SCOTTISH EXECUTIVE
Finance and Sustainable Growth
Railway Stations
To ask the Scottish Government what plans it has to increase the number of railway stations. (S3O-5337)
Two new railway stations are included in the Government's transport interventions that were announced on 10 December 2008. They are Dalcross and a station in the Gogar area. Development of interventions on the Aberdeen to Inverness line will include consideration of the option of a station at Kintore.
The minister will be aware that there are communities throughout Scotland that are well served by railway lines but not by stations on those lines. That is the case in the Bonnybridge area of my constituency, which has seen a rapid increase in its population in the past five years. How should Transport Scotland and Network Rail identify areas such as Bonnybridge, where particular advantage could be gained from opening stations?
Transport Scotland and Network Rail work together and with ministers to consider the many opportunities for stations throughout Scotland. In many cases, it has been in the economic interests of developers to pay most of the cost of new stations. If there is a station in an area, that increases substantially the ability to sell houses at higher prices. We would be happy to hear about any proposals in Bonnybridge and other areas of the member's constituency in order to ensure that we actively engage to determine whether they are of national or local importance and, if appropriate, to proceed accordingly.
The minister is aware of the new station that has been proposed for Blackridge on the Airdrie to Bathgate rail link. However, the section 75 agreement that was to help fund the station has not been signed. Will the minister stand by promises that were made by the SNP during the 2007 election campaign and commit here, today, to making up the shortfall and ensuring that the people of Blackridge get their station?
I am aware of some of the difficulties that the developers are having sustaining the previous commitments from their bankers to support the section 75 agreement. My officials and the officials of West Lothian Council are discussing the issue. The early feedback is that a resolution may well be found. In any event, I am absolutely confident that Blackridge will be part of the new and exciting railway that is being developed.
The minister will be aware of how welcome the new early train service between Perth and Edinburgh has been. I have used it already, and quite splendid it is, too. I wonder if I might chance my arm a little further in respect of a slightly different part of my constituency, where there is a longstanding campaign to reopen the Blackford railway station. The minister may be aware of the campaign, which I fully support. Is there any real possibility that the station will reopen in the future?
Roseanna Cunningham can be assured that her arm remains entirely safe in my hands. I have already agreed to meet one of the local councillors, who is part of the campaign to open Blackford railway station again—COBRA. I expect that meeting to take place shortly. Part of our consideration will be whether reopening the station is a matter of local or national benefit, but in any event I am engaged in that interesting proposal.
Scottish Water (Meetings)
To ask the Scottish Executive when it next plans to meet the chief executive of Scottish Water and what will be discussed. (S3O-5266)
Regular meetings are held between officials and the chief executive of Scottish Water on a full range of issues that concern the business. Ministers last met the chief executive with the chair and board of Scottish Water in October. They plan to meet the chair and chief executive in March 2009 to discuss the draft business plan for 2010 to 2014.
During the discussions in October, I hope that the minister expressed his Government's and Parliament's sincere thanks to Scottish Water's staff for their hard work since 2002, which has achieved savings of £1 billion through efficiency savings and reduced operating costs. I also hope that he will acknowledge that the on-going dispute over Scottish Water's imposition of a 15-month pay deal is having a detrimental effect on its staff's financial situation and morale. Given that over the same period the remuneration of Scottish Water's various executive directors has risen substantially, from an average of £108,000 per annum to an average of £172,000 per annum, does the minister agree that Scottish Water's staff should be fairly rewarded for their dedication with a just pay settlement rather than the arbitrary imposition of what amounts to a wage cut?
Bill Butler may be interested to know that my colleague the Cabinet Secretary for Finance and Sustainable Growth met and had productive discussions with the Scottish Water unions yesterday. I associate myself with Mr Butler's tribute to the staff of Scottish Water, who have been a significant part of its success since 2002.
In the light of what the minister says, will he please refer to the Official Report of the Finance Committee meeting in which the Scottish Government's deputy head of finance confirmed that the new contract for the new chief executive of Scottish Water is substantially different from that of his predecessor and that it is indeed a deviation—that the Scottish National Party Government put in place—from the senior executive pay policy? Which minister signed off the new contract with the current chief executive's new pay?
Jeremy Purvis will be aware that the previous Administration set down policies and practices for remuneration of senior members of Scottish Water in the light of the substantial difficulties in retaining the necessary expertise to manage that company. The new chief executive's remuneration was set in that context.
Will the minister confirm that it remains the Scottish Government's policy to ensure that Scottish Water remains firmly in the public sector and continues to progress and rival in its work the most effective working of water companies elsewhere in the United Kingdom?
