Meeting of the Parliament

Meeting date: Wednesday, May 29, 2013

Official Report 779KB pdf

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Portfolio Question Time

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Finance, Employment and Sustainable Growth

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“Managing early departures from the Scottish public sector”

1. To ask the Scottish Government what action it is taking in the light of the findings of the Audit Scotland report “Managing early departures from the Scottish public sector”. (S4O-02165)

As that Audit Scotland report highlights, many public bodies have decided to run voluntary exit schemes as one way of reducing costs at a time when the United Kingdom Government has made significant reductions to the Scottish budget.

Voluntary exit schemes deliver significant year-on-year savings to the public purse, while providing public sector staff with security of employment at an economically challenging time. Under the civil service compensation scheme, costs are recouped in two years, with recurring annual savings thereafter. As an example, estimated savings from the Scottish Government’s voluntary exit schemes between 2009-10 and 2011-12 amount to around £73 million a year.

The report provides a useful reminder of the principles of good practice in managing early departures, and it confirms that bodies across the public sector are applying those principles. I encourage all bodies to reflect on Audit Scotland’s advice to ensure that we continue to demonstrate best practice in the area.

I thank the cabinet secretary for emphasising in his response the principles of good practice, with which, I am sure, we all agree.

Why did the Scottish Government approve the Scottish Enterprise early departures scheme when that scheme did not meet the guidance in the Scottish public finance manual, and resulted in the average cost of early departure for Scottish Enterprise employees being almost £100,000 more than the average for Scottish Ambulance Service employees?

I will make two points in response to Mary Scanlon’s question. First, Scottish Enterprise has made it clear that it has concerns about the presentation of elements of the information that has been supplied by Audit Scotland, which it considers could confuse the reader about the facts and the substance behind the points. I make that point for the record.

Secondly, a factor that is material to Scottish Enterprise’s position being different from the positions of other parts of the public sector is that all the voluntary severance schemes must respect the terms and conditions on which members of staff have been employed. It is inevitable that circumstances differ between one public sector organisation and another, so terms and conditions are not uniform. That explains why there are differences in the settlements that are arrived at. They are driven by the requirements of contractual terms that all public sector bodies must respect—which, I am certain, Mary Scanlon will understand.

The Audit Scotland figures appear to be even worse than those in Labour’s freedom of information investigation. It seems that the Scottish Government is spending more than 10 times as much putting people out of work than it is on getting them into work.

The Audit Scotland report specifically criticises early departure schemes that are driven by short-term budget cuts. What are the finance secretary’s long-term plans for the public sector workforce?

I have not—in all Ken Macintosh’s contributions on the subject—been able to understand what he would like us to do. We face reductions in public expenditure—nobody can dispute that—but we have an obligation to make public finances sustainable. Unfortunately, that has required us to engage voluntary redundancy measures across various parts of the public sector. That has been done where a business case has proven that such a scheme will deliver long-term savings to the public purse.

The Audit Scotland report states:

“Early retirements and voluntary redundancies … can be a useful way of avoiding the delays and costs of compulsory redundancies and quickly reducing staff numbers and costs. Once the initial outlay has been recouped, they can provide significant savings for organisations.”

That is about making public finances sustainable.

Mr Macintosh has never made a representation to me during the budget to ask that money be put in place to avoid voluntary redundancy schemes and people would still have to be paid if they are still employed in the public sector. I am at a bit of a loss to understand what the Labour Party’s position is.

The Government has given clear and consistent reassurance to public sector workers that we do not support and will not implement compulsory redundancy programmes. That is a strength that is acknowledged by the Audit Scotland report.

The cabinet secretary and others have mentioned the Audit Scotland report and voluntary redundancies. Does he agree that the Scottish National Party Government’s policy of no compulsory redundancies is providing staff with employment security at a time when unprecedented cuts to the Scottish budget are coming from Westminster?

I went through some of the issues in Sandra White’s question just a moment ago. The Government has given the public sector workers whom it employs an assurance that there will be no compulsory redundancies, recognising the fact that that provides a better employment climate. As the Audit Scotland report suggests, that policy is also actually more efficient than undertaking compulsory redundancies, for which some people in the debate have argued.

