Plenary, 20 Dec 2007

Meeting date: Thursday, December 20, 2007

Official Report 684KB pdf

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Question Time

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SCOTTISH EXECUTIVE

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Finance and Sustainable Growth

Good afternoon. The entire themed question time session this afternoon will be given over to questions on finance and sustainable growth.

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Public Sector Contracts (Small and Medium-Sized Enterprises)

To ask the Scottish Executive what the value is of public sector contracts currently sourced from small and medium-sized enterprises. (S3O-1681)

Based on the best available data from financial year 2005-06, small and medium-sized enterprises account for approximately 51 per cent of public sector expenditure on goods, services and works from third-party suppliers. That figure is derived from an examination of the expenditure of 127 public sector organisations, including all 32 local authorities, all health boards, all Scottish universities, all Scottish Government core departments and many executive agencies, non-departmental public bodies, emergency services and colleges. There is no central database across all those organisations to enable us to determine the number or value of such public sector contracts.

Once a procurement target has been set—which I assume will happen—how will the cabinet secretary monitor and publish progress towards achieving it? Indeed, how will the volume of public contracts that are sourced from SMEs be maintained once the target has been achieved?

I know that Mr Scott has a long-standing interest in ensuring that contracts are given to small and medium-sized enterprises, and I acknowledge the amount of work that he has done in raising the issue. He will understand from that work the difficulty and complexity of pinning down the exact volume and scale of contracts that are undertaken by small and medium-sized enterprises. However, I assure him that, as we advance and give more structure to our procurement agenda, and as we place more emphasis on securing a greater element of contracting with small and medium-sized enterprises, we will also examine the recording and reporting of that information to try to ensure that we can provide members of the Parliament who have pursued the issue, such as Mr Scott, with more definitive answers on our procurement performance.

I place on record the importance that the Government attaches to procurement. We strongly support the agenda that was advanced by the previous Government and developed by John McClelland, who will be closely involved in our procurement agenda. I look forward to the first meeting of the national procurement board, which I will chair, in the new year. Addressing the issues on SME participation that Mr Scott has raised will be a central issue for the board.

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Domestic Energy Efficiency

To ask the Scottish Executive what initiatives it will pursue to deliver domestic energy efficiency and what reduction in CO2 emissions those initiatives are intended to deliver. (S3O-1730)

The Scottish Government is committed to improving domestic energy efficiency and has a range of policies and initiatives in place to reduce domestic carbon emissions.

Since May, we have pursued a number of new initiatives that are aimed at the domestic sector. Those include: the introduction of a one-stop shop for domestic consumers in Scotland to provide advice on energy efficiency, microrenewables and transport; the establishment of an expert panel to advise the Scottish Government on low carbon building standards; and, most important, our commitment to introduce a Scottish climate change bill, which will set a mandatory target of cutting emissions by 80 per cent by 2050. As part of the development work for the bill, we will introduce a robust framework that will allow us to monitor and report on emissions reductions.

I observe that, according to the Scottish Government's own figures, nearly a quarter of Scotland's households cannot afford adequate heating. Will the Government examine fuel poverty and carbon reduction? In particular, will it reconsider the spending review decision to freeze spending on fuel poverty programmes in the light of research? Will it commit to considering reconvening the fuel poverty forum, which brought together independent experts and charities working in the field, and which has not met in the past year? Will the Government take up the major issue of domestic energy efficiency and join up its work on energy efficiency and climate change targets in the light of the fact that there is an urgent problem in Scotland now? The matter is not about future issues; it is about what the Scottish Government can do now at its own hand.

The member raises an important point in relation to an issue in Scotland. Through the Sullivan task force, the Government is considering what can be done to address energy efficiency in homes. However, the two major contributors to addressing fuel economy are reserved to Westminster. The first is the cost of the energy that is used in homes. Westminster has responsibility for ensuring that the price of fuel is affordable. Secondly, Westminster has a number of residual powers in relation to energy efficiency in homes. We will talk to Westminster about that to ensure that, between Westminster and the Scottish Government, we can make the progress that was committed to by the previous Administration and is endorsed by the current one.

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Energy Strategy (Hunterston B)

To ask the Scottish Executive how its energy strategy will be affected by the decision to extend the operating life of Hunterston B. (S3O-1753)

We always recognised that British Energy might seek to extend the operating life of Hunterston B. However, we also know that Scotland's energy future lies in safer alternatives, and we are clear that Scotland does not need or want new nuclear power.

