Finance and Sustainable Growth
Retailers (Financial Assistance)
The Scottish Government recognises the vital role played by the retail sector with regard to employment, supporting local and regional economies, encouraging tourism and stimulating visitor numbers to Scotland and, in so doing, increasing sustainable economic growth. That is why we continue to support the sector through these challenging times. Last year, many retailers benefited from our £60 million investment in the regeneration and growth of our town centres, and we are prioritising skills and training and generating significant numbers of jobs in the Scottish economy through our economic recovery plan. There are encouraging signs that the approach is working, with Scottish retail output rising in the second quarter of this year, and we will continue to work closely with all parts of the sector through the Scottish Retail Consortium.
Recently, a constituent contacted me about the promotion of business and tourism opportunities in Inverclyde. His frustration at trying to move his project forward dates back to the time of the previous Scottish Executive, when money was sloshing about the enterprise agencies. Given the severe financial restrictions on the Scottish Government budget, what guarantees can be given to online businesses that are trying to promote economic growth and opportunities in Inverclyde and the west of Scotland?
The most widely used service for small and microbusinesses that are either getting started or growing is business gateway, which has offices in Greenock and other locations in the west of Scotland. Given the tourism element of the proposal highlighted by the member, I also think that VisitScotland would be happy to talk to his constituent.
It is interesting that the minister mentioned the town centre regeneration fund, which Labour, of course, called for. It was such a success that the Government cancelled it after a year, which was a pity. Does he think that the new levy on large businesses in Scotland—which will mean that they have to pay an extra £30 million, or the equivalent of 2,500 jobs—is such a good thing, given that it might well ending up costing jobs?
I recognise the member’s negativity and his track record in terms of cuts that were in the first instance formulated by the Labour Party. However, he will have heard the First Minister’s earlier message to the chamber about the broad shoulders of large businesses and the need to spread the burden to ensure that we come through all this with our town centres having the vibrancy that we want and without undoing the good work that has been done and which the member has just applauded.
Sedco 711 Oil Platform (Blowout)
Oil and gas and health and safety are reserved issues. However, the Scottish Government has responsibility for the protection and management of the marine environment. In that context, it is routinely informed of oil and chemical spills from offshore platforms and drilling rigs through the Aberdeen coastguard, which is notified of such incidents alongside the Department for Energy and Climate Change and the Joint Nature Conservation Committee via petroleum operations notice number 1 submitted by the offshore operator. Notification of the small spill in this particular incident was received through that route in December last year.
I thank the minister for his answer, but he has not told me whether it happened on or after 23 December. He will be aware that on 30 September the First Minister told my colleague Patrick Harvie:
I have to reject the charge of complacency. There is no complacency, and there is no room for complacency. We have 20 years of deep-water drilling experience and 315 deep-water wells have been drilled. We have confidence in the regulatory regime, which continues to work, and in the Scottish companies that provide the technology in the North Sea and which can export the technology to other parts of the world.
Traffic Scotland Website
The traffic Scotland website is updated in real time once information has been validated by the traffic Scotland operator. The information is received from intelligent transport systems monitoring equipment that is deployed on the network, and from the trunk road operating companies and the police. Weather information comes from automated processes that are provided by the Met Office.
I welcome Keith Brown to his new position.
I refer Elaine Murray to the discussion that we had earlier about the pressure on some websites. I subsequently discussed the matter with Transport Scotland officials. One issue is that the information has to be validated. That can sometimes cause problems and delays in making it available. Officials are willing to consider that matter to see whether things can be done differently. Obviously, it is important that the information is accurate, which is why they want to validate it. Looking at things such as texting and the trend of texts that come into them is one way in which they might be able to make information available more quickly.
Postal Services Bill
The UK Government’s proposals may put at risk services that are vital to communities throughout Scotland. We need more detail and confirmation that decisions will be made in the best interests of Royal Mail staff, local communities and Scotland’s economy.
Does the cabinet secretary share my concern about the emphasis on financial sustainability in the bill, which may place at risk some of the most cherished aspects of postal services, such as the post office network, six-day delivery and universal service obligations? Does he agree that communities in Scotland have already suffered enough post office closures? Will he seek reassurances from the UK Government that the bill will not herald another cull of local post offices? What perspective can he offer on the shedding of crocodile tears by some Labour MPs over the bill’s direction, given their party’s plan to part-privatise the Royal Mail?
