Meeting of the Parliament

Meeting date: Wednesday, October 31, 2012

Official Report 891KB pdf

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Portfolio Question Time

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Finance, Employment and Sustainable Growth

We move on to portfolio question time. In order to get in as many members as possible, I would prefer short and succinct questions, with answers to match, although that may vary.

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Draft Budget 2013-14 (Departmental Expenditure Limit Transfer)

1. To ask the Scottish Government what budget lines will be affected by the transfer of £250 million from DEL resource to DEL capital, as announced in the 2013-14 draft budget. (S4O-01396)

The transfer of nearly £250 million from DEL resource to DEL capital for 2013-14 will be made up of transfers within the following budget lines: health, enterprise bodies, the future funds—the warm homes and future transport funds—the young Scots fund, digital, housing, and rural and fisheries.

Across the chamber, we all welcome the emphasis on jobs and growth, but excessive cuts to resource budgets increase pressure on public sector employment, and failure to prioritise capital investment properly can dampen growth. It is a hard balancing act for the cabinet secretary. Will he therefore ensure that, in the interests of transparency, parliamentary committees are provided with details of how the £250 million transfer will be implemented? Will he also explain how those funds will help the construction sector, which has been rocked by two recessions and a decline in industry confidence?

I have already set out to Parliament the information in principle around the shift from resource to capital budgets. That is happening within those discrete budgets, so there is no question, for example, of resource allocations in one subject area being transferred to the capital budget in another. It is simply a transfer within those policy areas to support entirely the objectives that Margaret McCulloch highlighted of ensuring that more support is in place for the construction sector. We are doing that, of course, because of the very significant reduction in the capital budget of about a third in the current financial year.

I am certainly very happy to explain any further detail that the Parliament requires on those transfers. My colleagues and I are involved in scrutiny sessions with different parliamentary committees on these points. I assure Margaret McCulloch that the purpose of the transfer from resource to capital is to support the construction sector. As she will be aware from gross domestic product statistics for the most recent quarter, there was welcome growth in construction activity in Scotland.

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Local Authority Savings

2. To ask the Scottish Government what combined savings local authorities are expected to make in 2013-14. (S4O-01397)

As the Scottish draft budget 2013-14 sets out, the Scottish Government expects that all public sector bodies will individually deliver annual efficiency savings of at least 3 per cent over the course of the current spending review. While there is no requirement for local authorities to report on combined efficiency savings, the Convention of Scottish Local Authorities has reported that local government cash efficiencies for 2011-12 total £428.8 million and that that represents above 3 per cent efficiency savings.

I thank the minister for his answer but I asked about 2013-14. While I understand that perhaps not all local authorities have made public their spending priorities for this year, most have issued a savings package that runs alongside the spending review period. Why is it that the minister and his officials do not have the figure for 2013-14 to allow the minister and the cabinet secretary to analyse the impact on Scotland’s economy of the cuts that local authorities have been forced to make?

It is a matter for local authorities to determine the savings that they have to make. It is not just about the income that they receive from Government but about demand on their services. The financial pressures that each local authority faces will vary from one to the next. The engagement process that they deploy and deliver to determine which savings to make is a matter for them.

The member could reflect on the fact that, as a share of Scottish Government spending, local government spending has been maintained by this Scottish Government and is far more generous than that which local government enjoyed under the previous Labour Executive.

Given the historic concordat between the Scottish Government and local authorities, I respectfully ask what approach is being taken to address the significant levels of debt currently held by local authorities in Scotland.

The debt held by local authorities is kept within the prudential framework to ensure that any borrowing that a local authority chooses to make is within responsible limits, as determined by the financial regulations within which local authorities are expected to operate. That is kept under review and gives us some certainty that it is affordable and is delivering the economic regeneration that we were discussing earlier.

As well as being anxious about the savings that they might be expected to make, many in local government are concerned about the impact of the Public Service Pensions Bill, which is currently going through Westminster. Can the minister tell us whether the Scottish Government will lodge a legislative consent motion so that we can discuss the implications of that bill for everyone in local government in Scotland?

Those matters are under consideration. The Scottish Government has been discussing the potential impacts with partners and will continue to do so. It would be far better if pensions and other reserved matters were decided in this place rather than by a Westminster Government that the people of Scotland did not elect.

