Finance and Sustainable Growth
Scottish Futures Trust
The Scottish Futures Trust is taking forward a range of projects, which include the schools development programme, the hub approach to public service provision, involvement in the Borders rail project, tax increment financing and a variety of other projects, including mental health projects in Tayside. The SFT is actively involved in all those programmes and is working with the Government to deliver improvements in value for money. Given Mr McNulty’s long service with me on the Finance Committee over the years, I would have thought that he would have had an interest in the aspirations of the Government to deliver value for money in that respect.
Shirley-Anne Somerville has identified another project in which the Scottish Futures Trust is involved, which I did not mention in the list that I gave to Mr McNulty. The financing model of the national housing trust is expected to leverage in approximately £140 million of external funding, to provide up to 2,000 mid-market homes, which will initially be available for rent. That is a positive contribution to tackling the significant challenge in relation to affordable housing in Scotland.
Scottish ministers meet representatives of the Scottish Futures Trust on a regular basis and continue to work closely with them on delivering value for money for our vital infrastructure investment.
I met the chief executive of the SFT in the Borders to discuss the hub initiative and to discuss concerns, which have been expressed locally, that there will be no opportunity for construction companies in the Borders to bid for works in relation to NHS Borders health centre developments. I did not receive a satisfactory reply. Can the cabinet secretary confirm that, if there are health centre developments in the Borders under the hubco initiative, local construction firms will be able to bid for works?
As Mr Purvis knows, we must ensure that the procurement of public infrastructure is compliant with the requirements of the European Union in that respect. All our procurement activity is structured in that fashion and the approach that is taken to work in the Borders in relation to the hub project will be no different from the approach that is taken to all Government contracts.
Has the cabinet secretary asked representatives of the Scottish Futures Trust what they are doing, bearing in mind the amount of resources that they are consuming? I understood that 14 new schools were to be brought forward but, as far as I can see, no school has been commissioned so far and we are at the tendering stage for only two new secondary schools. There is no word on new primary schools. Will he bring us up to date on the progress of the SFT’s work?
I welcome the work of the SFT and the Scottish Government to establish the national housing trust, in which 10 councils, including the City of Edinburgh Council, have expressed an interest. I hope that the approach will allow Edinburgh to expand its social housing programme, after years of inaction by the previous, Labour Administration. Will the cabinet secretary tell us about the scale of the financial benefit that there will be for the construction sector? Will he also say how many homes he hopes will be created for Scotland?
Derelict Land (Glasgow)
That is among a range of ways forward that will be considered when a business case is to hand.
I hope that, if the cabinet secretary were to be approached by Glasgow City Council, he would welcome the opportunity, because the vacant and derelict land fund relates to an agenda that the council and the Government share, which is to do with bringing in areas that have been derelict for a long time. Does the minister accept that utilising those resources would help, given that many of the transformational regeneration areas—including the M74 extension and the Commonwealth games venue development, which are in my constituency—benefit from the vacant and derelict land fund? I hope that he is willing to listen to pleas for further funding.
One of the other mechanisms that are being considered to bring in additional funding for developments in Glasgow is tax increment financing, which would stake large amounts of public money on a gamble that retail units will be filled despite the fact that we see retail units lying empty as a result of the economic circumstances of the past few years. Would it not be wildly irresponsible to approve any such tax increment finance requests at this time?
We currently allocate Glasgow £4.5 million per annum from the vacant and derelict land fund. I can confirm that the Cabinet Secretary for Finance and Sustainable Growth has not been approached for additional funding to deal with derelict land sites in Glasgow.
We are always willing to discuss matters of mutual interest with local authorities and others. The vacant and derelict land fund is already contributing £13.5 million to Glasgow over the period 2008 to 2011. We are also working on urban regeneration and have, so far, contributed more than £40 million to the Clyde Gateway urban regeneration company, the town centre regeneration fund and the Clyde waterfront regeneration partnership, for which 75 per cent of the £1.46 billion in funding has come from the private sector. That is a substantial public investment, but we will, of course, continue to work with interests.