We support clean coal technology, we have set a target for 50 per cent of electricity to be supplied from renewable sources by 2020, and we are providing grant support to emerging renewables technologies. As a result, the installed capacity of renewable electricity in Scotland is already greater than that of nuclear power.

I recognise the minister's description of what his energy strategy is, but I did not hear him mention how it has been affected by the important decision on Hunterston B.

The minister will acknowledge that his opposition to nuclear power has been based partly on concerns about the disposal of nuclear waste, and at the same time the SNP's policy has been to advocate the on-site disposal of radioactive waste from nuclear power stations. Does that policy still apply? What are the implications for Hunterston? What work will the Scottish Government do to take those implications into account?

Policy is as it was. In addition, we have a clear view about building Scotland's energy mix with all the components that we have: clean coal, carbon capture, offshore wind—which was recently endorsed by the Westminster Government—wave, tidal, heat pumps, biomass and biofuels. A vast amount of capacity is coming forward. People are even moving, as Napier University is, to use timber such as Sitka spruce to produce biofuels in Scotland.

As the member for the constituency in which Hunterston B is located, I warmly welcome the minister's public support for extending the life of the plant. Does he agree that, due to a decade of dithering by Westminster, it would not be possible to build a new nuclear facility at Hunterston by 2016 even if that was desirable? What steps will the Scottish Government take to ensure that the jobs and investment that are provided by Hunterston B remain in Cunninghame North when the facility finally closes? Will they involve the renewable energy sector?

I thank the member for that contribution and tell him that, in driving forward, we recognise the shortcomings of our predecessors and we plan to have the diverse economy that will create many more jobs in south Ayrshire. I plan to run an event in south Ayrshire on 14 January with that objective in mind.

I thank the minister for his welcome for the extension to the life of the plant at Hunterston. However, will he acknowledge that the efficiency, reliability, security of supply and safety of the Hunterston site would all be improved if he sanctioned the construction of a replacement nuclear power station on the site?

Frankly, I cannot agree with that. The situation is that Hunterston was out for most of last year. The member may not like it, but that is the reality.

Scotland's future lies in moving forward to capitalise on renewables. That will create more wealth in Scotland, retain wealth from energy in Scotland, and allow Scotland to export energy expertise and products well into the future. That is a great new opportunity for Scotland. Denigrating it and looking to unnecessary alternatives will not help us to maximise the benefit that can accrue to Scotland's economic future.

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A90 (Laurencekirk)

To ask the Scottish Executive whether it will provide funding in 2008-09 for a full grade-separated junction on the A90 at Laurencekirk. (S3O-1725)

The trunk road investment programme for 2008-09 is, as is normal with planning for major improvements, long term, and is largely as inherited from the previous Administration, which made no provision for that work.

Nicol Stephen, a previous Minister for Transport, implemented short-term measures at the Laurencekirk junction, such as a 50mph speed limit, speed cameras and a new surface. Those were only ever intended to be short-term measures. To save lives and prevent accidents, the solution is to build a grade-separated junction. When will the Scottish Government be in a position to make the necessary funding available? Can the minister give the Parliament a specific date—a year, perhaps—when we might expect a grade-separated junction to be built there?

I accept that, on 11 January 2005, Nicol Stephen announced the improvements that were made at the junction, to which the member referred, and I supported their introduction.

In answer to a question from Mike Rumbles, on 29 September 2005 Tavish Scott addressed the issue and said:

"The forthcoming Strategic Transport Projects Review will provide the future framework for decisions on competing priorities for investment in schemes to improve the trunk road network, including proposals for grade separation at junctions such as the A90 at Laurencekirk."—[Official Report, Written Answers, 29 September 2005; S2O-7713.]

Mike Rumbles can be assured that we shall do at least as well as that, and we will strive to do better. It will not be difficult.

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Local Government Settlement<br />(Class Size Reductions)

To ask the Scottish Executive how much additional revenue is being allocated under the local government finance settlement for 2008-09 to support the reduction in class sizes to 18 in primary 1 to primary 3. (S3O-1744)

We have signed an historic concordat with the Convention of Scottish Local Authorities that will enable year-on-year progress in reducing primary 1 to primary 3 class sizes to a maximum of 18. Local government will receive £34.8 billion over three years in overall financial support, which is an increase of £1.4 billion. Moreover, if local authorities sign single outcome agreements, ring-fenced funding streams will be reduced and councils will be able to redeploy all efficiency savings. However, the Government does not believe in dictating to local government. It will be the responsibility of each local authority to allocate the total financial resources that are available to it on the basis of local needs and priorities, and the jointly agreed set of national and local priorities, including class size reduction.

