SCOTTISH EXECUTIVE
Finance and Sustainable Growth
West Dunbartonshire Council (Schools Capital Funding)
To ask the Scottish Executive what capital funding mechanism, apart from the existing schools regeneration project, will be available to West Dunbartonshire Council for schools over the next three years. (S3O-4078)
West Dunbartonshire Council will be aware of all the various funding routes for major capital projects. They include direct capital allocations—both grant and supported borrowing—in the local government settlement and opportunities for prudential borrowing. We are providing local authorities with almost £3 billion of capital resources over three years, which is an increase of £115 million this year and in each of the next two years, to secure investment in schools and other infrastructure, according to authorities' own priorities.
The minister will recall the First Minister's commitment to match Labour's school building programme "brick for brick". Let me share with the minister yesterday's response from Maureen Watt to my parliamentary question, in which she spoke about the £115 million extra capital this year and for the next two years. When that is divided by 32 local authorities, it comes to roughly £3.5 million each. A new Dumbarton academy—which has not been taken forward by the Scottish National Party—will cost at least £25 million.
I would have thought that Jackie Baillie would have taken a different tack today, rather than adopting the failed tactics that the Labour Party used yesterday. I persist in living in hope of the Labour Party changing direction towards a more positive route.
We get a different story from Mr Iain Robertson, the SNP leader of West Dunbartonshire Council. Mr Robertson says that there is no money and no prospect of getting any money. Should I refer him to the Cabinet Secretary for Finance and Sustainable Growth, or should I refer him and others who wish investment to be made in education in my and Ms Baillie's constituencies to Sir Angus Grossart?
I suspect that having a constructive discussion with both would help—one that is based on evidence. Sadly, evidence was missing from Mr McNulty's contribution to Radio Scotland's news programme this morning, in which he asserted that not-for-profit vehicles do not work. That was a strange proposition, given the construction work that is proceeding under the non-profit-distributing model in schools in Falkirk, to name just one local authority area. I suggest that Mr McNulty and Jackie Baillie play a constructive role in the discussion on the Scottish Futures Trust. I would be happy to discuss the matter with them at any time.
Economic Strategy
To ask the Scottish Executive what assessment it has made of the merits of its economic strategy in relation to the Council of Economic Advisers' recommendations on education, skills and lifelong learning. (S3O-4121)
The Government's economic strategy is focused on realising Scotland's huge economic potential. The Council of Economic Advisers commented on the strategy at an early stage and recognises the key role that education, educational institutions, skills and lifelong learning will play in meeting the targets in the strategy, including our overarching purpose of sustainable economic growth. The council made a number of initial recommendations to the Scottish Government at its third meeting on 13 June, and it sets out its recommendations in full in its annual report, which is due to be published by the end of this year.
The Council of Economic Advisers referred to the need to ensure that students regard education as a personal investment and to the importance of closer links between universities and the business sector. Therefore, does the cabinet secretary agree that it would have been sensible for the Cabinet Secretary for Education and Lifelong Learning to have allowed the business sector to be represented on the Government task force that is reviewing the future of our universities?
I reassure Elizabeth Smith that the Government is closely involved in discussion with the business community about the skills needs of the Scottish economy and the business community in particular. On Monday, the Cabinet Secretary for Education and Lifelong Learning and I chaired one of the regular forums of the economic organisations that are involved in planning our contribution to the economic strategy, which include Scottish Enterprise, Highlands and Islands Enterprise, Skills Development Scotland, the Scottish Further and Higher Education Funding Council and VisitScotland. We try to ensure that all our policy interventions, particularly those of the funding council and Skills Development Scotland, are closely aligned to the needs of the business community.
The Council of Economic Advisers also recommended the commissioning of an independent assessment of the relative costs of different electricity generating technologies, including nuclear. When will the Scottish Government commission that assessment and who will carry it out?
The work will be taken forward by the Scottish Government in consultation with the Council of Economic Advisers. How the work will be developed is currently a matter of internal consideration. Of course, as with all matters that relate to the Council of Economic Advisers, we will keep the Parliament informed of developments in relation to that recommendation.
