Oil and Gas Revenues (Forecasts)
In the parliamentary debate just before the recess, I made it clear that the Scottish Government intends to publish its third “Oil and Gas Analytical Bulletin” in the coming weeks. It will set out the impact of recent North Sea developments on the outlook for future production and revenues.
It is now well over a year since the Scottish Government published forecasts for oil and gas revenues, and it is a full calendar month since the cabinet secretary promised to publish revised forecasts. What has taken so long? Has it taken a while to cook the books?
It must have taken Mr Gray every moment since 26 March to think of that terribly inventive line—that creative and cheerful contribution to the debate. I said on 26 March that we would publish the “Oil and Gas Analytical Bulletin”—which will be our third—in the coming weeks, and that is exactly what the Government will do.
Does the cabinet secretary agree that vast wealth remains in the North Sea, and that only with independence can we ensure that the mistakes and mismanagement of Westminster are not repeated, by establishing an energy fund and saving a proportion of Scotland’s natural wealth for future generations?
Maureen Watt makes the clear point that there are up to 24 billion barrels of oil still to be recovered from the North Sea, with a potential wholesale value of up to £1.5 trillion. All the doom and gloom about oil and gas that we hear from Opposition spokespeople is in stark contrast to comments from people including the Prime Minister, who comes to Aberdeen and tells us that we should celebrate the fact that we have significant opportunities remaining in the North Sea oil and gas sector.
Why did the second “Oil and Gas Analytical Bulletin” not have any revenue figures in it? What is the deadline for the third bulletin?
I said that we would publish the bulletin “in the coming weeks”, and that is exactly what we will do. The second bulletin covered a variety of questions in relation to the North Sea oil and gas sector. I know that Mr Brown is terribly keen on constant revision of estimates, figures and statistics on all those questions. I gently point out to him that the Office for Budget Responsibility, which he holds in such high regard, has chopped and changed its figures on a variety of indicators—not least on the pathetic economic growth that has been delivered by Mr Brown’s Administration since 2010.
Does the cabinet secretary agree that, if we are truly to get the benefits of oil and gas for our communities throughout Scotland, we need to consider a national training strategy so that people can get the skills to get the jobs in that sector?
I agree entirely with Mr Rowley. I have seen the emergence of two things around the country in recent months. First, there is the energy skills academy approach. The Government has supported that through its provisions and by working in partnership with the industry and with our further and higher education institutions, which are working on ensuring that we have in Scotland the right skills mix that will allow us to make the most of the oil and gas opportunities.
Question 2, in the name of Michael McMahon, has been withdrawn. The member has provided an acceptable explanation.
Scottish Enterprise Chief Executive (Meetings)
Ministers and senior officials regularly meet the chief executives of all our agencies. As well as attending meetings, including that of the Scottish Enterprise industry board chairs on 26 March, in which I participated along with the Scottish Enterprise chief executive, I hold quarterly meetings with Dr Lena Wilson. The next meeting is scheduled for this afternoon. Other ministers also regularly meet Dr Wilson to explore how to capitalise fully on Scotland’s economic potential in growth sectors and growth markets.
What criteria do Scottish Enterprise and Scottish Development International apply to grant funding for companies that are locating in Scotland, in particular regarding their providing good terms and conditions for employees by avoiding such things as the imposition of zero-hours contracts and ensuring that decent salaries are paid?
The support that Scottish Enterprise offers to companies is increasingly focused on ensuring that the investment that we make from the public purse brings with it economic benefits for the locality and for the individuals who are involved. That assessment of support is based on a number of criteria, not least of which is the added value that can be contributed by the business to the economy.
Healthcare Improvement Scotland (Meetings)
Ministers and Government officials regularly meet representatives of all health boards, including Healthcare Improvement Scotland, to discuss matters of importance.
The minister will know that Healthcare Improvement Scotland has conducted 24 inspections of care for the elderly since its inspection programme began two years ago. Through that process, hospitals have been asked to make more than 300 improvements. In response to my freedom of information request, Healthcare Improvement Scotland has confirmed that only 14 of the improvements have been signed off as complete by the inspectors. Given that finding, is the minister confident that Healthcare Improvement Scotland has the resources and the powers to ensure that the failings do not continue and to ensure permanent change for the better for elderly and vulnerable patients in our hospitals?
Duncan McNeil will be aware that the inspection of older people’s care in acute hospitals was introduced two years ago in order to identify where there are deficiencies in the system and to ensure that health boards then take appropriate action to address deficiencies that are found during the inspection process. A key aim is to drive up standards in how older people are cared for in our acute hospital settings; the inspection process is an excellent way in which to achieve that.
