Plenary,

Meeting date: Thursday, May 15, 2008

Official Report 728KB pdf

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Question Time

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SCOTTISH EXECUTIVE

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Finance and Public Services and Communities

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City of Edinburgh Council (Rate Relief)

To ask the Scottish Executive whether it will assist the City of Edinburgh Council in providing rate relief to shop traders whose businesses have been adversely affected by tramline construction work. (S3O-3326)

Under existing arrangements, the City of Edinburgh Council may provide rates relief to local businesses in circumstances in which those businesses would otherwise suffer severe hardship. When relief is approved by the council, the Scottish Government will meet 75 per cent of the cost.

I thank the cabinet secretary for his reply and for his letter in April, when he explained that and other issues to do with rates relief after I wrote to him on the subject. Has he received approaches from the City of Edinburgh Council in that regard? If the council approaches him, will the Government automatically make the 75 per cent contribution? I hope that that will be the case. I am sure that the cabinet secretary is aware of the severe hardship that many traders are suffering because of the effect on their businesses of the tramline construction work. If relief is not granted, some traders might well go out of business.

I am acutely aware of the difficulties that are faced by businesses affected by the tramline construction work. That was one of my concerns when I opposed the tramline development and I am sure that the previous Administration must have considered the issue when it decided to press ahead with the scheme without putting in place the type of financial support that this Administration has put in place.

In addition to the arrangements that I have spoken of, the Government has put in place the small business bonus scheme. As an example, in Constitution Street in Mr Chisholm's constituency, 10 of the 18 retail properties will be eligible for 80 per cent small business support scheme relief. That is the type of practical support that the Government has provided. I am sorry that Mr Chisholm and his colleagues did not find it within themselves to support that provision when the budget went through Parliament.

The member asked about the Government's 75 per cent contribution. If the City of Edinburgh Council comes to the Government with such a proposition, the Government is duty bound to provide the 75 per cent assistance. The test for hardship relief, which the assessor and the council must consider, is very clear and the Government will act in accordance with the statutory position.

The cabinet secretary is aware that Transport Initiatives Edinburgh has a £96 million contingency fund, which is earmarked for infrastructure overruns during the tramline 1a construction project. Does he agree that TIE should look, as a matter of urgency, to extend what the contingency fund can be used for so that it can be used to support local businesses? That would go some way to making amends for the inadequate compensation package that was put in place by TIE and the previous Labour council administration and supported by all other political parties in the chamber, and by Malcolm Chisholm.

I am sure that TIE will pay particular attention to the point that Shirley-Anne Somerville makes. The Government cannot become involved in those matters. We have made it clear that the Government will provide the financial support to allow the project to take its course, but the operational management of the project and its determination is a matter for the City of Edinburgh Council, which I am sure will be able to raise the issue with TIE.

I thank the cabinet secretary for both his replies—it is helpful to get on the record who has responsibility at different levels. I have had a number of such cases, not only in relation to the trams. It is useful to get the cabinet secretary's comments on the record, particularly when council works have led to disruption.

I urge the cabinet secretary to look favourably on any request that comes from the council. Members throughout the chamber have lobbied TIE to get as big a contingency fund as possible and to spend it wisely, so that it benefits not only the businesses that front the route but those on the streets behind, because they will be equally impacted on by quite lengthy closures.

I reiterate my sympathy for the businesses that are affected. As I stressed, that was one of the considerations that I had in my mind when I made the case to Parliament for us not to proceed with the tram development. It was blindingly obvious to anyone who considered the proposition that there would be formidable disruption to the city of Edinburgh. As members know, the Government did not consider that that was an appropriate course to take.

As I said, there are hardship schemes that can be applied in such circumstances. As part of the project, TIE has put in place a scheme that is funded to the tune of about 92 per cent, if my memory serves me correctly, from Transport Scotland, whose budget comes directly from the Government. The Government has put in place very significant practical support for small businesses, to reduce their business rates. I only wish that Labour members had supported that proposal.

