Plenary, 29 Jan 2009

Meeting date: Thursday, January 29, 2009

Official Report 774KB pdf

---

Question Time

---

SCOTTISH EXECUTIVE

---

Finance and Sustainable Growth

I make members aware that a revised version of section A of today's Business Bulletin is now available at the back of the chamber. It includes a business motion setting out a revision to the programme of business for Wednesday 4 February and Wednesday 11 February, along with a Parliamentary Bureau motion suspending standing orders to allow the budget (Scotland) (no 3) bill to be considered at stages 1, 2 and 3 on 4, 10 and 11 February respectively.

---

Global Economic Downturn (Employment)

I ask my question with a slight sense of déjà vu.

To ask the Scottish Executive what action it is taking to tackle the effect of the global economic downturn on employment in light of the latest employment statistics. (S3O-5745)

We continue to take forward a wide range of initiatives that will support and protect jobs in Scotland as part of the budget and through our economic recovery programme, which in turn is supported by the economic recovery plans of Scottish Enterprise and Highlands and Islands Enterprise. Members who opposed the budget yesterday voted to block many of those initiatives and threatened the benefits that they will bring to our economy. The initiatives include: accelerating capital spending of £227 million in 2009-10, on top of a £30 million spend in 2008-09, which will support 4,700 jobs over the next 15 months; providing regional selective assistance of more than £16 million in the three months to the end of December 2008, which will create and safeguard a further 1,300 jobs at least; and other measures that are designed to create new opportunities for businesses and individuals in Scotland.

I have heard that line somewhere before.

In a recent exchange with the First Minister, my colleague Jeremy Purvis pointed out that the Financial Services Advisory Board, which the First Minister convenes, has not met since 2 September. Has a date for it to meet been set yet? When it meets, what proposals will it consider to help secure the future of financial services in Scotland and safeguard jobs in that industry and the wider economy? Will the minister consider including representatives of small business and local authorities on FiSAB, so that it can act as a jobs task force to an extent?

FiSAB will meet in the next couple of weeks and already has a membership that is representative of many interests and voices. We will continue to work closely with the financial services sector and small business to bring them together and ensure that Scottish business is advantaged by new moves such as the enterprise finance guarantee and other measures that we believe can alleviate the pressure on small businesses.

Small and medium-sized enterprises are important employers throughout Scotland and are major contributors to our economy. What contact has the minister had with small business organisations, and what further action does he propose to ensure that our small business sector will be equipped to overcome the current economic difficulties?

My colleague Mr Swinney met representatives of the Federation of Small Businesses Scotland in November and will have a further meeting with them on 26 February. My officials met FSB representatives on 19 January and will do so again in February and March as part of a continuing pattern of refocusing on small businesses.

On 14 January, I launched the United Kingdom Government's enterprise finance guarantee scheme in the company of small businesses, putting that package in the context of other measures to improve cash flow, credit and capital for business. In addition, we have brought forward to 18 March the next meeting of the national economic forum, at which the FSB and small businesses will be heavily represented.

Does the minister agree that, given the current economic conditions and what he has said, there should be more scope for modern apprenticeships, particularly in the financial sector? Was it not a mistake for him to drop the number of modern apprenticeships in finance?

The member will note that the Government's approach to modern apprenticeships is aligned with the reality of the Scottish economy. The Government is pressing forward on that in a seemly way, and will continue to do so.

---

Economic Recovery Programme

To ask the Scottish Executive what the benefits have been of its six-point economic recovery programme. (S3O-5736)

Our economic recovery programme is already delivering a wide range of benefits, advice and support to individuals and businesses throughout Scotland. Our programme includes action and resources to tackle fuel poverty and improve energy efficiency, to freeze the council tax for a second year and to expand the small business bonus scheme by increasing the level of relief by 25 per cent from April. Through our programme, we will also accelerate capital spending of £227 million this year, on top of £30 million last year, to support 4,700 jobs throughout Scotland over the next 15 months. Those measures will be possible only if Parliament supports the Government's budget.

