Plenary, 15 Jan 2009

Meeting date: Thursday, January 15, 2009

Official Report 751KB pdf

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First Minister's Question Time

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Engagements

To ask the First Minister what engagements he has planned for the rest of the day. (S3F-1348)

Later today I will have meetings to take forward the Government's programme for Scotland.

Like the First Minister, I am old enough to remember the recession of the 1980s. I was a teacher in this city then, and I remember watching hope drain away from every youngster in the school in the face of that recession. That must not happen again. Now is the time that we must show confidence in our young people. In recent days, Labour ministers have announced thousands of new apprenticeships; bonuses for teachers in the most deprived communities; more help for students from poor backgrounds to go to and get through university; and an aspiration to reduce the number of unskilled workers in this country from 5 million to 500,000. However, that has not happened here in Scotland, under the Scottish National Party. What action will the First Minister take?

The Scottish Government is taking substantial action to do everything within its powers to combat the forces of recession. I point out to Iain Gray that the figure of 36,000 modern apprenticeships and skillseekers places in Scotland is far higher pro rata than the figure south of the border. Even with the most recent announcement, at least another 30,000 places would be needed in England to achieve the rate that we already have in Scotland. Incidentally, our target of 50,000 suitable training places over the next few years is far higher than anything south of the border.

I hope that Iain Gray will take the opportunity to apologise for James Purnell's attack on the Scottish Government for not using European social fund money. In fact, we announced that we would do so last August—five months before the Westminster Government.

The trouble is, what the First Minister says seldom reflects reality—just ask the Scottish Inter Faith Council. The SNP will not tell us what is counted in the 50,000 training places that the First Minister mentioned. The equivalent number south of the border is 7.5 million—a far higher rate.

Ask the tourism industry. Recently, the First Minister said:

"We need to take advantage of economic circumstances to give a substantial boost to the Scottish tourism industry, which is the greatest industry in Scotland."

That is what he says, but the reality is that the SNP has done away with adult apprenticeships in tourism—not just some, but all of them. The message to anyone over 18 is that there is no future for them in the "greatest" industry. Will the First Minister reinstate those training programmes now?

Let us look at the increases in the number of the training places that the SNP Government has announced. There are key increases not just in engineering and the construction industry but across the college sector. Before he got to his fantasy figure of 7.5 million—he had better check that—Iain Gray omitted to inform us whether James Purnell, who presumably got his facts from Scottish Labour, was right or wrong to make an attack on the Scottish Government for not using European social fund money that the UK Government announced recently. Is it correct or incorrect—I have the details here—that that money and the enhanced training places for which it allows were announced in August? Am I right or wrong in saying that James Purnell and the Labour Party were five months out of date?

It is for Mr Gray to ask the questions. If I recall rightly, he asked about tourism.

Thank you, Presiding Officer. In his answer, the First Minister moved on to some of the traditional trades, so let us deal with those. Yesterday, Michael Levack of the Scottish Building Federation told the Parliament that, last year, it had more than 2,200 apprentices in trades such as joinery and plumbing. This year, the projected figure is just 1,500, with 250 of those facing redundancy.

This morning, I was contacted by a worried father of two apprentices. He told me of a company in Tranent and another in Musselburgh, in my constituency, that are laying off apprentices who are already in the third and fourth years of their time. In Northern Ireland, the Executive has given redundant apprentices a guarantee that they can complete their training. If my young constituents were in east Belfast rather than East Lothian, they would have a guarantee that they could serve their time and qualify. Can I phone that father back tonight and tell him that the First Minister will give the same guarantee?

We have announced 1,000 extra modern apprenticeship places in engineering and construction alone.

European social fund money is important. Almost 300 Scottish projects are already benefiting from the announcement; £200 million of the money that was announced in August is being used to support economic development, enhanced skills, increasing turnover and the creation of new jobs. At some stage, Labour MSPs will realise that the Labour Government's economic mismanagement might have something to do with the recession that is afflicting people in Scotland, or does Iain Gray think that "green shoots" of recovery are evident in the economic circumstances that we face?

