SCOTTISH EXECUTIVE
Finance and Sustainable Growth
Good afternoon. The first item of business this afternoon is themed question time. The whole 40 minutes will be given over to questions on finance and sustainable growth. Question 1 has been withdrawn.
“Report on scrutiny of theDraft Budget 2010-11”
To ask the Scottish Executive what its position is on the Finance Committee's "Report on scrutiny of the Draft Budget 2010-11". (S3O-8856)
I outlined the Scottish Government's position in this morning's debate.
I refer Mr Swinney to paragraph 126, in which the committee asked the Scottish Government to provide
I appreciate Mr Fraser's question. There would have been ample opportunity for extensive discourse on the point if he had been in Parliament for this morning's debate—I am not sure whether he is finding it difficult to get out of his bed in the morning to be in for 9.15.
I watched this morning's debate with great interest. As the cabinet secretary knows, during our discussions at the budget strategy working group I have been asking for similar information, which would allow members of other parties to make enlightened decisions about our priorities in the budget process. It is impossible to do that, particularly in relation to capital items, if the detail is not made available. I repeat and underline Mr Fraser's request for early publication of such information.
I can confirm that Mr Kerr was in the building this morning. He and I had a conversation at about 8.15, so I will not suggest that he did not get out of his bed in time for the debate. Perhaps he was still enjoying the memory of Jackie Baillie's performance at the Labour group's party last night.
This is all just nonsense. Outrageous! [Laughter.]
In the spirit of not apportioning blame, I should say that Derek Brownlee started it all this off in this morning's debate.
Senior Public Sector Staff (Pay Cap)
To ask the Scottish Executive whether it plans to cap the financial remuneration of senior public sector staff. (S3O-8926)
Scottish ministers have already frozen their salaries, and that approach will also apply to senior civil servants. The Cabinet has already agreed to extend that approach to the highest-paid people across the public sector who come under the Scottish Government's remit. We will discuss the detailed implementation of that policy, and further announcements will follow shortly, when we publish our pay policy on senior appointments for 2010-11.
The cabinet secretary will be aware of the recently published views of Dr Linda de Caestecker, director of public health at Greater Glasgow and Clyde NHS Board. She has called for highly paid public service staff to accept a 5 per cent pay cut. Will the cabinet secretary give his view on the proposal?
I recognise that there are significant concerns about the level of certain salaries in the public sector. We are going into a period of significant financial constraint in the years ahead, so the point that Dr McKee makes is significant. The Government will assess such suggestions as part of the formulation of its pay policy for 2010-11 and future years.
It is welcome that Dr McKee increasingly supports Liberal Democrat approaches in such matters.
I am not sure that I understand the point that Mr Purvis made about not answering questions. I would be surprised if questions have not been answered, although they may not have been answered in the fashion that he was looking for. I put that on the record to clarify that ministers endeavour to answer questions—certainly the vast volume of them that come from certain quarters of the Parliament—as timeously as possibly.
Will the cabinet secretary answer this question?
The Government is gathering the information that would allow me to give Mr Purvis a definitive answer. When that information is available, I will consider how it may be publicised.
The cabinet secretary may or may not be aware that I have been in correspondence with Mr Mather on a particular salary. Does he agree with me that the Government missed a trick by not cutting the salary of the new chief executive of Scottish Enterprise? The organisation has been cut in half, but the salary seems to be at the same level as it was before. It could have been halved for half the responsibility.
I am aware of Mr Whitton's correspondence with Mr Mather on that point. An assessment was carried out of the appropriate composition of the post of chief executive of Scottish Enterprise in the light of the responsibilities that the individual carries. That assessment was undertaken in order to inform the decision on the salary that would be paid, and the Government accepted the recommendations that came from the process.
British Geological Survey(Gilmerton Core Store)
To ask the Scottish Executive what its position is on the economic and other impacts of the proposed move of the British Geological Survey Gilmerton core store from Gilmerton to Keyworth. (S3O-8907)
We are of the view that the existing facility at Gilmerton is of great value to industry and academia in Scotland. The current proposal would have a significant adverse impact on access for the oil and gas industry and would disadvantage research carried out at Scottish universities due to the significant distance that academics and students would have to travel.
