Chamber and committees

The international financial crisis acted as the catalyst for the sharpest drop in output in developed economies in over half a century and the first drop in world output since the Second World War. In response, governments across the globe undertook a series of co-ordinated policy measures including, where necessary, support for financial institutions alongside a range of fiscal and monetary policies. The aggregate effects of all these responses, including action taken by the Scottish Government through the Economic Recovery Plan, has been to help support jobs across the international, UK and Scottish economies.

It is estimated that elements of the Economic Recovery Plan are supporting around 15,000 jobs in the Scottish economy. This includes the capital acceleration programme, which is estimated to have supported over 5,000 jobs in the Scottish economy.

I refer the member to the answer to question S3W-24288 on 4 June 2009. All answers to written parliamentary questions are available on the Parliament''s website, the search facility for which can be found at http://www.scottish.parliament.uk/Apps2/Business/PQA/Default.aspx.

The £76 million of consequentials is available only in 2010-11 and not in future years. Therefore the Scottish Government has allocated these resources to help accelerate shovel-ready capital projects, in order to make the maximum positive contribution to Scotland''s economic recovery and to jobs, particularly in the construction industry.

We are committed to delivering a tightly managed and sustainable capital programme over the medium-term and the key judgement in assessing the implementation of that programme will be the capital budgets that are available to us in future years.

The £76 million allocation of budget consequentials announced on 14 April 2010 will support:

£31 million for affordable housing developments

£17 million capital investment in Dundee and Forth Valley colleges

£10 million for sustainable transport initiatives

£6.2 million for the upgrade of the A77 Park End to Bennane

£5.1 million for the upgrade of the A9 at Crubenmore

£3.8 million to accelerate work on the Dundee waterfront

£3 million towards renewable energy infrastructure at Arnish in the Western Isles.

This expenditure will support a range of economic and social outcomes for communities, and households across Scotland. It is estimated that in the short-term the £76 million of expenditure will support over 1,000 jobs in the Scottish economy. In addition, this expenditure can provide long-term benefits to job creation and the wider economy. In particular, by supporting certain sectors whilst demand conditions remain fragile, the expenditure can help retain key skills, such as in construction, and create a legacy of capital assets, such as public infrastructure, which can have long-lasting economic, social and environmental benefits.

The original assessment of the wider economic benefits arising from the introduction of the Glasgow Airport Rail Link (GARL) project (Roger Tym and Partners “ Assessment of Wider Economic Benefits “ June 2005, commissioned by Strathclyde Partnership for Transport) reported the potential for:

650 jobs over a 10 year period (or 65 jobs per annum) within Glasgow, and

through development opportunities within Paisley town centre, of an office market, 675-700 jobs over a three to four year period.

These figures were on the basis of employment growth forecasts for the affected local authority areas in the period 2003“11 and with the introduction of GARL passenger services in 2009.

It is reasonable to expect that the completion of the Paisley Corridor Improvements project and the introduction of resultant passenger services on the Ayrshire and Inverclyde routes will have a beneficial impact on the local economy and therefore opportunities for employment.

I refer the member to the answer to question S3W-32289 on 19 March 2010. All answers to written parliamentary questions are available on the Parliament''s website, the search facility for which can be found at http://www.scottish.parliament.uk/Apps2/Business/PQA/Default.aspx.

The following businesses had their premises (or part thereof) acquired via Compulsory Purchase under the powers of Section 12 of the GARL Act 2007:

Cape DBI

Rentokil Ailsa

Crossroads Road Plate Hire

Bike IT Motorcycle Training

Joe Shirley Tyres

Kenyart Ltd

McGarvey Construction

JMJ Scotland

JM Taylor Holdings

McConechy Tyres .

Compulsory Purchase powers could have been exercised over the following business premises, however voluntary sales were agreed:

BRB Residuary Ltd

Airlink Security Park

Mr J McGlynn.

Compulsory Purchase powers were also available to be exercised over Network Rail and Renfrewshire Council; however these rights were not used/implemented due to the existence of separate agreements.

As at 31 March 2010 some £896,275 had been spent in relation to five plots of land which were acquired for the branch line element of the Glasgow Airport Rail Link Act (2007).

Discussions between the District Valuer and the previous owners in relation to a further four plots of land acquired are still ongoing, with respect to concluding a sale price.

A number of other plots were acquired out with the compulsory purchase orders process via a wider acquisition of the resident business by Strathclyde Partnership for Transport.

It should be noted that the figure quoted above relates solely to the land acquisition cost as compensation costs, agreed on an individual basis with each affected land owner and/or business, are considered to be confidential. We have therefore only provided a summary of the individual land acquisition costs as recorded in the Sasines Register.

I refer the member to the answer to question S3W-33171 on 22 April 2010, which sets out the actual costs incurred up until 31 March 2010 along with a forecast of the remaining costs to close out. All answers to written parliamentary questions are available on the Parliament''s website, the search facility for which can be found at:

http://www.scottish.parliament.uk/Apps2/Business/PQA/Default.aspx.

The actual wording in the submission to Ministers by officials in Transport Scotland, dated 1 May 2009, reads as follows at page 2, paragraph 10 it states inter alia:

Costs

10. The cost profile for the Branch Line project is attached at Annex A. To date around £40m has been spent on preparatory and advance works. The cost of the work on the main line is contractually committed through the CP4 Determination and is financed through the RAB.

To clarify therefore the cost incurred to date, as at 1 May 2009, of around £40m refers to the Glasgow Airport Rail Link / Paisley Corridor Improvements (GARL/PCR) project in totality and is not the cost associated with the branch line element of the GARL project.