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Chamber and committees

Meeting of the Parliament

Meeting date: Wednesday, May 28, 2014


Contents


Portfolio Question Time


Finance, Employment and Sustainable Growth


Oil and Gas Sector (Employment)

To ask the Scottish Government what action it is taking to support employment across the oil and gas sector. (S4O-03266)

The Minister for Energy, Enterprise and Tourism (Fergus Ewing)

The Scottish Government has published its oil and gas strategy. The Scottish Government, together with the enterprise network, has delivered an extra 80 companies who are account managed. We have led delegations to many destinations all over the world and have provided an extra £6.5 million to establish Energy Skills Scotland. We have also ring fenced 500 modern apprenticeships for energy. We work with OPITO, Oil & Gas UK and many others in the industry to deliver skills in a co-ordinated fashion. We have set up the oil and gas innovation centre, and I have personally met more than 100 companies in the sector in Aberdeen and elsewhere to lead our support for this most important sector of the economy.

Dennis Robertson

I thank the minister for his comprehensive answer and I look forward to him visiting my constituency in the future.

I am sure that the minister will agree that, despite the Scottish Government’s efforts, we still do not seem to have enough young girls and women coming into the industry. Could he perhaps engage with the new Cabinet Secretary for Training, Youth and Women’s Employment to see whether we can rectify that?

Fergus Ewing

Yes—I am happy to and do work closely with Angela Constance on these and all other matters. Also, rarely a week goes by—including this week—when I do not visit Dennis Robertson’s constituency.

I am pleased to say that Energy Skills Scotland and Education Scotland are working together to develop a co-ordinated long-term plan for better partnerships between industry and schools.

As far as attracting more young women to pursue and to wish to pursue a career in the oil and gas industry is concerned, it is a lesser-known fact that around 95 per cent of the jobs in the oil and gas industry are not offshore jobs. If we can explain that more, that may remove some of the misperceptions about the industry and lead to more young women being interested in taking up a career in what is arguably our most successful sector.


Independence White Paper (Tax)

To ask the Scottish Government what its response is to the Institute of Chartered Accountants of Scotland’s comment that the white paper on independence “contained very little detail on tax”. (S4O-03267)

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

“Scotland’s Future” sets out how taxation will operate in an independent Scotland and how this Government plans to use tax powers to build a tax system that stimulates Scotland’s economy, builds social cohesion and sustains our public services.

Independence will guarantee, for the first time, that decisions about what taxes apply in an independent Scotland and at what level they are set will be taken only with the approval of a Parliament that is elected entirely by people in Scotland.

Drew Smith

The only thing that we know for sure about a tax system in an independent Scotland is the SNP’s desire to engage in a reckless tax competition by cutting tax for big business by 3 per cent more than the Tories ever would. ICAS has highlighted the complete lack of information from the Scottish Government on the cost of creating a new tax system. The Scottish Government has said that the cost would be small, and Scotland’s accountants have asked how small. Will Mr Swinney tell Parliament how much he thinks that it will cost to set up a new tax system? Does he know?

John Swinney

The best way to answer Mr Smith’s question is to say that, as has been acknowledged by a range of experts in the field, independence will provide the opportunity for Scotland to create a system that is simpler to administer, more efficient in its organisation and more focused on the particular requirements of an independent Scotland.

If we look at the United Kingdom system, which has more than 10,000 pages of tax legislation and which had 1,042 exemptions in 2010 alone, we can see that the complex approach that is being taken in the United Kingdom has not made for a straightforward or efficient tax system.

On the question of cost, the Government has set out detail on the way in which we would want to structure and take forward the tax system in Scotland. The proposals that we have brought to the Parliament in the Revenue Scotland and Tax Powers Bill demonstrate that we can undertake tax administration in Scotland at a cheaper rate than Her Majesty’s Revenue and Customs can—some 25 per cent cheaper. That illustrates for Mr Smith the way in which an independent Scotland could take decisions and approaches that would better meet the needs of people in Scotland and deliver a greater degree of efficiency into the bargain.

Gavin Brown (Lothian) (Con)

In this year’s budget, there is £10 million for the transitional costs of the Scotland Act 2012 taxes, and next year the figure is £40 million. What would be the transitional costs of devolving all taxes upon separation?

