Questions · Peter Peacock

23 Jun 2008 · Written Question

To ask the Scottish Executive what discussions have been held with individual local authorities about their willingness to issue bonds for the financing of capital spending outwith the statutory purposes for which they are responsible and how each local authority responded.

Answer · John Swinney: An early activity for the Scottish Futures Trust, when it is set up this summer, will be to enter into discussions with local authorities about the development of a local authority bond issue.

23 Jun 2008 · Written Question

To ask the Scottish Executive what discussions have been held with individual local authorities about their willingness to issue bonds for the financing of capital spending outwith their own local authority area.

Answer · John Swinney: An early activity for the Scottish Futures Trust, when it is set up this summer, will be to enter into discussions with local authorities about the development of a local authority bond issue.

23 Jun 2008 · Written Question

To ask the Scottish Executive whether it envisages that (a) each local authority will issue bonds to finance capital spending, (b) there will be a single local authority bond or (c) both scenarios will arise.

Answer · John Swinney: Local authorities are responsible for determining their borrowing requirements and deciding what offers best value to them. The Government will work with local authorities through the Scottish Futures Trust to support this power.

23 Jun 2008 · Written Question

To ask the Scottish Executive how much bond finance it will allow local authorities to raise beyond sums that they can currently raise to finance capital spending.

Answer · John Swinney: A local authority is under a statutory duty to determine and keep under review the maximum amount it can afford to allocate to capital expenditure. This requires a local authority to determine the maximum amount it can afford to borrow, irrespective of the ty…

23 Jun 2008 · Written Question

To ask the Scottish Executive whether any finance raised by local authority bonds is in any way additional to the funds that local authorities can currently raise for the financing of capital spending.

Answer · John Swinney: A local authority is under a statutory duty to determine and keep under review the maximum amount it can afford to allocate to capital expenditure. This requires a local authority to determine the maximum amount it can afford to borrow, irrespective of the ty…

23 Jun 2008 · Written Question

To ask the Scottish Executive whether any finance raised by local authority bonds will be additional to any finance raised under the local authority prudential borrowing code or would displace other funds that could have been raised under the code but by means other than the issuing of bonds.

Answer · John Swinney: A local authority is under a statutory duty to determine and keep under review the maximum amount it can afford to allocate to capital expenditure. This requires a local authority to determine the maximum amount it can afford to borrow, irrespective of the ty…

23 Jun 2008 · Written Question

To ask the Scottish Executive whether the issuing of bonds to finance capital spending falls within or outwith the terms of the code for prudential borrowing.

Answer · John Swinney: The Local Government in Scotland Act 2003 places a local authority under a duty to determine the maximum amount which it can afford to allocate to capital expenditure. Regulations issued in 2004 require a local authority to have regard to The Prudential Code …

23 Jun 2008 · Written Question

To ask the Scottish Executive whether it proposes to impose any controls on the freedom of local authorities to issue bonds to finance capital spending.

Answer · John Swinney: A local authority is under a statutory duty to determine and keep under review the maximum amount it can afford to allocate to capital expenditure. This requires a local authority to determine the maximum amount it can afford to borrow, irrespective of the ty…

23 Jun 2008 · Written Question

To ask the Scottish Executive which local authority personnel will decide the rate of return to be offered on any bonds issued for the purpose of financing capital spending.

Answer · John Swinney: This will be a matter for local authorities as corporate bodies.

23 Jun 2008 · Written Question

To ask the Scottish Executive what form of financial guarantees local authorities will be required to provide as security for any bonds that they may issue to finance capital spending.

Answer · John Swinney: The Local Government (Scotland) Act 1975 requires that all monies borrowed under any statutory borrowing power are secured upon the whole funds, rates and revenues of the authority and not otherwise, and all monies borrowed by the authority by whatever method…

23 Jun 2008 · Written Question

To ask the Scottish Executive what authorisations or permissions local authorities require, and from which regulators, in order to issue bonds to finance capital spending.

Answer · John Swinney: Local authorities have a statutory power to borrow money through the issue of bonds by virtue of the provisions contained within the Local Government (Scotland) Act 1975.

23 Jun 2008 · Written Question

To ask the Scottish Executive what new statutory powers it envisages giving to local authorities to raise finance for capital spending.

Answer · John Swinney: Local authorities have not indicated to the Scottish Government that the existing statutory powers are inadequate for their needs. As such no new statutory powers are envisaged.

23 Jun 2008 · Written Question

To ask the Scottish Executive what differences in administration would be involved in local authorities issuing bonds to finance capital works compared with that for borrowing through the Public Works Loan Board or other available forms of borrowing.

Answer · John Swinney: Local authorities are responsible for adopting treasury management policies and practices to ensure effective treasury management arrangements that comply with statutory or other requirements that regulate types of borrowing. It is therefore for each local au…

23 Jun 2008 · Written Question

To ask the Scottish Executive what financial advantage local authorities gain from raising bond finance over finance raised through other forms of borrowing available beyond the Public Works Loan Board.

Answer · John Swinney: Local authorities have a number of borrowing options available to them. It will be for a local authority, or a group of authorities, to determine whether there is any financial advantage from raising money through bonds over finance raised through forms of bo…

23 Jun 2008 · Written Question

To ask the Scottish Executive what financial advantage local authorities gain from raising bond finance over finance raised through the Public Works Loan Board.

Answer · John Swinney: Local authorities have a number of borrowing options available to them. It will be for a local authority, or a group of authorities, to determine whether there is any financial advantage from raising money through bonds over finance raised through the Public …

23 Jun 2008 · Written Question

To ask the Scottish Executive what financial criteria it believes would have to be met in order for local authority bonds for new capital spending to be a competitive home for investment in an open marketplace for investment finance.

