Finance, Employment and Sustainable Growth
Good afternoon, everyone. The first item of business is portfolio questions. If we are to get as many members in as possible, I would be grateful for short questions and succinct answers, please.
Employment (Christmas Temporary Contracts)
To ask the Scottish Government what it is doing to provide permanent employment opportunities for people who will be on temporary contracts during the Christmas period. (S4O-02622)
The Scottish Government is helping businesses to create jobs all year round, through capital investment in infrastructure development, public procurement, business and export support services, and training and skills programmes. Scotland also offers the most competitive business tax regime in the United Kingdom, which frees resources to enable businesses to create permanent jobs.
People who are employed on short-term contracts over Christmas tend to be low paid and to have unsociable hours. When the Government gives grant funding to businesses, will it make it a condition of funding that employees and staff who are employed by subcontractors are paid the living wage, are not placed on zero-hours contracts and have reasonable employment conditions?
As we have made clear on several occasions, the economic development agencies in Scotland, which deal with grant funding such as regional selective assistance, take account of such matters. In particular, zero-hours contracts are not consistent with successful grant funding through RSA, so I think that the matter has already been taken into account.
On employment over the festive period, it is reasonable to expect some companies to need, first, to ask staff to work longer hours to reflect the greater volume of work that requires to be done, and secondly, to take on temporary staff. In other words, that is part of the market, and we recognise that. At the same time, we must ensure, as far as it is within this Parliament’s powers to do so, that all employees are properly and fairly remunerated for said work.
In the context of good employment practice, will the minister say what further steps the Scottish Government is taking to address the unacceptable and illegal practice of blacklisting?
We and, I think, all parties in the Parliament view blacklisting as a totally unacceptable practice. The practice has received a great deal of attention recently, which is fortunate. As Mr Eadie knows, under the current constitutional arrangements employment law is reserved to the UK Government. I am confident that any Government of an independent Scotland will deal with blacklisting in a way that is as effective as Mr Eadie and the vast majority of members would want it to be.
Has the minister seen the recent research that shows that workers who are employed on zero-hours contracts are the happiest with their work-life balance of any workers? Does he think that zero-hours contracts are bad in every case?
The answer to Mr Fraser is no, I have not seen that research. When I read it, I will apply a considerable degree of sceptical forensic analysis thereto. It seems a dubious proposition that people on zero-hours contracts, who by their nature tend to be on low pay, should somehow be the happiest people on the planet. That seems to be a somewhat dubious proposition, even—if I may say so—for a Conservative.
Will the minister ensure that there is an anti-blacklisting provision in the Procurement Reform (Scotland) Bill, rather than just in guidance that is provided outwith the bill?
I am a lawyer, but I think that it is important that we in the Parliament should not be legalistic. The objective that Mr Findlay wants to achieve is one that we all share, as our broad approach. Whether the matter is in the bill—
So that is a no.
I am giving Mr Findlay the answer; if he wants to hear it, he should listen.
Whether such issues are dealt with through primary legislation, subordinate legislation or guidance is a matter of judgment in each case. In this case, it is a matter for the minister who is handling the legislation. Mr Findlay should rest assured that we are determined to tackle blacklisting and that we will take all appropriate steps to do so.
Independence (Economy)
To ask the Scottish Government what its position is on the claim by the Institute for Fiscal Studies that an independent Scotland would face a fiscal gap of 1.9 per cent of national income. (S4O-02623)
The Institute for Fiscal Studies analysis confirms that Scotland is in a stronger fiscal position than the United Kingdom. It also shows that Scotland is no different from any other developed country in facing long-term fiscal challenges. The UK as a whole is projected to be in deficit in every one of the next 50 years. However, the IFS projections assume that we will continue to be locked into a future of low growth, population decline and the UK Government’s failed economic policies. Under independence, we will have control of the economic levers that are required to increase productivity and exports and put our public finances on a long-term, sustainable footing.
Assuming for the purposes of my question that policies such as reducing corporation tax would grow the economy in an independent Scotland, growth would not happen overnight. How does the cabinet secretary propose to fill the gap in the short term? Will that be done through increased taxation, increased borrowing or reduced public spending?
There are two refreshing points to make about Dr Murray’s question. The first is that she is engaging in the discussion about the possibilities that will arise when we have the powers of independence in Parliament. I welcome her to the argument.
