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Inside Holyrood: Labour's new-found confidence faces its first test

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Published Date: 10 November 2008
THE Scottish Parliament will this week debate one of the most difficult and potentially hazardous SNP policies: the Scottish Futures Trust.
This would normally only be a subject to interest public sector specialists or financiers, but it has come to symbolise the more problematic policy territory that the Scottish Government is now entering into.

The Scottish Futures Trust (SFT) is th
e SNP's alternative to Public Private Partnerships, the leaseback arrangement which the previous Executive used to finance most public sector building projects.

The SFT is supposed to deliver better value for the taxpayer and smaller profits for the private companies by using collective bargaining to drive down prices.

The aim is laudable but the policy has run into a whole series of problems with many more on the horizon.

But this is one area which the Labour Party in the Scottish Parliament believes it has an advantage – this policy is one of a small number of key Scottish Government plans which Labour feels can be targeted with real effect.

Taken within the context of the spring which most Labour MSPs will have in their step as they arrive at Holyrood next week following the Glenrothes by-election result, this week could see the start of a difficult period for the Scottish Government.

This time last year Alex Salmond was so well on top in his battles with the Labour Party that it was a mismatch. Wendy Alexander was going through turmoil over her election expenses and Labour was unable to land a blow of any real merit on the Scottish Government.

A year on and everything has changed. There has even been renewed talk – although nothing more than whispers – that maybe Ms Alexander had a point and maybe Labour should challenge the SNP to "bring it on" and call a referendum on independence after all.

The party has been burned on this once before so these ideas are unlikely to get much further, but, if nothing else, it shows that Labour has got its confidence back.





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  • Last Updated: 09 November 2008 10:21 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Scottish Labour Party
 
1

Conan the Librarian™,

10/11/2008 00:27:56
Hang on; there's still an SNP Government in Scotland.

Na Na NANANAH!
2

An Beal Bacht,

10/11/2008 00:35:22
"Labour has got its confidence back"

Bluster and bravado maintained by a tame media. Inside the chamber it's not Glen Campbell they will be facing but the mighty intellect of the First Minister.
3

frank mcbride,

lusitania 10/11/2008 00:39:54
Let's see the Unionist Alliance, in all its glory, vote for continued obscene profits for Big Business and a suffocating mortgage for our children, and our children's children.
4

,

10/11/2008 01:13:16
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5

An Beal Bacht,

10/11/2008 01:17:57
4 - sam, greenock, 10/11/2008 01:13:16

"2 An Bam Bam- Clearly been on the Scotch again."

Don't touch the stuff sam. But even you must recognize the superiority of the Scottish cabinet over their rivals. Really - come on - Gray? Scott? Auntie? We don't even need to bring out Alex to crush that lot - a back bencher would do.
6

Keren, It's time,

Yes we still can! 10/11/2008 01:59:37
5 SNP back benchers not only would do but often do - Alex Neil or Christine Grahame can chew up and spit out your average Unionist Labourite numpty with a flick of the wrist.

7

,

10/11/2008 02:07:42
Comment Removed By Administrator
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8

An Beal Bacht,

10/11/2008 02:07:45
6 - Keren, It's time, Yes we still can!

Like the image: "with a flick of the wrist".

It demonstrates the disdain felt by most Scots for the midges from the unionist side.
9

An Beal Bacht,

10/11/2008 02:08:15
6 - Keren, It's time, Yes we still can!

Like the image: "with a flick of the wrist".

It demonstrates the disdain felt by most Scots for the midges from the unionist side.
10

An Beal Bacht,

10/11/2008 02:10:11
6 - Keren, It's time, Yes we still can!

Like the image: "with a flick of the wrist".

It demonstrates the disdain felt by most Scots for the midges from the unionist side.
11

An Beal Bacht,

10/11/2008 02:33:34
System error!!!
12

Champion Haggis Slayer of Fife,

10/11/2008 03:45:24
So, the SNP lost out in Glenrothes due to the snivelling Fife newtown's lack of backbone and willingness to fight for what is right.

Scotland must depart from the Union post haste, I am flabbergasted at how short peoples memories are.

