Plenary,

Meeting date: Thursday, May 14, 2009

Official Report 692KB pdf

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Question Time

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SCOTTISH EXECUTIVE

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Finance and Sustainable Growth

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Scottish Futures Trust (School Buildings)

To ask the Scottish Executive whether ministers will inform the Parliament before the summer recess of how the Scottish Futures Trust will be used for any school building proposals. (S3O-6909)

We have already made clear that we plan to announce later this year the next part of our schools investment programme. That will involve working with local authorities to take forward capital investment through the Scottish Futures Trust.

We can put the cork back in the champagne: we will hear an announcement on the Scottish Futures Trust later this year. Two years into this parliamentary session—more than half way through—we have yet to hear of the Scottish National Party Administration commissioning one school, despite its promise to match the previous Administration "brick for brick". Is the minister aware of last week's report from Audit Scotland, which highlighted the fact that one third of Scotland's schools are in poor or bad condition? Does he believe that it is acceptable to do nothing for two years while our pupils put up with inadequate facilities?

The opening answer that I gave Mr Macintosh simply confirmed the position that I have explained to him in Parliament on countless occasions over the past few months. It describes exactly what the Government will do. I also point out to him that the school building programme over which the Government presides continues apace. During this parliamentary session, 250 schools will be built or refurbished under this Administration. We are supporting £2 billion-worth of construction on schools.

What about the SFT?

I answered Mr Macintosh's question about when the Scottish Futures Trust will be involved in the procurement of schools. I have given him that answer on countless occasions.

There is a host of other investment in the capital estate that is designed to improve the schools estate. The Scottish Government is currently supporting £2 billion-worth of school construction. Therefore, for Mr Macintosh to go around the country peddling the myth that nothing is happening on schools estate development is absolute rubbish and he knows it.

It is nearly two years since the Cabinet Secretary for Education and Lifelong Learning told the Education, Lifelong Learning and Culture Committee that local authorities could look forward to Scottish Futures Trust-funded schools. Will the Cabinet Secretary for Finance and Sustainable Growth confirm that he will announce in the autumn that the Scottish Futures Trust will neither fund nor directly commission schools, and that it will simply be a consultant to local authorities that are procuring schools?

The Scottish Futures Trust will deliver greater value and effectiveness in the Government's capital programme. I would think that that approach would be supported widely in Parliament, and that all members would think it a laudable and supportable aspiration. It is what the Scottish Futures Trust's board and management have concentrated on so far. As I said in my earlier answer to Mr Macintosh, announcements will be made to Parliament in due course.

The cabinet secretary did not give an adequate answer to the previous question. Perhaps he will answer this one: how will the work of the Scottish Futures Trust, as he has just described it, be different from the work that civil servants inside the Scottish Government do as part of their duties? Why are we paying millions of pounds for that expensive quango?

Mr Kerr is in no position to lecture me about spending millions of pounds on quangos, given how he presided over and financially supported public-private partnership projects that have been shown to have squandered public money instead of providing value for money.

The Scottish Futures Trust will deliver the improvements in value for money that will be essential as we move into a period of greater pressure on public expenditure and we have to deliver greater value for money. I assure Mr Kerr that we will be able to deliver those value improvements for the benefit of school pupils around Scotland.

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Scottish Futures Trust<br />(Glasgow Primary School Estate)

To ask the Scottish Executive what support is likely to be available from the Scottish Futures Trust for the modernisation of Glasgow's primary school estate. (S3O-6924)

The modernisation of Glasgow's primary school estate is a matter for Glasgow City Council, but the Scottish Futures Trust is ready to provide advice on infrastructure investment, where appropriate, across the public sector. As the Government has announced already, we plan to announce later this year the next part of our schools investment programme, which is being developed along with the Scottish Futures Trust. In addition to the increased levels of capital investment that have been provided to Glasgow in the current spending review period, the Scottish Government has also supported the council's acceleration of its infrastructure investment by bringing forward a total of £9.5 million of capital funding from 2010-11 to the previous and the current financial years.

