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Chamber and committees

Meeting of the Parliament

Meeting date: Tuesday, January 13, 2015


Contents


Topical Question Time


Severe Weather (Power Supplies)

To ask the Scottish Government whether it will provide an update on efforts to restore power supplies affected by severe weather. (S4T-00896)

The Deputy First Minister and Cabinet Secretary for Finance, Constitution and Economy (John Swinney)

The weekend saw Scotland endure some of the worst weather for many years, with four exceptional weather events on four consecutive days. The front-line workforce in the power supply companies managed to battle through very difficult conditions, stay safe and restore customer supplies into the bargain. On behalf of the Scottish Government, I express our sincere thanks to those front-line workers, to those from other distribution network operators who provided additional resources and to those in the contracting community who travelled long distances and endured long and hard working conditions and hours to assist in the restoration effort.

On 8 January, the total number of homes that were affected by the weather was 111,000. A total of 918 homes were without power for over 48 hours. However, I am pleased to say that the last few customers who were off the electricity supply following the weekend storms have now been reconnected.

What multi-agency support was provided for households that were affected by power outages over a sustained period of time?

John Swinney

Over the course of the weekend, I convened a number of meetings of the Government’s resilience operation, supported by the transport minister, Mr Mackay, and the environment minister, Dr McLeod. I worked with agencies such as the Met Office, the transport companies First ScotRail and Network Rail, the power utility companies SSE and Scottish Power, the Scottish Environment Protection Agency, the Maritime and Coastguard Agency, Transport Scotland and a variety of other organisations, including our local resilience networks.

Given that a number of customers were off supply for a significant period of time, one of the things that we concentrated on most directly was the availability of integrated welfare support to members of the public who were off supply. I compliment the power companies, local authorities and various other bodies at the local level for working constructively together. On one occasion, facilities were made available on a Caledonian MacBrayne vessel that was berthed at Harris to provide support to individuals who were without power on that island. That shows just some of the imagination that went into trying to support people in a very difficult set of circumstances.

Mike MacKenzie

I note that the cabinet secretary thanked all those involved, but will he extend a particular thanks to the crews, engineers and men who climbed up the poles who worked tirelessly in very difficult weather conditions to restore power to the homes throughout Scotland that were affected?

John Swinney

I have written today to the chief executives of Scottish Power and SSE to ask them to convey to their staff, as I have done publicly, our enormous debt of gratitude to individuals who endured truly shocking conditions in trying to restore power supplies. I have seen in the media a number of members of the public expressing their appreciation, having lost their power supply and having lived through the conditions that they did over the past few days, of the determination of the power supply workers to restore supplies. I am very happy to put that comment on the record on behalf of the Scottish Government, and I have asked the power companies to convey our thanks directly to the staff who have been involved.

Murdo Fraser (Mid Scotland and Fife) (Con)

I am sure that all members will want to associate themselves with the tributes that have been paid to the engineers and others who have worked very hard to help those in need.

In view of the increasing incidence of extreme weather, does the cabinet secretary think that it is time for a review of the transmission infrastructure more generally to ensure that it has the appropriate resilience to deal with such events?

John Swinney

Those questions are consistently assessed by the distribution companies and lessons are learned from our experiences.

When we look at the scale of the disruption experienced and the recovery operation, we can draw two conclusions. First, the scale of the incidents with which we have been wrestling is exceptional in terms of the intensity of the wind strength, its impact and the damage caused. Secondly, in terms of resilience, the power companies are able to mobilise significant resources to address the issues.

A point that struck me in preparing for what happened—we were involved in discussions with power companies long before any of the damage happened—was the degree to which the power companies were following the Met Office’s forecasts and putting in place resources in different parts of the country where they did not already have such resources, to ensure that they were ready for the damage when it came. That is an example of the significant approach to resilience that is taken by the power companies.


Storms (Transport Disruption)

To ask the Scottish Government what action it has taken to resolve transport disruption caused by recent storms. (S4T-00886)

The Minister for Transport and Islands (Derek Mackay)

Last Thursday evening, Transport Scotland and partner organisations activated the multi-agency response team to oversee the direction of resources on the trunk road network.

As members have just heard, the Deputy First Minister and I chaired regular resilience meetings to maintain contact with our key partners throughout the period of disruption and recovery.

ScotRail and Network Rail planned to operate a curtailed timetable last Friday and widely publicised the likelihood of disruption in advance. However, the storm had a greater impact on services than anticipated and a suspension of all rail services was deemed necessary.

During the recovery, Network Rail had 400 staff available to repair overheard cables and to remove obstacles from rail lines, including more than 500 trees. The scale of the storms brought travel disruption, with the cancellation of ferries and the temporary closure of some road bridges due to the high winds. There were fallen trees and debris on the roads and rail lines right across the country. I also thank all front-line staff who helped with the clearance efforts, sometimes during very difficult conditions and at all hours of the day and the night.

