Meeting of the Parliament

Meeting date: Thursday, September 22, 2011

Official Report 1098KB pdf

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Scottish Executive Question Time

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Finance, Employment and Sustainable Growth

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Tourism (Dundee)

1. To ask the Scottish Executive how it plans to boost the Dundee economy through investment to increase tourism. (S4O-00184)

We are determined to maximise tourism growth throughout Scotland and to attract new visitors. In a visit to Dundee on 11 July, I learned at first hand about the potential of the Victoria and Albert at Dundee project. Our significant financial contribution to that project is helping to ensure that there will be a major new visitor attraction that will deliver significant economic and other benefits for Dundee and the rest of Scotland.

I welcome the £15 million of Scottish Government funding for the Victoria and Albert museum project in Dundee. The project is critical for our city and close to our hearts. Will the minister be more specific about the schedule of payments of that £15 million over the next three years to allow the project board to plan forward into the future?

I am delighted that the member welcomes Fiona Hyslop’s decision to make the substantial investment of £15 million in Dundee, which represents a third of the total capital costs of the project. The Dundee Courier has reported that the V&A is expected to be open by 2015. I had the pleasure of being at a presentation by all the parties that are working together on the project, and I understand that the V&A at Dundee could attract 500,000 visitors initially and 300,000 a year thereafter. I also understand that the plans for the V&A are already helping to secure new hotel investment in Dundee.

To answer the member’s questions, plans are well afoot, and everyone is working closely together. I am delighted that she welcomes the Scottish Government’s financial contribution to that excellent project.

I thank the minister and the Cabinet Secretary for Culture and External Affairs for their foresight in supporting the V&A at Dundee project. The minister has talked about the number of visitors and the economic benefits to Dundee. Will he talk about how the economic benefits might wave out to a wider area than only Dundee?

I think that the project will attract interest throughout Scotland and the world. The architect is a Japanese gentleman by the name of Kengo Kuma, who is internationally renowned, and the project will involve extending into the Tay to create a beautiful new riverscape—if I can describe it in that way—in Dundee. The project is one of several developments in Dundee, which include the thriving computer games sector, which I also visited in July, and the exciting developments in renewables there. Dundee is thriving and the Scottish National Party Government is helping it to do so.

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Wind Farms (Planning Applications)

2. To ask the Scottish Executive how it will ensure a balanced response to wind farm applications. (S4O-00185)

Every wind farm application is subject to a thorough and comprehensive consultation in order that all relevant considerations can be assessed and weighed up before a decision is made. It is important that we balance our renewables ambitions and the associated economic benefits against local impacts. Such decisions are important, and public engagement is a key part of the robust and transparent planning process, which must take into account impacts, including cumulative impacts, on the landscape, natural and cultural heritage, communities, defence, aviation and roads.

Does the minister acknowledge that there are concerns in communities about wind farm developments? Will she conduct a review of the current subsidies that are provided to developers but paid for by Scottish households in order that an effective approach to fuel poverty might be identified for the 750,000 households that are adversely affected by the escalating costs of electricity?

Public consultation is a key part of the planning process. Although there is an estimated additional cost to consumers’ bills, relatively speaking it is not as much as the price hikes in energy bills from other companies. We understand that no one wants to see consumers’ bills being added to, but we want to incentivise renewable energy and ensure that we can take forward our renewables obligations.

On the issue of having a balanced response to wind farms, what impact, if any, on tourism figures has been measured in areas that already host wind farms, such as the Highlands?

Government research has shown that by allowing sensitively sited wind farms to go ahead, the interests of tourism and sustainable energy production can remain compatible. Indeed, John Lennon, the chair of the travel and tourism department at Glasgow Caledonian University said:

“There is no doubt that wind turbines do intrude on the landscape, as they are not natural structures. However, research we have carried out, in locations like Stirling Castle, where a windfarm can clearly be seen, is that tourists are largely indifferent towards them. They are more worried about the impact of nuclear or coal-fired power stations”.

I am sure that that argument can be translated quite effectively to the constituency that Rob Gibson represents, and represents well.

Does the minister accept that there is a perception that there is a distinct lack of guidance to local authorities on the appropriate siting of large-scale onshore wind farms, which has led to many cases of what can only be called sporadic development of such installations? As sporadic development is specifically disallowed for all other forms of development, why does the Government tacitly encourage sporadic development of wind farms?

As set out in the Scottish planning policy, planning authorities should set out in the development plan a spatial framework for onshore wind farms over 20MW, and that framework should identify areas of protection and constraints. Of course, additional planning advice is available online to help planning authorities to reach a balance.