Does the minister share my concern about the inadequacy of the Tribal Group report that the British Geological Survey commissioned, about the consultation process and about the misrepresentation of the locations of those who visit and use the core store? Will he seek a rerun of the consultation, using a proper range of options?
We are very aware of the Tribal report. In particular, we share the view that Brian Adam and others have expressed regarding the consultation process, which failed to consult users of the store properly, especially the oil and gas industry. Many of the organisations that use the store have since written to the BGS expressing their concerns. I, too, have written to it and will press for a rerun of the consultation, especially as I now have correspondence that acknowledges that many users will be inconvenienced by the closure of the Gilmerton core store and that the new location in the heart of rural England is hard to reach. We want the BGS to be much more aligned with the users and much more altruistic towards them.
RAF West Freugh (Satellite Ground Station)
To ask the Scottish Government what the economic implications would be of the closure of West Freugh satellite ground station. (S3O-8929)
I understand that QinetiQ is reviewing a wide range of options for the satellite ground station at West Freugh, including sale or closure. The station currently employs one QinetiQ employee and 14 subcontractors. The Ministry of Defence range at the West Freugh site is not included in the QinetiQ review. Although the implications for the local economy if the satellite station should close are limited, any potential loss of jobs is always a concern. Should the station close, the Scottish Government will work with Scottish Enterprise and other public agencies to minimise the impact on the area.
Installations such as that at West Freugh, of which there are not many, are ideally suited for rural areas and provide good-quality jobs in those areas. The loss of that high-tech establishment would be a severe and unnecessary blow to Wigtownshire. Will the minister undertake to contact all the United Kingdom and European state agencies that are potential or existing customers of West Freugh to try to ensure its future and sustained viability?
Yes, indeed. I am told that the site is the only UK national satellite station that is capable of capturing particular types of data, and that it has a unique position in the UK in providing high-resolution satellite imagery. I will write to QinetiQ in the first instance to seek clarification on the current review and I will offer any assistance that the Scottish Government and its agencies can provide to promote West Freugh to the European Space Agency, the British National Space Centre and the UK Natural Environment Research Council.
Network Rail (Payments for Rail Projects)
To ask the Scottish Executive, further to the answer to question S3W-29023 by Stewart Stevenson on 3 December 2009, what payments are to be made to Network Rail for the Airdrie to Bathgate, Glasgow Airport rail link main line and Glasgow-Barrhead-Kilmarnock rail projects, broken down by instalments for each project. (S3O-8878)
The question is one of a number of questions that would ordinarily have been answered by Stewart Stevenson, but the Minister for Transport, Infrastructure and Climate Change is in Copenhagen, so I will answer them on his behalf.
The written answer to the question that I mentioned referred without a hint of irony to the "GARL mainline" project, although the irony is that the branch link to the airport is proposed for cancellation. By what authority has the Scottish Government cancelled current-year expenditure on the GARL branch line to Glasgow airport, given that the project was approved by an act of Parliament and that the current spend was approved last year by the Parliament?
The Government has taken decisions in the context of the budget that we have available, which gives a capability to spend to certain maximums under particular budget headings. If any change is to be made, it can be made either at the autumn budget revisions, which have now been approved by Parliament, or at the spring budget revisions, which have yet to be considered by Parliament.
Textiles Industry (Scottish Borders)
To ask the Scottish Executive what it is doing to support the textiles industry in Hawick and the Scottish Borders. (S3O-8854)
The Government recognises the importance of the textiles industry to the Scottish Borders and offers a wide range of assistance via Scottish Enterprise, Scottish Development International, local authorities, the Scottish Further and Higher Education Funding Council and Skills Development Scotland. The Scottish manufacturing advisory service has had 108 enquiries from the textiles sector since its launch in November 2005. The invest in an apprentice scheme, which is part of our ScotAction programme, offers a £2,000 incentive for employers in textiles to take on a new 16 to 19-year-old apprentice. Scottish Enterprise and its partner agencies, including the local authority, are actively engaged in supporting businesses in Hawick and the Scottish Borders, including textiles businesses.