Public Transport (Fife)
The minister will be aware that, for the network to be maintained, local government will have to make up the shortfall with no extra funding. That equates to £25 million in cuts throughout Scotland. Without that additional funding, Fife could see a shortfall of 25 to 30 buses. Given that other parts of the United Kingdom are continuing with the reimbursement rate of 73.6p in the pound, how can the Scottish Government justify these massive cuts to a scheme for the most vulnerable people in our communities?
I was not aware that the rate in England was anything remotely like 73.6p in the pound—in many cases, it is substantially less than 50p in the pound. The Labour transport spokesperson pointed to the long-term sustainability issues associated with a rate of 73.6p in the pound, and we agreed to a rate of 67p in the pound. The Confederation of Passenger Transport understands that.
I should have said that question 3 was not lodged.
That has taken me slightly by surprise, Presiding Officer.
Caledonian MacBrayne
Mr Foulkes is sometimes not entirely wise in choosing subjects. The change that was made to create Caledonian MacBrayne Crewing (Guernsey) Ltd was, of course, entirely an initiative conducted under the previous Administration for the purposes that Mr Foulkes has just described. If he has not already done so, he will receive a written answer from me very shortly that shows that the subject has not been one on which concern has been expressed until now. However, I am interested that the Labour Party has resiled from its previous decisions.
The Cabinet Secretary for Finance and Sustainable Growth and I last met with the chairmen of David MacBrayne Ltd and Caledonian Maritime Assets Ltd in November 2009, to discuss ferry matters.
Do the minister and the cabinet secretary share my concern that a publicly owned company has a tax avoidance scheme that uses a Guernsey-based subsidiary? Will the minister raise that matter with Caledonian MacBrayne and insist that it accepts full responsibility for paying employer contributions to national insurance for all its employees in the United Kingdom?
Manufacturing Jobs and Investment (Glasgow)
The cabinet secretary will recall that, during the debate in the chamber on Diageo on 17 September 2009, he made clear commitments to the communities and workers affected by that company’s decision to close its plants. To follow up on those commitments, can he advise members how many meetings of the task force have taken place since September, what discussions have taken place between the minister and Diageo on the regeneration of the sites at Port Dundas and Kilmarnock, what the Scottish Government has secured from Diageo by way of a legacy for those communities, and what training or employment opportunities the Scottish Government has secured for Diageo workers?
Question 7 has been withdrawn and question 8 was not lodged.
The Scottish Government provides a wide range of support to manufacturing companies, including in Glasgow, which is delivered through Scottish Enterprise, Scottish Development International, local authorities and Skills Development Scotland. We are committed to supporting all manufacturers in Scotland to improve their productivity and to ensure that they can compete globally. The Scottish manufacturing advisory service, which was delivered by Scottish Enterprise, has helped Glasgow manufacturers to make an estimated £7.5 million-worth of annualised efficiency savings. Glasgow has received major investment from a number of Scottish Government programmes and initiatives to support businesses in the manufacturing field. I expect that work to continue in the fields of regeneration, skills and innovation, as well as in projects associated with the 2014 Commonwealth games.
As Patricia Ferguson knows, in all circumstances in which employees lose employment, the Government makes available the support of partnership action for continuing employment to ensure that individuals are given the advice and support that they require to find alternative training opportunities or alternative employment. PACE has an admirable record over the years of delivering successful outcomes to individuals. I appreciate that there is clearly now a much greater challenge in the labour market as a consequence of the current economic conditions with which we are dealing.
Fossil Fuel Levy Account
Would the cabinet secretary reiterate the amount involved, indicate what that means in terms of lost investment and say what its effect will be on employment and investment in Scotland’s industry and infrastructure?
Mr Welsh will be aware that the Government, through its work with Scottish Enterprise, has recently published the “National Renewables Infrastructure Plan”, which has set out a number of the key pillars of infrastructure that will be required to ensure that we can maximise the economic benefit to Scotland of the renewable energy opportunities. That has been a helpful publication, because it gives structured guidance to the industry about where the Government sees developments being taken. It allowed Mr Mather to make announcements earlier this week about the development of the BiFab company at Fife energy park in Methil and it structures many of our interventions in this respect.