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Preventative Spending (Contribution of Universal Benefits)

3. To ask the Scottish Government how universal benefits contribute to its preventative spending agenda. (S4O-01398)

The Scottish Government has made an important strategic decision to move towards preventative spending, which means investing in health and other social policy areas. That ultimately saves public money in the long run, while maintaining or improving outcomes. Our approach to what are sometimes termed universal benefits supports that agenda.

?For example, by keeping people independent and living at home for as long as possible, we reduce the need for more expensive care in hospitals or care homes. By abolishing prescription charges, we are helping to ensure that our people receive the medical treatment that they need to lead healthy, productive lives. By providing free and more comprehensive eye tests, we can identify and treat a wider range of conditions at an earlier stage, reducing the need for acute interventions. By abolishing tuition fees, we are encouraging our people into higher education, irrespective of wealth, and supporting participation in the labour market.

The minister will be aware that at least 73,000 frail elderly people benefit from free personal care. If those people had to be provided with geriatric beds instead of care packages, how much would it cost the public purse?

It would be far more expensive to the public purse. In fact, the cost per head per annum would be some £82,000, including the overhead costs of the national health service. In comparison, in relation to home care, such an individual’s costs would be as low as £6,240 per annum. Although those figures are averages, I make the point that keeping people at home, in the community or in a care home is not just financially beneficial but socially valuable. It is vital that we protect such policies—policies that were delivered by devolution, but which can be safeguarded with independence.

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Orkney Islands Council (Funding)

4. To ask the Scottish Government what discussions it has had with Orkney Islands Council since May 2012 about how the shortfall in local government funding for Orkney, compared to Shetland and the Western Isles, might be addressed. (S4O-01399)

I have not had any direct discussions with Orkney Islands Council on that specific issue since May 2012. However, ministers and officials regularly meet representatives of councils, including Orkney Islands Council, to discuss such issues.

I recognise that the minister is a relative newcomer to this aspect of local government finance, but I am sure that his colleague, the Cabinet Secretary for Finance, Employment and Sustainable Growth, has briefed him on the many meetings and exchanges of correspondence that we have had over the years on the issue.

I recognise that there have been problems with opening up the funding formula. In the past, Mr Swinney has found ways of providing specific funding in relation to, for example, the extension of ferry services in the Orkney islands, which has helped to deal with the shortfall. Might the minister look to the imminent extension of the Hoy Head’s capacity, as a way of addressing the shortfall in funding to my constituency?

I regret to inform the member that I am not a newcomer to local government finance; I was just looking at it—

The minister is a newcomer to this aspect of it.

That is a fair point. In the Convention of Scottish Local Authorities, all parties came together to agree that the distribution formula is about as fair as it can be. Of course, each one of the 32 authorities would like a formula that benefits and would be more advantageous to it but, in essence, no alternative distribution mechanism has been found.

We probe the integrity of the indicators that lead to the financial outputs and we will continue to do so, reflecting on the point that the member has made. However, to substantially change the distribution mechanism would require COSLA’s agreement and, as it stands, COSLA would prefer that we continue with the current distribution formula. That transcends all the political parties that are currently members of the convention.

The Scottish Government must recognise that there are increased costs in delivering services in our island communities, and that Orkney loses out, even in comparison to our other island communities. The same is true of health funding. Although a working group was set up some years ago to consider the health funding distribution formula, no discernible difference has occurred with regard to funding for remote and island communities.

That is exactly why the island communities enjoy the highest per head of population funding in all the local authorities. That mechanism is already deployed to ensure that the specific and unique circumstances that those populations face are taken on board, and there is specific support for the indicators that are more advantageous to the rural and island situation.

Do ministers factor in the relative underfunding of Orkney, compared to funding for the other island authorities, when addressing other Government grants and funding streams? What has happened to the special island needs allowance?

As I said, there are mechanisms in place to ensure that the island authorities are well supported. The top three island authorities have the most generous per head of population funding in Scotland. Other bid funding is considered on a case-by-case basis. However, I ask the member to reflect on the spending decisions that we have made that ensure that the island communities are supported, not only through the mechanism that I have mentioned but through other Government financial packages, such as the road equivalent tariff.

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Draft Budget 2013-14 (Departmental Expenditure Limit Transfer)

5. To ask the Scottish Government when the budget lines will be identified in relation to the transfer of £250 million from DEL resource to DEL capital as announced in the 2013-14 draft budget. (S4O-01400)

I apologise for the similarity of the wording of my question to that of the first question.

For the sake of variety, I will say that, as I said in my answer to Margaret McCulloch, the budget lines have already been identified.