I heard the Cabinet Secretary for Finance and Sustainable Growth talk about peddling myths in his answer to the previous question, but it is not a myth that schools in Glasgow are closing instead of being modernised, that parents demonstrated outside Parliament today on the issue of school closures and that no money has come from the Scottish Futures Trust, nor is any promised, for the Glasgow schools project. Does the cabinet secretary accept that there is an urgent need for movement on that matter? Can he give us any guidance on whether funding will be available? If it will be available, what amount will come from the next part of the programme to which he referred? Can he help Glasgow in that regard at all?

First, Glasgow City Council makes decisions on closures of its schools. It is proper to ask questions about such issues in public debate, because parents are understandably concerned about them, but I say with the greatest respect to Mr Brown that questions on Glasgow City Council's schools estate should be directed to the council.

On the support that the Scottish Government is making available to local authorities, and particularly to Glasgow City Council, I remind Mr Brown that in the spending review I increased in one year the capital allocation to local authorities by £100 million. That level of support has been sustained throughout the spending review period. Clearly, Glasgow City Council, as the largest local authority in Scotland, will have access to a significant proportion of that capital expenditure and will be able to deploy it in areas of its choosing. Fundamentally, decisions about the schools estate in Glasgow are a matter for Glasgow City Council.

On the Scottish Futures Trust, I made it clear in my earlier answer that the Government will make a statement to Parliament on the funding approach for the next elements of the schools estate programme. That statement will be made in association with the Scottish Futures Trust, which will be fully involved. Mr Brown will be able to question ministers on the details of that when the statement is made to Parliament.

I listened carefully to the cabinet secretary's response to Robert Brown, but he will be aware that, of the £196 million that has been allocated to Glasgow City Council for capital expenditure, more than £115 million is earmarked for projects—such as the M74 extension and the White Cart flood prevention measures—whose capital spend is ring fenced. In the past 10 years, Glasgow City Council has built 53 primary schools and 11 secondary schools. Some of that was done with public-private partnerships, but the vast majority it was done with the council's own funds. The council no longer has those funds, and the Scottish Government is not offering any advance on them or a way out through the Scottish Futures Trust. What can the Government therefore offer the parents of pupils and the pupils whose schools are going to close at the end of June?

With the greatest respect, Patricia Ferguson confuses the issue of Glasgow City Council's decisions on its schools estate, which the council is properly responsible for taking, with the issue of capital investment. Local authorities make choices on capital investment, so if Glasgow City Council has decided to invest a significant proportion of its capital budget in the M74 extension, that is a matter for the council.

As I have said in my answers already, the Government will come to Parliament and set out its approach to the school building programme. That is what I have said in all my answers to Mr Macintosh over a sustained period during 2009, and that is exactly what the Government will remain committed to doing.

The minister is obviously aware of the situation in Glasgow, but is he aware that many of the schools that are being closed are in good condition and that the 96 per cent of parents who replied to the consultation process only wish Glasgow City Council to meet them again to talk about the situation? Does he agree that the city council can afford at least to meet the parents of the children in those schools to allay their fears?

As Sandra White would expect, decisions about consultation and dialogue are matters for Glasgow City Council. As a matter of form, it is important that people in authority are prepared to listen to the aspirations and representations of different communities and individuals. I am certainly committed to doing that, and I am sure that Glasgow City Council is equally committed to that process of dialogue.

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Businesses (Support)

To ask the Scottish Executive what additional funding is being made available to Scottish Enterprise and Highlands and Islands Enterprise to provide direct support to businesses. (S3O-6934)

Enterprise agencies already have substantial budgets devoted to business support. In addition, some £30 million of capital funding has been brought forward by Scottish Enterprise in 2009-10 to support a number of key infrastructure projects, including infrastructure works in the Fife energy park. The Government has also delivered substantial direct support to many thousands of Scottish businesses through the small business bonus scheme in 2008-09 and in 2009-10 and it plans to do so in the future.

Does the minister accept that, at last week's Finance Committee, Scottish Enterprise confirmed in evidence that its budget is, in cash terms, being cut year on year? Chief executive Jack Perry said:

"there is a case for investing in economic development at the current time, mainly because we get good levels of leverage through investment, which makes our money go further."—[Official Report, Finance Committee, 5 May 2009; c 1219.]

