13/01/2016 Politics Scotland

Good afternoon and welcome to Politics Scotland. Coming up... The

latest figures show the economy grew a little in the third quarter of

last year that it is lagging the rest of the UK. Moray council is

proposing to bring in a council tax freeze. Could this be the end of a

flagship government policy. Here at Westminster the financial theme

dominating with an SNP inspired debate on the economy. Should we be

worried about bumps on the economic road ahead? Now, the economy in

Scotland grew slightly between July and temper last year. The growth

rate was 0.1%, across the years Scottish output increased by 1.7%,

Scotland lagging behind the UK as a whole. Here's David Henderson. All

tied up with nowhere to go. On the Cromarty Firth these rigs stand idle

because of the falling price of North Sea oil. It's meant thousands

of jobs lost across the industry and a hammer blow to the economy of the

north-east. Obviously we have seen large-scale redundancies, starting

with contract is and temporary staff. But this is starting to have

a ripple impact through to full-time staff and local residents and we see

across Scotland with companies who are in the supply chain, making

redundancies. With oil money drying up the knock-on impact is obvious.

This car dealership in Glasgow is doing well but others in the

north-east are not so lucky. With new cars of the shopping list for

many customers. The situation in Grampian has slowed down. It's a

confidence issue, to be honest. What we have seen is a 10% reduction

which is 2000 units, two and a half thousand units on the previous year.

Scotland's oil and gas industry may have struggled this year but this

high-technology firm has seen its business pick-up. Using virtual

reality in everything from medical education to architecture. It's

almost as if you can step through into the space. Enough firms like

this are finding new work and new markets. That means Scotland's

economy has grown, but only just. Moray Council could become the first

local authority to bring the eight year freeze council tax. Councils

are meant to discuss the possibility of doing so at a meeting this

morning. Local government correspondent Julia McIver joins us.

What exactly are they proposing? -- Jamie McIvor. To be clear, the

decision will be taken at the Council meeting in February of the

council said what it was looking at. It's looking at a very big increase

in local council tax, a rise of 18%. That means that a typical household

in Moray, a band D property would be facing a rise of around ?200 a year,

the bill that the council was arguing that this is the only way of

trying to stave off significant cuts. It argues that it will raise

some ?5 million are sought by putting up the council tax and this,

together with tapping into reserves, it believes this will help it meet a

funding shortfall but this is obviously a very big proposed

increase. It's a bit of a gamble for the council, would local voters be

happy to pay that much more simply to avoid cuts? Or might some argue

that there might be better ways of saving money and that the Scottish

Government is doing the best it can to protect local government from

what the Scottish Government calls the worst of the Westminster

spending cuts. Yes, presumably one of the reasons they would have to

put council tax up by so much is because they would face penalties,

wouldn't they? That's right. The way the council tax freeze has worked,

going back to 2007, is through something of a carrot and stick

approach, the carrot was the promise of money from the Scottish

Government to freeze the council tax, the stick, of course, that any

council who wanted to put up the council tax would not get that

government money and that would have led to any increase in the Council

Tax Support being a significant one. That is why the proposed increase is

as high as 18%, as far as Moray Council is concerned, that is the

kind of level of rise you need to have before it actually makes any

difference to the finances. If you put Council Tax Support by 10%, it

might sound more palatable but the council leaders say that would put

them in the night in a situation of charging people more but still

making some cuts. They presumably are hoping to get some sort of posse

together on this because I notice in Highland, some... The council there

says it would like to do it too but it would like it if a fume or went

along with us. It's obviously a difficult council for one council to

be in because at 31 other councils continue with the council tax

freeze, even though some of them may say they are under very low

financial pressure, it wakes it hard for one council to go ahead with

such a radical increase as this. You can imagine the potential something

of a local rebellion by council taxpayers over this. I spoke a few

other councils today and there are a few other non-SNP councils which are

saying that they have not yet confirmed able freeze the council

tax again in the coming year. Certainly, there is the possibility

that Moray Council will not be alone but an interesting statement put out

by the opposition SNP group on Highland Council. It's making the

the point that island residents opposed the suggestion of a 10%

council tax rise in a consultation carried out by Highland Council. It

is going to be looking at bad idea in a few days time. That kind of

suggests that any council that wants to put up the council tax by a

significant amount, they are going to be taking a big gamble with local

opinion. Thank you for that. My guest for this afternoon is the

political editor Kieran Andrews. Not far from view, five, over the bridge

from Dundee, they are thinking about this as well. They are indeed. It is

a Labour council. Five last night discussed the possibility of putting

council tax up by 7%, so not as much as we are seeing suggested elsewhere

up north. But it is significant because it shows quite significant

rebellion against the Scottish Government, this policy. It is

costing council is potentially a year and a bit out from a local

election and elected local government, it could potentially

cost councillors votes, the jobs, the administration but they feel I

did they need to do this to keep providing services after the cuts to

budget from John Swinney and the Scottish Government or perhaps they

think that... You know, they are heading for a collision course with

the Scottish Government and they might actually gain credence from

that. I wonder... These penalties they would have to pay... Are just

there as a fact the moment. But Uzomah plea if a significant body of

councils said we were going to put council tax up anyway and we think

it unfair that we are being penalised, these penalties would

suddenly become politically a bit of a hot potato? That is the gamble.