The manner in which we have gone about trying to sustain workforce engagement in a difficult time of economic and financial pressure has resulted in the public sector workforce remaining strong and resilient in difficult economic times.

Is the cabinet secretary familiar with paragraph 57 of the Audit Scotland report, which comments on the use of compromise agreements to silence whistleblowers? Is he aware that, at the Public Audit Committee meeting this morning, the Auditor General for Scotland could not tell Parliament how many compromise agreements have been used among the 14,000 members of staff who have left the public sector over the past two years? Is he able to enlighten Parliament as to what that figure is?

I do not have the precise number in front of me, but I am happy to write to Mr Scott with any available information. If my memory serves me right, we have responded to information requests on that point. My memory may be letting me down on that, but I will confirm the answer to him.

Compromise agreements can be used only where there is overwhelming justification for that approach. They are undertaken with the interests of the public purse in mind, and the Government embarks on them only when the conditions merit it. The number of such cases will be a small minority of the individuals who have left the employment of the public sector.

Before I call the next question, I make a plea for shorter questions and answers. Otherwise, we will not make much progress.

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Planning System (Economic Impact)

2. To ask the Scottish Government how economic impact can be considered more fully in the planning system. (S4O-02166)

The planning system plays a key role in supporting sustainable economic growth through the provision of up-to-date development plans and a supportive business environment for investment. Economic benefit, in particular job creation, should feature as a significant material consideration when determinations on individual applications are made.

The public consultation on the draft Scottish planning policy, which is open until 23 July, invites views on appropriate measures to support sustainable economic growth and economic recovery. Responses will help to inform the finalised policy, which is due for publication and implementation by the end of the year.

I hear what the minister says, but he will be aware that some investors query how much weight is given to economic impact in any given planning application. Therefore, I ask him to clarify what difference the Scottish Government’s proposed planning policy will make in that key respect.

The SPP review will draw that out as an important issue. I have some sympathy with what Annabelle Ewing says. Economic impact must be taken more seriously and given more clarity in consideration and determination of planning applications. It is important, at this time of economic recovery, that the planning system supports sustainable economic growth and considers fully economic growth and displacement to ensure that it supports the competitive business environment that we all seek to create.

It is about leadership, culture and policy clarity, and those are what the draft of the planning policy will provide. I am supported in that by the Confederation of British Industry, the Scottish Chambers of Commerce and the Federation of Small Businesses, no less.

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Local Authorities (Funding)

3. To ask the Scottish Government what the impact has been of the 85 per cent funding floor for local authorities. (S4O-02167)

The introduction of the 85 per cent funding floor will provide Aberdeen City Council and the City of Edinburgh Council with additional resources over the three-year period 2012 to 2015. That delivers on the Scottish Government’s commitment to introducing a new funding floor to ensure that, as part of the outcome of spending review 2011, no local authority will receive less than 85 per cent of the Scottish average in revenue support.

Does the cabinet secretary agree that, given the financial pressures that the Scottish Government faces—not the least of which is the unprecedented budget cuts from Westminster—any reasonable person would recognise that it has provided a fair settlement to local government?

It is best to consider the issue in terms of the statistics. In the period between 2007-08 and 2012-13, the resources that were at the Scottish Government’s disposal increased by 6.4 per cent and the resources that were made available through Scottish Government funding to local government increased by 8.9 per cent. I think that that demonstrates that local government in Scotland has been given a very fair settlement by the Scottish Government.

I call Jenny Marra. Please be brief.

The cabinet secretary says that the minimum is 85 per cent, but does he recognise the figures that have been provided by the Scottish Parliament information centre, which show that Aberdeen City Council’s funding settlement for the current year, instead of being 85 per cent of the average, is not even 80 per cent of the Scottish average? Will he confirm that the difference between the funding that Aberdeen was promised and what it gets is £20 million for the current year?

