Scottish Government

Rt Hon Alex Salmond MSP

First Minister

Statement on Programme for Government

Wednesday September 8, 2010

1. Introduction

· Presiding Officer, since we last met we have all been saddened by the death of Edwin Morgan, our National Makar.

· We in this Chamber will remember in particular his poem for the opening of this Scottish Parliament building, which as you rightly said in your tribute to him, Presiding Officer, "is as poignant and thought-provoking now as it was six years ago".

· In that poem he wrote: " We the people…give you our consent to govern, don't pocket it and ride way. We give you our deepest, dearest wish to govern well, don't say we have no mandate to be so bold."

· What I wish to do this afternoon, Presiding Officer, is to set out how during this session of the Scottish Parliament, the Scottish Government will act to discharge our mandate from the people to govern well.

· Eddie Morgan's advice would be wise at any time, but it is all the more true at a time when the people, face the worst outlook for public spending since the aftermath of the Second World War.

· Everything we do in this session of Parliament and every legislative programme for many years to come will be set against that context. And this statement will start and end with how we face that issue.

2. The Economic Climate

· The new UK Government outlined a budget in June which, if implemented, would slash at the very fabric of the public and social provision.

· Of the forecast cuts we now face, two thirds were planned by the previous UK Government, and a further one third have been added by the current one.

· At present this Parliament lacks the powers to control the level of public expenditure. Except at the margins we exist within a fixed Budget.

· The other parties suggest that they have a solution under the Calman proposals.

· But far from being a solution Calman - at least as it stands - would actually make things much worse. This is no academic argument.

· Had the Calman income tax proposals been introduced for the start of the last spending review, the fall in income tax revenue, because of the recession, would have resulted in a Scottish budget for 2009/10 almost £900 million lower than under the existing Barnett Formula mechanism with no capacity to borrow to meet revenue deficits.

· And this is before the effects of the Coalition's plans to increase personal allowances, paid for by rising national insurance contributions, lowering the revenues allocated to Scotland by a further £250 million for every £1,000 increase in allowances.

· This is an arithmetical point as well as a political one but the politics require an answer.

· The people, when they voted for this Parliament, voted for a legislature which would be bold, and which would act to protect their values.

· They expect us both to act now, where we can, as well as to state ambition for the future.

· And so let me first set out the legislation that we will bring forward, to this Parliament and to the people, to use our existing powers well, before returning to the powers we need to enable us all to move Scotland forward.

· I have never judged the importance of a legislative programme by the number of Bills. However others in this Chamber have tended to do In that respect we will be introducing ten Bills to the Parliament - four more I note than at the equivalent period in the last Parliament!

3. The Budget Bill

· The Budget Bill will be at the heart of our legislative programme and our overall programme for government.

· We shall submit a Budget Bill within four weeks of the Comprehensive Spending Review.

· I know that there are calls for some kind of back-of-the-envelope budget sooner: I think this is wrong headed and more to do with political positioning than economic logic.

· Like it or not - and I don't - our budgets are determined by spending patterns in Westminster.

· Those who think that the Coalition Government has a clear sense of where it is going to cut, and what it is going to allocate to each area, have a touching faith in the governance of Whitehall.

· From what I can see, everything is under scrutiny, which may result in yet more surprising decisions: to base our budgets on a guess about how savage George Osborne and David Cameron may be, strikes me as foolish - crystal ball budgeting when in six weeks time we will be able to see the books.

· Of course some people say that we should be able to guess to the nearest £200 million. In fact the possible variance is much, muchgreater than that.

· However let us say that it was £200 million. That would be the difference between continuing to freeze the Council tax or increasing it by a full 10 per cent.

· Let me take another topical example. As we know yesterday police numbers in Scotland reached a historic high and crime rates a 32 year low.

· However police boards across Scotland are engaged in an exercise of working through the implications of future Budget cuts.

· To do that they are using the widely touted forecast of average reductions in spending in a non protected UK Government Department. This is a very useful exercise in setting out the stark implications of cuts on this scale. But it is not a real figure.

· The real figure is the 17,424 officers working right now.

· The real Budget will come when we see the books in six weeks time and then when this Parliament then decides how it can best protect front line services.

· When we have the facts, then we can make the decisions, based on our values.

· But if there is no advantage in setting down a budget only to rewrite it in a few weeks' time, there is every advantage in applying expert, independent analysis to the options that we have, particularly over the medium term.

· That is why we established the Independent Budget Review under Crawford Beveridge, to consider these options carefully.

· That was the beginning of a process rather than an end because, following publication of their report, we are now as promised consulting with the people and with partners and stakeholders.

