Chamber
Meeting of the Parliament 02 February 2011
02 Feb 2011 · S3 · Meeting of the Parliament
Item of business
Non-Domestic Rates (Levying) (Scotland) (No 3) Regulations 2010
I am not sure about that part of the country, but I know that the new Sainsbury’s in Strathaven has enhanced the retail offer and the shops are surviving and doing well. Is the member suggesting that we use a tax measure to change completely the planning structure and our approach to business in Scotland? The argument does not stack up.
The Government’s proposal came completely out of the blue. The Government did not have the courage to discuss the measure with the business community or to carry out the impact assessment that was required if the Parliament and business were to understand the proposal. The Government should and will pay the price of its incompetence. It has dug a £30 million black hole in its budget and it is responsible for filling it. If we are to believe leaked memos from the First Minister’s office, the Government is digging further and creating a £200 million black hole in our budget.
The proposal shows complete ignorance of an important sector of Scottish business. One employee in nine works in the retail sector, which accounts for a quarter of the business rates that are paid in Scotland. The retail sector is a property-intensive and property-dependent business, which is creating jobs in Scotland, despite the Government’s best efforts.
The retail sector will drive our economy forward and create thousands of new jobs, but it will not do so under the conditions that are being set by the Government. The levy, as set, is too high and will affect retailers’ decisions on whether to open new stores or to expand floor space in or refurbish existing stores. That will create difficulties for job creation opportunities in Scotland.
The Government’s ignorance of business is plain to see. It talks about mass profits but fails to understand the industry’s profit margins and how they operate. Perhaps Mr Mather can tell us which business school would advocate the measures that the Government is proposing. Stores operate on high turnover and low margins. Individual stores are separate cost centres within the business, and investment decisions are taken at global, European and UK levels.
If the SNP thinks that sending such a signal will not inhibit investment in Scotland, it is plainly wrong. Our businesses in Scotland will suffer. Decisions on opening, expanding and refurbishing stores will be affected by the proposal. The average number of jobs that a large supermarket creates is more than 600. In East Kilbride, applications are outstanding and we stand to lose thousands of job opportunities as a result of the proposal.
SNP members should look in the mirror and ask themselves some questions. Does the measure address the primary purpose of the so-called Government? Will it build our economy? Will it create jobs in Scotland? The answer to all those questions is a resounding no.
Joe FitzPatrick (Dundee West) (SNP) rose—
The Government’s proposal came completely out of the blue. The Government did not have the courage to discuss the measure with the business community or to carry out the impact assessment that was required if the Parliament and business were to understand the proposal. The Government should and will pay the price of its incompetence. It has dug a £30 million black hole in its budget and it is responsible for filling it. If we are to believe leaked memos from the First Minister’s office, the Government is digging further and creating a £200 million black hole in our budget.
The proposal shows complete ignorance of an important sector of Scottish business. One employee in nine works in the retail sector, which accounts for a quarter of the business rates that are paid in Scotland. The retail sector is a property-intensive and property-dependent business, which is creating jobs in Scotland, despite the Government’s best efforts.
The retail sector will drive our economy forward and create thousands of new jobs, but it will not do so under the conditions that are being set by the Government. The levy, as set, is too high and will affect retailers’ decisions on whether to open new stores or to expand floor space in or refurbish existing stores. That will create difficulties for job creation opportunities in Scotland.
The Government’s ignorance of business is plain to see. It talks about mass profits but fails to understand the industry’s profit margins and how they operate. Perhaps Mr Mather can tell us which business school would advocate the measures that the Government is proposing. Stores operate on high turnover and low margins. Individual stores are separate cost centres within the business, and investment decisions are taken at global, European and UK levels.
If the SNP thinks that sending such a signal will not inhibit investment in Scotland, it is plainly wrong. Our businesses in Scotland will suffer. Decisions on opening, expanding and refurbishing stores will be affected by the proposal. The average number of jobs that a large supermarket creates is more than 600. In East Kilbride, applications are outstanding and we stand to lose thousands of job opportunities as a result of the proposal.
SNP members should look in the mirror and ask themselves some questions. Does the measure address the primary purpose of the so-called Government? Will it build our economy? Will it create jobs in Scotland? The answer to all those questions is a resounding no.