The written evidence from Scottish Enterprise said:

"The continued, and ideally increased, investment in the activities of Scottish Enterprise is paramount in addressing both the current economic conditions and also preparing the Scottish economy to take advantage of the longer-term economic opportunities that will inevitably arise".

Does the minister agree?

When we look at the totality of the situation and the bookkeeping entries—the moving out of the Skills Development Scotland and business gateway functions; the impact of the small business bonus scheme; the front-loading of European structural funds; the new and enhanced role for local authorities that allows them for the first time to be involved in economic development; and the proposals from Midlothian Council, East Lothian Council and others for local small business loans schemes—we see a picture for business, especially when it is working together with the Government, that is getting brighter and brighter.

The new business gateway service was introduced in the Highlands and Islands on 1 April, when the budget was transferred from HIE to the councils. Has the transfer gone smoothly? What improvements does the minister expect that that will bring to small businesses in the Highlands and Islands?

The transfer is going smoothly and early indications are positive. In my constituency of Argyll and Bute, HIE and the business gateway share the same premises. Argyll and Bute Council and HIE have taken a collaborative approach from the outset back in 2007. The Scottish local authority economic development group is beginning to see the transfer as an enormous opportunity and is making a positive response by becoming much more heavily involved in economic development. The small business consultative group decided this week that it will work closely with SLAED, the Convention of Scottish Local Authorities and SOLACE—the Society of Local Authority Chief Executives and Senior Managers—to ensure that the transfer of the functions rolls out across Scotland in the most cohesive way possible.

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Small Businesses

To ask the Scottish Government what steps it is taking to assist small businesses during the recession. (S3O-6962)

The Scottish Government's economic recovery programme contains a number of measures to assist small businesses in the current economic climate. Examples include: ensuring that business advice and support is available through business gateway; the introduction of a 10-day prompt payment target; the extension of the small business bonus scheme from April 2009; and the allocation of £60 million in capital funding to town centres and high streets across Scotland through the town centre regeneration fund in 2009-10, which will support town centre retailing and business activity.

In addition, I wrote on 28 April to chief executives and heads of procurement of Scottish public bodies to express the expectation that all Scottish public sector bodies should follow six simple steps to promote the involvement of small and medium-sized enterprises in public procurement processes, including the use of the public contracts Scotland portal. Taken together, those steps will help to give SMEs fair access to public sector contracts.

I thank the cabinet secretary for his full answer. I note that 69 per cent of respondents to a recent survey by the Federation of Small Businesses said that they were making substantial savings as a result of the small business bonus scheme, and one in eight said that those savings were helping them to stay afloat during the recession. However, I also note that some businesses face issues of eligibility, for a variety of reasons. What steps is the Government taking to ensure that all those who should benefit from the scheme are able to do so?

The Government has been heartened by the level of take-up of the small business bonus scheme in the early part of the programme although, undoubtedly, not all businesses are benefiting from the scheme. We have examined, and will continue to examine, how much more communication and information can be put into the public domain to encourage businesses to take up the scheme. That work is under way, and we will endeavour to ensure that anyone who is eligible for the scheme—or any other form of business rates relief—is able fully to take up the opportunity with which the scheme provides them.

In his first answer, the cabinet secretary referred to the 10-day prompt payment target, which has been reasonably successful—I am prepared to give the Government credit for that. What is the position in the public sector more generally—outside central Government—in relation to the target? Can the Government do anything to help companies, especially smaller businesses, that do not contract directly with Government but which are heavily involved further down the supply chain?

I am grateful to Mr Brown for his initial comments. In March 2009, 91.6 per cent of Government bills were paid within a 10-day period. When the Government introduced the target in October, the payment period was 30 days and performance was not strong even in relation to that target. There has been a material change in performance, and last week I thanked personally the staff of the Scottish Government who have made that achievement possible.

Gavin Brown asked about other elements of the public sector. Through dialogue with local authorities, I have encouraged them to adopt our approach. The core aspects of government have responded extremely positively, but we must monitor performance on an on-going basis.

