Meeting of the Parliament

Meeting date: Thursday, November 17, 2011

Official Report 1135KB pdf

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Scottish Executive Question Time

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General Questions

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Road Equivalent Tariff (Orkney)

1. To ask the Scottish Executive what assessment it has made of the impact of introducing a road equivalent tariff on ferry fares for routes to, from and within Orkney. (S4O-00358)

The draft road equivalent tariff evaluation report, which was published in March this year, shows illustrative RET fares for all Scottish Government-subsidised routes, including Orkney routes, and the likely impact on passenger numbers. It also shows that, on balance, most local authority-run ferry services have fare levels that appear to be set below or at around the level of an RET fare.

The minister will be aware of the anger and, indeed, disbelief among my constituents at the Government’s decision to extend, seemingly indefinitely, the so-called pilot road equivalent tariff scheme on ferry routes that serve the Western Isles. The decision to extend the cheap ferry fares scheme to other islands on the west coast is also one that people in Orkney and Shetland are struggling to understand.

Will the minister explain to my constituents the basis for those decisions? Will he clarify why, to date, there has been no opportunity for robust public scrutiny of the scheme or debate about how the funding that is available might best be used to provide benefits to all the communities that are dependent on lifeline ferry services? Given previous ministerial promises that this record-breaking pilot was the first step in rolling out RET to other routes, including those across the Pentland Firth, will he update Parliament on what progress has been made in meeting that commitment?

The decisions were based on our manifesto commitment to have a pilot in our first term in government and to roll it out to other areas in the Clyde and Hebrides in our second. There was no manifesto commitment to roll it out in the northern isles.

However, we provide £38 million of subsidy for ferry services to the northern isles. The implementation of RET would result in higher fares for many northern isles trips. Islanders currently receive a discount of around 30 per cent; the same discount is available to families and friends on those crossings.

If Liam McArthur wants more to be done in this area, it would be useful for him to address fuel prices and the cuts by the Westminster Government, which are reasons why it is becoming more and more expensive to subsidise the northern isles services. Despite that expense, we will continue to support them in the ways that I have described.

Is the minister aware of the comments of the leader of Orkney Islands Council, Stephen Hagan, who fears that Orkney is losing out on tourism because of the lack of RET there? The people on Mull, Islay, Jura and Colonsay also feel that they are losing out.

I am aware of the council leader’s comments. If the member refers to the study that I mentioned, he will see the extent to which the pilot has resulted in increased traffic to, and increased tourist numbers on, the islands that are benefiting from the scheme. There is very little evidence of any displacement from other islands.

In relation to the other islands that the member mentioned, there is the commitment that I referred to earlier, on which we will make an announcement in due course.

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Gritting (North Lanarkshire Council)

2. To ask the Scottish Government what discussions it has had with North Lanarkshire Council regarding its winter gritting programme. (S4O-00359)

The Scottish Government is responsible for trunk roads and motorways. Individual local authorities are responsible for setting policies that are relevant to local conditions on their own road network. Transport Scotland and its operating companies have been in contact with local authorities throughout the summer and are co-ordinating the management of the Scottish salt cell to monitor salt supplies.

The minister will be aware that North Lanarkshire Council issued a press release in which it threatened to withdraw gritting services in areas where crews had been subjected to attacks and highlighted the Pather area of Wishaw, which received national coverage on television and in newspapers.

Would it surprise the minister to know that, when it was approached, North Lanarkshire Council was unable to confirm how many incidents had taken place and that Strathclyde Police has confirmed that it has had no discussions with the council about how to tackle what was alleged to have been a serious problem? Furthermore, Strathclyde Police stated that it was

“rather surprising to hear North Lanarkshire Council’s announcement”.

Clearly, such behaviour is abhorrent. The acts are also criminal, and I am sure that the council and the police will take action as appropriate. As the member suggests, it is somewhat surprising that—from what has been said—discussion appears not to have taken place.

I call on everyone to acknowledge the crucial role that gritters, and others who clear the roads, play during severe weather. I encourage North Lanarkshire Council and Strathclyde Police to work together to eliminate any and all criminal activities and to respect and support public sector workers in carrying out their essential tasks. Of course, all local authorities have a statutory duty to keep the roads clear, as far as is practicable.

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Combined Heat and Power

3. To ask the Scottish Government what support it provides for the development of local combined heat and power biomass energy plants. (S4O-00360)

The Scottish Government has a policy to support the deployment of biomass in heat-only or combined heat and power plants, particularly off-gas grid, to a scale that maximises heat use and local supply.

Developers of a biomass CHP at Charlesfield, St Boswells, have concerns about the availability of investor capital to fund the infrastructure to establish a district heating network. Given the instability of the United Kingdom policy on solar energy, investors in biomass are seeking reassurance and long-term support for the sector. Will the minister give such reassurance from a Scottish Government perspective? Will he be willing to meet me to discuss funding the associated infrastructure costs?

