:00:24. > :00:27.A very warm welcome to the Scottish Parliament here at Holyrood. The
:00:27. > :00:32.MSPs have been the subject to a demonstration outside on the issue
:00:32. > :00:40.of blacklisting union members. That will be discussed later. The main
:00:40. > :00:46.subject of this programme is questions to the First Minister.
:00:46. > :00:50.The First Minister pays tribute to the soldiers killed in Afghanistan.
:00:50. > :00:57.They deserve our deepest gratitude for the jobs they do. Rightly in
:00:57. > :01:00.this chamber, there are different views on the wisdom of a military
:01:00. > :01:05.interventions but there is not and never has been any division
:01:05. > :01:09.whatsoever in any party of this chamber about the respect in which
:01:09. > :01:15.we hold our armed forces for the sacrifices they make. No words, of
:01:15. > :01:18.course, can bring comfort to the families of soldiers at times like
:01:18. > :01:27.this but the thoughts and sympathies of everyone in Scotland
:01:27. > :01:31.are with them. Can I find the First Minister for what he said. He
:01:31. > :01:36.speaks for all of us in our sympathies and condolences to
:01:36. > :01:40.families and good wishes to does. After the last 10 days, isn't it
:01:40. > :01:44.the case that the First Minister's plans for the currency and Scottish
:01:44. > :01:52.pensions who are exactly the same as his receipts for his half-a-
:01:52. > :01:56.million pound trip to the Ryder Cup, completely and utterly shredded.
:01:56. > :02:01.The Scottish Government have put forward the policy we believe in
:02:01. > :02:09.the best interests of Scotland and indeed the rest of the UK. I have
:02:09. > :02:12.to say that for the Labour Party to argue that it has any consistency
:02:12. > :02:21.or credibility in its current policy doesn't bear a single
:02:21. > :02:28.examination. I suppose on the question of currency, with so many
:02:28. > :02:33.supporters advising that the policy... Order!The decade by the
:02:34. > :02:41.Scottish Government is correct, I would say, on balance, I agree with
:02:41. > :02:45.Alistair Darling, who on 10th January for Newsnight Scotland said
:02:45. > :02:50.of course it would be desirable to have a currency union and of course
:02:50. > :02:55.it is logical. Therefore, I can say to this chamber, for the only time
:02:55. > :03:04.in this and other sections of first minister's questions, I agree on
:03:04. > :03:09.this subject with Alistair Darling. I'm not sure it was worth the First
:03:09. > :03:14.Minister hunting through his order to find that line! Talking about so
:03:14. > :03:19.-- talking about consistency in one sentence is entirely bizarre for
:03:19. > :03:24.the rest of us. However, the First Minister said this week that he
:03:24. > :03:29.will get his career and his House on a yes vote in the referendum.
:03:29. > :03:35.Isn't that wonderful? But who else shares his confidence? Hands up who
:03:35. > :03:45.else on the front bench will event -- will bet there Korea and their
:03:45. > :03:47.
:03:47. > :03:53.House? -- bet there career? And who behind the front bench? Obviously,
:03:53. > :03:58.no takers there. Let's try the backbenchers? Who are behind the
:03:58. > :04:05.front bench but -- with no career but a House would bet on it? Do you
:04:05. > :04:11.want to put your hands up? What about, then, hands up for those who
:04:11. > :04:18.would support a separate Scottish currency? Or maybe you only do that
:04:18. > :04:24.in private when the First Minister isn't watching. But, of course, the
:04:24. > :04:31.First Minister's macho acclamation of his willingness to risk all, to
:04:31. > :04:37.show how much he believes in himself is not the point. Is under
:04:37. > :04:43.the case that the First Minister's career and the First Minister's
:04:43. > :04:52.House don't matter? But what does matter is that he is taking a
:04:52. > :05:01.gamble with everyone's home and job with a currency plan he self-
:05:01. > :05:11.evidently hasn't sought through? Well, that worked as well for Duran
:05:11. > :05:12.
:05:12. > :05:18.and lament as it well worked for Ed Miliband. -- for Johann Lamont....
:05:18. > :05:23.Hand in hand, shoulder to shoulder for the Conservative Party. So,
:05:23. > :05:29.therefore, we ask ourselves, in this better to get the campaign,
:05:29. > :05:39.has Labour policy been totally subservient within the Conservative
:05:39. > :05:39.