I note what the cabinet secretary said in response to my colleague, Margaret McCulloch.

When will the committees become aware of the identification of those budget lines? As the cabinet secretary is aware, committees are currently scrutinising the budget and, unless committee members are aware of where resource might be transferred from, they will be less able to make a judgment regarding the effect on public services or on public sector employment.

I am happy to share that breakdown with the parliamentary committees and will do so in the light of the exchanges today.

How much of the transfer from resource to capital came from savings from the Forth replacement crossing?

I have gone round the houses on this question—I have had déjà vu not just with Margaret McCulloch’s and Elaine Murray’s questions but with Gavin Brown’s question. We have been round this point, and I have previously made clear to Mr Brown that individual projects have made savings in terms of their overall financial allocations.

The savings from the Forth replacement crossing in its original conception were used to fund a number of long-term investment funds, including the warm homes fund and the young Scots fund. Shorter-term savings have been made on the Forth replacement crossing because of the efficiency of the construction process that the Government has presided over. In the budget statement in September, I announced that £20 million was being taken out of the risk contingency for the Forth replacement crossing and invested in new housing projects, which I am sure Mr Brown will welcome as a consequence of the value of that investment.

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Scottish Office of Budget Responsibility

6. To ask the Scottish Government what plans it has to support an independent Scottish office of budget responsibility. (S4O-01401)

The Scottish Government recognises that a robust fiscal framework that ensures responsible management of Government borrowing and financial planning is vital to the long-term sustainability of the public finances. In response to the second report of the Council of Economic Advisers in February 2010, the Scottish Government agreed in principle to the creation of a fiscal policy commission alongside moves towards greater fiscal autonomy, including the opportunity to borrow. In March 2012, the First Minister announced that the fiscal commission working group will include Professors Andrew Hughes-Hallett, Sir Jim Mirrlees, Frances Ruane and Joseph Stiglitz.

I thank the cabinet secretary for that reply. I hope that what he is driving at is that the commission will ultimately be independent of Government. Does he accept that Robert Chote, the boss of the Office for Budget Responsibility down in London, is able to give an independent, respected and authoritative assessment of Government finance and growth figures and other figures that are produced for the benefit of assessing the state of the economy? In that light, does he accept that, if the commission is to be meaningful and valuable not just for him but for future finance secretaries of whatever political persuasion, the important aspect is that it is independent of Government?

I agree unreservedly with that point. The essential lesson that has been arrived at from the work undertaken by the Council of Economic Advisers is that there is a discrete role, independent of Government, for the provision of quality information in relation to the financial assumptions that will arise out of the changes to the present constitutional arrangements. The Government accepts that argument, and we have taken steps to ensure that a fiscal commission—of the strength and capability of the four members that I listed—is able to undertake some of that important preparatory work on behalf of the Scottish Government and Scottish public.

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Business Improvement Districts

7. To ask the Scottish Government how many business improvement districts have been established and are in development. (S4O-01402)

There are now 15 operational business improvement districts across Scotland and a further 18 BIDs are in development.

I thank the minister for his answer. I am aware that he knows about the £20,000 that the Paisley BID recently received. Does he agree that the money is a significant boost to the BID process in Paisley and will help to take it to the next stage?

Yes.

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Support for Business (Hamilton, Larkhall and Stonehouse)

8. To ask the Scottish Government how many businesses in the Hamilton, Larkhall and Stonehouse constituency have received support from its direct interventions, such as the small business bonus scheme. (S4O-01403)

Data are not held on a constituency basis, but official statistics published on 24 October show that almost 3,600 business properties in South Lanarkshire are benefiting from the small business bonus scheme. That is the highest number since the introduction of the scheme and would have saved small businesses in South Lanarkshire, including those in Hamilton, Larkhall and Stonehouse, more than £28 million since 2008.

I thank the minister for that very welcome news. Perhaps he will want to congratulate Hamilton on voting in favour of its BID status recently, following the minister’s visit. The businesses in the area need that boost for their economic future. In light of Labour’s cuts commission, does the minister share my concern that cutting the small business bonus scheme would severely damage the future of those businesses in Hamilton?

For some of the reasons that Christina McKelvie gave, the Government has secured the small business bonus. That is delivering for businesses, which is why we have committed to it for the lifetime of the parliamentary session.

