General Questions
Living Wage (Local Authorities)
The Scottish Government is leading by example by including a requirement in our public sector pay policy for 2010-11 for a living wage to be paid to employees covered by the scope of the policy.
I have in my hand a response to a freedom of information request that shows that 16,000 people who work directly for local authorities throughout Scotland still earn less than £7.20 an hour. Is the cabinet secretary aware of the power of local authorities to help the working poor to work their way out of poverty? How will he ensure that those people have a better chance of earning a decent living wage?
The issue comes back to the points that I made in response to Kezia Dugdale’s first question. Although the Government can set an example, we have to accept that local authorities are statutorily autonomous bodies. They are responsible for setting the terms and conditions of employment of their own staff. It is entirely up to local authorities to determine the stance that they take.
In those local authorities that have adopted the living wage, has that been passed on to and adopted by arm’s-length organisations and trusts within their remit?
That would again be a matter for the local authorities involved. Clearly, the logical extension of a decision on the part of a local authority to take a stance that is designed to tackle the issue of low pay and provide a living wage for individuals would be to incorporate the bodies that act on its behalf. As Clare Adamson will know, the Government has encouraged public authorities to support the living wage campaign and we will continue to do so.
Will the minister meet Kezia Dugdale and me to discuss the plight of contracted staff in this very building, a number of whom are being paid below the living wage and whose terms and conditions leave a lot to be desired?
That is a matter for the Scottish Parliamentary Corporate Body. Mr Findlay may wish to meet me and others on the matter, but I do not think that it comes within the locus of the cabinet secretary.
Does the cabinet secretary agree that the downside of the living wage is that it does not apply to the private sector, that the real answer must be to look at the low level of the national minimum wage and that power over that should be devolved to Scotland?
I rather like the approach of the Presiding Officer answering questions that are sent in my direction. I hope that that is a trend that will carry on for some time to come.
It is because they are within my remit, Mr Swinney, not yours.
I am aware of that, Presiding Officer. I thought that I would chance it for a second, but I will not do so again. [Laughter.]
Enterprise Zones (Selection Criteria)
The Scottish Government is currently developing plans for the introduction of a number of enterprise areas in Scotland so as to maximise their economic impact. The criteria we will use to identify specific sites will balance a number of considerations. Those include the potential for attracting significant investment in Scotland’s key sectors and the scope for impact on areas of Scotland where we need to improve economic performance and address issues of disadvantage and deprivation.
Although we all welcome the recently published Scottish unemployment figures, which contrast starkly with the United Kingdom figures, unemployment endures in some parts of the country more than in others. Is the cabinet secretary aware that three Glasgow constituencies are in the top five for unemployment claimant count, with Maryhill and Springburn, where I stay, having the highest? Does he agree that there is a strong case for enterprise zone status in those key areas? Does the Government agree that there is a moral duty to use economic interventions to improve opportunity for people in the worst-hit parts of Scotland, not merely to maximise economic growth more generally?
There is a challenge in ensuring that areas of deprivation and disadvantage are appropriately and adequately supported to encourage an improvement in the life chances of the individuals who live there, whose economic prospects depend on the economic activity in those areas. As I said in my initial answer to Mr Doris, areas such as those that he mentioned, including Springburn and Maryhill, will be considered in relation to issues of disadvantage and deprivation. I assure him that the Government is determined—as we set out in the economic strategy that was launched on Monday—to support and deliver increased economic growth in Scotland in a way that reaches every part of Scotland, no matter the scale of the challenge that exists in certain parts of the country.
I would expect a place such as Inverclyde to be high on the cabinet secretary’s priority list. Can he assure us that the enterprise zone work that the Government is going to carry out will be in addition to, supportive of and complementary to the existing work of the urban regeneration companies in such areas rather than to its detriment?
All the approaches that we have had about enterprise zones will be assessed dispassionately to determine how the maximum economic impact can be achieved. Support is being directed to different parts of the country in different ways. Mr McNeil has asked questions about urban regeneration company issues on a number of occasions in the past. I point out, in passing, that he was unable to support the provisions in the budget that supported the urban regeneration company in Inverclyde, but that is history. I assure him that the Government’s approach will be to look dispassionately at the opportunities to strengthen economic impact in all parts of the country.
What can the cabinet secretary do to address the concerns of the companies that have approached me with the perception that Government policy simply is not working for them? They are concerned that, although Cowdenbeath has seen the largest increase in unemployment in the whole of Scotland, regional selective assistance is not working for them and they are being driven down to England, where the terms seem to be much better for them.
I am happy to explore any representations that Mrs Eadie wants to make to me about the position of individual companies. The approach that has been taken by Scottish Enterprise has been to set out a mechanism that supports companies in every part of the country to maximise their potential. I do not have to hand the details of the companies in Cowdenbeath that will receive that support, but I am happy to explore the matter for Mrs Eadie. The Government’s ambition is to ensure that we properly and effectively support Scotland’s company base to expand. We saw some of the fruits of that in the labour market statistics that were published yesterday, which showed a rise in employment and a fall in unemployment in Scotland.
