Finance, Constitution and Economy
Small Business Saturday
To ask the Scottish Government how its ministers helped promote small business Saturday and what its position is on supporting such events in the future. (S4O-03821)
The Scottish Government recognises the vital role that small businesses play in our economy and we are committed to helping them to thrive. Initiatives such as small business Saturday help to raise the profile of small businesses. My ministerial colleagues and I supported the campaign, working with the Federation of Small Businesses. We visited a wide variety of small local businesses on the day and made good use of social media to encourage communities to do the same. We want to ensure that people continue to support their local small businesses throughout the year.
I refer members to my entry in the register of members’ interests. I am the convener of the cross-party group on the Scottish Showmen’s Guild.
What further help can the minister give to small businesses that might not have fixed premises and which might not receive help through the small business bonus scheme? In particular, what further help can he offer to showmen—as the Scottish Showmen’s Guild celebrates its 125th year—who face reduced income because of the present regulations under the Civic Government (Scotland) Act 1982?
There are a number of ways in which people who do not occupy continuous business premises are provided with opportunities to contribute to the local economy. I am thinking of the temporary markets that exist in different communities at this time of year. There is one in the city that I represent, Perth. Such opportunities are facilitated by local authorities to allow businesses of the type to which the member refers to participate.
It is important to recognise that the small business community makes a valuable contribution to the strength and confidence of the local economy throughout the year. As a consequence, it was a pleasure to support small business Saturday. Of more importance is the continuing support that the Government offers through the small business bonus scheme, which now supports 92,000 businesses around the country. It is a particularly good example of how the Government provides assistance, day in and day out, to Scotland’s small business community.
Oil and Gas Industry (Jobs in Decommissioning)
To ask the Scottish Government what planning it is doing to keep the jobs and opportunities of decommissioning the oil and gas industry in Scotland. (S4O-03822)
The Scottish Government has conducted extensive and detailed planning to help create a decommissioning industry in Scotland to take advantage of a sector that Oil & Gas UK estimates will be worth a total of £37 billion between now and 2040. That planning work has included the establishment of Decom North Sea; publication of the Scottish Government’s oil and gas strategy in 2012; promotion of energy skills with a budget of £6.5 million; career promotion through My World of Work and other initiatives; consideration by the independent expert commission in its report in July of the essential elements of decommissioning; and the publication in October of a detailed report by Scottish Enterprise on decommissioning capacity.
I thank the minister for his response, but I am concerned that much decommissioning work seems to be going to Norway, Holland, the midlands of England and places such as Hartlepool. At the moment, a substantial amount of decommissioning work does not seem to be being kept in Scotland. As the minister said, the decommissioning industry will be worth billions of pounds over the next couple of generations. The oil and gas industry feels that more needs to be done to keep those jobs in Scotland. Can Mr Ewing step up the programme and identify areas in Scotland in which he feels that decommissioning should be taking place?
I can do more than that. I can say that we are investing in decommissioning as well as in planning, which is what the original question was about. We have invested substantially in decommissioning, especially in Shetland. That work is being taken forward by the industry. I have had involvement in it with Canadian Natural Resources—I met its project manager for the Murchison field, which is being decommissioned—and in a large number of other areas.
It is up to the industry to take forward the decommissioning work. We are working extremely closely with Oil & Gas UK and with several operators, with whom I meet regularly, most recently on Monday of this week.
Will the minister tell us a bit more about what assistance the Scottish Government has provided to improve the decommissioning facilities in Shetland and allow the area to capture that valuable economic opportunity?
Yes. I have been working over the past three years to ensure that the opportunities for decommissioning in Shetland are pursued. As the member knows from his regular campaigning on the matter in the area, Shetland is geographically best placed to be a hub for decommissioning work. That is why I have, on several occasions, met Sandra Laurenson of Lerwick Port Authority, as well as Murdo MacIver and his colleagues at Peterson SBS. That is why that work has come to fruition over the past three years and has led to substantial investment of around £1.2 million, which has levered £20 million of private sector investment in Lerwick. We are still waiting for commensurate contributions from the United Kingdom Government.