I would be happy to meet the member to discuss those matters. District heating projects are extremely important to the Scottish Government, which is why we have invested £1.9 million towards them. We acknowledge that they play a very important part—as, indeed, does biomass—in heat-only or CHP schemes off grid. In 2010, more than 90 per cent of renewable heat in Scotland came from biomass. I am therefore very happy to work with the member on all of these matters.

I welcome the Scottish Government’s proposals to remove the subsidy from large-scale, electricity-only biomass. However, will the minister clarify the Scottish Government’s proposals for large-scale electricity biomass where a small, but not insubstantial, amount of the heat is also used?

As Malcolm Chisholm knows, our policy position on biomass is clear, and is covered in the draft electricity generation policy statement, in the national planning framework 2 and in planning guidance. We believe that large-scale biomass plants that produce only electricity are not the best use of biomass, which is a valuable product.

We acknowledge that biomass has a place, especially in local community projects that use a local supply. Such projects often provide additional income to tree-growers when no other use of the material would be possible. We support local use, but we do not believe that large-scale use for electricity only is the most effective use of biomass. As Malcolm Chisholm knows, that has been our policy for a considerable time.

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Tenancy Deposit Protection Scheme

4. To ask the Scottish Government what progress is being made in bringing forward an approved tenancy deposit protection scheme and when the details of such a scheme will be announced. (S4O-00361)

The Scottish Government is evaluating three proposals for the operation of national tenancy deposit schemes. Prior to final approval, public consultation will be conducted on the terms of all schemes meeting the Tenancy Deposit Schemes (Scotland) Regulations 2011. Once a scheme is approved by ministers, full details of that scheme and its date of implementation will be announced.

The tenancy deposit protection scheme is welcome; it will offer security to private renters in my constituency and in many other areas. The cabinet secretary will know that, once the scheme is introduced, few challenges will arise in promoting it to recipients of housing benefit and to students. However, can he reassure me that the scheme will be promoted to harder-to-reach groups, such as groups of young renters sharing flats in city centres? Such people tend not to access services, and it can be hard to reach them with information.

I can assure Mr Biagi that we will do everything possible to promote the scheme, once it is introduced, to all the target groups. The purpose of introducing it is to ensure that the most vulnerable people are fully protected.

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Public-private Partnerships (Scottish Trades Union Congress Protocol)

5. To ask the Scottish Government whether the protocol agreed by the Scottish Executive and the STUC in December 2002 concerning employment issues in public-private partnerships is still in force. (S4O-00362)

“Public Private Partnerships in Scotland—Protocol and Guidance Concerning Employment Issues”, issued in November 2002, remains applicable.

I welcome that reply. The cabinet secretary will know that section 9.5 of the protocol says:

“The service provider will be required to offer new recruits to a PPP workforce access to the same pension arrangements as transferred employees.”

The cabinet secretary may not be aware that the City of Edinburgh Council’s proposed privatisation of a large number of council services does not conform with section 9.5. I hope that the proposal will, in any case, be rejected but, in the meantime, will he write to the council to remind it that the protocol—and that section in particular—is still in force?

I am happy to confirm that the protocol is in place.

The local authority will have to have regard to the section 52 guidance, which is essentially statutory guidance to local authorities on contracting. The guidance is not binding on the local authority but the local authority must have regard to the contents of that provision.

At this stage I am unable to confirm to Malcolm Chisholm whether section 52 conveys any obligation in respect of the issue of pension entitlement that he has raised. I am happy to write to the member with clarity on that point. If there is further detail that he wishes to explore with the Government, I would be happy to meet him to discuss it.

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Tourism (Olympic Games)

6. To ask the Scottish Government how it plans to attract tourists to Scotland during the 2012 Olympic games. (S4O-00363)

The Government is working closely with VisitScotland, the enterprise companies, VisitBritain and the London Organising Committee of the Olympic and Paralympic Games to ensure that we maximise the benefits that Scotland can realise from the significant tourism opportunities presented by the games.

In addition to that and its highly successful core campaigns, VisitScotland will undertake targeted promotional activity around the games to highlight Scotland’s world-class tourism credentials. In particular, through our year of creative Scotland, we will showcase our culture and creativity.

Does the minister agree that there is a real opportunity to attract to Scotland residents of the south of England who wish to get away from the hustle and bustle of the games?

You can never have too many Londoners visiting Scotland. We are happy to welcome them if they wish to take refuge from the hustle and bustle of the great metropolis and come and enjoy the manifold attractions that Scottish hospitality has to offer.

The minister will be aware that one of the threats to Scottish tourism before and during the Olympic games is the increase in air passenger duty. What discussions has the minister had with the United Kingdom Treasury about keeping to a minimum the tax, which so disproportionably affects regional Scottish airports such as Prestwick?