Following the minister's meetings with me in the Scottish Borders and the cabinet secretary's visits to Hawick, they will know what a precarious position the textiles sector is in. Since the cabinet secretary's most recent visit to the town, the new Hawick development committee, of which I am a member, has met regularly to help to develop plans to regenerate the town and, in particular, to consider the future of the textiles industry. However, there is growing frustration that the Scottish Government is not doing more to protect and promote that important industry. I therefore ask the minister or the cabinet secretary whether they are prepared to meet me and other representatives from the Hawick development committee to discuss what additional support might be made available.
I will gladly meet John Lamont and others involved in that new initiative. However, I ask him to consider my earlier response, in which I spoke about the moneys that are being made available to the textiles sector. When we have that meeting, I hope that we can also focus on the positive signs, such as the new secure future for Todd and Duncan following its acquisition by the Chinese company Ningxia Zhongyin Cashmere Company Ltd—some £6.1 million was transferred as a result; the phenomenon of Peter Scott & Company Ltd, whose involvement with the Scottish manufacturing advisory service has dramatically increased on-time delivery; and the £23 million investment in the new production line at Ahlstrom Chirnside Ltd. Other positive signs include Lochaven International Ltd, which has reinvented itself in the textiles sector. I will come to that meeting with a positive disposition and I look forward to engaging with the member.
The Minister for Enterprise, Energy and Tourism knows that there has been no specific additional support for the textiles sector during the recession. I was pleased when he met representatives of the Scottish textiles forum and the Scottish Cashmere Club earlier this year. They made a specific request for consideration of a Welsh scheme—ProAct—for people who are faced with the difficult choice between moving to short-term, part-time working or continuing in employment. However, that request was simply ignored by the Government. Will the Government reconsider its approach and take the lead like the Welsh Assembly Government, which is much more proactive?
Jeremy Purvis fails to recognise what I said in my previous answer, as well as what we have done through ScotAction. It is deeply ironic that the member was advocating not so many months ago a further £800 million cut in Scotland's budget but, still looking for more spending with no compensating journal entries for where the money would come from.
Front-line Services(Health and Local Government)
To ask the Scottish Executive what discussions the Cabinet Secretary for Finance and Sustainable Growth has had with national health service boards and local authorities about protecting front-line services. (S3O-8864)
I have frequent discussions with my Cabinet colleagues about how best to protect front-line services from the cuts imposed on our budget by the Chancellor of the Exchequer. The draft budget that I have published for 2010-11 is aimed at protecting those services within the significant financial constraints that we face.
I thank the cabinet secretary for that response and simply note that his budget has risen by £943 million this year.
There will always be discussions within individual health boards and between health boards and other public bodies about how to ensure that resources are utilised to deliver effective and efficient public services to members of the public. In that respect, I am certain that NHS Greater Glasgow and Clyde will be in a position to explain to Jackie Baillie exactly how it proposes to do that through the reforms to which she referred.
The cabinet secretary will be aware of the current NHS Highland review of services. Recently, I had the opportunity to visit the Highland rheumatology unit in Dingwall, which cares for patients from across the north of Scotland, and learned that it is included in the review. Some of the savings that have been suggested, such as through closing the unit at weekends, concern me because they would impact severely on patients. Will the cabinet secretary ensure that health boards do not throw the baby out with the bathwater and that the effect on services of savings is not disproportionate to the savings that are made?
The rheumatology unit is part of a review of all in-patient services that is under way in NHS Highland. The review is in keeping with national shifting the balance of care policies, and with the need to provide more care at locations closer to home. A few options are being considered for the rheumatology unit, including five-day service and a reduction in the number of beds. Those questions have been discussed with patients and clinical staff. I am aware that NHS Highland is looking at local in-patient services. However, the board has confirmed that no final decisions on the rheumatology service have been made, and it has assured the Deputy First Minister that the views of patients and local people will be taken fully into account in any discussions.
The four major parties that are represented in the Parliament are now seriously concerned about possible cuts to the Highland rheumatology unit. The unit provides an excellent service and is facing serious cuts. Care nearer to home would not be the care that is co-ordinated at the unit. Does the cabinet secretary think that the proposed cuts are acceptable, even in these financially challenging times?
I understand that the proposal is being considered in the context of the national shifting the balance of care approach, which is designed to ensure that public services are deployed in the fashion that is most appropriate for individuals in the locality concerned. In certain circumstances, that will involve a change to the design and delivery of services.
