SCOTTISH EXECUTIVE
Finance and Sustainable Growth
Tourism (North-east Scotland)
To ask the Scottish Government what steps it is taking to support tourism in the north-east. (S3O-7708)
As with all areas of Scotland, the north-east is marketed by VisitScotland based on its considerable strengths and its ability to deliver what visitors are looking for on their visit. VisitScotland uses a range of channels, including websites, direct mail and public relations activity, to reach potential visitors across Scotland, the United Kingdom and international markets. The driving purpose is to capitalise on the north-east's many strengths, which include modern, thriving cities, a dramatic coastline, the famous malt whisky and castle trails, and fantastic opportunities for skiing and mountain biking.
As the minister will be aware, recent figures show that Scottish hotels have enjoyed a 5 per cent increase in occupancy over the summer, although Aberdeen suffered a 5 per cent decrease. Surprisingly, that largely correlates with the oil price—the Aberdeen hospitality industry relies heavily on the offshore sector. Events such as Offshore Europe, which is currently taking place in Aberdeen, can provide much-needed boosts, with about 40,000 visitors this week. What steps will the Scottish Government take to work with the business and tourism sectors in Aberdeen to compete successfully at this challenging time?
We will do so very much by direct engagement. We ran an event in the summer at the Treetops hotel, which brought together a wide spectrum of interests in Aberdeen. I had what I thought was a very positive session, with lots of outcomes, and I am more than willing to share that with the member. Just yesterday, with Offshore Europe under way, we convened the oil and gas advisory board—essentially, the board establishes the huge, bullish future that oil and gas have. The delegates at the event this week, the movement in the oil price and the energy that the Government is putting into the sector augur well for the future of Aberdeen, its tourism and its wider economy.
The minister will know that the Secretary of State for Scotland, too, was in Aberdeen yesterday. He said that he would throw his weight behind the city's bid to be UK city of culture in 2013. Will the Scottish Government match that commitment and also support Aberdeen's bid?
I can guarantee that I will talk very positively to my colleague Mr Russell on the matter, and I will maintain my connection with the north-east. Yesterday, as I have told the member offline, we held the first oil and gas advisory board, and it will continue its work at a considerable pace to ensure that we get the necessary momentum to deliver yet more funds, which will make Aberdeen yet more of a cultural centre.
This is on a different north-east matter. The minister will be aware of the recent mothballing by the National Trust for Scotland of Leith hall in Aberdeenshire. What plans does the Scottish Government have to support the promotion and marketing of historic properties such as Leith hall in an effort to attract more tourists to the area?
The member raises an important point. Engagement and discussion with the National Trust are continuing, to ensure that the trust and its properties play a fulsome part. She will be interested to know that I am hosting a visit from a Mr and Mrs McCoss this evening—they have been forthcoming in putting some money into Arduaine garden in my constituency. The more we widen the spectrum, the better. The interesting thing about the rejuvenation of Arduaine garden has been the active interest that local tourism businesses have taken. As I say, it is about widening the spectrum, with people keen to be involved and to develop assets in a more fulsome way that brings proper benefit to the local community.
Forth Replacement Crossing
To ask the Scottish Executive what action it is taking to ensure a fair deal for members of the public seeking compensation payments for the impacts of the proposed Forth replacement crossing. (S3O-7786)
Provisions will be included in a forthcoming bill, which will set out proposals for compensation that arises from the construction and operation of the Forth replacement crossing. They will follow the provisions that have already been approved in legislation for other public works.
The minister will accept that it is a complex matter and that it is causing concern among constituents, particularly those who have received letters this week so that properties can be added to the book of reference.
The member raised a wide range of issues. It might be helpful if I say that I am able and happy to make myself available to meet her and representatives from her constituency—that can be arranged in the usual way, through my private office.
I press the minister for more detail. Can he quantify the number of residents who it is anticipated will be directly affected by the Forth replacement crossing scheme and will potentially have grounds for seeking compensation from the Government as a consequence of the scheme's impact? How much has been set aside in financial contingency for home-loss payments? How much would need to be set aside if home-loss payments were to be paid at the level at which they are paid south of the border?
The member will recall that we have discussed home-loss payments in the Parliament. We do not have plans to revise the numbers. To raise payments to the levels that apply in England would require us to take substantial moneys out of the social housing budget—that is one reason why we will not do so.
