Finance, Employment and Sustainable Growth
Non-profit-distributing Model Spending
In the short term, NPD investment is lower than was originally forecast. As I set out in the budget statement, that is for two reasons: first, some NPD projects are being concluded at a lower cost; and, secondly, some projects are taking longer to be prepared and planned.
According to the Scottish Parliament financial scrutiny unit briefing on the 2014-15 draft budget, planned NPD investment this financial year is 45 per cent less than was estimated in September last year and the projected spend for next year is down by 17 per cent. How accurate are the current figures for planned NPD investment? Will they, too, be reduced by September next year?
The Government has committed itself to a programme of NPD investment covering a range of projects, some of which will be material to Dr Murray’s constituency—the Dumfries and Galloway acute services redevelopment project among others. The purpose of the programme is to deal with the reductions in capital expenditure that the Scottish Government has experienced as a consequence of the budget priorities of the United Kingdom Government.
This year’s planned NPD investment sees a drop from £338 million to £185 million. What percentage of that drop can be attributed to savings?
Some of it will be down to the reductions in the costs that projects are being procured for, and some of it is down to the factors that I explained to Dr Murray a moment ago, which include the time that it is taking to ensure that the projects go ahead. The key point is that all the projects that the Government has committed to undertaking will be undertaken as part of the NPD programme. The Government will ensure that the resources that support the delivery of those projects are in place as part of the programme, which we have acknowledged to Parliament will take some time for us to deliver.
Small Business Bonus Scheme
More than 89,000 business properties in Scotland are benefiting from the small business bonus scheme. That means that two out of five business premises in Scotland are paying zero or reduced business rates under the SBBS. Many thousands of the businesses that are benefiting are located in West Scotland.
Does the minister agree that Renfrewshire Council’s retail improvement scheme has been successful as a creative and innovative scheme that is designed to support small businesses and shops and to improve the appearance of our high streets? Will the Scottish Government roll out the scheme throughout Scotland as part of the town centre review?
I agree with Mary Fee that such initiatives are well worth while. If I remember correctly, I started the scheme when I was the leader of Renfrewshire Council and we gave the successor administration a range of good ideas about how we can support town centres. That is why I am particularly looking forward to the Government’s response to the external advisory group on town centres.
Black and Ethnic Minorities (Underemployment)
The Scottish Government is taking a range of steps to address underemployment for all those affected in Scotland, through both our work to promote stronger economic growth and the reform of post-16 education and training, to ensure that our skills provision meets the demands of current and future labour markets.
Although the ethnicity and employment information from the 2011 census has not come out, analysis based on the 2001 census showed that unemployment rates were higher for all visible minority groups. The figures for some particular groups were double those for the indigenous community. If the 2011 census analysis shows that the pattern persists, will the cabinet secretary commit to positive action on employment for Scotland’s growing ethnic minority population?
The objective of ensuring that there are opportunities for all citizens in Scotland to fulfil their economic potential lies at the very heart of the Government’s agenda. Therefore, it is fundamentally important to the Government that we provide the necessary support to minority ethnic communities.
Question 4 has not been lodged by Graeme Pearson and an explanation has been provided.
Wind Farm Developments (Jobs)
The size of the offshore renewables market and its associated employment at present rests on the ambition of the United Kingdom Government to develop the market through the current electricity market reform. The Scottish Government continues to make the case for ambitious reforms to support the sector, and it looks forward to a positive conclusion to the UK Government’s current consultation.
When the Scottish Conservatives asked a similar question regarding onshore wind, the First Minister initially stated that 18,000 were employed in the industry. He subsequently downgraded that to 11,000. Further work by the Scottish Conservatives indicated that the true number at the time was 2,235. At this time, when the Government is trying to promote offshore wind as a potential large-scale employer, would the minister like to take the opportunity to downplay the ambitious claims that appear to have peppered previous contributions to the debate?
I always try to be realistic.
Oil and Gas Installation Decommissioning (Economic Opportunities)
Decommissioning presents enormous opportunities. Estimates vary, but it is likely that decommissioning will be worth more than £30 billion by 2040, and that opportunity must be grasped by the Scottish supply chain. Moreover, that figure does not include the future international opportunities that Scotland’s enterprise agencies are considering.
Does the minister agree that the expertise that Scotland will gain in decommissioning will be similar to the country’s expertise in operating subsea? That will give Scottish companies a competitive advantage in gaining future international contracts in that area, and help to grow further our supply chain companies and our exports.