I am aware that the education ministers discussed with the cabinet secretary ahead of the budget how much the class size reduction would cost. Will the cabinet secretary confirm that, in August this year, ahead of the budget, ministers collectively knew that the target could not be met by 2011? Will he write to me to indicate when ministers first knew that the money and resources would not be available to deliver the measure by 2011?

Like many members, Mr Henry needs to adjust to the new relationship between national and local government in Scotland today. As a Government minister, it is not my business to dictate how local authorities should go about their business on a variety of different issues. I try to ensure that we agree shared priorities to improve the quality of life of individuals in Scotland. That is what is important about the class size reduction policy, and why I am delighted that it features so centrally in the concordat that we signed with COSLA.

All I can say to Mr Henry about the spending review process is that the Government undertook a colossal amount of work during the summer to ensure that we were adequately prepared to put a strong and ambitious budget programme to Parliament in November. The Government looks forward to further parliamentary consideration of its contents.

I have a simple question for the cabinet secretary. How many new classrooms will be required to meet the pledge?

That will vary from local authority to local authority, and it will depend upon the way in which the policy is implemented locally. It is appropriate that local authorities and individual schools should be able to work together within the framework set out by the Government to deliver our commitment in all our communities. I look forward to seeing the educational benefits that will arise from the investment.

Will the cabinet secretary clarify his response to my colleague Hugh Henry's question by confirming whether he will write with the information that was requested? Is the cabinet secretary aware that the documentation that COSLA and local government representatives have produced following the concordat shows a zero increase in the class size line? Does that cause the cabinet secretary any concern?

I do not intend to write to Mr Henry, because there are no issues that I need to follow up from the answer that I have just given him.

On Ken Macintosh's other point, in the settlement and the concordat arrangement, local authorities have been given formidable flexibility to design services that suit their localities. It is not the Government's business to set out prescriptively exactly how many pounds will be spent on particular services locally—although that was the business of the previous Government. There is a barrel load of evidence that that was an inefficient way to design public services. The present Government will not preside over inefficient public services, unlike our predecessors.

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Local Government Settlement and Concordat (Aberdeen)

To ask the Scottish Executive what the impact of the recent local government settlement and concordat will be on Aberdeen. (S3O-1684)

The local government finance settlement that I announced the other day will deliver a new and more productive relationship with local government, along with record levels of investment that will benefit all people living and working in Scotland, including those in the city of Aberdeen. The total funding to Aberdeen City Council is £1.15 billion for the three-year period. In that period, the year-on-year increases in core revenue funding to the council will amount to 11.9 per cent.

I welcome the significant increase in funding for the city of Aberdeen, which is unlike the situation under the previous regime. How and when does the cabinet secretary plan to review the local government funding formula?

I am pleased that Mr Adam welcomes the funding settlement for the city of Aberdeen. I look forward to seeing the funding being deployed sensibly by the partnership in the city between the Scottish National Party and the Liberal Democrats. No wonder Mr Macdonald and Mr Baker are feeling left out of the party as a consequence of that partnership—and no wonder they have been left out, given Labour's leadership of Aberdeen City Council over the years. I am delighted that work is now being done by the joint administration in the city and I am glad that the funding settlement is addressing local needs.

We will continue to have dialogue with local authorities and the Convention of Scottish Local Authorities on the funding formula for local authorities. We will keep the issue under consideration.

I am sure that Mr Macdonald and I are happy to be left out of that rather-less-than-cosy partnership. As the settlement for Aberdeen City Council is generous, the cabinet secretary will, I presume, believe that there is no need for the council to proceed with plans to remove home care services from those vulnerable pensioners and other adults whom the council assesses as being low or medium priority.

I am sure that the people of Aberdeen are relieved that Mr Baker and Mr Macdonald are out of the leadership of Aberdeen City Council as much as Mr Baker is relieved not to be in it. It shows where aspirations are in the Labour Party when its members want to be out of leadership.

Aberdeen City Council has decisions to take on the design of public services. I am absolutely confident that the arrangements that the Government has put in place to relax ring fencing, to work towards the delivery of outcome agreements and to encourage collaboration between providers at local level to provide integrated services—which undoubtedly will have an effect on those who use home care services—will guarantee effective service provision for vulnerable people in the city of Aberdeen. I look forward to monitoring progress as we develop the single outcome agreement to cover those issues.

As Lewis Macdonald has been named, it is right to call him.