Ferry Service (Campbeltown to Ayrshire)
To ask the Scottish Executive, in light of the threat of closure of the Vestas factory at Campbeltown and local concerns about the delay in re-establishing the Campbeltown to Ballycastle ferry service, whether it will support the establishment of a new ferry route between Campbeltown and mainland Ayrshire. (S3O-4114)
Consultants who were commissioned by the Scottish Government and the Northern Ireland Executive are currently undertaking a Scottish transport appraisal guidance appraisal of the proposed Campbeltown to Ballycastle ferry service. It is anticipated that the completed STAG appraisal will be delivered shortly. When the final report becomes available, ministers in Scotland and Northern Ireland will consider the costs and benefits that are associated with the proposed service and will reach a decision about the way forward.
Will the minister acknowledge that even without the loss of jobs at Vestas the Kintyre and Campbeltown economy is under severe pressure and desperately needs new investment? Will he also acknowledge that although we all want the Campbeltown to Ballycastle ferry service to resume as soon as possible, a ferry service from Campbeltown to mainland Ayrshire would mean that businesses and potential new businesses in Campbeltown could get their goods to major new markets, which would be crucial? Will he ask his officials to consider the option seriously?
We place the highest value on ensuring that Kintyre has the economic opportunities that it requires. That is why we are considering the Campbeltown to Ballycastle route and why we included in that consideration the option of the extension of the service to Ayrshire. That is an entirely new proposal, which the Government has not considered before. We certainly take the prospect seriously, and I hope to have something more concrete to say on the matter in the not-too-distant future.
Will Ardrossan, a port in my constituency that has excellent rail links, be considered as the Ayrshire port of first choice, should additional ferry services to Ireland or Kintyre be introduced?
Mr Gibson is right to represent his constituency's interests, as we all do in our contributions. Ardrossan will of course be considered. Until I have received and analysed the STAG report, I cannot make the commitment for which he asks, but Ardrossan will certainly be seriously considered.
Does the minister recall that previous assessments of the viability of ferry routes to and from Campbeltown took into account the advantages of the Vestas manufacturing facility there and the prospects for passenger and commercial traffic that arose from that? What assessment has he made of the potential impact on the STAG assessment of routes of the closure of the Vestas factory? What indication has Vestas given of the importance of those routes to the decision-making process in which it is involved?
It is clear that events in Campbeltown will affect consideration of the STAG appraisal. If the Vestas factory is to close, that reinforces the case for our considering every opportunity that we can find to create an economic future for Campbeltown and the Mull of Kintyre. I assure the member that that is our priority.
When will the STAG report be published? Given what the First Minister said on the subject when he met Northern Ireland's First Minister, does the Government support in principle the extension of the route to Ayrshire?
John Scott is correct to refer to discussions between Northern Ireland's First Minister and Deputy First Minister and our First Minister and me some months ago. We must work with administrations on the other side of the channel. We must talk to local authorities, such as Moyle District Council in Northern Ireland, which is engaged in the issue. All the relevant parties are engaged. Serious consideration is also being given to a potential link between Campbeltown and Ayrshire.
Credit Unions
To ask the Scottish Executive how it supports individual credit unions and regional networks of such unions. (S3O-4168)
Credit unions are key organisations that help to combat financial exclusion. Consequently, our fairer Scotland fund underpins local authority support for credit unions. In addition, the Scottish investment fund has offered a new means of support from 1 September for credit unions that are prepared to make a transformational step change in their activity.
Several credit unions in South Lanarkshire have expressed concern about their limited access to the fairer Scotland fund. The information that I have received suggests that some regulations exclude them from drawing down money from that fund.
The issue should be considered in the wider context. In addition to the fairer Scotland fund, we have established the Scottish investment fund and the third-sector enterprise fund, which is the most likely source of funding for credit unions that intend to become more socially enterprising.
Does the minister have information on the number of councils, health boards and other public bodies that have helped to establish staff credit unions to benefit employees and their families? Will he encourage such bodies to establish credit unions?
In preparing to answer question 4, I found that Scotland has 115 credit unions, of which 13 were established by councils and other public bodies. However, the bald fact is that it is up to the employers whether they wish to set up a credit union and encourage staff members to join it. Clear benefits are associated with workplace credit unions, such as the deduction of monthly savings at source. However, there is nearly full coverage in Scotland of existing credit unions. That complements any new initiative that might take place in the workplace.