:05:39. > :05:43.Party? I think that means yes! Because I have been living at the
:05:43. > :05:48.policy positions of the better to give the parties in the last
:05:48. > :05:53.general election. The only party which said never to the euro was
:05:53. > :05:57.the Conservative Party. The Labour Party in the 2010 manifesto said
:05:57. > :06:01.there would be no membership without a referendum. And the
:06:01. > :06:06.Liberal Democrats said, we believe it is in Britain's long-term
:06:06. > :06:11.interests to be part of the euro. So, I think it is fairly reasonable
:06:11. > :06:17.for Johann Lamont to head the Scottish Government policy in
:06:17. > :06:21.favour of a Stirling area and the substantial support that has. What
:06:21. > :06:26.I think is interesting is the suggestion that the better together
:06:26. > :06:32.campaign has a single policy. There are three Policies for every part
:06:32. > :06:36.and party of it and the Labour Party's danger in campaigner hand
:06:36. > :06:46.in hand with a Conservative Party, they are gambling their future with
:06:46. > :06:49.
:06:49. > :06:52.the Scottish people. Meanwhile, back in the real world... I think
:06:52. > :06:57.all of those people who perhaps thought he had a case will now
:06:57. > :07:03.realise he has no case whatsoever. Because, of course, the First
:07:03. > :07:06.Minister says we will keep the pound. The chair of the yes
:07:06. > :07:12.campaign says we should do a separate Scottish so currency and
:07:12. > :07:17.prepare to join the euro. To put it at its kindest, this is a complete
:07:17. > :07:22.shambles. The First Minister said that the last chancellor was
:07:22. > :07:25.responsible for the Royal Bank of Scotland mealy going under, the
:07:25. > :07:35.Bank the First Minister used to work for, but now claims the
:07:35. > :07:41.current transfer... I thought you knew he used to work for the RBS,
:07:41. > :07:44.but never mind. So, he says, the last chancellor was responsible for
:07:44. > :07:50.what happened to RBS but this Chancellor has no control over the
:07:50. > :07:54.Bank of England. You simply could not make it up. The people of
:07:54. > :08:03.Scotland deserve honesty, the people of Scotland to stir for
:08:03. > :08:07.honesty and clarity. This isn't about the First Minister's bravado
:08:07. > :08:14.and gambling. This isn't about a smart soundbite for him. This is
:08:14. > :08:22.about people's jobs, their homes, their mortgages, their pensions and
:08:22. > :08:28.their savings. So, for the sake, well, it's maybe same old same old
:08:28. > :08:34.to the back benches, but it is about jobs, people's homes,
:08:34. > :08:39.people's mortgages, people's pensions and savings. That is not
:08:39. > :08:44.same old. It is about the real world. So, for the sake of clarity,
:08:44. > :08:52.will be First Minister simply now rule out a separate Scottish
:08:52. > :08:57.currency? I've Got News For Johann Lamont. What brought the Royal Bank
:08:57. > :09:02.of Scotland and many other financial institutions into trouble
:09:02. > :09:07.was not the Bank of England's control of interest rates, but
:09:07. > :09:17.partly the Financial Services Authority' frack -- lack of
:09:17. > :09:18.
:09:18. > :09:23.regulation of the banking system. Order! And which mastermind
:09:23. > :09:28.Chancellor of Exchequer was contract -- in control of the FSA?