John Swinney

The definitive answer to that would come as a result of the negotiations that we would undertake with the United Kingdom Government on arrangements for our use and application of the existing tax apparatus in Scotland—principally in relation to HMRC, pensions administration and the benefits system—in an independent Scotland. That is an argument for early negotiation with the United Kingdom to prepare for an orderly transition to an independent Scotland in the aftermath of a yes vote in the referendum in September.

The Presiding Officer (Tricia Marwick)

Question 3 is in the name of Marco Biagi. The member has not seen fit to join us to ask the question. I expect an explanation from him by the end of the day.

Question 4, in the name of Kenny Gibson, has not been lodged. Mr Gibson is abroad on parliamentary duties.


Economic Growth (Highly Skilled Workforce)

5. Alex Rowley (Cowdenbeath) (Lab)

To ask the Scottish Government whether it considers that the future growth of the economy lies in a highly skilled workforce and what steps it will take to attract businesses to Scotland that require a highly skilled workforce. (S4O-03270)

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

Increased internationalisation with greater business investment and exports will drive future sustainable economic growth. A highly skilled and flexible workforce will help to facilitate that and to ensure that Scotland remains an attractive location for inward investors, therefore building on our success to date in securing inward investment. According to Ernst & Young, in 2012, the number of jobs that were attracted from inward investment was at its second-highest level in 12 years. Since 2008, Scottish Development International support has led to the creation or safeguarding of over 33,000 planned jobs in Scotland.

Alex Rowley

I have to confess that, in putting the question together, I had to add the bit about attracting businesses to Scotland, so that the question qualified to be asked in this part of question time. For me, that highlights the issue that I am trying to get at. Does the cabinet secretary agree that we need to look at skills in terms of primary and secondary schools, colleges, higher education and, crucially, employers? Does he agree that skills are key to the Scottish economy, whether for inward investment or companies that are here? I have met companies that say that they are having to recruit abroad because the skills that they need are not here. Does the cabinet secretary agree that we need a more joined-up approach that brings all the partners together and drives the skills agenda so that people can get the jobs that are available in Scotland?

Thank you for the speech.

John Swinney

After those words, Presiding Officer, I feel anxious about saying that I very much concur with Mr Rowley’s remarks. Regardless of parliamentary decisions on the configuration of who answers which question, the member’s point is entirely relevant to the issues that I confront. I agree entirely with him that we must have cohesion and alignment in all our approaches to skills and development, from the earliest years of education.

For example, some of the problems that we have with occupational segregation for employees in their 20s are, perhaps, determined by steps that are taken in primary school, when particular opportunities and areas of activity will be talked about and discussed with greater relevance to males than to females. We must tackle those issues throughout the education system.

The Wood commission report will give us a lot to think about and address in this area. Sir Ian Wood has taken meticulous steps to ensure that we have the type of cohesive discussion that Alex Rowley is seeking, and I look forward to the publication of that report shortly.

Alex Rowley makes an entirely reasonable point about the need for business to be at the epicentre of this discussion. Far too often, business is not closely immersed in the discussion about skills and the skills development pipelines in our society. If it were, we would be able to resolve many of the issues of demand and supply that Alex Rowley has rightly highlighted.

Well, we got a speech in return. To allow us to make progress through the questions, I remind members that questions should be brief and I remind ministers that I would appreciate fairly brief answers.


Local Authority Elections (Turnout)

To ask the Scottish Government what measures it is considering to support turnout at local authority elections. (S4O-03271)

The Minister for Local Government and Planning (Derek Mackay)

The Scottish Government is committed to improving voter turnout at all Scottish elections, including local government elections.

On 9 April 2014 we published the consultation document, “Scotland’s Electoral Future: Delivering Improvements in Participation and Administration”. The consultation is focused on how we can improve the quality of democracy in Scotland by encouraging wider engagement and participation in elections. It draws on the findings of several earlier reports. Measures that are under consideration include all-postal voting, online voting and telephone voting, among other suggestions that will be informed by a cross-party stakeholder roundtable that I have convened and which met for the first time today.

What specific measures could be considered to encourage more young people to participate in the democratic process?

Derek Mackay

In addition to some of the measures that I have just mentioned, the First Minister, the Deputy First Minister and I will attend a young voter event in Glasgow on Scotland’s future, in partnership with stakeholders such as YoungScot, the Scottish Youth Parliament and YouthLink Scotland. We look forward to hearing their suggestions on how to further improve our engagement with young voters in the democratic process.

