Dundee SNP

Dundee West MSP Joe FitzPatrick today responded to comments by Labour Leader Ian Gray in today’s Courier by accusing Labour of being ‘in complete denial’ over their responsibility on the economy.

SNP MSP and member of the Scottish Parliament’s Finance Committee, Joe FitzPatrick today said: “I was disappointed to read Mr Gray’s call for the SNP Government to be ‘honest’ about forthcoming cuts in the public sector.

“Mr Gray accuses the Scottish Government of ‘mismanaging the economy even before the recession began’. In fact, he is prepared to blame everyone but Labour for the present situation.

“He hopes the public will forget that Labour were in power for the past thirteen years, with the recession beginning to bite during the last two.

“You simply cannot trust a word which Iain Gray says. Alistair Darling, who until only 11 weeks ago was the Chancellor, admitted that any public spending cuts by Labour would be “tougher and deeper” than those implemented by Margaret Thatcher.
 

“Andy Kerr, Mr Gray’s own Finance spokesman in the Scottish Parliament, called for the Scottish Government to implement the cuts more quickly.

“Iain Gray has avoided saying whether he agreed with the Chancellor that Labour’s cuts would be ‘tougher and deeper’ than Margaret Thatcher’s. Nor did he say whether Andy Kerr was right to call for even quicker cuts in Scotland.

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“Labour now think they can mislead the public that they have no responsibility for any of the cuts!
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”Iain Gray is playing fantasy politics and his entire strategy is to scaremonger and blame everyone but Labour. 

“Frankly, the public will not be fooled. It’s time for Iain Gray to stop playing the blame game so that we can move on and co-operate on finding a way forward for Scotland.”

SNP MP and Member of the Treasury Select Committee Stewart Hosie has said that, as they return to profit, the banks which benefitted from public subsidy have a duty to lend to Scottish business and ensure Scotland’s recovery continues.

Mr Hosie’s call comes as the ‘State of the Economy – August 2010’ analysis produced by the Scottish Government found that the recession in Scotland was shorter and sharper that it was in the rest of the UK but weak bank lending was still hitting SMEs hard.  

It is expected that several of the banks which benefited from public subsidies will announce return to profit this week.

Commenting, Mr Hosie said:

“Scotland went into recession a quarter later than the United Kingdom economy, and the rate of decline over the whole period was less north of the Border than it was across the UK.  The Scottish economy is turning a corner but weak bank lending is a real cause for concern.

“While banks are understandably cautious about lending money, this concern must be balanced with the need to support growth in the economy.

“As the banks which have benefited from taxpayers’ money announce their return to profit this week, more than ever they have a duty to make finance available to Scottish businesses.”

Dundee’s SNP politicians today reacted to an economic analysis produced for the Scottish Government which revealed that the UK Government Emergency Budget introduced by the Con / Lib Dem Coalition at Westminster is already impacting most on the vulnerable and least well off.

Dundee East MP Stewart Hosie, a member of the Treasury Select Committee, said: “This Emergency Budget from the Con-Lib Dem Coalition will be very damaging to those least well off in Scotland.

“The rise in the standard rate of VAT from 17.5% to 20% which will come into effect from January 2011 will cost the average Scottish household £380 a year. And it will have a disproportionate impact on poor households.

“About 1.6 million in people in Scotland are likely to have income rises suppressed as a result of the adoption of the consumer price index (CPI) instead of the retail price index (RPI) as the basis for calculating increases in welfare payments.”

The analysis shows that the Emergency Budget will have an impact on those receiving benefits, a fact which deeply concerned Dundee East MSP Shona Robison.

Commenting on the impact on benefit payments, Shona Robison said: “Around 621,000 families in Scotland will have their income cut as a result of the three-year freeze in child benefit, and again the biggest impact will be on the least well off.

“Households with total income above £25,000 will see their benefit entitlement cut from April 2012 as a result of the combined effect of freezing child benefit and restricting child tax credits.

“In Dundee, across both Holyrood constituencies, there are 11,220 people in receipt of DLA at either the higher, middle or lower rates.

“Since an objective medical assessment will be introduced for Disability Living Allowance from 2013-14, it is estimated that up to 10,700 people in Scotland may lose their entitlement to DLA in 2013-14, rising to 31,700 in the following year. This is bound to have a big impact in Dundee.