:09:28. > :09:33.The same person now in control of the no campaign in Scotland,
:09:33. > :09:37.Alistair Darling. Or perhaps we should have a glance at the reports
:09:37. > :09:44.into the collapse of the banking system, the near collapse and see
:09:44. > :09:48.the role of Gordon Brown, of Ed Balls, of Tony Blair, and the
:09:48. > :09:52.responsibility they were allocated in terms of their attitude and lack
:09:52. > :09:57.of control and vigilance over the financial system. We have put
:09:58. > :10:04.forward the Government's viewpoints, supported by more Nobel Laureate's
:10:04. > :10:08.than you can shake a stick at, supported by mirthful -- former
:10:08. > :10:16.members of the Monetary Policy Committee of the Bank of England in
:10:16. > :10:21.the interests of Scotland and in the interests of the UK to share
:10:21. > :10:25.stolen. Can I reports another expert who has also said that for
:10:25. > :10:30.England and the rest of the UK, they have been major advantages in
:10:30. > :10:34.having Scott and remain as part of a continuing monetary union and a
:10:34. > :10:38.monetary stability pact. That is serious analysis. That is putting
:10:38. > :10:42.forward a few point in the interest of Scotland and the interests of
:10:42. > :10:46.the rest of the United Kingdom would stop may be that is why when
:10:46. > :10:50.the current Chancellor of Exchequer and the chief secretary to the
:10:50. > :10:55.Treasury came up to Scotland last week, at no point in all of the
:10:55. > :10:59.interviews, despite the bluff and bluster did they say no. Because
:10:59. > :11:08.they know that the policy being put forward is in the interests of
:11:08. > :11:14.Scotland and the rest of the United Kingdom. I think there were more
:11:14. > :11:18.squirrels then you could shake a stick at! You would think the First
:11:18. > :11:27.Minister had never argued for lighter touch regulation in the
:11:27. > :11:32.banking system and she had never written that letter to Fred could
:11:32. > :11:36.win saying, go on, yourself! That is brilliant! Just before the Royal
:11:36. > :11:40.Bank of Scotland departed. But however, one thing we did notice
:11:40. > :11:44.from that response, he didn't answer the question. The fact of
:11:44. > :11:51.the matter is, the First Minister is trying to break up Britain but
:11:51. > :11:55.the only thing breaking up by his arguments and his campaign. The
:11:55. > :11:59.currency union between the Czech Republic and Slovakia lasted just
:11:59. > :12:07.six weeks. If only the First Minister could hold on to a policy
:12:07. > :12:13.position for that long. And of course, seriously, Scotland is on a
:12:13. > :12:19.pause while he puts his fantasy of Ms Ford. There is only one thing
:12:19. > :12:23.consistent here. You cannot trust the first Minster on anything. On
:12:23. > :12:33.apprenticeships, he took 10,000 people already in jobs and called
:12:33. > :12:34.
:12:34. > :12:38.them apprentices. We all know it! Order! We all know it. On
:12:38. > :12:43.apprenticeships, he took 10,000 people on jobs and called them
:12:43. > :12:48.apprenticeships. He said he abolished waiting-lists when he had
:12:48. > :12:54.failed them. And then, he told us he was increasing college spending
:12:54. > :12:59.when he is slashing it. Isn't it the most accurate answer ever given
:12:59. > :13:08.to any parliament anywhere that we cannot trust a word the First
:13:08. > :13:12.Minister says? Well, I was fascinated by the argument that the
:13:12. > :13:18.SNP doesn't have been us consistency on possible stop if I
:13:18. > :13:24.remember correctly, Johann Lamont's latest policy on devolution for
:13:24. > :13:30.Scotland didn't last six hours at the Labour Party conference. Not
:13:30. > :13:35.for the first time, can I just point out the interest -- the
:13:35. > :13:40.increase in apprenticeships by over 60% and the decline in unemployment
:13:40. > :13:44.is something we should claim as a substantial success. Her argument
:13:45. > :13:48.that this took people who were already in work is nullified by the
:13:48. > :13:52.fact that there is a lower percentage of newer apprenticeships
:13:52. > :13:55.in work than there was when the Labour Party were in power with
:13:55. > :13:59.that reduced number of apprenticeships. And given this is
:13:59. > :14:04.the third time I am explaining this, perhaps Johann Lamont won't
:14:04. > :14:08.introduce that question again. Because it clearly is without any
:14:08. > :14:13.foundation whatsoever. The success for having apprenticeships is a
:14:13. > :14:19.good thing for Scothern. The success we are having with getting
:14:19. > :14:22.young people into work is a good thing for Scotland. Johann Lamont
:14:22. > :14:28.is doing no different from her three predecessors who did exactly
:14:28. > :14:33.the same thing, it is no different from Labour's negativity in the
:14:33. > :14:37.last election and I see Ian Gray sitting there on the back benches
:14:37. > :14:41.when they rubbished and diminished anything about Scotland's potential.
:14:41. > :14:46.It is exactly the attitude they have to the question of currency.