Credit Unions (Devolution)
The Government believes that Scotland should have greater responsibility for the decisions that affect our economy and our collective prosperity, including decisions on the work of credit unions.
Does the cabinet secretary share my concern that credit unions in Scotland are now being instructed by the Financial Services Authority to furnish a well-known credit reference agency with their individual members’ personal details?
I am aware of the issue, which was the subject of representations that Mr Lyle made to me on behalf of the Newarthill credit union. I will work to address the issues raised. I understand the concerns and we will work to identify whether a solution can be delivered to improve the position and allay the fears of the credit unions.
Question 4 has been withdrawn although I note that Joan McAlpine is in the chamber.
Royal Alexandra Hospital (Children’s Ward)
In the past, ministers have been willing to intervene to stop the reduction of health services. If the health board presses ahead with its proposals, will the cabinet secretary use her influence to retain children’s services at the current level at the RAH in Paisley? Will the cabinet secretary come to Paisley to meet staff and parents and hear their concerns at first hand?
I appreciate the member pointing out this Government’s proud record in keeping care local. Where any proposals from a health board constitute major service change, as Cabinet Secretary for Health, Wellbeing and Cities Strategy I have the ultimate say in whether the change goes ahead. The member will appreciate that, due to my formal part in the process, it is important that I do not pre-empt consideration at this stage. Just as I would expect the health board to consult widely, if the decision comes to me I will take into account all representations and I would be happy to visit the hospital to speak to patients, their families and staff who are concerned by any proposal.
Stagflation
Economic recovery is taking place in Scotland, as shown by the strong labour market performance yesterday. We are concerned however that this progress could be undermined by the coalition's spending cuts, which are front-loaded to this year and are particularly severe for capital spending.
Is the cabinet secretary aware that UK input prices overall rose by 18.5 per cent over the 12 months to July 2011? Significantly, imported food prices rose by 13.8 per cent, imported metals prices rose by 22.1 per cent and oil products prices rose by 45.4 per cent. Does the cabinet secretary agree that, with UK economic activity stagnating and serious inflation at our factory gates, Scotland—more than ever—needs the political and economic power to manage its economy?
I agree with the point made. The current economic circumstances demonstrate that it is possible to take a policy course appropriate to the Scottish economy that delivers results for the people of this country, as evidenced by the labour market statistics announced yesterday, to which I referred. The conclusion we must arrive at is that Scotland would be better placed to exercise judgment on economic issues on its own terms, which is the position of this Government.
Will the cabinet secretary take the opportunity to explain the ground rules according to which every positive economic indicator is claimed as a credit to this Government yet every negative economic indicator is blamed on the evil Westminster Government? Will he also take the opportunity to explain how, in an independent Scotland, pigs might fly?
I will persistently remind Mr Johnstone of two things that he has said in the past 24 hours. First, he said that the United Kingdom Government is evil. Secondly, yesterday he showered me with praise for my economic management. I have not yet been to a framing shop to frame the Official Report of the debate, but I am sure that one of my colleagues will attend to the challenge.
Infrastructure Investment Plan
An updated infrastructure investment plan will be published by the Scottish Government in the autumn.
Of course, the autumn is a wide category, but I look forward to seeing the plan.
I am more than happy to include in the plan as much information as it is possible to provide at the time. The plan takes a very long-term perspective—around 10 years—and will contain less of the precise information that the member described for projects that are planned for towards the end of a 10-year period than it will for projects that are taking place within, say, the next three years. However, I am always happy to share with members information about the excellent suite of projects that we are taking forward.
Policing
The Government will continue to put in place the resources needed to maintain front-line policing. This year, despite the unprecedented cuts to Scotland’s budget from Westminster, the deal that we struck with local councils means that our commitment to keeping 1,000 additional officers in Scotland’s communities is being maintained.
I thank the cabinet secretary for his answer and warmly welcome his proposals to streamline our police service and accountability structures. Currently in North Ayrshire, where my constituency is, only two councillors are involved in policing matters. Will the cabinet secretary indicate how many North Ayrshire councillors might be involved under a single police force, which would make it much easier for people to raise policing issues with their local representatives?
The member makes a valid point, which is why we are keen to ensure that accountability is not only maintained but enhanced. As the member points out, in North Ayrshire currently two councillors out of 30 sit on a joint police board of 34. In a single service, we anticipate that there would be around six times that number, which would mean that, instead of two councillors each representing 68,000, we would have 12 councillors each representing 11,000 people. That will provide local members with far better opportunities to meet on policing, to put forward their points and to maintain the local accountability that is necessary in Scotland to ensure that the excellent police service that we have is maintained.
Question 9 is from Chic Brodie. I advise Mr Brodie that I will not take a supplementary.
Scotland Food and Drink (Targets)
Yes, the Scottish Government considers those targets to be achievable. Statistics published last week show that revenues from food and drink reached an all-time high of £11.9 billion in 2009, an increase of more than £700 million on the previous year. We are making phenomenal progress, and we will continue to work with the sector to ensure that it goes from strength to strength.