I concede that there is a real problem where bills are settled with larger organisations and it takes a significant period for the money to reach smaller companies. Gavin Brown appreciates that there is no statutory provision for the Government to take action, but I will endeavour through my regular dialogue with business organisations to encourage larger companies to respond positively to the Government's prompt payment approach and to ensure that the cash flow of smaller business organisations is enhanced by prompt payment, where Government contracts are involved.

I am sure that the cabinet secretary recognises that keeping people employed and giving them an opportunity to retrain and upskill are key, especially for small businesses. At the recent apprenticeship summit, with which the cabinet secretary was involved, many small businesses said that it is almost impossible in the current climate for them to think about retraining and upskilling staff. Given that the issue cuts across two portfolio areas, I urge the cabinet secretary to raise it with Fiona Hyslop, to see what the Scottish Government can do right now to help smaller employers to engage in training and to take on apprentices.

I acknowledge Mr Park's sustained interest in the subject. Provision of the support that will allow businesses to weather difficulties is at the heart of what the Government is trying to do, and the small business bonus scheme is assisting many companies to do that. As Mr Park knows, we have secured from the European Commission a concession that allows us to tailor our European social fund programmes, as well as training interventions that are funded through Skills Development Scotland, expressly to support individuals who require retraining for the labour market and people who are in employment and who face the danger of unemployment.

I assure Mr Park that, although the issues are shared across portfolios, there is a very active dialogue between me and the Cabinet Secretary for Education and Lifelong Learning, and our respective officials, to ensure that all the Government's interventions in this area are integrated and complementary. The Cabinet Secretary for Education and Lifelong Learning and I will soon meet the chairs and chief officers of Skills Development Scotland, Scottish Enterprise, VisitScotland, Highlands and Islands Enterprise and the Scottish Further and Higher Education Funding Council. All those organisations are involved in addressing the issue that Mr Park has raised, in order to ensure that all our interventions are properly focused in the fashion that I have described.

Mr Park knows that the Government will be receptive to any suggestions and proposals that he wishes to advance, as we were during the budget process when he advanced the argument for increasing the number of apprenticeships. I was very pleased that the Government was able to accede to that suggestion.

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Local Government Funding (Review)

To ask the Scottish Executive what the scope is of its joint review with the Convention of Scottish Local Authorities of local government funding. (S3O-6873)

The joint review of the local government finance settlement distribution methodology is being undertaken to ensure that the arrangements for allocating the substantial resources that are provided to local government are as fair and equitable as possible.

In the light of the fact that Aberdeen City Council and Aberdeenshire Council are two of the lowest-funded local authorities per head of population, can the cabinet secretary tell me whether the review of local government funding will consider primary and secondary indicators that influence the allocation of resources to Scottish local authorities, including those of localised deprivation and demographic changes?

I assure Nanette Milne that the review that is under way will be examining the methodology which is, as I know she understands, complex. It takes into account a broad variety of indicators to assess the funding composition of local authority budgets. Some of those factors are driven by population and some by the numbers of people who are eligible for particular services. Some are driven by geography, and some by levels of deprivation. All those issues will be actively considered as part of the current review of the distribution methodology.

Will the minister make it a principle that will guide the review group that there will be an aim to reduce the gap between the highest-funded and lowest-funded councils on a per capita basis, with the possible exception of island authorities, or local authority areas that include islands?

As I explained to Dr Milne, the purpose of the review is to consider all the different components of the distribution methodology, ensuring that we reach a fair and equitable position in relation to the distribution of resources to local authorities. I am very familiar with the questions around the funding arrangements for Aberdeen City, which Mr Adam represents. Those issues will be at the core of the distribution methodology review that the Government and COSLA are undertaking to address those questions.

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Project Scotland (Meetings)

To ask the Scottish Executive when it next plans to meet representatives of Project Scotland. (S3O-6888)

Regular contact is maintained between the chief executive of Project Scotland and our third sector division. We welcome the approach that Project Scotland is taking to identify ways to improve employment opportunities for the 16 to 25-year-old age group.

I thank the minister for his answer, and I acknowledge that the cabinet secretary has been good enough to meet representatives of Project Scotland and parliamentary colleagues, including me, several times to discuss the organisation's future.