Yes.
Institute of Asian Professionals (Meetings)
To ask the Scottish Government when it last met representatives from the Institute of Asian Professionals to discuss the current economic climate. (S3O-5324)
Scottish Government officials met representatives of the Institute of Asian Professionals on 9 December to take forward a joint event scheduled for 9 March 2009. That event will focus on how best further to develop enterprise and other support for Asian and minority ethnic businesses, particularly in the current economic climate. The next meeting between officials and representatives from the institute is scheduled to take place in January 2009.
I know that the cabinet secretary values the significant contribution of the Asian business sector. As he is aware, Asian businesses have their own specific needs, which are affected by the current economic downturn. What can be done to use existing business support to assist the Asian business sector?
I assure Mr Ahmad that the Government is determined to make available to all representatives of the business community the type of advice that will assist businesses through the difficult economic conditions that we face. As I set out in my earlier answer, we will take special measures to ensure that we organise appropriate events to address the particular needs of the Asian business community, as part of the Government's programme of activities.
The Asian business community needs support, as does everyone else. I have been interested to hear about Asian networks throughout the world, which allow access to interesting funds such as sovereign wealth funds and other forms of capital. Has the cabinet secretary had any meetings on which he can report to Parliament on accessing such funds to assist with relieving some of the pressure on our budgets?
The Government is interested in co-operating with sovereign wealth funds. We have had discussions in that respect and we will continue to have discussions to ensure that we have available the type of investment that supports the development of the Scottish economy. The Government will take forward those discussions, which I know Mr Kerr will warmly welcome.
The current economic climate in Scotland is having a particularly bad effect on the construction industry. The Scottish National Party Government could assist greatly if it would cut through the red tape that seems to be preventing housing associations from accessing funds to commission contracts. I am advised by—
A question, please.
I am getting there. I am advised by a long-established contractor—
Quickly, please—a question.
What is the Scottish Government doing to stimulate the number of contracts that are being issued by housing associations? I am advised by a local contractor that it tendered for 21 contracts last year, whereas this year it has tendered for only 12.
The Government has taken action to accelerate £100 million of investment in the affordable housing sector in this financial year and the next one. We did that in August, when we could see a clear decline in the private housing market and a requirement for the public sector to do as much as possible to support the construction industry. That has, of course, been assisted by the Chancellor of the Exchequer's decision to accelerate the volumes of capital expenditure, on which I reported to Parliament in my statement on the pre-budget report. Part of that resource will be allocated to accelerating affordable housing projects to ensure that the construction industry has opportunities to build new properties and to satisfy the people of Scotland's need for housing.
Local Government Finance Settlement
To ask the Scottish Executive how the local government finance settlement will impact on front-line local authority services. (S3O-5264)
I announced to Parliament on 11 December that the provisional amount of the local government settlement for 2009-10 had risen to £11.7 billion, which is an increase of 5.1 per cent compared with 2008-09. That will support councils in providing essential services for the communities that they serve and it includes funding to extend the council tax freeze for a further year.
The cabinet secretary talks about the commitment of extra funding, but is he aware of the Chartered Institute of Public Finance and Accountancy's rating review, which states that, despite the 5.5 per cent education budget increase in 2008-09, which has been much vaunted by the First Minister, in reality and although 37.5 per cent of local authority expenditure will go on providing education services, that is 2.1 per cent lower than it was in 2007-08? Will the cabinet secretary explain why he says that more money is going into education and front-line services when in practice there are serious cuts in staffing and other front-line education services in schools throughout my constituency, such as Boroughmuir high school and Abbeyhill, Balgreen, Craiglockhart and Roseburn primary schools? Will the cabinet secretary admit that the First Minister's comments were completely misleading?
The Government's local government settlement for 2009-10 represents an increase of 5.1 per cent on the previous financial year, and the increase for local government services in 2008-09 was higher than the average increase in the total Government budget. We have put in place the resources to enable local authorities to make their choices about the design of public services and I know for a fact that, in different parts of the country, they are investing heavily in education. Last night at one of my regular discussions with the Convention of Scottish Local Authorities, Councillor Jim McCabe, the leader of North Lanarkshire Council, made a strong argument about how different councils are investing in local authority education services. The Government welcomes that investment.
Road Works (Impact on Small Businesses)
To ask the Scottish Executive what assessment it has made of the financial impact on small businesses of roadworks. (S3O-5310)
Although the Scottish Government is aware of the risk that road works will have a financial impact on small businesses and seeks, in collaboration with them, to minimise the impact, no formal assessment has been carried out.
