Chamber
Meeting of the Parliament 26 January 2011
26 Jan 2011 · S3 · Meeting of the Parliament
Item of business
Budget (Scotland) (No 5) Bill: Stage 1
I thank the convener of the Finance Committee for his report to the Parliament.
However, from looking at the budget, I believe that the signal failure of nearly four years of Scottish National Party Government is clear for everyone to see. When John Swinney delivered his first budget, Scotland had the lowest rate of unemployment in the United Kingdom, but we now have the highest. In Scotland today there are 225,000 unemployed people. Those are families who are burdened by unemployment and who are wondering how they will make ends meet.
When we drill down into the figures, it gets a lot worse. The number of 16 to 24-year-olds who have been out of work for more than a year has increased by a staggering 338 per cent. This budget should be about jobs, jobs and jobs, but it is not.
A few days ago, I had the opportunity to visit Glasgow (Central) Citizens Advice Bureau. I met Georgina Woods, who was the latest person to find work with Labour’s future jobs fund. Sadly, she will also be one of the last, because the Tories are abolishing the fund. Of course, in Scotland, we do not have to accept that. We have our own Government, so we can stand up for young people and give them that chance in life. However, what is Mr Swinney doing? We have obviously heard a lot from him in his previous remarks, but on the basis of the budget and the reports that have been given to committees of the Parliament, the answer is that he is doing nothing much.
In evidence to the Finance Committee—which was not quoted by the cabinet secretary—Peter Wood, director of Optimal Economics Ltd, said:
“I fear that the commitment to economic growth is more of a slogan than a reality.”
Jo Armstrong from the Centre for Public Policy for Regions, stated:
“it is difficult to see the link between the headline of sustainable economic growth and the current budget allocations.”—[Official Report, Finance Committee, 30 November 2010; c 2864.]
So the primary purpose—in capital letters—that the SNP seems to have is not addressed in its budget. The Economy, Energy and Tourism Committee concluded
“that insufficient priority has been given to sustaining the growth of the economy in setting budget priorities.”
However, from looking at the budget, I believe that the signal failure of nearly four years of Scottish National Party Government is clear for everyone to see. When John Swinney delivered his first budget, Scotland had the lowest rate of unemployment in the United Kingdom, but we now have the highest. In Scotland today there are 225,000 unemployed people. Those are families who are burdened by unemployment and who are wondering how they will make ends meet.
When we drill down into the figures, it gets a lot worse. The number of 16 to 24-year-olds who have been out of work for more than a year has increased by a staggering 338 per cent. This budget should be about jobs, jobs and jobs, but it is not.
A few days ago, I had the opportunity to visit Glasgow (Central) Citizens Advice Bureau. I met Georgina Woods, who was the latest person to find work with Labour’s future jobs fund. Sadly, she will also be one of the last, because the Tories are abolishing the fund. Of course, in Scotland, we do not have to accept that. We have our own Government, so we can stand up for young people and give them that chance in life. However, what is Mr Swinney doing? We have obviously heard a lot from him in his previous remarks, but on the basis of the budget and the reports that have been given to committees of the Parliament, the answer is that he is doing nothing much.
In evidence to the Finance Committee—which was not quoted by the cabinet secretary—Peter Wood, director of Optimal Economics Ltd, said:
“I fear that the commitment to economic growth is more of a slogan than a reality.”
Jo Armstrong from the Centre for Public Policy for Regions, stated:
“it is difficult to see the link between the headline of sustainable economic growth and the current budget allocations.”—[Official Report, Finance Committee, 30 November 2010; c 2864.]
So the primary purpose—in capital letters—that the SNP seems to have is not addressed in its budget. The Economy, Energy and Tourism Committee concluded
“that insufficient priority has been given to sustaining the growth of the economy in setting budget priorities.”
In the same item of business
The Presiding Officer (Alex Fergusson)
NPA
The next item of business is a debate on motion S3M-7771, in the name of John Swinney, on the Budget (Scotland) (No 5) Bill.14:35
The Cabinet Secretary for Finance and Sustainable Growth (John Swinney)
SNP
Last week, I introduced the 2011-12 budget bill, which I commend to the Parliament. The bill takes forward the draft budget that I set out in November.I welc...