THE LABOUR PARTY HAS HAD ITS NOSE IN THE TROUGH FOR SO LONG......HOW CAN PEOPLE BE SO STUPID AS TO CONTINUE TO VOTE FOR THEM.

TO THE PEOPLE OF GLENROTHES......THE WORLD IS LAUGHING AT YOU
13

Castaway™ ,

10/11/2008 04:18:51
Now that Labour has got its confidence back the Labour MSPs should table a vote of no confidence in the Scottish Government but like our PM the MSPs will be all talk and no walk but they will jump when Gordon says jump.
14

KampungHighlander,

10/11/2008 05:21:41
Does Hamish Macdonell, like Osama Bin Laden, post in his articles from a cave?

"A year on and everything has changed. There has even been renewed talk – although nothing more than whispers – that maybe Ms Alexander had a point and maybe Labour should challenge the SNP to "bring it on" and call a referendum on independence after all."

It is interesting he wants to turn by the clock on the constitutional debate after it has been widely reported in the media that Gordon Brown is preparing to shoot the Calman Commission in the head.

With their constitutional strategy in tatters, and collective egg on all their faces, maybe the leaders of Labour, the LibDems and theTories will want Wendy to come back and lead the Unionist Cause.

Whatever confidence Scottish Labour has gained from Glenrothes has been shattered by Gordon Browns bloated ego and Constitutional reversal.
15

Guga II,

Rockall 10/11/2008 05:34:05
Here we go again, Hamish with one of his press releases on behalf of the New Labour Sleaze and Corruption Party (North British Branch).

Tell me Hamish, do you get paid by New Labour as well as the Hootsmon, or is it just a deluded labour of love?
16

izzie,

dundee 10/11/2008 06:24:12
The SNP a one man band I think not. Labour a one man band - they wish
17

,

10/11/2008 07:40:16
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18

gus1940,

Edinburgh 10/11/2008 08:24:07
All that Glenrothes proved was that you can fool a majority of the electorate some of the time with lies distortion and a media 100% biased in your favour.

I suggest a significant increase in the education budget for Glenrothes so that the poor souls can be cured of their naivity and susceptibility to the lies of a bunch of conmen Labour politicians and their media Quislings.
19

yockel,

10/11/2008 08:29:47
Once the SNP cotton to the fact that a well disliked cooncilor with a cooncilor wife is not going to win against a respected local headmaster with no political baggage in a labour safe seat no matter how much the voters want a change then Liebour confidence is not going to count for much. Learn the lesson SNP, it was nothing to do with Broon, recession or care costs.
20

Edward,

10/11/2008 08:37:28
Hamish instead of just repeating what your told by the Labour press office, why dont you do a real piece of journalism?
Ive never seen such a piece of bias reporting such as yours, it really is bad forf what is supposed to be a quality paper
21

gus1940,

Edinburgh 10/11/2008 09:38:51
Since thursday night I have been wondering why the EBC resurrected Jim Sillars from his self-imposed political exile.

It must be because in pursuit of their hardline pro-unionist policy they considered he would be useful as a device to discredit Alex Salmond.

It was interesting to hear Sillars accusing Alex of being a one man band.

If anybody is an expert on one man bands it is Sillars - he even formed his own political and when that went ti-s up he joined THe SNP and if he had got his own way would have turned it into a one man band with himself as the band.

Fortunately for Scotland he failed in his aim and went into political exile and has been chewing on sour grapes ever since along with his wife and fellow political opportunist Margo McDonald.
22

,

10/11/2008 09:57:00
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23

Mr. Lachie Todd,

Edinburgh 10/11/2008 10:04:39
Looks like the Nationalists will just have to compromise
with the Unionists on this one?
24

Alan B,

10/11/2008 10:14:05
It would be dam site easier if the government could just borrow like most other governments. Even councils have more borrowing powers than the scottish government.

Just another example of the failure the devolution settlement which denies the scottish government real power to make a real difference.
25

,

10/11/2008 10:28:45
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26

57vintage,

Keith 10/11/2008 12:10:50
"Christine Grahame"

Considering her most recent comments were on land-grabbing Berwick back into Scotland (whaaaaat????) and getting the bones back from London of a long-dead queen whose family's wish was to have them there, she'd hardly be part of the SNP mainstream, surely? Is that what passes for Party policy these days? Michty.

