within a fixed capital budget. At a time when the private economy is facing such challenges, there is certainly a compelling case for expanding that budget to allow investment in infrastructure to support economic development. I therefore hope that we can count on Mr Chisholm's support—and that of his colleagues—in making representations to the United Kingdom Government and asking it to expand the capital budgets that are available to the devolved Administrations. That will ensure that we can meet the challenges of the economic climate and also deliver the advantage of making more aggressive progress in delivering more affordable housing in Scotland.

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Scottish Futures Trust (School Building)

To ask the Scottish Executive whether the Scottish Futures Trust will first be used in the commissioning of a new school building in 2008-09, 2009-10 or 2010-11. (S3O-4514)

The Scottish Futures Trust is taking forward the work that is needed to deliver the objectives in the business case that was published in May, and it is engaging with delivery and funding issues across a wide range of infrastructure sectors including schools.

The Scottish Futures Trust will be used in the commissioning of a new school building during 2009.

I thank the minister for that reply; I will study its exact wording. He said that the Scottish Futures Trust will be used during 2009. Does that mean that a school will be commissioned next year? If so, I am delighted to finally have a date for what should be the Scottish Executive's flagship school building programme.

Is the cabinet secretary aware not only of pupils' concern that the state of their school estate be addressed, but of the concern in Scotland's financial community and construction industry that programmes in the pipeline be introduced and accelerated for the sake of the whole economy? Will he promise to consider making a commitment to Parliament that within a year from today the first school under the SFT will be delivered?

I respectfully suggest to Mr Macintosh that he decides which questions he wishes to ask and uses the responses to develop any other questions that he might have. My response made it quite clear that the commissioning of the first school building under the SFT would be during 2009. Indeed, I do not think that that could be clearer.

Mr Macintosh must stop going round telling people that no construction activity is going on in Scotland. In community after community, plenty of activity is taking place in the building of schools, hospitals, health care facilities and major motorways such as the M74, the route of which is not terribly far away from the member's constituency.

I point out into the bargain that I have very much enjoyed my discussions with East Renfrewshire Council on its involvement in the Scottish Futures Trust. The council is led ably by Councillor Fletcher, who is engaging with this issue in a much more constructive way than Mr Macintosh has been able to summon up so far in the course of parliamentary proceedings.

Are the projects that were commissioned under public-private partnerships prior to the introduction of the SFT putting pressure on council and health board budgets because of higher than expected interest payments and inflation?

The private finance initiative schemes that have been implemented over the years are putting pressure on budgets in a number of different ways. For a start, there has been a significant increase in the volume of revenue resource that we need to support the payment streams that are set out in the contracts. In some contracts, increased inflation will have to be taken into account, and the higher interest payments will have to be met by the public purse.

Mr Brown has certainly raised a substantive issue. It highlights the challenge of maximising value for money in investment in our capital infrastructure that the Government is determined to address through the Scottish Futures Trust.

The cabinet secretary's mock indignation cannot disguise the fact that the projects that he refers to were started under the previous Labour Administration. [Interruption.] I am coming to my question, Presiding Officer.

I am interested in—and surprised by—the cabinet secretary's comment that there will be a project under the SFT in the reasonably near future. What is the expected rate of return to the private sector of projects under the SFT and how does that figure compare with the rate of return under the non-profit-distributing model that Argyll and Bute used in commissioning schools?

First of all, Mr Kerr cannot have it both ways. He cannot on the one hand say that no construction activity is going on in Scotland and, on the other, claim that there is construction activity but that it was all commissioned by the Labour Party. As usual, Mr Kerr makes two statements that cannot be true at the same time.

During this Government's term in office, a host of projects in communities around Scotland is in final negotiation, is being built, is reaching financial close and is being delivered. If we had taken Mr Kerr's view of the world, we would have stopped all those projects. However, we took the mature approach and allowed them to go ahead. We have invested in Scotland's infrastructure.

As for the rate of return, Mr Kerr knows that all the financing arrangements will be the subject of active negotiation. However, this Government will ensure that, in those negotiations, we protect Scotland's public purse much more effectively than Mr Kerr and his colleagues ever did and deliver value for money for the people of Scotland.