It would clearly not be a balanced approach to the development of wind power if wind developments were effectively being traded off against other developments, as was clearly alleged by a certain Mr Donald Trump, who wrote to the First Minister claiming to have been repeatedly promised that an offshore wind farm would not go ahead, as an incentive for him to go ahead with his golf resort. Regardless of whether those promises were made—

Do you have a question, Mr Harvie?

Regardless of whether those promises were made before the Scottish National Party came to power or since, will the minister commit to an immediate inquiry to find out the truth of those allegations of serious misconduct? Either serious misconduct has been committed or, frankly, Mr Trump is lying.

Ministers always assess every planning application on its merits, taking into account the views of consultees, interested parties and, of course, the public.

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Job Creation (Glasgow)

3. To ask the Scottish Government how its refreshed economic strategy will assist in boosting job creation in Glasgow. (S4O-00186)

Our economic strategy has specific actions that Glasgow will benefit from, including the south Glasgow hospitals project, which is part of our significant new programme of capital investment, and priority funding of the Clyde Gateway Developments urban regeneration company, to drive the regeneration of the east end of Glasgow. Later this year, we will introduce a cities strategy that will build on the status of Glasgow as a renewables supercity and promote the continued growth of business tourism.

I know that the minister knows that I believe that an enterprise zone for Glasgow would be a positive way forward for job creation, but that is not the substantive point of my supplementary question.

On the guarantee of an education or training place for every 16 to 19-year-old in Scotland, what will be done to create real jobs at the end of that education or training period for my constituents in Glasgow?

I accept the invitation not to comment on the first part of the member’s question.

Plainly, we are determined to stimulate the economy to provide opportunities for young people at local and national levels, with 25,000 apprenticeships and the embedding of our approach in the reform of post-16 education, which has a system-wide focus on meeting the needs of learners and employers.

Will the minister clarify the intention behind enterprise zones? I represent a constituency with a high claimant count and I would welcome any chance to increase the opportunities for my constituents. Will the minister clarify whether, under his regime, enterprise zones are likely to duplicate the problems that were found before, where jobs were taken from one area of high employment and enticed into another?

The matter relates more to question 5, but I will answer Patricia Ferguson’s question directly.

We will make announcements on enterprise zones in due course and we will consider the criteria and how we wish to proceed. The objectives are to increase employment and job opportunities for all—for example, in Allied Vehicles in Glasgow, which I visited on Monday; in the “Foundation Glasgow—the story of a city” exhibition, which I visited on Monday; and in all the good developments in Glasgow and the rest of Scotland that I see as Minister for Energy, Enterprise and Tourism. We will build on that success with the enterprise zone initiative.

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Value-added Tax

4. To ask the Scottish Government what recent discussions it has had with the United Kingdom Government regarding reducing the rate of VAT. (S4O-00187)

The Government’s updated economic strategy sets out how we are focusing our efforts on accelerating the recovery. However, it is clear from the recent global economic data—including the International Monetary Fund’s downward revision of the growth forecasts on Tuesday—that the Chancellor of the Exchequer must enact a plan B to protect the recovery.

As part of our proposals, the First Minister has advocated a targeted reduction in VAT on home repairs, which would provide a boost to construction activity in Scotland. It is clear, however, that the United Kingdom Government must act to protect the recovery.

The minister will be aware that the Irish Government has introduced a temporary reduction in the rate of VAT pertaining to the tourism and golf services sector. Has the Scottish Government raised with London the possibility of its addressing an 11 per cent disparity in VAT rates between Ireland and Scotland, which is placing our tourism and golf sectors at a competitive disadvantage?

I advise Graeme Dey that I met the UK Minister for Tourism and Heritage just last week and urged him to consider the measures that have been taken in Ireland. I further inform the member that 23 countries in the European Union currently have a reduced rate of VAT for their tourism and hospitality sectors.

I welcome the approach that Ireland has taken, but it has a Government that has the powers to act.

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Enterprise Zones (West Scotland)

5. To ask the Scottish Government what recent discussions it has had in relation to establishing an enterprise zone in the West Scotland region. (S4O-00188)

The Scottish Government is currently working to introduce four enterprise areas in Scotland, which will include sites with a particular focus on low-carbon manufacturing opportunities to maximise their economic impact and attractiveness to investment.