Dennis Robertson (Aberdeenshire West) (SNP)

What more can be done to encourage people from minority groups, especially those with disabilities, to engage in the democratic process and especially to become candidates, so that they can be elected in local authority and parliamentary elections?

Derek Mackay

The stakeholder group that I referred to has a wide range of opinion and representation. In addition to our collective duties as political parties, we are working with Inclusion Scotland on a specific pilot project to deliver an internship for people with disabilities in order to give them greater exposure in Parliament and involvement in the democratic process. If it is successful, we can roll it out more widely. Inclusion Scotland has been allocated funding of more than £78,000 to run the programme.


Independence (Interest Rates)

To ask the Scottish Government what experts it has consulted about the consequences of independence for interest rates. (S4O-03272)

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

The Scottish Government’s views on monetary policy are based on the comprehensive work of the fiscal commission working group, which is comprised of internationally renowned economists. That group of economic experts published a detailed report in February last year that includes proposals for currency and interest rates. Although they outlined that Scotland would have a number of credible options, they concluded that a formal monetary union would be in the interests of Scotland and the rest of the United Kingdom.

The Bank of England would continue to set a single interest rate for both Scotland and the rest of the UK, which makes sense for two economies with such close trading patterns.

Malcolm Chisholm

Does the cabinet secretary agree that, when it comes to the economics of independence, it is important that we listen to independent experts? Is it not the case that all independent experts agree that there would be a sovereign debt premium, even if there were to be monetary union? Is it not the case that the vast majority of those experts say that, without a monetary union, there would be an even higher interest rate premium? Indeed, if the Scottish Government were not to take on its share of debt, there would be an astronomic interest rate premium—around 5 per cent on interest rates, according to Jeffries investment bank.

John Swinney

The Scottish Government’s proposal is for a monetary union between an independent Scotland and the rest of the UK. I am reminded that a significant amount of independent opinion has judged that that would be in the best interests of Scotland and the rest of the United Kingdom. Not least, the most recent opinion came from Professor Anton Muscatelli when he was at the Parliament’s Economy, Energy and Tourism Committee.

If we look at other contributions to the discussion, we find that, for example, Standard & Poor’s has said that an independent Scotland

“would qualify for our highest economic assessment”,

and Moody’s has said that

“all possible outcomes point to Scotland being among the wealthiest sovereigns in the world”.

Therefore, there is a great deal that enables us to be sure about the credit rating of an independent Scotland.

If I look at the credit ratings of small countries that are of a size comparable to Scotland, I find that Austria, Finland and Denmark—to name but three—all have lower debt costs than the United Kingdom.

If we look at all that evidence in the round, we find that it demonstrates the arguments in favour of the proposals put forward by the Scottish Government.

I note what the cabinet secretary says about Austria. Will he explain how it can be that a smaller country such as Austria ends up with lower interest rates than a large country such as the UK?

John Swinney

Ultimately, it will come down to the stewardship of the economy in Austria. Anyone who looks at the stewardship of the United Kingdom’s economy will see that the debt is heading for £1.5 trillion, which indicates the degree of economic mismanagement. In view of the strong public finances that existed around the turn of the century—from the late 1990s and throughout the first decade of the century—the fact that we have ended up with the level of debt that we have is a testament to the economic mismanagement of the United Kingdom.

For clarity, is it the Scottish Government’s formal position that a separate Scottish Government would pay a lower rate of interest on Government debt than the UK Government?

John Swinney

I simply illustrate to Mr Brown the comments that ratings agencies have put in the public domain. They speak for themselves. They say:

“Scotland would qualify for our highest economic assessment.”

Mr Brown should be cheerful about that and confident that he can go forward in future with great certainty about the economic foundations of an independent Scotland. I know that it is only a matter of time before he reaches that conclusion for himself.


Employment (Caithness and North Sutherland)

To ask the Scottish Government what measures it is taking to sustain employment in Caithness and north Sutherland. (S4O-03273)

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

Through the Caithness and north Sutherland regeneration partnership, we are working to develop a resilient local economy and support sustainable job creation.

Between 2008 and 2013, the partnership’s actions secured commitments from 190 local businesses to create or maintain 750 jobs. Those activities are complemented by more than £100 million in infrastructure investment in the past five years, including £20 million on developing Scrabster harbour. That investment supports jobs during construction as well as building the asset base to support future economic development and job creation in growth sectors such as renewables.