The minister's answer to Margaret Smith was helpful in general terms. On a specific issue, the compensation document has thus far been sent only to people who are on the Transport Scotland database. Given the document's complexity, will the minister give a commitment that it should go directly to every potentially affected household?
I will consider the suggestion, although in saying that I exercise caution, because the document is complex, as Mr Brown correctly said, and to send it to every resident of South Queensferry, for example, not only would be unnecessary in the context of administration but, more fundamentally, might alarm many people for whom the document will not have much relevance. However, I will discuss the subject further with my officials.
Fife Council Budget 2010-11
To ask the Scottish Executive what discussions it has had with Fife Council about its budget for 2010-11. (S3O-7742)
Discussions relating to local government budgets for 2010-11 are being conducted through the Convention of Scottish Local Authorities.
Will the cabinet secretary give policy guidance to Fife Council, and to local authorities throughout Scotland through COSLA, that it is unacceptable for local authorities to impose on disabled people increases of more than £300 per month for care charges, such as has happened to my constituent from the Pringle family in Dalgety Bay and hundreds of other people in Fife, and that it is unacceptable to close old people's residential homes such as Hanover court in Cowdenbeath?
Obviously, decisions on how budgets are allocated at local level are by statute properly the responsibility of each local authority. Local authorities are required by statute to bear in mind a range of factors in setting their budgets, so I am sure that Fife Council will do that in all circumstances. Clearly, the Government's priority, which we share with our local authority partners through COSLA, is to ensure that we protect front-line services and do all that we can to support economic recovery in Scotland. Those will be the themes of the budget settlement for 2010-11.
Does the cabinet secretary agree that it really is distasteful that Mrs Eadie continues to raise the problems of individual constituents in the chamber? Is he aware that Saga, which is an organisation for elderly people, recently voted Fife Council as the best council in the whole of the United Kingdom for the services to old people? Does he agree that Mrs Eadie's efforts would be much better employed if she were to have a word with her fellow MP for Kirkcaldy and Cowdenbeath—Mr Gordon Brown, with whom she shares a constituency—to do something about the £500 million cuts that are coming our way? Would not that be a far more effective way of protecting her constituents and mine from cuts in services?
I advise Tricia Marwick that, despite obvious requirements, I am not yet reading Saga Magazine. However, I observe with interest the accolade that has been awarded to Fife Council.
I do not quite recognise the scenario that Mrs Eadie presented. Does the cabinet secretary agree that the joint administration on Fife Council has been at great pains to ensure that those who may face additional charges for their care can access funding from the public purse to help to make up for the increase?
Yes, I accept the point that Mr Tolson makes. I know that Fife Council's approach to charging for care services is not dissimilar to that of other authorities of all political persuasions—if I may put the point so diplomatically—throughout the country. Clearly, the council needs to take into account the effect of its decisions. Obviously, if the council's older people's care services are receiving the accolades to which Tricia Marwick referred, the approach that the Fife Council administration has taken is to be positively welcomed.
Renewables Industry (Meetings)
To ask the Scottish Executive when ministers last met representatives of the renewables industry and what issues were discussed. (S3O-7754)
Ministers and officials meet representatives of Scotland's renewables industry on an on-going and frequent basis to discuss issues relating to the development of what is a vibrant sector. For example, last week I met representatives of both the Buccleuch group and Northern Energy Developments Ltd to discuss the development of bioenergy projects across Scotland. At the strategic level, our engagement includes the forum for renewable energy development in Scotland—FREDS—which I co-chair and which has met three times so far this year. The renewables sector is also well represented on the Scottish energy advisory board, which the First Minister chairs.
Like me, the minister no doubt looks forward to the boost in the microrenewables industry that will result from the council tax discount incentive that all parties voted for in the Climate Change (Scotland) Bill. What steps is the Scottish Government taking to ensure that the renewables industry is well placed to make the most of that job creation opportunity? Is he confident that training is available to maximise the resulting employment opportunities?
The member highlights an important aspect. The answer is that, yes, we are in a very positive position due to the work of FREDS and because of what we have done to consolidate the position: the passing of the Climate Change (Scotland) Bill; the consultation on low-carbon vehicles; the Government's 10 specific energy pledges, which will help to support the point that the member asked about; the consultation on the energy efficiency action plan, which has huge implications for the economy; the renewable heat action plan; the carbon capture and storage study; and the renewables action plan. All of those converge on the Government's key priority of increased sustainable growth.
