Meeting of the Parliament

Meeting date: Thursday, March 21, 2013

Official Report 1045KB pdf

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General Question Time

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European Arrest Warrant (United Kingdom Opt-out)

1. To ask the Scottish Government whether the United Kingdom Government has indicated by what mechanism criminals will be repatriated to Scotland if the UK opts out of the European arrest warrant. (S4O-01945)

Scottish ministers, the Lord Advocate, Scottish police and legal professionals as well as other devolved Administrations and justice agencies have all raised clear concerns about the UK coalition Government’s handling of the opt-out decision on vital European Union justice and police co-operation measures. UK ministers have indicated that they are minded to opt out of those measures, but have not indicated which measures they might opt back into or what alternative arrangements, if any, will be available to bring cross-border criminals to justice. We have highlighted to UK ministers specific examples of cases in Scotland where the European arrest warrant has ensured that people accused of serious crimes, including murder, who had fled abroad, were brought to justice swiftly and efficiently, and we oppose strongly any decision by UK ministers that puts those arrangements at risk.

Given that I wrote to Theresa May last November and have so far received no reply, I ask the Scottish Government what discussions have been had with the secretary of state on Westminster’s proposed opt-out. Moreover, what financial or other impacts will such a move have on UK or Scottish taxpayers?

I wrote to UK ministers in April, August and November last year to express our strong interest in the opt-out decision; in November I also raised concern about the lack of prior notification of the Home Secretary’s statement about the opt-out on 15 October.

In January, I met Home Office minister James Brokenshire to further emphasise our concerns, and officials have requested sight of any analysis that UK officials have prepared about the opt-out’s impact. It is not possible to know what its practical and financial implications might be until UK ministers confirm which measures, if any, they might opt back into and what alternative bilateral arrangements they plan to put in place following an opt-out.

I hope that the issue causes as much concern right across the parliamentary chamber as it is causing across the judiciary, those involved in prosecution, those involved in defence and others involved in law enforcement and the judicial system in Scotland.

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Independence (Income Tax Rates)

2. To ask the Scottish Government what the rates of income tax would be in an independent Scotland. (S4O-01946)

The Scottish Government will reach a view on the appropriate level for the rate of income tax when the time comes to set the rate.

On the day we finally get an answer about when the referendum will take place, I thought that we might have got a more detailed response than that about income tax. The Scottish National Party wants a reduction in corporation tax, and John Swinney has previously said that taxation will not rise, whereas Nicola Sturgeon has said that taxes could go up to pay for more benefits. Both cannot be right—and neither can Joan McAlpine when she says that she wants Scandinavian tax levels. Will the cabinet secretary tell us which it is? Will income tax go up or down in an independent Scotland?

I find it very interesting that Mr Bibby is now planning on the basis that an independent Scotland will be required to set rates of income tax. I am very encouraged by his admission that it is all over for the bitter together campaign of which he has been a part; it is certainly a very encouraging start to the discussion. [Interruption.]

Order.

Of course, Mr Bibby should take into account the fact that Scotland’s public finances are stronger relative to the rest of the United Kingdom and that we contribute more to the UK than we get in return. On that basis, I think that people in Scotland can have real confidence that an independent Scotland would be able to manage its tax affairs and public finances much more effectively than any UK Government has ever been able to.

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Bedroom Tax (Help for Tenants and Social Landlords)

3. To ask the Scottish Government what steps it has taken to help tenants and social landlords affected by the so-called bedroom tax. (S4O-01947)

The Scottish Government is taking all reasonable action that it can. We have written to the United Kingdom Government on numerous occasions since December 2010 to protest at the imposition of a measure that is neither supported nor warranted in Scotland. I put our objections in the strongest terms to Lord Freud when we met only two weeks ago.

In January, we announced a £5.4 million package of funding to help front-line advice services as they support people, individuals and families who face the reality of the cuts. We will also make £2.5 million available for social landlords to help to ensure that their tenants have the advice and support that they need. We are also providing a £590,000 training, guidance and support package to boost the capacity of social landlords and homelessness prevention services to deal with housing benefit reforms.

I set all that out in a letter that I recently sent to social landlords. In that letter, I encouraged landlords to follow the example of Dundee City Council, which has agreed to use all legitimate means to collect rent due, except eviction, for people who are in rent arrears because of the bedroom tax, after the director of housing has examined individual cases. I also highlighted the flexibility that exists in housing benefit legislation for reclassifying bedrooms.

Although the Scottish Government is providing some funding to advice agencies to help tenants who are affected by the bedroom tax and universal credit, other measures are available to it that could also be of help.

In the short term, it could provide a separate fund to councils to top up the discretionary housing payment so that they can help tenants to bridge the gap caused by the bedroom tax. It could also fund credit unions to advertise the benefits of budget accounts—or jam-jar accounts, as they have become known—and boost their uptake or to provide incentives to help people open such accounts.

