Browse content similar to 14/09/2011. Check below for episodes and series from the same categories and more!
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Hello and welcome to Politics Scotland. Coming up on the | 0:00:13 | 0:00:16 | |
programme: Scotland bucks the UK unemployment trend as jobless | 0:00:16 | 0:00:20 | |
figures improve - 3000 fewer people are seeking work. But it's not all | 0:00:20 | 0:00:27 | |
good news - there's concern on the shop floor as retail sales plummet. | 0:00:28 | 0:00:31 | |
As concern grows about the state of the world economy, the Finance | 0:00:31 | 0:00:38 | |
Secretary will this afternoon chart the way ahead for Scotland. And, | 0:00:38 | 0:00:41 | |
here at Westminster, could we be heading towards a winter of | 0:00:41 | 0:00:46 | |
discontent? Public sector unions say they will ballot for strike | 0:00:46 | 0:00:50 | |
action. Good afternoon. Let's start with | 0:00:50 | 0:00:55 | |
the economy, where we're seeing a very mixed picture. The latest | 0:00:55 | 0:00:58 | |
unemployment figures show the number of people seeking work in | 0:00:58 | 0:01:01 | |
Scotland in the three months to July was down by 3000 on the | 0:01:01 | 0:01:05 | |
previous quarter. That means 204,000 Scots were looking for work. | 0:01:05 | 0:01:08 | |
Although the number of people claiming unemployment benefit was | 0:01:08 | 0:01:10 | |
up slightly, these latest figures also found an increase of 23,000 | 0:01:10 | 0:01:17 | |
Scots in employment. But it's a much less optimistic picture on the | 0:01:17 | 0:01:20 | |
retail front, where sales have slumped - the second worst annual | 0:01:20 | 0:01:24 | |
drop in 12 years. Let's get some analysis now with our business and | 0:01:24 | 0:01:27 | |
economy editor Douglas Fraser and our political editor Brian Taylor, | 0:01:27 | 0:01:34 | |
who's at Holyrood. Good afternoon, thank you for | 0:01:34 | 0:01:38 | |
joining me. Force of four, Douglas, let's look at these unemployment | 0:01:38 | 0:01:42 | |
figures. Scotland does seem to be faring better than the rest of the | 0:01:42 | 0:01:46 | |
UK. All of this is relative. The figures are still higher than you | 0:01:46 | 0:01:50 | |
would want them to be. But, if you look at where Scotland is that | 0:01:50 | 0:01:54 | |
compared with the UK, particularly Scotland having been in a worse | 0:01:54 | 0:01:58 | |
position for the last 18 months or so, it has now moved into a very | 0:01:58 | 0:02:03 | |
clearly better position. One way of counting it is this labour market | 0:02:03 | 0:02:06 | |
survey, of people looking for jobs over a three-month period. May, | 0:02:06 | 0:02:11 | |
June and July down by 3,000. It is quite a modest improvement, but | 0:02:11 | 0:02:16 | |
nonetheless it is a move in the right direction. All the regions of | 0:02:16 | 0:02:21 | |
England have seen those numbers are going up. But, creeping up is the | 0:02:21 | 0:02:24 | |
number of people on a Jobseeker's Allowance, which is a harder core | 0:02:24 | 0:02:29 | |
of unemployed people. It is a higher threshold to get on to those | 0:02:29 | 0:02:33 | |
numbers. From the other point of view, it is not just about | 0:02:33 | 0:02:38 | |
unemployment, but also employment. If you look at the Scottish economy, | 0:02:38 | 0:02:43 | |
according to these figures, the public sector is shedding a lot of | 0:02:43 | 0:02:47 | |
jobs. Scotland is shedding them faster than the rest of the UK. | 0:02:47 | 0:02:51 | |
Unlike the rest of the UK, Scotland's private sector, which we | 0:02:51 | 0:02:57 | |
tend to be malign -- 10 to malign, is putting on jobs faster than the | 0:02:57 | 0:03:01 | |
rest of the UK, so it's something is going relatively right for the | 0:03:01 | 0:03:05 | |
Scottish economy. What about sales figures, they don't inspire much | 0:03:05 | 0:03:11 | |
confidence on the High Street, do they? They don't. It was bad in May, | 0:03:11 | 0:03:14 | |
the second-worst month since records began. The reason may be | 0:03:14 | 0:03:19 | |
the weather. Also, inflation has eroded people's ability to spend. | 0:03:19 | 0:03:24 | |
For instance, on food spending, the total spending on food has gone up, | 0:03:24 | 0:03:28 | |
but not as fast as a food price inflation has gone up. People are | 0:03:28 | 0:03:32 | |
either buying cheaper food or they are buying less fit. Also, job | 0:03:32 | 0:03:37 | |
insecurity is an issue. In may mean that on big-ticket items in | 0:03:37 | 0:03:41 | |
particular, like furniture, people are reining back. They have been | 0:03:41 | 0:03:46 | |
doing that right to this downturn. These figures are worse even than | 0:03:46 | 0:03:50 | |
the pulling back of spending that we saw in the worst of the | 0:03:50 | 0:03:54 | |
recession three years ago. Brian, before we discuss the economy, you | 0:03:54 | 0:04:01 | |
have got an update on the Edinburgh project. Yes, the minister | 0:04:01 | 0:04:04 | |
responsible has said that the money that was going to be withheld by | 0:04:04 | 0:04:11 | |
the Scottish government for this transport projects, that money, �72 | 0:04:11 | 0:04:16 | |
million, is going to be restored. Some intriguing announcements about | 0:04:16 | 0:04:21 | |
the way the project will now be handled and governed. 18 from | 0:04:21 | 0:04:26 | |
transport Scotland will join the team directing and controlling the | 0:04:26 | 0:04:34 | |
trams project and tried to drive this forward. Also, very | 0:04:34 | 0:04:37 | |
significantly, as part of the agreement between the Scottish | 0:04:37 | 0:04:41 | |
government and Edinburgh council, Scottish government ministers will | 0:04:41 | 0:04:46 | |
have the right and power to veto key strategic decisions regarding | 0:04:46 | 0:04:51 | |
the trams. At the same time, they are not taking the financial risk | 0:04:51 | 0:04:54 | |
into the Scottish government. That remains with the local authority. | 0:04:54 | 0:04:58 | |
Thank you for that update. Returning to the economy, you were | 0:04:58 | 0:05:01 | |