Similar arrangements are in place for the various Met Office amber and yellow warnings for snow that are valid across much of Scotland from this afternoon.

David Stewart

The recent storms were unusual—they were a one in 10-year event. Will the minister review whether the road network has sufficient variable message signs covering hotspots, particularly in more rural and remote areas? Is he confident that the messages conveyed are accurate? Could better use be made of virtual snow gates, which are flashing signs that warn if the road ahead is adversely affected by snow, wind or rain, and that drivers should turn around at that location?

Derek Mackay

Over the past number of years, we have made considerable progress in our resilience and response efforts. We have been able to deploy staff and teams where they are required, and advance planning is important in that regard.

On the use of VMS, I will look again at how we use such signage to give accurate, up-to-date information in addition to the other sources that we have, including radio, websites and Twitter. Of course, drivers will see live, real-time signage, and we will ensure that that is as helpful as it can be during such incidents. I add, though, that some signage was affected by power outages and so on. We cannot avoid that, but mobile units may be even more helpful in such situations.

We will take every action possible to get information to drivers and travellers so that they can travel as safely as is possible.

David Stewart

Will the minister in future review the design of new road constructions, such as the dualling of the A9? Is there a need to have greater provision to cope with flooding, particularly by building super-large storm drains, such as those that are developed across the United States?

Derek Mackay

We want new roads to be constructed to the highest standard and designed for the conditions that prevail in Scotland. We must bear in mind that we are talking about particular disruption over the past few days, as a result of high winds, followed by rain and more high winds—and now snow and ice. I am happy to look at further evidence; we will explore any engineering solutions that can cope with the changing Scottish weather.

Sandra White (Glasgow Kelvin) (SNP)

The minister will be aware that on Sunday 11 January a convoy was transporting nuclear weapons on the M74 and M8, in terrible weather conditions. What advice, if any, was the minister or the Scottish Government given about the safety of the population of greater Glasgow, which the convoy passed through, during the period of disruption as a result of the severe weather?

Derek Mackay

Just as warnings were given across the country, various information was put out about checking sources of information. There was a clear message to drivers to drive with caution and to the conditions, and there were some restrictions on bridges, for example for high-sided vehicles.


First Milk (Assistance for Dairy Farmers)

3. Michael Russell (Argyll and Bute) (SNP)

To ask the Scottish Government what action it is taking to assist dairy farmers contracted to First Milk who have been notified over the weekend of a further reduction in price and the postponement of payments due. (S4T-00893)

The Cabinet Secretary for Rural Affairs, Food and Environment (Richard Lochhead)

It is understandable that many farmers are disappointed and anxious following the recent announcement by First Milk. I spoke to the company’s chairman, Sir Jim Paice, last week, and he confirmed that the company has taken a decision to protect its long-term viability, against a backdrop of continuing uncertainty and volatility in the global dairy sector.

I will conduct a number of meetings in the coming days, including one with the National Farmers Union Scotland and other industry representatives tomorrow, to hear at first hand about the impact. I hope to meet First Milk next week to get a further update.

The Government will continue to make every effort to support our farmers in difficult times. We are taking forward a number of workstreams through our recent dairy review, ambition 2025. In particular, we encourage farmers to contact the recently launched dairy hub, which is a free service that offers advice and support on a range of issues.

We are also looking for retailers in Scotland and throughout these islands to support local producers and pay a fair price for dairy produce.

Michael Russell

I am grateful to the cabinet secretary for the concern that he has shown. He will be aware that there are 51 dairy farmers in Argyll and Bute who are members of and suppliers to First Milk. They feel badly let down by the company, which from 1 February will pay 18p per litre—12.5p per litre less than it was paying on 1 June, 5.5p less than the nearest payment for other suppliers, and at least 7p less than the lowest cost of production.

In addition, First Milk’s capital retention and delayed payment schedule are causing insecurity, worry and hardship. In Kintyre, the problem is added to by the question mark over the creamery and the lack of uptake by First Milk of investment that has been offered.

Will the cabinet secretary agree to meet a delegation of dairy farmers from Kintyre and Bute, to hear at first hand about the issues and hardships that members of First Milk face? Will he also intervene urgently to ask the banks not to take precipitate action, particularly in relation to member suppliers to First Milk, until the matter is resolved?

Richard Lochhead

Michael Russell has rightly highlighted the fragility of many businesses in his constituency. The problems that he described will be replicated in other island and rural communities in Scotland, given the importance of the dairy sector in such communities. I will be happy to meet him and a delegation from his constituency in the near future; no doubt we can arrange that shortly.

Michael Russell also made a good point about contacting the banks. I often meet the banks to discuss issues that our rural industries face and I would be happy to arrange such a meeting in the near future to follow up the points that he has made.

I call Alex Fergusson.

Thank you, Presiding Officer—

Forgive me. I should have called Mike Russell again.

Michael Russell

Thank you, Presiding Officer. I thought it was something that I had said.