Let me refute what Jenny Marra has said. The Scottish Government has explained repeatedly to Parliament that the calculation around local government settlements was made at the time of the spending review. At the time of the spending review, the 85 per cent funding floor was applied and presented throughout the three years of the spending review, and will be delivered and guaranteed for Aberdeen City Council.

I have to say that Jenny Marra, who raised the issue with me from the Labour benches, has a heck of a brass neck. Let me quote Gordon Matheson, the leader of Glasgow City Council:

“As quickly as we work to protect schools, jobs and the vulnerable of this city”—

Glasgow—

“the SNP Government bleed money away to other parts of the country for political gain. They have given up on Glasgow and decided to concentrate the nation’s resources on winning Edinburgh and Aberdeen for the SNP.”

There we are. The Labour Party is pointing in two directions, and it represents a Government that, for eight years, did absolutely nothing—not a thing—to address the funding challenges of Aberdeen City Council.

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Glasgow Council for the Voluntary Sector

4. To ask the Scottish Government what recent work it has carried out in partnership with the Glasgow Council for the Voluntary Sector. (S4O-02168)

Glasgow Council for the Voluntary Sector is part of Glasgow’s third sector interface, which provides a single point of access and support to the third sector in Glasgow. In 2012-13, we have allocated more than £460,000 to help the Glasgow interface to develop volunteering and social enterprises, to grow a strong local third sector and to build the third sector’s relationship with community planning. GCVS has supported the distribution of Glasgow’s £700,000 reshaping care for older people transformation fund, and it successfully applied for funding in year 1 of the reducing reoffending change fund.

In June last year, the Government published “Action for Jobs—Supporting Young Scots into Work: Scotland’s Youth Employment Strategy”, which highlighted the importance of the third sector in the Government’s plan to address growing unemployment. Given that the youth unemployment rate is now estimated to be more than 16 per cent, is the cabinet secretary satisfied that the objectives in the strategy are being met?

There is clearly a significant issue in relation to youth employment in Scotland today, which is why the Government took the action that it took to establish the specific ministerial responsibilities that Angela Constance is taking forward in tackling the issue. The statistics demonstrate that we are making significant progress in reducing the levels of youth unemployment, and that we are boosting youth employment in Scotland.

However, I say to Anne McTaggart that we are only part of the way through that exercise. There needs to be an intensified focus—to which I am certain the third sector in Glasgow is contributing—to ensure that we complete the tasks that are involved in creating the necessary opportunities for young people in our society, and in tackling the level of youth unemployment as effectively as possible.

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Barnett Consequentials (Police Funding)

5. To ask the Scottish Government what discussions the Cabinet Secretary for Finance, Employment and Sustainable Growth has had with the Cabinet Secretary for Justice regarding the allocation of Barnett consequentials to Police Scotland. (S4O-02169)

The Barnett consequentials accrue to the Scottish block as a whole and ministers take collective decisions about their allocation.

In that context, did the cabinet secretary and his colleagues give any consideration to the allocation of a portion of the accumulated police reserves to the Scottish Police Authority to support the organisation in managing its initial budgetary challenges, in particular in implementing the national information technology systems that are so necessary to enable a single police service to operate in Scotland?

That consideration would not have been necessary because the Government, as part of the process of establishing Police Scotland, has given full consideration to the funding requirements of Police Scotland in taking forward the necessary work to establish the single police force. That whole initiative is being taken forward by the Scottish Police Authority and Police Scotland. The Government will of course continue to engage in dialogue with the essential partners in that process as the implementation of Police Scotland is taken forward.

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Single Outcome Agreements

6. To ask the Scottish Government what action it is taking to strengthen single outcome agreements as part of its response to the commission on the future delivery of public services. (S4O-02170)

Community planning and the single outcome agreements are at the core of the Scottish Government’s approach to public service reform. Following the Christie report, the Government and the Convention of Scottish Local Authorities agreed a statement of ambition that sets out our shared aims for community planning and provides the basis for action to achieve those aims. That action includes requiring single outcome agreements to set out a clear vision of what each community planning partnership wants to achieve for its area, to include a sharp focus on key policy priorities and to show how each CPP will deliver prevention and the other pillars of public sector reform.