Obviously these councils... You heard it are, they want everyone to

come together to put treasure on the Scottish Government so they can say

John Swinney is cutting your bin collections, harming your schools,

they can make that sort of coin. The problem is there are a significant

number of SNP councils who won't sign up to this, they will stick by

the council tax because that's the policy. At most, you will get a

handful of councils who will be prepared to put head above the

parapet and go for that, it might pan out for them, they might win the

battle through rhetoric but it's not without its risks. One of the

interesting things, this is not one party, is it? Moray Council is I

believe, Conservative, independent, Hal and is independent, Fife is

considering switches, and that is a Labour council, the argument against

the freeze has always been it's actually just a subsidy per the

middle classes. Dressed up as a subsidy with a disadvantaged but

that presumably is not the only argument being made if independence

and conservatives are considering getting rid of it as well. It's

interesting there is a Conservative lead counsel... Making it up,

looking at ending the council tax freeze. Ruth Davidson is running on

a low tax manifesto for the Holyrood election. It shows that there are

challenging circumstances, for local government, it shows parties of all

colours are prepared to take quite big steps to point that out. The big

question is whether they can get round that or they can do in North

that won't turn of folders, make people pay an extra ?200 a year,

people haven't had to pay anything extra in council tax or almost ten

years, it will be a big shock to the system for homeowners. Right...

Now... Briefly, you imply from what you said a moment ago that the

SNP... You wouldn't get any SNP councils readiness. For example, in

Dundee they rules about... All right, we will come back to it. We

want to go to Parliament cos the Dundee councillor Lesley Brennan is

to be sworn in as a Labour M people. Here she is. I swear that I will be

faithful and bear true allegiance... I swear that I will be faithful and

bear true allegiance... To Her Majesty, Queen Elizabeth, errors and

successors according to law... To Her Majesty Queen Elizabeth, her

heirs and successors, according to law. So help me God. So help me God.