I understand the motivation to ensure the Royal Mail’s financial sustainability. That is quite understandable in the current financial climate. However, other measures can be taken to expand the capability and capacity of the Royal Mail and associated services before we start to embark on the UK Government’s proposals—certainly, we should not start with the services that Mr Hepburn has raised concerns about, such as the universal service, six-day delivery and the strong post office network. I encourage the taking of a different course. The Scottish Government will certainly engage strongly with the UK Government on the matter.
Question 5 has been withdrawn.
Scotland Bill
The Scotland Bill fails to provide any significant levers to boost Scotland’s economy. At best, it is a missed opportunity; at worst, it is potentially damaging to Scotland’s economy. Analysis by the Scottish Government has shown that the income tax proposals have the potential to embed a long-term deflationary bias in Scotland’s budget, which we have estimated would have cost the Scottish budget £8 billion since 1999. Scotland needs full financial responsibility so that we can boost our recovery, invest in our public services and support long-term sustainable growth. The bill falls far short of providing that.
Does the Scottish Government agree that, until Scotland has powers to tackle tax evasion and tax avoidance, it will be hamstrung in its attempts to build a truly prosperous and fair society?
Tax avoidance is an important question that must be tackled. Any Administration that has any powers of financial responsibility must be able to tackle the issues that Dr Wilson raises.
With regard to the £8 billion figure that the cabinet secretary mentioned, the paper that the Government published on the issue had outturn data with regard to departmental expenditure limits, but the Scottish Parliament’s information centre is unable to inform me where the source data come from. Can the cabinet secretary confirm where the source data for his figures come from?
The data will come from the Government’s economists who produced the information that underpins the material that has been lodged in SPICe. I cannot understand why there is any difficulty in attributing where the source data have come from.
The cabinet secretary referred to the analysis that the Scottish Government has carried out of the Calman proposals as contained in the Scotland Bill. When does he intend to publish the similar modelling that I presume the Scottish Government has done on his alternative proposals, which he mentioned in his answer to Bill Wilson?
Many of the answers to the questions that Mr Peacock raises are contained in the document “Government Expenditure and Revenue in Scotland”, which demonstrates that Scotland contributes more to the United Kingdom than we get in return.
Further to Bill Wilson’s question on the need to address tax avoidance, will the cabinet secretary join me in congratulating the many activists in Scotland and throughout the UK who are targeting peacefully and constructively, but vociferously, some of the biggest tax avoiders in the UK, whose current approach to tax avoidance is being facilitated by the UK Government?
I am afraid that I have not quite caught up with the particular activism to which Mr Harvie refers, but if he cares to explain to me, I will happily look into the matter.
Local Authority Bed Tax
The introduction of some form of bed tax has been suggested on several occasions. It has never been introduced, because there has not been widespread agreement about the potential benefits. As for its compatibility with growing the tourism industry’s contribution to the economy, that would depend on the extent to which the revenues were spent on measures to achieve that end and whether the introduction of the tax would deter visitors.
That is a helpful answer. I am sure that the minister will recognise that many city centre hotels, including family-owned small businesses in my constituency, are still struggling to cope with the doubling of their business rates in the absence of any transitional relief. Hotels in Aberdeen city centre are now faced with separate proposals for tax increment financing, a bed tax and a business improvement district—those are all being discussed by the local authority or among local businesses, although no firm proposals have yet been produced. Does he therefore recognise that there is a limit to which the margins of those businesses can be squeezed at a time when we are still recovering from economic recession?
The member eloquently tells us exactly why opinion has been divided to date. In moving forward, there is every case for continued cohesion and dialogue among all the parties to try to optimise our tourism system, in Aberdeen and elsewhere in Scotland.
The minister wrote to the Economy, Energy and Tourism Committee stating that he was against a bed tax. Does he stand by that?
Yes, I do. We have considered the measure and we do not think that it would be sensible at this point in time.
Public Transport (Extreme Weather Conditions)
The Scottish Government continues to work with key bodies throughout the country, including in Clydesdale, to ensure that disruption is minimised and that critical services are maintained during the current period of exceptionally severe winter weather.
