Tuesday 28^th December 2010

Commenting on the interview in the Herald today (Tuesday) by the LibDem Chief Secretary to the Treasury, Danny Alexander, where he described Westminster cuts as “common sense”, “unavoidable”, “progressive” and “civilised”, SNP MSP Joe FitzPatrick – a member of the Scottish Parliament’s Finance Committee – said it just underlined how far the LibDems had gone in betraying their voters.

Mr FitzPatrick pointed out that before the May election this year LibDem leader Nick Clegg and Vince Cable had been strongly against such an early cuts programme and Nick Clegg described them as “economic masochism” and added that if “If anyone had to rely on our support, and we were involved in government, of course we would say no."

Commenting Mr FitzPatrick said:

“In opposition the LibDems were vocal in opposing the type of cuts Danny Alexander is now driving through. Cuts that are damaging and which Scotland never voted for.

“Danny Alexander’s comments just show how far the LibDems have gone in betraying their voters. If it is not tuition fees, the VAT rise the it is supporting the Tory cuts which they call masochistic.

“His astonishing comments just show how the LibDems now enthusiastically support the Tories; that they are the same as the Tories and they are doing the Tories' dirty work.”

Note:

The BBC report from Saturday, 13 March 2010 when both Nick Clegg and Vince Cable promised they would oppose early cuts:

http://news.bbc.co.uk/1/hi/uk_politics/8565722.stm

HEADLINE: Lib Dems will not back early cuts, says Nick Clegg

The Liberal Democrats would not support any plan to cut public spending too early in the next Parliament, leader Nick Clegg has said.

Deep cuts would be "economic masochism" so early in recovery, Mr Clegg said...

...In his speech to the spring conference on Saturday, Lib Dem Treasury spokesman Vince Cable...[said]...The Conservatives' spending plans were not yet known, he said, adding: "I think the present line on the budget is: Trust us and we'll tell you after the election."

He added: "That simply isn't good enough."

...Mr Clegg has found himself facing questions about what his party - the UK's third biggest - will do in the event of a hung parliament after the general election...

...But he said cutting too early would risk "pulling out the carpet from under the feet" of the British economy, which he said was still "too fragile".

"He added: "We think that merrily slashing now is an act of economic masochism.

... "If anyone had to rely on our support, and we were involved in government, of course we would say no."

Tuesday 28^th December 2010

Commenting on Lord Forsyth’s call for a referendum on the London parties’ Scotland Bill proposals, SNP Campaign Director Angus Robertson MP said any referendum must include the options of independence and financial responsibility since polls show the ambitions of the Scottish people go beyond the limited ambitions of the Bill.

Commenting Mr Robertson said:

“Any referendum on Scottish constitutional change must include independence and financial responsibility as polls continually show that the ambitions of the people of Scotland go far beyond the limited vision of the Scotland Bill.

“The Scotland Bill as it is currently drafted falls far short of what is needed, and is designed to actually cut Scotland’s cash.

“Polls show that people across Scotland see the need for this country to gain the powers other countries take for granted. Powers that will allow Scotland to compete on a level playing field, attract business, grow the economy and create a wealthier nation – the only alternative to the savage Westminster cuts agenda.”

Note:

1. The TNS poll was carried out Nov 24 – Dec 6 and sample size was 910.

The SNP have outlined their plans for a possible referendum which would transfer additional powers to the Scottish Parliament to enable Scotland to become an independent country. If such a referendum were to be held tomorrow, would you support or oppose the following proposal? The Scottish Government proposes that the Scottish Parliament's powers and responsibilities should be extended to enable independence to be achieved.

The TNS poll follows findings by the Scottish Social Attitudes Survey which shows that support for Scottish independence rises to almost half (45%) if taxes were to go down by £500 – with 62% also saying that the Scottish Parliament should take the most important decisions about welfare benefits, while 57% say the same about taxes.

2. The results of previous TNS polls on support or opposition to independence are below:

TNS Independence Polls

Tuesday 28th December 2010

Western Isles SNP MSP, Alasdair Allan, has commented on the shortlisting of the late Linda Norgrove for the Robert Burns Humanitarian Award.

