SCOTTISH EXECUTIVE
General Questions
Oil and Gas Industry
To ask the Scottish Executive what it is doing to support jobs in the oil and gas industry. (S3O-5626)
Scottish Enterprise, through its energy team, and Scottish Development International provide specific business support and development activity and work in partnership with others, including local authorities and the Scottish Government. They offer support in a number of different ways, including supply-chain development and trade missions.
What is the value of the oil and gas sector to the Scottish economy? What further actions are available to the Government to maximise the recovery of oil and gas reserves and to protect supplies and jobs, in addition to full participation in the joint industry-Government body pilot?
That is a question of considerable importance. There are 150,000 direct or indirect jobs in the industry and North Sea revenues for this year are anticipated to be about £13.2 billion, which is £3.3 billion above the 2008 budget forecast of Her Majesty's Treasury.
I support the development of the oil and gas academy and the role that it will play in ensuring that more jobs come through, but I am sure that the minister will recognise that the oil and gas sector faces huge skills issues because of the age profile of the workforce. Does he intend to develop any initiatives to improve the situation? For example, will he consider providing more modern apprenticeships in that sector?
Additional support is being provided through the determined to succeed programme. OPITO will continue to play a significant role. We will ensure that we continue to be involved in such work. The partnership in local schools is designed to excite local youngsters about the possibilities of a career in oil and gas in Scotland.
Will the minister briefly outline what action the Government is taking to continue to lobby the Westminster Government to avoid increases in the tax and regulatory burden on the North Sea? Will he give a commitment that his party, which predicates its long-term economic policy on the resources that are extracted from the North Sea basin, will not increase that burden at any time in the future, which would affect the economy of the north-east and undermine jobs and skills?
I will deal with the second point first. The Government is committed to always being competitive; that is a by-product of our ethos and our principles and can be taken as a given.
Business (Government Support)
To ask the Scottish Executive how many businesses have received Government support for loans since September 2008. (S3O-5612)
The main form of Government loan funding available to businesses in Scotland was the small firms loan guarantee scheme, which was administered by the United Kingdom Government but which received active encouragement through Scottish Enterprise and the business gateway. Information on the number of businesses that have received such support since September 2008 is a matter for the Department for Business, Enterprise and Regulatory Reform. The scheme has now been extended and was relaunched last week as the enterprise finance guarantee, which is a £1.3 billion UK-wide initiative.
The minister will be aware that securing debt finance, particularly for small businesses, is of paramount importance in the current economic situation. He will also be aware that the Welsh Assembly Government, through Finance Wales, has a system to work with European Union structural funds to provide debt finance for small businesses in Wales. Why has the Scottish Government not put in place a similar scheme in Scotland, where it has the power to do so? Such a scheme, which the Government has been considering since September, would have offered support for businesses in Scotland to make them more competitive.
We have a balanced approach. Regional selective assistance and the venture fund support Scottish business. I find it a bit rich that the member suggests that we take his advice, given that he has not supported the incremental introduction this year of the small business bonus scheme and he now plans an £800 million cut. His debits and credits are going in the wrong direction.
Strategic Transport Projects Review
To ask the Scottish Executive for what reasons the Elgin bypass and the trunk link road in Inverness were not deemed to be priorities for inclusion in the strategic transport projects review. (S3O-5602)
We have included a link between the A9 and the A96 in the STPR as it delivers national benefits and has a positive investment return. In their present form, proposals for connecting the A82 to the A9 and for a bypass at Elgin provide poor investment returns.
A positive business case was made by HITRANS, which identified significant economic benefits from an Elgin bypass. The First Minister, ministers Richard Lochhead and Fergus Ewing, and local Scottish National Party MSPs all promised the Elgin bypass and the Inverness trunk link road. Will the transport minister admit that those promises were not costed? Will he apologise to the people of Moray and Highland, who were misled?
The local member, Richard Lochhead, has been assiduous in pursuing the issues associated with the Elgin bypass. He has facilitated a meeting with local interests that will take place shortly; it will be the third meeting that he has had on the subject.
Following the welcome confirmation from the Highland Council budget leader, Liberal David Alston, that there is £119 million of council capital and developer contributions in the council's budget for 2009 to 2015, will the minister confirm that there is now no obstacle to the council pressing ahead immediately with the western section of the Inverness trunk link road?
I very much welcome the endorsement by the new administration in Highland Council of the provision that was made by the previous, SNP administration for the finance for the link road. We have made our substantial contribution to that project by making the link between the A9 and the A96 a national priority. I hope that the Liberal members of Highland Council do not use their policy of cutting infrastructure investment by £800 million a year as an excuse for not making progress.
I refer to the transport minister's comments to Mary Scanlon. Surely he is not suggesting that local authorities have become responsible for the shortcomings in the trunk road network.
Traffic in Elgin is divided into through traffic and local traffic—40 per cent of the traffic that goes to Elgin is local traffic. There is a substantial local traffic issue. That is precisely why there is constructive engagement between officials, HITRANS and the council. It is why I welcome the active, energetic support of the local member to ensure that all the complexities of the issue are brought to the fore and form part of the decision making going forward.
Will the minister confirm that the strategic transport projects review was approved by the Cabinet? Will he further concede, as a matter of principle, that a new line is required for trunk roads through Inverness and around Elgin?
We are providing a new trunk road at Inverness linking the A96 and the A9, we are making substantial investments in dualling the A96 to the east to Nairn, and we are making substantial investments in the railway to Inverness. In the national projects that it identifies, the STPR makes a once-in-a-lifetime contribution to Inverness.