Yes, I do. Maureen Watt is very knowledgeable about the industry, and she knows that our subsea sector is pre-eminent in the world, which should also be the case with decommissioning.
Towns (Improvement)
Last week I launched the town centre housing fund, which is aimed at bringing town centre properties back into use for affordable housing. We developed that fund in response to the early ideas that emerged from the national review of town centres; we are currently considering the review group’s final report and recommendations, which we received in July. Our response will be published later this year, and will set out further measures that the Scottish Government will take to support and improve our town centres.
What can our local communities do to access that fund ahead of subsequent reports? What help does the Government think the fund will be able to provide for the economies of our towns?
The town centre housing fund is a £2 million demonstration project, which will do what it says on the tin: it will demonstrate what can be achieved by repopulating—and potentially converting the status of—empty properties.
I am sure that the minister will have seen the comments from the Federation of Small Businesses suggesting that the closure of public counters in police stations will be bad for local economies. Does he agree that small towns such as Blairgowrie, in John Swinney’s constituency, will be adversely affected if those closures go ahead?
Those issues must be considered in the round. As part of the town centre response, we will look closely at public sector properties and the role that they play in town centres. One of the external advisory group’s recommendations is for a town centre presumption in planning and in relation to public sector assets. The Government is actively considering that, and it will be reported on once we release the Government’s strategy on town centres.
Aberdeen City Council (Economic Development)
The Scottish Government is in regular discussion with Aberdeen City Council regarding economic development. I met the leader and chief executive of the council in July and the Deputy First Minister met them again in August. On-going engagement takes place through the activities of the Scottish cities alliance, which recognises the role that cities play as drivers of economic growth and aims to increase investment and jobs in our cities and their surrounding regions. Both the Deputy First Minister and the leader of Aberdeen City Council attended the alliance’s recent leadership group meeting in September.
When the leader of Aberdeen City Council appeared in front of the Local Government and Regeneration Committee today, he talked about Aberdeen’s vibrant economy and about various funding streams, but he made no mention of tax increment financing, which would of course lead to greater economic growth. Has there been any application from Aberdeen City Council for TIF funding since its decision to abandon the city garden project scheme?
The last application from the city council for a TIF project was in August 2012. Since last August, there has been nothing that would constitute an application in the terms that Mr Stewart asked about. The Government made clear that our willingness to take forward the TIF proposition was conditional on agreement emerging to take forward the Union Terrace gardens project, which was supported by the population in Aberdeen. It is a matter of regret that the project has not been able to proceed, despite the public support that was expressed for it.
As the cabinet secretary will recall, there was great disappointment in Aberdeen that the promised sum of several millions of pounds in business rates incentivisation did not materialise for the latest financial year. Can he offer any better hope that Aberdeen will benefit directly from its great success in increasing its level of business rates generation and, indeed, the level of economic activity in the city over the past 12 months?
As Mr Macdonald should know if he was following the sequence of parliamentary questions that were asked on this subject, Mr Mackay dealt with that issue just the other week in response to parliamentary questions. In that answer, Mr Mackay essentially made two points, which I will reiterate today.
Lanarkshire Business Gateway Contract
Responsibility for the management, performance and monitoring of the delivery of the business gateway services across Lanarkshire rests with North Lanarkshire Council. North Lanarkshire Council works in partnership with South Lanarkshire Council to ensure that the service is addressing the needs of both local authority areas. The Scottish Government is a member of the business gateway management group, which receives reports on the performance of the service across Scotland.
As the minister is aware, although the Official Journal of the European Union tender process was gone through to deliver the Lanarkshire business gateway contract, only one tender submission was received and the contract was awarded to Lanarkshire Enterprise Services Ltd. Has that tendering situation been repeated in other business gateway areas? Will we closely monitor the delivery of business gateway services in Lanarkshire to ensure the maximum impact of the £6.8 million contract?
I can look into the specific point that the member makes and report back to him but, plainly, it is the responsibility of local government to determine how best to deliver business gateway services, and rightly so. Sometimes, there are few tender responses or even only a single one. I suggest that that is not in any way unique. Lanarkshire Enterprise Services was the successful tenderer and it was also successful in winning bids for the service in Ayrshire and Renfrewshire. It is an enterprise trust—a private sector not-for-profit organisation—whose chief executive is Ronnie Smith, with whom I have had many dealings. He has always evinced strong leadership and support for business. I hope and have confidence that that will be the case in respect of his new duties in serving Lanarkshire.