Thank you. Kieran, just briefly, finish on the

last bit... Can you anticipate any SNP councils... Saying we don't

care, we need the money. We will put up council tax. That is not what

they do, they don't rebel. Lesley Brennan, isn't she said about Tony

Blair, we don't want your money when Juve standing in the general

election? She did indeed, you can see Kezia Dugdale in the back of the

shot and she swore allegiance to the Queen. She has also publicly

criticised Kezia Dugdale twice, once when she was running for deputy

leadership, she said that would mean the Labour Party was doomed

electorally, that seemed to pan out in the Westminster elections. But

also recently, she described herself as being ambivalent towards her now

leader. Right... She is an net gain for the left of the Scottish Labour

Party. She is indeed. All right! Let's go back the chamber. Labour

leading a debate on how the new Paris in the Scotland Bill can be

used to tackle poverty and inequality. The deputy Labour leader

Alex Rowley is speaking. I want to welcome Lesley to the

chamber. I was thinking this morning that up until now, I think I was the

newest member in this chamber and now... It is Lesley so

congratulations. APPLAUSE

Presiding officer, in the weeks and months ahead, in the lead up to the

general election in May, I will in Scotland have a debate about the

most pressing challenges and issues that we face in Scotland faces,

moving forward. Today I have tabled a motion that speaks about the

social and economic success or all of Scotland. My desire, my ambition,

throughout by life has been to live in a society for we no longer have

the haves and have-nots but instead, we have a society for everyone, no

matter what family they are born into or what circumstances they are

born into, they have an equal chance to achieve their full potential. A

society where, if you are unable to work and provide for yourself, there

is a Social Security system to support you with a minimum income

and Society for, if you are able to work, you will work earn a fair pay

and be treated with dignity and with respect in the workplace. I actually

don't think that is an awful lot to ask for. Yet, in Scotland in 2016,

we are far removed from that kind of society and despite what the Tories

say here today, it's actually getting worse. And that is why we

need a more open and honest debate about the state we are in. What

needs to be done to bring about a more fair, more just and more equal

Scotland. I don't have any objections with what has been tabled

as an amendment on behalf of the government for the debate today,

indeed, I remain proud that it was the Labour Party in Fife that rot

about the free bus pass for pensioners, the first of any fur in

the UK. And it was then a Labour Chancellor that ruled that policy

out -- would the policy out across the UK. Labour in Fife brought about

free nursery education for three and four-year-olds which is a massive to

be tackling poverty. The Scottish Government now clearly recognises

this to. While not disagreeing with the measures outlined by the

government, some brought about ID SNP and some by Labour, I would have

to say that on their own, these measures are not going to create a

fairer society that we all want. Indeed, despite the measures being

in place, for many families, particularly families on low fixed

incomes, are getting worse. I would say today, that there is a

legitimate abate to be had about how we target resources to reach those

in the greatest need. -- debate. The qualities or has flagged up issues

about universalism and I hope moving forward in Scotland we can have a

debate and be able to look at matters like this in an open, honest

and transparent way. But for now, let me give you an example of a

family Centre in Kirkaldy. Five years ago at Christmas the Cottage

provided Christmas parcels for 100 children. In 2014, it was 500, this

Christmas it had risen to 700 children... 780 children, nearly

twice as many children as five years ago needing help Christmas. Contrast

to five years ago, when the need was for extras for toys for the kids,

that families could not afford, this year the urgent need was for basics,

food that families could not afford to put on the table at Christmas. So

the suggestion from the Tories in their amendment today that levels of

poverty or at historically low levels, that is simply not the case.

Whilst I... On the subject of the Tories... The proposal put forward

by the Prime Minister yesterday that families should be in courage to to

save money in a bid to tackle poverty shows just how out of touch

these people are with real life. Nanette Milne. Well... A little

while ago our correspondent Andrew care spoke to MSson the economy and

GDP figures. Lots on the agenda today at Holyrood. I am joined by

three MSPs, Linda Fabiani from the SNP, Liam McArthur from the Scottish

Liberal Democrats and Lewis Macdonald from Scottish Labour.

Welcome. Let's start at the GDP figures, 0.1% gross output, Linda,

not great figures. Well, that is the latest quarter that it references

for, they don't look great but why we should never get complacent, it's

always better to look at it over the longer term and if you look over the

last three years, Scotland is keeping up there and performing

rather well. Look at the construction sector in the longer

term, we have issues, of course, we know about the troubles in the

North, North Sea oil, BP announcement yesterday but it's

essential we carry on with infrastructure worked, try and boost

apprenticeships, try and help the oil industry as much as we can and

help construction work because that's how we keep the figures going

up. The Scottish Government is quick to blame the UK Government when

things go wrong but when things are better due could to take the credit?

I don't think that's true, for we are at the moment is a case of

everyone working together because we share these islands. Our fortunes

are in some way dependent on each other, regardless of the

constitutional setup so it's important we lived together,

articulate in the North Sea and Aberdeen. Liam, 12 quarters in a row

of growth, this is the longest since revolution? It's a pretty good

record. A fair point to make to Linda that we have seen the SNP

being quick to claim credit when things are on the up and distance

themselves, blamed the UK Government when things are not so rosy but

what's interesting, as you pointed out, the rate of growth and the rest

of the UK is now outstripping that of Scotland, that is a concern. I

think Linda is right to say we need to look at the long-term, invest in

infrastructure but is something here for the Scottish Government, they

need to broaden the base of economic performance and ensure that the

performance in terms of business start-ups is improved. That's an

area I think the Scottish Government has fallen down. What more can they

do? You talk about investment... The Scottish Government sees its budget

being cut? I agree the issue in relation to capital... And everyone

except that in terms of long-term growth, that's what I'm saying...

Broadening the base of growth, I have seen over a period we have

fallen back in this quarter, to see an improvement in the business

start-ups, a range of things that the Scottish Government can do in

that respect but I think rather than draw, from what has happened over

the last three years and perhaps claim credit for previously they

distance themselves, it's an opportunity for the Scottish

Government to think again about how it is encouraging and stimulating

the small business growth. Lewis met Donald, perhaps it's not a bag had

record when using of what's happening in the North Sea. I'm

always in favour of taking an historical perspective but we need

to address for your now, second quarter in a row for growth has been

a Birtley invisible, it's taken a year of the Scottish Government to

accept the seriousness of the oil jobs crisis and what that means for

the wider Scottish economy. We are seeing that feeding through with

growth figures of 0.1%, I fear the next quarter will be worse and as I

say, I am pleased they have recognised the extent of the crisis

but it's taken an awful long time and we don't be what further

economic damage has been done in the last four months. Do you think 2016

could be a year of crisis that the North Sea industry? Oil companies

hedging their prices at a higher level, of course, we are seeing

dollar per barrel price coming down and down and that, as time goes on,

would mean bad news for workers. We are already clearly in a very

critical situation and then oil prices were around $50 mark a couple

of months ago people said we need to learn to live with your prices are

longer, $50 seems like halcyon days compared with four we are now, the

price hovering around $30. If it goes much lower the impact on the

whole sector will be very large indeed. Oil fields which are

currently producing at a loss will become enormously loss-making and

that is obviously... It has indications. The Scottish Government

has stewardship for the wider Scottish economy and that has to

take these matters seriously, not just Aberdeen, the north-east and

offshore at the knock-on effects on manufacturing and other sectors.

