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Chamber and committees

Meeting of the Parliament

Meeting date: Thursday, May 23, 2013


Contents


General Question Time


Flooding (Fife)



1. To ask the Scottish Government when it last had discussions with relevant officials concerning flooding in Fife. (S4O-02155)

The Minister for Environment and Climate Change (Paul Wheelhouse)

The Scottish Government spoke to local authority officials regarding flooding in Fife in the aftermath of the flooding incidents in October last year. My officials are in regular contact with officials from local authorities across Scotland via the various stakeholder groups that have been established to assist with the implementation of the Flood Risk Management (Scotland) Act 2009, as well as through the local authority Society of Chief Officers of Transportation in Scotland flood risk management group. When flooding events happen, the Scottish Government will be in contact with responders such as Fife Council to understand the nature of the impact.

Helen Eadie

I thank the minister for that answer and for the very good debate that we had on the issue just a few weeks ago. How does the minister propose to deal with the apparent intransigence of a variety of officials in Fife Council, Network Rail, Scottish Water and other organisations who appear not to be having serious regard to the repeated flooding that is affecting many residents in both private and public sector housing in Rosyth and Cowdenbeath?

Paul Wheelhouse

I recognise the problems in Cowdenbeath. In the debate, the member mentioned that there had been two separate flood incidents in Cowdenbeath in the space of two years and that some people were affected again just as they were moving back into their properties, which was very distressing for them.

I recognise the role that Scottish Water has had in the discussions that the member has been involved in to date on behalf of her constituents. In accordance with the views of SEPA in the Government’s 2005 consultation on investment needs in the water industry, we have agreed with Scottish Water to focus on where there is a risk of regular internal sewer flooding. Many properties in Cowdenbeath and Rosyth will have been affected in that way, and I am sure that the member will agree that internal sewer flooding should remain our priority.

The Deputy First Minister has asked officials to examine how Scottish Water schemes should be prioritised in the next investment period to identify how we can tackle those problems. I am happy to meet the member if there is anything specific to Cowdenbeath and Rosyth that I can help her with.


Fuel Poverty



2. To ask the Scottish Government what its response is to “The UK Fuel Poverty Monitor 2013”. (S4O-02156)

The Minister for Housing and Welfare (Margaret Burgess)

I welcome the report and its support for the action that the Scottish Government is taking to tackle the scourge of fuel poverty—in particular, the continuation of direct Government funding to tackle fuel poverty and for energy efficiency schemes in Scotland, in contrast to the withdrawal of Government funding in England, where the United Kingdom Government’s fuel poverty programme budget has been reduced from £366 million in 2010-11 to zero in the current year.

Mike MacKenzie

Does the minister share my disappointment that the previous carbon emissions reduction target and community energy saving programme schemes failed to tackle fuel poverty in many rural parts of Scotland? Does she believe that the combination of Scottish Government support and the energy company obligation will be more effective in tackling the high levels of fuel poverty in Scotland’s rural areas, particularly our islands?

Margaret Burgess

The Government is committed to enabling all parts of Scotland to benefit from Great Britain-wide programmes that consumers pay for through levies and bills.

CERT and CESP provided no protection or incentive for investment in rural and remote areas but, with Scottish Government funding, we helped to mitigate the effects of that in Highland, the Scottish Borders and Eilean Siar. Recent figures show that the percentage of homes that received professionally installed loft or cavity wall insulation increased more than threefold between the first and final rounds of CERT. At the fuel price summit in January, I told Ed Davey that Scotland must receive its fair share of the new energy company obligation.

Our new home energy efficiency programmes for Scotland are focused on addressing the areas that are worst affected by fuel poverty. We are providing £60 million to councils to lever in the energy company investment, which councils can use to assist with the higher costs of delivery in remote areas if they wish to do so.

Evidence from the pilot schemes, which were launched in December, suggests that rural and remote areas are able to develop schemes and attract investment. The Scottish Government is currently funding a pilot project in Argyll and Bute, and we are scrutinising the report that has been provided by the Office of Gas and Electricity Markets on the delivery of ECO to ensure that all parts of Scotland are benefiting.