All 32 CPPs have now submitted new draft SOAs and a process of assurance involving senior managers from across the public sector will commence shortly. The process will identify specific development and improvement actions for each CPP that will form part of the agreement of the SOA.

The recent “Weathering the storm?” report from the Carnegie UK Trust praised Scotland’s adoption of an outcomes-based approach across the public sector. What is the minister’s assessment of that report?

We have had a range of reassurances that the Scottish Government has been leading the way on tackling inequality in our preventative spend agenda and on focusing on community planning. As regards new developments such as the proposed extension of the legal duty, working closely with the Accounts Commission, the national group will deliver a focus on place, partnership and performance. Perhaps that is why the advisers to the United Kingdom Government who advise on issues such as early years have commended the Scottish Government as leading the way on prevention and early years work.

Will the new draft single outcome agreements include a measure for wellbeing?

On the national measurements and the outcomes, a range of indicators are taken into account—not just gross domestic product or economic value—in order to consider what progress we are making both nationally and locally. The local SOAs will have indicators that cut across a range of areas and focus very specifically on quality of life as part of the consideration around a sense of place. There is a range of indicators and I am happy to share them with the member to give her further reassurance.

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2 Sisters Food Group (Cambuslang)

7. To ask the Scottish Government what discussions it has had since March 2013 with the 2 Sisters Food Group regarding the future of Vion Cambuslang. (S4O-02171)

Since March 2013, Scottish ministers and officials have had regular discussions with the 2 Sisters Food Group regarding the future of Vion Cambuslang.

I am glad that the cabinet secretary has been able to have regular discussions with the 2 Sisters Food Group, because I and my parliamentary colleague Tom Greatrex have had difficulty in establishing that. Two months down the line, we still lack clarity about the 2 Sisters Food Group’s plans for Vion in Cambuslang. In the cabinet secretary’s discussions with the group, has there been any commitment of practical and financial support from the Scottish Government so that the 2 Sisters Food Group can continue to support operations at Vion Cambuslang?

I will certainly do what I can to encourage dialogue with the group. It is important that local members are able to have that dialogue.

The Government has made an offer of financial assistance to the 2 Sisters Food Group, but it is conditional on its sustaining the current level of employment at the operations that the group has acquired. Issues in connection with that are still under negotiation with the company and, once those discussions are concluded, I will be quite happy to brief Mr Kelly on the details. The Government continues to take a close interest in the steps that are being taken to implement the transaction.

Will the cabinet secretary join me in congratulating what is now the latest 2 Sisters Food Group meat processing plant in Portlethen in my constituency because Tesco, which already takes most of its meat products, has agreed to market premium, high-value beef products in its leading stores, thus acknowledging the increasing demand for Scotland’s top-quality beef, which is good news for retailers, processors and producers alike?

I welcome that. Part of the Government’s objective has been to ensure that at the various plants that have been affected by the 2 Sisters Food Group’s acquisitions—at Cambuslang, in Mr Kelly’s constituency, at Portlethen, in Maureen Watt’s constituency, and at Coupar Angus, in my constituency—employment is sustained to provide clear outlets for quality Scottish agricultural produce. Not only is significant employment vested in those three plants, it is also connected to the agricultural workforce around the country. It is therefore good to see what has been achieved at the McIntosh Donald plant in Portlethen. As part of the Government’s discussions with the 2 Sisters Food Group, we will continue to promote the strength and quality of Scottish produce, which are evidenced by the agreement that has been reached with McIntosh Donald.

Unfortunately, if you turn away from your microphone, it becomes difficult for our official report to pick up what you are saying, cabinet secretary.

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Oil and Gas Industry (West Scotland)

8. To ask the Scottish Government what the West Scotland region’s economic input is to the oil and gas sector. (S4O-02172)

Scottish Enterprise estimates that 15.5 per cent of Scotland’s high-growth oil and gas companies have operations in the west of Scotland; that is one in six. Those companies range in size from the Wood Group to small and medium-sized enterprises. Scotland’s oil and gas strategy, which the First Minister announced last year and which has been developed in conjunction with the industry, lays out a plan to help the industry to go from strength to strength. Through the strategy, we aim to secure investment and maximise jobs.