The minister might be aware that, for the second winter in a row, train services have been virtually withdrawn from my constituency, leaving vulnerable people in an isolated position. Will he agree to take up that concern with ScotRail and Network Rail and look at what can be done to ensure that train services are maintained during periods of severe weather? Will he agree to meet me to discuss the potential for rail improvements in Clydesdale more generally?
Of course I am happy to meet the member to discuss the issues. It is worth saying that a great deal of work is going on. In fact, some very innovative work is going on in relation to reheating rolling stock to get rid of accumulated snow and ice. Some of the things that ScotRail is doing at present might become the way in which things are done in many other countries as well. We should recognise that, as the debate earlier today showed, there was an exceptional situation, and as I mentioned, the very cold weather had a profound impact on the rail network. However, I am happy to meet the member to discuss those matters further.
Non-domestic Rates
My officials and I regularly have discussions and correspond with business organisations on a range of topics, including non-domestic rates.
As the minister will know from those discussions, one of the principal concerns in Ayrshire, as elsewhere, is about the complicated nature of the appeals process and the limited amount of time that companies are given in which to mount appeals against their rates bills. Can he give an assurance that, when he brings forward plans for the reform of business rates, they will reflect those concerns, and that a more streamlined system that allows companies a longer timescale for appeals will be put in place to address, in part, the many concerns in the Ayr constituency?
We are already committed to keeping the valuation appeal system under review and we are considering proposals from the Scottish Chambers of Commerce. Our aim is to ensure that the appeals system is as streamlined as possible in time for the next revaluation in 2015. It is worth pointing out that, typically, revaluation appeals in Scotland are resolved far more quickly than under the valuation appeal system in England. That is very much to the ratepayer’s advantage. Moreover, in England, in certain circumstances, a valuation appeal can result in an increased rateable value for the business property and therefore an increased bill. In Scotland, that is not the case, and the rateable value cannot rise as a result of an appeal.
Change Fund
The change fund will be used as bridging finance to lever improvement across the entirety of spend on older people in health and social care. It is an opportunity to make better use of the total resources that are available across health and social care, recognising the pressures on older people’s services across Scotland.
I thank the cabinet secretary for that comprehensive answer. I am particularly concerned about the extent to which the monitoring will take account of the needs of carers and those for whom they care in the use of the funds. Following the commitments that the Minister for Public Health and Sport made in the chamber on 2 December, how will the cabinet secretary ensure in practice that the plans for the change fund involve carers and local support services and not just the professionals in the health boards?
Mr O’Donnell raises an important point. At the heart of the issue is the assessment of the outcomes that are delivered as a consequence of the change fund. I want to make my next point absolutely clear, and I am pretty certain that Mr O’Donnell will have sympathy with it. The fund exists to ensure that we deliver better outcomes by developing and delivering services in a way that suits individuals better than the current service provision, and ideally that those services deliver greater impact with the resources that are available. I assure Mr O’Donnell that that is the focus of the activity.
Inter-island Ferry Services
John Swinney travelled to Orkney on 14 June and Shetland on 27 September to discuss ferries issues with the islands councils. The inter-island ferry services for which Orkney Islands Council and Shetland Islands Council are responsible were covered in those discussions.
The minister will be well aware of the importance of the inter-island ferry services, which are vital to business, job creation and tourism. He will also be aware that, in October, Western Isles Council was on the verge of scrapping its commercial ferries scheme, which has invested £125,000 in the area over the past four years. Does the minister share my regret at the uncertainty that is hanging over the scheme, whose demise would be a serious blow to the business community? Will Mr Brown agree to include inter-island ferry services in the wider road equivalent tariff pilot initiative?
The member’s question about extension of the road equivalent tariff has been asked before and answered. There is no prospect of the pilot programme being extended at this time.
The minister will be aware that the freight facilities grant has made a huge difference to bringing timber from Kintyre to ports in Ayrshire, namely Ayr and Troon. Will moneys be available for the continuation of the scheme?
I am not aware of timber travelling on any ferries, but the minister may proceed.
We have supported such initiatives in the past, through the freight facilities grant. We have never been able to draw down all of those moneys for suitable projects, but the Cabinet Secretary for Finance and Sustainable Growth assures me that discussions on the issue can take place with John Scott.