The First Minister raised the issue of the fossil fuel levy surplus at a meeting with the Chancellor of the Exchequer on 31 March 2010. As a result, the chancellor has agreed to consider the matter in the next spending review. The Scottish Government welcomes the chancellor’s approach in that respect, although we are continuing to press for a more urgent resolution of the issue. The fund, which stands at more than £180 million, represents money raised in Scotland and provides an opportunity for us to promote renewable energy development in Scotland.
Construction Industry
We accelerated £347 million of capital expenditure to help Scottish construction companies through the recession. We would have done more this year had it not been for the chancellor’s refusal to make provision for it. However, we are taking action on a number of other fronts, supporting apprenticeships and encouraging prompt payment. We want the construction industry to play its part in building the Scotland of the future. In addition, I made announcements yesterday of consequential funding from the United Kingdom budget, much of which is allocated to construction projects in Scotland.
As Wendy Alexander knows, the Government is taking forward its intervention in the construction industry and in capital markets through a range of different approaches. We have our traditional capital budget, which is being fully spent and utilised. We have taken forward a range of projects that we inherited from our predecessors and we have taken forward a range of other initiatives, which I explained to Mr McNulty a moment ago, through the work of the Scottish Futures Trust. That is the Government’s approach. We are working to ensure that we do all we can to support the construction industry in these difficult economic times. The Government will sustain that approach in the period to come.
Many years ago—in the summer of 2007—I shared a television interview with the cabinet secretary in which he said that the Scottish Futures Trust would be available in October 2007. Does he recall that interview and that commitment? Will he answer the question that was asked previously: when will the model of funding that was promised in his manifesto, and subsequently, be available?
Mr Kerr will forgive me for not having an encyclopaedic recollection of all my television interviews. I will check the record to find out what words of wisdom he and I exchanged on that occasion. I am sure that it was one of the many pleasant encounters that we have had in the television studios of the country—I look forward to many more in the years to come.
The cabinet secretary will recall that, subsequent to 2007, the Government’s own business case for the Scottish Futures Trust said that it would have two iterations, the second of which would be one in which it delivers finance itself. Will that still happen before 2011?
It is now three years since the Government pledged to replace public-private partnerships with an alternative model of public procurement. When can we expect that alternative public procurement model to be unveiled?
Those are elements of the operating plan that the Scottish Futures Trust is progressing. The SFT is involved in a range of ways in raising funds to invest—Shirley-Anne Somerville gave the particularly welcome example of the national housing trust earlier—and the Government will continue to take that approach.
Boiler Scrappage Scheme
Karen Whitefield should take it from me that “soon” means what it says. We will use the full £2 million of consequentials from the UK Government for the boiler scrappage scheme, and the member should recognise “soon” when it comes with such a positive message.
I am grateful to the minister for his answer, but I hope that he will not be too surprised to learn that I take his assurance of “soon” with a pinch of salt; the Government uses that terminology for many of its promises. As was discussed in the previous question, the Scottish Futures Trust has been coming “soon” for quite some time, and it still has not put a brick down in any part of the country.
The exact details of the scheme, including the launch date and delivery mechanism, are being developed and will be published soon.
Glasgow Subway
I met David Fagan, the vice-chair of Strathclyde partnership for transport, and senior officials of the partnership on Tuesday, when I was given a presentation on its outline business case for modernisation of the subway. Government officials have been discussing the subject with SPT in recent months.
In referring to the Scottish National Party’s vow to boost subway services, the Deputy First Minister said:
We are in slight danger of getting ahead of ourselves. The SPT board meeting that will receive the same presentation that I received as a courtesy on Tuesday will take place tomorrow, and it is important to see what comes from that.
The minister will be aware of the importance of Glasgow’s subway system not only for the city itself but for the whole of Scotland, as 14 million passengers pass through the underground each year, and, as he outlined, he has heard about the modernisation works that SPT is planning, which will be the first since the 1970s. Does he agree that £67 million of additional investment in SPT each year, as reported in the media this week, is a price that is worth paying to deliver a modernised subway—which has cross-party support—for Scotland’s largest city? Will he confirm today that he will assist the SPT modernisation scheme by bringing that £67 million forward?