The minister will be aware of my comments during last week’s economy strategy debate about the potential to link an enterprise zone with the national renewable infrastructure fund to help an area such as Inverclyde in West Scotland. Will he agree to meet me so that we can discuss my proposal further?

I commend Stuart McMillan for pursuing that matter with persistence, in committee yesterday and in the chamber today. He is right to do so, and I am happy to accept the invitation to meet him to discuss the issue further. We are confident that enterprise zones are a lever that we can use to help to grow the Scottish economy.

Further to Patricia Ferguson’s comments, what evidence has the Scottish Government obtained, and what research has it carried out, in considering whether to establish an enterprise zone in West Scotland or any other area, to show that enterprise zones will stimulate new economic activity, rather than just displacing it from other areas, as happened in the 1980s when the policy was first pursued by the Thatcher Government?

Our plans aim to ensure that the lever is used to increase enhanced economic activity. That is one of the reasons why we have clearly indicated that our particular—although not exclusive—focus will be on low-carbon manufacturing opportunities. We are about to debate that area shortly, and I think that members on all sides of the chamber agree that substantial opportunity exists in it for enhanced economic activity—more business and more jobs—rather than displacement. I very much hope that Richard Baker will welcome the Scottish Government’s approach and that an announcement on that will be forthcoming from him.

George Adam will ask question 6—I am sorry; he has a supplementary.

You had me worried for a moment, Presiding Officer.

Will the minister join me in encouraging Renfrewshire Council to build on its positive relationships with its private sector partners to facilitate a Glasgow airport enterprise zone? That would not only boost Paisley’s economy but assist the Scottish Government in promoting Scotland’s growth area of low-carbon manufacturing.

My experience has been that Renfrewshire Council has rarely needed any encouragement from me to make vigorous representations on just about everything, particularly under Mr Mackay’s vigorous former leadership.

George Adam makes the reasonable point that Glasgow airport is once again an engine for growth. I commend the recent announcement of new jobs there and I take a close interest in such matters.

We all want every part of Scotland to succeed. Every member for every part of Scotland advocates—rightly—the cause for his or her area. We must make tough decisions but, in doing so, we are happy to receive representations from all parties and all parts of Scotland.

We come to question 6 now.

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Local Government Finance Settlement (Funding Floor)

6. To ask the Scottish Executive what assessment it has made of the impact of introducing a funding floor for local authorities. (S4O-00189)

The impact of introducing a new funding floor will be that all local authorities will receive at least 85 per cent of the Scottish average of revenue support.

Setting the floor at 85 per cent is estimated to have no direct financial benefit to some local authorities. Will the cabinet secretary confirm that taxpayers of those authorities, such as Perth and Kinross Council, will not lose out?

If the funding floor is set at 85 per cent of the average, it is clear that some will not benefit—that is a statement of the obvious.

Perth and Kinross Council is close to my heart—I live in and represent the Perth and Kinross area, so I declare an interest as a council tax payer there. Council tax payers in that area will experience no detriment, because the Government has committed to making available the resources to implement the funding floor in addition to the core settlement for local government. With that answer, council tax payers in Perth and Kinross can rest easy tonight.

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Police Forces (Merger)

7. To ask the Scottish Government what annual impact it expects the savings made as a result of the merger of Scotland’s police forces to have on the Scottish budget. (S4O-00190)

The creation of a single police service for Scotland will protect and improve local services, despite the unprecedented financial reductions that we face. Stopping the duplication of support services eight times over will enable us to invest in the front line. Once the programme of change has been completed, the reform of our police service will deliver an estimated annual recurring cash saving of £106 million.

Will the cabinet secretary confirm that all the savings that will be made from the reform will be reinvested in the criminal justice system and particularly in helping to maintain the 1,000 additional police forces on our streets across Scotland, which have helped to reduce crime to a 35-year record low?

I am not sure whether I can commit to 1,000 extra police forces—[Laughter]—but I am delighted to confirm that the Government has fulfilled its manifesto commitment to put 1,000 extra police officers on Scotland’s streets. That has of course contributed to the very low crime levels that Mr Gibson properly described.

The Government has set out its three-year spending proposals for the criminal justice system. We want that system to be properly and fully resourced to maintain local policing’s effectiveness. Those considerations will be at the heart of any funding settlement that applies to the criminal justice system beyond the spending review’s three-year period.

If Mr Swinney is going to produce more police forces, let me be the first to offer Shetland as an example of an area that would happily take one. Given his confidence about his figures, is he prepared to give an assurance to my constituency that the same number of police officers will be in place after his single police service is created as are in place today?