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China

To ask the Scottish Executive what financial issues were discussed during the Cabinet Secretary for Finance and Sustainable Growth's recent visit to China. (S3O-4565)

The financial issues that were discussed centred around increasing sustainable economic growth in Scotland, our intention to make Scotland a more attractive destination for overseas investment, and Government backing for Scotland-based companies, to develop trade activities and partnerships outside Scotland.

I engaged with potential inward investors and senior officials in Shanghai, to promote Scotland's strength in financial services and to demonstrate Scotland's willingness to be a collaborative partner in Shanghai's further development in the sector, as the city seeks to develop as an asset management centre.

I outlined Scotland's renowned expertise in finance and advised that we have much to bring to China in terms of knowledge, talents, business partners and educational programmes. I discussed those factors and highlighted Scotland as a strong partner and a leading European centre for asset management, which is actively seeking to explore further opportunities.

I sought support from the financial services regulatory bodies in China and the Shanghai Financial Services Office for the work of Scottish Development International in Shanghai, when I emphasised the Government's strong commitment to work with the industry to ensure continuing prosperity.

I apologise for the length of my answer, but I thought that it was important to share the information with the Parliament.

I thank the cabinet secretary for his comprehensive answer. During his discussions on finance, when did he refer to human rights, in accordance with paragraph 14 of "The Scottish Government's Plan for Engagement with China"?

In the course of my discussions with individuals who were involved in the programme, I made clear the Government's commitment to human rights. I was not involved in diplomatic discussions with officials of the Chinese Government—during such discussions the Government would of course make clear its view on human rights in China. However, I made representations on occasions when it was appropriate to do so.

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Infrastructure and Transport Projects

To ask the Scottish Government how it is planning to ensure that major economic opportunities of national importance, located in geographically dispersed areas, are underpinned by modern infrastructure and transport improvements. (S3O-4542)

The national planning framework takes forward the spatial aspects of the Scottish Government's policy commitments on sustainable economic growth. A draft NPF2 was published in January and a final NPF2 will be published early in 2009.

NPF2 will focus strongly on priorities for the improvement of infrastructure to support Scotland's long-term development. For transport infrastructure, it will support the strategic outcomes that are set out in the national transport strategy and draw on the work that is being undertaken on the strategic transport projects review.

I thank the minister for his detailed answer. As infrastructure development is considered during this period of prolonged global monetary instability, will he ensure that consideration is given to projects that meet climate change adaptation requirements, for example by ensuring that buildings are climate proofed?

The minister mentioned transport projects. Will he also ensure that consideration is given to the infrastructure that is required to support the economic potential of the Pentland Firth?

The recent announcements on the Pentland Firth are encouraging in the context of Scotland's future contribution to the climate change agenda. It will be important to ensure that the major structures and building materials that must go to the Pentland Firth have the transport infrastructure that will support them.

The member asked about building standards. We are making progress to raise the standards that apply to new buildings and we are carefully considering how we will deal with the substantial stock that has been built over many years.

Finally, on infrastructure projects generally in these troubled financial times, it is clear that, as markets open up and interbank trading returns, there will initially be a flight to quality as investors look for projects in which to invest. There are no better-quality projects than those that the Government will want to take forward in Scotland.

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Local Income Tax (Glasgow)

To ask the Scottish Executive what recent discussions it has had with Glasgow City Council about the implementation of a local income tax based on ability to pay. (S3O-4539)

We have had no recent discussions with Glasgow City Council about implementing a local income tax, but I was grateful to the council for its response to our local income tax consultation in July. That is being considered alongside all the other responses that we received, and we will have discussions with a range of stakeholders once we have completed our consideration of that information.

Several hundred households in north Glasgow have been rebanded, and I am led to believe that the council is struggling to cope with processing efficiently the repayment of money to the hard-working families who have overpaid. That is another financial and administrative liability on Glasgow City Council as a result of the council tax. When the cabinet secretary next meets the council, will he raise the issue with it and try to persuade it of the powerful case for abolishing the council tax and introducing a fair local income tax?