Secondly—this is no surprise to me, given her position on many of these issues—Dr Murray is considering the arguments around the possibilities of delivering economic growth. She has moved away from the UK coalition’s sterile argument, which has been replicated by her party’s leadership in the Scottish Parliament, that the only opportunity to strengthen public finances will be through increased taxation or reduced public expenditure. We will have the opportunity to deliver economic growth. That is what this Government believes in, and it is why we think that the powers of independence will enable Scotland to grow the economy and repair the public finances that have been left in such a weakened position by the failures of UK Governments.
Has the Scottish Government carried out financial projections for an independent Scotland post 2016-17?
The Scottish Government has openly published its projections to 2016-17 in the white paper. They show that the platform of the establishment of an independent Scotland will put Scotland in a stronger financial position than the rest of the UK. It will then be up to the Scottish Parliament, the Scottish Government and the whole of the community of Scotland to create the strongest economic opportunities that we can as a consequence of the decisions that we take with the full economic levers of independence.
After independence, how will Scotland be placed relative to other countries in terms of its wealth, and how will it compare to the rest of the UK?
If we take the analysis of wealth per capita, Scotland would be ranked as the eighth richest nation in the Organisation for Economic Co-operation and Development grouping. That shows some of the financial and economic strengths of an independent Scotland. With those foundations, an independent Scotland would be able to take its own decisions about how to strengthen economic performance and create a country that has greater economic opportunities than exist in the rest of the UK.
The 1.9 per cent figure in Dr Murray’s first question refers to the IFS’s most optimistic scenario, which assumes 2.2 per cent productivity growth and three times the expected net migration, and uses Mr Swinney’s own best-case predictions for oil revenues.
Question, please.
However, the IFS still finds that we would have to make a choice between tax rises or cuts in public expenditure. Which would it be?
In a sense, I rest my case on my answer to Dr Murray. Members on Labour’s front bench seem to be obsessed by the choice between increasing taxation or reducing public expenditure. This Government wants to use the economic levers of independence to strengthen our country’s foundations and ensure that we create the opportunities that people in Scotland have a right to expect. I would have thought that that was the type of dynamic economic agenda that might have appealed to people of Mr Gray’s political outlook. However, it seems that the coalition that he has established with his allies in the Liberal Democrats and the Conservative Party in the better together campaign is influencing all Labour thinking to the extent that all that Labour can think about is tax rises or cuts in public expenditure. It is time for Mr Gray to look more broadly at the debate and have some imagination about what is possible in this country.
Sustainable Development
To ask the Scottish Government what account the Cabinet Secretary for Finance, Employment and Sustainable Growth takes of sustainable development in his policy framework for sustainable growth. (S4O-02624)
Sustainability is a central feature of our framework for economic growth, and has been since the Government came to power in 2007. As the Government’s economic strategy sets out, sustainable economic growth centres on
“building a dynamic and growing economy that will provide prosperity and opportunities for all, while ensuring that future generations can enjoy a better quality of life too”.
That drives policy priorities, including our annual budget process, with progress being monitored through Scotland performs and our national performance framework.
In view of the aim of the national performance framework to have
“a flourishing and prosperous Scotland”
for all, can the cabinet secretary explain why the preferred term in the Scottish Government’s finance policy is “sustainable economic growth” when the term “sustainable development”, which encompasses social, economic and environmental strands and, in the view of many people, is a clearer definition that has a more robust legal status, better encapsulates our future direction and, indeed, the dynamic agenda that Scottish Labour is working towards?
My answer relates to the framework that we have established as part of Scotland performs. We have, which has been helpful, had a number of opportunities to discuss this question in the group that I have established to consider the review of the national performance framework, in which Claudia Beamish is a welcome participant.
Essentially, we have what would be described as a balanced scorecard, on which we bring together a range of indicators that reflect considerations of social, economic and environmental impact as a consequence of the policy interventions that we make. The Scotland performs framework is designed to give exactly the kind of balance in our policy choices that Claudia Beamish has raised in her question. That is an approach to which I am entirely committed, because it gives us an opportunity to consider, within our policy choices, the implications of different measures and steps and how they can contribute to improving outcomes for people in Scotland.
Public Service Reform (North East Scotland)
To ask the Scottish Government what assessment it has made of the impact of public service reforms on the north-east. (S4O-02625)
Public service reform is delivering improvements in outcomes for people across Scotland. In the north-east, community planning partnerships are bringing partners and communities together to deliver better outcomes. Their single outcome agreements provide a clear plan for place and a focus on prevention. For example, the Aberdeenshire Council single outcome agreement has identified £3 million that is being invested in the development of extended early years provision to provide early intervention in the lives of children and families who require additional support.