If we can have shorter questions and answers, we will proceed to the end of the questions available to be called.

Liam McArthur (Orkney Islands) (LD)

The minister will recall that, during the fuel poverty debate in January, I raised with her an initiative in Orkney that looked to harness renewables resources to develop a tariff targeted at fuel-poor households. She indicated that she would speak to the fuel poverty forum about how support might be provided to that initiative. Will she update the Parliament on progress in those discussions or write to me in due course?

That work is still on-going. A discussion has yet to take place, but I reassure Liam McArthur that I have not forgotten about the commitment that I made. It will be discussed at the next meeting of the fuel poverty forum.


Film and Television Industry



3. To ask the Scottish Government what recent action it has taken to support the Scottish film and television industry. (S4O-02157)

The Cabinet Secretary for Culture and External Affairs (Fiona Hyslop)

In recent weeks, to support film and television content development, Creative Scotland’s £4 million film and television funding programme for 2013-14 has opened for applications.

On infrastructure, I followed up meetings that I had in February with the chief executive of Scottish Enterprise and the board of Creative Scotland with a meeting with Iain Smith, who is the chair of the British Film Commission, and a further meeting with Creative Scotland and Scottish Enterprise. A delivery group has been established involving the Scottish Government, those agencies and Scottish Development International to take forward work on live opportunities for film and television production from the private sector, which I cannot share in detail with the Parliament at this stage.

I attended the European culture and audiovisual council in Brussels on Friday 17 May, where there were a number of discussions of relevance to the film and television sector, including the implications of the proposed transatlantic trade and investment partnership between the United States of America and the European Union.

Patricia Ferguson

I thank the cabinet secretary for that update. She is aware of my interest in the area and my concern that Scottish producers may not be able to capitalise on the high-end tax credit that came into place on 1 April. Many regions in England, Northern Ireland and Wales now have studio complexes that allow their producers to capitalise on that tax credit. When will Scotland be able to take advantage of that provision? When can we expect to see a film studio complex, and is it likely to be in Glasgow?

Fiona Hyslop

We have many advantages in relation to the sector, particularly on skills, but Patricia Ferguson is right to identify our need for a film studio complex, particularly one with an effective sound studio.

For commercial confidentiality reasons, I cannot go into any details on progress on the discussions, but I reassure the member that the delivery group of all the different public agencies is in active discussions with a range of organisations. I hope that those discussions will give an opportunity for positive news in the area at some point in the future.

I undertake to keep Patricia Ferguson regularly informed. She has taken a regular and keen interest in the area. She is right that the tax relief changes create a great opportunity for us to capitalise on not only film production but the potential for television series production. The regular employment that that could bring to the industry is a great opportunity for Scotland’s economy as well as for the industry.


Social Housing (New Homes)



4. To ask the Scottish Government what help is available to local authorities and social housing agencies to build new homes. (S4O-02158)

The Minister for Housing and Welfare (Margaret Burgess)

The Scottish Government is committed to working in partnership with local authorities and housing associations to develop much needed, high-quality social and affordable housing. We are investing £860 million in housing supply in the current three-year period and, last year, we introduced a three-year resource planning approach, bringing the council and registered social landlord funding streams together into one budget for the first time. That approach enables each council to exercise its strategic role more flexibly.

I ask the minister to comment on the continuing Scottish Government investment in Paisley and how it is taking forward the Government’s ambitious house building plans.

Margaret Burgess

We are doing all that we can to boost housing supply throughout Scotland. Despite Westminster’s cut in our capital budgets, we will deliver at least 30,000 affordable homes during this parliamentary session.

We have been able to allocate funding of more than £18 million for Renfrewshire Council in the current three-year period. I understand that the vast majority of that will be invested in the Paisley area, including, for example, in a further phase of the Shortroods development near Glasgow airport, which will deliver 42 affordable homes and help the area’s regeneration.

The resources that are available for future allocations will depend on future budget decisions, but we have been able to provide a minimum planning assumption of more than £9 million for Renfrewshire Council for the next three-year period to March 2018.

Question 5, in the name of Rhoda Grant, has not been lodged. The member has provided an explanation.