In the longer term, given the low levels of housing stock that are available, will the Scottish Government take the sensible step of increasing the funds that are available for the construction of social housing as a more permanent solution to the problems that social landlords and tenants face?

The Scottish Government opposes the bedroom tax and is arguing to have it scrapped. That is the only solution to the bedroom tax, and Margaret McDougall knows that well.

Perhaps Margaret McDougall should know that discretionary housing payments are a social security matter and therefore reserved. Also, there is a limit to discretionary housing payments so, even if councils topped them up to the maximum, Scotland would still be £40 million short. That is not the solution.

The solution is to stand shoulder to shoulder with the Scottish Government in taking to the UK Government the case for scrapping the bedroom tax and, if that cannot happen, to fight for more discretionary housing payments. Alternatively, Margaret McDougall should join us and vote yes in the referendum.

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Bedroom Tax (Impact on Social Landlords)

4. To ask the Scottish Government what recent contact it has had with social landlords about the impact of the so-called bedroom tax. (S4O-01948)

As I just stated, I wrote to all social landlords last weekend to remind them of the action that the Scottish Government is taking in respect of the bedroom tax and wider welfare reforms, and to highlight actions that they may wish to consider to help tenants who are due to be affected.

The Scottish Government and Convention of Scottish Local Authorities joint housing benefit reform group met on Friday. Members include a range of landlord and, indeed, tenant representatives. We established the group in autumn 2010 when the United Kingdom Government first announced its welfare reforms. The group has met 14 times since then, sharing information and discussing ideas on how to reduce the impact of the welfare reforms.

I call Patrick Harvie.

Do I get a supplementary question?

Sorry—I call Annabelle Ewing.

Thank you, Presiding Officer.

It is clear that the tax emanates from the UK Government—the Tory-Liberal coalition Government in London. It is a pernicious tax, because it will hit some of the most vulnerable members of our society. Will the minister clarify the position with respect to kinship carer tenants?

I agree with the member that the bedroom tax is one of the most pernicious legislative measures that the UK Government has ever introduced, but I am pleased to be able to inform her that, following concerted pressure from the Scottish Government, the Department for Work and Pensions has now confirmed that formal kinship carers will be exempted from the tax. That is a welcome concession by the UK Government, but I will continue to make the case for each and every person who looks set to be penalised until the bedroom tax is scrapped altogether.

Patrick Harvie—this time.

To a certain extent, I am disappointed by the minister’s responses on the issue so far. Some councils have decided that they will disregard the proportion of arrears that arise because of the bedroom tax. Does the Scottish Government not accept that it can support them financially to do that? That is not a reserved issue, and the Scottish Government has a responsibility to act.

The Scottish Government is doing all that it can within its devolved powers to help those who will suffer as a result of the bedroom tax. We have pointed out the limitations of discretionary housing payments and how assistance can be provided with that. We have also encouraged local authorities and landlords to look at how they can manage sympathetically the rent arrears that may accrue because of the bedroom tax, but I think that Patrick Harvie should join me and the whole of civic Scotland in taking the case to Westminster, where the problem lies.

I hope that the minister can do something to top up discretionary housing benefit, but an issue that I raised in last week’s early years debate was the case of an absent parent who looks after children at, say, the weekend. They, too, will be caught by the bedroom tax. Will it be possible to take some action, in the interests of family policy, to deal with that situation?

We are looking at all situations. The concern that Malcolm Chisholm raises is a legitimate one. The situation that he identifies is just another example of circumstances in which families will be affected by the bedroom tax. We are addressing issues as we find them, as we have done with kinship carers. We have also had concessions on foster parents and veterans. We will continue to look to assist anyone who is affected by the bedroom tax.

I would have liked it if the Labour Party could have stood shoulder to shoulder with the whole chamber against Westminster on the bedroom tax. Labour has picked the wrong target this time. The target as far as the bedroom tax is concerned is the UK coalition Government, not the Scottish Government.

I advise the minister that Scottish Borders Council has told me that it will receive £170,000 for the discretionary fund. It is providing a top-up of £60,000 because, as we know, the fund is capped, yet that will not meet even half the need. Does she agree that there is no way in which the issue can be resolved without independence?

Yes, I agree with Christine Grahame on that. The UK Government seems unconcerned about the matter.

As I said, I would have thought that all parties in the Parliament would have joined together in opposing the bedroom tax. At the Liberal Democrats’ conference at the weekend, we had the absolutely nonsensical situation whereby their members in Scotland all opposed the bedroom tax and the only Liberal Democrats who seemed to support it were those who were elected to represent the people. I find that position sad.

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Air Services (Skye)

5. To ask the Scottish Government what plans it has for the future of air services from Skye. (S4O-01949)

The Scottish Government has no plans for future air services from Skye.