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Local Government Funding (Ageing and Declining Populations)

To ask the Scottish Executive whether it will review the local government funding arrangements to reflect the needs of local authorities which have ageing and declining populations. (S3O-3348)

I have already announced that I intend to review the local government finance funding formula jointly with the Convention of Scottish Local Authorities in time for the next three-year settlement in 2011-12.

In his discussions with local authorities on the funding mechanisms for elderly care, will the cabinet secretary ensure that proper consideration is given to the disproportionate impact of the demand for elderly care services on authorities with declining populations? Currently, 17 per cent of the population of the Inverclyde Council area is 65 and over, but the figure is set to grow to around 25 per cent. As I am sure the cabinet secretary is aware, the problem must not be addressed in a blanket form across Scotland, as there are significant pockets in which it is even greater than it is generally.

I understand the issues that Mr McNeil raises and with which local authorities must wrestle. The pattern of population movement has a significant effect on local authority finance. The overwhelming majority of drivers of the existing local government funding formula are population indicators. The issues that the member raises will be considered in the discussions that I will have with COSLA on the funding formula. As part of that process, I will be prepared to listen to any further, more detailed representations that Mr McNeil may want to make to me about such issues.

The Assynt centre is a small centre for respite and elderly care in Lochinver in west Sutherland. Some time ago, the centre went from operating a seven-day week to operating a five-day week, providing coverage on only six weekends in the year. We seem to be unable to get it back up to providing local care for people seven days a week—the beds could be filled tomorrow. I will not ask the cabinet secretary for money, but will he ask his officials to look at the detailed issue that I have raised, which is causing unhappiness in a remote and beautiful part of Scotland?

I am not familiar with the details of the case that Mr Stone describes, but I will be happy to look into those issues. The provision of care in remote and rural parts of Scotland is often a challenge, because in such locations it is difficult to ensure the availability of staff. A number of factors must be considered in that discussion. I will write to Mr Stone about the case after I have looked into it.

Following this morning's statement on equality and diversity, does the cabinet secretary agree that it is essential that equality impact assessments are made to ensure that such concerns are addressed? Does he agree that it is a mistake to treat equality as an add-on, rather than as the starting point for policy analysis?

The treatment of equality issues is very much part of the Government's policy-making process. I assure Marlyn Glen that those considerations are at the heart of the decisions that we take on funding arrangements for local authorities, to ensure that citizens of our country are able to make use of its public services and to appreciate the changes that take place there in pursuit of the Government's objectives.

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Ravenscraig

To ask the Scottish Government what recent discussions it has had on the future of the Ravenscraig development. (S3O-3295)

The Minister for Enterprise, Energy and Tourism met representatives of North Lanarkshire Council to discuss the Ravenscraig project on 13 March 2008. He has arranged to visit the site on 19 May 2008 and host a meeting involving relevant stakeholders, including the development partners, to discuss a range of issues that relate to the project. I visited the site with the leader of North Lanarkshire Council, Councillor Jim McCabe, last summer.

Does the cabinet secretary agree that the Ravenscraig programme is essential for the regeneration of a large part of central Scotland, in that it offers the opportunity to bring a new vitality to the area, just as this Government is doing throughout Scotland? Can he guarantee that delivery of the project will remain one of the Government's top-level commitments?

Dialogue and discussions on the project take place primarily through Scottish Enterprise. Scottish Enterprise will continue to hold a dialogue with the Ravenscraig project, to which support has been provided over the past two years. Support has been pledged to it for the present financial year and for 2009-10, and discussions are being held about future commitments.

Will the cabinet secretary advise the Parliament whether the regeneration of the Ravenscraig site is considered to be of national, regional or local significance and therefore whether Scottish Enterprise or North Lanarkshire Council will be responsible for providing the public sector share of the funding?

The Ravenscraig site is classified as a site of regional significance, so the matter will be dealt with by Scottish Enterprise. It is a significant project that can revitalise part of Scotland's previously active industrial areas. It will be for Scottish Enterprise, in partnership with North Lanarkshire Council, to hold discussions on the funding of the project. The purpose of the Government's reforms in that regard is to ensure that our local authorities and the enterprise agencies work with cohesion and continuity to ensure that we have an infrastructure that is appropriate for the 21st century.