As Mr Doris knows, the Government is committed to introducing a local income tax based on the ability to pay. There are many problems with the council tax, not least the fact that it bears no relation to the ability to pay. The Government will continue to make that point in all discussions about the implementation of the local income tax.

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Scottish Futures Trust (School Building)

To ask the Scottish Executive when it expects the Scottish Futures Trust to be fully operational and when it is anticipated that it will be used in the commissioning of a new school building. (S3O-4489)

The Scottish Futures Trust is moving forward the work needed to deliver the objectives set out in the business case published in May, and it is now engaging with delivery and funding issues across a wide range of infrastructure sectors, including schools. It is expected that the trust will become fully operational over the course of 2008-09.

The Scottish Futures Trust will be used in the commissioning of a new school building during 2009. The member will wish to note that the first public-private partnership school project given initial project approval under devolution was in the financial year 2001-02, two years into the first term of the previous Administration and on a similar timescale to the one proposed for the SFT's commissioning of a new school building.

Will the cabinet secretary tell us when the board of the Scottish Futures Trust will be appointed, when the chief executive will be appointed, and when the promised management statement—which in the cabinet secretary's own words will "set the trust's objectives"—will be in place? Can he guarantee that all three—board, chief executive and management statement—will be in place by the end of November?

I am currently involved in discussions about the membership of the board and I expect to make announcements shortly. The recruitment of the chief executive will be a matter for the board, but progress has also been made on that. The management statement is under active development in taking forward our expectations for the Scottish Futures Trust as demonstrated by the business case. We are making good progress on all the issues, and I will keep Parliament informed about the timescale for delivery.

I hope that the cabinet secretary will read the Official Report and reflect on his previous answer and how it related to the question that was asked.

Will the cabinet secretary comment on the fact that, in the non-profit-distributing model that has been used in Argyll and Bute, the rate of return for the private sector is 15 per cent, which is the same return for the private sector as in the traditional PPP model? Will he also comment on the fact that current research advises that the non-profit-distributing model may be more expensive to the taxpayer and more profitable to the private sector?

I related my answer to the question the last time Mr Kerr tried to make his point.

On the NPD model, I simply reiterate the point that I have made to Mr Kerr on numerous occasions: the Government is determined to secure greater value for the taxpayer's resources.

Mr Kerr cited an NPD project that his Administration pursued and compared it to a public finance initiative project that his Administration also pursued; I leave him to draw his own conclusions about the connections that exist between them. I will implement a process that provides much better value for money for the people of Scotland, and delivers on people's expectations of a school estate and infrastructure programme that is supported by a more effective means of delivery than the one over which he presided.

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National Planning Framework<br />(Consultation Response)

To ask the Scottish Executive when it will reply to the responses submitted to the consultation on the second national planning framework. (S3O-4535)

An analysis report of the consultation responses that were received on "National Planning Framework for Scotland 2: Discussion Draft" will be published later in the autumn at the same time as the proposed national planning framework is laid before Parliament for consideration.

The minister will be aware that Ayrshire has experienced population and economic decline over recent years. Therefore, it is not surprising that responses to the draft framework called for greater recognition of the area's strategic importance to Scotland. Will he ensure that the revised framework sets out how improvements to Ayrshire's transport links can act as a catalyst for economic growth within the region, rather than simply provide a faster commute to Glasgow and beyond?

We have recently announced significant investments in new rolling stock for the railways, which will benefit Ayrshire in particular. The national planning framework is a planning document; it is proceeding and will be subject to parliamentary review for 60 days. We also have the strategic transport projects review, which will be published later this autumn and directly reflects the Government's future plans for transport. In its new form, the national planning framework will undoubtedly reflect more of the needs of wider Scotland, including private sector projects as well as Government projects. It truly represents planning for the future to 2030.

In the light of the collapse of some airlines and the withdrawal of others, the growing momentum for high-speed rail services, the Government's own recognition of the phenomenon of peak oil and the recommendation from the United Kingdom committee on climate change that aviation emissions must be included within climate change targets, is it possible that the Government's ambitions for aviation growth are misconceived and unrealistic? If so, should it cut capacity expansion at Glasgow and Edinburgh airports from the national planning framework?