Fife Economy (Support)
The Scottish Government is committed to supporting sustainable economic growth across Scotland, including in Fife, and we are using all available levers to deliver that growth. We have focused our budget on delivering investment, protecting household incomes and creating jobs. Just last week, I heard direct from businesses attending the Fife economy partnership about their views on what would support growth and how we can support them.
Fife has a number of major towns and their high streets are a vital part of our economy and communities. The UK Government is consulting on planning rules to encourage a change of use from retail to residential. To follow on from Nigel Don’s question, I welcome the fund that was announced earlier this week. Will the Scottish Government take steps to overcome the identified barriers, such as the restrictions on the selling of long leaseholds over shops and the 20-year limit on residential leaseholds?
The Government will certainly examine that material carefully. As Claire Baker will recall, in the budget last year I set out the provisions that would be put in place, which Mr Mackay has now announced, to enable the utilisation of existing properties in town centres that no longer have a retail function or that are no longer of appeal to the retail market to be transformed into accommodation that could be used to repopulate town centres. The Government has already taken steps to encourage that process. We will see the fruits of the work that Mr Mackay has announced and consider exactly what further steps we need to take. However, as I discussed last week with the Fife economy partnership in our consideration of the role of town centres, we believe in the importance of providing more reasons to increase footfall in town centres and of encouraging greater activity in them.
As a regular visitor to Dunfermline, I ask the cabinet secretary how the Forth replacement crossing is benefiting Fife.
As I said in my answer to Claire Baker, the Queensferry crossing currently employs more than 700 people and 365 Scottish firms are benefiting as a consequence of the contractual activity that is under way. The project is about 40 per cent complete and more than 75 per cent of the contractor procurement has been completed.
I call Annabelle Ewing, whose question should refer to Fife, please.
What collective savings have small and medium-sized enterprises in Fife made as a result of this Scottish National Party Government’s business rates package?
On an annual basis, the business rates relief package over which the Government presides saves businesses in Scotland about £570 million in reduced business rates. In Fife, more than 5,500 business properties currently benefit from the small business bonus scheme and have saved almost £36 million in business rates taxation since the Government introduced the scheme. By putting in place a business rates relief package totalling £570 million per annum, the Government does a significant amount to assist businesses in the kingdom of Fife. We deliver the most competitive proposition on business rates in any part of the United Kingdom, which is a point that the Parliament should welcome.
Economic Development Programmes (Discussions with United Kingdom Government)
Scottish Government ministers and officials are in regular contact with their counterparts in the United Kingdom Government about a range of issues affecting economic development. Those include the proposed small business strategy being developed by the Department for Business, Innovation and Skills, the start-up loans scheme and its extension to Scotland and European structural programmes as examples of current areas of discussion.
The cabinet secretary will be aware of the call that is being made by Glasgow City Council for a greater role for local authorities in economic development and the proposal that both the UK and Scottish Governments should work together with the council and other local authorities in the region to develop a city deal for Glasgow similar to those agreed for comparable cities in England. Does the cabinet secretary support such an approach, which recognises the importance of city regions as major drivers of the Scottish and United Kingdom economies?
Much of that ground has been covered by two things. The first is the work that the Scottish Government has taken forward over a number of years on the Scottish cities alliance, which was designed to recognise the significance of cities and their role in the wider economy and to encourage and facilitate their development.
South Lanarkshire Council (Economic Development Discussions)
Ministers and officials regularly meet local authorities across Scotland to discuss a range of issues including supporting economic growth.
Does the cabinet secretary agree that it is vital that South Lanarkshire Council prioritise economic development in East Kilbride so that the town’s position as Lanarkshire’s most successful business location is maintained? Will he assure me, therefore, that the Scottish Government’s support for the work of the East Kilbride task force is on-going?
I certainly acknowledge the issues that Linda Fabiani raises. She has put those points to ministers on a number of occasions. The task force that South Lanarkshire Council established is crucial in taking forward this area of work. The Scottish Government’s interests in this respect are represented by the participation of a senior director of business infrastructure from Scottish Enterprise on the East Kilbride task force.
“Stabilisation and Savings Funds for Scotland”
The Scottish Government is grateful for the work that has been undertaken by the experts on the working group in developing its proposals for a stabilisation fund and a long-term savings fund.
I thank the cabinet secretary for his very full response. Has any thought been given as to how to ensure that the establishment of a fund to benefit future generations of the Scottish people—along the lines of the one that has been established in Norway—will actually deliver to people in the whole of Scotland?