Linda, we could be looking at a serious crisis for the North Sea oil

industry. One of your MSPshad to apologise after alluding to the fact

he was saying it wasn't perhaps a crisis but what can the Scottish

Government do to be able to help people in the industry and as you

say, you have to work with the UK Government? Yes, a task force was

set up, I think the first meeting of that was a year ago and I heard a

representative from Aberdeen on this morning calling for another major

summit on that and I'm sure that is considered by the government. It is

the effect right through the economy, not just spending power,

it's about associated companies with the oil industry and yes, looking at

small businesses and start-ups as mentioned is extremely important. I

actually believe the Scottish Government has a good record on

that, looking at the enterprise sector, trying to make it work for

those who want to set up in business and we are all working hard for

that. But it's not just about working with the UK, it's about all

of us in this parliament working closely together. I think there is

wreckage Ishant that's what we have to do because this is a serious

situation. Liam, as was pointed out it can affect the wider economy and

constituents are involved in the industry and the associated

industries? Absolutely. I was at an oil terminal at the end of last year

and there is no doubt there is concern about what is happening in

the wider sector, it was Berry much present in those discussions. We

have already been through a period of significant job losses, each time

you predict that the price of oil cannot rob further it goes ahead and

does that. I think it was concerning to hear some within the SNP, by no

means all, seemingly dismissing the crisis, I think there is a joint

effort tween the Scottish Government at the UK Government to address this

but nevertheless, the challenges facing the sector at the moment

cannot be underestimated. Let's move on to the other issue, Moray Council

suggesting an 18% rise in council tax, 5 million funding cut from the

Scottish Government, ?150,000 penalty from the Scottish Government

for not keeping up teacher numbers. Linda, having to take drastic action

because of Scottish Government action? First of all, can we be

playing, the council tax freeze is funded and look at the independent

research Harry died by the parliament research Centre it says

it's more than funded to try and blame the Scottish Government Fernie

to raise the council tax which is only 12 or 13% of overall government

expenditure, I think is a bit of a bizarre situation for the council to

take. It's up to councils to look at what is best for their area. I don't

know Moray Council that well but I am sure a rise in council tax won't

help hard pushed households. There is more debate about whether this

will grow through -- go through. As Linda pointed out, the council tax

is fully funded. We see a combination of a number of things,

teacher numbers guaranteeing that the Scottish Government is insisting

on penalties, that is not met by one teacher. The penalties incurred are

significant and it requires councils to look seriously at the teacher

recruit. That, alongside a council tax freeze that's been in place for

nine years, initially it was there for a transition to a local income

tax which the SNP government abandoned, creating a squeeze and on

top of that ECA ?500 million cut budgets. -- we see. Moray Council is

finding itself in a position where it has to raise additional revenue

or cut services and Scotland to such an extent that they can't cut any

further. I think other councils are looking very seriously at making a

similar move. Lewis, what is the solution, the Labour solution to

this? We aren't clear about what the Labour Party is suggesting when it

comes to council tax increases. Of course, I am sure you would love me

to announce that live on this programme but sadly, that is not

something that will happen, it'll come in the next few weeks but all

parties agree that the system currently operating needs reform,

the question is what, there have been lively discussions on local

government taxation and the commission are not in labour has

played a full part in that. Watch this space for a bigger solution but

I think it's important to highlight the issue that Moray Council has

come up against because how can it be right for the Scottish Government

to penalised those very councils which are trying very hard to

recruit teachers and finding it hard? Aberdeen City Council convened

a summit of the councils in the North of Scotland which are all

facing the same issue, it's not about politics or management of the

particular councils, it's about the challenge of recruiting teachers,

work in the north of Scotland. How can it be right that the Scottish

Government penalises those councils which are finding it hard is by

taking away some of the money which they might use to incentivise people

to come and work in the area? It's completely perverse in that area,

the Scottish Government to do a U-turn, acknowledged it is punishing

people for trying their best and do something more constructive. You

three, we will have to leave it there, thank you all very much.

Gordon, with that, it is back to you in the studio.

