Meeting of the Parliament

Meeting date: Thursday, February 23, 2012

Official Report 1161KB pdf

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Scottish Executive Question Time

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General Questions

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Living Wage (Discussions)

1. To ask the Scottish Government what recent discussions it has had with local authorities to progress the implementation of a Scottish living wage of £7.20 per hour. (S4O-00697)

I have had several discussions recently with local authorities that have included the Scottish living wage. I welcome the fact that a number of local authorities have already introduced the living wage or are committed to doing so.

The Government will continue to encourage all public sector employers to introduce the Scottish living wage. However, it is a matter for local authorities as independent corporate bodies to set their own rates of pay and to determine whether to implement the living wage.

North Ayrshire Council, which is in my area, has implemented the Scottish living wage. One of the reasons that it did so was to allow it to be in a position to encourage large employers in the area to embrace the concept.

Does the minister agree that it is right that councils should lead by example on the matter? Will he tell us which other councils are fully signed up to the Scottish living wage?

I entirely agree with Margaret Burgess. It is welcome that many councils have moved towards implementing the living wage.

I can announce to the Parliament that seven councils have already introduced the living wage; six have agreed to implement it in their budgets for 2012-13; two have indicated their intention to introduce it; and four councils, although they do not state the living wage as a policy, are de facto delivering it. That means that, for the first time, the majority of councils are implementing the living wage.

The Scottish Government has continuing discussions with local government on the concordat, the local government settlement and the council tax freeze. Will it continue to discuss the living wage with local authorities as the settlement negotiations progress over the next year?

Yes. I reassure John Park that, in the individual local authority visits that I have undertaken, I raised the living wage and re-emphasised the Government’s position on rolling it out across all parts of the public sector. Also, at a recent meeting with Convention of Scottish Local Authorities leaders, we explained our position on the living wage. We will continue to do so and to work in partnership with local government to ensure that all 32 local authorities sign up to the policy.

Will the minister confirm whether the proposed sustainable procurement bill will consider the inclusion of the living wage in contracts?

I am aware of continuing debate in the Parliament about procurement and the living wage. One matter that will have to be addressed is the European position. We are questioning a court ruling, and the Cabinet Secretary for Infrastructure and Capital Investment wrote to the European Commissioner for Internal Market and Services in early December seeking clarification of the European Commission’s view on conditions such as the living wage in procurement.

We will consider the matter as part of the procurement bill, but we will have to be mindful of the position that the Commission outlines. We certainly intend to consider social benefit clauses in any procurement bill that the Parliament considers.

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Delivery Charges and Road Fuel Taxes

2. To ask the Scottish Government what action it can take to mitigate the economic impact of high delivery charges and road fuel taxes on sparsely populated areas. (S4O-00698)

People in rural communities are faced with high prices for fuel and online deliveries. The Scottish Government fully supports Citizens Advice Scotland’s call for online retailers to sign the pledge to display costs clearly prior to sale, ensure that charges are based on costs incurred and offer Royal Mail delivery wherever possible. I have written to the Department for Business, Innovation and Skills to ask for the United Kingdom Government’s support on the issue. The Scottish Government continues to lobby the UK Government on the scale and scope of the fuel derogation.

Question 3—Mike MacKenzie.

To ask the Scottish Executive what advice it can give to local authorities in the Highlands and Islands—

My apologies—could you please sit down, Mr MacKenzie?

Mr Gibson, you may ask your supplementary question.

That is twice in two days. Thank you, Presiding Officer.

There are compound examples of surcharges in delivery north of Inverness in my constituency. Indeed, the area has been excluded from any concession under the fuel rebate that London has talked about for islands. Will the Scottish Government seek an Office of Fair Trading inquiry into the matter and consider plans for a Scottish postal service based on universal service obligations for letters and parcels?

I am well aware of these matters and have campaigned with Mr Gibson on them for more decades than both of us really care to remember. The OFT has launched a call for evidence into the challenges faced by people in remote areas, including the issue of delivery charges, and I encourage people to submit evidence to that inquiry.

As for the creation of a Scottish postal service, that is, I am sad to say, not an option, as postal services are reserved. Nevertheless, we have consistently emphasised to the UK Government the importance of retaining the universal service obligations and that Scottish consumers must not be put at a disadvantage.

Mike MacKenzie may ask question 3 now.

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Sustainable Economic Growth (Highlands and Islands)

3. To ask the Scottish Government what advice it can give to local authorities in the Highlands and Islands region to assist them in achieving sustainable economic growth. (S4O-00699)

“The Government Economic Strategy”, which was published in September 2011, sets out the priorities for accelerating the recovery, promoting jobs and supporting sustainable economic growth. At its heart is a commitment to work with partners across the public sector, including those in the Highlands and Islands, to ensure that all communities across Scotland have the opportunity to flourish.

