Hansard

Amendments 286 and 287 provide Scottish ministers with new powers to pay grant to support a range of transport initiatives across Scotland. As I will explain, we need two separate powers.

At present there are few legislative avenues that would allow Scottish ministers to make specific grants for transport-related purposes. Those that do exist are constraining in one way or another. In some cases, that has meant that worthwhile projects could not be funded. For example, the Transport Act 1919 provides ministers with relatively wide powers to pay grant, but each grant has a ceiling of £1 million. In 1919 that was a considerable sum, but today it is not. This Parliament gives us the opportunity to update those powers or, if appropriate, to put new powers in place.

In bringing forward these two amendments, we have been guided by one overarching principle—transparency. Where we can be specific—in amendment 287, for example, regarding the freight facilities grant—we have been. Where being specific would get in the way of practical policy making—in amendment 286, for example—we have built in a reporting stage, so that Parliament can see what the Executive is doing with public money.

The main purpose of amendment 286 is to give the Scottish ministers a flexible power to make grants under the new integrated transport fund that I announced in Parliament in September. The integrated transport fund will support initiatives that are founded in well-prepared and widely accepted local and regional transport strategies; contribute clearly to our vision of a modern, safe, reliable and integrated transport system; enable the levering in of private investment; and pave the way for the introduction of congestion charging.

The integrated transport fund is not intended as simply another challenge fund to which local authorities can make bids. Rather, it will be a fund that the Executive, often working in partnership with local authorities and the private sector, can use to respond to pressures as they arise. An example of those pressures might be the outcome of the multi-modal study work that we are doing on the A8, A80 and M74 corridors. It is right that the Scottish ministers should have the ability to make grants to push forward such developments.

The new power also has other uses. Let us take the examples of the rural transport fund or funding for the Scottish Passenger Transport Authority's rail services. In both cases, the legislative constraints I referred to earlier mean that the grant can be paid only annually by the special grant report mechanism. Local authorities and the Association of Transport Co-ordinating Officers have said that that restricts authorities from achieving best value in the tendering of services. The new power will enable the Executive to make three-year funding awards to local authorities for rural transport services and allow authorities to award contracts over a three-year period. That will enable authorities to benefit, as is not possible at present, from more integrated tendering procedures, together with longer-term contracts.

Given the general nature of the new power and in recognition of the legitimate interest of the committee, and indeed of the Parliament, in new transport projects and in the costs associated with such projects, I believe that it is only appropriate that Scottish ministers should be required to lay before the Parliament a report on the grants made in any given financial year. The report will include details of the amount of the grant, the person to whom it has been paid and the purpose for which it has been paid. I am sure that that new, flexible, grant-making power will be welcomed by local authorities and others involved in trying to improve Scotland's transport system.

I turn to amendment 287, which relates directly to the extension of an existing specific power to make grants to encourage the transfer of freight from road to more environmentally friendly modes of transport. The amendment complements a similar amendment to the Transport Bill that has been agreed to at Westminster.

The current freight facilities grant scheme covers railways and inland waterways. This amendment will give Scottish ministers powers to extend the scheme to include coastal and short-sea shipping routes that begin and end in Scotland. That is a long-standing policy commitment that will increase the opportunities for transferring freight from lorries to ships.

Section 140 of the Railways Act 1993 gives ministers powers to award freight facilities grants in relation to inland waterway movements. This amendment will give powers to Scottish ministers to award grants in relation to movements by sea as well as by inland waterway. That is a major step forward for Scotland. The amendment will repeal section 140 of the Railways Act 1993. The powers governing the award of freight facilities grants to freight on the railways are unaffected. Apart from extending the scheme to include types of shipping movements that are currently excluded, by allowing the payment of grant for non-capital as well as capital costs, the amendment will give us greater flexibility in how the scheme is operated.

A similar amendment has been agreed to the Transport Bill at Westminster. It will pave the way for an order under section 63 of the Scotland Act 1998 that will enable Scottish ministers to award freight facilities grants for services that only start or end in Scotland, thereby complementing the provisions in this bill. There are different grant powers for different purposes. Together, they significantly advance Scottish ministers' powers to support worthwhile transport initiatives.

I move amendment 286.