Will the minister say what the Government is doing to encourage very small-scale hydroelectric schemes, which, given the barbecue summer that we have just had, must now be a much more attractive option for many very small landowners?
A stream of work specifically on hydro is being done within FREDS. In addition, we are looking to ensure that we back up the work that was carried out last year by Nick Forrest, who identified some 657MW of potential run-of-the-river hydro schemes, which would have minimal environmental implications.
Question 5 has been withdrawn.
Diageo
To ask the Scottish Executive whether it considers the proposals by Diageo for its operations in Kilmarnock and Glasgow to be consistent with the principles of sustainable economic growth. (S3O-7777)
This Government has set as its central purpose increasing sustainable economic growth and providing opportunities for all of Scotland to flourish. We have set targets for achieving those ambitions. Diageo's decision will have a significant impact on communities around Kilmarnock and Port Dundas, and its rejection of the task force's alternative plan to support the retention of jobs in those communities is deeply disappointing.
The World Commission on Environment and Development's report, "Our Common Future", published in 1987, which is better known as the Brundtland report, gave us the most commonly accepted definition of sustainable development. It described it as
I agree with Mr Finnie. As he knows—I think that I said so at the time—I very much welcomed the sentiments that Mr Finnie expressed in the debate on the issue that my colleague Willie Coffey initiated. He gave expression to the thinking that I think should have gone into the decision-making process at Diageo.
In Diageo's "Corporate Citizenship Report 2008", Paul Walsh says:
Linda Fabiani raises an important point. Given that we are wrestling with a range of extremely difficult pieces of economic news as a consequence of the global economic recession, when major organisations take decisions such as the one that Diageo has taken—which I read as about the long-term search for profitability rather than the impact of the recession—they must take meaningful account of their social responsibility. It is important that companies reflect that sentiment not only in their brochures and publications but in their actions into the bargain.
There is no doubt that there has been a change in the Scottish Government's approach following the Diageo announcement in the summer. Prior to that announcement, it did not take such an active approach when there were to be redundancies in other places. I welcome that more active approach, which John Swinney has spearheaded.
I am afraid that I do not agree with Mr Park that the Government's approach has changed. Perhaps there has been more publicity about and scrutiny of its approach, but Mr Park should consider a range of other announcements, including on the Vestas plant in Campbeltown, which is in Mr Mather's constituency, and on the Goldfish plant in Cumbernauld—the Government secured not only the saving of that plant but an increase in employment. The Government is actively involved wherever there are job losses or the prospect of them.
Edinburgh Trams
To ask the Scottish Government what discussions the Cabinet Secretary for Finance and Sustainable Growth has had with the City of Edinburgh Council in the last 12 months on the subject of the Edinburgh trams project. (S3O-7721)
The cabinet secretary and I have had no discussions with the City of Edinburgh Council on the trams project over the past 12 months.
The tram chiefs have admitted that the project will fail to be completed on time and on budget, as the Scottish National Party Administration predicted. Does the minister agree that not a penny more of Government funding should be given to finance the project?
Members will recall that, early in the Government's life, the Conservative party, the Liberal Democrat party and the Labour Party voted to continue the trams project; we would have liberated the £500 million for other important transport projects throughout Scotland. I have made it clear on many occasions in the past that that is the limit of the Government's support. That was forced on us. We have £500 million available for the project. We have no more, and there will be no more.
I did not intend to ask a question about the trams project, but I am absolutely gobsmacked by what the minister has just said. Some £500 million of taxpayers' money—for which he is responsible—is tied up in the project. Given the difficulties that the project has had over the past year, and irrespective of the differences of opinion about whether it should have gone ahead, I am gobsmacked that he has not had any discussions on the matter with the council. Would it not have been useful to do so?
The project is entirely a matter for the City of Edinburgh Council. My officials carefully monitor the payments that we make to it, which are related to the progress that is made. They will continue to do that with the professionalism with which I always see them conduct themselves. It is important that members understand that the project is a City of Edinburgh Council project and that it is for the council to complete it.
Whisky Industry
To ask the Scottish Government how important it considers the whisky industry is to the economy of Scotland. (S3O-7720)
The food and drink sector is one of the Scottish Government's key economic sectors. Scotch whisky is one of the United Kingdom's leading export industries and is vital to both the Scottish and wider UK economies. The whisky industry generated exports worth £3 billion in 2008, and the Scottish spirits sector employs 8,700 people.