Let's go straight back to the chamber for more of the debate on

poverty and inequality. Labour putting forward a motion committing

the Parliament to using the new powers in the Scotland Bill to

improve social and economic conditions. In absolute and relative

terms. Of course, after 66, the July measures, it has been downhill for

the last 50 years, ever since. Starting with Harold Wilson, then

Jim Callaghan, then Ted Heath and all the rest. But the point,

presiding officer is this... The fundamental point of principle put

forward by Alex Rowley is absolutely right, the best way, the only way to

really solve the problem of poverty and inequality is through full

employment. Not just in terms of everybody who is fit and able to

work actually having a job, but having a good and well paid job as

well. That is an ambition that we share with Alex Rowley and that is

why so much emphasis of this government has been to put economic

growth and sustainability at the top of the agenda since the day we were

elected in 2007. It is quite noticeable, presiding officer, the

GDP figures announced this morning, that we are dealing against the odds

with the difficulties in the oil industry and facing the austerity

policies coming from London, we are still able to grow the Scottish

economy and the reason we are still able to grow it is that we have

deliberately targeted a massive increase in capital investment in

Scotland, so that we could create and maintain the good jobs that we

have. If you look at housing, for example. The fact of life is that

compared to the first eight years of the Parliament, the housing record

in the last nine years has been absolutely outstanding. We are

building about 5000 council houses compared to six in the last year of

the previous administration. And if you look at the total number of

houses completed, we have exceeded 30,000 figure and we will build

another 50,000, at least, over the next five years. The reasons why

housing is so important, presiding officer, is just... I will in a

minute... Not just in relation to the need for housing and that is

absolutely, we totally agree, has to be a top priority for this

Parliament and the next government as well. But as we know, good,

decent housing is a prerequisite to eliminating and reducing poverty.

Good, decent housing is essential to achieving educational attainment.

Good, decent housing is essential to improving the health of the nation.

Housing ticks every box in terms of being good policy, which is why we

have set aside over ?3 billion over the next five years to build 50,000,

at least 50,000 new affordable houses. I was surprised that he was

claiming the GDP figures as a success story, because Scotland is

lagging behind the rest of the UK both in the annual figures and over

the period. Presiding officer, I did say that the GDP figures were a

success given the state of the oil industry and given the impact of the

austerity measures implemented by a government which he supported and

more recently, the Budget introduced by Osborne last year. Frankly, if we

hadn't been here, implementing our economic policy and spending the

money we are spending on capital programmes including through the

Scottish futures trust, the GDP figures would not have shown any

growth at all. If the member cares to look at the analysis within the

GDP figures, while there was some growth most recently, the real

growth sector was in construction. That construction growth is coming

from our investment in a new bridge over the the Forth, our investment

in 30,000 new houses, our investment in railway. All of that is due to

our investment in construction on the jobs that are brought with it.

Not only does that contribute to a much higher level of employment and

growth than otherwise would be the case, it also contributes to keeping

poverty and inequality at a lower level than it otherwise would be,

because Alec Crowley is right. BBC Scotland has learned

the Scottish Government is facing the threat of court action if it

fails to tackle illegal levels of air pollution in

the country's biggest cities. The warning comes from

the environmental law group, It's already won a landmark

ruling against the UK Here's our environment

correspondent, David Miller: Air pollution is blamed for around

2000 premature deaths in Scotland each year. It mainly comes from road

traffic. Nitric oxide, nitrogen dioxide and carbon monoxide are just

some of the gases which make up the mix. Then there are tiny particles

produced by diesel engines. The more scientists learn about their impact

on our health, the more worried they become. Pollution levels are

constantly monitored. They have fallen in recent decades, but

experts say our love of the car means that drop has stalled. We know

more about air pollution these days, so we know the health effects. While

it is not at the same level it was it 30 or 40 years ago, people still

die and have shortened life expectancy due to Apple. Any

additional death or any life lost is avoidable -- Q2 air pollution.