at the first minister's briefing this morning. Yes, he was making | 0:05:02 | 0:05:10 | |
the point that he was -- that the Scottish situation with regard to | 0:05:10 | 0:05:12 | |
unemployment and employment is relatively better with regard to | 0:05:12 | 0:05:17 | |
the rest of the UK. He attributed that to the policies being | 0:05:17 | 0:05:20 | |
undertaken by the Scottish government, accelerated capital | 0:05:20 | 0:05:26 | |
spending, access to finance. Also, the security that comes from | 0:05:26 | 0:05:29 | |
offering no compulsory redundancies to those in the public sector who | 0:05:29 | 0:05:35 | |
are directly under Scottish government control. He was calling | 0:05:35 | 0:05:39 | |
for a special plan B from the Chancellor, George Osborne, who | 0:05:39 | 0:05:43 | |
suggested that he should emulate the approach taken by the Scottish | 0:05:43 | 0:05:47 | |
government. Thank you for that. Let's cross to the chamber now and | 0:05:47 | 0:05:54 | |
hear what the Finance Secretary John Swinney is saying. | 0:05:54 | 0:05:58 | |
He has been saying that Scotland is not immune to the global economic | 0:05:58 | 0:06:05 | |
downturn. The public sector has a vital role in helping the economy | 0:06:05 | 0:06:09 | |
emerged from the worst effects of recession, and this update to the | 0:06:09 | 0:06:12 | |
Government's economic strategy is clear priority to accelerating | 0:06:12 | 0:06:16 | |
economic recovery. As the first minister said last week, and as the | 0:06:16 | 0:06:21 | |
cabinet secretary for education has just outlined, we are supporting | 0:06:21 | 0:06:26 | |
our dumb people through a package of new measures. This includes a | 0:06:26 | 0:06:30 | |
guarantee of a place in education and training for all 16-19 year- | 0:06:30 | 0:06:34 | |
olds. The delivery of apprenticeship opportunities in | 0:06:34 | 0:06:37 | |
each year for parliamentary term, and ensuring that access to higher | 0:06:37 | 0:06:41 | |
education is based on the ability to succeed and not the ability to | 0:06:41 | 0:06:47 | |
pay. Where we can, we will protect employment, ease uncertainty, and | 0:06:47 | 0:06:50 | |
promote economic confidence. Our no compulsory redundancies policy does | 0:06:50 | 0:06:55 | |
just that. We will also continue to protect household income as part of | 0:06:55 | 0:07:01 | |
our commitment on the social wage. Economic recovery is a typically | 0:07:02 | 0:07:05 | |
led by investment and we have argued strongly against the | 0:07:05 | 0:07:09 | |
coalition's plans to cut our capital spending by nearly 40% in | 0:07:09 | 0:07:14 | |
real terms. Our previous decision to accelerate capital was a success, | 0:07:14 | 0:07:18 | |
and is estimated to have supported over 5,000 jobs through our | 0:07:18 | 0:07:23 | |
programme of capital acceleration. Where possible, we will prioritise | 0:07:23 | 0:07:27 | |
our spend on capital to maximise the impact of jobs and on the | 0:07:27 | 0:07:35 | |
economy. We will deliver key infrastructure projects, we will | 0:07:35 | 0:07:39 | |
take forward a new Housing Investment Programme, and we will | 0:07:39 | 0:07:42 | |
support additional investment through alternative funding streams | 0:07:42 | 0:07:48 | |
such as our �2.5 billion non-profit distributing programme and the use | 0:07:48 | 0:07:52 | |
of tax incremental financing. We will also work to boost levels of | 0:07:52 | 0:07:55 | |
private investment in the economy through initiatives such as the | 0:07:55 | 0:07:58 | |
Scottish Investment Bank and our national renewables infrastructure | 0:07:58 | 0:08:03 | |
fund. However, as I outlined to the parliament in June, long-term | 0:08:03 | 0:08:06 | |
economic success cannot be supported solely by growth in the | 0:08:06 | 0:08:10 | |
public sector. It is growth and investment in the private sector | 0:08:10 | 0:08:13 | |
that is key to unlocking Scotland's potential and creating | 0:08:13 | 0:08:20 | |
opportunities for all to flourish. The objective... I am glad that Mr | 0:08:20 | 0:08:23 | |
Johnson acknowledges the success of the Government's agenda. If he | 0:08:23 | 0:08:27 | |
wants to get to his feet to endorse it further, he would be welcome to | 0:08:27 | 0:08:32 | |
do so. The objective for the Government is to provide the over | 0:08:32 | 0:08:35 | |
arching economic framework, such as a competitive business environment | 0:08:35 | 0:08:40 | |
and integrated economy, and a skilled and adaptable workforce | 0:08:40 | 0:08:44 | |
which is conducive to sustained economic growth. That is what we | 0:08:44 | 0:08:48 | |
aim to achieve through the Government's economic strategy. We | 0:08:48 | 0:08:52 | |
are focusing our actions on six strategic priorities which will | 0:08:52 | 0:08:55 | |
drive sustainable economic growth and develop a more resilient and | 0:08:55 | 0:09:00 | |
adaptable economy. Our ability to promote prosperity and jobs depends | 0:09:00 | 0:09:03 | |
on the performance of our businesses both large and small. | 0:09:03 | 0:09:06 | |
That is why we are committed to maintaining and further investing | 0:09:06 | 0:09:10 | |
in a supportive business environment. Reflecting the | 0:09:10 | 0:09:13 | |
opportunity we have to take advantage of Scotland's relative | 0:09:13 | 0:09:19 | |
comparative advantage in the local economy, we have established a new | 0:09:19 | 0:09:23 | |
strategic priority of the transition to a low carbon economy, | 0:09:23 | 0:09:31 | |
and I will say more about this shortly. I will give way. Clearly | 0:09:31 | 0:09:36 | |
kit and -- commitment to a low carbon economy it is something | 0:09:36 | 0:09:41 | |
shared. Can you tell us how inclusion in this document changes | 0:09:41 | 0:09:46 | |
the support from the Scottish government on this? What it does is | 0:09:46 | 0:09:52 | |
give the private sector, and also those decision-makers within the | 0:09:52 | 0:09:56 | |
public sector, the absolute clarity of the direction of government | 0:09:56 | 0:10:01 | |
