Welfare Benefits Changes (Impact on Poverty)
To ask the Scottish Government what assessment it has made of the recent comments by the Secretary of State for Work and Pensions regarding further changes to welfare benefits and the impact that these changes would have on poverty in Scotland. (S4O-03481)
On 1 July 2014, the Scottish Government published statistics that show that the reduction in poverty in Scotland that has been seen in recent years is now being reversed. One million people in Scotland are now living in relative poverty after housing costs, including more than 200,000 children. That is simply unacceptable in a country as wealthy as Scotland.
Separate analysis shows that Scotland could potentially see its welfare budget reduced by around £6 billion by 2015-16. Further, estimates suggest up to 100,000 more children could be living in poverty by 2020 if we continue with Westminster policies.
Taken together, those statistics suggest that the unacceptable increase in the number of children living in poverty that was revealed in our most recent statistics could be just the tip of the iceberg—and that is before the Secretary of State for Work and Pensions makes any further changes to the current benefit arrangements.
In his speech last week, Iain Duncan Smith said that his Government sought to focus on “independence, not dependence”. Does the minister agree that, for the more than 100,000 disabled Scots who stand to lose about £1,120 from their income, the performance of Iain Duncan Smith’s Government will actually negatively impact on their independence?
Yes. The figure is agreed and is set out in the recently published Scottish Government analysis paper, “Financial Impacts of Welfare Reform on Disabled People”. The Scottish Government is doing all that it can to mitigate the harmful effects of Westminster welfare reforms but, unfortunately, the majority of the cuts are still to come and will hit the vulnerable hard.
With a yes vote on 18 September, we can do much more than mitigate. We can halt the roll-out of universal credit and personal independence payments, and we can end the work capability assessment and replace it with a system that is fit for purpose. Further, in an independent Scotland, we will ensure that those with long-term disabilities are treated with dignity and receive a decent level of support.
Major Trunk Road Works (Consultation of Cyclists)
To ask the Scottish Government what methods of consultation it uses to gauge the views of cyclists regarding major trunk road works. (S4O-03482)
The views of cycling groups are sought throughout the development of our trunk road projects by correspondence and through cycling workshops, exhibitions as part of scheme proposals, web-based materials and statutory materials that are published at draft and made-order stages.
The minister will be aware of some of the challenges that existed for cyclists in relation to the upgrading of the Kessock bridge and the frustrations that they had regarding some expectations that were built up.
The Scottish Government rightly promotes active travel. Would the minister agree to meet me and the Highland cycle campaign to discuss ways of ensuring more positive engagement in the future?
I am more than happy to do that. We have been actively seeking to establish a non-motorised user forum in order to provide the opportunity for representatives of groups, possibly including the group that John Finnie refers to, to provide them with an opportunity to consider issues of relevance to the A9 dualling programme. Again, I am more than happy to meet the member and the groups that he has mentioned.
The minister will be aware that, on 12 September, 800 cyclists will be travelling on the A82 through Fort William and onwards to Fort Augustus as part of the Deloitte tour. As the minister knows, the A82 is subject to major road works. The A82 partnership is concerned that normal traffic on the road will be brought to a standstill, with an unnecessary negative impact on the economy. Can the minister raise the issue with Transport Scotland and Police Scotland, and inject some common sense into the proposal by rerouting it?
Of course I will raise those concerns. They have been raised with me already, and I am involved in discussions with Transport Scotland. This is the initiative of the organisers, who have come forward with the proposal, and we are seeking to accommodate it as best we can. However, as I said to the member, we will happily look at any concerns that have been expressed about possible congestion.
Edinburgh Royal Infirmary (Annual Service Charge)
To ask the Scottish Government whether it will confirm the latest total annual service charge payable by NHS Lothian to Consort Healthcare for the most recent financial year in relation to the Edinburgh royal infirmary. (S4O-03483)
The total annual service charge payable to Consort Healthcare in respect of the Edinburgh royal infirmary for 2013-14 was £47 million.
As an Edinburgh MSP, I welcome the stricter management of the contract of the Edinburgh royal infirmary, which is delivering annual savings of £1.3 million. However, should Consort Healthcare not restore to the national health service the resources for patient care that have been lost over the years in which the contract has operated and that were lost before the savings were identified? Will the minister now instruct NHS Lothian to carry out a full financial health check of the contract to identify what further resources are due to the hospital and the health service?
NHS Lothian is in the process of establishing an expert review group that will look at the contract in great detail. Part of the review group’s work will be to conduct a health check of the contract’s performance—both current and retrospective. That work is due to begin shortly.
In addition, a new private finance initiative and public-private partnership specialist support team has been established within Health Facilities Scotland. It will be responsible for carrying out detailed commercial reviews of all NHS Scotland PFI contracts, including the contract for the Edinburgh royal infirmary.