The minister will be aware of the numerous companies in the west of Scotland that participate successfully in the oil and gas sector, such as James Walker Devol and Jenda Energy, to name just two in Inverclyde. What support can Scottish Enterprise and Scottish Development International provide to manufacturing businesses from the west of Scotland to encourage more of them to take their first steps into the oil and gas sector, especially bearing in mind the huge economic success and future potential of the sector in Scotland?

I know that Stuart McMillan lobbies very hard for and has close engagement with the companies in his area, and that he wants even more companies to join the successful ones in his part of Scotland. He is quite right, because a huge number of oil and gas companies operate in the west of Scotland and we would like to see even more join them. I was happy to visit James Walker Devol in Greenock to see the excellent work that it does. Members from all sides of the chamber will want to see this work progressing.

Scottish Enterprise and SDI can help companies in a great many ways, particularly in those areas in the west of Scotland where regional selective assistance is available to encourage employment creation. That is a good tool. It has been used very well in the past, and I fully intend that it should be maximised in future.

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Hydrogen Energy Storage

9. To ask the Scottish Government what steps it is taking to promote hydrogen as a means of storing and distributing energy. (S4O-02173)

The Scottish Government has helped to establish leading centres of excellence, such as the Pure Energy Centre in Unst and the Hydrogen Office in Methil. Scottish universities are at the cutting edge of research and development in hydrogen and fuel cells. We are also supporting the Aberdeen hydrogen project, which will deepen our understanding of the role that hydrogen could play and enhance our reputation for energy innovation.

As far back as 2006, the hydrogen energy group produced the report “Hydrogen and Fuel Cell Opportunities for Scotland”, which concluded that hydrogen and fuel cell technology has the potential for

“10,000 jobs and GVA to Scotland’s economy of £500 million per annum ... In order for Scotland to achieve its ... renewable target ... it will almost certainly require hydrogen and fuel cell systems to balance and integrate many diverse ... sources of energy.”

How far have we gone in maximising the potential of that technology?

Before the minister responds, I advise members that I have had a number of requests for supplementaries on the previous few questions. I am afraid that time is running away with us and, unfortunately, it will be difficult to take further supplementaries from members.

We are making progress, and we want to make more progress. To take one example that I mentioned, the Aberdeen hydrogen project will help to deliver a fleet of 10 hydrogen buses for the city. Those will be very welcome, not least when this Scottish National Party Government delivers the new Aberdeen peripheral road, which will tackle a long-standing problem that—as I know from my frequent visits to Aberdeen—has caused serious problems for the people in that city. I am pleased to say that we are making progress, but more remains to be done.

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Barnett Consequentials

10. To ask the Scottish Government what discussions the Cabinet Secretary for Finance, Employment and Sustainable Growth had with his ministerial colleagues prior to allocating the most recent round of Barnett consequentials. (S4O-02174)

Barnett consequentials accrue to the Scottish block as a whole, and ministers take collective decisions about their allocation.

In answer to parliamentary question S4W-14615, the cabinet secretary stated that financial transactions totalling £290.8 million were available to the Scottish Government to support loans and equity investment but would have to be paid back to the Treasury in future years. Has the Scottish Government considered using part of that funding to support loans to housing associations for the construction of homes for social rent, given that many are experiencing problems securing loans from conventional sources such as banks?

From the nature of her question, I can see that Dr Murray understands the difference between financial transactions and the capital departmental expenditure limit that is available.

The Government has set out a commitment to allocate the £290.8 million in financial transactions to the housing sector. I am certain that some of that financial transaction capability will be utilised to support housing associations, but the Government continues to work with Her Majesty’s Treasury to identify the terms of and rules on the utilisation of financial transactions.

We are required to ensure that none of the financial transaction facility can in any circumstance lead to anything that could be construed as public expenditure, because that would defeat the nature of the classification of financial transactions. If it is helpful, I am happy to explain that to Dr Murray in more detail in writing as we acquire the detailed understanding of what is involved.