The ministerial team is aware that the Government ceased to provide financial support to Project Scotland on 1 April this year, a decision that places the long-term future of that life-changing organisation in serious doubt. Next Thursday, a group of Project Scotland volunteers will visit the Parliament to give members an insight into the positive impact that Project Scotland has made on their lives. Would the minister, and the Cabinet Secretary for Finance and Sustainable Growth, be willing to come along and meet those remarkable young people, some of whom come from Mr Swinney's constituency, and learn first hand how Project Scotland has changed their lives?

We have debated the situation at some length, and it is well understood. The cabinet secretary met Julia Ogilvy, the chair of the organisation, on 4 February, together with Bill Butler and other members. A placement with Project Scotland, at £8,500 for six months, compares very badly against what millennium volunteering has been able to achieve, with placements at £180 per volunteer. However, that said and recognising the fact that we have extended funding to allow the possibility of migration forward, I will make every effort to ensure that my diary can cope with meeting Mr Butler and the Project Scotland youngsters.

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Social Economy

To ask the Scottish Executive what priority it gives to the development of the social economy. (S3O-6896)

We are committed to the development of the whole third sector—including social economy organisations—and we are making a record level of investment to help the sector grow and build capacity, capability and financial sustainability.

Since the social economy is so important in promoting social inclusion, will the cabinet secretary join me in welcoming the announcement by the Equality and Human Rights Commission of its new £10 million funding programme for the voluntary and community sector in the United Kingdom, given that last year 27 projects across Scotland were supported by its grants programme?

Does the cabinet secretary agree that social enterprises offer a good example of widening the scope of women's employment and career opportunities, as demonstrated by the news that 51 per cent of entries for the Bank of Scotland social entrepreneur awards this year have been from women? How will the Government make use of the entrepreneurship of the third sector if—according to research by the University of Stirling—women earn 8 per cent more in that sector? How will the Government use that to close the overall gender gap in pay?

I welcome Marlyn Glen's comments; in particular, I welcome her remarks, which I saw the other day, about the fund from the Equality and Human Rights Commission. That is a very helpful intervention. Having a range of funding streams available to support developments in the social economy complements very well the features of the Government's "Enterprising Third Sector Action Plan 2008-2011", which was published in June 2008.

The focus of that action plan was to ensure, first, that we created more social enterprises; secondly, that we created greater sustainability within those social enterprises; and thirdly, that those social enterprises could perform a greater role in the Scottish economy. Of course, the achievement of a larger social economy is one of the key outcomes in the Government's national performance framework. It is there because we want to deliver a significant shift in economic activity by enhancing and increasing the capability of the social enterprise sector.

For the benefit of members, there are a number of characteristics of the funds available for investment. The Scottish investment fund is valued at £30 million and the enterprise fund, which is valued at £12 million, is designed to support organisational development, capacity building and increased sustainability of established third sector organisations.

The other week, I had the privilege of visiting the Cornerstone organisation in Aberdeen, which is a very successful social enterprise; I have had the privilege over the past couple of years to visit many social enterprises in my capacity as a cabinet minister. I warmly encourage the sector to take up the avenues of financial support that the Government has made available to enhance the position and effectiveness of the social enterprise sector.

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Scottish Investment Bank

To ask the Scottish Executive what benefits the Scottish investment bank will bring to the economy. (S3O-6967)

The Scottish investment bank will be focused on supporting Scottish-based businesses with growth potential, investing in partnership with the private sector. It will provide financial support to help develop these businesses, create employment and maximise their contribution to the economy.

I welcome the significant investment that is being made by the Government to support business growth. However, looking ahead, it would be good to expand that even further. Has the cabinet secretary considered any other potential sources of funding that could be used similarly in the future?

The Government's first steps in relation to the Scottish investment bank have been to draw together a number of funding streams currently available and to put in new resources that had been identified through the European social fund programmes. We are keen to ensure that we bring together other sources of resource to ensure that businesses in Scotland have access to investment funds, which are critical at this time of economic difficulty and which will undoubtedly assist us in delivering economic recovery. We will keep Parliament advised of developments in that respect.