Campaigners are now warning that they may mount a legal challenge to

the Scottish Government's track record. We are particularly

concerned that some parts of the UK, cities in England are getting clean

air zones. But other cities in Scotland will not. Environment

minister Doctor Ellie McCann has defended Scotland's record. -- Dr

Aileen McLeod. Meanwhile, one veteran anti-motorway

campaign has warned that Scotland is in danger of repeating the mistakes

of the past. Rosie fought against the construction of the M77 in

Glasgow. You have to scream to be heard. Obviously invisible

pollution. There is a school there. There are plenty of schools and

nurseries around. So there are ongoing effects which will always be

around. Let's breathe our way through the

pollution and go back to the debate we were just watching. Do you think

Alex Neil was seriously intending to suggest that the Scottish economy

would be in recession if not for the fact that his government had built a

few houses? That was what he seemed to be in to mating. Despite the fact

that the UK economy is growing at a higher rate than Scotland, Alec Neil

seemed to suggest that the SNP's public spending is all that is

keeping Scotland out of recession. It is an extraordinary claim. Nicola

Sturgeon admitted that we do have an oil crisis yesterday. If it is

hitting us that badly, it is not something to be complacent about in

terms of building houses and it will be fine. I am sure he was trying to

talk his party up and say his government had been helpful, but if

it really is the case that the private sector in Scotland is in

recession and the Scottish economy is relying on public money to keep

itself growing, that is alarming. If that is the case, I am sure we would

hear from businesses. It is a great worry if businesses are in such a

state that the private sector is relying on public money. It is not

sustainable and can only go on for so long, as we have seen with

previous economic problems. It is not something to boast about, I

would suggest. Let's be fair to him, perhaps that was not what he meant

to suggest. On the other hand, he was at least saying something

specific. We were watching some of that debate, and you just make

grandiose claims, no one says anything specific. Something needs

to be done, but nobody knows what to do, seems to be the message we are

getting from all parties of all colours and stripes. It is usually

someone else's fault as well. When we see good news, the SNP are happy

to take the credit. And there will be lots of credit due to the

Scottish Government and due to initiatives to help improve the

economy. When things are bad, it is always the fault of the UK

Government. It is the same from the opposition as well. When things are

tough, you blame who is in power and when things are good, you say we

thought of that as well. And is it okayed to say that the fact that the

Scottish Government has grown by 0.1% down to building a few houses,

and the rest of the fault of George Osborne? In his defence, we know the

state of the oil industry. We know the difficulties the economy is

facing, particularly the disproportionate effect the oil

industry will have an Scotland. They are very difficult market

conditions. But it will be fine, because we are going to have a

summit about it. Which will in no way just be hot air(!).

The Finance secretary John Swinney has insisted there's no need

for local authorities to wait until the end of March before making

At the weekend the Government announced funding for a grant

business or charity directly affected by flood water.

Yesterday opposition politicians raised concerns about the length

of time councils are having to wait to receive the cash,

among them the Conservative MSP, Alex Fergusson.

Can the deputy for the minister confirm that the funding he

announced on the 16th of December will not be made available to local

councils till the end of March, and if that is the case, were he

fast-track it? First of all, I have seen a bit of traffic over the

course of the last two days that the money I announced in December will

not be available until March. I suspect that has come from the

letter that was issued on the 17th of December to local authorities,

which implied that the money would be paid out in the last two weeks of

March 2016. If this is the source of this particular piece of poorly

analysed information, it doesn't say much about the knowledge of local

government finance determinations, because on a constant basis,

ministers make announcements in this Parliament, and the statutory

allocation of the money, the Parliamentary approval might not

come until a reach termination order at the end of March, but it doesn't

stop local authorities spending the money. So there is no issue about

local authorities having to wait until the end of March for their

money. I have announced in Parliament that the money is coming.

If that is not good enough for a local authority, the whole system of

local government finance, in every other respect, because I have a list

of different other schemes here, whether it is the council tax

reduction scheme or the teachers' induction scheme or the free school

meals or the looked after children policy or the discretionary housing

payment system, all of which were paid out to local authorities by the

same means, and it didn't stop local authorities paying out their money.

So I don't know what people are thinking about on this point. It was

interesting that the Cabinet Secretary repeated the assertion

that councils should pay out now. I would suggest that instead of asking

cash-strapped councils to make payments on the basis of an idea you

from the Scottish Government, that the Scottish Government should make

payments as soon as possible to councils to assist them in assisting

hard-pressed households and local businesses. I am really at a loss

here. Order! Dr Murray is a former minister of the Scottish Government

who knows how local authority finance works. Every week, we pay

money to local authorities. Every week, a cash payment is made by the

government to local authorities. If Dr Murray is try to say to me that

Dumfries and Galloway cancer is so hard-pressed that they can't find

?1500 this week to pay out to somebody because they have no other

money available, local authorities are sitting on ?1.8 billion of cash

reserves that can be used to support cash management. And they know fine

well that it is not an IOU, they know fine well I have given a

commitment that that money will be paid. Dumfries and Galloway Council

should just pay up to the people we have allocated the money and stop

finding excuses. A very angry John Swinney.

The Prime Minister has come under attack about his plans for tackling

In the House of Commons this morning, Mr Cameron refused

to guarantee that people who live on "sink estates" will be able

to return to their old communities after they are bulldozed under

The Labour leader Jeremy Corbyn told him that he didn't understand

the concerns of council tenants and those on estates who would be

"forced away" from their communities.

Mr Speaker, I notice the Prime Minister did not give any guaranteed

to leaseholders on estates. So there is another, probably larger group on

most estates that I have a question to ask him on behalf of. A tenant by

the name of Daryl says, will the Prime Minister guaranty that all

existing tenants of the council estates in marked for redevelopment

will be rehoused in new council housing in their current

communities, with the same tenancy conditions as they currently have?

We are not going to be able to deal with these sink estates unless we

get the agreement of tenants, unless we show how we are going to support

homeowners, unless we show how we will support communities. Isn't it

interesting, Mr Speaker? Who here is the small see conservative who is

saying to people, stay stuck in your sink estates, have nothing better

than what Labour gave you have to the war's we are saying if you are a

tenant, have the right to buy. If you want to buy a home, here is help

to save. If you are in a single speck, we will help you out. That is

politics today. A party on this side of the House that wants to give

people life chances, and a Labour opposition that says stay stuck in

poverty. The economic and intellectual contribution of college

and university graduates to the UK is immense. The Smith commission

said the UK and Scottish governors should "Work together to explore the

possibility of introducing formal schemes to allow international

higher education students but you're a tin from Scottish further and

higher education institutions to remain in Scotland and contribute to

economic activity for a defined period of time". Why did the UK

Government this week unilaterally rule out a return of a post-study

work visa without stakeholder discussions and before key

Parliamentary reports? We have an excellent scheme that covers

Scotland, England, Wales and Northern Ireland, and it is this, to

say to the world students that there is no limit on the number of people

that can come and study in British universities as long as they have

two things, an English language litigation and a place at that

university. It is a generous and open offer. The second thing we

offer is that there is no limit on the number of people who can stay

after they have graduated, as long as they have a graduate-level job.

