Meeting of the Parliament

Meeting date: Thursday, June 13, 2013

Official Report 794KB pdf

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General Question Time

Good morning, everyone. The first item of business is general questions. In order to get in as many people as possible, I would be grateful if we could have succinct questions and answers.

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Scottish Islands Renewables Project

1. To ask the Scottish Government what its response is to the final report of the Scottish islands renewables project. (S4O-02252)

The Scottish Government welcomes the independent Scottish islands renewables project report, which the Scottish and United Kingdom Governments published on 15 May. It confirms that, as many of us in Scotland already know, the renewable energy resources of the Western Isles, the Orkney Islands and the Shetland Islands are significant and can make a cost-effective contribution to 2020 renewables and decarbonisation targets.

The report confirms that, with the right policy and regulatory approach, the islands can help to ensure security of supply and supply diversification and can provide up to 5 per cent of Great Britain’s total electricity demand by 2030. It also confirms that there are significant socioeconomic benefits from developing island renewables.

Does the cabinet secretary consider that the northern isles and the Western Isles have the best of all opportunities for marine and wind energy and that, if they were not connected to the mainland, they would be prevented from fulfilling their potential? If they were not connected because of a lack of support from the UK Government, would that Government, in a literal sense, be cutting off those islands and their residents from those massive opportunities?

Mr MacKenzie is absolutely right about the scale of the opportunity that exists to capture the natural energy potential in and surrounding the Western Isles, the Orkney Islands and the Shetland Islands. There is potential to create up to 3,500 jobs in the Western Isles, almost 2,900 in the Shetland Islands and more than 4,500 in the Orkney Islands by 2030.

It is essential to take the necessary steps through the electricity market reform process, to which the Scottish Government has contributed constructive suggestions about an islands uplift in the contracts for difference proposals that will be considered as part of the exercise. We are working closely with the UK Government to reach an agreement that will create the opportunities to realise the abundant energy potential in our northern and western islands.

Does the cabinet secretary agree that, following on from the working group’s excellent report, it is worth pursuing in the work that is done with the UK Government the idea of the Crown Estate underwriting some of the risk and cost of putting in place the cable infrastructure that is needed to support renewables not only in Orkney but in the Western Isles and Shetland?

Mr McArthur raises a fair point. That issue can be pursued. As he knows, the Crown Estate is not accountable to the Scottish Parliament—it is reserved—but the issue that he raises should be examined and explored as part of the constructive discussions that we are having to try to resolve the issues.

There is clearly a financial gap and, if we could close it through the suggestions that we have made about an islands uplift under contracts for difference, the suggestion that Mr McArthur made or a combination of the two, all the individuals whom he represents would welcome that. That would certainly be welcomed by the Scottish Government as an indication of how we can take forward investment proposals to realise and harness our renewable energy potential.

Chic Brodie was to ask question 2, but he does not appear to be here. I will seek an explanation from him by the end of the day.

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Superconnected Cities Initiative (State-aid Rules)

3. To ask the Scottish Government what the implications are for the ambitions set out in “Scotland’s Digital Future: A Strategy for Scotland” of the United Kingdom Government’s superconnected cities initiative funding for Edinburgh not meeting state-aid rules. (S4O-02254)

The Scottish Government is extremely disappointed that the UK Government has been unable to secure state-aid clearance for key aspects of its superconnected cities scheme. As a result of that failure, projects in Edinburgh, Aberdeen and Perth will no longer deliver ultrafast broadband access through the scheme. That could make the achievement of our national infrastructure ambitions more challenging.

However, we are collaborating with Scotland’s cities on a range of digital initiatives through the Scottish cities alliance. A key part of that work will be to ensure that any future funding for broadband in cities is planned properly from the outset, in conjunction with the European Commission, to ensure full state-aid compliance.

Does the cabinet secretary agree that, although the superconnected cities initiative is well intentioned, it has involved a huge waste of public funds because of the Westminster Government’s apparent lack of awareness of state-aid rules, which has resulted in my constituents in rural west Edinburgh, in places such as Kirkliston, not having the broadband connection speeds and infrastructure that they were promised and which they deserve?

I agree that, although the superconnected cities scheme was undoubtedly well intentioned, there appears to have been a lack of foresight and a lack of planning on the UK Government’s part to ensure that the scheme was state-aid compliant. The last-minute redesign of the programme has placed enormous pressure on Edinburgh, Aberdeen and Perth, which, at very short notice, have had to refocus their plans on city wi-fi and voucher schemes for small and medium-sized enterprises.

We have supported and will continue to support the City of Edinburgh Council through the process, and we remain hopeful that the redesigned proposals will still deliver benefits for the city. However, the lack of infrastructure remains disappointing. I should say that west Edinburgh remains in our step change programme, which should help us to enhance broadband speeds in the area.

As I said in my original answer, we are working with the Scottish cities alliance on a project to map digital infrastructure across Scotland. That will give us a basis on which to plan future investment, which we will ensure is state-aid compliant.