Answer · John Swinney: The ability of a local authority to support such borrowing would be a major factor, as would the interest rate offered.

23 Jun 2008 · Written Question

To ask the Scottish Executive whether it considers that local authorities have generally favoured bond finance as a means of raising finance for capital spending and what the reasons are for its position on the matter.

Answer · John Swinney: The majority of local authority borrowing outstanding at 31 March 2007 was with the Public Works Loan Board.

23 Jun 2008 · Written Question

Answer · John Swinney: Information on the type of borrowing undertaken to finance capital spending is not held centrally.

23 Jun 2008 · Written Question

To ask the Scottish Executive how much bond finance has been raised by each local authority in each of the last 10 financial years.

Answer · John Swinney: The information requested is not held centrally.

23 Jun 2008 · Written Question

To ask the Scottish Executive whether the position it has adopted with the UK Government over a range of issues will affect the influence it can exert on UK Government policy within the United Kingdom.

Answer · Linda Fabiani: The Scottish Government will always aim to act in the best interests of the Scottish people, and that includes the way it conducts relations with other administrations. We argued successfully for the re-establishment of the Joint Ministerial Committee (JMC), …

23 Jun 2008 · Written Question

To ask the Scottish Executive what discussions took place between its special advisers and those of UK ministers regarding the continuation of the EU minimum import price arrangements that have protected Scottish salmon farming from the cheap importation of Norwegian farmed salmon.

Answer · Michael Russell: No discussions took place between its special advisers and those of UK ministers regarding the continuation of the minimum import price.

23 Jun 2008 · Written Question

To ask the Scottish Executive what discussions it has had with the Norwegian Government regarding the continuation of minimum import price arrangements which have protected Scottish salmon farming from the cheap importation of Norwegian farmed salmon; what position it set out to the Norwegian Government; what attitude…

Answer · Michael Russell: The Scottish Government has proposed that Scotland and Norway explore joint working and closer co-operation on a range of issues of joint concern in aquaculture. I met the Norwegian fisheries minister in Oslo on 13 June 2008 to discuss these matters after sev…

23 Jun 2008 · Written Question

To ask the Scottish Executive what discussions Scottish ministers and officials have had with EU member states, and with which states, regarding the continuation of minimum import price arrangements that have protected Scottish salmon farming from the cheap importation of Norwegian farmed salmon.

Answer · Michael Russell: I met the deputy DG Trade in Brussels on 4 February 2008 and the DG Trade in Brussels on the 23 April 2008 specifically to discuss the matter. The Scottish Government, together with the UK and Ireland, circulated a joint paper to all member states on…

23 Jun 2008 · Written Question

To ask the Scottish Executive what discussions Scottish ministers and officials have had with Irish ministers and officials regarding the continuation of minimum import price arrangements that have protected Scottish salmon farming from the cheap importation of Norwegian farmed salmon.

Answer · Michael Russell: The Scottish Government has had a continuing dialogue with Irish ministers and officials throughout the period when the minimum import price has remained in place. Following the announcement of the commission’s interim review in March 2008, Scotland,…

23 Jun 2008 · Written Question

To ask the Scottish Executive what discussions Scottish ministers have had with the European Commission regarding the continuation of minimum import price arrangements that have protected Scottish salmon farming from the cheap importation of Norwegian farmed salmon.

Answer · Richard Lochhead: Scottish ministers, notably the First Minister and the Minister for Environment, have remained in close contact with the European Commission to support the need for the minimum import price, to provide evidence that there is a likelihood of a recurrence of du…

23 Jun 2008 · Written Question

To ask the Scottish Executive how often Scottish ministers have met UK ministers to discuss the continuation of minimum import price arrangements that have protected Scottish salmon farming from the cheap importation of Norwegian farmed salmon.

Answer · Michael Russell: Scottish ministers undertook a number of discussions about the continuation of the minimum import price arrangements with UK ministers by telephone and by e-mail, although no face-to-face meetings occurred.

23 Jun 2008 · Written Question

To ask the Scottish Executive what discussions it has had with the UK Government on securing a continuation of the EU minimum import price arrangements that have protected Scottish salmon farming from the cheap importation of Norwegian farmed salmon and when such discussions took place.

Answer · Michael Russell: The Scottish Government has had a continuing dialogue with the UK Government throughout the interim review from the time it was announced on 21 April 2007. This was most intensive from mid-February 2008 onwards when there was frequent e-mail and phone-call c…

23 Jun 2008 · Written Question

To ask the Scottish Executive whether it supports the continuation of EU minimum import price arrangements that have protected Scottish salmon farming from the cheap importation of Norwegian farmed salmon.

Answer · Michael Russell: The Scottish Government fully supported the continuation of the minimum import price (MIP) and did not agree that it should be repealed. It believes that the MIP has contributed a degree of stability in an otherwise volatile market place.

23 Jun 2008 · Written Question

To ask the Scottish Executive what action it has taken as a result of advice on the implications of ending minimum import price arrangements and when it took such action.

Answer · Michael Russell: Following the receipt of economic advice on the implications of the repeal of the minimum import price, the Scottish Executive in conjunction with the UK Government continued to lobby the European Commission at the highest level, the need for continuation of …

23 Jun 2008 · Written Question

To ask the Scottish Executive what advice it has received about the implications for Scottish jobs of losing the minimum import price arrangements relating to Norwegian salmon; when it received any such advice, and whether it will publish it.

Answer · Michael Russell: The Scottish Executive commissioned internal economic advice in January 2008. This advice was then incorporated into a joint paper from Scotland and Ireland which was submitted to the European Commission as evidence in the interim review on 25 February 2008. …