Another example is Dundee City Council and NHS Tayside’s establishment of an early intervention team to offer preventative support for families who are on the edge of crisis. That is groundbreaking in that it brings Barnardo’s, Children 1st, the Aberlour Child Care Trust and Action for Children together physically to deliver a joint service.
I thank the minister for his response, which does not quite answer what I am about to ask him.
There has been a growing concern that, under centralisation of services including the police, forensics and fire and rescue, Aberdeen and the north-east are experiencing the loss of a number of key public sector jobs. The minister will be aware that the Scottish Fire and Rescue Service is currently undertaking a review, with plans to close five of the existing eight control rooms in Scotland, and concerns have been expressed to me that, because of the buoyant north-east economy, a decision on the control room in Aberdeen might be influenced by the low unemployment rate in that city. Can the minister assure me that decision making around such public service reforms is independent of such factors? Does he believe that Aberdeen and the north-east should be given a fair share of public sector jobs?
I am glad that Nanette Milne refined that question somewhat from her opening question. I focused on the Government’s preventative agenda, which we achieve in partnership, so we will turn to outcomes that matter in the north-east.
We have policing plans, fire plans and single outcome agreements that focus on outcomes that matter and which move away from inputs, such as numbers of staff, stations or control rooms. What matters is outcomes—the effectiveness and efficiency of public services—around the four pillars of public service reform: prevention, integration, workforce development and improved performance with existing resources. The Government, its agencies and partners continue to work in partnership to focus on outcomes and to make the best use of resources. As part of that, we would welcome reduced crime, efficient responses to local issues and more fire prevention and community safety work. That is a proactive agenda.
I am sure that Nanette Milne will be reassured by the consultation on the restructuring of some individual services, which will leave a strong footprint throughout Scotland, particularly in the north-east.
Brief questions and answers would be appreciated, please.
Economic Development (Motherwell and Wishaw)
To ask the Scottish Government what recent action it has taken to encourage economic development in Motherwell and Wishaw. (S4O-02626)
The Scottish Government is committed to supporting and encouraging sustainable economic growth in North Lanarkshire, including Motherwell and Wishaw, and we are using all available levers to deliver that growth. Last Friday, we announced the 22 successful projects that are being funded by the regeneration capital grant fund, including the Cumbernauld community enterprise centre and the Forgewood community centre in north Motherwell, which will receive £5 million to develop new multifunctional community spaces, thereby kick-starting renewed physical regeneration that will benefit some of North Lanarkshire’s most deprived communities.
More than 20 years on, Europe’s largest brownfield site at Ravenscraig is making welcome, but slow, progress. A college, a sports facility and some housing have been developed, but huge untapped potential remains. What measures are being put in place to support the proposed national priority status for Ravenscraig in order to accelerate development and encourage potential investors when the third national planning framework is published?
That is a fair question. We share the same objectives as Mr Pentland in that respect. We have made a commitment to the area and are working with North Lanarkshire Council. Phase 2 of the Ravenscraig tax increment financing project, which ministers provisionally approved in March 2011, is one of four pilots that have been approved by the Scottish Government. It includes £73 million of public infrastructure investment, which should lever in £425 million of private investment and create more than 4,000 full-time equivalent jobs.
The regeneration of Ravenscraig continues apace. Recently, £2 million was invested in working up the technical design and costings of area planning briefs for phase 2 developments with 93,000m² of retail and leisure facilities and 10,500m² of commercial space.
In addition, there has been a great deal of activity by Scottish Enterprise in support of small businesses and larger businesses and a great deal of effort by the business gateway, as well. I will write to Mr Pentland on that.
We are agreed that we must do everything we can to help the regeneration of Ravenscraig and the surrounding area. We are making good progress towards that objective.
Independence (Demographic Projections)
To ask the Scottish Government what its position is on the demographic projections in the recent Institute for Fiscal Studies report on the fiscal sustainability of an independent Scotland. (S4O-02627)
Developed countries across the world face demographic pressures. Scotland is no different in that respect, but at present we lack the policy levers to respond to that challenge. With independence, we will be able to grow our working-age population by ensuring that young Scots have the opportunity to build a career in Scotland and by making it easier for the highly skilled students who come to study at our universities to work here.
The Institute for Fiscal Studies projections show the costs of remaining part of the United Kingdom. Those simply underline the urgent need for Scotland to achieve independence and have access to the full range of economic policy levers to boost economic growth.