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Inward Investment

To ask the Scottish Government what plans it has to increase the amount of foreign inward investment to Scotland. (S3O-3279)

Through its network of more than 20 overseas offices, Scottish Development International takes knowledge, skills and ideas from Scotland out to the rest of the world by strengthening trade links, promoting Scottish exports and encouraging investment overseas. SDI brings capital, knowledge, skills and ideas into Scotland from Europe, the middle east, the Americas and the Asia-Pacific region by attracting high-value inward investment projects. During parliamentary recess, ministers join SDI professionals in supporting events such as Scotland week to help promote the Scotland brand and attract inward investment.

SDI has two performance measures, one of which is the number of high-value jobs that are attracted through inward investment. Targets are reviewed annually to reflect global economic conditions. SDI met its targets for 2007-08 and, despite the tough economic climate, plans to set similar targets for 2008-09.

In an era in which world markets are tumbling, economies in the middle east are still going strong. One reason for that, which is often overlooked, is the Islamic finance model, which supports many middle eastern economies.

Islamic finance brings more than £1 billion to the London economy alone, along with hundreds of jobs. Why has Scotland not had a share of that? Will the minister assure me that he recognises the great benefits that Islamic finance could bring in Scotland? Will he continue to work with those people who are pushing for Islamic finance measures to be adopted in Scotland?

That question raises some sensible opportunities for Scotland. It is worth clarifying for the Parliament that the principle behind Islamic finance and banking products is that all forms of interest are forbidden. The Islamic financial model works on the basis of the customer and the bank sharing the risk of any investment on agreed terms. That is very interesting, and it is very much in line with the Scottish co-investment fund, which is already compliant with the Islamic finance model.

Cognisant of the upside that Bashir Ahmad has identified, the First Minister has met the Islamic Finance Council, and officials are now working with the council to consider ways in which Sharia-compliant products can be developed in Scotland. It is a particularly good fit for us, given Scotland's reputation for ethics and integrity, and the system's thinking of bringing people together to get a shared objective has great commonality with the values that we hold.

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Small Business Bonus Scheme

To ask the Scottish Executive what measures it is putting in place to measure the effectiveness of the small business bonus scheme and how this will be reported. (S3O-3341)

We will be evaluating the small business bonus scheme after it has been fully implemented in 2009-10. An evaluation report will be published.

Will the minister confirm that there are no conditions attached to the scheme, other than someone having a small business; that there are no incentives for good practice, for example training local staff, recycling or anything else; and that there are no expectations of this significant Government funding, other than that people will apply for it?

Has an equality impact assessment been conducted on the policy measure? What did it find? Will the minister confirm that, given his Executive's alleged commitment to equalities, it is not sufficient simply to evaluate something on the basis of crossing our fingers and hoping for the best? Will he confirm that we need hard measures, and that we need to know what the scheme is intended to deliver and whether it has delivered what ministers claim for it?

It is curious that, during one question session, one member of the Labour Party asks the Government to support the business community and another Labour member condemns the Government for supporting the business community. That rather suggests that the Labour Party needs to think about its priorities and how it is advancing them.

I confirm to Johann Lamont—as I have done many times before on this question—that the Government believes that it is important to support people who are operating businesses in an extremely challenging financial climate, of which we heard further details yesterday from the governor of the Bank of England. The United Kingdom Government is taking steps to tackle the inflationary pressures that people are wrestling with. We should support the business community in taking decisions to invest in its future. Those who operate businesses have the best opportunity to judge the most appropriate way in which to invest the resources that the Government has made available through the small business bonus scheme. We should consider those factors and the scheme's impact on businesses as part of the Government's focus on delivering better outcomes for the people of Scotland, which comes under our national performance framework.

If the evaluation shows that the small business bonus scheme has been a success, a hope that I assume we all share, even the Opposition—despite the appearances that it gives to the contrary—will that provide a strong argument for control over other types of business taxation, such as corporation tax, to be devolved to the Scottish Parliament?