Ms Norgrove, whose parents live on the Isle of Lewis, died following her kidnapping in Afghanistan earlier this year. She has now been shortlisted to the final three for this award which is presented annually to someone who has improved the lives of others through personal self-sacrifice.

Alasdair Allan, who nominated Ms Norgrove for the award, commented:

"I am very pleased that Linda and her family have received this well deserved recognition for the remarkable contribution which Linda made to helping people in dangerous places around the world.

"The Robert Burns Humanitarian Award recognises selfless work of just the kind that Linda championed and ultimately gave her life for.

"I am glad to see that Linda is on a shortleet of just three names for the award, which will be presented on the 22nd January at a ceremony at the Burns Museum in Alloway.

"This recognition also provided a welcome opportunity to highlight the work which the Linda Norgrove Foundation is already doing in Afghanistan in Linda's memory."

Wednesday 29^th December 2010

Scotland’s NHS will be forced to pay £43 million to the Treasury as a result of the Tory government’s u-turn on Labour’s National Insurance increase and the increase in VAT to 20%.

The Tory government is set to cost all public services in Scotland vital resources with the increase in VAT. The high number of employees in the NHS leaves it particularly exposed to Labour’s job tax – which the Tories and Lib Dems failed to scrap.

The Scottish NHS will have to pay around £17 million in extra National Insurance payments to the Treasury this coming year.

On top of this is a £26.5 million increase in VAT payments for the NHS in Scotland imposed by the Tories after the Lib Dems again let Scottish voters down.

In the election the Tories claimed they would scrap Labour’s tax on jobs and immediately after theTory government’s budget David Cameron told SNP Westminster leader Angus Robertson MP that “our action on national insurance contributions has saved the NHS money” however the Tory changes leave the rise in place.

Commenting on the £43 million tax bill SNP MSP for Cunninghame North Kenneth Gibson said:

“The Tory government is threatening Scotland’s public services with a £43 million tax bill for Scotland’s NHS.

“This is a double tax bombshell for the Scottish NHS – a grotesque Christmas present where the Scottish NHS has to pay the UK government back for the misleading pledges of the Westminster parties.

“Labour introduced this damaging jobs tax, the Tories have left it in place and it is Scotland’s public services and our economy that will pay the price.

“Scotland’s NHS will lose £43 million thanks to the financial mismanagement of all three UK parties. That is the equivalent of 2000 nurses salaries for a year.

“Cameron claimed he was saving the NHS money when in fact he is costing it millions.

“Whilst all the London parties have shown they can’t be trusted on tax it is the SNP which is the party that stands for Scotland's people and Scotland's interests. While Tory, Labour and Lib Dem planned to take taxes from Scotland’s NHS the SNP has worked hard to put more money in to our health service to ensure it remains the first quality service we all want to see.

“While the other parties simply opt to put up taxes and take from Scotland’s public services the SNP is the only party offering a better way to the dismal decade of cuts planned by the London parties.”

Notes

1. Labour’s National Insurance increase:

Scottish Government estimates of the increase in National Insurance costs to the NHS from April 2011 are between £16 – 18 million. The figures were provided to the Scottish Parliament’s Financial Scrutiny Unit.

The Conservative and Lib Dem Government’s failure to scrap the National Insurance jobs tax were set out in the budget as follows :

“1.66 The Government will promote employment by reducing the cost of retaining and hiring staff. The Government inherited plans for National Insurance rates to increase by 1 per cent in April 2011. The negative effect of the employer rate rise will be largely reversed by increasing the threshold for employer National Insurance Contributions (NICs) by £21 a week above indexation. As a result, the number of employees for whom employers pay no NICs will rise by 650,000. This will benefit a number of sectors, including manufacturing.”

2. David Cameron claiming the increase would be beneficial:

Angus Robertson (Moray) (SNP): A consequence of yesterday's Budget and VAT rise is £26.5 million of new overheads for the NHS in Scotland. Having promised to ring-fence health spending, will the Treasury now cover those costs, or will this be another broken promise, just like Lib Dem opposition to a VAT rise before the election?

The Prime Minister: Of course, our action on national insurance contributions has saved the NHS money, which would not be available under a Labour Government. The point I would make is that that benefits Scotland. The fact that we are protecting the NHS and NHS spending means that money will be available in Scotland as well. The shadow Health Secretary has said that health should not be protected, and that the NHS should be cut. That is now, take note, the official position. The Leader of the Opposition is nodding-cutting the NHS is now official Labour policy.