The Scottish Government was, of course, quick to criticise the IFS report, but one point seems to have hit home. In yesterday’s white paper, the Scottish Government appeared to accept that Scotland has a relatively more challenging pensions situation than the UK as a whole. That turnaround has also affected policy, which has switched from talk of a reduction in the pension age to talk of potentially delaying the rise in the age threshold to 67 and leaving it all to a commission, which would report in 2018. Is it not glaringly obvious that, when it comes to pensions in an independent Scotland, the Scottish Government does not know what it is doing, when it will do it and what it will cost?
That was a thoughtful contribution to the debate on the country’s future. In marshalling that information, Ms Goldie inadvertently missed out in her research process the paper called “Pensions in an Independent Scotland”, which the Scottish Government published over the summer. A vast amount of the detail that she talked and speculated about was in that policy paper, which informed the white paper. I am in no way certain about how she reached the conclusions that she has reached.
Pensions in an independent Scotland will be more affordable than those in the rest of the United Kingdom because we allocate a lower proportion of our public expenditure to social protection, as a share of gross domestic product, than the UK does. All that information is marshalled in the independence white paper, which I encourage Ms Goldie to look at again. That would inform her of the opportunities and benefits of independence in safeguarding pensions for people.
Is the cabinet secretary aware not only that the IFS is incapable of making accurate predictions 50 years into the future, as it admits, but that its report was out of date on the day it was published? It excluded the impact of the £4 billion investment in the Kraken field and the 20,000 skilled jobs that that will create by 2017, for example.
That is a fair observation about the report’s timing. However, I will be fair to the IFS. Ms Goldie said that the Scottish Government had attacked the IFS; I encourage her to look at the press cuttings, because she will at no stage find me attacking the IFS. I indicated that, if the IFS projects that the UK’s public finances will be in deficit for 50 years and it applies the same considerations to Scotland as part of the UK, the analysis that it comes up with will hardly be surprising.
The IFS report says—this is material to Mr Gibson’s question—that many of the variables that are used in the projections
“are inherently uncertain and could ... evolve differently if Scotland were independent rather than part of the UK; in addition, they could be substantially affected by the policies chosen by the government of an independent Scotland.”
My point is that an independent Scotland will have a range of options in determining what is the right set of economic measures to take on behalf of the people of Scotland. That opportunity will open up only if we vote yes in the referendum. The IFS report sets out a position that is essentially a subset of the United Kingdom’s failed direction of travel. Independence offers Scotland the chance to chart a new and more prosperous course.
Credit Unions
To ask the Scottish Government what additional support it can give to expand the provision of credit unions across the country. (S4O-02628)
We encourage credit unions to access our third sector business support and development programmes, including just enterprise and the enterprise ready fund.
I thank the minister for his answer and his colleague Mr Swinney for his support for ethical finance more generally. Is the minister aware—not least from the attendance of Mr Swinney’s officials at a recent round-table meeting on ethical finance—of the difficulties that many Scots still have in accessing a local credit union? Some Scots still have no credit union in their locality. Will he look at ways to expand credit union provision, perhaps through supporting rate relief, which Glasgow City Council offers, or through establishing a loan guarantee fund?
Mr Macintosh and I and our respective parties share the objective that, irrespective of where they live, citizens throughout Scotland should have access to a local credit union. He is right to imply that the position is patchy. Some parts, such as Glasgow, have strong and active credit unions, but in other parts, access is not of the same degree. There are more than 100 credit unions in Scotland, but their sizes and capacities vary.
The question is perfectly fair. We are completely determined to ensure that more and more people should be able to access credit unions and proceed to exercise their finances on the principle of thrift, rather than resorting to payday loans, which are the source of such social misery in this country.
Although members such as Kezia Dugdale and John Wilson have been extremely active in campaigning for shared objectives, the tragedy is that we do not have the regulatory powers to introduce a cap on payday loans right now. However, I am pleased that, apparently, the UK Government has been persuaded towards that objective.
Community Councils
To ask the Scottish Government what evidence there is that the community councils short-life working group recommendation
“that there is continued drive aimed at the community and Community Councils for contested Community Council elections”
has been achieved in the recent community council elections. (S4O-02629)
In response to the recommendations, in collaboration with the Convention of Scottish Local Authorities, I have asked the Improvement Service to undertake a project to enhance the role of community councils, which includes a proposal to run pilot projects to increase the number of contested elections.
Does the minister intend to take any further steps to encourage participation in community councils and, in doing so, increase the number of contested elections to community councils?