This is a global recession. What matters is the response that we make. In Northern Ireland, the guarantee that I mentioned has been given; I hope that my young constituents are watching so that they can see our First Minister ignore their plight.

We should go further in showing our confidence in Scotland's young people. Under Labour in England, every young person who is qualified for one and wants it will be guaranteed the right to an apprenticeship. Under Labour in Glasgow, every young person who leaves school this year with the appropriate qualifications will be entitled to an apprenticeship. Wherever it can do so, Labour is delivering a future for our young people, but here it is up to the SNP. Will the First Minister match Labour and guarantee an apprenticeship to every 16-year-old who qualifies for one and wants it, or will he let Scotland's youngsters down?

Youngsters have the opportunity, through the more choices, more chances initiative, to take up a place in training or education in Scotland.

At some point, the Labour Party had better understand that the figure of 36,000 modern apprenticeships and skillseekers places in Scotland is far higher pro rata than the number south of the border. Lord George Foulkes is shaking his head, but I will send him the figures so that he realises that we have more of our young people in apprenticeships and training in Scotland than the Labour Government does south of the border. Given that Iain Gray could not bring himself to acknowledge the fact in a succession of three questions, is there anyone on the Labour benches who disputes that the social fund money was used by the Scottish Government in August? The projects that will benefit from that social fund money will affect community partnerships across Scotland. That is real, effective action by the Scottish Government.

Iain Gray suggests that Downing Street has nothing to do with the current recession. It is interesting that the current Prime Minister was able and willing to claim all the credit for the years of economic growth, but Iain Gray and the Labour Party want to disavow their responsibility for the downturn, which affects not only young people but the whole population of Scotland.

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Secretary of State for Scotland (Meetings)

To ask the First Minister when he will next meet the Secretary of State for Scotland. (S3F-1349)

I have no plans to meet the secretary of state in the near future.

Does the First Minister agree that the Scottish criminal justice system must be seen to demonstrate integrity, impartiality and fairness to the victims and to the accused? Can he assure the Parliament that any political decisions taken about the release of Mr Al Megrahi, the Lockerbie bomber, will be consistent with those principles?

Yes, I can. As there was a report in today's paper, I will say that it is true that Scottish Government officials met Libyan officials at the request of the Libyan Government in October and November, as did United Kingdom Government officials, I believe. The information that was provided to the Libyan Government officials was purely factual information about the processes of the Scottish judicial system.

On the questions of conditional or compassionate release and a prisoner transfer agreement, if Annabel Goldie looks through the record, she will see that on every occasion I have emphasised the critical importance of upholding the integrity of the Scottish judicial system, and that will be done.

Does the First Minister recognise that there would be widespread and deep unease if any convicted terrorist prisoner were allowed to leave Scotland prior to completion of their sentence? This is a very serious issue, and we need a serious answer. We need to know the position of the Scottish Government. Is the First Minister minded to release a convicted terrorist back to their home country before they have served their full sentence? Unfortunately, Tony Blair created confusion around this issue, but I implore the Scottish National Party not to compound that.

As I have also said a number of times, apart from defending the integrity of the Scottish judicial system, which we will do at all times, a minister cannot prejudge or comment on decisions that they might be asked to make. I do not intend to do so on any case. I am sure that Annabel Goldie, as a qualified lawyer, understands that no minister can anticipate a decision before it is placed before them. Such things have to be done within the integrity of the system. Just as it is important to uphold the overall integrity of the Scottish judicial system, it is important that particular cases are not prejudged, so I do not intend to do that.

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Cabinet (Meetings)

To ask the First Minister what issues will be discussed at the next meeting of the Cabinet. (S3F-1350)

The next meeting of the Cabinet will discuss issues of importance to the people of Scotland.

As of this morning, parliamentary motion S3M-3226 has been signed by almost 50 members of the Scottish Parliament across the political parties. The motion calls on the First Minister to apologise for stating that the issue of funding for the Scottish Inter Faith Council was resolved when it was not. Will he apologise?

