Friday 26 February 2010

Alternative to the slanging match

OPPOSITION parties have indulged this month in personal attacks on the Deputy First Minister Nicola Sturgeon due to a non-ministerial constituency matter - anything to avoid talking about real means to rescue the Scottish economy and boost our strengths, for example in developing renewable energy, food and drink products and tourism which are so obvious here.

In my opinion, the Westminster slanging match is leading up to what some are calling the dirtiest general election ever.

When there is little to choose between rivals, muck flies. If we can focus on what Scotland and Caithness really need from government there is a bold alternative.

Should there be a hung parliament in London, minority government may result. If not, a coalition could be formed. It is the SNP's wish to exert the greatest pressure to let Scotland's needs be heard and met.

That is why the completion of the financial services enquiry in which I have been immersed will show Scotland must get bank regulation that meets our needs for fair access by our businesses and mortgage seekers to cash and investment here in the real economy.

The UK Government owns 80 per cent of RBS; surely they must stop bank bonuses and redirect investment into Scotland's proven assets. Are any of the unionist parties ready to act?

International agreement may be needed but fine words on curbing bankers is not a policy for a stable future that can be ensured by UK laws now. Don't hold your breath for anything that might curb the City of London.

*

THE unionist parties who set up the Calman Commission suggest that they want to improve the working of the Scottish Parliament.

Professor Drew Scott, of Edinburgh University, and Prof Andrew Hughes Hallett, of St Andrews, have done a service to the truth this week.

Their critical appraisal of the proposals published by the UK Government in November 2009 to reform the arrangements for funding the devolved administration in Scotland following the Calman Commission report is an eye-opener.

Jim Murphy and David Cameron say that the Scottish Parliament should be more accountable. But what does this mean?

Mr Murphy would agree to a Scottish income tax rate of 10 per cent for the first time as part of our taxes. But rather than using actual income tax receipts generated in Scotland as the basis of the adjustment, the yield to be attributed from the Scottish tax will, in the first instance, be based entirely on a Treasury forecast.

This would be opaque, open to manipulation, a non-verifiable amount, and it is non-negotiable.

Estimates based on the Treasury economic model could well result in a significant shortfall of revenues available to the Scottish administration.

Had it been in place since 1999 the shortfall amount would be in excess of £1.2 billion. Making good this revenue deficit would have required an increase in the Scottish rate of income tax by approximately 1p every five years just to retain the same level of public services.

"Any government whose expenditures are (in part or in total) funded by current tax receipts must have suitable borrowing powers to ensure that unexpected revenue shortfalls can be covered by borrowing," they say.

Yet the UK Government explicitly rejects granting borrowing powers to the Scottish Government and parliament to "smooth" current spending.

The prospective financing regime therefore increases the likelihood of instabilities which may have adverse consequences for the performance of the Scottish economy.

Profs Scott and Hughes Hallett conclude that while Labour might increase the fiscal accountability of the Scottish Parliament, "we regard this to be an extremely modest gain compared to the losses that will result if the proposal is implemented".

Labour, Tories and Lib Dems all signed up for Calman. Surely the Scottish voters deserve the right to choose, not at a general election, which produces all sorts of competing interests in play, but in a referendum on the constitution as the SNP is proposing.

*

THE Scottish and European parliaments have been at the forefront of raising understanding of the importance and possibilities of the hydrogen economy recently.

I have played a part in this. Two weeks ago I hosted in parliament a debate which featured Fuelcell Europe with United Nations Institute of Training and Research (UNITAR) and CIFAL Findhorn.

This focused on the potential that hydrogen offers to revolutionise everyday life from travel to electricity usage.

High among discussions, which were expertly chaired by my SNP Colleague Joe FitzPatrick, MSP for Dundee West, was the plan for a hydrogen corridor between Aberdeen and Inverness.

A hydrogen corridor is effectively a chain where hydrogen vehicles can fill up. Modern-day petrol stations if you will. It would be a world leader and put Scotland firmly in the forefront of hydrogen power. Electric vehicles powered by hydrogen are fast becoming the recognised alternative to those that are powered by petrol and diesel.

If the infrastructure is in place we can be pioneers. That infrastructure will use green hydrogen from local renewable sources.

The Royal Mail is already beginning to buy in new hydrogen vehicles to its fleet and you can be sure that many other companies and organisations won't be far behind in doing the same.