policy. What that means is that went private sector organisations | 0:10:01 | 0:10:05 | |
are looking at the colossal range of investment opportunities that | 0:10:05 | 0:10:10 | |
exist in the low carbon sector within Scotland, whether that is in | 0:10:10 | 0:10:14 | |
offshore renewables sector, whether that is in some of the low carbon | 0:10:14 | 0:10:18 | |
vehicle technologies which some of our companies are pioneering, or | 0:10:18 | 0:10:23 | |
whether it is in some of the initiatives about ensuring that we | 0:10:23 | 0:10:27 | |
maximise the utilisation of energy resources within our country, | 0:10:27 | 0:10:30 | |
private investors can see the Government is absolutely serious | 0:10:30 | 0:10:36 | |
about this approach. Equally, it is the strongest possible signal to | 0:10:36 | 0:10:39 | |
those involved in the public sector that we have to make sure that we | 0:10:39 | 0:10:45 | |
have the skills and labour market composition that will ensure that | 0:10:45 | 0:10:49 | |
the demands of the low carbon economy can be satisfied by the | 0:10:49 | 0:10:54 | |
focus within our higher and further education institutions. In all of | 0:10:54 | 0:10:58 | |
that, it gives policy certainty to the public sector, and clarity to | 0:10:58 | 0:11:03 | |
the private sector for these investments to be undertaken. | 0:11:04 | 0:11:06 | |
cabinet secretary mentioned opportunities for employment | 0:11:06 | 0:11:10 | |
throughout those sectors. Would he agree that it is important to have | 0:11:10 | 0:11:13 | |
more opportunities for young people in those high-growth sectors, | 0:11:13 | 0:11:17 | |
particularly given the UN force should figures we had today of | 0:11:17 | 0:11:24 | |
youth unemployment? -- unfortunate figures? Part of what the | 0:11:24 | 0:11:30 | |
Government has said, indeed, the First Minister's first paragraph of | 0:11:30 | 0:11:35 | |
the statement last week to Parliament was about the importance | 0:11:35 | 0:11:38 | |
of ensuring opportunities for all of our young people. I don't think | 0:11:38 | 0:11:43 | |
the Government could have attached a greater priority to ensuring that | 0:11:43 | 0:11:48 | |
providing opportunities for our young people is fundamental. On a | 0:11:48 | 0:11:56 | |
recent visit I made in the presiding officer's constituency to | 0:11:56 | 0:11:58 | |
the five energy park, it was clear to me the apprenticeship | 0:11:58 | 0:12:03 | |
recruitment that had gone on in that facility was very much linked | 0:12:03 | 0:12:08 | |
to the low carbon economy. I saw more of that at a company I visited | 0:12:08 | 0:12:16 | |
on Monday where substantial apprenticeship opportunities were | 0:12:16 | 0:12:20 | |
being created for young people and the Government would endorse that. | 0:12:20 | 0:12:25 | |
That is my point in response to Mr McDonald, in that of the meaningful | 0:12:25 | 0:12:31 | |
content of this strategy is not to have a glossy document available. | 0:12:31 | 0:12:34 | |
It is to say to the key decision- makers within the public sector | 0:12:34 | 0:12:39 | |
that we expect provision and planning to reflect the contents of | 0:12:39 | 0:12:48 | |
the Government's economic strategy. Our strategic priority... You need | 0:12:48 | 0:12:54 | |
to wind up, Mr Swinney. Sorry, my mistake, you have got 14 minutes. | 0:12:54 | 0:12:58 | |
Thank you, presiding officer. You almost encouraged a very healthy | 0:12:58 | 0:13:08 | |
0:13:08 | 0:13:11 | ||
transformation in my contribution Our focus on infrastructure, | 0:13:11 | 0:13:16 | |
development, seeks to harness our cities and rural areas and we will | 0:13:16 | 0:13:20 | |
ensure Scotland is positioned to take full advantage of the | 0:13:20 | 0:13:23 | |
opportunities offered by the digital age. Our cities are vital | 0:13:24 | 0:13:28 | |
to success and later this year we will introduce a strategy to | 0:13:28 | 0:13:32 | |
support cities and their regions to maximise their potential as engines | 0:13:32 | 0:13:37 | |
of economic growth. Effective government is our next strategic | 0:13:37 | 0:13:41 | |
priority, fundamental to the successful implementation of the | 0:13:41 | 0:13:44 | |
government's economic strategies. It is only by the actions of the | 0:13:44 | 0:13:48 | |
public sector being fully co- ordinated that we can maximise | 0:13:48 | 0:13:53 | |
Scotland's economic potential. Finally, the government makes clear | 0:13:53 | 0:13:58 | |
our commitment to ensuring that growth is characterised by the | 0:13:58 | 0:14:03 | |
achievement of equity. Social, regional and Inter generational, to | 0:14:03 | 0:14:07 | |
ensure that the transformation of our economy is driven by these | 0:14:07 | 0:14:13 | |
characteristics and opportunities. We believe that our strategy should | 0:14:13 | 0:14:19 | |
focus on the key elements of growth companies, growth markets and | 0:14:19 | 0:14:23 | |
growth sectors. We should take initiatives to support the | 0:14:23 | 0:14:27 | |
development of growing companies by the focus of our enterprise | 0:14:27 | 0:14:31 | |
agencies supporting companies in every way we can and by | 0:14:31 | 0:14:35 | |
characteristics of schemes such as the small business bonus scheme to | 0:14:35 | 0:14:39 | |
assist the small-business community in Scotland. The major theme of the | 0:14:39 | 0:14:43 | |
economic strategy is the expansion of international exporting and | 0:14:43 | 0:14:46 | |
business development opportunities and that will be the focus of | 0:14:46 | 0:14:51 | |
Scottish Development International, who will work to support the 1,000 | 0:14:51 | 0:14:56 | |
to 10,000 businesses who we recognise need to develop skills to | 0:14:56 | 0:15:01 | |
expand their international activities. This work is | 0:15:01 | 0:15:04 | |
particularly characterised by our focus on the transition to a low | 0:15:04 | 0:15:10 | |
carbon economy, the importance of ensuring Scotland is equipped for | 0:15:10 | 0:15:14 | |
digital infrastructure and that we used the instrument of public | 0:15:14 | 0:15:18 | |