That would be an excellent idea. The application of the Government's approach to the small business bonus scheme, which is to create a more competitive climate in which our businesses will have the opportunity to flourish and generate greater wealth in the small business community, illustrates our commitment to creating a vibrant economy and how we could go further if we had a broader range of financial powers. I am sure that that is the direction in which the Parliament is travelling, now that all the other parties are participating in the Calman commission, with its focus on strengthening the powers of the Parliament, and given the Government's commitment to ensure that the Parliament has the full range of powers at its disposal.

Question 6 has been withdrawn.

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Western Isles Economy (Wind Farms)

To ask the Scottish Executive what additional investment plans it has for the Western Isles economy following its rejection of the proposed Lewis wind farm planning application. (S3O-3355)

I announced in Stornoway on 17 March a study into how renewable energy projects, as well as other potential economic development projects, can deliver economic and community benefit to the Western Isles. That work is being pursued urgently. We are also working closely with the Harris tweed and tourism sectors.

Lewis wind farm represented the biggest economic development prospect for the islands for many decades. It would have created jobs in manufacturing and a local income stream into the future, which would, in turn, have stimulated more investment locally and created more prosperity. The Government's decision to refuse consent—which is its right—removes that economic opportunity.

As the minister knows, the Western Isles economy is fragile and the islands need support to help to fill the gap that has been created. Will he guarantee that the Highlands and Islands Enterprise budget for the islands will not be subject to the cuts that are going on in HIE but will be added to in recognition of the difficulties in the Western Isles? Will he also support further capital investment in important infrastructure work through the local authority? Given that the reason for the rejection was environmental, will he set up a task group specifically to consider how the Government can contribute resources with, for example, the RSPB and other conservation organisations to better interpret and improve the natural habitat to encourage more tourism in the islands?

The study group is essentially doing what Peter Peacock asks. Far from removing economic opportunity, we are focusing capability to maximise it. In addition, we must recognise that the benefit of the small business bonus scheme is being disproportionately felt in the Western Isles and that the islands are poised to benefit from the road equivalent tariff pilot in October.

Any other thoughts that Peter Peacock has should be channelled into the study and into the debate that we will have in August when Michael Russell and I go back up to Lewis to ponder on the study and work with the community. We will also take time out to meet Harris tweed interests in the island and get that industry on to a firmer footing.

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Transport (Fife)

To ask the Scottish Executive what its transport priorities are for the Fife area. (S3O-3322)

Our priorities and our commitment to investing in transport links to Fife are clear through the construction of the Stirling-Alloa-Kincardine railway; the removal of tolls on the Forth and Tay road bridges; the construction of the upper Forth crossing at Kincardine; and our decision to build the Forth replacement crossing, which is the biggest transport construction project in Scotland in modern times. We also await information about the Thornton to Levenmouth rail link.

The minister will be aware that a Leven to Thornton rail link and improvements to the Redhouse interchange are high transport priorities for Fife Council. I hope that he will do all that he can to support the realisation of those projects. He may also be aware that a petition was submitted to the Parliament this week calling for improvements to the A92, particularly around Glenrothes. I am aware that there are competing priorities within Fife and a finite pot of money, but is he willing to consider the proposal for the A92 seriously and to meet me to discuss constituents' concerns about the road?

Claire Baker raises a number of issues. We had a useful debate on the Thornton to Levenmouth railway, in relation to which there are particular opportunities. We will consider the A92 in the context of the strategic transport projects review.

On the subject of railways, Claire Baker will be aware that the renegotiation of the ScotRail franchise has provided an additional hourly service that will run through Fife and additional trains from Markinch, and generally strengthened Fife services. We are providing substantial support to transport in Fife.

Will the minister confirm that the first act of the Labour-Liberal Democrat Executive in 1999 was to cancel the dualling of the A92 from Glenrothes? Does he agree that the refusal of the previous Labour-Liberal Democrat Executive and Labour Fife Council to invest in the transport infrastructure in Fife has left unrealised many projects that the various communities regard as priorities? Will he meet me to discuss how the Leven to Thornton junction railway can be progressed as a priority?

I apologise to Claire Baker, because I should have said to her that I will, of course, meet her to discuss any concerns that she has—as I will also, of course, meet the member for Central Fife.