“It is vulnerable households and families across Scotland which are being asked to bear the brunt of these Tory/Lib Dem cuts – and there are more cuts to come. This is only the start of the Westminster cuts. This analysis produced for the Scottish Government shows the extent to which the least well off people in Scotland are already being hit by these cuts from the UK Government.”

Commenting on the damaging effects of the Budget overall, Dundee West MSP Joe FitzPatrick said:

“This report on the impact of the cuts coming from the initial Emergency Budget are, unfortunately, just the start. They underline the case for Scotland being given responsibility for its own finances.

“The case for economic and financial responsibility is gaining more support all the time, with some of Scotland’s leading business people and trade union figures in favour. 

“Giving Scotland’s Parliament and Government the economic and financial tools would enable us to make the right choices to grow our economy and protect the poorest in Scotland.”

“Scotland needs the powers of financial responsibility so that we can boost growth in the Scottish economy – generating higher tax receipts to invest in the public services we all value – as the only alternative to the entirely dismal prospects from Westminster.

“That is the debate in Scotland – and that is why the centre of gravity in Scottish politics continues to shift towards independence.”

Dundee East MP Stewart Hosie, SNP Treasury Spokesman at Westminster, has expressed concern that a proposed rise in Insurance Premium Tax (IPT) in the forthcoming Finance Bill might lead to businesses and individuals reducing insurance cover and taking greater risks.

Speaking in a debate on the subject last week, the MP raised the concerns of the insurance industry that the tax rise might act as a deterrent to those who sensibly want to insure themselves against risks of injury or loss, and might put people off taking out cover for their homes, cars, holidays and trips abroad.

It might also lead to job losses in the insurance industry, much of which is located in Scotland.

Stewart Hosie said: “The announcement of the increase in IPT in the Budget did not immediately cause a huge stir but since then, research seems to indicate that as a result of the recession, people are reducing overall levels of insurance cover because of the cost of the premiums.

“We already know that around 1.2 million people, about one in twenty motorists, regularly drive uninsured.

“This can lead to situations where insured drivers lose out and are unable to make claims in the event of an accident and ultimately it means the public pays for those who evade insurance cover. 

“The last thing people need in tight financial circumstances is higher insurance premiums but the temptation is there if money is tight, to take a chance.

“People might be tempted to cut corners and opt for the ‘free’ travel insurance offered by credit card companies, which would leave them without the necessary levels of cover in certain circumstances.

“The government need to take soundings from the insurance industry and other responsible bodies on the likely consequences of this tax rise on individuals, families, consumers and the sector.

“The Insurance industry is massively important to Scotland, where it is a major employer and I am concerned at the effect of this tax rise on its revenue and profitability.

“It is vitally important that incentives are given to the public and to business to continue to take full insurance cover and by increasing IPT from 5% to 6%, I fear that this may have the unintended consequence of underinsurance or even a lack of insurance protection and a rise in the number of uninsured motorists on our roads.”

Dundee politicians say the city could be building offshore wind turbines as one of three regional offshore energy manufacturing ‘clusters’ built around key port locations.

The politicians were responding to Stage 2 of the National Renewables Infrastructure Plan (N-RIP) published today by Scottish Enterprise and Highlands & Islands Enterprise.

Dundee East MSP Shona Robison said: “This latest report recommends that the sites, including Dundee, are developed into three regional manufacturing clusters that would support the fabrication of offshore wind components and tap into the wealth of subsea expertise that already exists in Scotland.

“If we can get the city established in constructing renewables sector hardware, then that work, and its associated secondary industry of maintenance over the next decade, will be truly vast.

“We are absolutely committed to Dundee being at the heart of the Scottish renewables industry. Apart from the great benefits which Dundee will derive in terms of jobs, society will benefit from lower carbon emissions as we move to greener energy. ”

Joe FitzPatrick, MSP for Dundee West and Vice-Convenor of the Cross Party Group on Renewable Energy at the Scottish Parliament, said: “The report states that a total private and public investment of £223 million would assist the creation of 11 offshore wind manufacturing sites in three regional clusters.

“Dundee Renewables, the high-powered group formed between the key players in the public and private sectors locally, is working hard to ensure that Dundee grabs a significant share of the new industry.