Public Information Notices (Advertising)
To ask the Scottish Executive how it considers local government can best advertise public information notices, in light of the pilot testing of the public information notices portal by the Improvement Service. (S3O-8952)
I expect the pilot testing of the public information notices portal to determine whether it is a cost-effective means of providing information to the public as part of each local authority's wider strategy to provide information to its community. We will consult shortly on changes to legislation to support implementation of such an arrangement.
Given that 40 per cent of Scottish people have no access to broadband and that people are six times more likely to consult a local paper to find a public notice, does the cabinet secretary agree that any proposal to withdraw the duty on local authorities to place public notices in newspapers would be unfair, restrictive, counterproductive, socially divisive and, in short, absurd?
The issues that the member raises will be considered as part of the consultation on the legislation that would underpin such an approach. The pilots that are being conducted on the public information notices portal will give us the detail to answer the points that Mr Harper makes and enable us to determine whether there are more effective ways of providing and presenting public information to members of the public and whether those approaches meet local authorities' aspirations properly to supply members of the public with relevant local information.
Alternative Business Models (City of Edinburgh Council)
To ask the Scottish Executive what assessment it has made of the City of Edinburgh Council's proposals on alternative business models. (S3O-8870)
I am aware that the City of Edinburgh Council is considering a range of options in the context of alternative business models. It is wholly a matter for the council, in the first instance, to develop those options and to decide how it wishes to proceed.
Does the cabinet secretary not feel slightly uneasy that the Scottish National Party coalition administration in Edinburgh is the vanguard administration in Scotland for privatising council services and for refusing to consider alternative in-house ways of making savings? Given the debacle of Edinburgh's recent retendering of adult social care services, will he advise his SNP colleagues against a knee-jerk reaction to financial difficulties, gently reminding them that the SNP Scottish Government has been hostile to privatisation in many service areas?
I am not sure that Malcolm Chisholm properly apportions the accolade for being in the vanguard of that particular reform, considering the reforms that have been undertaken by Glasgow City Council, which, last time I looked, was not controlled by the Scottish National Party—although I am sure it will be only a matter of time.
Rail Freight (Longannet)
To ask the Scottish Executive what discussions it has had with DB Schenker and Network Rail regarding freight traffic carried by rail to Longannet power station. (S3O-8901)
Representatives of Transport Scotland, which acts on behalf of Scottish ministers, have met representatives of DB Schenker and Network Rail on two occasions this year to discuss noise and vibration complaints that have been received since the reopening of the Stirling–Alloa–Kincardine railway line.
The cabinet secretary will be aware that there have been nearly 70 complaints now. There have been 50 formal claims, 38 of which involve legal representation. Will he assure me that there will be adequate provision in his budget for compensation claims to be met by the Government, rather than by Clackmannanshire Council, should the claims be successful?
As I am sure Dr Simpson will be aware, the operation or regulation of any aspects of the timing of services—it is the freight services that cause concern, as I understand it—is undertaken by the Office of Rail Regulation. Neither the Scottish Government nor Network Rail has legal powers to deny access to the railway by any railway company that meets the required standards.
What assistance can the Scottish Government offer to Banks Developments, which was recently granted planning permission for opencast mining in the south of West Lothian, to ensure that the coal is transported to Longannet power station by rail, rather than on numerous heavy-tonnage lorries through places such as Whitburn and Longridge in my constituency?
I normally have a fairly encyclopaedic knowledge of Scotland's geography, but my encyclopaedic knowledge of alternative routes on the rail network in the West Lothian area has momentarily deserted me. [Interruption.] I hear Jackie Baillie from a sedentary position asking, "Was it ever there?" That is perhaps as insulting to me as my remarks were to her about her party antics last night.
Local Authority Funding
To ask the Scottish Executive whether it will carry out a further, more fundamental review of the distribution of funding allocated to local authorities, as recommended in the final report of the review carried out by it and the Convention of Scottish Local Authorities. (S3O-8858)
I have accepted that a more fundamental review of distribution would be appropriate. The time to do that is when the medium to long-term financial situation, including national and local taxation systems, is clearer and single outcome agreements have fully bedded in.
As the cabinet secretary will be aware, both Aberdeen City Council and Aberdeenshire Council receive a comparatively low share of funding per head of population from the Scottish Government. Given Aberdeen City Council's previous and current difficulties, will he consider a further review as a matter of priority? Furthermore, will he undertake to have such a review carried out independently rather than by COSLA, which is perceived to have an in-built geographical bias?