Let me go back to what I have just said. The board is meeting tomorrow to consider what was put in front of ministers this week.
Bervie Braes (Stabilisation Work)
On 19 March 2010 I announced a funding package of £3 million to take forward stabilisation works at the Bervie braes in co-operation with Aberdeenshire Council. Taking forward these works is now a matter for Aberdeenshire Council.
My officials will obviously keep in touch with Aberdeenshire Council, with which we have had very good discussions over some time. I welcome Maureen Watt’s acknowledgement that my indication to the people of Stonehaven that a decision would be taken swiftly was undoubtedly delivered. Indeed, I made the decision within a couple of weeks of my visit to the site, which happened a few weeks after the first landslip. I hope that that reassures some of the sceptics in the Parliament about the timescales for Government decision making in this country. I am delighted that we have been able to take that decision and very much welcome and pay tribute to the cooperation that my officials received when they discussed this issue with Aberdeenshire Council’s officials.
The cabinet secretary promised to make a swift decision on carrying out work at the Bervie braes, and residents of Stonehaven and Aberdeenshire Council were delighted when he did so and decided that it should go ahead. Does he agree that it is important that legal agreements and the tendering process be completed as quickly as possible to ensure that the work on making the braes safe can begin at the earliest opportunity? Does he expect Aberdeenshire Council solely to take forward this work or will his directorate play an on-going role?
"National Renewables Infrastructure Plan"
The merits of Inchgreen and the strength of the wider Inverclyde area are part of Scotland’s strong offer to the industry in its early days. The member is right that the market will decide which sites are suitable for use. We will certainly encourage on-going dialogue and we will encourage Inverclyde to ensure that it gets its entry into the competition that the Department of Energy and Climate Change has got under way. We will also encourage talks with other locations to maximise the scope for collaboration as we go forward into the new phase of renewables.
I would love to do that, but I would have to consult Alex Neil and get his feedback. It is not in my gift to give the member that information. I will talk to Alex Neil and get back to her in writing.
I share the minister’s enthusiasm for what is an emerging and exciting industry and I agree that it is necessary to support it through investment. He will know that we have a site in Greenock that meets all the requirements of the “National Renewables Infrastructure Plan”, with land available, sufficient lengths of quayside, high loading clearance, sufficient depth of water and one of the biggest working dry docks in Europe. That site is ready to go with little investment required, so the minister will imagine the dismay and horror when we discovered that it had been left off the list of preferred sites in the plan. Does the minister agree that we require scrutiny of the findings in the plan? Will he give an assurance that on-going discussions will be held with the Inverclyde renewables alliance to ensure that we are not excluded from future investment opportunities in renewables manufacturing, particularly if market interest is shown?
Just this week, as part of the economic recovery plan, the Scottish Government was delighted to announce that £3 million will be made available to facilitate further essential development of plant and equipment at the Arnish industrial estate on the Isle of Lewis. The proposed accelerated recladding at the main fabrication shop works will assist in meeting Highlands and Islands Enterprise’s objectives for increased activity and diversification at the site.
Will the minister speculate on the rate of growth for household renewables as part of his renewables action plan? I understand that he thinks that we will get a proportionate share of the United Kingdom’s 750,000 home renewables installations. Will he tell us how fast we will get those in Scotland in the next three years?
Jarvis Rail and Fastline (Job Losses)
We deeply regret the news of the failure of Jarvis and the resulting job losses. However, the decisions that led to Jarvis going into administration are not devolved to the Scottish ministers. Scottish Government support for the railway underpins significant growth in employment, with more to come as our on-going programme is delivered. Our investment of £3.8 billion in the operation of the Scottish rail network between 2009-10 and 2013-14 also directly supports around 3,000 Network Rail employees in Scotland and many thousands more among Network Rail’s contractor base.