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Council Tax Freeze

11. To ask the Scottish Government how much the average household has saved since the introduction of the council tax freeze. (S4O-02175)

Over the six-year period during which the council tax freeze will have been in place—from 2008 to 2014—the average band D household in Scotland will have benefited from cumulative savings of almost £690.

Is the cabinet secretary aware that, during Labour’s last period in government in Scotland, the council tax in Aberdeen rose by 72 per cent, leaving residents with the highest average bills in Scotland? Does he agree that that makes the call by the Labour Party candidate in the Aberdeen Donside by-election for a hike in council tax bills particularly incomprehensible, considering that people there are already living with household budgets that are under huge pressure?

The numbers speak for themselves. The Scottish National Party Government has delivered assistance to hard-pressed families at a time of need and economic difficulties, while the Labour Party is talking about increasing their council tax bills. Mr Crawford summed it up very well—I do not think that the Labour Party’s position on the subject is in any way comprehensible.

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Banking (Small Businesses)

12. To ask the Scottish Government what recent discussions it has had with the banking sector regarding help for small businesses. (S4O-02176)

The Scottish Government has regular discussions with banking sector representatives on a range of issues, including access to finance for small and medium-sized enterprises.

We actively encourage the banks to return to acceptable levels of lending and to improve the supply of finance for viable small and growing businesses. The recently published banking strategy sets a framework to work closely with the banks and others to restore the traditional principles of Scottish banking, which are based on probity, prudence and stewardship. It also encourages the banks to work with public agencies to enhance the quality of business loan proposals and so maximise the potential number of successful applications for finance.

I have been approached by businessmen in my region who face the real prospect of going out of business because of the outrageous costs that the Clydesdale Bank is imposing on them for breaking a commercial fixed-rate tailored business loan. My understanding is that that is a growing problem for many small and medium-sized businesses. What discussions have the minister and the finance secretary had with the banking sector in Scotland about that developing mis-selling scandal that is threatening many small businesses?

I make it clear that I do not adopt the terminology that the member uses but, nonetheless, there is a serious point about the alteration of terms of business for existing customers. That is a serious matter that my colleagues and I have raised regularly and repeatedly with banks, as all members will be aware. The issue arises for a number of reasons, including the revaluation of assets on a conservative basis, which causes banks to review their lending policies.

I will say a couple of things. First, we are absolutely clear that we want banks to treat their customers fairly and decently. Secondly, if a decision is made with which a customer disagrees, there is a right of appeal. From having seen the statistics, I am aware that those who appeal against decisions of banks, whether to decline lending or to change the terms, enjoy a pretty high success rate in their appeals. Therefore, the right of appeal is not a paper, nominal or negligible one—it is serious. I am happy to write to Mr Findlay with the details and precise statistics, so that the constituents who have raised those matters with him can be sure that they have access to appeal if so advised.

I welcome the recent announcement by the Deputy First Minister on the trialling of project bank accounts to speed up payments to contractors that are involved in public sector projects. Will the minister outline how that measure and other work that the Scottish Government is doing will help to support small businesses?

That is an extremely important measure. As Mr Maxwell will know, particularly in the construction sector, subcontractors—or subcontractors to subcontractors—often find that it takes far too long for them to receive payment. In too many cases, that has led or contributed to insolvency situations. Project bank accounts are a way in which trusts can be used to administer payments so that small businesses are paid on time for the work that they do and a larger business does not just sit with their money in its bank account.

That is why I am delighted that the Deputy First Minister has, on the recommendation of banking experts, taken forward a trial of project bank accounts, which are a very good measure. I pay tribute to the small businesses that lobbied us hard and whose views we have listened to by introducing the trialling of project bank accounts.

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Public Health Supplement (Preventative Spending)

13. To ask the Scottish Government how much funding raised by the public health supplement has been allocated to preventative spend initiatives. (S4O-02177)

The additional income raised by the public health supplement—which is estimated to be £25 million in 2013-14, rising to £35 million in 2014-15—will help local government contribute to the decisive shift to preventative spend measures outlined in the spending review 2011.