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Scamming

4. To ask the Scottish Government what action it is taking in conjunction with local authorities to tackle scamming. (S4O-02255)

We are firmly committed to tackling the problem of scamming, which often targets the most vulnerable members of our society. Everyone has the right to feel safe in their community and it is unacceptable for people to feel intimidated on their own doorstep or in their own home, as is invariably the case with such crime.

The Scottish Government and the Scottish business resilience centre are working on a project that is chaired by Chief Inspector Ronnie Megaughin of Police Scotland. The project will engage with all 32 local authorities across Scotland to ensure consistency of practice, maximum protection for adults who are at risk of financial harm and greater collaborative efforts by all key stakeholders in the public and private sectors. The project will build on the wealth of good work that is under way across Scotland. We all need to work together to prevent scams and to protect the vulnerable.

I draw the cabinet secretary’s attention to an initiative that Angus Council is to launch tomorrow. I believe that, in launching scam-free Angus, Scottish National Party-led Angus Council is the first local authority to adopt a specific policy on financial harm that will involve cross-departmental and multi-agency co-operation. That is aimed particularly at protecting the most vulnerable adults.

Will the cabinet secretary join me in welcoming that initiative? Will he encourage other councils to do something similar?

I welcome the initiative. I am aware—not just as the Cabinet Secretary for Justice but as a constituency member—of the harm and trauma that are caused, especially to the vulnerable, by the often sophisticated scams that are carried out. We fully support the excellent work that Angus Council is doing.

It is important that we take on board the important role that trading standards officers and local authorities perform. We are working with the Convention of Scottish Local Authorities on the issue, and I hope that the Angus approach will be integrated.

I have been involved in activity on the issue, and I pay tribute to outgoing Assistant Chief Constable Angela Wilson, who raised matters to do with sophisticated scams that we, as an Administration, took on board. We did so in conjunction with Police Scotland and some financial institutions, which, along with trading standards officers and local authorities, have an important role to play.

We are talking about sophisticated and deeply hurtful crimes that are perpetrated on the vulnerable. We all have a duty to protect those people, so I am grateful to the member for raising the issue and to his council colleagues for their actions.

Question 5, in the name of Ken Macintosh, has not been lodged, but an explanation has been provided.

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Open Market Shared Equity Scheme

6. To ask the Scottish Government what steps it is taking to promote the uptake of the open market shared equity scheme in rural areas. (S4O-02257)

The Scottish Government has procured the services of five registered social landlords to administer the open market shared equity scheme throughout Scotland. The scheme is being promoted to all first-time buyers through local authorities, advice agencies, local financial advisers and estate agents. Some registered social landlords plan national newspaper advertising in the summer, and other media advertising is planned for the autumn.

I am grateful for that response, but I am sorry to say that the scheme does not appear to be working—at least not in my constituency. Is the minister aware that, since 2009, there have been just 79 shared equity purchases in Dumfries and Galloway, of which 62 were in Dumfries town, but only five were in Galloway and only two were in communities of fewer than 8,000 people? Does she agree that there is not enough flexibility in establishing the scheme’s threshold prices, that the scheme is not being promoted enough—at least not throughout my region—and that it is not working as it should? Will she look into what improvements could be made to the scheme to ensure that my rural constituents are given an equal opportunity to get a foot on the housing ladder?

We are aware of the challenges that relate to the delivery of affordable housing in rural areas and island communities, where small numbers can make a difference. Although a number of other Government initiatives are specifically for rural areas, we will continue to look at the matter. I am more than willing to discuss in more detail the open market shared equity scheme with the member, but we think that the 10 per cent uplift in the threshold has taken account of rural areas.

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Shale Gas

7. To ask the Scottish Government what it is doing to exploit the potential of Scotland’s shale gas reserves. (S4O-02258)

Proposals for coal-bed methane or shale gas production in Scotland will be studied on their merits. Each proposal will be considered through the normal planning process and under the appropriate regulatory regimes, including the Scottish Environment Protection Agency’s guidance on the regulation of shale gas and coal-bed methane, which was published in December 2012. The Scottish Government will continue to support Scottish companies in the oil and gas supply chain to utilise their world-leading skills, knowledge and expertise in the development of opportunities that are presented across Europe and further afield.

This week’s report from the United States Energy Information Administration states that the United Kingdom’s technically recoverable shale gas reserves are 26 trillion cubic feet—10 times our annual gas demand—of which a reasonable chunk is in Scotland. The Institute of Directors previously estimated that 35,000 jobs could be created from this new industry. Given that, in the US, shale gas has delivered a 50 per cent cut in wholesale energy costs, a reindustrialisation of the economy and a cut of millions of tonnes in carbon emissions, will the Scottish Government be enthusiastic about pursuing the new opportunity?

As Mr Fraser knows well, the Scottish Government’s approach is designed to support and maximise sustainable investment in our economy. We will continue to take that approach.