“Being a deep-water port, Dundee has many physical and geographical advantages and is one of the longest established import and export hubs for bulk products in Scotland.” 

“Taken together these 11 sites could support the creation of up to 5,180 jobs and an annual economic impact of up to £294.5 million each year.” 

Commenting on today’s announcement, Dundee East MP Stewart Hosie said: “Unlocking the potential of these sites will require investment from both the private and public sector.

“It is important that the Treasury urgently releases Scotland’s £185 million Fossil Fuel Levy to allow that to be invested to further develop the Scottish renewables industry.”

Dundee West MSP Joe FitzPatrick today welcomed a reply he has received from the Chancellor George Osborne which announces that the UK government will consult with businesses in the autumn to review the support which R&D tax credits provide for innovation.

In his letter to the Chancellor two months ago, Joe FitzPatrick warned of the danger that the Dundee-based industry would lose out to countries such as Canada and France who have boosted their computer games industry through introducing tax relief on research & development work.

The Chancellor, George Osborne, announced that there were no funds to introduce Tax Breaks for the computer Games industry and the MSP – and the games industry – are fearful of the impact on the Dundee-based industry.

The reply, from David Gauke, Minister at HM Treasury, states that he “recognises, that, as outlined in your letter, there has been a relative decline in the tax competitiveness of the UK.

“The UK’s R&D tax credit schemes provide an internationally competitive tax regime for R&D activity, providing nearly £800 million of relief and supporting around 7,500 innovative companies each year, including companies in the video games industry.

“To ensure the continued effectiveness of the schemes, the Government will consult with business in autumn 2010 to review the taxation of intellectual property, the support R&D tax credits provide for innovation and the proposals of the Dyson review. We would welcome any representations on the schemes as part of this process.”

Joe FitzPatrick said today: “I welcome this announcement from the Chancellor which is a recognition that, although he did not introduce tax relief in the emergency Budget, he is willing to review that decision.

“I will be contacting leading industry figures and major stakeholders such as TIGA to ensure the strongest possible representations can be made to this review.  

“The dropping of industry support doesn’t make sense as any tax relief would be outweighed by increased growth in the sector.  A recent report by the games industry body TIGA has shown that over five years the tax breaks would cost an estimated £192 million but would deliver £415 million in tax receipts.

“Reports by the Computer games industry show that Dundee could lose 200 jobs over the next 5 years as a result of a failure to implement tax breaks, whereas introducing tax incentives would create 350 Graduate level Jobs and £45 million of extra investment in Dundee.

“I am still awaiting replies on the subject of tax breaks, from Jeremy Hunt, Secretary of State at the Department for Culture, Media & Sport and Vince Cable, Secretary of State for Business, Innovation & Skills – and am writing today to chase up these replies.”

Dr Richard Wilson, CEO of TIGA, said: “The Treasury’s decision to drop Games Tax Relief in the June Budget was a mistake.

“The UK video games industry is export oriented, employs highly skilled people and is low carbon in output. It is an industry of the future. With the right Government support, the UK can be a world leader in video game development.

“TIGA will of course respond to the Government’s consultation document on reform of R&D tax credits. We will seek to make them as beneficial as possible for the games industry. The fact remains, only a dedicated sector specific tax break for games production will put the UK on a level playing field with its overseas competitors.”

Dundee East MP and Member of the Treasury Select Committee Stewart Hosie has welcomed the announcement of a repayment scheme for money lost in the Equitable Life collapse but warned that, after a decade of dither and delay over compensation, this progress for policy holders must be maintained.

Commenting, Mr Hosie said: “Equitable Life policyholders have been badly let down – first by regulatory failure and then by a decade of dither and delay by the Labour Government over a compensation scheme.

“While the commencement of the scheme announced today is welcome, there is still a long way to go to compensate those who invested with Equitable Life.

“It’s essential the Conservative-Liberal coalition work for a speedy and fair resolution to this sorry saga which has dragged on for far too long.”

More than £66,000 could be coming to Dundee youth groups in the fourth round of funding for youth projects from the CashBack for Communities scheme which is now open for applications.