In the light of the narrow, petty party politics of yesterday afternoon's budget vote, does the cabinet secretary agree that the parties that voted against the budget have put in jeopardy further economic recovery in the communities that I represent in the west of Scotland, such as Inverclyde and East Dunbartonshire, to name just two? What extra funding will be lost to those two areas, hampering economic recovery?

Mr McMillan makes a fair point. Many of the initiatives that I spoke about in my answer will be able to proceed only if the Government secures parliamentary support for its budget. I regret the fact that Parliament was unable to come to a conclusion that was favourable to the Government on that issue yesterday. I am, however, today pursuing discussions on the Government's budget bill, which I reintroduced to Parliament just after the decision last night. I remain optimistic that, as a consequence of those discussions, we will be able to create broad consensus around the budget bill.

That is essential because, at the heart of what it is trying to do, the Government is trying to use the interventions at our disposal to accelerate capital expenditure, to give support to the small business community and to maximise the opportunities for employment in what we all acknowledge are very difficult times. The Government will remain absolutely focused on that over the next couple of weeks.

Does the cabinet secretary believe that the extra jobs that have been created in the Scotland Office by the Secretary of State for Scotland, Jim Murphy, have contributed to Scotland's economic recovery? Is it not the case that the cost of those jobs is directly top-sliced from the money that is made available to the Scottish Government?

Mr Morgan speaks with clear authority on the issue, as he and I both sat through the passage of the Scotland Act 1998 and realised the absurdity of the Scotland Office having first pick of the resources that are available to the Scottish Parliament.

We note with interest the expansion of staff numbers at the Scotland Office. Whether there has been an expansion of productivity is a different question. Whether there has been an improvement in the value added to the Scottish economy is deeply in question.

---

A9 (Dualling)

To ask the Scottish Executive what progress has been made since May 2007 on dualling the A9 north of the Drumochter pass. (S3O-5709)

We announced our plans to upgrade the A9 to Inverness in December 2008. We are currently well advanced in our preparations for extending the dual carriageway at Crubenmore.

I note what the minister says. People are genuinely perplexed that, against the background of a stated commitment to dual the entire length of the A9, among the first projects on the A9 that the minister has approved is not the dualling of the sections at Moy and Carrbridge but the upgrading of them to three-lane overtaking sections. Will the minister go back to his office this afternoon and instruct the immediate upgrading of the design of the Moy and Carrbridge sections to dual carriageway in line with the promises that were made before the election?

The member will be perplexed because he is clearly not engaged in the issue. Many of the initiatives that we are taking forward with best speed and energy are constrained by the decisions of the previous Administration. If, however, we are in a position of actually having a budget—well, I leave the rest to the listeners.

Can the minister explain why we are spending money on two-plus-one lanes at Moy and Carrbridge that will have to be superseded, dug up and tarmacked over again when they become dual carriageways? Surely, if the Government is serious about having dual carriageways on those sections and is not just going through the motions, it will admit that those two-plus-one lanes are an extravagance and that the money should be used for dualling those sections now.

The key interventions that we are making at the moment are driven by safety. I do not think that any family that does not suffer loss as a result of those interventions will regard them as an extravagance.

The intervention to dual the A9, which we are fully committed to, is an economic intervention, which we will come to as the funds are available. However, we want to get the maximum bang for our safety buck in the meantime. There is clear evidence that when we put in W2+1s—three lanes—at appropriate places there are significant safety benefits. I am utterly determined to reduce the number of deaths and serious injuries on our roads and to ensure that families do not suffer the grief and losses that result from too many accidents on them.

---

Scottish Futures Trust (Chief Executive)

To ask the Scottish Executive what progress has been made in employing a chief executive for the Scottish Futures Trust. (S3O-5692)

Interviews for the post of chief executive have taken place, and an appointment will be finalised shortly.

The cabinet secretary will be aware that there has been concern about the transparency of appointments to the Scottish Futures Trust. Will the post of chief executive come under the auspices of the Scottish public sector pay policy? What will the salary be? What objectives and performance targets will be set for the post?

I am discussing with the board of the Scottish Futures Trust the chief executive's salary and whether the post will come under the Scottish public sector pay policy. Decisions on those matters will be arrived at in due course. Obviously, the salary will depend on the candidate who is appointed and their relevant experience.