Rail Passenger Franchise



6. To ask the Scottish Government what it is doing to encourage a mutual, co-operative or not-for-dividend organisation to bid for the Scottish rail passenger franchise. (S4O-02160)

The Minister for Transport and Veterans (Keith Brown)

The Scottish Government welcomes all types of bids for the next ScotRail rail passenger franchise, including those from a mutual, co-operative or not-for-dividend organisation. To ensure an open and transparent procurement process, no single bid or bid type can be given greater encouragement than any other.

Ken Macintosh

The Scottish Government rightly talks about promoting community benefit clauses in procurement contracts. Will the minister consider doing similarly with the tendering process for the Scottish rail passenger franchise, given that, this year, the subsidy for the franchise is rising from less than £450 million to more than £511 million? Does he not believe that that would help to secure better value for passengers and communities?

Keith Brown

There are substantial aspects of the bidding process that will consider community benefit clauses within the franchise process. The increased amount reflects the commitment of the Scottish Government to growing rail services. A record 83 million passengers are using rail this year.

On the substantive point, the Railways Act 1993 prevents the Scottish Government from encouraging a public sector bid. That is a Railways Act that the Labour Party never changed during the 13 years when it had the opportunity to do so. If Ken Macintosh, like others in the Labour Party, prefers 100 years of Tory rule to the chance to change those things in Scotland, that will remain the way things are for the foreseeable future. He should decide what he wants. If he wants a public railway bid, the only way he can ensure that is in an independent Scotland.

Given that such a business model would require access to bank funding, and that it would be very difficult to raise equity funding, would such a model effectively require the Scottish Government to act as a lender of last resort?

Keith Brown

The legislation that I have mentioned specifically prohibits public sector bids, not not-for-profit bids. The member is right to say that financial backing would be required, as with the current franchise. The Government could not provide that financial backing. If that was to happen, it would only be in the event of the franchise failing and its becoming the operator of last resort, with the Government taking over the process. Any bid from any organisation would have to have financial backing; the Scottish Government could not provide that.


Housing (Tenant Deposit Schemes)



7. To ask the Scottish Government whether private landlords had lodged all eligible deposits with tenant deposit schemes by the deadline of 15 May 2013. (S4O-02161)

The Minister for Housing and Welfare (Margaret Burgess)

Up to the end of April this year, more than 140,000 deposits, with a total value of £89 million, had been lodged with one of the three approved tenancy deposit schemes. Those are the most up-to-date figures that are available. A comparison with the number of properties that private landlords have registered with local authorities suggests that some landlords still need to lodge deposits. The Scottish Government will continue to work with the scheme providers and other stakeholders to encourage compliance with the new law in that regard.

Elaine Murray

The minister will be aware of reports that only half of landlords registered their deposits by the deadline. Can she advise us how the scheme is being policed? What sanctions will be taken against the private landlords who have not complied with the legislation?

Margaret Burgess

Private landlords have a duty to protect tenants’ deposits under one of the three schemes. If they fail to do so, a sheriff court may order the imposition of a financial penalty on the landlord of up to three times the deposit.

In addition, local authorities have the power to take appropriate action where there is evidence of unregistered landlords or properties, or of non-compliance with tenancy deposit legislation. That may be taken into account as part of the fit and proper test for houses in multiple occupation licensing and landlord registration. We are promoting the scheme, and we are keeping a close eye on what is happening.


Waste Incineration (Health Implications)



8. To ask the Scottish Government what action is being taken to assess the health implications of waste incineration. (S4O-02162)

The Minister for Public Health (Michael Matheson)

Reviews were conducted in 2009 by the Health Protection Agency and Health Protection Scotland, which came to similar conclusions. The Health Protection Agency review concluded that the evidence suggests that

“any potential damage to the health of those living close

to incinerators

“is likely to be very small, if detectable.”

Health Protection Scotland continues to monitor research in the area to maintain awareness of new developments and it is collaborating in relevant new research. That includes two UK-wide studies that are being taken forward by the small area health statistics unit at Imperial College.