· And while we are not at the end of the process, let me say this: our priorities are economic recovery, protecting front line services, and developing a low carbon Scotland - jobs now and jobs for the future.

· The other parties in this chamber will have the opportunity to outline their priorities and their policies in a full day's debate tomorrow and we look forward to the detail of these contributions.

4. Wealthier and Fairer

· The Scottish Government is committed to a Scotland that is wealthier and fairer.

· We have kept our aim steady on this Government's over-arching purpose, to focus government and public services on creating a more successful country, with opportunities for all of Scotland to flourish, through increasing sustainable economic growth.

· And that will be a hallmark of our Programme of Government.

· So, for example, over 2010 - 11, we are providing over 40,000 training places, including 20,000 Modern Apprenticeship starts, and 5,000 flexible training opportunities specifically to meet the needs of business.

· Through Scottish Enterprise and Scottish Development International, we will help Scottish businesses to grow at home and abroad and build on the success in attracting investment projects involving the planned creation or safeguarding of 16,000 jobs in Scotland, including almost 6,500 new high value jobs .

· Recent announcements from Hewlett Packard in Erskine, Barclays in Glasgow and Virgin in Edinburgh are testimony to the success of that work.

· We will improve Scotland's transport links, including by:

- completing the M80 Stepps to Haggs upgrade and the M74;

- finishing the Airdrie to Bathgate rail link; and

- awarding the Principal Contract for the Forth Replacement Crossing.

· We will ensure the smooth running of local government elections, so that every vote counts and is counted, fairly and accurately, through an Electoral Administration Bill.

· This continues the process of improving independent electoral administration, following the difficulties faced in the 2007 joint local government and Scottish Parliamentary elections.

· Long Leases BillWe will reform the law in relation to property and housing through a and a Private Rented Housing Bill.

· The Long Leases Bill will convert ultra-long leases into ownership, matched by appropriate compensation payable by tenants to landlords.

· The Private Rented Housing Bill will tackle unscrupulous rogue landlords who operate outwith the law and make life a misery for tenants and their neighbours and tarnish the reputation of the many good private landlords in Scotland.

· These Bills continue the reforms since devolution to create a comprehensive modern framework for Scottish housing and property law.

· And other work to make Scotland a fairer country will include:

- publishing our own Child Poverty Strategy;

- continuing to support the Armed Forces and veterans' community; and

- engaging actively with the UK Government on its proposals for welfare reform to argue for the development of approaches that protect the poor and better fit with Scottish circumstances.

5. Smarter

· This summer saw record levels of attainment in school leaving examinations.

· During the coming year we will work towards a Scotland that is smarter still by:

- implementing the Curriculum for Excellence;

- introducing regulations to establish a maximum Primary 1 class size of 25; and

- funding the Scottish Qualifications Agency to develop over 200 new qualifications, ensuring that young people have the knowledge and skills they need to compete in the 21 ^st century.

6. Safer

· Our new Public Records Billwill update existing legislation and create a modern framework to improve accountability and transparency and strengthen governance.

· But it will also contribute to a Scotland that is safer by implementing a key recommendation of the review of historic abuse of children, which found that poor record keeping by public authorities prevented former residents of care from understanding what had happened to them.

· Three other Bills will also make Scotland safer:

- The Double Jeopardy Bill will reform the law to allow an acquitted person to be prosecuted again in certain clearly and carefully defined circumstances . This is an important change but its time has come.

-The Forced Marriage Protection Bill will provide civil remedies for those at risk of forced marriages and victims of forced marriage .

- And the Reservoir Safety Bill will enhance the safety of people, property and infrastructure by providing a proportionate, risk-based approach to reservoir safety in Scotland.

· And we will continue to drive forward the kind of reforms to our Justice system that have seen recorded crimes fall by 10% since last year to their lowest level for 32 years by:

- using the new powers in the Criminal Justice and Licensing Act 2010 to tackle serious and organised crime; and

- creating a Community Payback Order, as statistics published only a week ago show that after 2 years nearly 60% of those sentenced to community service have a clean record while nearly 75% of those sentenced to less than 6 months in prison, reoffend.

7. Healthier

· On Health we start from a position where thanks to the commitment of staff and improved procedures 99.8 per cent of patients are now waiting less than 9 weeks for inpatient and day care treatment.

· As a result public confidence in that National Health Service in Scotland is at an all time high, with a majority believing standards are stable or rising.

· How we protect that position from budgetary pressure will be a defining issue in the debates to come. But we all know that medium term progress depends on prevention and early intervention to make Scotland better.