procurement to boost the economic impact of government expenditure. | 0:15:18 | 0:15:25 | |
These will be the central themes of our strategy, we will maximise our | 0:15:25 | 0:15:32 | |
powers. We may Clare our aspiration to have a full range of economic | 0:15:32 | 0:15:36 | |
powers to ensure we can transform the Scottish economy and have it -- | 0:15:36 | 0:15:46 | |
0:15:46 | 0:15:48 | ||
deliver the best opportunities for I now call on Richard and Baker -- | 0:15:48 | 0:15:54 | |
Richard Baker. You have 10 minutes. We welcome the Scottish | 0:15:54 | 0:15:58 | |
government's economic strategy. This morning there were harsh words | 0:15:58 | 0:16:03 | |
for the refreshed strategy. While we are not unconditionally positive | 0:16:03 | 0:16:07 | |
about the new document, we welcome its publication because while we | 0:16:07 | 0:16:10 | |
have joined with the Scottish government in calling for a Plan B | 0:16:10 | 0:16:14 | |
from the coalition government at Westminster, whose economic | 0:16:14 | 0:16:18 | |
strategy is clearly not working, it is equally important for a new plan | 0:16:18 | 0:16:24 | |
to be put in place in Scotland. We continue to hear from ministers for | 0:16:24 | 0:16:29 | |
the mantra of recession in Scotland and the rest of the UK. The reality | 0:16:29 | 0:16:34 | |
is we continue to be in a powerless economic situation. The last GDP | 0:16:34 | 0:16:37 | |
figures show the Scottish economy on the cusp of returning to a | 0:16:37 | 0:16:42 | |
situation where it was contracting. Growth of only 0.1%, lower than | 0:16:42 | 0:16:49 | |
that of the rest of the UK. Today Scottish from the Scottish Retail | 0:16:49 | 0:16:51 | |
Consortium show the second worst annual drop in sales for 10 years. | 0:16:51 | 0:16:55 | |
Today's employment figures do show an increase in employment and a | 0:16:56 | 0:17:00 | |
drop in unemployment against the UK trend and that is welcome, but | 0:17:00 | 0:17:05 | |
there is absolutely no room for complacency with a significant | 0:17:05 | 0:17:09 | |
increase in the benefits claimant count and youth unemployment up. | 0:17:09 | 0:17:13 | |
Levels not seen since John Major's government in the early 90s. That | 0:17:13 | 0:17:19 | |
is why we have said these economic challenges require a new response | 0:17:19 | 0:17:25 | |
from the Scottish government. Because despite the focus by | 0:17:25 | 0:17:29 | |
ministers on demands for new powers, we heard again at the end of the | 0:17:29 | 0:17:33 | |
speech from the Cabinet Secretary, the Scottish government is far from | 0:17:33 | 0:17:40 | |
Palace in this situation. It has very significant levers at its | 0:17:40 | 0:17:45 | |
disposal to influence our economy. The way it spends the budget is | 0:17:45 | 0:17:49 | |
crucial in shaping our economic fortunes, which is why the Spending | 0:17:49 | 0:17:57 | |
Review to be published next week will also be so important to allow | 0:17:57 | 0:17:59 | |
wider economic future. Our welcome for this document is qualified | 0:17:59 | 0:18:03 | |
because we would have liked to have seen more new thinking given the | 0:18:03 | 0:18:07 | |
new concerns about future developments in the Scottish and | 0:18:07 | 0:18:11 | |
world economy. Many of the initiatives are welcome, but they | 0:18:11 | 0:18:15 | |
are ones which have been previously announced. Of course we can | 0:18:15 | 0:18:19 | |
particularly welcome the proposals which were brought forward by | 0:18:19 | 0:18:24 | |
Scottish Labour. It was refreshing and surprising to read George | 0:18:24 | 0:18:27 | |
cavern of all people giving Labour the credit, rightly, for the | 0:18:28 | 0:18:32 | |
initiatives which have been brought forward on modern apprenticeships. | 0:18:32 | 0:18:37 | |
He could have also given us credit for other policies, like the first | 0:18:37 | 0:18:40 | |
troops scheme for first-time buyers, but I'm sure he will get round to | 0:18:41 | 0:18:44 | |
doing that another time. Let's get some reaction to that now | 0:18:44 | 0:18:48 | |
from my two guests this afternoon - Stephen Boyd from the STUC and John | 0:18:48 | 0:18:53 | |
McLaren from the Centre for Public Policy from the Regions. John, what | 0:18:53 | 0:18:59 | |
do you make of Mr swingy's statement, talking about growth, | 0:18:59 | 0:19:05 | |
growth, growth. That was what he was emphasising. He was. That is | 0:19:05 | 0:19:09 | |
what you would expect him to say. He has to put forward a positive | 0:19:09 | 0:19:14 | |
message. In reality, like in many other parts of the UK and countries | 0:19:14 | 0:19:17 | |
around the world, it is difficult to know where that growth will come | 0:19:17 | 0:19:22 | |
from. The world as a whole is still in recession and it could go into | 0:19:22 | 0:19:26 | |
double-dip. It is not clear where the increased consumption is going | 0:19:26 | 0:19:30 | |
to come from all the investment by companies because there are so many | 0:19:30 | 0:19:34 | |
worrying things still happening, whether it is the euro or American | 0:19:34 | 0:19:40 | |
house prices or debt levels of things like that. The best he can | 0:19:40 | 0:19:46 | |
do at the moment is try to keep the Scottish economy in the shape that | 0:19:46 | 0:19:51 | |
it is well situated for when things pick up. That means keeping skill | 0:19:51 | 0:19:55 | |
levels up and probably keeping productive capacity through | 0:19:55 | 0:20:00 | |
infrastructure going. That is the way he is talking about things. Not | 0:20:00 | 0:20:05 | |
exactly in those terms, but that is what he is trying to do. Mr swingy | 0:20:05 | 0:20:09 | |
is doing his sums for next week for his draft budget and he will have | 0:20:09 | 0:20:14 | |
some very difficult questions to face when it comes to cuts. What do | 0:20:14 | 0:20:19 | |
you think are the possibilities of public-sector redundancies? I have | 0:20:19 | 0:20:22 | |
more reason to doubt the Scottish government's good faith at this | 0:20:22 | 0:20:26 | |