We will consider the findings of the project and continue to work in partnership with local authorities to support community councils, and we will work on the Government’s empowerment agenda, not least through the proposed community empowerment bill, to give community councils an enhanced role. I hope that that will increase participation in those bodies.
Public Sector Pay (Aberdeen Weighting Allowance)
To ask the Scottish Government what representations it has received regarding a weighting allowance for public sector workers in the Aberdeen travel-to-work area. (S4O-02630)
I am aware of the concerns of public and private sector workers in the Aberdeen area.
This Government has a range of policies to support those who are finding times difficult financially. Our pay policy focuses resources on the lower paid by promoting the Scottish living wage alongside distinctive measures to address low pay. The pay policy also provides employers with flexibility to address local issues though pay where necessary. This Government’s policy of no compulsory redundancies provides support and reassurance to public sector workers. We are also delivering on our commitment to the social wage.
Given the immense pressure on the recruitment and retention of public sector employees, such as teacher and nurses, in the Aberdeen travel-to-work area, does the cabinet secretary think that there should be an allowance similar to the London weighting allowance for such workers?
I recognise the circumstances of public and private sector workers who live and work in the Aberdeen area and in my original answer I outlined a number of measures that the Government is taking to address the issue.
Although we have no current plans to introduce an Aberdeen weighting allowance along the lines that Maureen Watt suggests, some flexibilities exist in our pay policy and in pay arrangements for other public sector staff to address recruitment and labour market issues, whether by grade or locality. We will of course continue to monitor the situation.
Does the cabinet secretary recognise that, in the national health service in particular, changes that were made some nine years ago to replace London weighting with high-cost supplements allow such a measure to be applied to other parts of the United Kingdom? It is open to the Scottish Government to use that model to recognise the exceptional costs that apply to NHS staff in and around Aberdeen and to look at funding and introducing such a system for staff in NHS Grampian.
Within our existing pay policy, there are flexibilities that employers can utilise when considering any particular challenges in the recruitment and retention of staff in individual employment spheres. The opportunity is available to NHS Grampian and other public sector bodies to consider those flexibilities, which are already inherent in our pay policy.
Scottish Enterprise Chief Executive (Meetings)
To ask the Scottish Government when the Cabinet Secretary for Finance, Employment and Sustainable Growth last met the chief executive of Scottish Enterprise and what was discussed. (S4O-02631)
I last met the chief executive and other members of the board of Scottish Enterprise on 11 November to discuss a range of issues that are important to the delivery of the Scottish Government’s economic strategy.
In August last year, the cabinet secretary kindly agreed to come to Inverclyde to hear about the opportunities for development in our area. At the time, he said that the Scottish Government would promote Inverclyde as an area for investment and he acknowledged that we look to be in a strong position to participate in the renewables industry. In January this year, he acknowledged the significant opportunities to expand cruise liner activity at Inverclyde. What action have the Scottish Government and Scottish Enterprise taken to promote Inverclyde as an area for investment?
Mr McNeil highlighted a number of examples. In relation to cruise liner developments, Scottish Enterprise has been working with local partners in Inverclyde to develop the cruise liner proposition at James Watt dock. Another example is that, in the dialogue that we have with a variety of inward investment organisations, Inverclyde is clearly marketed as one of the opportunities and sites for potential development. I am happy to provide Mr McNeil with further detail on our interaction and dialogue in that respect. I will update him on that following this meeting.
Question 11, in the name of Chic Brodie, has not been lodged, although an explanation has been provided.
University Graduates (Employment Outside Scotland)
To ask the Scottish Government what the impact on the economy is of university graduates seeking employment outside Scotland. (S4O-02633)
The vast majority of Scotland-domiciled leavers from Scottish higher education institutions who go into work remain and work in Scotland, contributing to our economy and providing us with value for our investment. We support global mobility and encourage students and graduates to widen their horizons. The Scottish economy benefits from graduates with a cultural awareness, an international perspective, the confidence to work across boundaries and language skills. We welcome students and graduates from further afield, who also contribute to the Scottish economy. We have set out arguments why we should welcome more of those individuals to contribute to the Scottish economy, as well as proposals in that regard.
I recently had a presentation from Robert Gordon University in Aberdeen, which has hooked up with the oil and gas industry—naturally, as that industry is based around it—and is obviously doing an excellent job. Are there other opportunities for individual universities and perhaps departments to hook up with industries or individual firms to ensure that it is easier for graduates to move into employment in Scotland?