Jean Urquhart

Finding new employment for workers in Dounreay has been a continuing theme of the plant’s decommissioning. How will that experience inform other future diversification in places such as Faslane in the event of independence?

Cabinet secretary, this is about Caithness and north Sutherland.

John Swinney

Having met representatives of the Caithness and north Sutherland regeneration partnership and taken part in discussions that were hosted by the Caithness Chamber of Commerce when I was last in Thurso a couple of years ago, I have been impressed by the way in which the partnership’s focused work has brought together all relevant agencies to try to find ways of reskilling and redeploying individuals who are involved in the work at Dounreay and, crucially, to find other sustainable business opportunities to support employment in the Caithness economy.

There are wider lessons to be drawn from a good exercise in addressing a change to the economic landscape in the north of Scotland that could have dramatic implications for the local economy unless it is properly managed—and it is being properly managed by the partnership.


Local Authority Representatives (Meetings)

To ask the Scottish Government when ministers last met representatives of local authorities. (S4O-03274)

The Minister for Local Government and Planning (Derek Mackay)

Ministers meet representatives of local government regularly to discuss a wide range of issues as part of our commitment to working in partnership with local government to improve outcomes for the people of Scotland.

Cameron Buchanan

Following this weekend’s revelation that the City of Edinburgh Council has spent approximately £60,000 on attracting foreign investment, or entertaining, and that it initially refused to release details of how those costs were accrued, will the minister give an assurance that he will press home to Scottish councils the importance of transparency, particularly as resources are so scarce at the moment?

Derek Mackay

That is a matter primarily for the City of Edinburgh Council, and it will be judged by the electorate on how it chooses to use resources. I am not aware of the full details of the case, but I am happy to look at it and advise the City of Edinburgh Council accordingly. However, Scotland’s capital city should herald its successes and promote Edinburgh and Scotland across the world, while using resources wisely and transparently.

Neil Findlay (Lothian) (Lab)

When the minister last met representatives of councils, did he discuss concerns about the planning system? In Kirknewton in my region, a planning application for a 190-foot turbine was rejected twice by the council and by ministers, only for the decision to be overturned behind closed doors by a second reporter inquiry. Will the minister look at reforming the planning system to ensure that it is fairer and more transparent? At the moment, it is heavily weighted against communities and in favour of developers.

Derek Mackay

I disagree with Mr Findlay’s comments about the planning system. Essentially, the Planning etc (Scotland) Act 2006 was agreed on a cross-party basis. In fact, the Labour Party was largely responsible for much of that legislation. If the member thinks that the 2006 act has given the Government powers that he regrets, we should look across all parties and reflect on that. The 2006 act is bedding down well, and an appeals mechanism is necessary. I disagree that communities are not fully engaged, and I am making great progress with the delivery of the national planning framework and the Scottish planning policy on the ground, in partnership with local authorities. The last time I met Scotland’s local authorities to discuss planning, they did not ask me to abolish the appeals system.


Low Pay

To ask the Scottish Government what action it is taking to tackle low pay. (S4O-03275)

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

The Government is leading by example and helping those who are on the lowest incomes by ensuring that all staff who are covered by the public sector pay policy receive the Scottish living wage, which is above the statutory minimum wage. We encourage others to follow our example, and we have funded the Poverty Alliance to deliver a living wage accreditation scheme, which aims to increase the number of employers that are paying the living wage, and to make decent pay the norm in our country.

James Kelly

Following the debates on payment of the living wage in public contracts during consideration of the Procurement Reform (Scotland) Bill, what measures will the Government put in place to monitor the payment of the living wage in public contracts? Will the cabinet secretary consider setting up a living wage unit to assist with that process?

John Swinney

I will certainly explore the monitoring issue that Mr Kelly has raised. In gathering information about contracts, we monitor community benefit clauses, for example, as part of the commitments that we undertake through public sector procurement, so there is certainly scope for us to consider the serious point that Mr Kelly makes. Our work with the Poverty Alliance has been designed to engage organisations that have been critical to advancing the arguments and gain wider participation in the living wage campaign. I assure Mr Kelly that consideration will be given to that idea, and I will write to him accordingly.

Question 11, in the name of Christian Allard, has been withdrawn. The member has provided a most satisfactory explanation.