No, I will not. As Tavish Scott well knows, on 20 December, as soon as the minister was informed of the difficulties that were facing the Scottish Inter Faith Council, and because of that organisation's importance, he contacted it to assure it that its funding would be continued. It is possible that people outwith politics and those who have not been ministers might not understand that when a minister gives a commitment, that commitment is met. That is how the process works. Therefore, on 20 December, when Fergus Ewing gave that commitment, the issue was settled in the best interests of the organisation and, because of the organisation's importance, in the best interests of Scotland.

Our issue is not with what Mr Ewing said but with what the First Minister said. Last week, the First Minister said four times that the situation was resolved, not that it would be or was being resolved. If the First Minister thinks that it was resolved last week, what on earth was Mr Ewing doing at a meeting on Tuesday night this week still trying to sort it out? Why was the Government unable to place a shred of written evidence into Parliament last week as I asked? Why did Government spin doctors scurry around journalists yesterday with an e-mail in which they forgot to delete the sentence that makes it plain that the issue was never going to be resolved until this week? However much he wants to, the First Minister cannot just make stuff up in response to parliamentary questions. [Applause.]

Order.

In responding to the cross-party motion, the First Minister needs to do more than simply apologise. He needs to think before he speaks, and to choose his words so that they accurately reflect the true situation. People expect him to respect the values of the Parliament in his answers. Will that happen?

The e-mail from Major Dixon, to which Tavish Scott refers, was a response to the ministerial assurance. It welcomes Mr Ewing's intervention and his assurance that the funding will continue. The issue was resolved and settled. Clearly, the ministerial assurance is the thing that matters. That is what commits the Government. Once the ministerial assurance is given, the issue is resolved.

Rubbish.

Order.

I would have thought that Tavish Scott might be interested in a statement that was made by Major Dixon this morning. He said:

"The commitment of Ministers and the Scottish Government to the development of inter-faith relations is well documented and we are pleased to know that we continue to be one of its partners in this important work."

I would have thought that the chamber could unite around the fact that effective action by a minister resolved a funding issue and allowed the important work of the Scottish Inter Faith Council to continue.

I heard on the radio this morning that there had been an earthquake in Shetland. At about 3 on the Richter scale, it did not amount to much—rather like Tavish Scott's questions.

The First Minister will be aware of the devastating job cuts that have been announced in Hawick in my constituency this week: 38 jobs lost at Slumberdown; 35 jobs lost at Emtelle; and 20 jobs lost at Thornwood Motors. With many more job cuts apparently to be announced in the next few days and weeks, Gordon Brown's recession is hitting my constituency hard. Can the First Minister tell me and my constituents what his Government is doing to address the growing jobs crisis and say what action he is taking to protect many of the skilled jobs that might be lost for ever?

I know that the Cabinet Secretary for Finance and Sustainable Growth has visited the member's constituency twice already to talk about the jobs situation.

The recession and the state of the economy mean that we have to face the fact that many constituencies, workers and factories are going to face similar situations across the country. However, I hope and believe—as, I think, the constructive nature of yesterday's budget debate indicated—that there is widespread support in the Parliament for the recovery plan that the Scottish Government is pursuing. There is widespread support for the acceleration of capital investment and the announcement of projects and there is a widespread acknowledgement that the Scottish Government realised the opportunities of using enhanced European social fund money substantially earlier than Westminster did.

The member has my assurance that the Administration will do everything within its power to protect families and businesses across the country as they face the ravages of recession. However, it is also the case that, if we had more economic powers in Scotland, that response could be greater.

The First Minister will be aware that, this week, the European Parliament voted by a substantial majority to tighten up on the use of pesticides in agriculture. The proposed legislation places tight curbs on crop spraying, bans the use of pesticides near schools and hospitals and proscribes 22 chemicals, some of which are said to be carcinogenic—a move that will be particularly relevant in Scotland, given the Parliament's approval of the right of land access, which provides for walking on field margins. Does the First Minister support the decision of the European Parliament? Will he ensure that people in Scotland are fully protected from the harmful health impacts of certain chemicals by expressing his intention to implement the proposals in full?

Everyone in Parliament wants to ensure good public health among the Scottish people. However, it is not always the case that every regulation that emanates from Europe on pesticides and other matters is proportionate to the dangers. Although public health is the greatest priority, we have to be proportionate in the implementation of proper regulations.