John Scott makes a very good point indeed. We are extremely concerned about the impact of APD. I know that many airlines have highlighted the issue; indeed I received a message from easyJet this morning about it.

I am delighted to make common cause with Scottish Conservatives and work shoulder to shoulder with them to persuade the Chancellor of the Exchequer of the case for taking effective action, as many other countries are doing, to provide a better tax environment to attract tourists and visitors. I am delighted that the Scottish Conservatives recognise the need for change in the fiscal approach of the London Treasury.

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British Waterways Scotland (Waterfront Development and Public Safety)

7. To ask the Scottish Government what its strategic management plans are for British Waterways Scotland regarding waterfront development and public safety. (S4O-00364)

British Waterways Scotland works in partnership with local authorities and others to maximise the wider benefits of our canals and to stimulate the regeneration of the canal corridors. Speirs Wharf in Glasgow, Edinburgh Quay and the Falkirk wheel are all examples of such partnerships delivering safe waterside environments providing quality places for people to live, work and play.

What plans are there to encourage further developments along canals such as the Forth and Clyde canal, which runs through my constituency of Glasgow Anniesland, and what community involvement could be encouraged from those who live alongside the canals?

The reopening of the Forth and Clyde canal 10 years ago had, as the member noted, a significant impact on areas in Glasgow close to the canal. The Glasgow canal regeneration partnership has had great success in revitalising the canal and engaging local waterside communities. British Waterways Scotland’s key projects include new social and affordable housing at Maryhill, the regeneration of Maryhill locks and a new cultural quarter by the Forth and Clyde at Speirs Wharf. The master plans for Speirs locks and Maryhill locks were both recognised as being exemplary by the Scottish sustainable communities initiative, reflecting not only the quality of the design and master planning but the successful and well-considered community engagement underpinning them. There are many other developments to which I could refer, but I will write to the member with details of them.

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Unemployment (Older People)

8. To ask the Scottish Government what action it is taking to address unemployment in older people. (S4O-00365)

Tackling unemployment for individuals of all ages is a priority for the Scottish Government. Within the scope of the powers that we have, we are implementing an economic strategy for growth, targeting resources where they are most needed and working to better align all employability and skills services across Scotland.

The cabinet secretary may be aware of the recent announcement by Glasgow City Council, offering cash incentives to companies to employ unemployed people over the age of 50, which is a very good idea. Will he look into that scheme with a view to extending it throughout Scotland?

As I said to Sandra White in my initial reply, the Government seeks to ensure that its employability initiatives are focused on all areas of the labour market. I will certainly consider the Glasgow City Council proposal. The fact that the council can offer such an incentive is an indication of the strength of the local authority funding settlement that the Scottish Government provided, which I think will be welcome throughout the city of Glasgow.

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Motorway Gantry Signage

9. To ask the Scottish Executive what discussions it has had with Transport Scotland regarding motorway gantry signage. (S4O-00366)

Transport Scotland is responsible for motorway gantry signage. Through its Traffic Scotland service, it uses variable message signs to provide advance warning to drivers of emergencies, incidents and road closures. It endeavours to communicate what it knows when it knows it by as many means as possible. When the signs are not required for those purposes, they are used to promote road safety, network operations and related campaigns. The background messages have been developed in consultation with a number of stakeholders, in particular the police authorities.

Will the minister give assurances that the gantry signs will hold time-sensitive information about weather forecasting as we approach the winter?

Yes, and over and above that, on routes such as Edinburgh to Glasgow, there will be real-time information about how long journeys are expected to take, which is a significant enhancement of the service that is provided.

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VAT (House Extensions and Improvements)

10. To ask the Scottish Government what discussions it has had with the United Kingdom Government regarding reducing VAT on house extensions and other improvements. (S4O-00367)

Scottish ministers have written to the UK Government on a number of occasions to make the case for a reduction in the rate of VAT for work on houses. The Cabinet Secretary for Finance, Employment and Sustainable Growth wrote to the Chancellor of the Exchequer on 16 November on that issue.

We will have a brief supplementary from Mr Stewart, and a brief answer, please.

Does the cabinet secretary agree that reducing VAT on alterations, repairs, maintenance and extensions for dwelling-houses would cut down on the amount of black market work that currently goes on, maintain health and safety standards and boost legitimate trade, and could lead to a greater tax take for the Exchequer?

Briefly, cabinet secretary.

I entirely agree with the member. Such a reduction would also create more jobs and improve housing in Scotland. I point out that the chancellor has the power to do most of what has been suggested and could do so on 29 November, because on 10 March 2009 the economic and financial affairs council—ECOFIN—gave him that power in relation to labour charges for repairs and renovations, which is by far the largest element of the cost of repairs and renovations for housing. We call on the chancellor to act now.