Elaine Smith

I thank the minister for his answer, but I am afraid that it will not give huge comfort to my constituents. He may be aware that one of the new studies is research by the Health Protection Agency in England on the potential links between incinerator emissions and health outcomes. Will the minister consider conducting a similar study in Scotland to look at possible health impacts of waste incineration and, in particular, technologies such as pyrolysis plants, one of which Shore Energy proposes to build in my constituency?

Michael Matheson

I understand the concerns that Elaine Smith has raised. I mentioned that we are part-funding one of the studies—both of which are UK-wide studies—that are looking at some of the health outcomes for those who live close to incinerators. If it would assist the member in informing her constituents on the matter, I would be more than happy to write to her to give more details of exactly what the areas of research are about and how they will be taken forward over the next couple of years.


Independence (Corporation Tax)



9. To ask the Scottish Government what level it plans to reduce corporation tax to in the event of Scotland becoming independent. (S4O-02163)

The Cabinet Secretary for Finance, Employment and Sustainable Growth (John Swinney)

It was a recommendation of the fiscal commission working group that the Scottish Government should take forward a programme of work to identify and develop key economic and fiscal policy opportunities to deliver economic growth, resilience, fairness, opportunity and sustainability. Corporation tax would be an important lever used responsibly as part of a wider design of tax policy set to promote investment and create jobs.

In 2011, the Scottish Government undertook analysis that modelled the impacts of a modest 3 percentage point reduction in the headline rate of corporation tax. It indicated that such a policy could increase the level of gross domestic product in Scotland by 1.4 per cent and increase employment in Scotland by 1.1 per cent or 27,000 jobs after a 20-year period.

Independence would give the Scottish Government access to a wide range of policy levers that could be used to boost sustainable economic growth.

Neil Bibby

Cutting taxes for big business more than the Tories is not a progressive policy. It is also a nonsense for the Government to suggest that it will increase spending on welfare and public services when, at the same time, it wants to create tax haven Scotland for big business. That is not Laffer curve economics; it is laughable economics. Is it not the case that the SNP tries to talk the language of social justice but falls down when it comes to the crunch?

John Swinney

I give Mr Bibby, after his considered question to me, these words, which are from one of his friends—I think he is one of his friends, although he may not be after I have read this quote:

“We have cut corporation tax twice and I want to go further. We will reduce the tax again when we are able.”

Those words are not mine; they are the words of Gordon Brown, the former Prime Minister.

Mr Bibby talks about tax havens. For heaven’s sake—Mr Bibby and his Government had 13 years of an opportunity to get companies to pay their corporation tax and never managed to get them to do it.

Finally, I say to Mr Bibby, who goes on about social justice, that the Labour Party presided over the Government that made the United Kingdom the fourth most unequal country in the world, and it wants to keep it that way. We want to do things differently for the benefit of the people of Scotland.


Transport Budget (Walking and Cycling)



10. To ask the Scottish Government what proportion of its transport budget is spent on infrastructure to increase walking and cycling rates. (S4O-02164)

The Minister for Transport and Veterans (Keith Brown)

In the current financial year, the proportion of the transport budget that is spent on cycling and walking infrastructure will be 0.7 per cent. In addition, as part of our trunk roads programme, upgrading of cycling and walking facilities is included in each contract.

The transport budget is not the only contributor to infrastructure. As part of the local government settlement, £5.6 million will be allocated to local authorities for cycling, walking and safer streets projects. Funding is also available from the climate challenge fund for community cycling projects.

Please be brief, Ms Johnstone.

Alison Johnstone

The 4,000 or so people who pedalled on Parliament on Sunday to call for increased investment in cycling were disappointed that the minister was unable to attend. Can he reassure those people, and all those who want cycling to be safe for all from eight to 80 years, that his Government is committed to increasing investment to the levels that will enable it to deliver its own commitment to 10 per cent of all journeys being made by bike by 2020?

Please be brief, minister.

Keith Brown

We will shortly produce the cycling action plan for Scotland, which I know the member has an interest in. That will contain our plans—not the definitive last word on our plans—to ensure that we achieve those targets and to ensure that we try to increase the number of people cycling not just for recreation, which there has been a real increase in, but for commuting to work and for other purposes. We are committed to those things and I am pleased that my colleague Paul Wheelhouse was able to be there on Sunday to meet the demonstrators.