present moment to avoid compulsory redundancies in the public sector | 0:20:26 | 0:20:30 | |
and we have seen efforts from Scottish Labour that we have not | 0:20:30 | 0:20:37 | |
seen replicated across the UK. There is a lot to be answered. | 0:20:37 | 0:20:46 | |
There was a report which was not so different from the last strategy. | 0:20:46 | 0:20:54 | |
As John has said, the UK level is such that the Scottish government's | 0:20:54 | 0:21:01 | |
ability to influence economic growth is very, very limited. | 0:21:01 | 0:21:05 | |
Gummer what do you make of that? We were hearing from Richard Baker | 0:21:05 | 0:21:09 | |
talking about the Scottish government always demanding new | 0:21:09 | 0:21:14 | |
powers. What do you make of that when it comes to the Scottish | 0:21:14 | 0:21:20 | |
government actually working within the powers they have? Well, working | 0:21:20 | 0:21:26 | |
within the powers they have, then it is still quite a lot you can do | 0:21:26 | 0:21:30 | |
in terms of retaining skills in terms of large infrastructure | 0:21:30 | 0:21:35 | |
projects, in terms of pushing renewables. If you have more powers, | 0:21:35 | 0:21:39 | |
there is more potential, but it doesn't mean to say it could do an | 0:21:39 | 0:21:43 | |
awful lot. Fiscal and monetary policy, monetary policy is already | 0:21:43 | 0:21:48 | |
about as low as it could be so there is not much more you could do. | 0:21:48 | 0:21:52 | |
Even if they did have greater control, they would struggle in the | 0:21:52 | 0:21:55 | |
same way the UK government is. The only thing is if they had more | 0:21:55 | 0:22:02 | |
borrowing powers, they could deficit fund things, but that is a | 0:22:02 | 0:22:08 | |
risk as well. But it is another way they could go. One of the other | 0:22:08 | 0:22:14 | |
things that is difficult... Growth sectors that they want to push. But | 0:22:14 | 0:22:22 | |
at the minute in Scotland, some of the sectors like tourism and | 0:22:22 | 0:22:25 | |
financial services are not doing well and they haven't been doing | 0:22:25 | 0:22:29 | |
well for a while. I couldn't see anything in the growth strategy | 0:22:29 | 0:22:32 | |
which shows why they should all of a sudden turn around the | 0:22:32 | 0:22:35 | |
performance and start being providers of taking Scotland | 0:22:35 | 0:22:41 | |
forward. There seems to be a lack of analysis on how these sectors, | 0:22:41 | 0:22:44 | |
important as they are, actually work and what is needed to kick- | 0:22:44 | 0:22:49 | |
start them to make them work better. On the apprenticeships, he was | 0:22:49 | 0:22:56 | |
talking a lot about apprenticeships. How far can we put our eggs in that | 0:22:56 | 0:23:01 | |
one basket when it comes to training to try to stimulate growth | 0:23:01 | 0:23:07 | |
in that way? You're not going to stimulate growth through as | 0:23:07 | 0:23:12 | |
apprenticeships, you will prepare the economy for a robust recovery | 0:23:12 | 0:23:17 | |
when it finally appears. Apprenticeships are a very | 0:23:17 | 0:23:20 | |
important route. Anything the Scottish government can do will be | 0:23:20 | 0:23:27 | |
welcome. You do have to bear in mind that youth unemployment in | 0:23:27 | 0:23:32 | |
Scotland is over 20%. We have seen figures today that clearly the | 0:23:32 | 0:23:35 | |
Scottish government are putting a positive spin on, but there is much | 0:23:35 | 0:23:45 | |
0:23:45 | 0:23:50 | ||
in the figures that is a cause for concern. Apprenticeships, yes, do | 0:23:50 | 0:23:55 | |
what you can, but it is not going to bring the economy round. Thank | 0:23:55 | 0:23:57 | |
you. You're watching Politics Scotland | 0:23:57 | 0:24:00 | |
from the BBC. Still to come on the programme: | 0:24:00 | 0:24:02 | |
How to improve education and vocational training for the over- | 0:24:02 | 0:24:09 | |
16s - the under-pressure Education Secretary will set out his thinking. | 0:24:09 | 0:24:12 | |
The Labour leader, Ed Miliband, says the Government is "the byword | 0:24:12 | 0:24:17 | |
for complacency" on unemployment. Meanwhile at a a lively Prime | 0:24:17 | 0:24:19 | |
Minister's Questions, Sir Peter Tapsell, father of the House, put | 0:24:19 | 0:24:22 | |
on a display of self-caricature by asking about the 18th century | 0:24:22 | 0:24:29 | |
before getting to his question about banks. And the Prime Minister | 0:24:29 | 0:24:37 | |
was even asked about oil revenues Today's figures show that | 0:24:37 | 0:24:42 | |
unemployment is up by 80,000. Does the Prime Minister still think the | 0:24:42 | 0:24:48 | |
British economy is out of the danger zone? First of all, these | 0:24:48 | 0:24:51 | |
unemployment figures are disappointing figures. I don't want | 0:24:51 | 0:24:56 | |
to hide from that. Every last job is a tragedy for that family and I | 0:24:56 | 0:24:59 | |
want to do everything I can and this government will do everything | 0:24:59 | 0:25:05 | |
it can to help those people back into work. That is why we have | 0:25:05 | 0:25:09 | |
360,000 apprenticeships starting this year, that is why we have | 0:25:09 | 0:25:13 | |
10,000 extra university places and that is why in the work programme, | 0:25:13 | 0:25:17 | |
we have the biggest welfare to Work programme this country has seen | 0:25:17 | 0:25:21 | |
since the 1930s. But at the same time, let me say to the right | 0:25:21 | 0:25:25 | |
honourable gentleman it is right that we get on top of our debts and | 0:25:25 | 0:25:29 | |
duller deficits. Her today of all days shows the danger of getting | 0:25:29 | 0:25:33 | |
into a position other European countries are in whether whole | 0:25:33 | 0:25:38 | |
credibility is being questioned. and his government on the byword | 0:25:38 | 0:25:43 | |
for complacency in this country on unemployment. Youth unemployment | 0:25:43 | 0:25:48 | |
was falling at the general election and it has risen on his watch. It | 0:25:48 | 0:25:54 | |
is his responsibility. Women's unemployment, too, is at its | 0:25:54 | 0:25:59 | |
highest level since 1988. Mr Speaker, he is making the situation | 0:25:59 | 0:26:05 | |