Patrick Harvie raised the subject of high-speed rail. Our ambitions, of course, do not stop at Leeds but continue all the way to Edinburgh. It is interesting that British Airways has a share of the equity in some rail companies, which indicates a willingness to engage in improved surface transport. However, aviation is an important part of our economy and we should envisage domestic aviation being augmented by high-speed rail. That is the way of the future. This Government is determined to ensure that Westminster lives up to its responsibilities for cross-border rail activity and the financing that it retains in its budgets to support that activity.

Question 9 has been withdrawn.

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Volunteering

To ask the Scottish Executive what plans it has for the promotion of volunteering in Scotland. (S3O-4483)

We made it clear in our economic strategy that we place a high value on the contribution that the third sector makes to creating a more successful Scotland, and we reinforced that with funding of £93 million over the spending period. Volunteering is central to that contribution, whether it is people working as charity trustees, being involved in organising youth clubs, being involved in befriending or working in partnership with public services such as the national health service, or as part of an informal community group. We will invest £11.5 million in the network of volunteer centres over the spending review period and are in positive discussions with Volunteer Development Scotland about the funding of its role as the Scottish centre for excellence in volunteering.

I asked the question because there is a sense that volunteering specifically—as opposed to the third sector in general—has moved down the agenda somewhat. Will the minister agree today to engage further with the relevant organisations to address that concern?

Community Service Volunteers Scotland will hold its big make a difference day towards the end of October. Will the minister encourage those who are under his wing to support that initiative?

I can go further and say that such engagement is already under way—at the CSV conference last week, people got a clear understanding of what is being done. The Government is providing 32 pots of money across the country to fund volunteering activity. Voluntary organisations have been invited to operate together to shape with local community planning partnerships plans that will be part of single outcome agreements.

The message is clear—the power is in organisations' hands and they must get involved. That is beginning to happen across Scotland. I encourage any organisation that Mr Brown comes across to become part of that process and to work together closely to ensure that we get maximum value out of volunteering and the £11.5 million that will be spent on volunteer centres over the spending review period.

I listened with care to the minister's previous answer. Does it represent a policy change in the Government's approach to the voluntary sector, especially headquarters functions of national bodies, which do not fit so well into the community planning framework at local level? Does he accept that some of us find the Government's statements of support for the voluntary sector slightly difficult to swallow after engaging with ministers on the funding of project Scotland and hearing of significant cuts to good projects—run by organisations such as CSV, to which Gavin Brown referred—that support volunteers. Does the minister recognise the importance of those organisations? My question relates to their headquarters and central functions, as well as to their involvement in community planning arrangements.

We recognise the importance of voluntary organisations—that is why we have run two sessions that have brought third sector organisations together to have the fullest possible debate and why we have included Martin Sime and the Scottish Council for Voluntary Organisations in the national economic forum. We regard the third sector as a very important part of our economy.

We note with great interest that in Finland the third sector represents 21 per cent of gross domestic product, compared with only 4 per cent in Scotland. We see massive scope for development and are working with everyone involved, including on headquarters functions, to make that happen.

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Co-operative Development Scotland

To ask the Scottish Executive whether it intends to fund Co-operative Development Scotland after March 2009. (S3O-4520)

Co-operative Development Scotland is a subsidiary of Scottish Enterprise and was established back in April 2006. Future funding decisions will be an operational matter for Scottish Enterprise. An evaluation is under way and will inform the decision on future funding.

I agree with Gavin Brown and Robert Brown that the voluntary sector is not simply a subsector of the social enterprise sector. I hope that the Government appreciates that and that it will put pressure on Scottish Enterprise to support a successful innovation by the previous Scottish Executive. The minister will be aware of the wide variety of co-operatives and mutuals that exist across Scotland. Does he agree that, at a time when international capitalism is in turmoil, the alternative economic and financial models of co-operation, mutualism and credit unions should enjoy a much deserved resurgence? What further action can the Government take to ensure that that happens?

We regard the third sector as a key part of the totality of services that are delivered in Scotland. With community planning partnerships, the opportunity has been created at local level for the sector to reconnect and to play a full part. The momentum for CDS is there. The evaluation began in January and we expect it to be completed shortly—probably around December this year. The decision on funding that will be made at that time will be an operational matter for Scottish Enterprise, which will take firmly on board the data from the evaluation.