Question 3 has been withdrawn by David Torrance for understandable reasons.
Small Business Bonus Scheme (Aberdeen)
To ask the Scottish Government to what extent small businesses in Aberdeen have benefited from the small business bonus scheme. (S4O-03824)
In Aberdeen, an estimated 2,045 businesses pay zero or reduced rates under the small business bonus scheme and have saved around £25.4 million in business rates taxation through the scheme since its introduction in 2008.
On small business Saturday, I visited the Byron Bakery in my constituency. The owners, Ally and Fiona Rait, took over the business in 2008 and have benefited every year from the small business bonus scheme. They were keen to emphasise the strong support that it has provided for their business. Will the cabinet secretary confirm that the Byron Bakery and other small businesses in Aberdeen will continue to benefit from the small business bonus not only in this parliamentary session but, if the Scottish National Party is re-elected, in the next?
The choices that members make about the visits that they make on small business Saturday are instructive. Mr McDonald visited a bakery, which might be a surprise to some of us, given his new svelte figure. I visited the award-winning florist in Blairgowrie, Something Special Flowers, which perhaps says something about my softer side in answering parliamentary questions.
I confirm to Mr McDonald that the small business bonus scheme represents significant assistance to small companies throughout the country. When the First Minister addressed Parliament on 26 November to set out the programme for government, she confirmed that the Government will continue the scheme until the end of the parliamentary session and, if re-elected in 2016, will continue it for the next parliamentary session as well.
Offshore Energy Sector (North Sea)
To ask the Scottish Government where it foresees future jobs growth in the offshore energy sector in the North Sea. (S4O-03825)
The report “Fuelling the next generation: A study of the United Kingdom upstream oil and gas workforce” highlights that factors such as capital expenditure, decommissioning and international trade will drive the size and shape of the future workforce. Future jobs growth depends on investment in the United Kingdom continental shelf. The autumn statement has done little to encourage investment in the UKCS.
The minister will be aware that 1,000 jobs have already gone in the past few months and that thousands more are on the line. Given the recent “Fuelling the next generation” report, does he agree that employers in the sector cannot afford to shed staff today and expect to recruit staff tomorrow? Will he encourage the sector to protect jobs in order to maintain continuity, keep confidence high and provide security for the onshore and offshore workforce?
Lewis Macdonald highlights a fair, sensible approach. It is certainly one that I have espoused and sought to deploy in leadership. I spoke to the OPITO business breakfast in November during the national oil and gas skills week. We have provided an extra £6.5 million to establish energy skills Scotland. We encourage all companies—small, medium and enormous—to take on young people, which many of them do. However, more can be done and it is essential that, during these challenging times, companies do not cut costs by cutting the number of young people that they employ. I certainly subscribe to that principle.
Question 6 from Ken Macintosh has not been lodged.
Air Passenger Duty (Abolition for Young People)
To ask the Scottish Government what assessment it has made of the impact on the economy of abolishing air passenger duty for young people. (S4O-03827)
The United Kingdom Government assessment, which has been certified by the Office for Budget Responsibility, estimates that the Exchequer impact of the policy will cost £40 million in 2014-15, rising to £95 million in 2019-20. However, analysis from Her Majesty’s Revenue and Customs concluded that
“the measure is not expected to have any significant economic impacts”.
We have urged the UK Government to act on the Smith commission recommendation and devolve APD so that we can reduce the tax to help unlock Scotland’s full economic potential and boost international connectivity and tourism.
As there is now cross-party agreement on the need to devolve APD to Scotland, it is vital that the UK Government takes early action to implement that. That view is shared by Scotland’s main airports, which have written to each of the Westminster party leaders urging quick progress.