work. By cutting the childcare tax credit. How does it make sense, | 0:26:05 | 0:26:08 | |
when unemployment is rising for women, to cut the support that | 0:26:08 | 0:26:13 | |
helps them back into work? Let me just remind the right honourable | 0:26:13 | 0:26:19 | |
gentleman unemployment went up by 40% under the last government. | 0:26:19 | 0:26:22 | |
278,000 more young people unemployed when he was sitting in | 0:26:22 | 0:26:27 | |
the Treasury and breaking our banking system and bankrupting our | 0:26:27 | 0:26:31 | |
economy. That is what people remember. When it comes to | 0:26:31 | 0:26:35 | |
childcare, what this government is doing, and we are the first to do | 0:26:35 | 0:26:39 | |
it, is making sure there are 15 hours of free childcare for every | 0:26:39 | 0:26:42 | |
three year-old and four year-old and we have extended that for every | 0:26:42 | 0:26:46 | |
two year-old. We have focussed the tax credit system on the poorest | 0:26:46 | 0:26:53 | |
people in this country. In the 18 San Shroot -- century it was the... | 0:26:53 | 0:27:02 | |
In the 19th century it was the roofless industrialists humanised | 0:27:02 | 0:27:08 | |
by Shaftesbury. In the 20th century it was the trade union leaders | 0:27:08 | 0:27:18 | |
0:27:18 | 0:27:23 | ||
tamed by Lady Thatcher. In the United States... The federal | 0:27:23 | 0:27:30 | |
authorities are prosecuting a wide swathe of the top banks. When is | 0:27:30 | 0:27:35 | |
that going to happen here? I think the serious point the right | 0:27:35 | 0:27:39 | |
honourable gentleman is making his right, we do need to see | 0:27:39 | 0:27:43 | |
responsibility from our bankers. I rode -- I support what John Vickers | 0:27:43 | 0:27:47 | |
have said in terms of reforms. If people break the law, no matter | 0:27:47 | 0:27:50 | |
where they come from all who they are, they should face the | 0:27:50 | 0:27:55 | |
consequences and be punished. poll last week showed 68% of Scots | 0:27:56 | 0:28:01 | |
want oil revenues devolved to Scotland. Does the Prime Minister | 0:28:01 | 0:28:11 | |
0:28:11 | 0:28:19 | ||
agree that 68% of Scots -- Withe Well, if you ask a stupid question, | 0:28:19 | 0:28:24 | |
you will get a stupid answer! The fact is, the whole of the United | 0:28:24 | 0:28:27 | |
Kingdom rightly has invested in the North Sea. The whole of the United | 0:28:27 | 0:28:31 | |
Kingdom should benefit from the North Sea. I think we should do | 0:28:31 | 0:28:35 | |
everything possible to keep the United Kingdom together because we | 0:28:35 | 0:28:40 | |
are stronger, England, Scotland, Northern Ireland and Wales, than we | 0:28:40 | 0:28:42 | |
ever would be separate. Party conference season is almost | 0:28:42 | 0:28:45 | |
upon us for the UK political parties. The TUC have already been | 0:28:45 | 0:28:48 | |
meeting and it's been a challenging time for the Labour leader Ed | 0:28:48 | 0:28:51 | |
Miliband. Let's cross to London and to our correspondent David Porter | 0:28:51 | 0:28:58 | |
who's gauging the mood at Westminster. | 0:28:58 | 0:29:02 | |
At times like this I am reminded to use that old political adage, it is | 0:29:03 | 0:29:07 | |
the economy stupid, and with unemployment rising, the euro | 0:29:07 | 0:29:10 | |
economy in dire straits, and the trade unions are threatening strike | 0:29:10 | 0:29:15 | |
action, there is no shortage of things for the Government, and | 0:29:15 | 0:29:19 | |
indeed ammunition for the opposition parties. No shortage of | 0:29:19 | 0:29:23 | |
things either to discuss. I am joined by two political | 0:29:23 | 0:29:27 | |
commentators. Catherine, let me start with you. Unemployment | 0:29:27 | 0:29:32 | |
figures out today. You know from your time when you were advising | 0:29:32 | 0:29:35 | |
Alistair Darling in the Treasury, when unemployment is rising, it is | 0:29:35 | 0:29:39 | |
never a good time for the Government, is it? No, it is a | 0:29:39 | 0:29:43 | |
terrible time for the Government went to 0.5 million people are | 0:29:43 | 0:29:46 | |
unemployed and they will be very worried about it. George Osborne | 0:29:46 | 0:29:51 | |
will be thinking very hard about how he can rectify the situation. I | 0:29:51 | 0:29:55 | |
don't know if he can do that without changing his plan, because | 0:29:55 | 0:29:59 | |
up until now he has been hell bent on cutting the deficit, which he | 0:29:59 | 0:30:02 | |
certainly has to do, but perhaps he has got to do something else as | 0:30:02 | 0:30:08 | |
well. It was noticeable that today at Prime Minister's Questions that | 0:30:08 | 0:30:12 | |
there was not even one iota of a plan B. You get the impression they | 0:30:12 | 0:30:16 | |
are battening down the hatches on this one. They are trying to | 0:30:16 | 0:30:19 | |
maintain an aura of stability. I'm not sure David Cameron did that | 0:30:19 | 0:30:23 | |
today. He seemed tired after his Moscow trip and had not really | 0:30:23 | 0:30:27 | |
prepared for premises questions, and he seemed to be constantly on | 0:30:27 | 0:30:30 | |
the defensive. It feels that it is very much a government fighting on | 0:30:30 | 0:30:34 | |
every front at the moment, and as a result there is a feeling of | 0:30:34 | 0:30:38 | |
disarray. That is the opposite - they need to create the idea of | 0:30:38 | 0:30:43 | |
stability. Opposite to him was Ed Miliband, who did all right, but I | 0:30:43 | 0:30:47 | |
still don't know myself quite what Labour's economic policy. As long | 0:30:47 | 0:30:53 | |
as that uncertainty prevails, I think David Cameron is OK. You talk | 0:30:53 | 0:30:57 | |
about the trade unions, and you can already see as a newspaperman the | 0:30:57 | 0:31:02 | |
headline writers writing winter of discontent, but how serious do you | 0:31:02 | 0:31:06 | |
see this in political and economic terms? The trade unions are trying | 0:31:06 | 0:31:11 | |
to top this up. Yesterday, Ed Miliband went to the TUC and got | 0:31:11 | 0:31:14 | |