Given the temporary role of the cabinet secretary's party in the administration in the city of Aberdeen, will he kindly tell us whether he anticipates that that role will result in the creation of new classrooms in primary schools—to return to Gavin Brown's question—or is it more likely to result in the closure of primary schools?

Issues to do with the design of classrooms might have absorbed Mr Macdonald when he was a minister, but I think that local people in local authorities are in a much better position to take ownership of the design of public services and of our schools. Mr Macdonald might have spent his ministerial life designing the classrooms of Scotland, but this Government is determined to leave those matters to the people who know what to do at local level. The Government will take the strategic decisions that will provide the leadership for which Scotland has been crying out for such a long time. Thank goodness that it has arrived.

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Single Outcome Agreements

To ask the Scottish Executive when it plans to publish in full the outcome agreements with local authorities. (S3O-1765)

The initial set of single outcome agreements is expected to be in place across all councils by April 2008. Subject to agreement between the Scottish Government and local authorities, I expect all agreements to be made publicly available once they have been agreed with councils.

As set out in the concordat with local government, a group has been established to oversee the process of moving towards the implementation of single outcome agreements. The group, which includes representation from COSLA and the Society of Local Authority Chief Executives and Senior Managers, is currently agreeing a plan and timetable for the development and implementation of the agreements.

I thank the cabinet secretary for his reply, but is he aware that, at the latest count, the number of delayed discharges in Fife has risen fourfold to 140, which far exceeds the usual annual fluctuation? How does he see his concordat stopping the current disgraceful situation, whereby a baby with complex needs is left in hospital for months after that is medically necessary; an adult is unable to move into an adapted house that is left empty; and another adult dies in hospital while waiting for a care package that would have allowed him to die at home? Those are just three of the 140 people who have been left in hospital by a Scottish National Party-Liberal council and that is before the council tax freeze. How will the cabinet secretary's concordat ensure that his Government's target—I am not talking about a local authority target—of zero delayed discharges by March 2008 and thereafter is adhered to? Will the concordat outcome agreements be just warm words—a hope and a prayer—or will they have teeth and be able to protect the most vulnerable people, such as the 140 people who have been hospitalised unnecessarily in Fife?

I point out to Dr Simpson that, this year, local authorities are working under the parameters of the financial allocations that were made by the most recent Administration, of which Dr Simpson could be accused of being a supporter, in the loosest possible sense.

Local authorities are wrestling with difficult issues. The single outcome agreements and the move to relax ring fencing are all about giving local authorities the ability to work collaboratively and co-operatively with other agencies to guarantee that we tackle problems such as delayed discharge. The single outcome agreements and the Government's priorities will structure that approach. I hope that we can all accept that all the players in that area of policy, whether they are in local authorities, health boards or the national Government, have the same willingness and determination to improve the quality of life and the quality of accommodation of some of the most vulnerable people in our society. That will be the direction that the Government takes in the discussions about single outcome agreements.

In respect of the resourcing of local authorities, does the cabinet secretary agree that the continuing uncertainty over regeneration funding is causing significant problems for some of Scotland's most deprived communities, and that that uncertainty has only been heightened by the Government's decision not to announce individual allocations from the fairer Scotland fund to community planning partnerships last Thursday? With that in mind, can he tell me why the announcement has been delayed? When will he release that information, so that regeneration-funded projects can obtain some idea of what their future holds?

Not for the first time, Mr Butler raises a serious issue. I assure him that the allocations from the fairer Scotland fund will be made very soon. I hope that the wider question of funding for a variety of different projects has been assisted by the fact that, in announcing the local government funding settlement last week, the Government declared that a greater proportion of the resources will be allocated through local authorities earlier in the year than would normally have been the case. Traditionally, there has been a local government allocation of aggregate external finance in December and subsequent tranches of money are announced later on. We have announced a greater proportion of resources in December than would have been the case in previous years. However, I assure Mr Butler that the allocations from the fairer Scotland fund will be announced shortly. I appreciate that clarity is required for regeneration funding.

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Council Tax Freeze

To ask the Scottish Government whether everyone who currently pays council tax will benefit from the council tax freeze. (S3O-1701)

I confirm that everyone paying council tax will be better off as a result of the council tax freeze.

I thank the cabinet secretary for that short and sweet answer. Is he aware of an article in the Milngavie and Bearsden Herald a week or so ago that claimed that some people on a low income will be out of pocket when the council tax is frozen? Will he assure the public that that is patently untrue and that Opposition MSPs are simply out to maliciously misinform and muddle on an excellent proposition?