· We will progress the Alcohol Bill, whose provisions including the introduction of minimum unit pricing would make Scotland safer by reducing alcohol related crime, disorder, and public nuisance and the crowds at A and E Departments every weekend.

· It will also make Scotland healthier over the long term by tackling our appalling legacy of chronic alcohol related illnesses.

· And we will match that legislative action by helping local Alcohol and Drug Partnerships to deliver substantial improvements in prevention and treatment services.

· The Health (Certification of Death) Bill will modernise death certification in Scotland - removing current inconsistencies between how cremations and burials are scrutinised and streamlining procedures.

8. Greener

· Finally, in terms of our existing powers, let me outline our plans for a Scotland that is greener itself and contributes to a greener, fairer world.

· A generation ago green issues were a minority concern. The reason that this Parliament has legislative competence over climate change is probably that no-one thought in 1997 that it was important enough to include it in the list of reserved functions.

· Times have changed and the Parliament has used its competence courageously and wisely.

· And also be in no doubt, our environment is our economy.

· Our natural resources will determine our future success.

· Perhaps the greatest Secretary of State for Scotland was Tom Johnston.

· His towering achievement was championing the Hydro Scheme, first by passing the Hydro-Electric Development (Scotland) Act 1943 and then by implementing that visionary legislation as Chairman of the North of Scotland Hydro-Electric Board from 1946 to 1959.

· The Hydro delivered on the promise to bring the power of the glens to everyone at equal cost, to replace paraffin lamps with electric bulbs, and so modernise our nation that it could compete in the post-war economy.

· In trapping the power of water behind dams, running it through tunnels and pipes, Scotland created arguably the most successful hydro scheme in the world.

· It generates renewable energy by capitalising on our greatest natural asset - water.

· Now there has been a lot of discussion and much debate about Scottish Water.

· Some people want to privatise our water. Others see a mutual solution as best.

· We will spell out our plans in a Water Bill.

· The overwhelming majority of the Scottish people want to keep Scottish Water in public hands.

· I am with the people on this - not out of sentiment but of logic.

· Is it really the smart thing to sell such a prize just as the world wakens up to the true value of plentiful and clean water?

· It would be like selling Saudi Arabia's oil reserves on the eve of the invention of the combustion engine,

· That's why treating Scottish Water merely as a utility, to be bought or sold or mutualised, is to miss the point and the opportunity.

· It manages on our behalf a major resource which is rapidly becoming a commodity of great worth.

· It is therefore this Government's intention not to sell or mutualise Scottish Water, but to keep it in public hands.

· Let me first state what Scottish Water has already achieved.

· It has transformed a field of public service, long suffering from a lack of funds, into a significant success story.

· Where there was inefficiency and waste, we now have a smoothly functioning asset.

· Its rate of improvement has been beyond anything achieved by privatised water companies, and gives us average household charges lower than in England and Wales.

· I want to build on that success.

· Instead of handing over the profits and assets - including 80,000 acres of land - to private ownership, they can help us to energise the Scottish economy.

· Scottish Water will evolve from a successful utility into a dynamic water agency -deploying its wisdom, knowledge and secure funding to the betterment of our environment and economy.

· Currently, there is no such agency anywhere in the world.

· I am encouraged by Scottish Water's own desire to play this role.

· They have identified potential for new economic activity in other business areas of some hundreds of millions in the medium term.

· If we give Scottish Water room to grow, then we have the makings of a great Scottish company, in public ownership.

· Scotland will become the world's first hydro-economy - wisely exploiting our water to help drive our economy.

· Much as vested interests resisted the Hydro dams, so there will be those who resist a new vision for Scottish Water.

· But Scottish Water, can help transform Scotland's prospects today, just as Tom Johnston did 60 years ago.

· As Scottish Water expands its activities it will generate the additional revenue to become financially neutral to the Scottish Government's books.

· Currently Scottish water is the largest consumer of electrical power in Scotland. We intend to give it the power to instead become one of the largest generators of renewable electricity on its land.

· We shall charge Scottish Water with supporting our bid to host the 2015 World Water Forum, bringing up to 30,000 delegates to Glasgow, including Heads of State and Government.

· We shall charge Scottish Water with establishing a water centre for excellence, modelled on the Stockholm International Water Institute, to foster commercial and humanitarian innovation.

· And we will support Scottish Water's exemplary record in humanitarian assistance, reinforcing existing bonds with the charity WaterAid, which have already brought emergency relief to Pakistan.

· This is not a revolution, but an evolution.

· We are entrusting the management to build on their proven track record with a gradual expansion of functions, not to dilute their existing success, but to seize the growth opportunity in exploitation of the key commodity of the 21 ^st century and beyond.