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Small Business Sector (Credit Crunch)

To ask the Scottish Government whether it has data on the impact of the credit crunch on small businesses in Scotland. (S3O-4553)

The Scottish Government holds a comprehensive range of data looking at small business sectors across Scotland. Examples of those data include the annual small business survey and the "Financing UK Small and Medium-sized Enterprises" survey. In addition, we also make use of information collected by the United Kingdom Government and the Bank of England.

More important, we maintain an on-going dialogue with the Scottish business community and representative organisations, such as the Federation of Small Businesses, chambers of commerce, the Confederation of British Industry, the Scottish Council for Development and Industry and the Institute of Directors, to gain a better understanding of the evolving issues surrounding businesses across Scotland. We have held specific discussions with those organisations to examine the impact of the credit crunch and to seek their views and input.

Through that regular engagement, we have identified business rates as an issue where we could act to ameliorate pressure on small Scottish businesses. The small business bonus scheme, which has given small Scottish businesses increased robustness, has been a function of that approach.

I thank the minister for that full answer; he has not left me with a lot to go on.

I am sure that the minister will be aware that a good number of small businesses are concerned that the credit crunch will cause them budgeting problems in the short and medium term. Will the Government keep an eye on the situation and gather the numbers with a view to continuing to be proactive in assisting small businesses during this difficult period?

We are aware of the potential impact on the real economy, which dominated the debate yesterday at the national economic forum. The close monitoring will continue.

Meanwhile, this Government has demonstrated that, despite our limited economic powers, we can and will—as is referenced by the small business bonus—take decisive action to strengthen economic performance and help the small businesses that are suffering. If that requires us to make yet further representations to the UK Government, the member can be assured that we will do exactly that. Yesterday, the national economic forum was absolutely united in support of that approach—we saw tangible evidence of that. I watched Grahame Smith of the Scottish Trades Union Congress sitting right next to Peter Hughes, both of whom made absolutely supportive statements about working together and ensuring that we do everything that we can to be on the forward foot, take decisive action locally and accentuate the positive, and there are many positives to accentuate.

It is important to have data on these issues, so I am pleased that the minister gave quite a full response to the question. In Fife, we are seeing the real impact of the credit crunch unfold on small and medium-sized enterprises. It is reported in today's newspapers that Cemtron has gone into administration because a loan has been pulled by HBOS. In the past day, 40 agency workers have been paid off and 150 other workers are now under threat of redundancy. I know that the minister has met the company previously. As part of the decisive action that he mentioned, will he perhaps seek to meet the company again to find out whether there is any way the Scottish Government could support it in its current predicament?

The member highlights the absolute criticality of the expansion of liquidity, which we saw yesterday and which I hope will filter through into the system. I am always keen to meet companies in the context of the wider sectors in which they operate, to see what else we can do to make connections in their sectors that might help them to move forward. Confronting these difficulties is the hallmark of how we have to handle these things. We will take that on board. I look forward to receiving an overture from Mr Park to ensure that we get a meeting in the diary.

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Capital City Status (Funding)

To ask the Scottish Executive what progress is being made with regard to the establishment of a capital city supplement to recognise Edinburgh's role as capital and a main driver of the Scottish economy. (S3O-4549)

Following my agreement to a study into the additional and unique costs to the City of Edinburgh Council as Scotland's capital city's council, I confirm that the council formally submitted a business case to the Government at the end of September. I will consider its case and confirm my decision in time to inform the local government settlement announcement for 2009-10.

Does the cabinet secretary agree that highlighting Edinburgh's need for a capital city supplement is motivated not by a desire to give it an unfair advantage over other parts of Scotland but by a recognition that the supplement is required, in view of the capital city's role as a driver for increased inward investment and tourism, which are functions that benefit all Scotland, not just Edinburgh?

A number of the issues that Dr McKee raises are fundamental to the case for an Edinburgh capital city supplement. The capital city acts as a gateway for the country, and as a magnet for visitors to the country. The Government will consider those issues as it examines the study and the business case that has been produced by the City of Edinburgh Council.