Coupled with the new energy created from the waves and tides from the Pentland Firth, Caithness and the rest of the North and East have the potential to be leaders in the new hydrogen era, much as the Shetland Isle of Unst has been doing in the PURE project.

Pollution is deeply cut, the only by-product is water, hydrogen is infinite and it has the potential to be a far cheaper fuel.

Considering that in Caithness we pay some of the highest fuel prices in the world, then that cannot be a bad thing.

Friday 19 February 2010

Protection for the frontline

THE third budget of the minority SNP Government was passed two weeks ago despite a range of parties' demands and gains.

Nevertheless, while Tories, Greens and the Independents voted with the SNP, the Lib Dems abstained and Labour voted against. That is despite real gains for the wishes of each party's negotiators.

The Post Office Diversification Fund, additional support for insulation schemes and the introduction of a boiler scrappage scheme, in particular, all had Labour support.

Yet Labour voted against all of the items in this budget that also included funding for student parents and more help for students.

The SNP's priorities won majority backing and include funding for the council tax freeze and also maintaining or increasing local NHS budgets. This year's SNP budget gives precedence to frontline services and economic recovery, including an increase in the health budget by 2.7 per cent to over £8.5 billion and an increase in the frontline education budget too.

Increased investment of £10 million in offshore and onshore renewables boosts Scotland's green growth industry. Key commitments in rural affairs and justice have been protected and accelerating EU cash for rural development will ensure continued investment in rural industries.

Funding for the council tax freeze puts an average £150 in householders' pockets. Funding that helps to lower prescription charges progresses and continuation of the Small Business Bonus Scheme sees the thresholds increased.

At this point in the political cycle, the SNP Government's key achievements show recorded crime at its lowest for 25 years and police numbers at their highest ever.

Record numbers of new socially-rented homes are being constructed, despite the recession.

Council tax has been frozen for three years, with funding committed until 2012. Prescription charges are on their way out by 2011. Class sizes are at their lowest ever at around 23, if not at the desired 18 per classroom in primary years one to three.

The most comprehensive scheme of apprenticeship opportunities anywhere in the UK has been agreed, with incentives for employers to take on and retain apprentices which are vital for manufacturing and many other industries. An investment of a record £14bn over this parliament in Scottish infrastructure allows capital programmes to continue to save and create jobs, such as those in the massive works of Scottish Water and for the building of schools and hospitals.

*

I NEED to correct the misrepresentation in the recent debate which rejected the removal of statutory notices from local papers, such as the one you are reading.

The origin of the idea came from COSLA on behalf of all the local councils of Scotland, no matter which combination of parties form their ruling groups.

The Scottish Government was pressed by the councils to consult on this move in order to save councils another tranche of cash, and because there is a historic concordat between Scottish and local government this took place.

I find the posturing of opposition MSPs such as Jamie Stone and David Stewart less than credible. While they tried to make political capital at the expense of the SNP Government, their councillor colleagues in Highland and around the country, of a Labour, Lib Dem or Tory persuasion, were the real instigators.

I'm sure the SNP Government will not wish to jeopardise the excellent relations we have with local papers such as the Ross-shire Journal. Nor would I. Watch this space once the consultation is completed.

Friday 12 February 2010

Backing Won For SNP's Priorities

FINANCE has dominated the last 10 days of my work. The third budget of the minority SNP Government was passed last week despite a range of parties' demands and gains.

Nevertheless, while Tories, Greens and the independents voted with the SNP, the Lib Dems abstained and Labour voted against. That is despite real gains for the wishes of each party's negotiators.

The Post Office Diversification Fund, additional support for insulation schemes and the introduction of a boiler scrappage scheme, in particular, all had Labour support.

Yet Labour voted against all of the items in this budget that also included funding for student parents and more help for students.

The SNP's priorities won majority backing and include funding for the council tax freeze and also maintaining or increasing local NHS budgets. This year's SNP budget gives precedence to frontline services and economic recovery, including an increase in the health budget by 2.7 per cent to over £8.5 billion and an increase in the frontline education budget too.

Increased investment of £10 million in offshore and onshore renewables boosts Scotland's green growth industry. Key commitments in rural affairs and justice have been protected and accelerating EU cash for rural development will ensure continued investment in rural industries.