At least 70 of the jobs that I mentioned are based in Scotland. The Transfer of Undertakings (Protection of Employment) Regulations do not apply because the companies are in administration. Will the minister ask the Scotland-based contractors to whom some of the work previously done by Jarvis employees has been diverted to consider employing those sacked Jarvis workers?
Question 16 has been withdrawn.
I have been engaged in the subject since meeting the Scottish Trades Union Congress last year. I wrote to Network Rail and the Office of Rail Regulation seeking assurances on renewals deferrals and seeking confirmation that the situation would not have implications for the skills base in Scotland. We will of course continue to ensure that we have skills in Scotland and that we have progress in renewals and development of the rail network. I am happy to do what the member suggests.
Budget
We have made strong representations to all parties seeking their assurances that the 2010-11 Scottish budget will not be reduced by an incoming United Kingdom Government following the general election. The First Minister met Alistair Darling, George Osborne and Vince Cable last month. Mr Darling and Dr Cable have given commitments that no further reductions to the Scottish budget will take place in 2010-11 under their plans. Mr Osborne has indicated that the implications of reductions to the budget for Scotland for 2010-11 as part of Conservative efficiency plans could be delayed until next year. We continue to press for further information.
I am delighted to confirm that I agree very much with Anne McLaughlin that Scotland would be better off as an independent country. We would certainly be able to take decisions that are appropriate to Scotland and to create the bold economic opportunities that our country needs at this time.
Will the cabinet secretary confirm whether it is still the Government’s intention not to exercise one of the powers that it currently has and raise the Scottish variable rate of income tax? What are the Government’s reasons for that decision and for how long will that decision be in place?
Question 18 has been withdrawn.
In light of that answer and the potential seriousness of cuts in future years, does the cabinet secretary agree that Scotland would be better served out of the bankrupt British state, free from the union’s debt and destructive wars and free from the poisoned chalice of Westminster’s patronising pocket-money funding mechanism, something that can happen only when this chamber has the full powers of a normal and independent Parliament?
I know that Mr Brownlee is a keen reader of the Government’s budget document, so he will know that it says that we are required to make a statement about whether we intend to use the Scottish variable rate. I confirmed during the budget process that that would not be the case. Obviously, the Government considers the question in every budget and we will consider it in the ordinary fashion whenever we have information from the United Kingdom Government on the likely scale of our budget settlement. I say to Mr Brownlee, however, that the Government’s perspective has been not to use those tax powers since it came to office and I do not envisage that changing.
Aberdeen Western Peripheral Route
We expect, subject to value for money, to fund the Aberdeen western peripheral route through a privately financed non-profit-distributing contract.
The minister might be aware that numerous guesstimates of the likely cost of the AWPR are circulating in Aberdeen, put about by groups that are fundamentally opposed to the road. Will he give an assurance that accurate figures will be given to the north-east public at the earliest possible opportunity, with those figures to include the likely financial implications of the on-going objections from opponents of the road development?
There will be a cost if objections proceed in some of the ways that have been suggested. We will share any updates that come to hand, particularly with the two councils that are each responsible for 9.5 per cent of the funding. When we go to the market we will have to provide figures within which we expect bids to be made and, of course, those will be put into the public domain at that time.
The abnormal number of questions that have been either withdrawn or not lodged allows me to say something for the first time in this Parliament—question 20 is from Jackie Baillie.
West Dunbartonshire Council (Audit Scotland Report)
In a sense, I do not disagree with Jackie Baillie, but as I said in my original answer, COSLA and the Improvement Service continue to provide support to the council in implementing its plans. That represents practical assistance to the local authority. It is a point of debate whether it is effective in bringing about the necessary outcomes as a consequence of the Accounts Commission’s findings following the further analysis that has been undertaken.
I am glad that Jackie Baillie deprived us of our opportunity to woo at the fact that she was not here in time.
The cabinet secretary is right to point out that it has been four years since Audit Scotland first reported its concerns about the leadership in the council, staff morale and demonstrating best value. It must be of concern to the Government, therefore, that four years on, the capacity of West Dunbartonshire Council to change the situation is surely in question.
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Gaelic (Action Plan)