Small Businesses (Cash Flow)
To ask the Scottish Government what measures it proposes to improve the cash flow to small businesses. (S3O-5621)
The Scottish Government economic recovery programme contains a number of measures that could improve cash flow to small businesses. For example, a 10-day prompt payment target has been introduced; the small business bonus scheme will be extended from April 2009; and we are opening up opportunities for more small and medium-sized businesses to win Government contracts, with the launch of a new online contracts portal.
Many of those measures are welcome but, even in good economic times, otherwise profitable businesses can fall due to cash flow problems. Will the Government consider a cross-departmental review of every interaction between businesses and the Scottish Government or its agencies to see whether there are other opportunities to improve cash flow, either by allowing payments to the Government to be deferred or delayed or by speeding up payments from the Government?
I welcome that constructive suggestion, which is compatible with what we have been doing to date. I will explore it with some interest and will talk to the member directly about it.
Does the minister share my concern that haulage companies are a type of small business that is particularly hard hit at present? Will he assure my constituents in the South of Scotland who have been affected by the recent closure of the Eddie Stobart Ltd depot in Larkhall that the partnership action for continuing employment team will offer them as much support as possible to quickly find alternative employment?
Yes, indeed. The member will be aware that we are transferring 80 staff from Skills Development Scotland to ensure that the PACE team can maintain its responsiveness and effectiveness. I trust that that will happen in the case of Eddie Stobart.
National Concessionary Travel Scheme
To ask the Scottish Executive whether it will admit community transport operators and people on the lower rate of disability living allowance to the national concessionary travel scheme. (S3O-5585)
The Scotland-wide free bus travel scheme for older and disabled people already includes community transport services, which are locally registered services. The review of the scheme is nearing completion and has been considering how the scheme could be improved.
I hope that the minister is aware of the views of the providers and users of community transport in Buckie, along with the views of similar people throughout Scotland who support Charlie Gordon's proposed bill on bus regulation, and the views of people in disability groups, especially those that represent people with learning and mental health disabilities. Why, when the minister provided such strong support for the inclusion of community transport and people on the lower rate of disability living allowance when he was in opposition, is he not prepared to take the issue forward in government?
On 15 December, I met some of the charities that are involved in the issue to hear their case. I am fully engaged in the matter. Considerable complexities are involved. I have asked for a special study on the community transport services aspect of the question. I expect to move forward shortly with the broad review that we are undertaking. We expect to publish the review report in the next couple of months.
Care Commission (Meetings)
To ask the Scottish Executive when it last met representatives of the Scottish Commission for the Regulation of Care and what was discussed. (S3O-5644)
Officials and I regularly meet the convener, chief executive and senior management of the care commission to discuss a range of issues relating to its functions. Officials last met the care commission on 3 December. Subjects on the agenda included the commission's performance in quarter 2 of 2008-09 and its health care associated infection plan.
The minister will be aware that I have raised concerns about a care agency in my constituency that went into administration without having directly contacted Falkirk Council to advise that it could no longer meet the care needs of its clients. Given that such agencies provide care and support to vulnerable and dependent individuals, does the minister agree that they should be required to give reasonable notice when they can no longer meet those care needs? Will she take forward the issue with the care commission to see how regulation on the issue can be improved?
The care agency to which the member refers was already operating in December 2003 when the care commission began regulating care home services. Special provisions applied in those circumstances and financial checks were not done on providers that were in business at the time. That is a significant factor in the case that he cites.
Scottish Federation of Housing Associations
To ask the Scottish Executive how it will respond to concerns raised by the Scottish Federation of Housing Associations that housing associations are "desperately struggling to meet demand". (S3O-5595)
The Deputy First Minister met senior representatives of the SFHA earlier this month and I addressed an SFHA event earlier this week. We share the SFHA's concerns about the current economic climate. That is why, at last week's themed questions, I announced that housing associations would be in receipt of the highest levels of funding yet seen. This year, we provided £531 million to support the supply of affordable housing; next year, we will provide £644 million. We are also discussing with the SFHA how we can secure the best possible return for our investment in order to maximise the supply of new homes.
At the end of this month, Hillhead Housing Association in Kirkintilloch in my constituency will commence a welcome 26-unit scheme, which is phase 2 of a 4-phase project. However, the association now has to comply with Scottish planning policy 6, which sets out Government policy on carbon emissions from new homes. The provisions in SPP 6 are adding £5,000 to the cost of each unit. One arm of Government is insisting on compliance with SPP 6 while another will not fund compliance. What additional support will the minister provide to housing associations to enable them to comply with SPP 6? If he will not provide such support, phase 4, which is a 34-unit scheme, will not go ahead.
As I said, next year we will supply the highest level of funding to housing associations that we have ever seen in the lifetime of the Parliament. We have also accelerated £120 million of funding. Indeed, our accelerated funding is almost one third of all the capital expenditure that the Scottish Government is bringing forward. The figure is also roughly twice as much, pro rata, as what is being made available in England. If the member wishes to write to me with the detail of Hillhead Housing Association's difficulties, I will be more than happy to consider the matter and respond to him in writing.
I am sure that members will wish to join me in welcoming a number of speakers and parliamentary presidents to the gallery today. They are Mr John O'Donoghue, Ceann Comhairle of the Dáil Éireann; Stephen Rodan, Speaker of the House of Keys, Isle of Man; Mr Inge Lønning, President of the Norwegian Lagting; Stephen Peters, Speaker of the Legislative Assembly of Ontario; and Michael Polley, Speaker of the House of Assembly of the Parliament of Tasmania. Gentlemen, you are all extremely welcome. [Applause.]