I may have a reputation for delivering short and sweet answers to Parliament—I suspect that on occasion the Presiding Officer may disagree with that assessment—but I assure Mr Paterson that muddle is something very much associated with the Opposition on many, many questions. I am not a reader of the Milngavie and Bearsden Herald—I am more of a Blairgowrie Advertiser man these days—but I am sure that the press cuttings are winging their way to me. I assure Mr Paterson that people on low incomes who are paying the council tax will benefit from the council tax freeze, which is why it is such an immensely popular proposition.

While reading those press cuttings, the minister may care to read Professor Bell's report on the matter, in which he addresses the question of who gains and loses from the council tax freeze. He points out some interesting facts about that regressive measure.

First, does the cabinet secretary know whether he is legally entitled to hold back resources from a council that takes a democratic decision to raise its council tax and therefore cannot get access to the council tax freeze fund? Secondly, now that he has announced the funding for South Lanarkshire Council, he should be aware—I have raised it with him before—that, at the previous two elections, the Labour-led council went to the community with a manifesto that said, "We will charge 1 per cent over the rate of inflation in order to fund our primary school building programme." What measures will he take to ensure that that primary school building programme is not lost as a result of the council tax freeze?

From his long experience as a minister, Mr Kerr will be familiar with the practice of ministers to neither confirm nor deny whether they have obtained legal advice on any issue. That is an approach that I intend to maintain in this answer.

I am quite within my rights as a minister to make an order to Parliament setting out how much money is to be allocated to local authorities, which is exactly what I will do in February. I hope that Opposition members will support us in ensuring that local authorities are able to access resources from the Scottish Government. Obviously, I am perfectly able to make a supplementary order to give out even more money, which is what I will do once the local authorities have decided whether they intend to freeze the council tax. As I have said on a number of occasions in Parliament, I do not intend to specify to local authorities the individual decisions that they are to take, although I encourage local authorities to participate actively in the structure of the concordat that we have put in place, which offers all local authorities, including South Lanarkshire, a splendid opportunity to be ever more influential in improving the quality of life of the citizens of Scotland.

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Local Authorities (Finance and Sustainable Growth)

To ask the Scottish Executive what representations it has made to local authorities about finance and sustainable growth issues since May 2007. (S3O-1707)

Under the joint concordat, I now have regular meetings with the Convention of Scottish Local Authorities. I have also separately met about 22 local authorities since I became a minister in May. Those meetings have covered a range of issues to do with my finance and sustainable growth portfolio.

On his tour of local authorities in the summer, the cabinet secretary visited East Renfrewshire Council and gave welcome assurances to the council and local residents that no changes to the council's boundaries would be proposed during this parliamentary session. That laid to rest the undeniably pernicious threat that was previously hanging over East Renfrewshire.

Did the cabinet secretary discuss with East Renfrewshire Council its concern that the current funding formula has consistently made assumptions about local population and other factors that have proved to be wrong? In the past four years, that has led to the council being short-changed by £16 million, which has led to a higher council tax burden on all residents—including many working families with children, of whom there are a greater proportion in East Renfrewshire than in other local authorities. The freeze is welcome but, given that a local income tax would be an unmitigated disaster for such hard-pressed families, can he give any comfort to the council on its desire to see a permanent solution through a fair settlement that is based on accurate information? [Applause.]

I am glad that Alex Johnstone is such an enthusiastic supporter of the case.

The funding formula that we utilise and many of the issues with which we wrestle in relation to the distribution of resources have been the subject of a great deal of discussion. When I became a minister, I inherited a report from the three-year settlement group—a group that was established by the previous Administration and which involves local authority representation—which sets out the different suggestions for ways in which the funding formula could be improved.

At the core of the funding formula is an overwhelming range of indicators that are influenced by population movements. The accuracy of those population estimates gets stronger year by year, and year-on-year changes are reflected into the bargain. I therefore think that adequate account of such issues is taken in the funding formula. Nevertheless, notwithstanding my earlier answer to Brian Adam, there are areas in relation to which we will continue to revisit the contents of the funding formula to ensure that they remain appropriate for local needs.

I am glad that Mr Carlaw recognises the council tax freeze as a measure that will support individuals who were punished by the 60 per cent increase in council tax under the previous Administration. I am sure that many of those individuals will be relieved to see the twin initiatives of the present Administration to freeze council tax and to deliver a fairer local taxation system that is based on income and the ability to pay. I look forward to enthusiastic support from my Liberal Democrat friends when I bring that proposal to Parliament.