I was not here in 1999, to my regret, but I am sure that Tricia Marwick is extremely well informed about the activities of the then Labour Executive. The role of this Government is to ensure that many of the areas of neglect in transport throughout Scotland are addressed.

What plans does the Government have to upgrade the Redhouse interchange, which Claire Baker mentioned? All stakeholders in Fife agree that the interchange upgrade is of the highest priority in the social and economic regeneration of mid-Fife in particular, and Fife in general.

That is part of the strategic transport projects review, which is a formidable piece of work that was initiated some time ago and will report to ministers during the summer. We will see whether the Redhouse roundabout and any upgrades associated with it fall within the review or will be dealt with via the regional transport partnerships. [Interruption.]

My mobile phone was switched off when I stood up, Presiding Officer, but it seems not to be now.

We will consider the Redhouse roundabout in the context that I have just mentioned.

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Local Regeneration Services (South Lanarkshire)

To ask the Scottish Executive what progress has been made in discussions between South Lanarkshire Council and Scottish Enterprise Lanarkshire on taking forward local regeneration services. (S3O-3332)

The Convention of Scottish Local Authorities has represented local government in the discussions. Accordingly, there have been no detailed discussions between Scottish Enterprise and South Lanarkshire Council on the issue.

The minister will be aware of the closure of Ramage Distribution in Glespin in my constituency. It was the largest employer in the area, so the discussions between the local authorities and Scottish Enterprise are crucial to ensure the regeneration of the area. What proportion of the staff of Scottish Enterprise Lanarkshire are to be transferred to South Lanarkshire Council and what funding will be made available to them to provide local regeneration services, particularly those with the aim of enhancing future employment prospects in the Douglas valley?

The member must consider the issue in the context of the totality of what is happening, including the recently announced £62 million funding package for the Clyde Gateway URC—urban regeneration company. It will transform the area and bring land back into economic use, which will provide new jobs, housing and leisure opportunities. In addition, the member should recognise that the way in which the enterprise portfolio now operates means that we are keen to engage and catalyse the bringing together of the enterprise agencies, local government, local business, the voluntary sector and other elements of the public sector. If she thinks that I can help to facilitate that in any way in her area, I will gladly step up to the mark.

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Renewable Energy (Interconnectors)

To ask the Scottish Government what progress has been made to ensure the installation of interconnectors for renewable energy transmission from the Highlands and Islands to urban markets. (S3O-3288)

The Government recognises the need for grid reinforcements to capitalise on the renewables potential of the Highlands and Islands, and we will continue to discuss those matters with the Office of Gas and Electricity Markets, the Department for Business, Enterprise and Regulatory Reform and other stakeholders.

We will shortly apply for European funding for a feasibility study to explore potential grid links from Scotland to Ireland. If successful, the study will commence later this year, with an expected completion date of 2010. In addition, we are considering funding routes to support a separate grid feasibility study to examine links from our east coast to the coasts of northern Europe. The studies will aim to help make the case for commercial investment in transmission infrastructure between more remote Scottish regions and centres of demand.

What progress has been made on installing power lines from Beauly to Denny and on the Viking Energy project for a cable under the sea from Shetland to a landfall in Moray? Is Ofgem helping to achieve the ends more speedily? I hear what the minister says about connections to the coasts of Europe and Ireland, but to serve them we must have interconnectors from our Highlands and Islands.

Given the Scottish ministers' role in determining the Beauly to Denny application, it would be inappropriate to speculate on progress at this time. Similarly, it would not be helpful to comment further on the Viking Energy project, on which we have recently issued a scoping opinion report to the developer. However, we realise that grid upgrades will be necessary if we are to achieve our renewables goals. We will continue to discuss that with Ofgem and other stakeholders and to press for changes in the grid regime, so that it is more aligned with the objective of encouraging more renewable generation in Scotland.

Following some recent decisions, does the minister acknowledge the need to boost the wind power sector's confidence in Scottish Government policy? Does he also acknowledge that existing grid provision would allow the connection of a number of significant projects in the south of Scotland? Those projects are currently before him for approval. Will he offer encouragement to the wind power sector by making early and positive decisions on a number of those proposals?