In the light of the major job losses and cutbacks that have been announced in recent months—as a Glasgow MSP, the Diageo workers at Port Dundas are obviously at the forefront of my mind—is the cabinet secretary confident that the companies that manage the whisky industry have done all that they can to maintain the volume production of Scotch whisky against the production of vodka, gin and other spirits, in which many of those companies also have an interest? The production of those other spirits can more easily be shifted to lower-cost economies.
The decisions that companies make about volumes of production are properly a matter for the companies involved. Nevertheless, we want to ensure that wise decisions are being taken about the approach to volumes in order to ensure that the whisky industry in Scotland is able to maintain the strong contribution that it makes to our economy and in recognition of the significant value that is created by the quality that is enshrined in many of the industry's products.
Does the cabinet secretary share my anger at Diageo's rushed decision to reject the proposal that was developed by the cross-party task force? Does he agree that that shows that Diageo has no soul and no regard for its loyal workforce or its heritage? Will he impress on Diageo that, if it walks out on Kilmarnock, it must make a substantial contribution to the regeneration effort to repair the damage that it will have done to a town that has served it so well?
I said publicly yesterday many times that I was deeply disappointed by Diageo's decision to reject the alternative business plan that had been put forward by the task force. I would have liked that plan to be adopted, but the company decided against that. I agree with Mr Coffey, who has put tremendous effort into trying to protect the employment of his constituents, that if Diageo proceeds with the plans that it has announced, the company must make a substantial contribution to the regeneration of Kilmarnock and assist in the recovery of an economy that will be badly damaged as a consequence of its decision. That will be a central part of what the Government discusses with Diageo in the weeks and months to come.
Environmentally Friendly Buses
To ask the Scottish Executive what action is being taken to promote the use of more environmentally friendly buses. (S3O-7718)
The Scottish Government is keen to incentivise the use of environmentally friendly buses and we are currently considering changes to our bus policy to achieve that.
The minister will be aware that Scotland's biggest bus manufacturer, Alexander Dennis, is based in my constituency and employs some 1,000 workers. He will also know from my representations to him that Alexander Dennis is a world leader in hybrid bus technology. I welcome the consideration that the Government is giving to a scheme to promote the use of environmentally friendly buses, but can he tell us when he expects such a programme to be implemented? He will agree that such a programme will assist in ensuring that the Government's ambitious carbon reduction targets are met and that valuable employment is secured in my constituency.
The member may be interested to know that, within the past two hours, I have discussed that very subject with the Confederation of Passenger Transport. It forms part of our rebalancing of the bus service operators grant scheme to ensure that it has a more environmental focus. I absolutely respect the member's comments in relation to Alexander Dennis, in which he expressed a view that is widely held across the industry and in society. We are making best progress and hope to have something more material to say on the matter in the not-too-distant future.
Question 10 was lodged by Ken Macintosh but he is not in the chamber.
Tennent's Brewery
To ask the Scottish Executive to what extent it considers the Tennent's brewery at Ladywell in Dennistoun contributes to the drinks industry. (S3O-7709)
The Wellpark brewery produces Tennent's, a nationally recognised brand, as well as a number of other lines. Tennent's lager is Scotland's leading lager brand by volume. The Wellpark brewery makes a significant contribution to the drinks industry in Scotland.
Tomorrow, along with Anne McLaughlin MSP, I will meet the new owners of Tennent's. At that meeting, I will show a willingness to work with the C&C Group to market both Glasgow and Scotland as core parts of the Tennent's brand in much the same way that C&C used the strength of brand Ireland to market Magners cider successfully. Does the cabinet secretary agree that, in a week in which we have witnessed job losses from Port Dundas, the potential action of the new owners of Tennent's in taking Tennent's lager to the next level by developing the Tennent's brand in such a way could be of huge benefit not only to the company, but to its workforce and to the economies of both Glasgow and Scotland?
I spoke with John Dunsmore, the chief executive of the C&C group, on 27 August, which was the day on which the acquisition of Tennent's was announced. I indicated to him that the Government welcomes the investment that has been made in Scotland, and we have opened a constructive dialogue with C&C, which we will certainly continue in the period ahead. We want the company to exercise its full potential in the Scottish market.