I have supported the concept of a Scottish investment bank for a number of years; I think that there is wider support for it from members on different sides of the chamber. However, there has been some concern about the amount of time that the Scottish Government has taken to get the Scottish Futures Trust off the ground. That concern is legitimate, and there is obviously some concern about what it might mean for the Scottish investment bank.

An announcement has already been made outside the Parliament. Does the cabinet secretary intend to have some parliamentary scrutiny of the Scottish investment bank, and perhaps some discussion from the Scottish Government on the matter, so that we in the Parliament can look at what the bank will do and what it will set out to achieve?

The Government will, of course, respond to any desire for parliamentary scrutiny on any question. Ministers regularly attend committees, and I am here to answer questions today. [Interruption.]

I hope that I did not hear some cynicism in Mr Whitton's sedentary remark that I had not answered previous questions. I am frequently—indeed, always—here to answer questions. Cynicism from Mr Whitton—how unlikely.

The Government will be happy to engage in any parliamentary scrutiny on those issues.

Question 9 was not lodged.

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Saltire Prize

To ask the Scottish Government what progress has been made in the development of the saltire prize for advances in wave and tidal energy. (S3O-6963)

The draft saltire prize competition guidelines have been developed and were open to public consultation from 30 January 2009 through to 24 April 2009. The guidelines will be finalised and full applications will be accepted from 1 July 2009. The five-year competition period is on schedule to commence on 1 January 2010.

I note that the Scottish Government's key energy sector report, which was published yesterday, estimated that Scotland has the potential to produce 60GW of electricity from renewable resources, which is 10 times our peak demand. I am pleased to hear that the saltire prize will play an important role in meeting that goal.

Does the minister agree that investment in new nuclear power stations would be a costly distraction from the harnessing of our vast offshore renewables potential that the saltire prize encourages?

I call the cabinet secretary—sorry, the minister.

Thank you for the promotion, Presiding Officer.

I very much agree with the member—the focus on renewable energy is entirely appropriate. It plays to our comparative advantage, which has been proven by the international attention that we are getting in relation to the saltire prize: we have already had 100 applications from about 24 countries. The European Union is showing interest in and support for the initiative in relation to the grid, offshore wind, and carbon capture and storage.

For Scotland, a focus on renewable energy means the ability to deliver for export clean green energy skills; intellectual property and technology; and the chance to match the legacy of oil and gas with a higher proportion of wealth accruing to and remaining in Scotland.

The minister has accepted that the saltire prize, notwithstanding its potential benefit, is unlikely to pay out until at least 2015. Does he accept that there are now serious concerns in the renewables sector at the lack of a dedicated research and development funding stream? Will he commit to make clear as a matter of urgency the Government's plans to build on the success of the wave and tidal energy scheme that was introduced by my colleague Nicol Stephen? Can he indicate the likely timeframe for renewable businesses being able to draw down much-needed funding?

I take on board the member's message, and we understand the seriousness of the situation. However, with the new banding in the renewables obligation certificates scheme, we believe that we have a very material ability to attract investment. That, coupled with the momentum from the saltire prize in drawing attention to Scotland as a location in which people can invest and in increasing the awareness of Scotland's propensity to give a good return in terms of the productivity of the devices that are located here, augurs well for the future.

When does the minister expect the funds from the previous Administration's wave and tidal energy scheme to run out? Will he give us his estimate of the amount of public funding that the marine energy sector will need between that point and 2015?

Time will tell exactly when the funds will run out. The funds are there and are being accessed and utilised, but the important issue is the opportunity in Scotland for the devices and systems that are put in place to generate revenue, which will justify further investment from the private sector.

Questions 11 and 12 were not lodged.

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Employment

To ask the Scottish Government when it last met the United Kingdom Government to discuss the protection of jobs in Scotland. (S3O-6942)

Scottish ministers have met and spoken to their UK counterparts regularly on a variety of issues associated with the protection of Scottish jobs. Recently, that has included contacts with other devolved Administrations at joint ministerial committee meetings; meetings between the finance ministers of the devolved Administrations and the Chief Secretary to the Treasury; and meetings between the First Minister, the Secretary of State for Scotland and me.