An important part of the dialogue on that is about ensuring that the higher education institution community is closely aligned with the needs and aspirations of the business sector in Scotland and the Scottish economy. I am increasingly confident that we are seeing the fruits of that work, which is demonstrated by the way in which institutions are working closely with the business community and industry leadership groups. The joint skills committee of the Scottish Further and Higher Education Funding Council and Skills Development Scotland is an important forum in determining how we should shape the priorities and approaches of our higher education institutions to create the necessary educational opportunities that can be linked up with the business community. That work will continue, to ensure that we improve the connections between education institutions and the business community in Scotland.
Visitor Information Centres (Location Criteria)
To ask the Scottish Government what criteria VisitScotland uses to determine whether a town is a suitable location for a visitor information centre. (S4O-02634)
The provision of VisitScotland information centres is an operational matter for VisitScotland. It categorises sites for visitor information centres according to a range of factors, including footfall, bookings, the footprint of international visitors, proximity to high tourist traffic routes and proximity to significant clusters of attractions and activities.
Earlier this year, VisitScotland’s director for the south of Scotland described the Borders railway as “a game-changer” and “an amazing opportunity”. I absolutely agree but, despite the presence in the Borders of three visitor information centres, two seasonal information centres and two information points, none of them is located in Galashiels. Does the minister agree with me that, given that Galashiels will soon be the main destination for rail services from Edinburgh to the Borders, the lack of an information centre will be an anomaly? Can he assure me that Galashiels will be served by a visitor information centre to advise tourists on the many wonderful attractions that are available to them when they arrive in this beautiful corner of the Borders?
Well done.
We agree that the Borders is a magnificent place to have a holiday. That is why we have promoted golfing in the Borders to more than 2 million consumers and invested £650,000 in capital works at Abbotsford, the home of Sir Walter Scott. Jim Hume is right to point out that the Scottish Government’s policy of reopening the Borders railway will lead to many great opportunities. Many advantages will follow from the policies that we implement. Therefore, I am perfectly happy to engage with the member in due course on considering the manifold opportunities, such as the one that he has posited today.
Zero-hours Contracts
To ask the Scottish Government how it considers the use of so-called zero-hours contracts contributes to its strategy for sustainable economic growth. (S4O-02635)
On 7 November, the Deputy First Minister made clear that the inappropriate use of zero-hours contracts is unacceptable. The Scottish Government’s economic growth strategy is focused on ensuring that we create valuable and well-remunerated employment that will enable individuals to have fulfilling careers and to realise their economic potential within Scotland.
The cabinet secretary will be aware that 27,000 people across Scotland are on zero-hours contracts, 8,000 of whom are in the higher education sector. In the answer that the Minister for Energy, Enterprise and Tourism gave to Alison Johnstone on 11 September, he said:
“We ... urge employers in all sectors who employ staff on zero hours contracts to consider carefully their use of such contracts.”—[Official Report, Written Answers, 11 September 2013; S4W-17083.]
Can the cabinet secretary detail those urges? What is he actually doing to deter the use of those contracts?
A good example of that was reported to the First Minister and me just the other day at the biannual meeting of the Scottish Government and Scottish Trades Union Congress. The University and College Union reported that, as a consequence of my intervention with the University of Edinburgh, the University of Edinburgh is now actively exploring with the UCU the utilisation of zero-hours contracts. That initiative and the intervention that I made were positively embraced by the UCU.
Local Banking
To ask the Scottish Government what role it sees for local banking in the future of the financial services sector. (S4O-02636)
The Scottish Government’s banking strategy, which was published earlier this year, makes clear that a responsible, sustainable banking sector that is responsive to the needs of its customers is a crucial part of the economy as well as of Scottish society. Work is also under way to identify options for developing community banking further in Scotland.
The cabinet secretary and I both hope that he will soon have the privilege of negotiating for Scotland’s ownership of a share of the publicly owned financial services companies that are currently owned by UK Financial Investments. Does he agree with me that transforming large centralised banks into a network of small, locally owned and locally governed banks would have a far bigger benefit in removing the barriers for small businesses to access finance from publicly owned institutions?
I cannot agree with absolutely all of Patrick Harvie’s points, but I agree with the purpose and the sentiment of his argument, which is to ensure that we have in Scotland a network of locally engaged, locally connected banking institutions. One issue that Scotland’s small business sector is wrestling with today is the difficulty of making connections with larger banking institutions that are not in all circumstances acting in the best interests of individual small and medium-sized enterprises. The Scottish Government will continue to pursue that point about access to finance, which we will pursue with energy as part of our banking strategy.
Many thanks. I apologise to those whose questions remain unanswered this afternoon.