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Cycling Infrastructure

9. To ask the Scottish Government what recent representations the Cabinet Secretary for Finance, Employment and Sustainable Growth has received on the need for investment in cycling infrastructure. (S4O-01404)

I feel a sense of trepidation in saying that I have received one email from an MSP, dated 10 October, which enclosed an email from one of their constituents. I have been on the receiving end of significant campaigns in the past, but recent correspondence has been more modest. However, the Minister for Transport and Veterans receives representations regularly on a range of cycling issues, including road safety, cycle training and investment.

I am sure that the cabinet secretary’s trepidation is unwarranted. He will be aware that I have form on the issue, which I have raised previously in the chamber with transport and climate change ministers.

The cabinet secretary will also be aware that a number of cycling organisations are concerned that, without sustained investment in cycling infrastructure, it will not be possible to meet the ambitious target of 10 per cent of all journeys being made by bicycle by 2020. Those organisations want to know that we share their ambition to make Scotland a cycle-friendly nation, with the investment to match. Will the cabinet secretary therefore agree to meet me and Alison Johnstone—the co-conveners of the cross-party group on cycling—to discuss how we can build on the increased funding of the past 12 months, so that we can meet the 2020 target?

I acknowledge and welcome Mr Eadie’s long-standing interest in cycling. He will be aware that, in last year’s budget, I committed to expenditure of £7.16 million this year and of £8.16 million and £9.16 million in the following two years. On 20 September, I announced an additional £6 million for cycling development, which I am sure he welcomes.

That action is part of our active steps to strengthen the provision that is put in place to assist in developing cycling infrastructure. I would be happy to meet Mr Eadie and Alison Johnstone to discuss the issue further. I acknowledge the interest of a range of organisations in the debate and I would be happy to have further discussions.

I highlight to the cabinet secretary that I have received a number of representations about urban and rural cycling issues and infrastructure. On that basis, and as I am a member of the cross-party group on cycling, I ask whether the Scottish Government intends to follow up the proposal to invest £1.32 billion in active travel over the next 11 years, as set out in the report on proposals and policies.

The Government sets out its financial commitments in the budget. As I explained in my supplementary answer to Mr Eadie, the Government has made clear the financial plans.

The work to update the report on proposals and policies is on-going and will be shared with Parliament in due course. The investment that the Government has made has clearly increased in recent years. I am sure that that approach is welcome across the chamber.

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New Affordable and Social Rented Homes (Budget)

10. To ask the Scottish Government what discussions the Cabinet Secretary for Finance, Employment and Sustainable Growth has had with the Cabinet Secretary for Infrastructure, Investment and Cities to ensure that the 2012-13 budget for housing supports its ambition for new affordable and social rented homes. (S4O-01405)

I have discussions with all cabinet secretaries at Cabinet meetings, and I hold separate meetings with individual cabinet secretaries to discuss their portfolios. One of our highest priorities is taking action on housing, which is why the Government is implementing a range of measures that will not only increase the supply of affordable and social rented homes but support our construction sector, which will help to create jobs and stimulate economic growth.

I know that the cabinet secretary is aware of the huge need for affordable homes in the north-east. How will the pledge of increased affordable housing be met given the budget cut of £66 million? Of the additional £40 million that he announced for housing in the budget statement, only £10 million is to be invested in the next year. I am sure that he will say that more homes are being built with less investment, but I am told by housing associations in my region that that is being achieved largely through the spending of their reserves, and those funds have now been exhausted.

The Government is determined to meet the commitment that we made in our manifesto to deliver 30,000 affordable homes during the five years of the current session of Parliament. In the first year of that five-year period, we successfully constructed 6,882 homes, which, on the basis of rudimentary arithmetic, would suggest that after one year we are ahead of our target.

I have made the point to the Parliament many times that the Government is using a variety of measures to leverage more value from the housing expenditure that we have at our disposal. For example, the national housing trust proposition requires significantly less Government subsidy than the routine support that we provide for registered social landlord house construction programmes.

The Parliament needs to focus ever more on the outcomes that are achieved—in this case, the number of houses that are constructed—rather than on comparisons of the sums of money that are available to the housing budget. Surely it is what is achieved and delivered as a consequence of our investment that matters, rather than simply a comparison of one budget line with another.

I heard the minister’s answer, but will he take the opportunity to acknowledge that the drip-feeding of announcements and the substantial reannouncement of small funding concessions does not disguise the fact that the housing budget is substantially lower than it was two years ago?