Does the minister share my view that the exemption of children from APD in 2015 and 2016 will reduce costs to air passengers with children who are travelling to Scotland? That is obviously good news for Scottish airports such as Inverness, which is in my region, and, of course, it is good news for tourism. As the minister hinted, it is also a taster for the full devolution of APD when the Smith commission proposals are enacted in full.
I am delighted to agree with David Stewart, who I know takes an interest in aviation matters. I am also delighted that this appears to be a measure on which there is cross-party agreement. As the minister for tourism, I would be absolutely thrilled and delighted at the prospect of being able to remove one of the substantial barriers and hurdles to attracting more people to come to enjoy the magnificent hospitality that Scotland has to offer. Reducing APD, and eliminating it eventually, would certainly enable that objective to be better achieved.
Other than just saying, “Reduce it,” what is the Scottish Government’s specific policy for day 1 of devolved APD?
If Gavin was listening—he does not normally make the mistake of not listening to the answer, which members just heard—I said that APD would eventually be eliminated. I did not just say, “Reduce it.” Listen up, Gavin—listen up.
I said “day 1”. The minister did not listen to the question.
Order, please.
Of course we envisage that the 50 per cent reduction, which we said was our policy before the referendum, will continue to be our policy. We do not shilly-shally or U-turn on our policies like some other parties. I am sorry that Gavin has just spoilt the consensus because I fully hope that we can get cross-party support from almost all members to reduce APD by 50 per cent as soon as we possibly can.
Thank you. Could members use full names in the chamber, please?
Oil Prices (Economic Impact)
To ask the Scottish Government what the economic impact on Scotland is of the recent fall in crude oil prices. (S4O-03828)
The extent of that impact will depend on how long the low prices last. There are a range of forecasts suggesting that prices will rebound from current levels in 2015.
To minimise the predicted economic impact, it is imperative that the United Kingdom Government delivers in full its promised new investment allowance, and that it does so by no later than the March 2015 budget.
I thank the minister for his answer. Five weeks ago I asked the First Minister the same question and he told me that recovery was on the horizon. Since then, oil prices have dropped by a further $25 a barrel.
The minister will be aware that the service industry is vital to the economy of Scotland, particularly in the north-east. Is there any action that the minister can take at this stage to encourage confidence in that industry in order to prevent any attempt at downsizing or relocating to other markets from the north-east and to ensure that we are in a position to take up where we left off when prices eventually recover?
I agree with Alex Johnstone that it is important to do everything that we can, irrespective of which party we are in, to encourage confidence in the excellent oil and gas industry, which is, in many ways, the best in the world. The industry faces considerable pressures at the moment because of high costs and low oil prices. However, many predict that the oil price will recover, and the horizon may not, therefore, be too far away.
I had meetings in Aberdeen on Monday. I also met trade union representatives here yesterday—they represented many decades of experience of working in the North Sea. Until the tax changes that George Osborne and Danny Alexander promised a couple of weeks ago are delivered, there will be no new or further investment in the industry because it does not have the detail. It is essential, therefore, that the promised new measures—especially the new investment allowance—are brought forward in the budget in March. Any later than that, and there will be extremely serious repercussions.
The Deputy First Minister announced in March 2013 the launch of the “Oil and Gas Analytical Bulletin”. At that stage, the bulletin forecast that the price of oil would be $113 per barrel. Now the price has almost halved—it stands at $59 a barrel. Every member in the chamber recognises the impact of that fall on employment and the economy, but we need reliable figures and analysis, as I am sure the minister agrees.
Does the minister also agree with what professor of economics Ronald MacDonald said today about the importance of oil price estimates? Does the minister agree that it is time to have an inquiry into the validity of those estimates, because we need confidence in the predictions?
The minister’s prediction is currently higher than that of the Office for Budget Responsibility, and he has always suggested that the OBR is overoptimistic. Will he return to the chamber with a statement?