First, I advise Dr Milne that, as I said in my first answer, further consideration will be given to such matters.
Barclays Partner Finance (Relocation)
To ask the Scottish Government whether it has been provided with details of the strategic review that has led to Barclaycard's decision to relocate its Barclays Partner Finance operations to Cardiff with a loss of 350 jobs at its Glasgow headquarters. (S3O-8935)
I have spoken to Neil Radley, who is the head of international consumer lending at Barclaycard, to discuss the issue. I have indicated that the Government is fully committed to exploring all available options to enable Barclaycard to remain in Pollokshields.
I thank the cabinet secretary for that detailed reply. Is he aware that BPF is a profitable business, with the lowest operating costs in the Barclay group, whereas First Plus, ironically, had to shed 300 jobs last year after criticism of its irresponsible business practices? I know that the cabinet secretary has met BPF's management, but will he meet employees to discuss their concerns and to ensure that the strategic review report—which is currently secret—enters the public domain?
Whether that report is published is really a question for the company, as it was not initiated by the Government. However, I can assure Sandra White that the Government is working closely with the company to try to determine whether there are ways in which we can avoid the job losses.
Pre-budget Report
To ask the Scottish Government what impact the United Kingdom pre-budget report will have on the Scottish Government budget for 2010-11. (S3O-8914)
Like me, Linda Fabiani has had the pleasure of being involved in yesterday's and this morning's debates, and I am sure that she has had more than enough detail from me on the content of the pre-budget report and its impact on the Scottish Government's budget for 2010-11.
That was short, sharp and sweet.
It is clear that a range of difficult decisions are having to be taken in the current financial environment. It is interesting to hear that the CBI takes a different position from the Labour Government on that important issue, which just demonstrates that an opportunity exists for broad debate on such matters around the country.
CO2 Emissions (Hunterston)
To ask the Scottish Executive what impact the annual emission of a minimum of 6.88 million tonnes of CO2 from the proposed coal-fired power station at Hunterston over 10 to 15 years would have on Scotland's climate change targets. (S3O-8938)
We do not accept that emissions on such a scale would be emitted from any future new coal power station in Scotland for such a time period. The thermal policy statement that the Scottish Government announced on 9 November 2009 confirmed that any new coal-fired station would need to demonstrate carbon capture and storage on at least 300MW—net—of its capacity from day one. The statement also made it clear that any such coal station that was built after 9 November would be expected to retrofit 100 per cent CCS to its output by no later than 2025.
I will not enter into a debate on the statistics, but the figures that I cited were taken from the estimates that the developer provided, which expressly excluded a 25 per cent reduction from day one. Even under the minister's policy, that would not be achieved.
We are pressing to make that happen in an existing station. Longannet has the prime claim on the UK carbon capture and storage demonstration proposition. At present, no application has been made for a power station at Hunterston. In addition, the member should recognise that any application would have to meet normal environmental and pollution levels as monitored by the Scottish Environment Protection Agency. The advice of SEPA would be important, and SEPA would base that on the proposition that we are backing.
I am glad that Ross Finnie said
The member can take it as read that our policy, combined with the work of SEPA and the normal mentality of investment bankers and funders who invest in such projects, means that what he describes would not happen in Scotland.
The minister will know that many of the plans around carbon capture and storage in this country and, indeed, across the United Kingdom, relate to the use of saline aquifers in the North Sea. What discussions does he propose to have with developers who propose a carbon capture plant on the west coast of Scotland about the disposal of carbon captured at that plant?
It is early days, but the member recognises a reality. He will have noticed that, recently, Chris Goodall has appeared twice on "Newsnight" saying that CCS is possibly the single most important technology that he refers to in his book, "Ten Technologies to Save the Planet". He has also said that there is a moral obligation on countries with saline aquifers to make the most of them, and we will work closely with Stuart Hazeldine and the Scottish centre for carbon capture and storage to ensure that we do so. The matter is getting full coverage at the moment, not only in the thermal generation and carbon capture and storage advisory group, but in the oil and gas advisory group, which shares an interest, as it may be that carbon capture and storage can help it with enhanced oil recovery. Scotland will look at all the options.