HM Treasury (Funding Mechanisms)
To ask the Scottish Government what recent discussions the Cabinet Secretary for Finance and Sustainable Growth has had with HM Treasury about funding mechanisms. (S3O-4140)
I have made representations to the Treasury on a number of funding matters recently, including police and fire pensions, the fossil fuel levy, further access to end-year flexibility balances, council tax benefit and local income tax.
Given the recent dispute over the funding mechanism for police and fire service pensions, which the cabinet secretary mentioned and which has prompted Joe Grant, the general secretary of the Scottish Police Federation, to state that the Treasury should be providing funds to meet those costs, can the cabinet secretary confirm that the previous Scottish Administration knew of the pension situation in England since 2006 but disgracefully failed to ensure equity for Scottish emergency services staff by acting for them?
There are two elements to the police pensions issue that we have to deal with. The first is the change to the commutations factors that influence the calculation of police pensions, and the second is the increase in the level of police pensions expenditure as a consequence of the fact that more officers than we would normally expect are scheduled to retire over the current financial year and the next two financial years.
On the issue of funding mechanisms, has the Scottish Government had discussions with the United Kingdom Treasury, Partnerships UK or any other agency regarding revenue support for public sector borrowing under the Scottish Futures Trust? Local authorities are concerned that the existing 80 per cent revenue support for public-private partnership projects will not be replicated under the new system.
That issue will be a material part of the discussions that the Cabinet Secretary for Education and Lifelong Learning has with local authorities, as I set out in my statement to Parliament yesterday. Of course, the cabinet secretary will bear in mind the points that have been made by Elaine Murray.
Rosyth to Zeebrugge Ferry Service
To ask the Scottish Executive what progress there has been towards a replacement Rosyth to Zeebrugge ferry service. (S3O-4160)
The Scottish Government is working very closely with Forth Ports to identify an alternative commercial operator for the Rosyth to Zeebrugge route. We will continue to do everything possible to secure a successful outcome.
I thank the minister for staying in touch over the summer on this issue, on a cross-party basis. As he knows, the issue is close to the hearts of many members.
I welcome the constructive engagement from John Park and other members on the issue. It is helpful for us to work together and share confidences with one another on progress. I share John Park's serious disappointment at the relatively short notice that we were given on 28 May of Attica's intention to withdraw the service, which has created substantial difficulties. In my remarks at the time, I reflected on the fact that delivering the service without a break would be a substantial challenge.
In light of the minister's answer, is the Scottish Government prepared to commit to improvements in the ferry infrastructure at Rosyth port if the announcement about a new operator is positive?
As I said, commercial negotiations continue. We understand that the ferry infrastructure at Rosyth—in which the previous Administration made a substantial investment of in excess of £11 million—is fit for purpose.
Economic Situation
To ask the Scottish Executive what it is doing to alleviate financial difficulties faced by Scots as a result of the current economic situation. (S3O-4164)
As the Deputy First Minister made clear in the chamber last week, the Government has taken early and decisive action to help every business and household in the country that is feeling pressure from rising food and energy costs.
At the weekend, 4in of rain fell in the Bowmont valley in one hour, washing away bridges, roads, telecommunications and power lines, and isolating communities. Work has already started on repairs, and the Minister for Environment paid a brief visit this morning.
Mr Hume will be aware that the Belwin formula requires a certain range of tests to be satisfied before it can be enacted. I am certain that if such circumstances have arisen in relation to the incident to which he refers, Scottish Borders Council will be in touch with the Government. I am glad to hear that the Minister for Environment was able to visit and see the circumstances for himself.
In view of the fact that many of the financial difficulties that all Scots are facing result from rising fuel costs, which have made the cost of fuel in some areas of Scotland the highest in the world, will the cabinet secretary make a further approach to the Chancellor of the Exchequer and ask him to initiate in the near future a fuel tax regulator scheme to reduce fuel prices?
I assure Mr McKee that those representations will be made to the United Kingdom Government. I wrote to the chancellor some weeks ago about the matter, and that was not the first time that I had done so. I hope that, in his pre-budget report or in any other interventions that the United Kingdom Government makes, he will take action to apply a fuel tax regulator scheme. I assure the member of the consistency of the Scottish Government's representations on the matter.