The working group has set out a detailed model for the operation of a long-term savings fund, which would be in place essentially to ensure that future generations benefited from the oil wealth that is generated in the current environment. The purpose of the savings fund is of course to ensure that there is an opportunity for long-term benefits to be realised by the population of Scotland. It would be for future Administrations to determine how that would be allocated and taken forward.
Proposed Community Empowerment and Renewal Bill
The First Minister announced in the programme for government that the community empowerment and renewal bill will form a key part of this year’s legislative programme. We intend to publish a consultation on a draft bill in November.
I thank the minister for that answer and for his earlier comments on empty properties in town centres. The minister will be aware of my long-standing interest in the problems that are faced by many local authorities in tackling dilapidated buildings and the negative impact that such neglected properties have on the local community.
Yes, I will. The Government will certainly consider that issue—it would be our intention to take that forward in the consultation on the proposed bill. The member asked about the timescale for the bill—the bill is a year 3 piece of legislation and is in keeping with the parliamentary timetable. I believe that we will not just fulfil but surpass our manifesto commitment. We have great support on the bill: we have the reference group and we are also working in partnership with the Convention of Scottish Local Authorities. This is an empowering Government and I think that it will be an empowering bill. I thank Jayne Baxter for her interest, as well as David Stewart, who also has an interest in the issue.
Family Budgets (Protection)
The Scottish Government has taken positive action to help support hard-pressed families and protect family budgets. That action includes measures such as freezing the council tax, maintaining free personal and nursing care, the removal of prescription charges, the provision of free eye examinations, an increase in free nursery provision, the abolition of tuition fees, providing a minimum income for students, providing the education maintenance allowance, and maintaining the concessionary travel scheme for the disabled and for the older members of our society.
I thank the cabinet secretary for his comprehensive answer. What impact will those excellent Scottish National Party Scottish Government policies have specifically on family budgets in Fife?
I counsel the Opposition against scoffing about the genuine commitments that have been made to support hard-pressed families at this time. Over the duration of the current parliamentary session, the council tax freeze will mean that band D property households will save £1,200 at a time when costs are rising and individuals are looking to the Scottish Government to provide them with practical support. Again on the council tax freeze, the average Fife Council band D property household should expect to save around £1,450 by the end of 2016-17. That is, of course, in addition to the economic benefit that people in Fife will have experienced as a consequence of this Administration being the one that abolished toll charges on the Forth and Tay bridges.
Every day families in Fife tell my colleagues that they are very keen on Ed Miliband’s commitment to an energy price freeze. Will the finance secretary commit to the same 20-month energy price freeze if he gets an independent Scotland?
Jenny Marra should not scoff at the Government’s commitments, which have delivered more substantive support to the people of Fife than any possible proposition of the leader of the Labour Party would. We are keen to defend our record, which has delivered for the people of Fife, and the people of Fife know the value of an SNP Government that is on their side.
One of the ways of helping some of the most hard-pressed families in Fife would be to provide adequate support around the bedroom tax. Will the minister now sign up to Jackie Baillie’s bill?
The problem with the point that Neil Findlay has just made is that there is no legal basis for us to deliver what he is banging on about. As Shelter Scotland has quite rightly pointed out, under the law the Government is able to deliver up to £20 million of additional support in discretionary housing payments. Where was that law set? That law was set in London by a Tory and Liberal Government that the Labour Party is quite happy to keep there and to allow to impose the bedroom tax. Before Mr Findlay passes the buck down to his pals in London and allows them to carry on legislating to harm the people of Scotland, he should start to realise that the solutions can be delivered in Scotland by the powers of independence.
Local Authority Planning Disputes (Redress)
Residents and community councils have the opportunity to make representations in respect of planning applications. It is for the planning authority to decide how much weight is given to any representation in reaching its decision. When a decision is made and a resident or community council is dissatisfied, they may seek a judicial review of the decision. When there is a concern that procedures might not have been followed correctly, a complaint can be made to the Scottish Public Services Ombudsman.
I do not know whether the minister is aware that I have been contacted by constituents with regard to the demolition of tenement properties in Colebrooke Street in my constituency. Permission to demolish was not granted, but when Glasgow City Council development and regeneration services department was contacted on the issue, it said that it was common practice and that the act of demolition is not its responsibility but that of other departments. Does the minister know whether that is normal practice for local authorities? Any advice that he can give local residents on the issue would be most welcome.
As the member will be aware, it would be inappropriate for me to comment on individual circumstances. However, if she cares to give me further details, I will have officials investigate the matter.