Darren Williams of Tyre and Auto Care Services in Keith estimates that recent road works have resulted in £23,000 loss of income. Mr Williams has said that his business could not have withstood that loss of earnings had the works been undertaken in his first two or three years of trading. Will the Scottish Government investigate the possibility of compensating small businesses that are seriously affected by road works and may already be feeling the pinch of the economic downturn?
I am aware of the case to which Alison McInnes refers, as the local member has discussed it with me. We have sought to work with the business in question to minimise the effects on it and some other businesses in Keith. Unfortunately, when the road was lifted, substantial difficulties were encountered in services, the nature of which was not known at the time. I believe that the difficulties are now largely resolved. We will learn any lessons that it is appropriate to learn from that business's experience.
Public Transport (Local Authorities)
To ask the Scottish Executive how it will work with local authorities to improve public transport. (S3O-5327)
The Scottish Government encourages local authorities to promote public transport, as reflected in the single outcome agreements. As part of the bus action plan, we encourage local authorities and bus operators to work together to improve bus services throughout Scotland. That will include appointing a senior bus development adviser to promote the improvement of bus services, spreading good practice and highlighting the importance of a good bus network. We will also publish a national strategy on bus park and ride to encourage modal shift from the private car to more sustainable public transport.
I receive many complaints about the quality and reliability of bus services in my constituency. Although local authorities can work with the Vehicle and Operator Services Agency to monitor commercial services, follow-up action is possible only after the traffic commissioner for Scotland has deliberated. Does the minister agree that the system is ineffective in coercing improvements?
There has been a substantial change in VOSA's engagement with the bus industry and it has taken some significant actions.
Construction Industry
To ask the Scottish Executive what is being done to assist the construction industry through the economic downturn. (S3O-5302)
The Scottish Government is supporting the construction industry through a range of initiatives. We are accelerating our investment plans in affordable housing and bringing forward capital investment plans. We are also increasing investment in school building programmes, allocating additional funding for college and university capital projects and increasing funding for capital programmes in the health sector. We will continue an active dialogue with the construction and house-building industries through the Scottish construction forum and the housing supply task force. That will allow us to respond as effectively as possible to the issues and problems that the industry faces in the current climate.
There is no doubt that the recession is having a serious impact on the construction industry. What is being done to ensure that apprentices are being recruited and retained? In particular, what is being done to ensure that third and fourth-year apprentices who are facing redundancy because firms are going out of business can finish their apprenticeships to ensure that Scotland will have the necessary skills base for future years?
I thank Mary Scanlon for that question. She will note that the First Minister addressed the issue to which she refers during First Minister's questions, when he talked about Skills Development Scotland and partnership action for continuing employment coming together to address the issue. We, too, want to address it through the work that we do with the Scottish Building Federation, the Scottish construction forum and the housing supply task force. The SBF had a meeting yesterday with the Cabinet Secretary for Finance and Sustainable Growth. On top of that, we seek to engage with the industry nationally, as we did in Edinburgh back on 28 August, and locally in constituencies by considering what we can do to create greater cohesion in the sector so that there is better understanding of the challenges that we all face, and so that we get as many people as possible working together to get the best possible results and to give apprentices the future that they deserve.
Can the cabinet secretary tell us about any discussions that he may have had with the Government in London about the potential to reduce VAT on house repairs or renewals to 5 per cent, given that the European Commission signalled that that would help the construction industry at this time? Has the Scottish Government any information on that matter that it can share with us?
Indeed. Rob Gibson will remember from First Minister's questions today that the First Minister expressed his preference for moving towards a more focused intervention on VAT for home improvements, as it is more appropriate for meeting the needs of Scotland and the Scottish construction sector. To that effect, the Deputy First Minister, Nicola Sturgeon, wrote to the chancellor on 17 November and 9 December to call for a temporary cut in VAT for home improvements and repairs, to bring it down from 17.5 per cent to 5 per cent. Sadly, although that move was supported across the industry, the chancellor rejected it.
On the policy of bringing forward funding or allowing it to become available for capital projects, can the Government consider not only the volume of available capital cash but the purposes for which it is available? It is becoming apparent from discussions with the construction industry that it is not just the projects that may have long lead-in times for building that are important, because projects involving capital for cyclical maintenance may create more job opportunities in the short term. Will the minister ensure that, when civil servants consider policies, they give full regard to that?