Frankly, Mr Johnstone’s comment is a bit rich, given where he is sitting in the chamber. The reason why the housing budget is under pressure, as are all our capital budgets, is that our capital budget is £1 billion a year lower because of the actions of the Conservative Government. That is why capital investment is under pressure.

Mr Johnstone should get his argument straight. First, he should accept that point. Secondly, he should accept that this Government is delivering more value for housing investment than anyone has delivered in the past. Thirdly, he should welcome the increased amount of money that I am putting into housing as part of the prudent financial management by this Administration.

Question 11 has been withdrawn by Christine Grahame. An explanation has been provided.

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Non-domestic Rates (Poundage for 2013-14)

12. To ask the Scottish Government when it will set the non-domestic rates poundage for 2013-14. (S4O-01407)

The Scottish Government will announce its provisional non-domestic rates poundage for 2013-14 as part of the local government finance settlement later this year. Final confirmation of the poundage level will be provided early in the new year, following the United Kingdom Government’s announcement of its poundage, which we are committed to matching.

The minister will be aware of calls from Scottish Chambers of Commerce for business rates for 2013-14 to be frozen in the light of the 5.6 per cent increase in this year’s rates, which was triggered by the high level of the retail prices index in September last year when it hit a 20-year spike. Will the minister state what discussions he has had with Scottish Chambers of Commerce about its calls? Will he clarify whether the Scottish Government is considering freezing rates as Scottish Chambers of Commerce suggests?

If my recollection is correct, Scottish Chambers of Commerce has not made any formal, direct representations to me on that point. I have, of course, seen the material in the media on its call, and I will be happy to meet it to discuss the proposal that it has put forward. I see it frequently and I am happy to consider any issue that it puts to me.

I have to make the point, however, that I have set an assumption on the non-domestic rates income for 2013-14 that has an inflation assumption embedded within it. If that was not applied, there would be a financial consequence for the public finances of Scotland.

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Tax Consultation Forum

13. To ask the Scottish Government when the tax consultation forum will next meet and what issues will be on the agenda. (S4O-01408)

Plans for the tax consultation forum are being developed. Its aim is to provide opportunities for the Scottish ministers to provide information to and seek views from those with an interest in tax on relevant issues including proposed Scottish tax legislation and consultations. Arrangements for the first meeting will be made public as soon as possible.

Recently, we learned that Starbucks, which according to its shareholders reports is a patently profitable enterprise, has paid a mere £8.6 million in corporation tax in the United Kingdom in the past 14 years and nothing in the past three. Clearly, the establishment of revenue Scotland and the prospect of further devolution represent a unique chance for us to take our time to build a fairer system instead of hastily importing United Kingdom problems and loopholes. Does the cabinet secretary agree that any new taxation system in Scotland should explicitly support the local economy and small businesses that pay their fair share of tax and support vital public services?

Our interest in supporting local economies has been demonstrated in our actions, such as the introduction of the small business bonus scheme, which has given such assistance to individual communities the length and breadth of the country, and our focus in certain other Government interventions.

Alison Johnstone makes a very serious point about the payment of appropriate tax and the tackling of tax avoidance. Indeed, I am currently immersed in these issues in dealing with the land and buildings transaction tax, the legislation for which will shortly be submitted to Parliament. We have had extensive discussions with various stakeholders to configure a regime that explicitly responds to the point I made in my parliamentary statement prior to the summer recess that the Scottish regime should aggressively tackle tax avoidance, and I assure the member that that will be at the heart of the legislation that the Government introduces.

I also assure Alison Johnstone and the Parliament in advance of the tax consultation forum meeting that these considerations have been extensively discussed with various stakeholders, including the Law Society of Scotland and the Institute of Chartered Accountants of Scotland, to ensure that we take the correct steps to construct legislation that minimises tax avoidance opportunities.

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Entrepreneurial Businesses

14. To ask the Scottish Government what benefits arise from investment in entrepreneurial businesses. (S4O-01409)

Such investment benefits the economy, businesses and society.

Is the minister aware that the cabinet secretary’s announcement of the encouraging dynamic growth entrepreneurs—or EDGE—fund has been widely welcomed? Will the fund focus in particular on proposals with the greatest prospects of creating new jobs and wealth in Scotland?

I thank Stewart Stevenson for his question, to which the answer is yes, it will. We are delighted at the very warm welcome that the EDGE fund has received across the business and public sector. For example, Sir Tom Hunter said:

“This is a huge boost for entrepreneurs in Scotland”.