Funding for the council tax freeze puts an average £150 in householders' pockets. Funding that helps to lower prescription charges progresses and continuation of the Small Business Bonus Scheme sees the thresholds increased.

At this point in the political cycle, the SNP Government's key achievements show recorded crime at its lowest for 25 years and police numbers at their highest ever.

Record numbers of new socially-rented homes are being constructed, despite the recession. Council tax has been frozen for three years, with funding committed until 2012. Prescription charges are on their way out by 2011. Class sizes are at their lowest ever at around 23, if not at the desired 18 per classroom in primary years one to three.

The most comprehensive scheme of apprenticeship opportunities anywhere in the UK has been agreed, with incentives for employers to take on and retain apprentices which are vital for manufacturing and many other industries. An investment of a record £14bn over this parliament in Scottish infrastructure allows capital programmes to continue to save and create jobs, such as those in the massive works of Scottish Water and for the building of schools and hospitals.

*

I NEED to correct the misrepresentation in last week's debate which rejected the removal of statutory notices from local papers, such as the one you are reading.

The origin of the idea came from COSLA on behalf of all the local councils of Scotland, no matter which combination of parties form their ruling groups.

The Scottish Government was pressed by the councils to consult on this move in order to save councils another tranche of cash, and because there is a historic concordat between Scottish and local government this took place.

I find the posturing of opposition MSPs like our own Jamie Stone and David Stewart less than credible. While they tried to make political capital at the expense of the SNP Government, their councillor colleagues in Highland and around the country, of a Labour, Lib Dem or Tory persuasion, were the real instigators. I'm sure the SNP Government will not wish to jeopardise the excellent relations we have with local papers such as the Groat. Nor would I. Watch this space once the consultation is completed.

*

ON Tuesday the mountain came to Mohammed when the economy, energy and tourism committee sent representatives to London to meet the governor of the Bank of England.

He had steadfastly refused to send a representative to appear at our committee hearings in Holyrood into the future of Scottish financial services that are weathering the storm following the worldwide banking crisis of 2008.

Thanks to the excellent preparations of our committee clerks, the Scottish Parliament gains great kudos from an intelligent examination of what went wrong, what is strong and what is the way ahead for the financial hub that consists of Scotland's banks, insurance offices and asset managers who still steward funds successfully on a global scale.

Lunch with Mervyn King, the governor of the Bank of England, within the august portals of Threadneedle Street, was an education and a half. The governor's calm analysis of the financial sector's self-inflicted problems and his measured grasp of the need for an extended debate before governments reach conclusions about regulatory changes was impressive.

Though the Scottish Parliament has but limited powers at present over financial matters, it is clear that the watchdogs in London were often asking the wrong questions.

Thereafter we were able to attend hearings of the Future of Banking Commission organised by the consumers' association - Which? - before heading home on the train.

Bankers have had a bad press of late but let's reassure the workers in the High Street banks, like those in Wick, Thurso and elsewhere, that they do not deserve to be tarred with the brush of their top bosses' sins.

I'm sure our committee report will be a milestone on the route to Scottish financial enterprises regaining the respect so many of them still deserve, despite the spivs and speculators in some investment banks.

Thursday 11 February 2010

Everybody's Gone Surfin'

A campaign by the Scottish Surfing Federation is working toward gaining recognition from the International Surfing Association (ISA) to field a seperate Scottish team in their competitions, independent of team GB.

At present the International Surfing Association ISA only recognises team GB despite the fact they separately recognise teams from Hawaii and the USA.

A Scottish team makes sense, and it doesn't need to stop there...

I am happy to add my support to the campaign from the Scottish Surfing Federation to gain international acceptance and recognition for a separate Scottish team. Scottish shores are now a firm fixture on the world surfing map. It is developing a culture and feel all of its own. The next logical step is for a separate team to further highlight the distinctiveness of Scotland.

The prestigious Thurso Cold Water Classic sees the surfing world come to Caithness and judging by the trophy (a Highland broad sword) then Scotland is very much a theme in the event. So it would be good therefore to see surfers under the banner of Scotland competition.

I hope that the ISA will reconsider their decision to deny Scotland's own place in competitions and make the same distinction for Scotland as they do for Hawaii. Indeed I see no reason why that other Celtic country and surfing Mecca Cornwall shouldn't have their own team as well.