tackled. I think that draws him water was the centre ground if he | 0:31:14 | 0:31:18 | |
is an opposition to the unions, but is it actually going to happen? Are | 0:31:18 | 0:31:22 | |
we going to have a bad winter? Let's hope not. It is a tricky one | 0:31:23 | 0:31:27 | |
for Labour this, isn't it? Ed Miliband can't condone the strikes, | 0:31:27 | 0:31:31 | |
but he knows that is what his union friends want him to do. Yes, it is | 0:31:31 | 0:31:35 | |
very tricky for Ed Miliband. He will not want them to strike. He | 0:31:35 | 0:31:42 | |
will think that they will be taking the moral high ground away from him | 0:31:42 | 0:31:45 | |
because I think the economic figures are not going to get any | 0:31:45 | 0:31:50 | |
better. We are going to get higher unemployment. Ed Miliband will want | 0:31:50 | 0:31:55 | |
to capitalise on these figures if the trade unions persist in having | 0:31:55 | 0:31:58 | |
a strike, and it is believed that they will, then that will just | 0:31:58 | 0:32:03 | |
detract from his positioning. are about to come to the party | 0:32:03 | 0:32:07 | |
political conferences, when the Westminster decant to various | 0:32:07 | 0:32:10 | |
cities throughout the UK. It will be one of those areas where there | 0:32:10 | 0:32:15 | |
will be mixed fortunes for all of the main parties, I went there? | 0:32:15 | 0:32:21 | |
Miliband has to overcome deep held scepticism within his own party | 0:32:21 | 0:32:25 | |
that he could be the next prime minister. I think David Cameron has | 0:32:25 | 0:32:30 | |
to reassure the Tories before he reassures anyone else that he is on | 0:32:30 | 0:32:33 | |
course. I think a lot of Tories in Parliament are jittery because they | 0:32:33 | 0:32:37 | |
don't know what he is standing for. And Nick Clegg has got to convince | 0:32:37 | 0:32:41 | |
the Lib Dems that they have not sold out, that they are not their | 0:32:41 | 0:32:45 | |
letting the Tories run riot in the country. It is a bit of a false | 0:32:45 | 0:32:49 | |
world when we all go to conference... It is absolutely | 0:32:49 | 0:32:54 | |
bonkers. The party conferences are mad, particularly this year. It is | 0:32:55 | 0:32:59 | |
going to be most peculiar. But we are all going to be, as a political | 0:32:59 | 0:33:05 | |
journalistic class, we are going to be obsessing about these tensions. | 0:33:05 | 0:33:09 | |
Are they going to have any real effect on the economy and on | 0:33:09 | 0:33:13 | |
Britain's prospects? I suspect not. For a question briefly to both of | 0:33:13 | 0:33:21 | |
you. Party conferences aside, whatever happens, British economy - | 0:33:21 | 0:33:26 | |
- the British economy is in for hard graft, isn't it? I think it is. | 0:33:26 | 0:33:31 | |
There is any so much that David Cameron and George Osborne can do. | 0:33:31 | 0:33:34 | |
Events -- it matters they much what happens in Europe and America. In a | 0:33:34 | 0:33:39 | |
way, they are bobbing along in the wake of these catastrophic events | 0:33:39 | 0:33:42 | |
that are happening in Europe and America, and they should not be | 0:33:42 | 0:33:46 | |
underestimated. It strikes me that we are still living in a dream and. | 0:33:46 | 0:33:50 | |
We don't quite understand the effect that the changes are going | 0:33:50 | 0:33:54 | |
to have, the reductions in public spending. I think a lot of people | 0:33:54 | 0:33:58 | |
have not quite grasped what is about to happen. Thank you both for | 0:33:58 | 0:34:04 | |
joining me. We will be packing up shortly to go to that of bonkers | 0:34:04 | 0:34:09 | |
world, better known as the party conferences. David, thank you for | 0:34:09 | 0:34:11 | |
that. Back to Holyrood now, and a major | 0:34:11 | 0:34:14 | |
announcement by the Education Secretary Michael Russell on | 0:34:14 | 0:34:24 | |
0:34:24 | 0:34:24 | ||
Apology for the loss of subtitles for 81 seconds | 0:34:24 | 0:35:45 | |
I think a lot of the things around education and training are up | 0:35:45 | 0:35:50 | |
complicated. We need to simplify this. We can deliver that bed and | 0:35:50 | 0:35:53 | |
an income and that is important because we want to make sure that | 0:35:53 | 0:35:57 | |
young people are not deterred from study. A lot of the noise | 0:35:57 | 0:36:01 | |
surrounding further and higher education is deterring young people | 0:36:01 | 0:36:05 | |
because secure these ludicrous figures. We are trying to focus | 0:36:05 | 0:36:08 | |
people on the opportunities in front of them and the opportunities | 0:36:08 | 0:36:14 | |
that leads to. We will get onto those charges but staying with | 0:36:14 | 0:36:19 | |
colleges, you talk about mergers. What would that mean in practice? | 0:36:19 | 0:36:23 | |
They will undoubtedly been job losses. It will mean greater | 0:36:23 | 0:36:27 | |
efficiency in delivering. We have talked in the paper about a | 0:36:27 | 0:36:32 | |
regional model and we need to move to that model to make sure resource | 0:36:32 | 0:36:39 | |
goes into the frontline and we encourage colleges to have a policy | 0:36:39 | 0:36:43 | |
of no compulsory redundancies. So we have challenges but I am sure we | 0:36:43 | 0:36:51 | |
can meet them with imagination. Let's turn to those charges. Would | 0:36:51 | 0:36:56 | |
you agree with the First Minister? He said, would you prefer a more | 0:36:56 | 0:37:01 | |
moderate approach? Yes, he is right. We have not seen the conclusion of | 0:37:01 | 0:37:08 | |
this process. We have not yet had half of the university's... We have | 0:37:08 | 0:37:14 | |
had a significant ones. It seems to be running out of control? We have | 0:37:14 | 0:37:19 | |
had the ones who were always going to be at the top end. We have had | 0:37:19 | 0:37:25 | |
less than half of them. Let us see what the springs at the end, the -- | 0:37:25 | 0:37:30 | |
expectations of the technical working group, we have to see what | 0:37:30 | 0:37:34 | |
happens and the First Minister is right to express his disappointment | 0:37:34 | 0:37:37 | |
and we share that. We have been looking at unemployment in the | 0:37:37 | 0:37:45 | |