:14:46. > :14:49.This is the country with a stronger budgetary position. This is the
:14:49. > :14:53.country with a surplus in the balance but trade. The idea that we
:14:53. > :14:56.are going to be holding to a country with a first -- worst
:14:56. > :15:00.fiscal position and a deficit in the balance of trade is simply
:15:00. > :15:06.quite incredible. Her body negativity and the running Scotland
:15:07. > :15:11.down is exactly the reason why exactly two years ago, the people
:15:11. > :15:21.of Scotland passed a verdict on the Labour Party which was why they are
:15:21. > :15:38.
:15:38. > :15:44.sitting there in such diminished would like to recognise the service
:15:44. > :15:51.of Corporal William Savage and private Samuel Flint. And to private
:15:51. > :15:55.Robert Hetherington of the 51st Highland Fusiliers. He was a
:15:55. > :16:01.territorial Army member. I would like to associate my party and
:16:01. > :16:06.myself with the expressions of gratitude and condolence sent to the
:16:06. > :16:09.families and those injured in that attack. I would like to ask the
:16:10. > :16:13.first Minister when he will next meet their Secretary of State for
:16:13. > :16:17.Scotland. There are no plans in the near
:16:18. > :16:26.future. Thank you for your kind words.
:16:26. > :16:29.We have heard the first Minister Seat that he is correct in that
:16:29. > :16:35.three former bank of England expects and his own former expel advisor
:16:35. > :16:38.will all wrong. Let us ask the first Minister is the Institute for
:16:38. > :16:47.chartered accountants also wrong because it published a report in the
:16:47. > :16:50.last week saying that it would be a legal under EU law for pension
:16:50. > :16:52.schemes being a separate Scotland and the rest of the UK not to be
:16:52. > :17:01.fully funded. The first Minister 's response is to say we will not
:17:01. > :17:04.change the law, we will wrap it up. Can I ask him, how many of the 27
:17:04. > :17:06.individual member states that he needs to be as his government had
:17:06. > :17:11.discussions with on this issue to protect the pensions of the people
:17:11. > :17:14.of Scotland? We are not seeking an opt out from
:17:14. > :17:20.the EU regulations which are designed to facilitate cross-border
:17:20. > :17:24.pension schemes. If Ruth Davidson had read the report correctly she
:17:24. > :17:28.would see that they have not only raised the issue but they have put
:17:29. > :17:34.forward solutions to the issue, none which involve opting out of the EU
:17:34. > :17:39.pension scheme. In terms of discussions with the UK government,
:17:40. > :17:46.we are willing to have them. Not only on this spot on a range of
:17:46. > :17:50.other issues. If Ruth Davidson would use that extra money influence that
:17:50. > :17:56.he has that part colleagues in London to make them agree with the
:17:56. > :17:59.Foreign Affairs Select Committee then engage with constructive
:17:59. > :18:07.conversation with the Scottish government that would be a good
:18:07. > :18:10.idea. Come on, strike out for Conservatives Scottish independence!
:18:10. > :18:15.The report does raise a number of questions, none of which have been
:18:15. > :18:19.answered by your finance Paul Osman that smacks Altman on Sunday. The
:18:19. > :18:26.one I liked the most was with their be a Scottish protection fund
:18:26. > :18:29.because the UK Pension Protection Fund pays and manages no less and
:18:29. > :18:34.16,000 Scots whose schemes have gone under. Here is another question for
:18:34. > :18:39.the first Minister. This is from Ronald Berry, a past president of
:18:39. > :18:44.the Institute of faculty actually is. He knows a thing or two about
:18:44. > :18:50.pensions. He said it can take 15 years to prove the pension system
:18:50. > :18:56.works and by then it is too late to do anything if it does not. The odds
:18:56. > :18:59.favour to stay within a UK system, why should we gamble against it? The
:18:59. > :19:03.first Minister admitted that he is a betting man. On currency and
:19:03. > :19:10.pensions, is he not gambling with the financial future of every man,
:19:10. > :19:14.woman and child of Scotland? I was suggesting that the Tory and
:19:14. > :19:19.Labour parties might have different policies. They are now using exactly
:19:19. > :19:22.the same lines and questions. It was unfortunate for Ruth Davidson that
:19:22. > :19:30.Johann Lamont has the first question but it does not get any better the
:19:30. > :19:34.second time around that it was suggested the first time! The
:19:34. > :19:39.position of an independent Scotland with regard to pensions will be
:19:39. > :19:44.stronger than that of the UK one that is because it takes up 14.4% of
:19:44. > :19:50.Scotland's wealth compared to 15.9% of the UK. In terms of social
:19:50. > :19:56.protection including pensions and tax receipts it takes up 30% of tax
:19:56. > :20:01.receipts, the figure for the UK is 42%. As regards the balance of
:20:01. > :20:06.trade, the balance of payments, oil and gas is an asset, not a
:20:06. > :20:10.liability. The great industries of Scotland are purchasing Sterling.