Local Government Settlement 2011-12 (South Lanarkshire)
Scottish Government officials have regular discussions with local authorities in relation to the local government settlement. The draft settlement was published last week and is currently out for consultation. We will take care to consider any submissions from South Lanarkshire Council.
The cabinet secretary has delivered a funding package for councils that will help them to protect families, communities and front-line services from the worst impact of the Westminster cuts. However, I am concerned that, some time before the cabinet secretary announced that package, South Lanarkshire Council published a long list of potential savings, which focused primarily on cutting services rather than finding efficiencies in the way in which the council conducts its business. How will the Scottish Government work with COSLA to encourage South Lanarkshire Council and other local authorities to look beyond knee-jerk cuts to services and instead to work with one another to find better and smarter ways of working that deliver maximum value for the public purse?
The challenge for all public sector leaders in the period ahead is to identify ways in which we can make the resources that we have at our disposal, the total volume of which will be reduced, make a greater impact, to satisfy the demand for public services that, quite understandably, emerges from our communities. We engage constructively and on a regular basis with COSLA’s leadership in debate about how we can make resources have a greater impact. I know that South Lanarkshire Council takes an active part in COSLA’s proceedings in that respect. I assure the member that the Government is determined to ensure that we find efficiencies in the public sector to guarantee that we make the maximum impact with public resources.
In the cabinet secretary’s discussions with COSLA or with any individual council, have compulsory redundancies or negotiated reductions in staff pay been considered?
Following my budget statement in November, I gave the commitment that I would engage in dialogue with the trade unions and with COSLA on an approach to delivering a policy of no compulsory redundancies throughout the public sector, subject to the delivery of changes in working practices and flexibilities in exchange for the assurance of no compulsory redundancies. Those discussions have commenced and all parties have participated constructively in them. I will advise the Parliament when those discussions have taken their course.
Will the cabinet secretary clarify whether teachers’ pay and conditions and the McCrone settlement are on the table in the discussions? What is COSLA’s position on that?
From the publication of the Government’s proposed deal to local government and the issues that councils have raised in the process, I am sure that Mr O’Donnell is familiar with the fact that teachers’ terms and conditions and the McCrone agreement will be the subject of an independent review. Work is being prepared jointly between the Government and COSLA, which are working with teaching trade unions, to establish that approach.
I remind members that supplementary questions should have some tie-in to the original question that was answered. We are getting a little away from that.
Ministerial Cars (Savings)
Our priority is to ensure that the Government car service is delivered in the most efficient and cost-effective manner that offers the best deal to the taxpayer. We have recently reduced the ministerial car fleet further from 24 to 22 vehicles. We will continue to work to consider all aspects of the Government car service’s operation, to ensure efficiency.
Does the cabinet secretary not think that, with wage freezes, with teachers and nurses being thrown on to the dole and with vital services for old people and children being cut, the sight of ministers swanning around in chauffeur-driven limousines is somewhat reminiscent of Marie Antoinette?
I am sure that Lord Foulkes was thinking of all that when his bahookie was in a ministerial car in the old days.
Try answering the question.
I am just coming to the answer, Lord Foulkes, which I will give with all seriousness.
No.
Order. You have asked your question; an answer is coming.
I use my time to work on papers and to engage in phone calls, many of which I could not make on public transport, because of the issues that are discussed.
Questions 14 and 15 have been withdrawn.
Severe Weather (Public Agencies)
Key responders have worked and are working hard to deal with the exceptionally severe conditions, which have tested contingency plans. We are determined to ensure that lessons will be identified and learned.
I appreciate that this ground was gone over in some detail in the debate this morning. Does the minister understand the frustration of my constituents in Fife, Perth and Stirling about the cancellation of rail services last week, even some days after the thaw had set in? Many people rely on those rail services to get to their places of employment. Will the minister be holding urgent talks with First ScotRail and Network Rail to see what can be done to minimise disruption in the event of more severe weather coming this winter?
I understand the frustration that has been caused to those who have been affected by the recent severe weather—rail passengers and others. We indeed considered the matter in substantial detail earlier, when I explained that very cold temperatures had caused problems with the rolling stock and the points, which meant that there was less rolling stock to provide the services that are normally provided.