In that long and somewhat tortuous question, I was asked to get involved in an academic inquiry of some sort. Frankly, I do not have time for that, as we are too busy working with the oil industry to help it here and now. We have delivered more than 100 additional account-managed services to 100 small and medium-sized enterprises, and have provided more than £6 million for energy skills. We have, unlike the United Kingdom Government, set up a £10 million innovation fund, and we have increased the number of Scottish Development International staff all over the world.
Most seriously of all, what the industry needs right now are the details on the budget measures that were promised. From my meetings with operators and my discussions with trade unions and academics in the past few weeks, it is absolutely clear—and beyond political debate—that what is required for more investment and confidence in the industry is the implementation of the vague promises that were delivered in the autumn statement. Most especially, the investment allowance is required and must be put in place by March in the budget. That, rather than rerunning the referendum as Jackie Baillie seems to want to do, is the absolute priority for everyone.
The minister predicted a price of $113 per barrel. Given the oil price just now, does he agree with me that, although he may be a Ewing, he is certainly no JR?
I always had a soft spot for JR.
Project Bank Accounts (Impact on Small Businesses)
To ask the Scottish Government how the piloting of project bank accounts will impact on small businesses in the construction sector. (S4O-03829)
Small and medium-sized businesses based in Scotland form the backbone of our national construction capacity. Project bank accounts should reduce the amount of time that it takes for vital cash to reach them, and should provide confidence for firms that rely on work from public sector projects by reducing their exposure to credit and improving their overall cash-flow position.
Project bank account trial projects are on-going and will be evaluated in due course.
Can the minister confirm whether the Scottish Government will continue with project bank accounts? What benefits does the Government believe their use brings?
We continue to trial project bank accounts, and I am delighted that Gordon MacDonald takes a close interest in the topic.
Project bank accounts deliver two main benefits. First, small businesses in the contract chain for major works get paid for the work directly and on time, and they do not have to wait several months while money sits in the account of someone higher up the chain.
Secondly, as those of us who, like me, are slightly longer in the tooth than we would wish and who remember the Lilley debacle will know, the risk is that small companies that are lower down the chain may face insolvency as a result of problems higher up the chain.
Project bank accounts are designed to tackle both those well-known and identified problems. I am delighted that the Scottish Government is piloting project bank accounts and trying them out. We will most certainly come back to Parliament to debate the issue, in which the member takes such a close interest, very soon.
Enterprise Support (South Scotland)
To ask the Scottish Government what it is doing to support enterprise and business across the South Scotland parliamentary region. (S4O-03830)
The Scottish Government is committed to supporting sustainable economic growth across Scotland. We recognise the particular challenges that are faced in South Scotland and we work closely with a wide range of delivery partners to promote economic activity in the area. By way of example, in 2014, regional selective assistance awards worth more than £6.2 million were awarded to 13 businesses across all the local authorities in the South Scotland parliamentary region, creating 665 jobs and safeguarding 173 jobs.
I thank the Deputy First Minister for his answer, but it will be of little comfort to the only surviving auction mart in the Scottish Borders, which, four years ago, had a massive hike in its business rates overnight and without consultation. The mart is a significant employer that is vital to the local rural economy. It has a sister mart with a similar footprint just a few miles away, across the border near Wooler. That mart has rates of around £11,000, whereas the rates for the mart in the Borders are around a staggering £90,000. It is about nine times more expensive to do business north of the border because of the Scottish Government’s harsh decisions. Will the Deputy First Minister act now to right that wrong, so that marts in Scotland do not work under a regime that is so unfair and non-competitive when compared with the regime in England?
The process for the valuation of properties for non-domestic rates is carried out entirely independently of Government by the valuation boards around the country. I know that there have been issues about auction marts, and ministers engaged directly with marts on the question in the aftermath of the revaluation. I stress that the judgments are arrived at through the independent valuation process. Of course, companies are entitled to appeal against the valuations that are made. I do not have the information to hand but, from my general knowledge of the handling of appeals, I know that the overwhelming majority of them have now been settled. In fact, a very significant proportion of appeals have now been settled. I will inquire as to whether the appeal in relation to the auction mart to which Mr Hume refers has been settled. That is the due process that exists for companies to determine whether the appropriate rateable value issues have been considered in determining the valuation.