Scottish Economy
To ask the Scottish Government what action it is taking to strengthen and grow the economy. (S4O-03484)
The Scottish economy is continuing to strengthen and grow. Scottish gross domestic product grew by 2.6 per cent in the year to quarter 1 of 2014 and has passed its pre-recession peak. As the chief economist’s recent assessment of the state of the economy points out, the underlying data and trends indicate that 2014 will be Scotland’s strongest year of growth since 2007. Furthermore, last week’s labour market figures show that Scottish employment has increased to the highest level on record.
The Scottish Government is continuing to take action to support sustainable economic growth in Scotland. We are investing in infrastructure to support growth, building a supportive business environment, investing in innovation and helping our young people to obtain the skills that they need to succeed in the labour market.
I welcome the recent publication of the document “A Jobs Plan for an Independent Scotland”, which looks at the long-term aspects of strengthening our economy and providing opportunities in the labour market. Does the cabinet secretary agree that, to take full control of strengthening our economy for the future, we need the full fiscal powers and tax revenue powers of an independent Scotland?
As I said in my previous answer to Dennis Robertson, we have taken a number of measures within our existing powers to deliver as much impetus to the Scottish economy as we possibly can. However, there are decisions relating to the economy that are outwith our control. The opportunity of independence—highlighted by the contents of “A Jobs Plan for an Independent Scotland”—is a range of policy interventions that we could make that would strengthen and support the development of the Scottish economy. We will be able to undertake those measures only if we have the full range of powers that will be on offer to the people of Scotland in the referendum on 18 September.
Dumfries and Galloway Council (Meetings)
To ask the Scottish Government when it last met Dumfries and Galloway Council and what matters were discussed. (S4O-03485)
Ministers and officials regularly meet representatives of all Scottish local authorities, including Dumfries and Galloway Council, to discuss a wide range of issues as part of our commitment to working in partnership with local government to improve outcomes for the people of Scotland.
The minister will be aware that the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013 gave local authorities the right to charge up to 200 per cent council tax on properties that have been empty for 12 months or more. He may not be aware that, in Dumfries and Galloway, that currently amounts to 926 properties, many of which have been on the market for the entire duration of their vacancy—indeed, 663 of them have been on the market for over 24 months.
Will the minister confirm that the provision in the legislation was not intended to penalise people who are genuinely unable to sell their homes in a stagnant market? Will he also confirm that the legislation gives local authorities the ability to include further categories where exceptional circumstances could allow an exemption to the 200 per cent charge?
Alex Fergusson characterises accurately the intention of the Local Government Finance (Unoccupied Properties etc) (Scotland) Act 2012 and the associated regulations. Therefore, I confirm that the position on both questions is that his was a fair and accurate assessment of what is intended and that those who are genuinely trying to sell their property on the markets should not be punished. I will provide further supporting information in writing if that would assist the member.
North Sea Oil Reserves
To ask the Scottish Government what its response is to recent reports that the North Sea could hold more than £40 billion worth of unforeseen oil reserves. (S4O-03486)
Recent reports illustrate the important role that innovation and new technological solutions can play in achieving significant cost savings for the industry, boosting production and ultimately increasing tax revenue from North Sea oil and gas extraction.
With the powers of independence, the Scottish Government would be able to ensure that North Sea revenues are used to provide long-term benefit to the Scottish people instead of being squandered by Westminster Governments as in the past. We know that Scotland has vast, untapped potential that could be unlocked by applying innovative production systems and world-leading technology.
We all get very excited about new fields such as Bentley, Faroe and Clair ridge, but opportunity also exists in fields that are in production. Does the minister share my view that successful innovative solutions such as enhanced oil recovery techniques are essential in order to maximise recovery and that the adoption of such solutions will lead to increasing and maximising the tax yield for the people of Scotland?
Yes, I do. In addition to fiscal stability and predictability, that is something that the industry has never had under the United Kingdom’s stewardship.
As the Wood review highlighted—[Interruption.]
Order.
As Sir Ian Wood, a hugely respected figure in the oil and gas industry highlighted, implementing his report’s recommendations could add £200 billion to the economy. That includes the effective implementation of enhanced oil recovery—EOR—which could secure up to 6 billion barrels of oil in a best-case scenario, something which I discussed at length earlier this week with BP.
I also agree with Sir Ian Wood when in 2012 he advised young people:
“My headline message for the youth of today—get involved. The North Sea oil industry will see you through your lifetime.”
Does the minister acknowledge that, even if all the changes are made that Sir Ian Wood recommends in his report on maximising economic recovery of oil and gas, Sir Ian believes:
“The Scottish Government central prediction of what’s still to come is between 45 per cent and 60 per cent too high.”
Does the minister accept or reject that view?