programme. This has been a very poor area for the SNP. Labour | 0:37:45 | 0:37:50 | |
claimed it has increased by 89% since the SNP to power. Will these | 0:37:50 | 0:37:57 | |
measures really address the problem? Accuracy is all, | 0:37:57 | 0:38:04 | |
particularly for journalists. Today is a good news story, youth | 0:38:04 | 0:38:07 | |
unemployment actually is better than we have done. Better than | 0:38:07 | 0:38:12 | |
governments have done, particularly well in delivering training. When | 0:38:12 | 0:38:16 | |
Labour quote figures, it is best to check them and I find they are | 0:38:16 | 0:38:22 | |
usually not accurate. Thank you very much for joining us. Let's get | 0:38:22 | 0:38:28 | |
accurate analysis from our guests. John McLaren and Stephen Boyd from | 0:38:28 | 0:38:35 | |
the STUC. Stephen, I will ask you about youth unemployment. He did | 0:38:35 | 0:38:40 | |
not think the figures from Labour were correct. Is this a problem | 0:38:40 | 0:38:45 | |
that is concerning for the prop -- the country? Absolutely. The worst | 0:38:45 | 0:38:49 | |
thing that can happen to a person of any age is to spend an extended | 0:38:49 | 0:38:55 | |
period of time unemployed. It has a massive impact on their future life. | 0:38:55 | 0:39:01 | |
It is very expensive to the country. In a social sense and economic. We | 0:39:01 | 0:39:05 | |
should be very concerned about this and I will not get involved in any | 0:39:05 | 0:39:11 | |
political debate about figures. It is far too high in Scotland and | 0:39:11 | 0:39:16 | |
that has increased significantly over the last couple of years. | 0:39:16 | 0:39:20 | |
have focused on the economy and employment. We hear about this in | 0:39:20 | 0:39:26 | |
terms of the world economy and the French banks and the credit rating. | 0:39:26 | 0:39:30 | |
There are meetings in Brussels to discuss the Greek debt. In terms of | 0:39:30 | 0:39:39 | |
the global economy, or be on the brink of an abyss? -- are we. | 0:39:39 | 0:39:47 | |
difficult to tell how it that it could get. I saw in 2008 when it | 0:39:47 | 0:39:53 | |
really got bad it was not predicted, we thought 2007 was a turning point. | 0:39:53 | 0:39:57 | |
Any sort of catastrophic change will probably come out of there | 0:39:57 | 0:40:01 | |
fairly clear sky but what is more worrying is it is difficult to see | 0:40:01 | 0:40:06 | |
were any upturn welcome from. I cannot see it the European | 0:40:06 | 0:40:12 | |
situation and Greece being sorted out in any way that they want. Only | 0:40:12 | 0:40:15 | |
in a way that they do not want. With something bad happening to | 0:40:15 | 0:40:23 | |
Greece. Nobody wants that so it will keep on going for months and | 0:40:23 | 0:40:28 | |
years and that means the uncertainty keeps on going. It is | 0:40:28 | 0:40:35 | |
difficult to build confidence. But in America, they are not really | 0:40:35 | 0:40:39 | |
planning, never mind in short-term, in the long term, to balance the | 0:40:39 | 0:40:43 | |
budget and house prices are still falling so there is a lot of | 0:40:43 | 0:40:47 | |
negative still going on. And the markets are not confident they have | 0:40:47 | 0:40:52 | |
this sort it out. Until that changes, and we can get confidence | 0:40:53 | 0:41:00 | |
that we know what will happen, there will remain a lot of sluggish | 0:41:00 | 0:41:03 | |
growth and even if things get better, I do not think growth will | 0:41:03 | 0:41:08 | |
rocket. It will be a prelude to another fall. We are going in for | 0:41:08 | 0:41:17 | |
more than one decade of slow growth. We can see tutors and the market, | 0:41:17 | 0:41:21 | |
civil unrest with the England riots and that good old cliche of the | 0:41:22 | 0:41:29 | |
winter of discontent. The public sector workers going on strike. How | 0:41:29 | 0:41:35 | |
bad could these strikes be in Britain? It would be irresponsible | 0:41:35 | 0:41:39 | |
to speculate. Despite everything that has been said, negotiations | 0:41:39 | 0:41:44 | |
will continue so it isn't inevitable these strikes will ochre | 0:41:44 | 0:41:47 | |
and it is fair to say that there is a wave of anger among ordinary | 0:41:47 | 0:41:53 | |
trade union members that is very high at this moment. They have seen | 0:41:53 | 0:41:57 | |
wages falling significantly and job prospects following and pensions | 0:41:57 | 0:42:01 | |
attacked and they are being encouraged to go see it by Mr | 0:42:01 | 0:42:06 | |
Miliband and others and the indexation of pensions was not | 0:42:06 | 0:42:11 | |
changed without any negotiation. Quite how this will transpire | 0:42:11 | 0:42:16 | |
during the course of the winter is difficult to say. It is possible we | 0:42:16 | 0:42:22 | |
will see strike action and it might not be as bad as we feel. We have | 0:42:22 | 0:42:25 | |
seen leaders calling for strikes not to happen, including Ed | 0:42:25 | 0:42:30 | |
Miliband. How far has has been promoted by the trade union leaders | 0:42:30 | 0:42:35 | |
themselves? The BBC website has a comment from a reader who said the | 0:42:35 | 0:42:41 | |
main civil service trade union is dominated by a left wing group. How | 0:42:41 | 0:42:45 | |
much is being governed from the top and do the workers really want to | 0:42:45 | 0:42:52 | |
be on strike? It is interesting. We have seen massive changes to that | 0:42:52 | 0:42:57 | |
trade union legislation and the simple fact is, trade union leaders | 0:42:57 | 0:43:01 | |
cannot take the unions out on strike in the win over told they | 0:43:01 | 0:43:10 | |
used to do. -- in the way we were told. It happens in an informal -- | 0:43:10 | 0:43:18 | |
formal and secret ballot. And leaders simply are not able to do | 0:43:18 | 0:43:23 | |
this in the way described by newspapers. The PCAS should point | 0:43:23 | 0:43:29 | |
that out. The anger amongst members is understandable. They are | 0:43:29 | 0:43:32 | |
effectively organised and if encouraged to band it, there is | 0:43:32 | 0:43:38 |