National Planning Framework 3 and Scottish Planning Policy (Publication)

To ask the Scottish Government when it will publish the national planning framework 3 and the revised Scottish planning policy. (S4O-03277)

We will publish national planning framework 3 and the revised Scottish planning policy on 23 June 2014.

Angus MacDonald

I thank the minister for his reply and for the imminent publication of NPF3 and the SPP. I particularly welcome the proposed inclusion of the Grangemouth investment zone as one of the national developments, as well as the carbon capture and storage proposals for Grangemouth, with appropriate environmental safeguards. How have the recommendations from the Parliament’s committees been considered as part of the NPF3 process?

Derek Mackay

I provided an interim response to the recommendations from Parliament’s committees earlier this month. The Infrastructure and Capital Investment Committee highlighted local residents’ concerns about the impact of the two proposed national developments at Grangemouth. We are currently finalising NPF3 and taking those concerns into account. A co-ordinated approach to development in that area, as proposed in NPF3, will be key to balancing development aspirations and quality of life for local communities and the environment.

More widely, I have taken on board a number of process, policy and narrative contributions in response to the recommendations. I am sure that members will be aware that I have gone further on the scrutiny process than the legislation required me to. I have also offered to attend the Local Government and Regeneration Committee to outline the Government’s final position.

That will all lead to an excellent plan to enable Scotland to deliver sustainable economic growth.

Question 13, in the name of Rhoda Grant, has been withdrawn. The member has provided a satisfactory explanation.


Payday Lending Summit

To ask the Scottish Government what conclusions emerged from the recent payday lending summit. (S4O-03279)

The Minister for Local Government and Planning (Derek Mackay)

The Scottish Government is committed to tackling the rise in payday lenders and betting shops on Scotland’s high streets. We have already taken steps to address the issue by securing the passage of the Bankruptcy and Debt Advice (Scotland) Bill and by removing business rates relief from payday lenders. However, we recognise that more needs to be done. I chaired a summit on 23 April that brought together a wide range of interests, including local authorities, financial advice services, welfare organisations and credit unions, to consider what further action could be taken. A report that outlines the summit’s discussions and conclusions will be published later this week. Those conclusions include the development of an action plan that will build on existing commitments and will be finalised in the near future in collaboration with stakeholders.

Is there scope to use planning policies to tackle the clustering of betting and payday loan premises in town centres?

Derek Mackay

A number of options are being considered, including changes to planning policy. The forthcoming action plan will provide more detail on the way forward. I can confirm that emerging planning policies will assist in tackling the clustering of payday lending and betting premises. We have been working hard to maintain cross-party support to achieve that within local government and Parliament. I restate, however, that regulation would be much easier if the reserved powers were transferred to Scotland.


Community Planning Partnerships (Support)

To ask the Scottish Government what support it offers to community planning partnerships. (S4O-03280)

The Minister for Local Government and Planning (Derek Mackay)

The work of community planning partnerships is, in the first instance, primarily supported by Scottish Government funding for the statutory partner bodies. For instance, we are maintaining the local government finance settlements for 2014-15 and 2015-16 at more than £10.6 billion, and our initial revenue resource allocations for territorial national health service boards in 2014-15 total more than £8.27 billion, which is 3.1 per cent higher than in 2013-14.

The Scottish Government supports CPPs in other ways, too. We intend to legislate in the forthcoming community empowerment bill to strengthen community planning, which will include putting clear duties on public sector partners to support the work of CPPs.

We are running a national conference for community planning practitioners and others on 5 June to share good practice. With the Economic and Social Research Council, we are investing £3 million in what works Scotland, which is an independent centre that will support CPPs by building evidence on what works in order to deepen the impact of public service delivery and reform.

Jayne Baxter

There are many great examples of small community-based organisations in Mid Scotland and Fife, including the Resonate Arts House project in Alloa, which I visited last week. The project takes a holistic approach to working with local people to build community resilience and capacity. I urge the minister to ensure that support for community planning crosses all portfolios to ensure that there is a sustainable long-term future for organisations such as Resonate.

Derek Mackay

Yes, of course—that is a valid point. I had the pleasure of visiting Fife just the other day to attend a third sector conference. We heard from the third sector directly about some of the fantastic projects that it is delivering on prevention, integration, people and improved performance, which are the pillars of the Christie commission’s report on public service reform and of our response to it. The capacity of the third sector and community-led regeneration and support is critical to delivering on that agenda, and I concur completely with Jayne Baxter’s comments.