The cabinet secretary will recall that I highlighted previously the problems that face the manufacturing sector in my constituency. As he knows, even companies with a strong asset base and good products are facing serious cash-flow difficulties. Would the cabinet secretary consider discussing with the UK Government how manufacturers might be helped to convert their land and property assets into the cash that they need to get them through the recession?

The Government, through its work with Scottish Enterprise and Highlands and Islands Enterprise—which are primarily involved in the direct interface with individual companies on their plans and developments—would certainly be prepared to give advice to individual companies on the issues that Mr Coffey raises. However, in the current context, land values and asset values are a particular factor to be wrestled with in judgments about disposal to generate capital resources for further investment.

We discuss with the UK Government on an on-going basis a range of questions in connection with employment in Scotland. I would be happy to take forward the issues that have been raised by Mr Coffey.

Question 14 was not lodged and question 15 has been withdrawn.

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Renfrewshire Council (Budget)

To ask the Scottish Executive what the budget increase for Renfrewshire Council was in 2008-09 and 2009-10. (S3O-6899)

Budget decisions taken by Renfrewshire Council are a matter for the council. The council has budgeted to spend £420.6 million in 2009-10, compared with £410.1 million in 2008-09.

The fact is that Renfrewshire Council received a real-terms budget increase. However, I will not dwell on that.

Instead, I refer to an exchange at First Minister's question time on 30 April. The First Minister said:

"I genuinely do not understand how a rising education budget in real terms can translate into fewer teachers and schools in Glasgow. Glasgow City Council owes an explanation of that not only to the concerned parents but to everyone else in Scotland."—[Official Report, 30 April 2009; c 16967-8.]

Should Renfrewshire Council do the same?

I am sure that Renfrewshire Council is in regular dialogue with the people of Renfrewshire. I was in Paisley just the other week for a discussion with the business community. The local authority was an active participant in the discussion; indeed, it was chaired by the leader of the council, Councillor Mackay. I am sure that Renfrewshire Council is in regular dialogue with its constituents and their organisations.

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Carbon Capture and Storage

To ask the Scottish Government what benefits there will be for the north-east from the proposals to develop carbon capture and storage as part of the European Commission's strategic energy review plans for a North Sea offshore grid. (S3O-6944)

As the announcement of the Scottish carbon capture and storage research report on 1 May indicated, Scotland is well placed to take a world-leading role in the development of carbon capture and storage technology. CCS has the potential to reduce carbon emissions significantly from major emissions points, as well as to create significant employment and growth opportunities throughout Scotland.

Within Scotland, the current funding opportunities from the UK and European Union Governments regarding CCS relate to the Longannet project, which has our full support. However, in the longer term, there are other Scottish projects that we wish to be developed. Those could include the Peterhead gas station, for example, which we would wish to become eligible for assistance in due course.

Along with our long-term vision for a North Sea offshore grid, the Scottish Government is committed to doing all it can to turn those proposals into reality and ensure that the benefits apply throughout Scotland.

How soon will Aberdeen city and shire benefit from the proposals?

The initial focus must be on Longannet, as the demonstrator site, because it is very much the low-hanging fruit, provided that UK and EU support is forthcoming. Clearly, we remain disappointed that the Peterhead project did not go ahead. We would hope to see it resuscitated. However, with the report being placed on the record, and with the momentum in Scotland on carbon capture and storage, the member should be assured that we expect things to happen sooner rather than later.

I can take some time out of the next debate, so I call David Stewart.

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Airports (Marketing Support)

To ask the Scottish Executive what plans it has to provide marketing support for airports to develop further air routes to Europe and beyond. (S3O-6921)

EC guidelines 2005/C 312/01 mean that we have no plans to provide marketing support to airports for the development of new international air services.

The minister is well aware that the Scottish route development fund, set up by the previous Administration in 2002, was a great success. More than £7 million was spent, and 52 routes went ahead. There were great successes such as the Glasgow to Dubai route.

Notwithstanding his earlier reply, does the minister share my view that a new route development fund—which could incentivise lower-emitting aircraft—would be a huge boost to tourism, inward investment and the indigenous business community in Scotland?

I would be absolutely delighted if the European Commission were to change the rules to permit such a scheme. Were that to happen, we would of course consider it very seriously.