Perhaps a bit like Dorothy Grace Elder (I'm never sure where the hyphen goes) but without the intellect, integrity or nous?
27

Ghengis McCann,

Edinburgh 10/11/2008 12:34:13
#2 - Yer man King Smug didn't look too clever yesterday under frankly pretty mild questioning from said Glen Campbell.

The Scottish media have given the Gnats a very easy ride since a year past May. However there was always going to come a time when voters started to look behind the Fat Man's bluster and the hysterical saltire-waving from his camp followers and start asking where the meat is. That time may just be now.

In truth the Gnats have achieved very little of substance in the first year or so - a few populist lollipops is all - and it is starting to show. The Scottish Futures Trust is dead in the water, and voters (and not just in Fife) are starting to work out what the Poll Tax freeze means - cuts in services to pay for the bribing of the middle class.

In the midst of a recession, nonsense like picking fights with Westminster, demanding a return of the Lewis Chessmen and Mary Queen of Scots' bones, or crusading about a GB football team at the Olympics look pretty damn irrelevant to voters worried about losing their jobs and their homes.

Salmond's "arc of prosperity" might have passed as statesmanlike a few months ago, but just makes the Gnats look daft now. Nor does the Gnats' reversion to type following a defeat - ie insulting the voters of Fife for having the gall not to vote for them - look like the actions of a mature political Party.
28

Westfield Bairns,

falkirk 10/11/2008 13:58:23
Er Ian Gray and his fourth rate Nulabor numpties, the've even taken over from the Lib Dums as nonentities in the Parliament. Can't wait to thursday for wee Eck to take it out on Gray for last week
29

57vintage,

Keith 10/11/2008 14:07:32
#31

Your surname's an anagram of "brains" - any chance you could use yours once in a while and post something that resembles political comment or even using the common language as it's accepted?
30

Ghengis McCann,

Edinburgh 10/11/2008 14:57:05
#31 - Is a translation of this available?

And "Wee Eck"? Have you seen His Largeness recently? Can we eat all the pies? Yes we can!
31

Alan B,

10/11/2008 15:03:57
#30 sm753

I am against running up big deficits in the good times. ie spending more than you are taking in. As when the downturn hits as it will over an economic cycle you are left in the brown stuff.

Browns golden rule if he had adhered to it was good in principle ie not to borrow other than for investment over the economic cycle. The problem is he spend more than we were taking in in taxes for consumption.


The question is how should we fund capital infrasture projects.

I am not against pfi in principle but they must be value for money. Too many of the pfi projects apear to have been bad value.

The scottish futures as i understand it lays out afew alternative options some just rehashed pfi. Again i am not against them if they are value for money.

The other major alternative is government borrowing. eg issuing bonds.

So if the scottish government are looking to finance a new forth crossing i have no problem if the government look at the financial alternatives and decide that financing it by bond issues is the best way.

Lets face it the issue is that government cannot fund capital projects like this out of one years spending. Abit like us buying a house and using a mortgage.

I also have problems with pfi because governments have just used this as a way of having off balance sheet debt.

I also think it has democratic implications. Labour use of pfi has meant it has committed future governments to spending from its political decision making. Labour previously said that it wanted much of it decisions to be irreversible. Committing future governments to labour spending plans through big financial commitments like pfi is one way of doing so. Although i do realise a balance has to be struck.

Apparently including pfi and unfunded public sector pensions brown has now taken the uk to debt levels exceeding 100% of gdp.
32

Alan B,

10/11/2008 15:12:04
#sm753

"Councils can borrow because they have external revenue streams; the Scot Gov doesn't. There might be a case for it being able to borrow against any additional tartan tax revenue it chose to raise, but of course it hasn't used that power."

A scottish government could borrow for investment and use future income from the block grant to pay for it. It is effectively like a mortgage. With pfi the private sector holds the debt and is paid for by the government out of future monies. Government issued debt would be along the same lines by issuing bonds.

I do not see what a tartan tax has to do with it. A tartan tax is just another funding source but irrelevent to borrowing.


The real issue with allowing scottish government borrowing is if it was not regulated it could have implications for the pound. Although given scotland relative size it probably is not a big deal.