 

 

 

 

 

 

 


Wealth Inequalities (Tax Powers)

16. Rob Gibson (Caithness, Sutherland and Ross) (SNP)

I will send you a note, Presiding Officer. I am sorry that I arrived late.

To ask the Scottish Government how it plans to use tax powers to tackle wealth inequalities. (S4O-03281)

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

The Scottish Government has limited powers, under its existing responsibilities, to exercise the use of tax powers to tackle wealth inequalities. However, where we have acquired new powers through the Scotland Act 2012, we have demonstrated our desire to deliver a progressive system. That is exactly the approach that we have taken in the design of the land and buildings transaction tax and we would seek to apply it in other forms of taxation, where we have the responsibility to do so.

Rob Gibson

I welcome the cabinet secretary’s answer. However, in order to fund the public services that so many communities need and deserve, we need to tackle tax avoidance and trusts and so on among rural and urban businesses. Many of those tax powers are currently retained at Westminster, so is there any discussion about how we can get control over some of those tax powers in order to help our economy to deliver for those communities?

John Swinney

Clearly, if Parliament had a wider range of tax powers, it would have much greater flexibility to address those issues.

I reassure Mr Gibson that the Government has demonstrated in the Revenue Scotland and Tax Powers Bill its determination to tackle tax avoidance, which has, I think, been welcomed across the political spectrum in Parliament. The general anti-avoidance rule, which will be scrutinised by Parliament at stages 2 and 3 of the bill, is designed to establish our tax system on exactly the right footing in order to make clear our intolerance of tax avoidance, and to put in place measures that we believe have the widest possible scope to tackle it. However, as I have said to Parliament already, I am very willing to be challenged on the degree to which we could make that provision ever more effective than we have already designed it in the bill, which has been considered by Parliament at stage 1.

Drew Smith (Glasgow) (Lab)

Will the cabinet secretary take the opportunity to remind the radical voices behind him about how slashing corporation tax for big business and forcing regressive tax competition on the rest of the United Kingdom would result in a more equal Scotland?

John Swinney

I simply remind Mr Smith that the Government has taken an approach that is designed to focus on how we improve and expand the economic base of Scotland.

However earnestly Mr Smith tries to put forward those views on corporation tax, I would take him more seriously if he was not a member of a party that on two occasions dramatically reduced corporation tax. Mr Smith’s great intellectual logic seems to be that it is all right if the Labour Party does it, but it is not all right if anybody else does it.

The Scottish Government has set out our argument about the advantage of encouraging and motivating investment through a competitive tax base. That does not mean that people who are obliged to pay tax are somehow exonerated from paying it. Those who are obliged to pay tax have got to pay the tax that they are obliged to pay, which is exactly what the general anti-avoidance rule that I am establishing in statute is designed to do. It is to signal that whatever tax rates are decided and determined by Parliament must be followed and adhered to by all relevant parties.

Murdo Fraser (Mid Scotland and Fife) (Con)

At last week’s meeting of the Economy, Energy and Tourism Committee, Dennis Canavan, who is the chair of the Yes Scotland campaign, said that he wants a radical redistribution of wealth in Scotland, and tax policies that would bring that about. Does Mr Swinney agree?

John Swinney

The first thing that I will say is that Dennis Canavan is a man for whom I could not have higher respect. I have sat with him in the House of Commons and in this Parliament and I have seen how courageously he has dealt with things—politically and personally. I have nothing but the highest admiration for Mr Canavan. He would be the first to say that he and I are not exactly two peas from the same pod, if I can use that analogy for the benefit of anyone on the Conservative benches who is interested in gardening.

Obviously, there will be differences of opinion among the various interested parties on the yes side, but what I and Mr Canavan are absolutely agreed on is that the only way we will tackle the inherent inequalities of the United Kingdom is by acquiring the powers of an independent Scotland. That will start to resolve the issues of inequality in our society.


Independence (United Kingdom Government Civil Servants in Scotland)

To ask the Scottish Government what would be the position of civil servants working for the United Kingdom Government in Scotland following a yes vote in the referendum. (S4O-03282)

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

The Scottish Government will work with the Westminster Government to preserve continuity of employment for all civil servants in Scotland, either by transfer to the Scottish Government as we take on new functions, or through continued employment by the Westminster Government, where it continues to require their skills. UK civil servants who transfer into the Scottish Government would benefit from our good employment practices, including the continued commitment to there being no compulsory redundancies.