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Economic Strategy and Budget <br />(Gender Equality)

To ask the Scottish Executive how the overall economic strategy and spending plans detailed in "Scottish Budget Spending Review 2007" provide for the promotion of gender equality. (S3O-1766)

Together, "The Government Economic Strategy" and "Scottish Budget Spending Review 2007" set out the approach and spending priorities to deliver the Government's overarching purpose of increasing sustainable economic growth. In both documents, we have made it clear that achieving increasing sustainable economic growth must go hand in hand with greater equality. We have set stretching national targets to make that happen.

The cabinet secretary will be aware of the gender pay gap and of recent evidence that that gap is widening. Can he provide any reasons for that and can he identify any specific actions that the Scottish Government will take to address it? What assurances can he give that measures that are intended to promote sustainable economic growth will include funding support for enhanced child care provision? What actions within the new proposals for skills development are specifically targeted at tackling gender-based occupational segregation?

As part of the economic strategy, we have established a national solidarity target to increase the overall income that is earned by the three lowest income deciles, as a group, by 2017. That will require a concerted effort by the Government to improve the income levels of women in Scotland. In establishing that framework of ambition, we have to translate that ambition into the practical realities of policy interventions to make these things possible. I assure the member that the inclusion of that target in the economic strategy will give a focus to the Government's decisions on this matter.

I suspect that the gender pay gap is widening because many women are involved in part-time, low-wage employment. We must ensure that we have higher-quality, better-remunerated jobs in our society and that through the skills and education agendas we equip individuals to access employment. Tackling economic inactivity is one of the major themes at the heart of the economic strategy. I suspect that one of the fundamental reasons why many women are not economically active or are unable to access the labour market is the difficulty in accessing child care. The Government is taking steps through the concordat to expand nursery provision, and I look forward to introducing other measures in that respect.

Question 11. Jamie Stone.

The silence speaks for itself. Mr Stone is not in the chamber.

Oh!

I strongly disapprove of the practice of members lodging questions and not being in the chamber to ask them. [Applause.]

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Local Government (Redundancies)

I am sure that the chamber is delighted to learn that I am still here, Presiding Officer.

To ask the Scottish Executive how many redundancies there will be in local government as a result of the planned reductions in bureaucracy. (S3O-1728)

For once in my life, I was praying for Jamie Stone to be present so that I could have a little respite.

Notwithstanding that irreverence, staffing levels are a matter for individual local authorities. I am sure that each authority will wish to ensure that it delivers local services in the most efficient and effective way.

Given the understandable concern about what the efficiency drive and the cuts in bureaucracy will mean with regard to job cuts and reductions in the number of posts, the Scottish Government must surely have a view on the matter. What negotiations will take place with the trade unions, local authorities and agencies that might be affected by such proposals, including in the north-east the Scottish Fisheries Protection Agency and Fisheries Research Services, which are also looking at potential mergers?

I reassure Mr Baker that other ministers and I are having a lot of discussions with local authorities and trade unions about levels of employment in the public sector. Indeed, the First Minister recently met the Scottish Trades Union Congress. That dialogue with trade unions is very important to the Government. Clearly, we need appropriate levels of employment in the public sector to deliver the public services that we think are appropriate. Although what people do might change as a result of the Government's determination to reduce bureaucracy, I am happy to reinforce in Parliament our commitment that there will be no compulsory redundancies under this Administration.

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Social Return on Investment

To ask the Scottish Executive whether it is aware of the social return on investment tool successfully piloted by the New Economics Foundation and Social Economy Scotland. (S3O-1706)

The Scottish Government is a partner in Social Economy Scotland and has engaged directly in the social return on investment pilot. The SROI tool offers a potential mechanism for funders to recognise the monetary value of the social returns on their investments. To support this, we are currently piloting predictive SROI.

Does the Scottish Government agree that using the SROI tool would help to advance at least one of the four strategic aims of the Scottish Government's social enterprise strategy, namely to raise the profile of and improve the value of social enterprise? If so, will the Government encourage the tool's wider use?

Most certainly. The Government is determined to ensure that we have a more significant level of social economy activity in Scotland. One of the great privileges that I have had over the past few months is the opportunity to meet a whole range of social enterprises—indeed, Mr Mather has done likewise. Such work provides a tremendous platform for ensuring that the Government can realise its objectives and aims. SROI undoubtedly plays a part in that process and we look forward to continuing our support for it.