I thought that the talk of extra police forces would be music to Mr Scott’s ears. When Mr Gibson was making his generous offer, he might have had Mr Scott in mind, given his valiant efforts on the subject. I confirm for Mr Scott that the same number of police officers will be available in Shetland post reform as are available pre reform. The purpose of the exercise is to ensure that, at a time when we face questions about the sustainability of public finances and services, we protect and support the things that matter. I readily acknowledge that, for the people of Shetland, that means the effectiveness and visibility of the local police force. I happily give the assurance that Mr Scott seeks.

Will the cabinet secretary give assurances that any savings that are achieved will not be made by reducing the terms and working conditions of police support staff?

Obviously, a process of reform has to be gone through, so there will be changes to the arrangements in the police services and forces. Undoubtedly, there will be changes to the deployment of individuals in the police service. I cannot conceive that there will be a requirement for changes to terms and conditions, but there certainly will be changes to roles and responsibilities and to deployment. That is a natural product of the reform process, but I do not think that it will extend to terms and conditions.

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Public Services (Payments to Contractors)

8. To ask the Scottish Executive whether a time limit applies for payments to private companies delivering public services and, if so, whether this applies to payments made to subcontractors. (S4O-00191)

The Government recognises the importance of prompt payment of invoices, for the Scottish economy in general and for particular businesses. That is why we pay about 96 per cent of invoices within 10 days and why we have changed the standard terms and conditions for goods and services to include a clause that requires invoices at all stages of the supply chain of Scottish Government contracts to be paid within 30 days. We encourage other public bodies to follow suit.

When I was on a recent visit to a company in Cumbernauld, the managing director told me that the biggest issue that faces his and other small and medium-sized enterprises is prompt payment for work completed, which can make the difference between a company staying solvent or going bust. How will the cabinet secretary ensure that, in line with his answer today, payments to subcontractors are made within the time period that he mentioned?

The issue is serious and I acknowledge the significance of the effect on businesses. That is why the Government’s standard terms and conditions have been changed. After we introduced our 10-day payment period, which I thought was a great contribution, I found out that many subcontractors were not getting their payments within a credible timescale thereafter. Main contractors were hoarding money that we had paid out and which should have been passed on to contractors. That is why we changed the payment terms to encompass a 30-day period for the entire supply chain.

If Mr Griffin has specific examples of that not being fulfilled, I would be delighted to receive them and I would act on that. That applies to any member of Parliament, because I understand the seriousness and necessity of prompt payment, particularly in the current economic climate. I assure the member that ministers will want to act if we see any evidence of bad practice.

The cabinet secretary has done a lot of good work on prompt payment. However, I wonder whether any work has been done on the performance of local authorities, health boards and other bodies that are funded by the Scottish Government. Are there ways of boosting the performance of those bodies, other than encouragement?

I do not have any specific review material to hand, but I will examine Mr Brown’s point as it relates to bodies that are within the Government’s control. I believe that the 96 per cent figure that I gave might cover the health service, too, but I will write to Mr Brown on that specific point. Obviously, local authorities are independent bodies. When I suggested the introduction of the 10-day period, that was met by a sharp intake of breath among many of those who are responsible. People have given extraordinary commitment to ensuring that the changes have been delivered. They are an example of practical action that we can take that does not cost money, but which helps the flow of business in the economy and benefits the economic recovery in general.

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Living Standards (Alternative Measures)

9. To ask the Scottish Government what consideration it has given to social and environmental measures as an alternative to gross domestic product as a means of assessing living standards in Scotland. (S4O-00192)

Our Government economic strategy set out an ambitious framework for delivering increasing sustainable economic growth. That identifies the drivers of sustainable economic growth and our desired characteristics of growth.

At the heart of the Government economic strategy is a framework that ensures that faster sustainable economic growth is balanced alongside important social, regional and environmental objectives. That includes a set of purpose targets on a range of economic, social and environmental measures. It is supported by our national performance framework.

Two factors suggest that now is the time to consider social and environmental measures not as an alternative but as a complement to GDP as a measure: first, the appointment of Joseph Stiglitz to the Council of Economic Advisers and the good work that he has done in that area; and secondly, the Oxfam humankind index by Oxfam and its partners, which has been brought to the attention of MSPs. What work is the Government doing in that regard?

I am looking closely at the issues raised, particularly by the Oxfam material, which I have seen and considered.