Joe FitzPatrick (Dundee West) (SNP) rose—
In the same item of business
The Deputy Presiding Officer (Alasdair Morgan)
SNP
The next item of business is a debate on Parliamentary Bureau motion S3M-7841, in the name of Mike Rumbles, on the Non-Domestic Rates (Levying) (Scotland) (N...
The Deputy Presiding Officer
SNP
Before I call members to speak, I point out that time is limited, so we had better stick to the speaking time limits. I call Jeremy Purvis, who has seven min...
Jeremy Purvis (Tweeddale, Ettrick and Lauderdale) (LD)
LD
This is the third time that we have brought to Parliament concerns about the rates that businesses in Scotland pay. In advance of today, we have consistently...
Jeremy Purvis
LD
I hear SNP members shouting “Jobs, jobs.” I will come back to jobs in a moment. Perhaps those members are referring to the 8,000 jobs that the Scottish Retai...
Gavin Brown (Lothians) (Con)
Con
The Scottish Government’s proposals are nothing more than an ill-judged raid on retail at a time when it least needs it. At the beginning of the process, bac...
Margo MacDonald (Lothians) (Ind)
Ind
As another Lothians member, I am intrigued as to how much it is estimated the 12 stores in Princes Street will lose. Does the member have those figures to hand?
Gavin Brown
Con
From the most accurate figures that I have seen, which involved adding up the stores that we knew about—in which we were assisted by the Edinburgh Chamber of...
Margo MacDonald
Ind
Each?
Gavin Brown
Con
That is the total for Princes Street. It might be slightly more or less, but that is the ballpark figure. That is additional taxation, on top of the rates th...
The Minister for Enterprise, Energy and Tourism (Jim Mather)
SNP
To what extent does the UK Government consult on rises in VAT and other changes that it makes?
Gavin Brown
Con
I took that intervention for a specific reason and the minister was unable to tell us what dialogue took place. There was nothing—not even a bit of brainstor...
Gil Paterson (West of Scotland) (SNP)
SNP
Nonsense.
Gavin Brown
Con
We hear the loyal SNP back benchers, but the point is that, because the Government could not be bothered to do a business and regulatory impact assessment, w...
Andy Kerr (East Kilbride) (Lab)
Lab
In last week’s debate on the budget, I said that rising unemployment was the signal failure of nearly four years of SNP Government. When John Swinney deliver...
Stuart McMillan (West of Scotland) (SNP)
SNP
The member mentioned Princes Street. Has he seen Princes Street in Port Glasgow, which has been decimated by the huge Tesco at the bottom of the street?
Andy Kerr
Lab
I am not sure about that part of the country, but I know that the new Sainsbury’s in Strathaven has enhanced the retail offer and the shops are surviving and...
Andy Kerr
Lab
Labour is not in a position to support this unacceptable policy, which was created by an SNP Government in crisis. As we have seen from leaked documents from...
The Deputy Presiding Officer
SNP
Order.
Andy Kerr
Lab
John Hannett is the leader of the workers on whom the SNP’s tax will have the greatest impact. He said:“The proposed levy is at such a high rate that it is l...
Patrick Harvie (Glasgow) (Green)
Green
Greens can support two policy objectives that might be addressed in small part: revenue raising to offset the worst of the Tory cuts in Scotland, of which I ...
The Cabinet Secretary for Finance and Sustainable Growth (John Swinney)
SNP
As I explained to Parliament when I set out the rationale for the draft budget for 2011-12, we have had to face tough decisions. The United Kingdom Governmen...
Duncan McNeil (Greenock and Inverclyde) (Lab)
Lab
Will the cabinet secretary take an intervention?
Mike Rumbles (West Aberdeenshire and Kincardine) (LD)
LD
Will the cabinet secretary take an intervention?
John Swinney
SNP
I give way to Mr McNeil first.
Duncan McNeil
Lab
How much of the £30 million tax take will go to small businesses?
John Swinney
SNP
Mr McNeil fails to understand the nature of the budget process. Interruption.
The Presiding Officer (Alex Fergusson)
NPA
Order.
John Swinney
SNP
If we want to provide a balanced budget to the Parliament, we must be able to afford all the priorities in it. The budget contains support for the small busi...
Gavin Brown
Con
Why was a business and regulatory impact assessment not undertaken? Did the cabinet secretary intervene personally to block that?
John Swinney
SNP
I made it clear that there was no need for such an impact assessment because the proposal will affect 0.1 per cent of the business property base in Scotland,...