Again, that is a clear message that all of us, whether we are involved

in the Scottish gunman, the Northern Ireland administration, the Welsh

administration or the UK ad administration, should get out and

sell around the world. It is a world beating offer. We want the world's

brightest graduates to come and study here and then work here. What

a great deal. The return of post study visas is supported by a month

others, all of Scotland's 's 25 publicly funded colleges, the

College of Scotland, the university of Scotland, the representative body

of Scotland's 19 higher education institutions, many other

organisations and businesses and/or parties including the Scottish

Conservative Party. So why does the Prime Minister think that they are

all wrong and he is right? For the reason I have given, which is that

the clarity of our offer is world beating. The disadvantage of

inventing a new post work-study route where you are effectively

saying to people coming to our universities, it is OK to stay with

a less than graduate job, frankly, there are lots of people in our own

country desperate for those jobs, and we should be training them up.

We don't need the world's brightest and best to come here to study and

then to do menial jobs. That is not what our immigration system is for.

We want a system where we can advertise to the world, come and

study here and work here. That is the system we should keep.

Our Westminster Correspondent David Porter is on College Green

Not only is it not raining, but he is bathed in sunshine! It is

virtually car buckle down here. No dirty language from you, please,

about rain. We want none of that. I am pleased to say we have a balanced

panel with me not just from the political parties, but also from the

chambers of the Westminster Parliament. Without further ado, let

me introduce them. From the Liberal Democrats, Lord Nicholls Stephen,

Lord John fax from Labour, Ian Blackford from the Commons and the

SNP and another ism, Ian Stewart from the Conservatives. Ian Stuart,

I will begin with you. It is a famous phrase here at Westminster,

the economy, stupid. That is no insult to you, I hasten to add. We

have a situation now where by even the Chancellor seems to be talking

down the economic recovery. The wheels coming off the economic

wagon? I don't think they are coming off. Britain is recording one of the

healthiest rates of growth in the western economy. The IMF recently

gave us a good prognosis for the future. But what the Chancellor said

last week is that the global economy is in a turbulent state. The

reduction in oil prices is good for reducing the costs of manufacturing

and motorists, but it will have an effect elsewhere in the economy. So

we have to make sure we keep on the right path might improve our

productivity get our national finances in shape so that we are

able to withstand any future to be loads. Yet your Chancellor is using

a phrase like toxic forces. We have the Royal Bank of Scotland is

essentially saying to people, if you have stocks and shares, think about

selling them. That is not moderate language. That was one commentator.

But the Chancellor was right, we are not out of the woods. The

difficulties that led us to the 2008 crash and subsequent recession have

not gone away. It is a reminder that we need to keep on the path of

getting our national finances back in shape so that we are able to

withstand any future shocks that come on issues that any government

in this country would not be able to control. Ian Blackford, GDP growth

figures in Scotland were out, showing that it is not good at the

moment. The oil price is plummeting. The Scottish economy cannot be

complacent, can it? Of course not. We can reflect on the fact that the

Scottish economy has grown consistently over the last 12

quarters. There is an impact from what is happening in the oil

industry and the fact that the oil price has come down, and we need

action from the government to support the industry. But at the

same time, we have to recognise that we are having a debate on the

economy in the Commons and we have to rebalance the economy towards

sustainable growth and making sure we create the circumstances where

there is investment in the economy that will drive innovation, drive up

skills and drive wages. There is more the government can do to make

sure we create the circumstances for sustainable economic growth, which

is why we want to make sure we had towers over business tax and so on

in Scotland so that we can do the right thing to grow the Scottish

economy sustainably. I am sure if I don't say it, Europe and swill- your

economic policy, -- if I don't say it, your opponents will- your

economic policy would have been thrown out in the event of

independence? Nobody was predicting that the oil price would fall to

$30. It is a cyclical industry, driven by supply and demand. The oil

price will recover in time, and we need to make sure the skills that we

have in the North Sea and elsewhere is something we can benefit from so

that we have an industry that will still generate wealth, jobs and

prosperity for the economy in the future. But even without oil, the

Scottish economy has the same level of GDP per head as the rest of the

UK. It is not that Scotland depends on oil, it is a bonus. George, you

were shaking your head, but there is far more to Scotland than just oil?