The chief executive's responsibilities and objectives will be a matter for the board of the Scottish Futures Trust, but they will be driven and informed by the business case, which, if my memory serves me right, the Government published in May 2008. They will also reflect the working priorities of the Scottish Futures Trust, which include taking forward in the short term the expansion of health care facilities through the hub initiative, progressing a new schools programme, and ensuring that the improvements in value that we seek from capital expenditure in Scotland are delivered.

---

ScotRail (Ticket Pricing)

To ask the Scottish Government when it last met representatives of ScotRail to discuss ticket pricing. (S3O-5733)

Transport Scotland officials last met ScotRail representatives to discuss ticket pricing in the context of their franchise agreement obligations on 22 January 2009.

I want to bring to the minister's attention concerns that my constituents have expressed about ScotRail's ticket pricing. A cheap day return ticket from Falkirk Grahamston to Edinburgh is the same price as a cheap day return ticket from Dunblane, Bridge of Allan or Stirling, despite the fact that Falkirk Grahamston is considerably further along the line towards Edinburgh. Will the minister ensure that there is greater transparency in respect of how ScotRail sets its pricing structure and that there is greater equity in how it decides what prices should be from given stations?

I understand the member's point. Broadly speaking, the price per mile is in the 18p to 20p range across the network, although there are variations. Many areas are aggregated together as one destination, which has many advantages for travellers and ScotRail. That said, the pricing structure is largely constrained by the contract that we inherited. We will certainly look at an appropriate pricing structure when we next let the franchise.

---

Glasgow City Council (Meetings)

To ask the Scottish Executive when the Cabinet Secretary for Finance and Sustainable Growth last met representatives from Glasgow City Council. (S3O-5683)

I meet Glasgow City Council representatives regularly. I last spoke to the leader of that council on 4 December 2008.

I am sure that the cabinet secretary will join me in welcoming to the public gallery students from John Wheatley College.

I am also sure that the cabinet secretary will again meet Glasgow City Council representatives. When he does so, perhaps he will discuss with them the Glasgow Evening Times campaign to get Glasgow a fair deal—or, more appropriately perhaps, a fairer deal. Does he support that campaign? What does he have to say to the readers of the Evening Times, 69 per cent of whom do not believe that Glasgow currently gets a fair deal from the Scottish Government?

I am glad that Margaret Curran added the words "Scottish Government" to the end of her question. If she had not done so, she might have tempted me to speculate on who is not delivering a fair deal to the people of Glasgow. She saved me from making such a mischievous remark.

I associate myself with Margaret Curran's remarks and extend a warm welcome to the students from John Wheatley College, who represent the distinguished contribution that John Wheatley made to Scottish public life.

On the substantive question, I believe that Glasgow gets a fair deal from the Scottish Government. There is a range of interventions—some of which I recounted to Margaret Curran in yesterday's debate—through which the Government is supporting an increase in public expenditure for Glasgow City Council to allow it to deploy effectively its resources. We have removed a significant amount of ring fencing. I know that the leadership of Glasgow City Council welcomes that move, which has enabled the council to deliver greater flexibility in the design of its public services.

The Government is giving significant support to the 2014 Commonwealth games—we were all delighted that the bid was successful in 2007. In addition, the Government has approved major capital infrastructure projects for the city, some of which—the M74 extension, for example—are not universally popular in the chamber, although others, including the Southern general hospital project, are more popular. Those projects represent the Government's contribution to ensuring that Glasgow gets a fair deal from public expenditure in Scotland.

The cabinet secretary might find it worth while to meet the leadership of Glasgow City Council as soon as possible. I draw his attention to the financial implications of the council's plan to close 25 primary and nursery schools, with an estimated cost saving of £3.7 million. Will he impress on Glasgow City Council how many more schools it would have to close if Glasgow Labour MSPs were to vote again against the Scottish budget, which would involve the council in a £205 million budget cut?