3. The impact of the VAT increase to 20% on NHS boards is set out in the PQ answer below

NHS Finance

S3W-33760 - Ian McKee (Lothians) (SNP) (Date Lodged Wednesday, May 19, 2010): To ask the Scottish Executive what the implications of a rise in VAT from 17.5% to 20% would be for NHS boards in Scotland.

Answered by Nicola Sturgeon (Friday, May 21, 2010): The estimated implication of a rise in VAT from 17.5% to 20% for NHS boards in Scotland is shown in the following table.

4. Press Association report from 8^th April showing how the LibDems attacked a VAT rise by the Tories, that the Tories denied it and that they said they would scrap Labour’s National Insurance increase:

...Launching his party's Scottish campaign in Glasgow, Mr Clegg said: "The only way that they are going to deliver their tax promises is by dropping a tax bombshell - a VAT bombshell of GBP389 a year on every household in this country."

Tuesday 28^th December 2010

The SNP is calling on the UK Government to treat Mountain Rescue teams fairly and refund or remove VAT from mountain rescue services – a move promised by the Lib Dems before the 2010 election.

SNP MSP Michael Matheson a member of Ochils Mountain Rescue has written to the UK Treasury Minister Danny Alexander calling for the abolition of VAT on Mountain Rescue services.

Lib Dem Treasury Minister Danny Alexander said it was part of the “debt” owed to Mountain Rescue to remove VAT from only a day before the General Election campaign.

VAT is estimated to cost mountain rescue teams between £150 - £200,000 .

In recent weeks mountain rescue teams have supported the NHS through the snow with their 4 x 4 vehicles and the volunteer forces remain on constant standby to help people in our outdoors.

Falkirk West MSP Michael Matheson said:

“It is utterly ridiculous that Mountain Rescue teams continue to pay VAT. It is estimated that Mountain Rescue team pays £150,000 to £200,000 a year in VAT. With 12 teams in Scotland that is money that could be spent on new vehicles, training or equipment that could help save lives.

“The day before the UK election Danny Alexander said anyone who uses our outdoors owes mountain rescue a debt. The UK Government owes mountain rescue more than a debt, it owes them hundreds of thousands of pounds in VAT – not just in Scotland but across the UK.

“This is yet another Lib Dem promise turned sour. Mountain rescue do an incredibly valuable job and they should be supported. Instead of taking VAT off mountain rescue the Lib Dems are now putting it up.

“The SNP Government has backed mountain rescue with £300,000 of government funding. It is time the UK Government paid it’s dues, scrapped the VAT and supported our essential outdoor services.”

1. Comments by Danny Alexander:

In opposition Danny Alexander said: “It has never been right that a vital service which relies on donations from the public and extraordinary commitment from volunteers gets hit by the Government for a sizeable tax payment.”

2. Immediately before the election (4^th May) Danny Alexander said the following in a press release: "It has never been right that a vital service which relies on donations from the public and extraordinary commitment from volunteers gets hit by the Government for a sizeable tax payment. "The Government has resisted calls for VAT exemption, arguing that it would not be allowed by European law, but it is absolutely clear that VAT paid could be refunded. The cost to the exchequer is small, but the difference is enormously significant for mountain rescue teams. "Whatever the result on Thursday, I hope this is a policy which will be put into action." Read more: http://www.dannyalexander.org.uk/news_detail.asp?newsID=157

3. Scottish Government funding for Mountain Rescue in Scotland http://www.scotland.gov.uk/News/Releases/2010/06/03155951

4. Letter from Michael Matheson to Danny Alexander:

As a member of the Ochils Mountain Rescue team I am, as you are, well aware of the essential service mountain rescue provides across Scotland and the UK.

You will know that in recent weeks mountain rescue teams have volunteered additional services to support the NHS, ambulance teams and social services in reaching patients through the snow.

There has been a long running campaign to lift the VAT paid by mountain rescue services on their supplies and equipment. As charities in Scotland the VAT payments are less than in England but are still estimated to cost the services between £150,000 and £200,000 a year.

That money could be used for vehicles, equipment and training to enhance safety on our mountains.