On the wider question of the role of auction marts, I recognise their significance in the rural economy. They provide a significant focal point for the trade and activity of the agricultural sector. Ministers will be happy to continue our discussions with the auction mart sector. Those are being taken forward by my colleague the Cabinet Secretary for Rural Affairs, Food and Environment.
Employment and the Economy (North-east Scotland)
To ask the Scottish Government what action it is taking to support employment and the economy in the north-east in response to Oil & Gas UK’s report, “Fuelling the next generation”. (S4O-03831)
We in the Scottish Government are supporting the industry through a wide variety of measures within the devolved functions. However, the industry requires more support from Westminster on reserved functions.
In relation to the minister’s responsibilities, can he tell us how Scottish Enterprise will respond to new challenges in the north-east economy, given the fall in the oil price? The report identifies that on-going skills gaps remain, for the sector, an additional challenge that it does not need at the moment. Does that not highlight the need to invest in skills and not to reduce investment in further education, which unfortunately has been the track record of the Government?
I agreed with much of that, until the last sub-clause. On what Scottish Enterprise is doing, I have here the report on decommissioning that Jenny Marra asked about, which was published in October.
On Monday, in the course of numerous meetings in Aberdeen I met Scottish Enterprise staff, as I always do. I can tell members that Scottish Enterprise has an excellent team that is delivering a wide range of support to the industry, and that that support is hugely valued and has enormously helped small and medium-sized enterprises in particular to achieve their potential, to grow enormously and to take on large numbers of staff, often providing goods and services that are exported throughout the world.
Of course, on the skills front we have also provided more resources to enable our colleges and universities—of which Aberdeen offers some of the finest in the world—to give young people the skills, training and qualifications that they need to play a part in what is an excellent industry. I think that we share the same aspirations, if not always the same conclusions, in this matter.
When will the next Scottish Government “Oil and Gas Analytical Bulletin” be published?
We will publish appropriate statistical information in due course. However, although publication of statistical information is important, it is not as important as getting the right measures for the industry. I can tell members that the industry faces enormous challenges at the moment. Until such time as the ground rules for the basis of new investment are established, it will not be reasonable to expect that billions of dollars will be invested in new fields, new developments and extensions. That is why the most important message—which I think I am getting across loud and clear—is that the measures that the United Kingdom Government promised a couple of weeks ago must be delivered no later than March. That is imperative. I hope that that approach will be shared across all parties.
Question 12, in the name of Iain Gray, has been withdrawn, and an explanation has been provided.
Cruise Liner Sector and Tourism (Impact of Passport Control Procedures)
To ask the Scottish Government what response it has received to requests to the United Kingdom Government to meet to discuss the impact of passport control procedures on the cruise liner sector and tourism in Scotland. (S4O-03833)
The UK Government introduced, without consultation, face-to-document passport checks of cruise liner passengers. The Scottish Government remains concerned about the damaging effect that that is having on the cruise industry across the UK.
The matter of passport checks of cruise liner passengers was first raised with the Scottish Government at the convention of the Highlands and Islands in October 2012. Since then, despite the fact that the Scottish Government has made five separate requests to meet UK ministers to discuss the issue, we have not been successful.
The minister and I have discussed the matter inside and outside the chamber. I share the minister’s frustration at the fact that the UK Government appears not to want to talk about the issue. However, although the Smith commission proposals do not include transfer of passport control measures to Scotland, paragraph 17 of the report says that
“it may be appropriate to devolve further powers beyond those set out in the heads of agreement”.
Does the minister therefore agree that transferring those passport control powers could enable a Scottish solution to the problem, which is faced by a growing industry that has a positive effect on the economy of Scotland and, in particular, of Inverclyde?