I will ask the Cabinet Secretary for Rural Affairs and the Environment to write to Robin Harper to discuss the detail of the proposals, state what doubts and difficulties the Scottish Government—and, I think, the Westminster Government—has with the proposals and set out the areas that we will undoubtedly be able to support.

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Financial Sector Jobs

To ask the First Minister what steps the Scottish Government is taking to secure financial sector jobs in Scotland. (S3F-1353)

The Scottish Government is taking a range of measures to secure financial jobs in Scotland. Quite clearly, the Parliament's concentration towards the end of last year was—and still is—on the merger of Lloyds TSB with HBOS. The concerns that many of us had, which were shared across the Parliament, were well ventilated. However, I can indicate that we have had productive discussions with Lloyds TSB. Some of its more recent announcements should give the Parliament encouragement that the new banking group will have a strong commitment to Scotland.

As the First Minister is well aware, the financial services sector is one of Edinburgh's largest employers, providing more than 43,000 highly skilled jobs in the city. There is understandable concern in the sector about the impact that the economic recession will have. Can the First Minister provide reassurance that the Scottish Government will continue to work with the financial institutions and the unions to provide support to protect Edinburgh's reputation as a vibrant and successful financial centre?

Yes, I can give that assurance. It should be remembered that, although two of the Scottish banks suffered greatly from the financial tsunami and the huge prevalence of tightening credit conditions last autumn, the Scottish financial sector is broadly based across insurance, pensions and investment management. Relative to the conditions that they face, many of our outstanding financial companies in Scotland are doing extremely well in the markets that they pursue.

Through the Financial Services Advisory Board—FiSAB—and our other initiatives with the financial sector, we will market that performance and the comparative advantage that we have in Scotland. We will maintain the focus on skills and the promotion of Scotland's locational advantage. As the time is right, Scottish Development International continues to work to secure investment by promoting Scotland's costs and skills. Scotland has a substantial relative cost advantage in our high-quality financial sector compared with many other locations in Europe. Those assets and the skills of our workforce—and, indeed, Scotland's reputation in financial matters—will be key points of the marketing campaigns that FiSAB and others pursue.

In light of concerns about potential job losses in the sector, calls were made before Christmas for a specific financial sector jobs task force to be established by the Scottish Government at high levels. The Cabinet Secretary for Finance and Sustainable Growth replied that, although such a task force had not been ruled out, FiSAB was the correct structure. According to the Scottish Government's website, FiSAB last met on 2 September—four months ago. Can the Government act more urgently, in view of the potential for job losses, by establishing a high-level task force, chaired by the First Minister, on what is a vital sector of the Scottish economy?

FiSAB is the body that brings together the financial sector in Scotland. Obviously, the Scottish Government has concentrated on and had a great deal of activity in relation to the HBOS position. In recent days, I have spoken to both Susan Rice and Archie Kane about the recent announcements by the Lloyds TSB banking group. There are some things that the Parliament should welcome in those announcements. For example, the convening by Archie Kane of a Scottish board across a range of the group's activities is a useful step forward, as is the appointment of Susan Rice as chief executive. She has a strong reputation in the financial sector in Scotland. Rather than reinvent another body, it is appropriate that FiSAB is the key body to look at, promote and enhance the skills of the financial sector in Scotland. We have a strong body and a strong set of skills that we should build on. I am sure that everyone is willing to take part in that.

As the First Minister may be aware, the trade union Unite has developed a social charter that outlines measures that could help workers in the financial services sector. Would he and other ministers be prepared to meet the union to discuss that proposal?

Yes, I would. Of course, there is trade union representation on FiSAB, so views can be made through that body, but I would be very happy to have a specific meeting on those proposals. Indeed, we recently accepted a Confederation of British Industry Scotland proposal on skills enhancement in the financial sector and had a specific meeting to take forward that initiative. I would welcome and support a meeting with the union.