Enterprise Network (Local Outcomes)
To ask the Scottish Executive what steps it is taking to improve the recording and reporting at a local level of outcomes achieved by the restructured enterprise network. (S3O-4131)
The Scottish Government is working with Scottish Enterprise and Highlands and Islands Enterprise to develop a performance measurement and evaluation framework that is focused on national outcomes as set out in the Government's economic strategy. At a local level, as members of community planning partnerships, Scottish Enterprise and HIE will contribute to the outcomes that are set out in each local authority's single outcome agreement.
I thank the minister for his answer, but can he give me a further assurance that all levels of the restructured enterprise network will be able to demonstrate and report on how they are helping to deliver a wealthier and fairer Kilmarnock and Loudoun, for example?
I am delighted to do that. The commitment is material. Scottish Enterprise is maintaining its Kilmarnock office. I was there on 27 August with the community planning partnership, with which Scottish Enterprise is thoroughly engaged. I sat through a session that lasted about two and a half hours, during which we identified the key measures that the community planning partnership wants to monitor. They include the number of people in work, average wages, the number of business start-ups, the net number of active businesses and so on. We made a constructive start to the process. The single outcome agreement in East Ayrshire will deliver not only shared outcomes but a new, shared sense of purpose.
Glasgow Airport
To ask the Scottish Government what discussions it has had with local authorities about the impact of the proposed sale of Glasgow airport by BAA. (S3O-4147)
We have had no discussions with local authorities on the Competition Commission's market investigation of BAA or any potential sale of Glasgow international airport.
The minister will be aware that Glasgow airport is self-regulated by BAA, which has an impact on the local authorities that surround the airport. Does the Scottish Government have any plans to discuss with the United Kingdom Government the prospect of Glasgow airport being regulated by a Government authority, as the London airports are? At present, it is run by a private company that regulates itself.
The member raises an interesting point. Airports are an important part of our transport infrastructure and contribute greatly to our economic success. However, the regulations that govern the operation of the London airports are restricted to controlling the charges at those airports. The challenge for the Scottish airports at present is more to invest in our airports to ensure that they are fit for purpose. I look forward to seeing the responses of BAA and the Competition Commission to the present inquiries. I wish to see that they will ensure that we get proper and adequate investment in Scotland's airports.
Sustainable Procurement
To ask the Scottish Government what steps it is taking to promote sustainable procurement, following publication of its joint report with Quality Meat Scotland, "Buying Red Meat: Putting into practice the Scottish Government's public procurement and sustainable development strategy". (S3O-4152)
The document that was issued by Quality Meat Scotland builds on guidance that previously was issued to the public sector on how to incorporate sustainability into the public procurement of food and catering services. That guidance is currently being updated and will be reissued.
Does the cabinet secretary share the opinion that, in light of the variable implementation of the QMS and Government sustainable sourcing guidelines by national health service boards—as revealed by the responses to letters that I recently sent them—it would be a good idea if NHS boards shared best practice? They could learn from proactive boards such as Tayside NHS Board, which is implementing a sustainable procurement action plan that includes carbon production, the supply chain and how to help local small and medium-sized enterprises into the public sector procurement market.
I am delighted to hear that Tayside NHS Board is an exemplar in supplying local produce to its patients. That will more than likely be welcome news to the farmers in the hill areas of Angus and Perthshire that I represent. I very much agree with the sentiments behind Bill Wilson's question. There is a great opportunity for us creatively and inventively to guarantee that the excellent produce that is supplied by Scotland's agricultural community is made available to all sectors of Scottish society. The public sector has a significant role to play in that process.
Aberdeen City Council (Budget)
To ask the Scottish Executive what discussions it has had with Aberdeen City Council about the council's current budget plans. (S3O-4079)
I have had a number of discussions with Aberdeen City Council about its current budget plans. Decisions on those budget plans are, of course, for the council.
Does the cabinet secretary recognise the concern in Aberdeen about the lack of transparency in the council's budget process? The administration maintains that £50 million of cuts were agreed under the most recent budget, whereas everyone else—including the cabinet secretary, according to his written answer to me in July—understood that the amount was £27 million. Does he agree that there must be full transparency on Aberdeen City Council's budget if the council is to be helped by other relevant parties to address its serious financial problems?