Yes, I do. It is essential that the UK Government listen to Scotland’s needs and that it act accordingly. Stuart McMillan, who has championed this issue in the Scottish Parliament, quite rightly highlights the fact that the cruise market in Scotland has grown exponentially, as I have seen in places such as Greenock, where it is now an important part of the local economy and sustains a great many jobs. There is huge potential.
Although security issues are, of course, important, we believe that the approach that has been adopted is gold plated and over the top. We greatly regret that despite our reasoned approach in this matter, the UK Government is not willing properly to engage with the Scottish Government to find a better, more practical and successful solution.
Local Taxation (Independent Commission)
To ask the Scottish Government when the independent commission to examine council tax alternatives will begin its work, and what timetable it will work to. (S4O-03834)
The commission will commence in early 2015 and report in the autumn.
Mr Swinney will remember that, as far back as 1997, the Scottish National Party manifesto promised the introduction of a local income tax and that, in 2007, its manifesto promised “Scrapping the unfair council tax”. Today, we have had a reply from the minister indicating a timescale.
Does the cabinet secretary appreciate the pressure that local authorities have faced in those 17 years, and will he ensure that the appropriate priority is placed on delivering a working solution within that timescale?
The last time I looked I had not been in power for 17 years. It may feel like that to Graeme Pearson, but it has only been seven and a bit years. If the Convention of Scottish Local Authorities was feeling pressure in the 10 years before I came to office, that pressure was delivered by Graeme Pearson’s good colleagues in the Labour Party, both in the United Kingdom Government and the Scottish Government.
Local authorities have been well supported financially by the Scottish Government. We have, since this Government came to office, had years of negotiated and agreed settlements between local government and the Scottish Government, and local government’s share of the total budget that is available to the Scottish Government is higher today than it was when this Government came to office in 2007, so local authorities have since then been better and more securely supported by the Scottish Government.
The Government wants to proceed with the establishment of the commission to examine issues around local taxation, in line with recommendations that were given to us by the Local Government and Regeneration Committee and in the spirit of broadest possible agreement. Last week we talked to the COSLA leadership about the steps that we can take in partnership with local government to take forward such an agreement. On 26 November, in her statement to Parliament on the programme for government, the First Minister invited all political parties to be included in the process. The Government wants to proceed with as much agreement as possible, so I hope that the Labour Party will be part of that agreement.
Health Spending (Barnett Consequentials)
To ask the Scottish Government what detail the Cabinet Secretary for Finance, Constitution and Economy can provide regarding the allocation of the Barnett consequentials arising from the recent increase in United Kingdom Government health spending. (S4O-03835)
As I announced on 3 December, the Barnett consequentials arising from the increase in UK Government health spending will be passed on in full to the national health service in Scotland.
I thank the cabinet secretary for his answer, although it does not really give us any more detail. Would he like to comment on the publication of the recent report from Scotpho—the Scottish public health observatory—which showed that, out of 11 actions that can reduce inequalities, paying the living wage is by far the most effective? Having failed to make payment of the living wage happen through the Procurement Reform (Scotland) Act 2014, will the Government follow London’s lead and ensure that all public sector contracts require that workers engaged under them are paid the living wage, in order to reduce health inequalities?
I agree unreservedly with Dr Simpson that the living wage is the most effective way to tackle poverty and inequality. The Government has led from the front by paying the living wage to our staff, ensuring that it is paid to public sector workers who are covered by our pay policy and taking forward mechanisms that are supportable in law. Dr Simpson and I have heard all the debates about the advice of the European Commission and the advice that we have. We have taken steps in law to negotiate contracts that provide for the payment of the living wage. We have managed to secure that most recently in relation to the Government’s catering and cleaning contracts.
Last week in the national economic forum, we led a debate on the importance of extending the living wage across the private sector. I am delighted to say that that received a strong and positive endorsement from many private sector organisations that were in attendance and that it resulted in some companies changing their practice.
The Government will continue to take forward such work in concert with the Poverty Alliance, with which we work closely on such questions.