Is the cabinet secretary aware that Argyll and Bute has the highest unemployment rate and the lowest rate of growth in the Highlands and Islands region? What advice can he give Argyll and Bute Council to help it to tackle the problem?

I say to Mr MacKenzie and Argyll and Bute Council that certain parts of the country clearly face more acute economic challenges than other parts and, through the local authority funding settlement, the Government has provided effective support to assist local authorities in being players in local economic development. Some months ago, Mr Neil decided to locate a tax increment financing project in the Oban area, which is in Argyll and Bute, and with the investment in the University of the Highlands and Islands project there is clear support for a number of educational institutions in the Argyll and Bute area. In addition, the Government continues to deploy European structural funds to support developments in the Highlands and Islands. Indeed, just this week, Mr Neil announced an additional £5.3 million through that mechanism to boost economic growth and create jobs in the Highlands and Islands.

I call Jamie McGrigor.

Oh. Actually, I pressed my button for a supplementary to the previous question but you did not notice—

That is quite all right. Just sit down, Mr McGrigor.

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Firefighters’ Pensions (Discussions)

4. To ask the Scottish Executive what recent discussions it has had with firefighters regarding their pensions. (S4O-00700)

I am in regular contact with the Fire Brigades Union as we consider the impact of public sector pension announcements by Westminster and the serious effect that they may have on the pay and families of courageous and dedicated firefighters throughout Scotland.

Will the cabinet secretary reassure Scottish firefighters that the heads of agreement in the pension negotiations will not be picked up from the Department for Communities and Local Government in Westminster but will be set and negotiated here in Scotland, given that the power to do so is already devolved to the Scottish Government?

We are in regular discussions with the FBU. However, the difficulty is that the United Kingdom Government’s position seems to be a moveable feast. We have made it quite clear that this is nothing but a blatant cash grab. Under duress—I refer to the financial actions threatened by Westminster—we have had to do various things, but we are working with the FBU to protect its members and their families from the outrageous actions of the coalition Government south of the border.

Question 5, in the name of Bill Walker, has been withdrawn.

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Housing Association Board and Committee Members (Payments)

6. To ask the Scottish Executive whether permitting or promoting payment to housing association board and committee members were intended consequences of the repeal of schedule 7 to the Housing (Scotland) Act 2001. (S4O-00702)

Schedule 7 to the 2001 act was repealed by the Housing (Scotland) Act 2010 and replaced, at section 36 of the 2010 act, by a duty on the new Scottish Housing Regulator to consult on and then issue a code of conduct on the governance and financial accountability of registered social landlords.

The intention was to replace a prescriptive and detailed set of rules with a code that was more proportionate and which would give individual RSLs reasonable discretion to decide their own governance arrangements. In that spirit, section 36 of the 2010 act neither promotes nor prohibits payments to members of RSL boards but provides for the regulator, in consultation with interested parties, to determine what provision the code should make in that regard.

If that was the intention, neither the Scottish Parliament information centre nor the housing associations to which I have spoken are aware of it. Where is that indicated? The Scottish Housing Regulator seems to think that it must bring in payments because it cannot go against what it sees as the will of Parliament. I do not think that MSPs were aware that that would be a consequence. Should not such a fundamental change be discussed by Parliament to clarify whether it is our will?

As the minister who piloted the legislation through Parliament, I made it clear at every stage and in the accompanying documentation that there was no requirement on—it was not mandatory for—the new regulator to impose any particular conditions or payments on RSLs and their board members.

I am happy to debate the issue in Parliament—it might be up to the member to secure a members’ business debate on it.

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Kincardine Bridge (Refurbishment)

7. To ask the Scottish Executive when the planned refurbishment of the Kincardine bridge will commence and what measures it will put in place to minimise the impact of the works on the local community. (S4O-00703)

The scheme is in the current trunk road programme and will be taken forward at the earliest possible opportunity when funding allows. When Transport Scotland is in a position to confirm a start date, discussions will continue with the local authority to ensure that any impacts are managed and mitigated wherever possible.

I know that the minister was involved in my members’ business debate on the issue in 2008 and has a constituency interest.

There is a concern that there will be major road congestion in Kincardine and the west Fife villages because cars and other vehicles have to pass through Kincardine to get to Clackmannanshire bridge. I ask the minister to request that Transport Scotland consider the option of keeping the bridge open while it is being refurbished.

I am afraid that I cannot confirm that the bridge will be kept open. It will be shut simply because there will be a large gap that cannot be bridged by any vehicle. The gap is inevitable, as it is necessary for the works.

I understand the member’s point on the impact on the village of Kincardine, not least because of the Higgins’ Neuk roundabout, which will have great pressure on it from one side but very little countervailing pressure from the other. That is why I reiterate that there will be proper consultation with the local authority. If the member wants further information on that, I am happy to give it to him.