· So we will bring forward legislation to enable Scottish Water to play this role.

· Further, we expect water charges to continue to remain stable in real terms - the people's asset will move to becoming self-financing.

· I believe that we can lead the world in the management of a key resource, for the benefit of our environment and economy, and for the benefit of the citizens of this world who desperately need clean water just to survive.

· We can combine the outstanding qualities of the Scottish character - compassion and innovation - to put ourselves at the vanguard of the new economy.

· Our plan is not short term, rather it is a legacy for our children and beyond.

· Lets use our greatest natural asset to their long term benefit.

9. Community Benefit

· And we are blessed not just with an abundance of water, but with a wide abundance of natural assets and resources: I believe that these belong, fundamentally, to the people of this land.

· We stand at the threshold of another energy revolution, in renewables, and we must ensure that the mistakes of the past, when the takings from North Sea Oil and Gas were siphoned off elsewhere are not repeated.

· So we will consult on legislation for the communities of Scotland to benefit from the exploitation of their natural resources.

· Only Shetland was wise enough to benefit from the oil boom, and it currently sits on a oil fund not far off £200 million.

· Norway created a fund, and it is closer to £300 billion billion.

· It will be many years before revenues from offshore renewables reach that scale. However a start should be made.

·The only public body which is currently accrues a direct benefit from the offshore development is the Crown Estate Commissioners and we have worked well with the Commissioners. But the revenues go direct to Treasury and that cannot be right.

· Because the communities of Scotland - the Scottish people - must secure an endowment from our own natural resources as well as having a say in how they are developed.

10."Economic Decision Making by the People, for the People"

· As we mourned Edwin Morgan this summer, we also mourned Jimmy Reid.

· His passing was felt by many across this land.

· In his famous address as Rector of Glasgow University in 1972 he said that: " Government by the people, for the people, becomes meaningless unless it includes major economic decision making by the people, for the people".

· That was true then, and it is true now.

· The lesson of Jimmy's life was not just that ships are important, but that people are important.

· And that to protect them you have to stand up, you have to fight, and above all, you have to control the economic decisions.

11. Economic Power

· I said at the outset of this statement that I would return to the issue of public sector cuts and how we face them not just in the coming year but for the next generation.

· That is the issue which will transcend politics in Scotland - is this Parliament to become a message boy for cuts determined elsewhere or can we gain the economic powers to change our circumstances?

· Some people have evinced surprise at our decision not to present a Referendum Bill to this Parliament. Indeed, so disappointed do they seem, that you might have the impression that they were gagging to vote for it instead of ganging up to stop it!

· So we will take our case for greater powers to the people.

· Now that we face an economic hurricane, never was the case for independence and financial responsibility more obvious and true.

· For make no mistake: devolution, as we knew it, is over.

· When the money from London, or rather delivered via London, is being cut, then the game has changed and changed totally.

· The decision, now, is do we stick with the status quo, with budgets reducing year on year.

· Or do we take responsibility and use that responsibility to create a new, dynamic Scottish economy.

· What Scotland truly needs is not a funding formula whether Barnett or Calman.

· Scotland needs control of its own resources and the ability to grow revenue rather than just cut expenditure. We need control over both sides of the Scottish balance sheet.

· I don't doubt that everyone in this Chamber wants the best for Scotland.

· And I believe that we - all of us - have achieved a lot for Scotland.

· Scotland has come a long way.

· We can act independently of Whitehall and Westminster and set our own agenda.

· And that agenda must not mean undoing much of the good work of the first ten years.

· And if the arithmetic of this Chamber denies the will of the people, then we shall take our case to the country.

· The first age of devolution is over.

· There is now a clear choice facing the nation.

· The unionist cry of "do nothing".

· And the nationalist call to do something positive.

· And that is a choice for the people - and them alone.

12. Conclusion

· Because, Presiding Officer, this Government, this Parliament, is about delivering for the people.

· I began by quoting Edwin Morgan so let me finish the same way.

· He wrote of this Parliament:

"What do the people want of the place?

"A nest of fearties is what they do not want.

"A symposium of procrastinators is what they do not want.

"A phalanx of forelock-tuggers is what they do not want.

"And perhaps above all the droopy mantra of 'it wizny me' is what they do not want."

· We stand for giving the the People the chance to say what they do want.

· The chance to endow this Parliament with such powers that that there is no question of saying "it wizny me" because the responsibility lies clearly with the Scottish Government, the Scottish Parliament and the Scottish people.

· And in that spirit, Presiding Officer, I commend our Programme of Government to this Parliament and to the people.