Draft Budget 2015-16 (Housing Adaptations for Tenants of Registered Social Landlords)
To ask the Scottish Government what discussions the Cabinet Secretary for Finance, Constitution and Economy has had with colleagues regarding the allocation in the 2015-16 draft budget for housing adaptations for older and disabled tenants of registered social landlords. (S4O-03836)
I confirm that the £10 million of funding available in 2014-15 for registered social landlords to deliver adaptations to help older and disabled people to live at home independently and safely will be maintained in 2015-16.
The Scottish Housing Regulator reports that, on average, social housing tenants wait 66 days for medical adaptations to be completed, while some registered social landlords take a staggering 358 days. Does the cabinet secretary agree that those timescales are completely unacceptable? What action will he take to support the Minister for Housing and Welfare in ensuring that local authorities have the support to help older and disabled residents to have medical adaptations implemented as soon as possible?
I agree with Mary Fee that, if an assessment is made that an individual requires some adaptation in their home to support safer independent living, they should be able to secure it in a credible timescale, and the timescales that she just read out are not credible. I will look at the matter carefully and discuss it with the Minister for Housing and Welfare. If I can offer particular additional support to the work that I am sure Ms Fee is doing, I will certainly do that.
Budget Consideration (Comparison of Methods in Scotland and the United Kingdom)
To ask the Scottish Government what its position is on how the Scottish budget method of consultation and committee deliberation compares with that of the United Kingdom. (S4O-03837)
Over the summer, I engaged extensively on our budget priorities with a wide range of stakeholders, including our partners in local government, the trade unions, business organisations, the third sector and those with low-carbon interests. Since it was published on 9 October, the 2015-16 draft budget has been on the agenda of more than 40 Scottish Parliament committee meetings and has been the subject of at least a dozen ministerial evidence sessions.
I have written to the finance spokespeople of the main parties in the Scottish Parliament to seek their views on the draft budget, and I hope to meet each of them in the new year to discuss it. I am always open to discussion on how the process can be improved, but I believe that most stakeholders and parliamentarians south of the border would consider the comprehensive consultation and scrutiny process that I have just outlined a strong proposition.
Does the cabinet secretary agree that Westminster’s methods are outdated theatre, that they are not fit for a modern democracy and that they make it extremely difficult for the Scottish Parliament to plan ahead?
In scrutiny terms, the Scottish Parliament has always followed the practices to which Mr Mason referred in his initial question, dating back to one of the bills that we passed in 1999-2000—the Public Finance and Accountability (Scotland) Bill—in which we recognised the importance of effective financial scrutiny. From where I am sitting, it certainly feels as if there is effective scrutiny of the financial commitments that the Government makes, but we are always willing to pursue any suggestions that are made on that. From my experience as a member of the House of Commons, I would say that there is significantly greater scrutiny of financial provisions in this Parliament than there ever was in the House of Commons.
Scottish Exchequer
To ask the Scottish Government whether it considers that it should establish a Scottish exchequer to accommodate further tax and spending powers going forward. (S4O-03838)
The Scottish Government will continue to build on its reputation for fiscal competence in implementing the limited tax and spending powers that were recommended for devolution by the Smith commission. Those powers will be exercised within a fiscal framework that provides an equitable settlement for both the Scottish and United Kingdom Governments.
With the increased powers that the Smith commission proposed, and with the inevitable further powers on revenue and expenditure functions, such as all welfare benefits powers and total powers on tax administration and collection, on borrowing and on financial policy, does the cabinet secretary agree that a fully fledged Scottish exchequer will be necessary to apply macrofinancial policies in preparation for the independence that will come?
For Scotland to be an independent country, it would require to have all the necessary skills and capabilities at its disposal to exercise all functions properly and effectively. I assure Mr Brodie that, as we take forward the additional responsibilities that we have—we are doing that in relation to land and buildings transaction tax and landfill tax—we are acquiring the skills and expertise to exercise those functions properly. That will continue to be the Scottish Government’s approach as we acquire further responsibilities.