I disagree with both of them. Chancellor George Osborne is

borrowing not just more than the Labour government borrowed, but more

than he forecast. There is a housing crisis. There are people who are

rich getting richer. There are people poor who are struggling. The

only good thing is the price of oil as far as the people of UK are

concerned, because it is bringing some prices down. For Ian Blackford

to say that no one predicted oil prices, they did. Nicola Sturgeon

predicted that oil prices would be. This would be a wonderful, new and

independent Scotland. The only saving grace now for Scotland is

that 16 months ago, Scotland voted no, otherwise we would be in real

trouble. Let's deal with the oil price. On balance, is it a good

thing for Scotland or is it better for the UK with low oil prices? It

is not good for Scotland as far as to suck concerned. I was astonished

that yesterday, Nicola Sturgeon was saying that hundreds of jobs lost at

BP was somehow something wonderful. It isn't, it is disastrous. The oil

and gas industry in Scotland is devastated. We had an SNP MSP saying

it is booming. That is manifest nonsense. Things are bad in the

Scottish oil and gas industry. It is about time the SNP recognised that.

Nicholls Stephen, you were formally an MP and now you are in the House

of Lords. You know the north-east of Scotland well. How hard is it

hurting at the moment? Very hard. With the price continuing to four,

it will be a very difficult 12 months ahead. There has been

complacency. An SNP MSP did say there is no crisis and he did talk

up the record levels of production, which was the case last year. But

this year, with a $30 oil price and with everyone expecting it to be

around $60-$80, we are going to have a very tough 12 months. We are

hearing from the Scottish Government and the UK Government that there

will be serious action to help the situation in Aberdeen, the

north-east and the Highlands of Scotland, but I am aware of any

action at the moment. We need a task force on this. We need both

governments working together, not making politics out of this. In

practical terms, what can and should the government in London and

Edinburgh doing? They should work together to work with the industry

and with businesses, some of whom are not just facing redundancy, but

some of which could go over the precipice in the next few months.

There is a great deal the government can do to support an industrial

sector in such distress. Let's not underestimate this. Some

commentators are predicting that the oil price could go down even

further. This is an incredibly serious situation not just for

Aberdeen and the north-east, but the whole of Scotland and for the UK. It

deserves serious attention. George, let me put the same question to you.

What in practical terms could and should the UK and Scottish

governments be doing? The Scottish Government should stop obsessing

about breaking up the UK. Every time I hear a spokesperson talk, it is

independence, as if that would solve everything. They need to pull their

fingers out and not just sort out the economy and the oil industry,

but the health service, education of the police. All of these things are

being neglected because they are so preoccupied with independence. So

for get the constitution, saw the bread-and-butter issues? That is

exactly what we are doing. And by the way, Nicola takes very seriously

the challenges were facing in the all industry and the disastrous news

of the job losses from BP. Then why did the MSP say there was no crisis?

We face a considerable challenge in the oil industry that we have to

respond to. We have set up an energy task force. We need to make sure we

do all we can to get the right taxation that encourages people to

continue to invest for the longer term. In my constituency, we have a

business which is engaged in the training of divers. We need to

support training and development. These are things we can do to make

sure that when the oil price recovers, we can take advantage of

the opportunities. Gentlemen, we have to leave it there. It is a

subject we could have spoken about all afternoon. Thank you for joining

me. Our confidence to the Met for some

impressive sirens there! Let's go back to that economic debate. One of

the points you were making earlier was that one of the reasons we can

get this is because the opposition were being specific about what they

wanted. It was about nice things in and nasty things out. It has become

a bit of a fad on Twitter, perpetrated about the SNP and

everything the Scottish Government doing being bad. And the opposition

says nothing can be done. Hopefully, this would change from all political

parties in the run-up to the election as we hear more about

manifestos. But there is no real vision at the moment from the other

parties. They talk about the oil crisis, and everyone says it is very

bad and something must be done. What needs to be done? Well, something.

George says the Scottish Government needs to pull their finger out, to

use his phrase. What does that mean? No practical solutions are being

offered. And Nicholls Stephen said oil prices are going up to between

60 and $80 a barrel. What a man! It helps when you can get a crystal

ball out. Baby it is something kept in a murky chamber of the Lords, the

oil price crystal ball. It is all well and good to say that. Another

thing in the news is David Mundell, who has put out a blog today saying

he is gay. Apparently, the first team conservative Cabinet minister

to do so. Absolutely. It is almost sad in a way that a statement needs

to be made. I don't think many people will bother batting an eyelid

about this. In a way, it is very brave of David Mundell to come out

and do this whilst he is still in government and whilst he is under

the public spotlight. But I don't think anyone will care, particularly

the constituents. I gather he has had nasty stuff online, but that is

by the by. We're back at the usual

time next Wednesday. The link between the cars

we choose to drive, air pollution and ill-health is under

greater scrutiny than ever before. Well, we risk

increasing our rates of diabetes, increasing dementia,

increasing depression... Amidst warnings about heart disease,

strokes and obesity, and claims of up to

2,000 premature deaths each year,