We have always recognised, as Sir Ian Wood said in his report—he mentioned it six times—that the amount of recoverable oil and gas reserves could be between 12 and 24 billion barrels. It depends entirely on whether the right or the wrong policies are pursued. The truth is—Sir Ian once again records this in his report—that, sadly, the UK’s stewardship of oil and gas over the past 40 years has been characterised by fiscal instability and a lack of predictability. That has happened under the UK; we do not offer that under independence.
Listening to Fergus Ewing’s response, one would have thought that Sir Ian Wood had come out in support of independence, which he has not. When did Sir Ian go from a much-respected oil expert to someone who does not know what he is talking about?
Murdo Fraser has been here long enough to know that one should listen to the first answer before asking a question. The issue is not about personalities. Sir Ian is a hugely respected figure across the world. Just as we respect people on the other benches, we disagree with their prescription for the future of Scotland.
I point out that, just yesterday, Sir Ian confirmed that with the right policies he would expect that between 15 billion and 16 billion barrels should be recoverable over a relatively short period of a couple of decades. That compares with the Office for Budget Responsibility’s prediction of 10 billion barrels. Sir Ian yesterday simply confirmed once again—along with Sir Donald Mackay and many other leading experts—that the OBR’s figures are between 50 and 60 per cent too low and, therefore, increasingly look utterly discredited.
Benefits Reductions (Impact on Disabled People)
To ask the Scottish Government what analysis it has carried out on the cumulative impact of United Kingdom Government reductions in benefits on disabled people in Scotland. (S4O-03487)
Scottish Government analysis published last week found that disabled people in Scotland are likely to experience disproportionate loss of income due to the cumulative effects of welfare reform. Spending on disability benefits in Scotland is expected to be around £310 million lower per year by 2018.
The report also pointed to independent research from the National Institute of Economic and Social Research and Landman Economics. The authors of that work concluded that, due to UK Government welfare reforms, households with a disabled child face an average annual loss of income of around £1,400, while households with disabled adults and disabled children are expected to lose around £1,900 a year.
Following the Labour Party’s absolutely shameful refusal last week to commit to halting the implementation of personal independence payments, what impact does the minister believe that a yes vote would have?
The white paper and our recent report on disabled people recognise that the roll-out of personal independence payments will create hardship for many families with a disabled person in Scotland. “Scotland’s Future: Your Guide to an Independent Scotland” sets out on page 158 a clear commitment to halt the further roll-out of personal independence payments in Scotland, which would allow the first Government of an independent Scotland to implement reforms to the welfare system that meet Scotland’s needs and reflect our priorities. The Labour Party has not matched that commitment, so I absolutely agree that the only way to stop the roll-out is to vote yes on 18 September.
Queensferry Crossing (Consultation Forums)
To ask the Scottish Government whether a review has been carried out on how effective the Queensferry crossing consultation forums have been in dealing with local groups and people. (S4O-03488)
The effectiveness of the consultation forums is kept under regular review and audited to ensure that proper and efficient communication is undertaken with local groups and people through the project’s community communication and stakeholder liaison teams.
Have contractors for the Queensferry crossing improved communications to local residents, particularly in the Echline area of South Queensferry, in the light of complaints from those affected by the major civil engineering works and changes to work schedules, including extra work at weekends?
The Forth crossing constructors have been proactive in providing effective and sustained communications throughout the project. That includes regular neighbourhood notifications for upcoming works, including to the local residents in the Echline area of South Queensferry.
All project work must be, and has been, carried out in accordance with the working hours that are permitted in the code of construction practice. Any complaints received have been thoroughly investigated and, where necessary, the communication of information to residents has been improved. That is the hallmark of the scheme.
I refer the member to the editorial in today’s Scotsman, which says:
“there can be little doubt that the Queensferry Crossing has been remarkably free of financial, practical or contractual difficulties.
It has been a public works project worth celebrating.”
We intend that that should also be true for the local community.
Labour Market Statistics
With a record number of people in work and the unemployment rate at its lowest since early 2009, the latest labour market statistics show a clear and sustained strengthening in the Scottish economy. The fall in youth unemployment over the past year is also welcome.
Does the cabinet secretary agree that, although independence is not a magic wand, with the policy levers available to us through a yes vote there can be transformational plans for childcare and we can get more people in Scotland into work or training?
Through the activities and policies that it has implemented, the Government has ensured that the Scottish economy has been able to recover to pre-recession levels of activity earlier than the rest of the United Kingdom. We want to have the wider range of powers to ensure that we can cement that recovery and ensure that we deliver new and better opportunities for the people of Scotland with the exercise of the full responsibilities of an independent Scotland.
Before we come to First Minister’s questions, members will wish to join me in welcoming to the gallery the Hon Richard Msowoya, speaker of the National Assembly of Malawi. [Applause.]