Jamie Hepburn

In recent years, HM Revenue and Customs—which is a big employer in my constituency and across Scotland—and the Department for Work and Pensions have experienced large cuts to the number of people whom they employ. In 2004, 48,500 jobs were lost from those organisations, followed by further cuts in 2006, and we know that the current UK Government is cutting back, too. Does the cabinet secretary agree that the real risk to jobs in those organisations is the UK Government’s handling of them, and that the white paper commitment to transfer workers to the employment of the Scottish Government, with the policies that he has set out, makes independence a much better prospect for such staff?

John Swinney

The Scottish Government took a deliberate decision, despite all the economic challenges that we face, to provide a more stable employment environment for civil servants in Scotland through our commitment to having no compulsory redundancies. That has been a very welcome measure among employees, who have the security of knowing that the continuity of their employment has been secured, and that if there were to be a requirement to reduce staff numbers in Government organisations, it would be done by negotiation and agreement with the relevant trade unions and individuals, as part of a voluntary severance arrangement. We have created, and have every intention of maintaining, a progressive approach to employment practices in the civil service in Scotland.

Jenny Marra (North East Scotland) (Lab)

Will the cabinet secretary tell me how far his policy of no compulsory redundancies extends in the public sector? I am thinking specifically about the compulsory redundancies of academic staff that are being considered at the University of Dundee.

I am not sure that that question is quite relevant, but if you want to answer it, cabinet secretary, please do so.

John Swinney

The University of Dundee is a self-governing institution. Although the Government funds it, the University of Dundee is entirely autonomous in the decisions that it takes.

The Government leads by example, and the commitment to no compulsory redundancies applies to all bodies and bargaining units to which the Government’s pay policy applies.


Social Enterprise Funding (Crowd Funding)

To ask the Scottish Government when it last reviewed the funding sources for social enterprises and what steps it is taking to support crowd funding. (S4O-03283)

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

The Scottish Government is in discussions with a range of stakeholders to identify opportunities for innovation and development, and to explore approaches to ensure that social enterprises and the wider third sector are buoyant and sustainable. The discussions will continue throughout 2014, and will include future funding sources.

Chic Brodie

The cabinet secretary will be aware of the rapid growth of social enterprises and the voluntary and third sectors in recent years. Associated with that growth has been the growth in the number or funding sources—both private and public. Will the cabinet secretary institute a full review of the many sources of funding, in order to ensure that properly directed and qualified financial support is given to likely winners in those sectors, and that crowd funding is considered as one such qualified investment vehicle?

John Swinney

Crowd funding is an example of real innovation; I have seen a number of successful measures to attract crowd funding for social enterprises that have reaped significant rewards. I can assure Chic Brodie that that will be explored as part of our review.

I also say to Chic Brodie that the Government set out in 2007 its priority to expand the scope of social enterprise activity in Scotland. We have seen that happen significantly across the country and I assure Mr Brodie that we have every intention of encouraging it in the years to come.


Business Start-ups (Glasgow)

To ask the Scottish Government what measures it has put in place to increase the number of business start-ups in Glasgow. (S4O-03284)

The Minister for Energy, Enterprise and Tourism (Fergus Ewing)

The Scottish Government is committed to creating the economic environment to enable businesses to start up and thrive. The latest official start-up figures, which were published by the Office for National Statistics in December 2013, show that there were 2,300 new business registrations in Glasgow in 2012, which was up from 2,220 in 2011. That is the third consecutive year in which the number of start-ups has increased.

You will need to be brief, Ms McTaggart.

Anne McTaggart

Women in Scotland continue to be half as likely as men to establish a business. In the light of the fact that the significant entrepreneurial potential of Scotland’s women remains untapped, what specific measures has the Scottish Government taken to address the concerning gender gap in business start-up rates?

Fergus Ewing

We have taken a large number of measures. Angela Constance is driving forward that work, as Anne McTaggart well knows. More than 92,000 businesses in Scotland pay low or no business rates, enormous support is provided by the business gateway and we encourage more women to consider self-employment as a successful means of supporting the economy. We entirely support the efforts that the member talks about.

I offer my apologies to John Lamont, whose question I did my absolute best to get to. Unfortunately, time has caught up with us.