The cabinet secretary will recall the controversy that surrounded the supplement’s introduction. It is important that every penny is spent. Two months into the new financial year, we have learned today that the money is yet to be allocated. Given that this Government is looking for more powers, why is it so slow to act on the powers on funding that it actually has?

I am not sure that I follow at all the point that Mr Hume is making. If he wants to write to me to explain it, I will happily consider it.

Yesterday I had the enormous pleasure of attending a huge gathering of public sector staff at the early years collaborative in Glasgow. It involved discussion and the exchange of information and guidance about the achievements that have been made in various preventative spending interventions across the country. It was a most encouraging and inspiring event.

If that is not work happening on the ground, I am not quite sure what is and I am not quite sure what point Mr Hume was making. That work is being supported by the preventative spend expenditure that is being made available by the Scottish Government. If there is something that I missed in Mr Hume’s question, he can drop me a note and I will happily consider it.

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North Lanarkshire Council (Meetings)

14. To ask the Scottish Government when it last met North Lanarkshire Council and what issues were discussed. (S4O-02178)

The Scottish Government meets Scottish councils regularly and discusses a range of issues with them.

I recently met representatives of Airvolution Energy, which has submitted a planning application to North Lanarkshire Council for nine wind turbines on land between Harthill, Eastfield and Shotts. I was pleased to learn of its commitment to use local expertise and resources to carry out the work associated with construction on the proposed wind farm. It is also keen to help increase local employment by promoting skills training and apprenticeships.

I must ask you to hurry.

What assurances can the minister give that any future wind farm planning applications will have a guaranteed provision for local employment opportunities, skills training and apprenticeships, which will help increase local employment and provide real community benefits?

Without prejudicing any planning application—the member referred to one—I would say that the point I was making earlier was about considering economic impact in the determination of any planning application. The issues that she mentioned would therefore have a weighting within the system.

Separately, the Government is pursuing a procurement bill that looks at social, environmental and local economic benefits as part of procurement. As part of the renewables strategy, we would want to ensure that Scotland benefits from every aspect of the technology and every part of the supply chain so that we maximise the benefits of the industry for communities across Scotland.

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Business Support (Western Isles)

15. To ask the Scottish Government what action it is taking to support businesses in the Western Isles. (S4O-02179)

The Scottish Government is working closely with a wide range of organisations, including Western Isles Council and Highlands and Islands Enterprise, to support businesses and promote sustainable economic growth in the Western Isles.

HIE’s investment of £1.4 million to create a site in Tarbert on Harris has attracted a multimillion pound private sector investment by Isle of Harris Distillers Ltd. The construction of the distillery is being supported by the Scottish Government through a £1.9 million grant under the food processing, marketing and co-operation grant scheme. The development of the creative industries and media centre in Stornoway has been supported by more than £1 million of European regional development funding and £750,000 from HIE, in recognition of the employment opportunities offered by the creative sector in the Western Isles.

The Scottish Government has now had the impact report on the removal of the road equivalent tariff for commercial vehicles in the Western Isles, Coll and Tiree for some weeks. It shows that the policy has had a devastating effect on the islands’ businesses and economies. What action is the Scottish Government taking to mitigate those catastrophic effects?

Due to cuts imposed on the Scottish Government’s budget by the United Kingdom Government, it is correct to say that we have had to take difficult decisions to ensure that existing ferry routes and services are maintained. We therefore took the difficult decision to remove RET for large commercial vehicles from spring 2012.

The results of the RET pilot showed that the major impact of RET was in fact on the tourism industry, as perhaps one might expect. I understand, however, that concessions have been introduced so that lorries carrying hay, livestock and live shellfish make the return empty journey for free, other than the charges to cover pier duties.

The member will know that those matters are primarily dealt with by my colleague Keith Brown. I am perfectly sure that if she wishes to make any specific proposal about additional expenditure—where it would be made and how it would be funded—he will be happy to give it full consideration.

That ends portfolio questions. Apologies to the many members whom I could not call for supplementaries and to those whose questions we did not reach.