As always, Mr Doris puts a fair question. He asks about the difficulties that Glasgow City Council would face if it did not receive the uplift in expenditure that the Scottish Government wishes to put forward. I am surprised that members such as Margaret Curran voted as they did yesterday. I see Mr Butler, another Glasgow member, in his place. I also see Mr Whitton, although I am not certain whether he represents the city of Glasgow; he certainly represents the outskirts of Glasgow.

The issue that Mr Doris raises is relevant to the question of access to the increased public funds in the budget, which will not be made available if the budget is not passed. Given time for mature reflection, I hope that Labour members who voted against the Government's budget will see fit to support it, to allow the uplift in resources to go to Glasgow City Council.

---

Glasgow Crossrail Project

To ask the Scottish Executive what progress was made in respect of the Glasgow crossrail project at the meeting on 7 January 2009 between Scottish Government officials and the Strathclyde partnership for transport. (S3O-5680)

Following the meeting on 7 January 2009, it was agreed that a workshop will be held in February, which will be attended by Transport Scotland, Strathclyde partnership for transport, Network Rail and Glasgow City Council, at which the development of the west of Scotland rail enhancement proposal will be discussed.

I thank the minister for his mature response.

I welcome the minister's agreement to the meeting with SPT and to the workshop in February. He knows that the project has passed the Government's Scottish transport appraisal guidance system. Does he agree, particularly given these challenging economic times, that SPT's proposed Glasgow crossrail scheme provides value for money, would greatly enhance the connectivity of Scotland's rail network and would go a long way towards resolving capacity restraints at Glasgow stations? If so, will the Government work constructively with SPT to ensure that Glasgow crossrail—or, as the minister put it in the transport priorities debate this morning, crossrail plus—sees the light of day?

Of course, the oldest minister in Government will always provide a mature response, if only by virtue of his age.

The question is a serious one, which the member treats in an appropriate way. The issue of capacity is central to determining the nature of the intervention that we should make in Glasgow, to allow connections from one end of Scotland to the other via Glasgow and to support the expansion of the rail network into and from Glasgow. We have commissioned an extra piece of work from the Jacobs Consultancy, which will be a large feature on the table in the discussion that we will have in February with the range of bodies that I mentioned.

A longer-term issue is the genuine difficulty with capacity at the two existing major stations in Glasgow, Glasgow Central and Glasgow Queen Street. It is imperative that we take account of the long-term needs of railway expansion when coming to a decision. However, I am entirely happy to accept that we need to move as speedily as possible in these difficult times. I look forward to Mr Butler supporting the budget as it moves through Parliament in the next couple of weeks.

---

Sickness Absence (Public Sector)

To ask the Scottish Executive what steps are being taken to reduce levels of sickness absence in the public sector. (S3O-5658)

The management of sickness absence across the public sector is a matter for individual public bodies as employers. Effective absence management is a core discipline for any well-run organisation. We expect all employers to take the issue seriously, and to take all possible steps to reduce absence levels and to increase productivity.

I am sure that the cabinet secretary will agree that many workers in the public sector will be feeling pretty sick this morning at the prospect of losing their jobs due to the antics of the Labour and Liberal Democrat parties in the chamber yesterday.

Audit Scotland has disclosed that the average sickness absence level in local authorities is now double that in equivalent private sector companies. Given that workers in the public sector also enjoy higher salaries on average, better holidays and better pensions than those in the private sector, what is the Government doing to redress the balance?

As I said in my original answer, this is a significant issue that affects organisations' ability to provide public services and to support the individuals who need to utilise those services. We expect all organisations in the public sector—the core Scottish Government, health authorities and local authorities—to have in place, as part of their organisational structure and working practices, measures to tackle sickness absence. Part of the focus of the efficient government programme is to reduce the amount of sickness absence, which will reduce the cost of bringing in agency staff and other additional costs. The issue will remain a priority, and I will continue to monitor it as part of the efficient government programme.

As a back bencher who is even older than the Minister for Transport, Infrastructure and Climate Change, I will ask a very mature question. Will the cabinet secretary acknowledge that in recent years NHS Lothian has reduced sickness absence levels from more than 6 per cent to 4.72 per cent—a substantial reduction in a workforce of more than 30,000 staff? Will he encourage other bodies in the public sector to learn from the experience in Lothian?