Since 2007, the Government has attempted not to use GDP alone as the indicator of progress but to consider it within the context of a wider range of economic, social and environmental measures. I would not characterise our approach as essentially one that looks only at GDP. We look at a range of indicators, and within that context I will explore further the issues raised by the studies to which Mr Hepburn referred.

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Job Creation (Fife)

10. To ask the Scottish Government what steps it is taking to support job creation in Kirkcaldy and the rest of Fife. (S4O-00193)

We are prioritising our spend on capital to maximise the impact on jobs, including the construction of the Forth replacement crossing, which will secure more than 3,000 jobs and support more than 1,200 jobs during its construction.

Our investment in a supportive business environment also supports job creation in Kirkcaldy and the rest of Fife, such as the 750 permanent jobs created by Amazon at its fulfilment centre in Dunfermline.

In the minister’s opinion, what contribution has the £2 million town centre regeneration grant from the Scottish Government for phase 3 upgrade of Kirkcaldy High Street made to the creation of jobs in Kirkcaldy? What steps will the Government take to maintain that momentum in future years?

It should make a very positive contribution to Kirkcaldy—a town that I was pleased to visit during the summer, when I saw the success of PR2 Engineering, Just Slate, Yellow Jacket Europe, and the business gateway incubator centre. Kirkcaldy is doing well. There is always room for improvement and we are always open to suggestions from the people of Kirkcaldy, as we were when the Cabinet visited the town towards the end of the summer.

The minister will be aware that the decision by the Ministry of Defence to close RAF Leuchars could have a detrimental effect on the Fife economy and jobs. Does he agree that Fife will require investment to ensure that it does not suffer too greatly at the hands of a decision made by the coalition Government at Westminster?

Yes, I agree that appropriate investment will be required. I met leaders from the local authority and enterprise agency in Fife during the summer. On 13 September, the Cabinet Secretary for Finance, Employment and Sustainable Growth attended a business breakfast with the Fife economy partnership.

These are very important matters. In Leuchars, as in Kinloss, a huge amount is being done to help to find alternative employment for those people who have lost their jobs. Marvellous work is being done by excellent individuals, and I am very positive about the results of that work in helping people to find alternative careers after the hammer blow that resulted from the closure of those RAF bases.

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Public Sector Pensions

11. To ask the Scottish Government what recent discussions it has had with the United Kingdom Government on the future of public sector pensions. (S4O-00194)

I have met and written to the Chief Secretary to the Treasury on a number of occasions regarding public sector pensions in Scotland. I wrote most recently on 16 September.

I have been approached by a high number of constituents who have expressed concerns about this issue. Will the cabinet secretary assure those constituents that the Scottish Government will do all that it can, within its very limited powers, to fight their corner and lobby the British Government to scrap these proposals altogether?

For some time, during the previous session and over the summer after this Administration’s re-election, we have expressed in writing and in various meetings—at the highest level of this Administration and the highest level of the UK Administration—our complete disagreement with the UK Government on the approach that it proposes to take, particularly about the timing of what is proposed. That has involved conversations and meetings between the First Minister and the Prime Minister and the First Minister and the Deputy Prime Minister; I was involved in the discussions, into the bargain. I assure Mr Paterson that throughout the summer this Government has made its point of view very clear to the UK Government.

As I said to Parliament yesterday, unless the United Kingdom Government changes its view, the Scottish Government believes that we will have no alternative but to apply the increases in employee contributions across the national health service, teachers, police and fire pension schemes. To do otherwise would be to require a £102 million per annum reduction in the funding that we would have available for public services and public sector employment in Scotland, the consequences of which would not be at all welcome or appropriate. I regret that we have had to take that decision, but I hope that my answer explains to Mr Paterson the basis on which we have done so.

I confirmed to Parliament in my statement yesterday that the local government pension scheme will take its own decisions on the issue of contributions by employees.

Question 12 has been withdrawn by Colin Keir.

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Spending Review (Justice)

13. To ask the Scottish Executive what discussions the Cabinet Secretary for Finance, Employment and Sustainable Growth has had with the Cabinet Secretary for Justice regarding the next spending review. (S4O-00196)

I have had regular discussions with the Cabinet Secretary for Justice—some may say that they have been far too frequent—in the course of developing the spending plans that I presented to Parliament yesterday.

How much money has been allocated in the spending review for the transitional period before the move to a single police service and a single fire service? Further to the cabinet secretary’s earlier comments on police numbers, does the guarantee extend to protecting firefighter numbers, which would allay some of the fears that have been expressed in relation to the 5 per cent reduction in firefighter numbers that the Government announced recently?