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Homecoming Scotland 2009 (Funding)

To ask the First Minister what additional funding has been provided for homecoming Scotland 2009 since 5 November 2008. (S3F-1374)

Recognising the importance of homecoming Scotland 2009 as a means of boosting tourism to support the Scottish economy at this time, the Government allocated an additional £0.5 million on top of the £5 million core budget that was already in place for homecoming. Most of the additional budget will be used to extend the marketing and promotion of homecoming, including playing the "Caledonia" television advert to audiences of more than 100 million people in North America and in other parts of the United Kingdom.

That modest additional support will be welcomed, but will the First Minister explain why £0.5 million in new marketing support was not worth a mention when we raised concerns about the funding of homecoming in the debate last week? Total public investment in homecoming, even now, is half of the investment that was made in the 2007 year of Highland culture, so does the First Minister intend to provide any more additional funding in the months ahead?

As I recall the debate, Jim Mather spelt out what the international marketing campaign of homecoming was going to be. That is what the extra money will go towards.

Despite the comments that he occasionally makes in the press, I know that Lewis Macdonald is right behind the homecoming initiative. I am glad of that. Although it is early days, there are substantial indications of great success in the initiative. There is huge awareness of it in Scotland, which will be a critical part of its success. The international programme is achieving substantial results as well.

On websites affiliated to homecoming, notes of interest from North America are at a rate of one every 35 seconds. Of those, 75 per cent say that they are either "interested" or "very interested" in coming to Scotland because of the homecoming initiative.

In addition to mentioning the indications of success in, for example, the gathering—for which 6,000 of the 8,000 tickets have already been sold, five months before the event takes place—it is only fair that I should make a special mention of the great Celtic Connections festival, which starts this weekend and which, the following weekend, will have the homecoming series of events. I understand that virtually all the events are sold out, so I advise members to pull as many strings as possible if they want to get to them. I am sure that Celtic Connections—a great and growing music festival in Glasgow—will, as a homecoming event, be worthy of that great city and will be supported by Lewis Macdonald and by everybody else in the chamber.

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Unintentional Homelessness

To ask the First Minister what progress the Scottish Government has made towards ending unintentional homelessness. (S3F-1372)

The 2012 target, as enshrined in the Homelessness etc (Scotland) Act 2003, is to abolish the distinction between homeless households currently assessed as "priority" or "non-priority" and to ensure that all unintentionally homeless households are treated equally. The Scottish Government has agreed a four-point plan for moving towards the target with the Convention of Scottish Local Authorities. The plan focuses on investing in housing supply; maximising access to existing stock; preventing homelessness where possible; and promoting better joint working between services. A joint letter from Scottish Government and COSLA officials to local authorities setting out action under this plan, and related developments, was issued on 23 December. Progress against the interim 2009 targets that were set by the previous Administration will be monitored later this year.

On the basis of the construction that the First Minister now wishes us to assume should be put on his answers—given his response to my colleague Tavish Scott—I think that we can take it from that answer that unintentional homelessness has now been resolved.

However, given the current economic recession, and given that it is acknowledged that the recession is likely to impact the most on those who are least able to cope, will the First Minister explain why, despite the Government's announcements of accelerated investment in affordable housing, the investment plan for Glasgow and Edinburgh—cities that arguably contain the areas of greatest housing and economic need—is exactly the same as it was not just this time last year but this time two years ago?

I would be concerned if anything that the Government did were the same as what was done by the previous Administration. The previous Administration produced

"the best homelessness legislation in the world, but we didn't build the housing to make it work".

Those were not my words but Iain Gray's words on 21 August last year. Ross Finnie was part of the previous Administration, so if I were him, I would not trumpet its record on housing too much.

I am delighted to give the chamber the latest statistics on new-build starts by local authorities in Scotland. To get the sweep of the evidence—I would not like to be accused of being selective—let us consider the figures over a few years. In 2003-04, there were zero new-build starts by local authorities. In the following year, there were also zero. In the year following that—the last year of completions under the previous Labour Government—there were six, all of them in Shetland. There have now been 432 under the current Scottish National Party Administration, and the figure will move higher, year by year, as local authorities once more assume their role in the provision of affordable social housing in Scotland. I am sure that Ross Finnie will welcome that.