Dr McKee makes a fair point in highlighting an example of good performance. One challenge in the public services is to ensure that well-structured good practice in one part of the country is deployed in other organisations. I am sure that the Cabinet Secretary for Health and Wellbeing will note Dr McKee's comments and ensure that the lessons from NHS Lothian are applied in other health boards. From a broader efficient government perspective, I take on board the points about performance that he has made.

---

Consultants (Expenditure)

To ask the Scottish Executive how much it spent on private consultants in 2008. (S3O-5663)

In my answer, I will interpret "private consultants" to mean consultancy services involved in Government activities. The latest information, which is held in the Scottish procurement information hub, indicates that, in the financial year 2006-07, the Scottish Government spent £40.5 million with companies identified as consultants. The figure includes management and business consultancy, along with a range of other external services such as interim staff and information technology services. Comparable data for 2007-08 should be available by March 2009.

Following the Auditor General for Scotland's criticism that there is a lack of strategy in Government spending on consultancy fees, including spending by bodies such as Scottish Enterprise, Highlands and Islands Enterprise and Transport Scotland, and given the simple fact that changes could be made that would lead to a £13 million reduction in the £114 million that was spent on consultancy services in 2006-07, what plans does the Government have to review, improve and change the tendering process and working practices on the use of outside consultants to minimise costs and maximise efficiency and value for money?

I thank Margaret Mitchell for the question and for the attention that she brings to the issue, which concerns me significantly. I welcome the Audit Scotland report on the issue, which highlights a significant utilisation of consultancy advice and services when I am not sure that that is the best way in which to proceed in every circumstance. Long before the Audit Scotland report was published, I asked the permanent secretary to introduce new procedures to add to the scrutiny of decision making that results in the commissioning of consultants. I often feel that it is a bit of a knee-jerk reaction to commission a consultant to undertake work that could readily be undertaken within the Scottish Executive or its agencies. I assure Margaret Mitchell that ministers are interested in the issue. I certainly do not want inappropriate expenditure on consultancy services when the advice and information could be obtained from within the core Scottish Government staff or our agency staff. I receive regular reports on performance on the matter. New authorisation procedures are in place before consultancy initiatives can be approved in the Scottish Government.

---

M80 (Stepps to Haggs Project)

To ask the Scottish Executive to what extent the M80 Stepps to Haggs project will improve journey times, reliability and safety. (S3O-5698)

On current traffic predictions, the project will cut journey times as soon as it is opened by up to 15 minutes, which will increase to 20 minutes by 2025. Upgrading to motorway standard will improve safety through the provision of hard shoulders, which provide a refuge for vehicles in the event of incidents, and junctions with flyovers, which will replace those that are currently controlled by traffic signals.

The upgrade will undoubtedly be an important addition to the road network, but equally important is the upgrade to the Raith interchange in Lanarkshire, where fatalities have occurred and where business traffic is curtailed daily. Will the Scottish Government consider bringing forward that project to assist the road network in Scotland further?

I recognise the importance of the issue. We will certainly give consideration to it within the constraints that we have. I am happy to interact with the member further if he wants to talk to me in greater detail.

---

Local Authorities (Extra Funding)

To ask the Scottish Executive which other local authorities are being considered for extra funding of the kind given to the City of Edinburgh Council to reflect its status as capital city. (S3O-5757)

The additional funding that is provided to the City of Edinburgh Council as a capital city supplement is in recognition of factors that are unique to Edinburgh as Scotland's capital city. No other local authority is eligible for that type of additional funding.

Does the minister realise how angry people in Aberdeen are at the cuts that are being imposed because of the poor financial settlement from the Government? Does he realise how that anger rises when they see that extra money has been found for local government, but only for Edinburgh? Does he realise that Aberdeen City Council would receive more than £60 million extra per year if it received the national average payment; more than £100 million more if it received the same per head as Dundee City Council; and more than £150 million more if it received the same per head as Glasgow City Council? Does he agree that Aberdeen City Council, in 32nd place in the funding league table, needs and deserves extra funding every bit as much as the City of Edinburgh Council, which is in 31st place? Why can the rules be changed for Edinburgh but not for Aberdeen? Why will he not take action and provide a fair deal for council funding for Aberdeen now?