Peter Peacock has made an interesting point, which we are addressing: witness the work that the cabinet secretary is doing, particularly with local authorities, and our on-going open debate with the construction sector at national and local levels. I am willing to share with members the output of our meeting with the construction industry in my constituency, which has probably thrown up generic ideas that could operate in other constituencies, particularly rural constituencies such as the member represents.
Transport Projects (Fife)
To ask the Scottish Executive what plans it has for new transport projects in Fife. (S3O-5263)
Transport Scotland's strategic transport projects review has recommended a package of surface transport schemes to be delivered over the next 20 years. In addition to the Forth replacement crossing securing cross-Forth travel between Fife and the Lothians remaining on schedule to open in 2016, the recommendations of the STPR include a wide range of improvements, such as improvements to the A92 through route management and targeted investment; the development of park-and-ride/park-and-choose sites on the A92; rail enhancements through more frequent and faster train services between Edinburgh, Cowdenbeath and Kirkcaldy; a direct double-track rail link between Halbeath and Inverkeithing to maintain the 60-minute commutable labour market around Edinburgh and improve access to the port of Rosyth; and the provision of light rapid transit connections between Fife and Edinburgh, connecting the communities in Fife with the business and commercial opportunities in Edinburgh and West Lothian.
Will the minister confirm whether the Leven to Thornton rail link was considered for inclusion in the strategic transport projects review? If it was, why was the link not included in the Government's final proposals? Will the minister pledge to find central funding for the link, regardless of its omission from the STPR?
Many projects will be progressed that have not been deemed to be of strategic national importance. The Levenmouth railway project, which is a potentially very important intervention for an area in some economic distress, is currently being pursued by the south east of Scotland transport partnership. I look forward to hearing more about the outcome of SEStran's deliberations as those become available.
Waverley Railway
To ask the Scottish Executive what progress has been made in relation to the project to reopen the Waverley line between Edinburgh, Midlothian and the Scottish Borders. (S3O-5265)
We have recently allocated further capital to accelerate a package of advanced works, including taking forward the diversion of key utility services along the route. The purchase of all necessary land is well under way and is expected to be effectively complete around April 2009. Good progress continues with the necessary procurement development for the main works, which will benefit from the acceleration of the advanced works. Contractors and financial investment organisations continue to express a strong interest in the project.
As the minister is aware, the Waverley line will bring great social, environmental and economic benefits to Midlothian and the Borders, including some 360 full-time jobs in the construction of the line and 550 full-time jobs when the line is completed. Can the minister give us some more detail on what funding method will be used for the Scottish Government's contribution to the project? Can he put a figure on the Government's contribution? In addition, given the current economic uncertainty, what discussions have he or Transport Scotland officials had with developers about their financial contribution to the project?
The railway line will be built, financed and maintained by a not-for-profit company using a design, build, finance and maintenance contract under the non-profit-distributing procurement model. We have previously stated that the costs will be in the range £230 million to £295 million.
I have written to the minister about a business in my constituency that still awaits Transport Scotland's view on how much of the business's land will be required for the construction of the line and whether its land will be required for access during the construction of the line. When the people in that business read the Official Report, are they expected to be happy that they will need to wait another five months for that information to be provided, especially given the current economic climate?
The member will be aware of the legal environment surrounding compulsory purchase orders and voluntary purchases of land. He should welcome the fact that we have now set a date—April 2009—on which we expect the land acquisition to be complete. That is very rapid and satisfactory progress. I hope that Transport Scotland continues to have meaningful discussions with the business to which the member referred.
Transport Links (Highlands)
To ask the Scottish Executive what progress it is making in improving transport links to the Highlands. (S3O-5298)
We have a fully committed programme of transport infrastructure investment to 2012, which includes investment in the A82 and the A9. That includes improvements on the A82 at Pulpit Rock between Tarbet and Ardlui, a new western bypass at Crianlarich and current design work to dual the Birnam to Luncarty section of the A9.
I thank the minister for his detailed reply. Does he share my view that it is crucial to complete the missing link in the trunk link route, which will enable traffic to bypass Inverness, by connecting the A9 to the A82? Highland Council tells me that it cannot fund that project by itself. Will the minister provide an early Christmas boost to the Highlands and reconsider funding the completion of that project?