Alternatives to Superfast Broadband
The digital Scotland superfast broadband programme, underpinned by £410 million of public and private sector investment, will extend access to superfast broadband infrastructure to 85 per cent of premises by 2015-16 and more than 95 per cent by 2017-18. In parallel, we have established community broadband Scotland, a £5 million initiative that is supporting the development of community-led schemes in those areas least likely to have a superfast service delivered by the main programme. More generally, ADSL and satellite broadband services are currently available to almost all premises in Scotland.
Would independence provide the opportunity to impose a universal service obligation for broadband that would leave no areas of the country uncovered? I have a personal interest, as I am currently living in one of the remaining 5 per cent of premises.
This is an important point, and Labour members might be well advised to listen to the answer. Stewart Stevenson is right to say that independence, in providing the opportunity to align policy, taxation funding and regulation, could help to deliver a more coherent overall approach to ensuring access to broadband right across the country. An extended universal service obligation for broadband could certainly play a part in that.
Levenmouth Rail Link
The 2008 strategic transport projects review guides our transport investment. The review concluded that the reintroduction of the Levenmouth rail link would have benefits at the local and regional level rather than nationally. Accordingly, as it is primarily national priorities on which we are focused, Levenmouth, though the scheme has merits, does not at this stage feature as a Government priority.
The cabinet secretary will be aware of the long-running campaign for the reintroduction of a passenger and freight rail link to Levenmouth. Levenmouth is the largest conurbation in Scotland that does not have access to a rail link, so there is a strong economic and social case. I recognise that the rail link is not at present on the list of the Government’s strategic projects for the reasons that the cabinet secretary has given. However, in light of major developments in the area, such as the energy park at Methil and the expansion of Diageo in Leven, does she recognise that there is now a strong case for reviewing the rail link among the Government’s transport priorities, given that an infrastructure project of that size will not be able to go forward without financial backing from the Scottish Government.
In my original answer, I recognised that there are merits associated with the scheme, and I would repeat that view. Scottish ministers are, of course, willing to consider rail interventions that provide a positive appraisal arising from any study based on the Scottish transport appraisal guidance, subject to an affordable business case that takes account of the impact on the wider rail network. Obviously, the responsibility to demonstrate the need for that rail link would lie with the promoter, and I suggest that the promoters of the scheme discuss how the proposal currently fits with local and regional transport priorities and consider the possibility of refreshing the 2008 STAG-based study for Levenmouth. I know that the Minister for Transport and Veterans would be happy to engage further with Claire Baker and other interested members along those lines.
Edinburgh Airport (Weekend Flights)
The Scottish Government has had no discussions with Edinburgh Airport Ltd specifically about the number of weekend flights between 11.00 pm and 5.30 am.
Edinburgh Airport has recently announced that my constituents in Sighthill, Colinton, Oxgangs and Fairmilehead will suffer increased aircraft noise during the night as a result of runway maintenance. Will the Deputy First Minister seek assurances that work on the runway will not overshoot the planned three weekends and that there are no future plans that will necessitate further changes to the original flight plans?
I am happy to pass on those concerns and questions to Edinburgh Airport and ask it to consider responding directly to Gordon MacDonald. I understand that Edinburgh Airport has timed what are essential maintenance works to minimise the impact on its operations and on local residents, with only a very small number of scheduled flights affected.
College and University Places (Fee-paying Foreign Students)
The number of international students has no direct impact on the number of places for Scottish and European Union students. On our behalf, funding for places at Scottish colleges and universities is distributed by the Scottish Further and Higher Education Funding Council. It does that by providing a number of full-time equivalent funded places each year specifically for Scottish and EU students. It is for colleges and universities to decide how many places they will offer fee-paying international students over and above the funded places that have been specifically allocated for Scottish and EU students. Neither international students nor students from other parts of the United Kingdom are able to access those funded places.
I am not sure whether I should thank the minister for that reply.
Before members on the Labour benches applaud that, I have to correct it and repeat what I said: the number of international students does not affect the funded places that exist for Scottish and EU students.
Renewable Energy (United Kingdom Share)
The figures highlight the importance of sustained investment and a sustained policy commitment to the development of renewable energy sources to enable the UK to achieve its targets. Central to that is ensuring that the UK Government’s electricity market reform proposals do not in any way undermine investor confidence further than they have already done.
Does the cabinet secretary share my views that the UK Government’s decision to give a vast subsidy to the Hinkley Point nuclear power station rather than make sufficient investment in renewable energy generation is likely to drive up and not lower energy costs?
The decision that has been arrived at on the public subsidy for Hinkley Point is a bizarre commitment by the UK Government, with an estimated subsidy of £35 billion and a support contract that will last for 35 years, compared with the 15 years for new renewable generation. Given the scale of that commitment and the significance of its cost, and as a consequence of the price that has been agreed by the UK Government, the decision has the potential to be a very negative factor in relation to energy costs.
Before we move to the next item of business, members will wish to join me in welcoming to the gallery ambassadors and high commissioners representing members of the Association of Southeast Asian Nations. [Applause.]