:20:10. > :20:16.The fact that we have less of liability in terms of social
:20:16. > :20:19.protection makes it more affordable, not less affordable and given what
:20:19. > :20:24.the Institute of Fiscal Studies has said about the Tory Party 's pension
:20:24. > :20:29.plans and publishing the vast majority of pensioners, making them
:20:29. > :20:34.worse off, I think the Conservative Party are the last people on F to
:20:34. > :20:41.show any concern for pensioners across the country. Question number
:20:41. > :20:44.three, Willie Rennie. Can I do recognise those who have
:20:44. > :20:49.lost their lives recognising -- serving their country in
:20:49. > :20:53.Afghanistan. I would like to ask the first Minister what issues will be
:20:53. > :21:00.discussed at the next meeting of the Cabinet.
:21:00. > :21:09.Thank you, for your kind words. The Cabinet will discuss issues of
:21:09. > :21:14.importance to the people of Scotland.
:21:14. > :21:21.Several MPs are rejecting your plans to join a British currency union.
:21:21. > :21:25.Margaret Thatcher once said, "you turn if you want to, the lady is not
:21:25. > :21:30.for turning." Now that you have got in on your British currency plan,
:21:30. > :21:37.are you trying to transform into the Margaret Thatcher of British
:21:37. > :21:41.politics? No, we will continue to put forward the best interest of the
:21:41. > :21:46.Scottish people which has worked successfully for the SNP over the
:21:46. > :21:51.last few years and because it is recognised that that is what we do,
:21:51. > :21:57.we will continue to work hard for the people of Scotland.
:21:57. > :22:02.interesting lack of answer. A founding member of the Bank of
:22:02. > :22:05.England Monetary Policy Committee gave you a warning this morning.
:22:05. > :22:12.That is the committee he is relying on this morning for a British
:22:12. > :22:16.currency union. Last week, Professor John Kay rejected his plans as well.
:22:16. > :22:22.He is one of the first Minister 's favourite advisors, and he cannot
:22:23. > :22:28.dismiss all of his friends in the Yes camp who are telling him now.
:22:28. > :22:33.JoAnn said if the first Minister wanted an option of the Scottish
:22:34. > :22:41.currency he did need to wobble now. He is under pressure from friend and
:22:41. > :22:48.foe to wobble, as he wobbling? I have lost track of other Willie
:22:48. > :22:52.Rennie wants me to U-turn or what? Any wobbling or U-turning or cart
:22:52. > :22:56.wheels would be as do nothing as to what the Lib Dems have achieved in
:22:56. > :23:01.terms of performance of politics will stop in 2010 Willie Rennie
:23:02. > :23:06.stood on a manifesto commitment. I note he lost his election but he
:23:06. > :23:12.still stood on the manifesto saying that it is in Britain 's long-term
:23:12. > :23:18.interest to be part of the euro. It was on page 67 of his manifesto. Has
:23:18. > :23:21.he been wobbling or U-turning or performing cartwheels over these
:23:21. > :23:27.last three years, or is the biggest wobble that concerns people in
:23:27. > :23:32.Scotland about Willie Rennie is his role and his party's role in putting
:23:32. > :23:38.the Conservative Party into power in Westminster? Question number four,
:23:38. > :23:43.Sandra late. I would like to ask the first
:23:43. > :23:47.Minister what they can tell us about the proceeds of crime.
:23:47. > :23:54.That act made a great impact. Since the legislation was introduced ten
:23:54. > :23:59.years ago, over �80 million of assets has been seized. Thanks to
:23:59. > :24:06.this government, our communities are benefiting from the seizure of these
:24:06. > :24:11.assets. A programme is investing funds for young people and their
:24:11. > :24:15.communities the length and breadth of the country.