As I said, individual applications for the development of shale gas reserves will be studied on their merits and considered through the due process that the existing arrangements in Scotland provide. The Government and its regulatory authorities will give due consideration to any approaches that are made.

It is essential to rely on substantive and quality information about the availability of resources and the manner and the practicalities of exploiting resources, which will be an implicit part of the assessment when each application’s merits are considered.

Following an outcry in the Moodiesburn area of my constituency about shale gas exploitation, will the cabinet secretary guarantee that communities’ views will be fully considered and taken into account, with proper consultation processes, before decisions are taken on granting permissions for such controversial gas extraction schemes?

In response to Mr Fraser, I emphasised clearly the importance of undertaking due process to ensure that applications are properly considered. That is because I recognise the issues and concerns that Elaine Smith raises on her constituents’ behalf.

Two types of scrutiny would apply to any application in Scotland—one relates to the local authority and one relates to SEPA. There is, of course, a separate licensing process that the Department of Energy and Climate Change in the United Kingdom Government presides over. In the SEPA and local authority processes, there are clear expectations about the level of consultation that is required to be undertaken with communities, to ensure that the concerns that Elaine Smith raises are properly and fully considered. I certainly want to be confident that all authorities would take that approach, which is consistent with their existing responsibilities and obligations.

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Greenhouse Gas Emissions

8. To ask the Scottish Government whether the Scottish greenhouse gas inventory will show that the emission target for 2011 has been reached, and whether the shortfall resulting from the missed target in 2010 has been compensated for. (S4O-02259)

Official statistics on emissions of greenhouse gases in Scotland were published on 7 June 2013. Unadjusted figures show that Scotland’s direct emissions fell by 9.9 per cent between 2010 and 2011. However, once the effect of emissions trading was factored in, the net Scottish emissions account fell by only 2.9 per cent. The result is that Scotland’s statutory climate change target for 2011 has been missed by 0.848 million tonnes of CO2 equivalent.

Annual fluctuations in emissions are to be expected, but Scotland’s long-term trend is in the right direction: emissions are down by more than a quarter since 1990. When the targets were set, a 23.9 per cent reduction in 2011 after adjusting for emissions trading was envisaged; we actually achieved a 25.7 per cent reduction. To compare like with like, we have cut emissions more than any country in the European Union 15.

The Scottish ministers plan to publish the finalised second climate change report on proposals and policies—RPP2—on 27 June. That report will show how we can compensate for the excess emissions in 2010 and 2011 over the longer term.

The short answers being no and no, does the minister accept that that news justifies the view that many have expressed that ambitious climate change targets can be achieved only with a radical change of policy, or does he imagine that the Scottish Government can carry on building every road, expanding every airport and even burning Mr Fraser’s 26 trillion cubic feet of shale gas, and climate change emission cuts will happen by wishing for them?

I am not sure whether Mr Fraser actually owns the 26 trillion cubic feet of shale gas, but he can respond to that point himself.

The serious point is that we recognise the severity of the challenges that we face globally and in Scotland to achieve what are still the world’s leading climate change targets, as I said on the record the other day, and we still have world-leading ambition. We recognise that we have to deliver. As I said, and to pick up the point about saying no and no, RPP2, which is in draft form and will be finalised later this month, will show that we can recoup the lost ground over the longer term. We can address the emissions overshoot.

Mr Harvie should recognise—I think that I made this point to him earlier this week—that we face a situation in which the baseline in 1990 has moved by about 2.5 megatonnes, but we missed the target this year by 0.848 megatonnes. As I said, we have had a faster rate of descent than was envisaged for the percentage reduction by 2011. We have to do more, the Government is committed to doing more and we will do our best to demonstrate that on 27 June.

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Ministry of Defence (Procurement Rules)

9. To ask the Scottish Government what impact Ministry of Defence rules for procurement of naval vessels will have on jobs in Scotland. (S4O-02260)

I understand that the objective of the MOD’s rules is to incentivise cost efficiency in order to boost exports. As Bill Kidd will be aware, the shipbuilding workforce on the Clyde is highly efficient and renowned for the quality of its work. I would therefore expect it to be very well placed to benefit from any environment that enhances and emphasises those qualities.

As the MOD currently procures equipment from overseas, including France—where Thales, which is a company with a significant presence in Glasgow and which is a major supplier to the British Navy, is located—may I suggest that a fear factor is being thrown into the equation in order to suggest that leading companies with highly skilled workers in Scotland would be barred from bidding for and receiving orders from the MOD following independence?

Yes—I absolutely agree with that. As members know, I used to represent Govan shipyard in the Parliament, and I know that the skill and efficiency of its workforce will equip that shipyard to compete, and compete successfully, regardless of the constitutional arrangements. The MOD has recently placed an order in Korea. As Bill Kidd suggests, anybody who suggests that our shipyards would not succeed in the future is not being entirely credible.

Before we come to the next item of business, members will wish to join me in welcoming to the gallery the Speaker of the Queensland Parliament, the hon Fiona Simpson MP. [Applause.]