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Bus Services (Regulation)

8. To ask the Scottish Executive what plans it has to regulate bus services. (S4O-00704)

There is currently regulation in the bus industry. We want affordable, innovative, good-quality bus services and a competitive marketplace that delivers such services, with appropriate but not burdensome regulation.

FirstBus wrote to me last week to advise me that there would be significant increases in fares and a reduction in bus services in Glasgow. Does the minister agree that now is the time for full regulation of buses to ensure that, instead of profits being put before services, our communities are served by bus services?

The member can correct me if I am wrong, but I am fairly sure that when the company wrote to him it did not ask for further regulation in the bus industry.

We provide substantial investment and support for the bus industry—around £0.25 billion—through concessionary travel and the bus service operators grant. We will continue to do that, despite requests from Opposition members to reduce the concessionary travel scheme.

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Scottish Government Information Technology Projects (Audit)

9. To ask the Scottish Government whether it will ask the Auditor General for Scotland to audit Scottish Government information technology projects where costs are in excess of £20 million. (S4O-00705)

I understand that the Auditor General has asked Audit Scotland to look at proposals for examining the outsourcing of information technology contracts and how well they are performing.

The cabinet secretary will be aware of a recent report by the Auditor General on an IT contract signed with a large United Kingdom provider in 2004 that has resulted in a significant overrun in expenditure. Will the cabinet secretary now confirm with procurement Scotland that all public IT contracts are not limited to large providers but are open to smaller and indigenous Scots IT providers?

The Government goes to considerable lengths to ensure wide availability of, and accessibility to, public service contracts for small and medium-sized enterprises in Scotland. That is principally, although not exclusively, undertaken through the public contracts Scotland website, through which we advertise all public sector contracts for work to be undertaken on behalf of public bodies. That website is used principally by small and medium-sized enterprises, but all companies can register their interest on it free of charge. The website provides companies with an opportunity to ensure that they have the greatest accessibility to those contracts.

To date, three quarters of all firms that win contracts from across the public sector that are advertised on public contracts Scotland are SMEs. The Government is determined to increase that level of activity. We are also trying to strengthen the capability of public contracts Scotland by rolling out a standard pre-qualification questionnaire, which will further ease the burden on small and medium-sized companies and increase their ability to tender for public sector activity. Many of the issues will be developed as part of the sustainable procurement bill, which will be taken forward during the current parliamentary session.

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Bus Travel (Promotion)

10. To ask the Scottish Executive what it is doing to promote buses as a method of travel. (S4O-00706)

The Scottish Government is investing nearly £250 million per year in promoting the use of bus.

That sounds a laudable answer, but the minister did not say that the bus service operators grant will be cut by 20 per cent in the coming year. As predicted in the Parliament, we are now seeing the effect of that locally. As a direct result, one major bus operator in my constituency, Lothian Buses, has already announced fare rises of up to 9 per cent. The other main local operator, First Scotland East, has announced its intention to increase fares on similar terms. Its managing director has said:

“It is inevitable that the reduction in funding will lead to increased fares and service reductions.”

From the minister’s answer to my colleague Paul Martin, I understand that he does not wish to pursue regulation of bus services—at least, not any more. However, can he explain how forcing up fares is meant to promote buses as a method of travel?

I repeat the point that the bus service operators grant equates to about £50 million of support. Similar support has been completely taken away in many parts of England in the past couple of years because of budget pressures, but we have maintained that support of £50 million. We have also maintained the level of the concessionary travel scheme, despite the suggestions that I mentioned from Opposition parties that we should reduce it. Therefore, there is substantial support.

Setting fares is a matter for individual bus operators. The bus service operators grant cannot account for a 9 per cent increase in fares, given the proportion of bus service operators’ income that it provides. There is an issue in Lothian, because we are trying to stop encouraging increased fuel use. The previous Administration’s approach encouraged fuel use, but we are trying to provide the bus service operators grant in a way that helps to reduce fuel use, which is important. However, there is a transitional period in which Lothian Buses, for example, will have to make that change. We have therefore announced a £3 million support package for that.

We will of course continue to discuss with bus operators the pressures that are on them. They have a reasonable point, but they have been told and have accepted that we must move to provide further support for operators in rural areas, where there are pressures from fuel duty costs, which are imposed from elsewhere. We are doing what we can to support the bus industry, but it would be good if Westminster did the same thing.

What steps can the Scottish Government take to encourage the continued development of low-omission green buses?

This Friday is the closing date for bids for our second Scottish green bus fund. The green buses that are purchased with the support of that £2 million fund will add to the 48 green buses that were purchased through the first Scottish green bus fund. We intend to run further rounds of the fund in future. In addition, the low-carbon vehicle incentive in the bus service operators grant, which I have just mentioned, further encourages operators to invest in green buses through a payment rate that is double the rate for standard diesel buses.