A key issue that First Milk has made much of is the downgrading of world demand for milk. Another important issue, which I know the cabinet secretary is aware of because of his passionate advocacy of Scottish food, is the extraordinarily low price of milk in supermarkets. When supermarkets are selling milk at less than the cost of water, something is wrong. The message needs to go from this chamber—from the cabinet secretary, who has greatly supported Scottish food—to supermarkets and the public that the price of milk must be realistic if it is to support the dairy industry in Scotland. What actions might the cabinet secretary take, and what actions might the Government take in its food policy, to ensure that there is realism about the price of milk? A pint of milk cannot be produced for less than a pint of mineral water.

Richard Lochhead

A range of factors are affecting the price of milk at the moment, including the decline in demand from China and the Russian food import ban, which means that there is more dairy produce in Europe to be sold. The increase in the supply of dairy produce in Europe has meant that the price has gone down. There is also the fact, which Mike Russell rightly highlighted, that milk has been devalued, given the amount of effort that is put into producing liquid milk, which we all require in order to live our daily lives and buy as consumers, and is now being sold at the rate of four pints for 89p in some key supermarkets. It is a pity to see such a good product being devalued. That highlights the need to add value to the product in Scotland to ensure that we have better food security in the future. In the meantime, I will take Mike Russell’s suggestion to our retailers, who must ensure that they do not devalue the product but pay their suppliers a decent price for it.

I now call Alex Fergusson.

Alex Fergusson

I have great sympathy with Mike Russell’s constituents given the fragility of the situation, and I assure the chamber that that fragility is not confined to Argyll and Bute—the whole of the south-west of Scotland is affected. It is worth noting that, if the worst happened and First Milk collapsed, there would be a further 800 million litres of milk looking for a home across the United Kingdom. The principal reason for the disastrous fall in the price of milk that has been mentioned is the massive surplus of liquid milk on world markets at the moment, and that is outwith any individual dairy farmer’s control. What steps have been taken, are being taken and will—I hope—continue to be taken by the Government to encourage investment in further milk-processing facilities to reduce the surplus of liquid milk?

Richard Lochhead

Despite the very serious challenges that we are discussing, the longer-term outlook for dairy produce across the world is quite optimistic, with demand expected to rise dramatically. That should open up opportunities for Scottish dairy producers if we can add value to liquid milk and capture the niche markets around the world, as we have for beef, lamb, whisky and other products. That was the core purpose of the dairy review that we carried out. The plan is now being put into practice and we have a dairy growth board. A dairy hub is also being set up to give advice to dairy farmers.

The matter is certainly on our agenda. I recognise the concerns that Alex Fergusson expresses, given that the majority of dairy farmers in Scotland are based in south-west Scotland. We are paying close attention to what is happening with First Milk and to the fortunes of his constituents.

Claudia Beamish (South Scotland) (Lab)

Looking to the longer term, we want to build on what the cabinet secretary has spoken of this afternoon in support of dairy farmers. Can he reassure the chamber about the initiatives that the Scottish Government and Scotland Food and Drink are taking to support niche markets for dairy products such as Lanarkshire blue cheese and the Loch Arthur cheeses, which are made in my region? What is the Government doing to help the development of new products for the home and export markets? If he is not doing so already, will he consider featuring Scottish dairy products and producers in the 2015 year of food and drink?

Richard Lochhead

As I said, there are many opportunities to increase our dairy exports around the world. I remember leading a food and drink mission to Dubai and other markets, following which new markets have opened up for cheese exports from Scotland. It is something that we are targeting. However, as the issue that we are speaking about today highlights, there must be a lot more of that activity in the future.

Claudia Beamish has mentioned some fine cheeses. We have a lot of fantastic dairy products in Scotland, and 2015 is the year of food and drink. That gives us an ideal platform for getting the message across to the Scottish public and the wider markets beyond Scotland. We should be exporting to those markets and allowing people to enjoy our fantastic produce.

Bruce Crawford (Stirling) (SNP)

The cabinet secretary will remember that I discussed the issue of milk prices, particularly in the context of the impact on farmers in my constituency, before the Christmas recess. Can he tell us more about what we might be able to do in the longer term to support the milk-processing industry in Scotland, given the crucial role that it will have in the future? Can we learn lessons from what has happened in Denmark and Ireland, which have managed to grow their processing industries, particularly given that this year is our year of food and drink?

Richard Lochhead

We always hope to support as much vertical integration as possible in the dairy sector supply chain to capture the value of our dairy produce and to share the benefits of that across primary production and processing.

As far as the relationship between the different parts of the supply chain is concerned, the United Kingdom Government recently set up the Groceries Code Adjudicator, after many years of lobbying by many parties in the Scottish Parliament. There might be a case for the adjudicator to shine more light on contracts across the supply chain. I refer to contracts not just between the primary producers and the processors but between the processors and the retailers. We must continue to shine a light on the supply chain to ensure that everyone is getting a fair share of every pound that is spent on dairy produce.