Voluntary Sector Funding
To ask the Scottish Executive what discussions it has had regarding funding for the voluntary sector. (S3O-7747)
We have established an effective and on-going dialogue with the third sector over the past two years. That dialogue has supported the emergence of a clear role for the Scottish Government as an investor in the third sector—pump priming the sector's capacity to be an effective partner—and as a funder of the basic infrastructure on which the sector depends.
The cabinet secretary will be aware of the growing concern in areas such as the Highlands and Islands regarding cuts in funding to the voluntary sector. Although closer working is always welcome, it should not be used to slash by up to 70 per cent funding for councils for voluntary service in areas such as the Highlands and Islands. Will the minister take this opportunity to reassure CVSs in the Highlands and Islands that they will not face such a funding cut?
There is an inherent contradiction in the question that Rhoda Grant asked. On the one hand, she acknowledges the need for closer working, but on the other hand, she attacks the mechanism by which closer working is being encouraged.
What can be done about continuation funding for services such as those provided by TYKES and the Crossroads care scheme in east Sutherland when an agreed package—whether from the lottery or elsewhere—comes to a time-limited end? Both those organisations receive non-Government funding, but that funding will run out at some point. What audit does the Scottish Government do to pick up such organisations in a constructive way when that cut-off date comes?
Mr Stone raises a challenge for the third sector that is important, although not new. Many organisations have time-limited funding streams and, in a number of regrettable cases, when that funding comes to an end, the project comes to an end as well.
Economic Development (North Ayrshire)
To ask the Scottish Executive what action it is taking to assist economic development in North Ayrshire. (S3O-7765)
The Scottish Government remains focused on delivering our core purpose of increasing sustainable economic growth across Scotland, including in North Ayrshire.
I thank the minister for his answer, but given the developments at Diageo during the past 24 hours and the fact that my constituency of Cunninghame South already has one of the highest unemployment levels in Scotland, what action will the Government now take to create further employment opportunities in North Ayrshire? Will the Scottish Executive consider kick-starting economic development with some much-needed transport infrastructure projects? Will the minister consider the possibility of relocating civil service jobs? Will he consider restoring the previous Scottish Executive's route development fund to send a clear message to the people whom I represent that the Scottish Executive supports and has confidence in the local area? That support, as the minister will know, is crucial to business.
I can promise the member that we will build on the cohesion that has been created through the Diageo campaign and during the summer, when we had people from South Ayrshire, North Ayrshire and East Ayrshire in the room together. We will work openly with her on the issues—I welcome the fact that she has made herself available for regular updates with Scottish Enterprise west region. In the spirit of openness and cohesion, we look forward to doing everything that we possibly can to remedy the situation and get Ayrshire back on a stronger, firmer footing.
I am aware that some of the minister's officials are in Dalry in my constituency today to discuss training requirements with DSM Nutritional Products (UK), which is one of the largest private employers in North Ayrshire and which I visited with Mr Swinney.
The member makes a number of valid and interesting points, and has wisely done so within earshot of the Minister for Transport, Infrastructure and Climate Change; I am sure that he heard—and will reflect on—all of it.
Local Government (Funding Pressures)
To ask the Scottish Executive what representations have been made to it by the Convention of Scottish Local Authorities regarding COSLA's anticipation of significant funding pressures over the next 10 years. (S3O-7763)
COSLA is fully aware of the forecast from independent experts that suggests that, as a result of the high levels of debt that the United Kingdom Government now has to service and the impact of the current recession, we can expect year-on-year real-terms reductions of between 2 and 4 per cent in the Scottish budget, right through the next spending review period and possibly beyond. Reductions of that size for that period would be unprecedented.
In response to the call for evidence for its local government finance inquiry, the Local Government and Communities Committee has received written evidence that the council tax freeze is not sustainable. That view was supported by Unison and Unite representatives at the committee's meeting yesterday. Has COSLA represented that view to the cabinet secretary, and does he agree that the council tax freeze is not sustainable?
I think the council tax freeze is sustainable. It has been welcomed around the country, because many householders were getting fed up of the sky-high increases in the council tax that were started by the Conservatives in the 1990s and fuelled by the Labour Party and the Liberal Democrats through the start of this century.
I am afraid I must conclude questions on finance and sustainable growth; I will allow a few seconds for members to change places for the next item of business.
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