Countries that run up excessive debt create runs on their currency. This was a large part of the reason the eu had the stability pact for the euro so that some countries running lax fiscal policies would not hurt the economies of others. As such 3% deficit levels are the upper limit. Browns problem is he has been running against that limit in good times. It also says that debt should be no more than 60% of gdp (alhtough belgium got in with more than 100% of gdp). Part of the reason for things like pfi is to put the debt of balance sheet.

33

Westfield Bairns,

falkirk 10/11/2008 15:14:06
32 / 33
Yes can always rely on some impartial political comment, unfortunatly on checking out some of your last posts your a couple of Unionist self loathers. Perhaps someone will give yo a backbone for Christmas and you can stand up for your Country for a change
34

Alan B,

10/11/2008 15:18:17
#sm753

"Curious statement. Haven't you spent the last few weeks decrying excessive debt in the economy, and blaming Brown for letting it happen?"

While my post above have explained where i stand on public sector debt, and i am against running up deficits in the good times for consumption spending, most but not all of my critisms recently have regarded private sector debt.

ie the massive house price inflation that has lead to unprecendented personal debt.

I was very much in favour of controlling house price inflation by supply side means along with limiting the growth of credit by having ratios against which people can borrow for mortgages and possibly by controlling the capital requirement of bank so that more of their lending is from depositor money and not inter bank lending via the global credit markets.
35

KampungHighlander,

Jakarta 10/11/2008 15:23:27
#30

"Councils can borrow because they have external revenue streams"

Please explain why the Block Grant is not an "external revenue stream".
36

KampungHighlander,

10/11/2008 16:00:16
#39

So you define external revenue stream as only coming directly from a non government entity.

So why is it that councils can include Council Tax Rebate in their calculation of revenue streams for the purpose of borrowing? Since councils in Scotland have effectively given up control of Determining how much council tax they can collect by agreeing to a council tax freeze, does that mean they can no longer borrow?

37

Alan B,

10/11/2008 16:21:35
#39 sm753

"Is this so hard to understand?"

I think it is you that is failing to understand. The point is why does scotland need an additional revenue stream to finance government debt?

The scottish government currently services pfi debt out of the block grant. There is no reason that it cannot do the same for debt issued bonds.

There may reasons not to let the scottish government borrow (and i have suggested afew above) but not having more tax raising powers is not one.
38

Miss H,

10/11/2008 16:38:49
41 A simpler solution might just be to give the Scottish parliament tax raising powers.

Anyway, I am still waiting for the Scottish Government to publish details of all PFI/PPP contracts.

It is taxpayers money we are entitled to know how it has been spent. 'Commercial confidentiality' be blowed.
39

Alan B,

10/11/2008 17:11:56
#Miss H

I agree Scotland should have tax raising powers as you know and am a strong supporter of full fiscal autonomy.

However I cannot understand sm753s belief that the scottish parliament/government cannot issue debt and fund it via the block grant.

I could understand if he were putting together an argument against the sp having borrowing powers but his rational seems to be based on some false premise of needing a tartan tax.

40

Alan B,

10/11/2008 17:15:21
#Miss H

"'Commercial confidentiality' be blowed."

Completely agree with that. I am not against pfi/ppp in principle as it simply another form of debt but it must be in the tax payers interest and deliver value for money.

Hiding pfi agreements behind 'Commercial confidentiality' is wrong and undermines the whole process.

I see no reason why a hospital or school funded by pfi should not have that contract available for public scrutiny.

I think it is nothing to do with 'Commercial confidentiality' but political expediency and possibly and dangerously possibly corruption.
41

mr angry,

ayrshire 10/11/2008 18:24:11
46. AM2 you are as big a waster as ever, why don't you take a hike. You ruin every thread you post on with your mince.
42

mr angry,

10/11/2008 18:27:08
39. AM2 , considering local authorities get most of their funding from the Scottish Government , ie BLOCK GRANT, cannot be changed.
Block Grant = payment from one bit of government to another one. Recipient has no control over size of revenue stream.
How do you work out that they can borrow on the small amount they raise locally , excluding the £400 Block Rebate.
43

mr angry,

ayrshire 10/11/2008 18:28:13
48. AM2, Pity it wasn't a noose you were using.
44

,

10/11/2008 19:35:00
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45

tearortwo,

burton on trent 10/11/2008 19:48:02
Could someone explain why a Forth crossing has to be funded by a Scottish Government? After all everyone pays road tax and fuel taxes to the UK Treasury so why can a Scottish proportion of this not be allocated for transport infrastructure?
46