Justice Secretary Kenny MacAskill announced that a £2.5 million pot of cash created from the proceeds of crime will be administered by YouthLink Scotland, the national youth work agency.

The fund has been allocated for distribution over the next two years to local youth projects in the form of grants up to a maximum of £30,000.

Dundee West MSP Joe FitzPatrick today welcomed the funding announcement and urged local community organisations to get involved and to apply for funding.

Across Scotland, 509 projects, have so far benefited from CashBack for Communities funding through YouthLink Scotland.

The local MSP said: “CashBack for Communities delivers on our ambitions for young people but it also benefits the wider community, whether that’s getting kids off street corners, getting them involved in things like volunteering or offering them the chance to give something back to their communities.

“The benefits to the young people are clear – and the benefits are felt in the wider community. Many groups in Dundee have already benefitted from previous funding rounds, and this has led to new diversionary activity opportunities including skateboarding, basketball, hockey, street football and others.

“To date £19.5 million has been invested in a range of free activities for young people in Scotland and every penny of it is money well spent.”

“By investing in local communities to provide free diversionary activities, we are able to show our young people that there is much more to life than offending or getting out of your heads on drink or drugs.”

The fourth phase of the YouthLink Scotland administered fund is now open and full details of how to apply can be found on the YouthLink Scotland website: http://www.youthlinkscotland.org

Picture shows Shona Robison and Joe FitzPatrick with Dovetail MD Gavin Strachan today outside the factory.

Dundee’s two constituency MSPs today visited Dovetail Enterprises on Dunsinane Avenue to meet Managing Director Gavin Strachan and to hear of the company’s diversification to meet the new challenges of the downturn in the economy.

Dovetail, created in 1993, employs nearly 60 workers, a high proportion of whom have disabilities, and occupy a 100,000 square foot manufacturing facility in the Dunsinane industrial estate.

The MSPs heard about the company’s recent successes in providing doors and door-set products for the hotel market as well as their continuing success in manufacturing and installing high quality furniture products for contract and retail clients across Scotland.

Speaking after the meeting, the MSPs said: “Dovetail is a very valuable local facility offering employment and training to many people with a disability and it makes a commercial success of what it does.

“As well as its work for major clients it also manufactures a range of home interior and furniture products including sofas, beds, tables and chairs for the domestic consumer.

“Dovetail provides high-quality items at competitive prices and support local people, including many with disabilities.

“It is well worth getting a copy of their most recent catalogue or visiting the showroom if you are looking to buy or replace these items in your own home.”

Commenting on David Miliband’s recent comments when he admitted Labour’s failure to set up an oil fund like Norway’s – a scheme supported by the SNP – Dundee West MSP Joe FitzPatrick – a member of the Scottish Parliament’s Finance Committee – said: “These comments are an embarrassment to the Labour party in Scotland and show they have learnt nothing from the 1980s.

“Yet again we see Labour politicians regret not setting up the means to forestall the negative effects a London Tory government will have on Scotland.

The Labour Leadership contender had said that under Mrs Thatcher the public benefits of North Sea Oil were used for tax cuts – often to benefit the richest. The Norwegians used theirs to build a sovereign wealth fund. ‘But we did not learn the lesson,’ he concluded.

The Labour leadership contender’s remarks come as reports of another boom in North Sea oil are forecast.

Commenting further, Joe FitzPatrick said: “In the 1980s it was their failure to implement Scottish devolution and the resulting devastation the Tories caused to Scotland’s economy.

“Now we have Labour repeating history again with this admission that they should have set up an oil fund. It’s not as if they weren’t warned. Labour’s Malcolm Wicks suggested they set one up in 2007.

“This is just another example of how Labour cannot be trusted to protect Scotland from a London Tory government. When they have the chance to put in the place the means to avoid the worst excesses of a Tory government they fail to do so and then they pretend they should have implemented those policies.

“They are taking the voters for fools if they think they can get away with their empty oppositionalism again.

“As the latest reports on another oil bonanza show it’s Scotland’s oil and gas industry which is the only thing keeping the London Treasury afloat. Over the next few years, billion worth of North Sea revenues will flow to the London exchequer to shore up the UK’s precarious finances.

“In the 1970s requests for an oil fund were turned down by a Labour government – the repetition of this failure by Labour in the 21st century is unforgivable.”