Hansard

The Presiding Officer (Tricia Marwick) NPA

The next item of business is a debate on motion S4M-00235, in the name of John Swinney, on borrowing powers and growing the Scottish economy.14:30

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

Last week, I set out to Parliament the Government’s strategic aims on the economy, and we had a valuable and constructive debate on the economic priorities f...

Willie Rennie (Mid Scotland and Fife) (LD) LD

The Cabinet Secretary for Finance, Employment and Sustainable Growth quite rightly says that investment in transport infrastructure is important. He says tha...

John Swinney SNP

Our election manifesto set out the argument that the savings to the public purse that the excellent and well-run procurement project generated, which were sa...

Gavin Brown (Lothian) (Con) Con

Not yet.

John Swinney SNP

Mr Brown says, “Not yet,” but a fixed-price contract applies.

David McLetchie (Lothian) (Con) Con

We have heard that one before.

John Swinney SNP

I say to Mr McLetchie that a fixed-price contract is a fixed-price contract. We have such a contract for the M74 project, which will be completed early, and ...

Richard Baker (North East Scotland) (Lab) Lab

We believe that the question that requires to be answered when we debate whether the Parliament should have new powers is this: will the devolution of the po...

John Mason (Glasgow Shettleston) (SNP) SNP

Is the member arguing that, in the long run, a private finance initiative approach makes better sense than the Scottish Futures Trust?

Richard Baker Lab

It certainly made no sense to delay those projects at that time. I make it clear that I am happy that we can instead endorse a strategy on borrowing powers f...

Patrick Harvie (Glasgow) (Green) Green

I understand entirely the member’s point that the amount of borrowing should not exceed the amount that can be serviced through devolved taxation. However, I...

Richard Baker Lab

We are discussing what can be achieved in the current negotiations and through proposed legislation that is in process. From that point of view, I am trying ...

David McLetchie (Lothian) (Con) Con

As a member of the Scotland Bill Committee in the previous session, it gives me great pleasure to open the debate on behalf of the Scottish Conservatives. Th...

John Swinney SNP

Is Mr McLetchie developing an argument for the limitations in the Scotland Bill to be a firm cap, as envisaged in the current proposals, or is he persuaded b...

David McLetchie Con

I am happy that there should be a principles-based approach to the determination of the appropriate figure. Whether an absolute figure or a formula and mecha...

John Swinney SNP

Will the member give way?

David McLetchie Con

No, thank you—I have to make progress.Members: Oh!

John Swinney SNP

That is a last-minute trick.

David McLetchie Con

Presiding Officer, can I take Mr Swinney’s intervention and have some extra time?

The Deputy Presiding Officer (Elaine Smith) Lab

If Mr Swinney is brief.

John Swinney SNP

Mr McLetchie went on at great length about constraints and limitations on borrowing. One of the constraints on private borrowing by Scottish Water is the rig...

David McLetchie Con

It is because Scottish Water is in the public sector, which is exactly the point that we are coming to. How disappointing—I thought that we were going to be ...

The Deputy Presiding Officer Lab

I remind members to speak through the chair.15:02

Maureen Watt (Aberdeen South and North Kincardine) (SNP) SNP

In the run-up to the 1997 UK election, Tony Blair once famously claimed that it would be odd if the Scottish Parliament did not enjoy the same powers as an E...

Neil Findlay (Lothian) (Lab) Lab

Is one of the fluctuations to which the member refers the huge fluctuation in corporation tax that may follow, should the SNP get corporation tax powers? Is ...

Maureen Watt SNP

I was referring to the fact that it will cause severe problems if we can make changes only to income tax. If we have corporation tax powers, there will be at...

Gavin Brown Con

What kind of impact would such fluctuations have on a local income tax?

Maureen Watt SNP

I am sure that that issue will be examined when a local income tax is considered. At least local councils have the option of borrowing for projects, which th...

Rhoda Grant (Highlands and Islands) (Lab) Lab

I welcome the debate, and I believe that we can reach some consensus on the issue—certainly in principle. Capital borrowing powers were introduced by the Cal...