It is pretty clear that Aberdeen City Council has significant financial difficulties. Those are being addressed, and the Government has been involved in requiring the council to put its funds in order. I am glad to see that progress is being made with the appointment of an interim chief executive, whom I met the other day. I think that the council is focused on addressing the significant financial situation that it faces. I am glad that the council has engaged fully in addressing the issues that the Accounts Commission raised. The Government will, of course, be happy to take forward further discussions with the local authority.
Does the minister recognise that he has given Aberdeen City Council the lowest level of financial support per head of population in the country? Does he agree that there should be a level—perhaps 90 per cent—below which no council in Scotland should fall?
That would have a significant impact on the distribution formula for local authority funding. I have made it clear that I am considering the distribution formula in consultation with our local authority partners. The suggestion that Mr Rumbles has made could be considered. However, I point out to him that the methodology that was applied for distributing resources to local authorities for the period 2008 to 2011 was exactly the same as the one that we inherited from the previous Administration, of which Mr Rumbles was an enthusiastic supporter.
Can the cabinet secretary spell out a little more what progress has been made on addressing the financial difficulties of Aberdeen City Council? Can he confirm that the financial formula for distributing funds is indeed under serious review?
Aberdeen City Council is very much engaged with the challenge of addressing its budget difficulties. I discussed the issue in some detail with the interim chief executive earlier this week. Let me also put it on record that I welcome the appointment of the new chief executive, Sue Bruce from East Dunbartonshire Council, who will take up office later this year.
Local Income Tax (Students)
To ask the Scottish Executive how many students will be liable to pay local income tax. (S3O-4124)
We are currently considering the responses to the consultation exercise, including representations made by student bodies. It would be premature to anticipate the outcome of that consideration. A further announcement about the detail of the Government's plans will be made in due course.
I guarantee that, however many it is, it will be more than are currently paying council tax. The Government broke its promise to write off student debt, it wants to turn students into criminals for buying a bottle of wine or a few cans of beer to drink in their hall of residence, and now it intends to clobber them with the unfair, unworkable and discredited local income tax. Why does the Government hate students so much?
Oh, Mr Fraser has excelled himself in expressing his terribly depressing view of the world. I am surprised at that.
Efficiency Savings
To ask the Scottish Executive what impact the higher than expected level of inflation is having on the Scottish Government's efficiency savings target. (S3O-4116)
Changes to the level of inflation will have no impact on the Government's efficiency savings target. Our published guidance makes it clear that inflation should not be considered when calculating either the baseline or the efficiency saving.
We all appreciate that higher than expected inflation will make it rather more difficult than anticipated to reach the target. Will the cabinet secretary assure us that the efficiency targets that are set out in the Government's efficiency savings programme, and those on which it would rely for local income tax, will be delivered?
Mr Brownlee, quite uncharacteristically, is falling into the rather depressing view of the world to which Mr Fraser has just treated us. I assure Mr Brownlee that the Government remains focused on delivering its efficiency savings targets, as he would expect us to be.
Renewable Energy Planning Applications (Objections)
To ask the Scottish Executive how many renewable energy projects have been the subject of an objection to the relevant planning application by Scottish Natural Heritage in each of the last three years. (S3O-4146)
During the past three years, SNH has commented on 1,504 renewables projects and had no objection to 89 per cent of them, which is 1,345 renewables projects. SNH had an outright objection to 74 cases. It also delivered a conditioned objection in a further 85 cases where it considered that any adverse impacts on the natural environment could be reduced to an acceptable level through conditions.
I draw the minister's attention to the Bankend Rig wind farm project in South Lanarkshire, where SNH has taken up to two years to respond one way or the other. Will ministers seriously consider placing a deadline on SNH for turning around decisions on such matters, so that it can join the rest of the Government machine in promoting renewable energy rather than acting as a hindrance?
The key point is that, increasingly, SNH and other statutory consultees are aligned with increasing sustainable growth. SNH clearly supports energy efficiency and a mix of energy sources, and it is working with us and with councils on Scottish planning policy 6 and locational guidance.
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