IainGlasgow,

10/11/2008 19:49:32
#13

This by election victory could prove to be a poisoned chalice for Labour. They believe because they held the seat with tactical Tory voted and their majority halved that Scotland has ended its brief flirtation with the SNP. They belive they have been redeemed and and can coast on to victory at the General election, saving Great Britain from the clutches of Salmond and Cameron.

The SNP on the other hand will now stop sitting on their laurels and raise their game another level.
47

An Greumach Mor,

Scotland 10/11/2008 20:36:14
I have been trying to formalise my sterotypes of Unionists into neat little groups for my own amusement.


English-Scots - English people who have settled here but retain the self interest of their homeland over that of Scotland. (At least they are proud of their own heritage)

Ulster-Scots - People who's religious affiliation dictates their political position for life who have brought their prejudice to Scotland from N.Ireland.

Unionist-Scots - People of Scottish origin who have learned to loath their own culture, history and people. Who wish they were English-Scots while prentending they are all equal citizens of a GB Utoptia. There are also people within this group for whom politics is governed by which of the Glasgow football teams they support.

ZaNu-Labour Scots - People who put party politics and personal gain for themselves and friends above the betterment of the population. The politcal gravy train and hope for position in London robbing Tax Payers across the UK.

Lib-Dems Unionists - Unable to define.

Please let me know how you would define yourself as a Unionist.



48

An Greumach Mor,

Scotland 10/11/2008 20:40:27
Where do I go to take my "Unionist Hypocratic Oath"

French who support France are Normal
Germans who support Germany are Normal
English who support England are Normal
Polish who support Poland are Normal
Scottish who support England are Normal ?

And
Scottish Who Support Scotland are racist, seperatist and small minded deluded fools unable to accept what is best for them.
49

Alan Reid,

Ringkobing 10/11/2008 20:40:50
29 Ghengis McCann, And who would you like us to vote for f@ckwit?
50

An Greumach Mor,

Scotland 10/11/2008 20:54:06
#56 Alan Reid

I think he is suggesting we vote for the fantastic ZaNu Labour party.

Scottish New Labour the Party that delivers......

Phuck, Phuck All, again and again decade after decade.

It is great plan. Did you not know us Scots are incapable of looking after ourselves. Thats right we are special amoungst the populations of the world in that respect. We require the assistance of the benefits agency and the London Labour party to guide us.

The lack of development in Scotland is all the fault of the Lazy, alcoholic benefits spongers(known in England as the Scotch) and nothing to do with bad government at local and national level for decades.

Under labour we will be saved as all problems in scottish society were caused last year when the rebellious fools elected a SNP government.

Do you not read the Scotsman!!
51

IainGlasgow,

10/11/2008 21:44:56
58

Wouldn't a European super state run centrally from Brussels in which we are all equal citizens be a much stronger institution. Stronger together weaker apart? We do after all respect the French, Germans, Italians, Spanish, Portugese, Belgians, Dutch, etc don't we?

I'm sure there are those who think so and I respect their view but there are a great many British Unionists who find the idea of a Federal Europe totally repugnant. Their point of view is Scottish parochialism bad, British parochialism good.
52

,

10/11/2008 22:27:27
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53

IainGlasgow,

10/11/2008 23:24:06
# 60

So I take it you'll be expecting Australia, New Zealand, Canada and the Republic of Ireland to rejoin us then since they too share a common language and substantial elements of culture. Perhaps the USA would join too as long as they have the Capital city. I'd certainly prefer Barack Obama running my country than the Labour Party.

I'm not sure what these elements of culture that are uniquely British and depend on Scotland being ultimately run from London are however. Perhaps you can enlighten us.
54

Dark Lochnagar,

12/11/2008 11:52:29
There is absolutely no comparison in the quality of debaters. LONG LIVE THE SALMOND!

 

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