:24:15. > :24:20.I thank the first Minister for his reply. Can he confirmed that with
:24:20. > :24:28.the investment of �80 million and future recovery is, can they make
:24:28. > :24:34.sure that more investment will be made across Scotland to build on the
:24:34. > :24:37.impact of the �50 million invested in 2007? Yes, I can. Sandra is
:24:37. > :24:44.correct to point to the �50 million. That benefits over 6000 young
:24:44. > :24:49.people. It has generated 11,000 volunteers that are putting back
:24:49. > :24:53.into their communities. It deserves widespread support and touches and
:24:53. > :24:57.helps constituencies and areas of every single member in this chamber.
:24:57. > :25:03.I should point out to the chamber, in 2011, the amendments two schedule
:25:03. > :25:06.for which added criminal lifestyle offences to the legislation, the
:25:07. > :25:11.burden of proof and that change which is now for the accused to
:25:11. > :25:21.prove that the assets were genuinely obtained, were now illegally
:25:21. > :25:23.
:25:23. > :25:27.was not very clear... As regards the cashback for communities campaign,
:25:27. > :25:33.we were aware of that important letter of change which shifted the
:25:33. > :25:38.balance of proof and added to the success of the proceeds.
:25:38. > :25:44.The first Minister might remember it was ten years ago since I praised
:25:44. > :25:48.him and other MPs at Westminster on the need for this legislation. The
:25:48. > :25:52.first Minister will also know that the annual assessments of the
:25:52. > :25:56.business of serious and organised crime in his own Scottish strategic
:25:56. > :26:00.assessment identified a turnover of more than �1 billion per year for
:26:01. > :26:07.organised crime. In that light, as he satisfied that �8 million per
:26:07. > :26:10.year average asset recovery is sufficient or will he commit to a
:26:11. > :26:13.further review of the operation of the act to deliver improvements in
:26:14. > :26:20.the results for future years and greatly increase the asset recovery
:26:20. > :26:25.results? I should point out to Graeme Pearson
:26:25. > :26:28.when the measure was introduced ten years ago, and I pointed out that
:26:28. > :26:33.the cashback for communities, which I think is a really important aspect
:26:33. > :26:37.of this in terms of mobilising popular support that was injured in
:26:37. > :26:42.2007... In terms of the growth of proceeds of crime, and that first
:26:42. > :26:46.year it was �2 million. This last year, it was �12 million. It has
:26:47. > :26:51.reached a peak of �25 million, so there has been a constant growth
:26:52. > :26:56.over that period in terms of the proceeds of crime act. In terms of
:26:56. > :27:01.two things, one is the constant view of this legislation to make it more
:27:01. > :27:06.effective. I made a point a few seconds ago about the changes made
:27:06. > :27:09.in 2007 as being absolutely crucial in changing that burden of proof to
:27:09. > :27:15.allow more criminal assets to be properly seized under the law. I
:27:15. > :27:19.also believe that the changes that have been made and we are making to
:27:20. > :27:25.the police service in Scotland, operating with the crown of this
:27:25. > :27:27.have a particular focus on the proceeds of crime, that will assist
:27:27. > :27:33.in making this a highly successful act and scheme even more successful
:27:33. > :27:37.in the future. I would like to ask the first
:27:37. > :27:40.Minister what discussions the Scottish government has had the
:27:40. > :27:44.European mission in terms of an opt out for pension regulations should
:27:44. > :27:50.Scotland become independent. The Scottish government would not be
:27:50. > :27:56.seeking an opt out. One is not required or necessary.
:27:56. > :28:02.Thank you. Can I ask the first Minister in that event, what are the
:28:02. > :28:05.Scottish Government splines to meet the much more stringent EU solvency
:28:05. > :28:10.requirements that would apply to the thousands of Scots in pension
:28:10. > :28:15.schemes that operate across the UK. Specifically, can I ask him if he
:28:15. > :28:21.agrees with the comments of his financial Secretary on Sunday that
:28:21. > :28:25.Scotland would receive longer timescales?
:28:26. > :28:33.We are just coming to the close of questions to the first Minister.
:28:33. > :28:37.They were talking about currency, pensions and a little bit about the