Can the minister tell us whether he has it in mind to make a ministerial statement in due course, addressing the resilience of the public agencies and their resources in the round, or whether we can instead expect progress be more piecemeal and reported to the Parliament in various ways?
We agreed today to provide information directly to members through Transport Scotland and across the gamut of its activities.
During the recent spell of extremely cold weather, Prestwick airport experienced serious difficulties in obtaining supplies of aviation fuel. Given the fact that Prestwick airport alone among Scotland’s major airports managed to continue to operate during the adverse weather, and given the airport’s strategic importance not only to the Ayrshire economy but to that of Scotland as a whole, can the minister outline what contingency plans are being put in place to ensure that adequate supplies of aviation fuel are available in the event of further extreme weather conditions?
We fully appreciate the significance of Prestwick airport and the services that it provides. We outlined earlier today some of the measures that have been taken on the relaxation and derogation of obligations in relation to fuel tanker drivers to ensure further supply. There have been questions about the road network and tankers getting out. We have worked very closely with the Grangemouth providers of the fuels.
Transport Scotland (Consultations)
Transport Scotland views public consultation as an integral part of the delivery of its projects. During scheme preparation, public exhibitions, meetings with interest groups and face-to-face meetings with affected landowners are held. During construction, contractors are under a contractual obligation to consult those who are affected by the works. Their performance is monitored by Transport Scotland.
Transport Scotland is proposing an alternative route for the Borders railway at the A7 by Falahill, in my constituency. The proposal is outwith the approved route according to the Waverley Railway (Scotland) Act 2006. In the face of strong opposition from me, Transport Scotland refused to have a pre-planning consultation with communities, which is against what I believed was the spirit of the planning legislation that has been passed by this Parliament. Communities now feel that their genuine concerns about the addition of two roundabouts on the A7 at that stretch of road are being completely ignored. Will the minister intervene to ensure that Transport Scotland changes its approach on that vital issue in my constituency?
As Jeremy Purvis knows, Transport Scotland project teams met all residents of Falahill on a number of occasions to discuss the proposals. A requirements capture exercise was also completed to ensure that feedback and requirements were incorporated into the final submission. Final details were sent to all residents prior to the formal application being submitted on 4 November 2010.
Extreme Weather (Fife Economy)
A number of households and businesses in Fife and throughout Scotland have been affected by the recent adverse weather conditions. Although it is difficult to offer a definitive assessment of the effects on the economy at this stage, it is anticipated that many of the impacts will be temporary, with the economy making up for any losses when the weather improves.
Will the cabinet secretary say a little bit more about what steps will be taken in future to improve co-ordination and mitigate any adverse effects as far as possible?
I accept, as I accepted in the debate this morning, that there will be disruption to networks as a consequence of adverse weather. We try to mitigate and minimise those impacts, but we cannot remove them entirely.
Green Energy Technology
Our low-carbon economic strategy shows how the investments that we are making in green energy technologies will propel Scotland’s future economic growth, jobs and prosperity.
Is the minister aware of the latest U-turn by the Liberal Democrats at Westminster, who are now backing public subsidies for the nuclear power industry? Does he have any concerns that that will threaten Scotland’s renewables potential?
There is a pattern there, I am afraid. Another Lib Dem U-turn on the public subsidy for nuclear is pretty brazen, I have to say. The Liberal Democrats have a credibility issue after the VAT hike, student fees and, now, nuclear subsidies.
Convention of Scottish Local Authorities (Meetings)
Scottish Government officials meet representatives of COSLA regularly, and have done so several times in the last few weeks. A range of issues were discussed at those meetings. Ministers regularly meet COSLA representatives into the bargain.
During those regular discussions and meetings, local government made a request of the Scottish Government on teachers’ pay and conditions. The answer from the Scottish Government will not appear until January, but the councils have to sign up to their budgets in December. Is that fair on the local authorities and has the cabinet secretary given them any signals so that they can make proper budget decisions based on appropriate information?
The detail that has been shared with local government about the contents of the agreement between the Scottish Government and the political leadership of COSLA strikes me as having sufficient information to enable local authorities to make the necessary judgments about the proposals that the Government has made.
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