Sir Willie Haughey has said:

“This scheme is something that Scotland has been crying out for. I have no doubt that this support for start-up businesses will increase the success rate.”

In response to Mr Stevenson’s question, the fund will indeed make awards to businesses judged most capable of delivering jobs and growth.

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Grameen Scotland Foundation

15. To ask the Scottish Government what its position is on the model of microfinance proposed by the Grameen Scotland Foundation for tackling poverty. (S4O-01410)

The Scottish Government is supportive of the Grameen Scotland Foundation and has provided a grant towards the costs of setting up the Grameen Bank pilot in Scotland. Given that access to finance has been, and remains, an issue for some individuals who wish to set up in business but are unable to obtain finance from traditional funding sources such as banks, we welcome the focus of the initial United Kingdom branch on communities in and around the city of Glasgow.

I welcome the Scottish Government’s support for the project, which was devised by Nobel laureate and new chancellor of Glasgow Caledonian University, Muhammad Yunus, and has been inspirational all over the globe. The cabinet secretary will be aware that the university is to examine the long-term impact of Grameen lending on communities. Will the Scottish Government support that work and, if so, how will it feed that research into its own communities strategy?

I have been involved in discussions about the Grameen Scotland Foundation for some considerable time, and I have been struck by the effectiveness of the model that Professor Yunus and the Grameen Scotland Foundation have implemented. For that reason, I gave an early commitment to the foundation of the Government’s award of a grant of £100,000 to support the development of the Grameen Bank in Scotland.

I will monitor the progress of the development very closely because there are some very interesting lessons to be learned about the way in which microfinance can transform the life chances of individuals who live in some of the most deprived circumstances in our communities. The model should attract a good deal of attention. I am particularly proud that the first venture is taking place in Scotland.

My colleague, the Cabinet Secretary for Education and Lifelong Learning, Michael Russell, had the pleasure of being present at Glasgow Caledonian University on Friday to witness the installation of Professor Yunus as the chancellor of the university. The Government welcomes that appointment.

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Assistance for Small Business (Angus)

16. To ask the Scottish Government what it is doing to assist small business in Angus. (S4O-01411)

Small businesses are the backbone of the rural economy. The small business bonus scheme assists nearly 2,200 premises in Angus, and more than 200 business start-ups in Angus had help from the business gateway last year.

The Scottish Government’s small business bonus scheme has provided vital financial assistance to high street shops across Angus and has protected existing businesses as well as encouraging start-ups. However, times are tough and shops are still closing down. Does the minister agree that the public also needs to support small-scale high street retailers on the basis of use them or lose them?

The small business bonus has been a lifeline for businesses in Scotland, each of which can make savings of up to £4,500 this year, which is £3,000 more than their counterparts south of the border. Last year, 89,087 businesses received help, which is up 4,000 on the previous year.

I entirely agree with Graeme Dey’s proposition that we all have a responsibility to use local shops or we risk losing them. We have the responsibility and pleasure of shopping locally in our constituencies, so the answer is in our hands or, perhaps more accurately, in our wallets.

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Unemployment

17. To ask the Scottish Government for what reason unemployment in Scotland rose by 0.3 per cent in the three months to August 2012, compared with a fall of nearly 0.2 per cent across the United Kingdom. (S4O-01412)

The difference is partly explained by the fact that it is estimated that more than 100,000 employment opportunities were created as part of the Olympic games in the London area. Clearly the impact of the Olympics is likely to be temporary, and those jobs may have a masking effect on the reality of the economic situation.

In 12 of the last 18 monthly releases, the Scottish unemployment rate was equal to or lower than the United Kingdom rate.

Given the shortage of qualified and skilled engineers in the oil, gas and renewable energy industries, why have student numbers at further education colleges fallen by more than 73,000 between 2008 and 2011? Does the finance secretary believe that young people in Scotland are being given the opportunities to access the skills to do those jobs?

I do believe that to be the case. That is why the Government has put in place the funding that has maintained the full-time equivalent student numbers that we proposed in 2011-12.

I also say to Mary Scanlon that the announcement that I made in the budget on the establishment of an energy skills academy is a direct response to the fact that the oil and gas industry faces many challenges in obtaining the necessary skilled personnel to support its activities. Much of our work through curriculum for excellence and other interventions to encourage more young people to become involved at an earlier stage in the technology and engineering disciplines is part of a long-term strategy to ensure that the oil and gas sector and the renewable energy sector are properly supported in the employment challenges that we will face in the years to come.