The issues that Aberdeen City Council is confronting and the impact that they are having on public services and the design of public services are largely a result of the fact that, for a significant number of years, the council has been living beyond its means. The actions that the council has taken to correct that have been honourable and effective; it has made significant progress on the handling of many difficult issues.

I am aware of the long-standing concerns that have existed in Aberdeen about the level of funding that the city receives through the local government financial settlement. That is why I have commissioned a review of that settlement, which will examine such issues. I remind Nicol Stephen that I have put in place specific measures to help the city deal with the historical problems that have built up over many years as a result of the council living beyond its means. I have given the city as much help as I have been able to, and I remain happy to engage in discussion with the council about how we can work together to address some of the difficult issues that it faces.

In recent months, the cabinet secretary has taken an interest in the financial challenges that face Aberdeen City Council. Does he recognise that many public services in the city attract as many or more users from other council areas as they do from Aberdeen itself? If he will not replicate the Edinburgh model for cities that are regional centres, how will he ensure in the next two years that the funding of those regional services is not left to Aberdeen City Council alone?

Mr Macdonald raises a number of issues that take us into the fascinating territory of local government organisation in Scotland. Some of those issues are a hangover from the abolition of the regional councils, the existence of which allowed such matters to be handled in the context of a broader financial settlement that covered a larger geographic area. As Mr Macdonald will know, the Government has said that it will not revisit local government reorganisation, but we encourage local authorities to co-operate in the sharing of services when that will bring financial benefits. There are many examples of situations in which Aberdeen City Council and Aberdeenshire Council could co-operate to ensure that that happens. I encourage that process.

In addition, I point out to Mr Macdonald what I pointed out to Margaret Curran yesterday in relation to Glasgow: the cities growth fund, which we inherited from the previous Administration, has been baselined into the financial settlement of each of the relevant councils and is available to them to utilise for the improvement of the cities concerned.

---

Economic Growth (South of Scotland)

To ask the Scottish Executive how it is promoting economic growth in the South of Scotland. (S3O-5747)

Through our spending, our Government economic strategy and our six-point programme of economic recovery, we have put sustainable economic growth at the heart of everything that we do and are focused on raising skills, improving productivity and safeguarding and creating jobs throughout Scotland, including the South of Scotland. Through our current plans to accelerate nearly £260 million in capital expenditure, we will, for example, generate work and support 4,700 jobs, many of which will be in the South of Scotland.

What action will the cabinet secretary take to help those Stena workers who face redundancy? Stena recently announced that cost cutting would certainly result in voluntary job losses and would probably result in compulsory ones. What help and training will be on offer to those people?

Mr Hume will be aware from my address to Parliament yesterday on the Budget (Scotland) (No 2) Bill that the Cabinet Secretary for Education and Lifelong Learning has expanded the resources that are available to the pioneering partnership action for continuing employment organisation, which does excellent work in supporting people who face the prospect of losing their jobs by assisting them with redeployment and reskilling.

As I announced yesterday, the Government has, into the bargain, been successful in persuading the European Union to amend the conditions that are associated with our European social fund programme to allow us to provide support to people in employment who face the risk of losing employment through a system of retraining. Those are important reforms. Of course, the Cabinet Secretary for Education and Lifelong Learning, the Minister for Enterprise, Energy and Tourism and I will continue to monitor the effectiveness of those services to ensure that they support people through what we all recognise will be an extremely difficult and worrying economic time.

I recognise the announcements about PACE that were made earlier this week, but it is about delivery, too. I am sure that the cabinet secretary will recognise that we have debated in the chamber the issue of job losses in the financial services sector. Has there been any dialogue between the Government and representatives of the financial services sector about what might happen in the future for workers in that sector?

As Mr Park will know, the Financial Services Advisory Board—the excellent forum that was created by our predecessors, which we have continued—gives the Government valuable input on the health and prospects of the financial services sector. As Mr Mather, the Minister for Enterprise, Energy and Tourism, said a few moments ago, the board will meet shortly, when we expect to talk about the current economic circumstances and the issues that the sector faces. Today's interesting survey of opinion about the prospects for financial services employment in Scotland gives some grounds for optimism, but it also raises some of the realistic considerations that Mr Park raised about the health of the sector and employment, which the Government must consider carefully and seriously—I assure Mr Park that we will do so.