We have of course provided substantial boosts for the economy of Inverness from the dualling of the A96 to Nairn, the bypass of that city, the construction of a road between the A96 and the A9 to service the university of the Highlands and Islands and the creation of a railway station at Dalcross. We continue to talk to Highland Council and Highlands and Islands transport partnership about further connections to the A82, for which we have at last adopted the whole route action plan. The member can be absolutely assured that, as the economic case emerges that makes sense for us to prioritise particular interventions, we will look carefully at what we should do. We have delivered a package of interventions for Inverness and the area around it that is unparalleled in recent history.
Scottish Futures Trust (Investment Models)
To ask the Scottish Executive what investment models the Scottish Futures Trust has recommended to local authorities for infrastructure projects for which they require funding. (S3O-5270)
The Scottish Futures Trust is supporting local authorities in developing strategies for planning, funding and delivering infrastructure projects and programmes across sectors and boundaries. That work takes account of a wide range of potential delivery and funding options.
What discussions has the cabinet secretary had with Fife Council, West Lothian Council and the City of Edinburgh Council about impacts on their funding proposals? As he knows, the biggest infrastructure project that is planned for Scotland—the new Forth road bridge—will have its northern landfall in the Dunfermline East constituency, which I have the privilege to represent. Will the cabinet secretary report what discussions about funding he has had with members of the European Parliament? Has he had discussions with the European Commission to determine whether any programme of funding can be secured from Europe? Will he explain what European funding, such as that for trans-European road networks, might be appropriate for the new bridge and might therefore reduce the impact on local authorities' investment models?
I assure Helen Eadie that ministers and officials have discussed with the local authorities that she mentioned the implications of capital investment in the replacement Forth crossing. Mr Stevenson spoke to the relevant local authority leaders about the strategic transport projects review. Of course, a set of such complex proposals cannot happen without adequate dialogue with the local authorities that are concerned.
In response to the first question from my colleague Helen Eadie, the cabinet secretary described functions of the Scottish Futures Trust. What is the difference between those functions and the previous civil service function of advising public authorities on public infrastructure projects? The Scottish Futures Trust's practice appears to be identical to that of the civil service under the previous Government.
The fundamental difference between what the civil service did and what the Scottish Futures Trust will do is predicated on the aggregation of different projects in different areas to ensure that we secure effective value for money and that we retain, collectively, at the disposal of the public sector in Scotland, the negotiating skills and other attributes that will allow us to match the private sector like for like, and that are essential in such expensive projects. [Interruption.]
Not true.
If Mr Kerr cannot understand that point, it is no wonder—
Not true.
Order.
It is no wonder that we need the Scottish Futures Trust to deliver the value for money that Mr Kerr failed to deliver.
Economy (Scottish Borders)
To ask the Scottish Government what discussions it has held in the last month with local authority, enterprise company and local business representatives in the Scottish Borders with a view to boosting the local economy. (S3O-5333)
I was pleased to have the opportunity to return to Hawick on 8 December and meet local politicians and representatives from Scottish Borders Council, Scottish Enterprise, the business community and other local bodies to discuss measures to boost the local economy in Hawick and that of the Scottish Borders more generally.
The minister's visit was most welcome. I was there, as were other members of this Parliament, Westminster and local government, and I know that he has undertaken to visit again.
I recognise the importance of ensuring that there is effective support and a project base for the local housing sector in the Borders. That point was made clearly to me at the meeting in Hawick, and it was made equally clearly to me when I attended an event hosted by the Scottish Borders Manufacturers Corporation some weeks ago in the Borders.
Non-profit-distributing Model
To ask the Scottish Executive what its position is on the reported statement of Professor John Kay, a member of its Council of Economic Advisers, that the not-for-profit-distribution method is "PFI with window dressing". (S3O-5268)
Professor Kay makes a valuable contribution to the work of the Council of Economic Advisers precisely because he can offer independent views on a number of key issues.
It is clear that the Government will pick and mix the advice that it takes from its advisers.
I feel the onset of Bob the Builder in the Christmas season. To give Mrs Craigie a precise answer, I could get the civil service to go and count the number of bricks that have been laid by the SNP Government—
Zero.
It would be a very big number, Mrs Mulligan. However, it would take a colossal amount of resource to answer that question—almost as much resource as it takes to answer the pointless questions in which Lord Foulkes seems to specialise. However, if Mrs Craigie wants me to count the number of bricks, I am prepared to do that—the number will be massive. I am thinking of the schools that are being built in Falkirk, Aberdeen, and Perth and Kinross and the work that is under way on the M74—my goodness, I have lost count of the number of projects where the bricks are being laid. I am sure that Mrs Craigie will be rejoicing in the building that is going on in her constituency.
Previous
Dignity for PalestiniansNext
Organ Donation