The member needs to consider our track record in approving projects—projects that include the third largest ever. The rate at which we have approved projects is well over three times the rate of the previous Administration. He should consider in the round all that we are doing to bring the sector together and to optimise and maximise our renewables interests. We are ensuring that more of the wealth that is created by renewables is retained in Scotland in the long term.

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Local Income Tax

To ask the Scottish Executive what its current position is on developing and publishing its proposed model of local income tax. (S3O-3333)

We are consulting on our proposed model. The consultation period runs to 18 July. We will publish an analysis of the consultation in the autumn. Our proposals to abolish council tax have been endorsed twice by Parliament, and based on recent opinion polling they clearly have public support.

I am concerned about the effects of the calculations on local government services. The cabinet secretary has said that the Scottish Government's calculations on how much people will pay under local income tax are based on assumptions about people's living circumstances and assumptions about the relationships between people's levels of income and their likely housing scenarios. Will he at least provide details of those assumptions and explain how they provide—to use his words—a "robust basis" for calculations?

The Government has published a consultation paper on this subject and we have placed information in the Scottish Parliament information centre setting out the basis on which our calculations are made. I would have thought that that information would be adequate. Our projections are based on well-developed models in the Scottish Government of the likely revenue-raising potential of the local income tax.

It is sad that the Liberal Democrats cannot be with us today to support the Government on this particular issue. I will step into the breach and make a helpful suggestion.

So that everyone can take a dispassionate view on the benefits or otherwise of a local income tax, would it not be exceptionally sensible of the Government to issue local income tax bills prior to the implementation of the tax? That would allow people to compare their bill for the local income tax with their bill for the council tax.

As part of the process of parliamentary dialogue, I always listen attentively to Mr Brownlee's helpful suggestions. Indeed, I listen to the helpful suggestions of all members of the Parliament. However, I may not take Mr Brownlee up on his suggestion. For once, he may have let the side down by suggesting an unnecessary element of public expenditure on a trial run of issuing bills.

Mr Carlaw is in the chamber, and what I am saying may link to some issues that concern him. I am thinking in particular about the unnecessary expenditure that is incurred when certain publications from local authorities drop through people's doors. I will therefore not be keen to take Mr Brownlee up on his idea of spending more public money.

Like Mr Brownlee, I very much regret the absence of my friends on this particular issue. It would have been nice if they had been here.

A few minutes ago, Mr Mather correctly described Scotland's good record on inward investment. However, a concern about the Government's plans for a local income tax is that employers might find that they have to absorb the financial pain that their work forces suffer, thus raising their cost base, which could be a disincentive to potential inward investors. Will the cabinet secretary commission and publish an independent assessment of the likely impact of his income tax plans on Scotland's competitiveness in the foreign direct investment market?

The Government is taking all the steps that it can to strengthen and improve Scotland's competitiveness. As Mr Gray will know, our responsibilities in this area are very narrowly set by the Scotland Act 1998. By implementing the small business bonus scheme, we have used, in effect, the only power that is available to us to reduce business costs and business taxation. I would have been more than delighted if Mr Gray had supported me on that issue during the budget process.

The Government's proposals on the local income tax have been set out. The way in which the tax will be calculated and collected is clear. As is normal practice, we want to have a debate through the consultation process and to introduce legislation.

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First ScotRail Franchise

To ask the Scottish Executive what the cost to the public purse is of extending the ScotRail franchise. (S3O-3360)

The extension of the ScotRail franchise is expected to reduce the net cost to the public purse over the period to 2014.

Is the minister aware that FirstGroup's ScotRail operating profits were reported as £11.4 million for 2006-07? Why, then, when extending the rail franchise, did he allow for up to £30 million of profits to be retained by FirstGroup annually before being capped? Why did he decide to move away from the Scottish National Party's pre-election commitment to consider running Scotland's railway through a not-for-profit trust, which would have ensured that all the operating surpluses were invested in our rail network?

It is always interesting to hear policy changes announced from the Labour benches. I will listen with interest to next week's episode.