The minister will be well aware of the “Skye Air Services Feasibility Study”, which predicts an “unconstrained” demand for air services from Skye to Glasgow and Edinburgh of more than 21,000 passengers per year. Does the minister share my enthusiasm for the boost that such services could provide to the business, domestic and tourism markets? It could provide a future in which the sky is the limit for Skye.

I accept that the study to which David Stewart refers raises a number of interesting questions. Previous studies have given figures of up to £48 million for the cost of upgrading the airstrip.

It is true to say that the study mentions the fact that such services might be included within the air discount scheme, but that would depend on much higher levels of demand than the study shows. It would also have the effect of substantially reducing the subsidy to the service.

We will consider the matter, if we are approached by Highland Council. That has not yet happened. However, we must recognise that any discussion would take place against the current background of financial constraint and an understanding that the Scottish Government is not prepared to take on new funding commitments at this time.

The minister has previously told me that, as he just said, he is happy to meet Highland Council to discuss the fly Skye project, which would boost the Skye and Lochalsh economy by about £6 million a year. Will he give me an update on where he is with that? I am slightly disappointed that the council has not been in touch with him so far.

I know of no approach from Highland Council, although I will meet the council’s leader soon. I will check whether that is still the case or whether something has been received in recent days.

As I said, I am more than happy to discuss the issues but, to take the project forward, the council will be required to find the subsidy level that we require to sustain such a service. In the meantime, I am more than happy to discuss the subject.

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Engineering

6. To ask the Scottish Government what it is doing to promote engineering as a career choice for men and women. (S4O-01950)

The Scottish Government firmly believes that science and engineering are key to achieving the overall purpose of creating a more successful Scotland. To that end, we provided £1.9 million for the academic year 2012-13 to support an additional 300 funded university places, which will increase to 1,200 additional places by 2015-16; Skills Development Scotland and Scottish Enterprise are developing an engineering skills action plan, which will be prepared by mid-July 2013; and we have provided £250,000 to establish careerwise, which is targeted at attracting more women to the sector. In addition, we have provided £25,000 to the Engineering Development Trust this year to support its Go4SET programme for Scottish secondary schools.

I thank the minister for his comprehensive answer. He will be aware of the successful science, technology, engineering and mathematics programme and the Scottish space school programme that the University of Strathclyde runs to encourage school leavers into engineering. However, companies in Ayrshire—and, I believe, across Scotland—are being held back by a lack of availability of engineering graduates. As Professor Matthew Harrison of the Royal Academy of Engineering recently noted,

“Engineering firms are crying out for engineers. They can’t get the people they need.”

Although I accept the minister’s reply, can we expect, and can he encourage, a renewed emphasis on delivering more engineering courses at higher education and further education levels to help our economy and provide high-value jobs and careers for our young people?

I certainly agree with the member about the need to promote engineering as a career. I outlined some steps that have been taken on that. I also made the point that we have increased the number of places that are available for people to study such subjects.

An important point is that, if we are to exploit Scotland’s potential as an engineering nation, we must encourage among women the option of engineering as a career. A great deal of effort is made to that end in schools.

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Sustainable and Renewable Energy (Manufacturing)

7. To ask the Scottish Government how it will strengthen the shift towards sustainable and renewable energy use in the manufacturing sector. (S4O-01951)

We place great importance on the use of sustainable and renewable energy in Scotland, from manufacturing across a range of sectors and activities. The shift to renewable energy will also result in lower energy bills for the manufacturing sector than would come from continued reliance on fossil fuels. From 1 April, the new resource efficient Scotland programme will provide tailored support for manufacturing and other business sectors to maximise the benefits of resource efficiency.

Does the minister agree that clear benchmarks are essential to measuring success in transitioning to energy efficiency? Has the Scottish Government considered the type of measurements that should be used to track positive shifts towards clean energy?

Yes, I do, and yes, we have. Just yesterday, I presented certificates to about 40 businesses and public sector organisations that have massively cut their energy bills and reduced emissions. One of them—the Glenuig hotel—cut its energy bills by a massive 85 per cent. Renewable energy use can be of immense value not only in protecting the environment but in cutting business costs at a very difficult time.

Very briefly, Jamie McGrigor.

What can the Scottish Government do to ensure that turbines for hydro and wind power are manufactured in Scotland instead of imported?

Briefly, minister.

We will continue to promote the pro-renewable energy policies that the Government supports—with faltering and wavering support from Jamie McGrigor’s party, the Conservative Party.

I am delighted that Gaia-Wind, which is located in Glasgow, is a world award-winning manufacturer of small turbines. Other turbines are also manufactured in Scotland. With our unequivocal, clear and strong leadership—unmatched by the Conservative Party—we will continue to add to the 11,000 jobs in Scotland that are supported by renewables.