The Government has made a commitment in the spending review to implement the move to a single fire service and a single police service. The financial provisions have been made within the budget allocations, which enable that to take its course.

On James Kelly’s question about firefighters, the Government’s objective in all its reform measures is to maximise the levels of public sector employment that we have within Scotland, because we believe that that is good for the economy and good for the operation of public services. We have had very constructive discussions with firefighters’ representatives in Scotland about taking forward the reform agenda and they have been very active participants in that debate. I would expect the Cabinet Secretary for Justice to maintain that dialogue in the years to come.

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Businesses in Administration (Assistance)

14. To ask the Scottish Government what measures it employs to assist businesses that have entered administration to trade out of administration, specifically in relation to relief from business rates liabilities. (S4O-00197)

The Government offers a comprehensive package of business rates relief worth an estimated £2.6 billion over the five-year 2010 revaluation period, which will apply to the businesses that are referred to in Mr Ingram’s question.

Will the cabinet secretary consider establishing a single point of rates administration for Scotland, as happens in Northern Ireland? That would help to alleviate the problems that are encountered by multisite Scottish businesses such as A&J Menswear in my constituency, which is striving to trade out of administration. Will he instruct his officials to meet the company with a view to assisting it to do so successfully?

I would certainly encourage A&J Menswear to continue its efforts to trade out of administration, and I would be delighted to make available whatever assistance and guidance the Government can make available to the company to help it in that process. If a meeting with officials would help, I would be happy to arrange that. I have already made clear to Mr Ingram the advice that is available through Scottish Enterprise, but if there is any additional assistance that we can offer through direct dialogue with the company, I would be delighted to put that in place for him.

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Disused Mineshafts

15. To ask the Scottish Government what support is available to those at risk from the subsidence or potential collapse of disused mineshafts. (S4O-00198)

The Coal Authority is responsible for public safety relating to land subsidence that has been caused by coal-mining operations.

The Coal Mining Subsidence Act 1991 is used to administer any claims for damage to land, buildings and structures resulting from subsidence damage. The Coal Authority has a duty to take remedial action by undertaking repairs or by making compensation or depreciation payments in respect of the damage caused. The Coal Authority also provides an emergency response service to incidents that pose a risk to public safety. That emergency call-out service deals with incidents on a 24-hour basis every day of the year.

In the Knightswood area of my constituency, there has been a collapse of long-disused mineshafts, which has resulted in two houses having to be demolished. Fortunately, no one was injured in the collapse and disappearance of a kitchen in one of those houses. That has had a detrimental effect on my constituents, who worry about subsidence and the possible collapse of their homes, as well as the potential effect on the value of their properties.

Will the minister visit the area with me to look into what is a concerning matter and forward his views to the Coal Authority?

I thank the member for giving notice of the details of that important matter. I am aware of the incident, which I believe affects four properties in Crusader Avenue in Knightswood.

I can advise the member that the Coal Authority and Glasgow Housing Association have been working closely with the affected residents to make the area safe, to provide appropriate support and advice, and to find suitable alternative accommodation.

The Coal Authority has undertaken checks on three identified mineshafts in the immediate area and has reported that there are no signs of any surface deterioration. However, it is working with Glasgow City Council and Glasgow Housing Association to ensure that full inspections of properties are carried out. Where there is damage that has been caused by abandoned coal mine workings and shafts, the Coal Authority is responsible and, under the Coal Mining Subsidence Act 1991, will fully remedy the damage.

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Economic Activity

16. To ask the Scottish Executive whether it is doing all within its power to boost economic activity. (S4O-00199)

The Government is doing all that it can within its powers and responsibilities to boost economic activity.

The cabinet secretary will be aware that, yesterday, Graeme Brown, the director of Shelter Scotland, said:

“A 50% cut in affordable housing investment is a devastating blow to the housing sector and now there is no way the SNP Government will be able to meet one of its flagship manifesto commitments of 30,000 new socially-rented homes over the next five years.”

Does the cabinet secretary acknowledge those very real concerns? How will he meet his manifesto promises?

I believe that the allocations that were made in the spending review that I announced yesterday will enable the Government to honour its manifesto commitments on housing. I am confident that the necessary resources are in place, and the Minister for Housing and Transport and the Cabinet Secretary for Infrastructure and Capital Investment are entirely confident that the plans that we have formulated will enable that to happen. I look forward to that message being communicated to, and welcomed by, all those who are interested in the important contribution that housing development makes to economic activity in Scotland.