The member is correct to point to £11.4 million of operating profits in 2006-07. I thought that the member was present when I gave evidence to the Transport, Infrastructure and Climate Change Committee on that very subject, in which I indicated that profits for the ScotRail franchise are rising rapidly. In consultation with external financial consultants, we estimate that profits will approach the £30 million cap that we have put in place, thus unreasonable profits will not be made by our franchisee. That is on top of the return of £70 million, regardless of performance—in other words, guaranteed—for us to invest in new railway services and new facilities throughout Scotland, including priced option 8, which provides for additional services to Shotts.

Will the minister listen to an alternative version of that question, in which I ask him to confirm the benefit to the public purse of extending the ScotRail franchise?

There is substantial benefit from extending the ScotRail franchise. As a North East Scotland MSP, the member will be well aware of the improvements in rail services between Dundee and Aberdeen and between Aberdeen and Inverurie, which have created hourly services. Those improvements have put the most cost-effective parts of the long-discussed proposals for Aberdeen crossrail into operation, using money provided by the franchisee, not the Government.

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United Kingdom Energy Bill

To ask the Scottish Government what representations it has made to the UK Government about the UK Energy Bill. (S3O-3299)

Our strong representations to the UK Government on the Energy Bill have led to an agreement that is in the best interests of energy policy in Scotland. The bill provides for a single licensing framework for the storage of carbon dioxide throughout Scottish waters, as requested by the industry, with the Scottish ministers taking decisions on Scottish territorial waters. We have introduced a legislative consent memorandum and are currently agreeing a memorandum of understanding with the UK Government on the operation of the licensing regime. The UK bill will amend provisions in the renewables obligation but executive devolution will continue, allowing a distinct approach to banding, if this Parliament decides it is appropriate.

Most important, the UK has had to accept our argument that the bill's nuclear provisions cannot extend to Scotland without this Parliament's agreement. The provisions are not needed and do not apply to Scotland. New nuclear power stations are not necessary to meet renewable electricity targets or carbon emissions targets, and are not wanted in Scotland. Further, they would not be compatible with optimising Scotland's economy and the full potential of Scotland's renewables sector, in line with Scottish, UK and European Union climate change goals.

The minister will be aware that the UK Government failed to support an amendment to the Energy Bill that would have boosted the take-up of domestic microgeneration through the introduction of feed-in tariffs. Will the Scottish Government press the Westminster Government to support such a measure in the future, to ensure that domestic consumers can get a long-term monetary benefit from their investment in microgeneration?

The experience of other countries, particularly Germany, suggests that such tariffs are effective, particularly in encouraging small-scale renewable generation. The issue needs careful consideration, and we are pleased that the UK Government is to consult on the matter in the coming months. Meanwhile, from next April, we plan to double support for very small generators in Scotland, using the renewables obligation mechanism.

We have a little time in hand, so I will allow a final question.

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European Structural Funds

To ask the Scottish Government what steps are being taken to ensure that, in the next application round for European structural funds, there is a level playing field for smaller local authorities that have fewer administrative resources. (S3O-3280)

The next application round for European structural funds will allow time between the first stage of each application and the final closing date so that the intermediary administrative bodies can offer help and feedback to all applicants. That should be of particular help to organisations that have not previously benefited from European funding or which have fewer administrative resources.

I thank the minister for his assistance in arranging at short notice a meeting with his officials on the results of the structural fund bidding process.

Does the minister agree that funding such as European structural funds can be extremely useful for areas such as Clackmannanshire, which has, on a smaller scale, some of the worst deprivation statistics in Scotland, and that it is imperative that the Scottish Government ensures that smaller local authorities are not perpetually disadvantaged by virtue of having fewer resources to devote to submitting high-quality bids, often at short notice? Will the minister undertake to ensure that the issue continues to be addressed by officials?

The intermediary administrative body is already in contact with officials from the structural funds division and is working with Clackmannanshire Council to consider how European funding can contribute to the goals that we all want to achieve in its area. I am sure that lessons will have been learned in the process to date. The next round of lowlands and uplands Scotland funding will be open in the summer for projects seeking to run through 2009, and I wish Clackmannanshire well in that regard.