Margo MacDonald (Lothians) (Ind)
Ind
The cabinet secretary will forgive me if I do not identify a source from which I hope that he will find enough money to help to pump prime an initiative that...
John Swinney
SNP
There have been constructive discussions between sportscotland and Midlothian Council about the situation at Hillend, and I hope that a positive outcome can ...
Rhoda Grant (Highlands and Islands) (Lab)
Lab
The cabinet secretary is aware that Argyll and Bute Council has a huge number of islands to cover. Why does it face one of the largest cuts in spending compa...
John Swinney
SNP
Argyll and Bute Council’s need to support islands will be covered by the special islands needs allowance, which is applied to all local authorities that have...
Jeremy Purvis (Tweeddale, Ettrick and Lauderdale) (LD)
LD
I seek clarification regarding the figures that the Government has published for the coming four years. Are those figures predicated on the 3 per cent effici...
John Swinney
SNP
The Government envisages that, for the longer term, an efficiency programme of 3 per cent will be essential to deal with the financial challenges that we fac...
Elaine Smith (Coatbridge and Chryston) (Lab)
Lab
Will the cabinet secretary take an intervention?
The Presiding Officer
NPA
No. I am afraid that the cabinet secretary is in the last minutes of his speech.
John Swinney
SNP
I will have to draw my remarks to a close now, although I will be happy to give way to Elaine Smith when winding up the debate.I will consider the Finance Co...
Mike Rumbles (West Aberdeenshire and Kincardine) (LD)
LD
On a point of order, Presiding Officer. It is on a procedural point. Could you make it absolutely clear that Parliament must not be misled? The cabinet secre...
The Presiding Officer
NPA
Order.
Mike Rumbles
LD
The correct procedure is for the Parliamentary Bureau to recommend to Parliament that it consider the regulations next week. That is for Parliament, not the ...
The Presiding Officer
NPA
That item will be on the agenda for next Tuesday’s bureau meeting and it will be duly discussed then.I call Andrew Welsh to speak on behalf of the Finance Co...
Andrew Welsh (Angus) (SNP)
SNP
Before I turn to the detail of our report and recommendations, I will briefly outline some of the changes to this year’s budget process.The fact that the UK ...
Margo MacDonald
Ind
Will the member give way?
Andrew Welsh
SNP
Forgive me, but I have a great deal to cover. The key issue of efficiency savings has exercised the Finance Committee and our predecessors in sessions 1 and ...
Andy Kerr (East Kilbride) (Lab)
Lab
I thank the convener of the Finance Committee for his report to the Parliament.However, from looking at the budget, I believe that the signal failure of near...
Margo MacDonald
Ind
Will the member give way?
Andy Kerr
Lab
I will not at the moment, thanks.In four years, Mr Swinney has brought forward four budgets. He has slashed the funding to enterprise, to energy and tourism,...
The Presiding Officer
NPA
Order.
Andy Kerr
Lab
The kids who are in schools that are decaying around them are not laughing, Mr Swinney. The people in our hospitals who require better care are not laughing,...
The Presiding Officer
NPA
Order. Can we have slightly better order, please, from the party in government?
Andy Kerr
Lab
Not in my words, but in the words of The Sun, the budget was described as “The great Swinney swindle”. He did not even have the ability to respond to all-par...
John Swinney
SNP
Would Mr Kerr like to comment on the competitive disadvantage that he was party to creating when he was a minister in the previous Administration, which kept...
Andy Kerr
Lab
We set about—Interruption.
The Presiding Officer
NPA
Order.
Andy Kerr
Lab
We set about creating parity. Perhaps the cabinet secretary will compare his actions today to his manifesto promise that rates in Scotland would not rise abo...
Derek Brownlee (South of Scotland) (Con)
Con
There are things in this budget with which we agree, such as the pay freeze on salaries of over £21,000, to protect jobs; the protection of the national heal...