---

Island Air Routes (Service Levels)

To ask the Scottish Executive what steps it has taken to monitor the changeover from British Airways to Flybe on island air routes to ensure that service levels have been maintained. (S3O-5716)

We have monitored service levels on a regular basis, including charges and other arrangements such as the air discount scheme, since Loganair's franchise with Flybe started on 26 October 2008.

I am aware that both Loganair and the Government have gone to considerable lengths to maintain the level of service that was provided by the previous operator. Is the minister willing to take up concerns that constituents have expressed to me anecdotally, for example that a return flight from Stornoway to Edinburgh, which cost £85 last year using the discount scheme, might now cost £160?

I am certainly willing to engage on subjects of that character. I will make a few points that might illuminate the subject. First, for aviation, the cost of fuel has been fluctuating dramatically, which I know has been part of the difficulty. Of course, Flybe has a different economic model from that of British Airways and, in essence, operates on the basis of trying to maximise revenue depending on the loading on its aircraft. The example that the member gives is one of which I tak tent. I am happy to engage with him further to ensure that we have the right services at the right price for people throughout Loganair's franchise area.

I welcome the minister's response and echo Alasdair Allan's concerns. I encourage the minister to engage with Flybe on the availability, ahead of time, of connecting flights into Scotland, which he will appreciate are incredibly important, not least in allowing tourism businesses to plan ahead and secure business. The evidence in my constituency is that the lack of availability of such flights is seriously hampering businesses in the current difficult economic circumstances.

I am certainly willing to assist on that subject. Flybe is now the biggest regional airline in these islands and it has significant services throughout Europe. The member might also be referring to interlining to other operators. If there are difficulties with that, I will be happy for Mr McArthur to draw the details to my attention.

The legal position on the route development fund has changed entirely. We are now following a different strategy, but we are continuing to ensure that we develop our air services, particularly for international connections.

---

Scottish Futures Trust

To ask the Scottish Executive what meetings the Cabinet Secretary for Finance and Sustainable Growth has had with Glasgow City Council to discuss the Scottish Futures Trust. (S3O-5697)

I have not met Glasgow City Council to discuss the Scottish Futures Trust but, in the past couple of days, I have received correspondence on the subject from the leader of that council.

I thank the cabinet secretary for his response and hope that, following that discussion, we can move forward. The purpose behind my question, which I hope the cabinet secretary will accept, is the desire for a serious capital and borrowing framework to enable councils to invest intelligently in their school estates.

Given the debate that has taken place in the chamber in the past 24 hours, I hope that the cabinet secretary, in his new role as chief conciliator for the Scottish Government, can ensure that we find ways to bring forward a Scottish Futures Trust that allows investment in school estates. The issue is affecting my constituents as we speak, and I hope that it does not become part of the—understandable—parliamentary knockabout that we sometimes engage in, and that we can develop opportunities for a borrowing framework that allows investment in the school estate to match what has happened in the past 10 years in Glasgow.

Mr McAveety knows that my role as chief conciliator did not start recently; it has been a long-standing position in the Scottish National Party, which I have brought to the Government, where there is ever more requirement for it as the days go by.

Mr McAveety raises a fundamental issue. I accept that there is a need for clear mechanisms to deliver capital investment, and a need to proceed with our capital investment programme, which totals in excess of £3.5 billion. As Mr McAveety will know from his local authority experience and his experience as a minister, there are other opportunities available to local authorities through prudential borrowing.

As I know Mr McAveety will accept, all that must take place within a financial framework and set of rules governed by the United Kingdom's financial structures. In light of recent information, particularly about the incorporation of the international financial reporting standards into our accounting models, that will become more challenging. I therefore look forward to discussions with the UK Government, as well as discussions within this Parliament, on taking forward the most effective borrowing structures—heaven knows, I might be able to create some more consensus on that question, as I aim to do in the next fortnight.