In Scotland the SNP Government has provided funding for mountain rescue but it is disappointing to see that some of this funding returns to the Treasury in the form of VAT and that that amount is set to increase due to the UK Government’s refusal to back moves to exempt Mountain Rescue from the VAT increase.

On the 4^th May this year, discussing mountain rescue services you said that anyone who uses our outdoors “owes them a debt” and that whatever the election result you hoped the policy of VAT cancellation or reimbursement would be put into action for Mountain Rescue.

Unfortunately in both the UK Government budget and in the Comprehensive Spending Review there was no suggestion that the UK Government is to support this call.

People across Scotland are becoming increasingly used to seeing the commitments made by Liberal Democrat MPs disappearing now they become Liberal Democrat Ministers. For the sake of improving the safety on our mountains I am writing for your assurance that you will act to remove or refund VAT from mountain rescue services and will do so before this difficult winter is out.

Yours

Michael Matheson MSP

Monday 27th December 2010
 
SNP Postal Affairs Spokesman, Mike Weir MP, has praised the postal services workers who went the extra mile over the festive period to make sure presents and cards were delivered in time for Christmas and said the record level of mail sent over the festive period was a reminder of the importance of a public post service.

Mr Weir, who sits on the Postal Services Bill committee at Westminster, called on the UK Government to reverse their plans to part-privatise the Royal Mail and commit to keeping the postal service public in 2011.

Commenting, Mr Weir said:

"The festive period is an annual reminder of how our communities depend on Royal Mail. While it would be easy to dismiss the importance of the service in the digital age, the massive volume of packages and letters sent over Christmas show how vital it is - especially to remote and rural communities.

"When the big online retailers stop delivering, the Royal Mail carried. Would this happen if the Mail was privatised? I doubt it.

“It is a terrible indictment of Vince Cable that he has produced a bill that goes far further than even Mrs Thatcher or the Lord Mandelson dared to go. He is not only prepared to sell off Royal Mail, he is relaxed about it being bought by one of its major competitors.

“Ministers seem completely unable or unwilling to grasp the fact that Royal Mail cannot be viewed as simply another company to be bought and sold. It is a vital national institution that has a massive social function on which many of our citizens and small business depends.

“The only people who have benefited from the past so called liberalisation of postal services have been big businesses whilst the rest of us have had restricted services and higher prices.

“The Postal Services Bill is badly flawed and poses a real threat to the continuation of the universal service obligation that is so important to many areas, and to local post offices.

"The SNP will oppose this bill and any measure to sell off the Royal Mail. In 2011, the Tory Government must step back from these plans and commit to keeping the post public."

Sunday 26th December 2010

Responding to comments by Iain Gray in an interview with Scotland on Sunday in which he failed to offer any policies for Scotland's future and instead opted for silly insults against the First Minister, SNP MSP Shirley-Anne Somerville said:

"Iain Gray must be badly rattled, and no wonder. The figures speak for themselves - Alex Salmond is as popular now as when he became First Minister, an extraordinary achievement nearly four years into government, with positive approval ratings more than three times those of Iain Gray.

"And the latest poll showed SNP support up by 14 points since the General Election.

"For years, Iain Gray's minders wanted him to have a personality - now he appears to have developed a rather unpleasant one.

"Mr Gray has also revealed that Labour are a policy free zone - leaving them very dangerously exposed just 4 months out from the election.

"As First Minister, Alex Salmond has boosted Scotland's reputation for excellence, bringing new business such as the £100 million investment in renewable energy from Mitsubushi, backing our outstanding Commonwealth Games bid and team, and promoting Scottish jobs and industry in a way Iain Gray simply cannot understand. That is why employment has been rising for the last 5 months in Scotland, while it is falling UK-wide."

 

1.A poll between 18 and 21st November of 1,001 Scottish adults by IPSOS MORI showed:

Satisfaction with Party Leaders

Alex Salmond Satisfied 54% Dissatisfied 37% overall + 17

Iain Gray Satisfied 39% Dissatisfied 34% overall + 5

Annabel Goldie Satisfied 37% Dissatisfied 36% overall + 1

Tavish Scott Satisfied 31% Dissatisfied 35% overall - 4

2. Angus Reid poll 7-9 December

December party ratings; November poll in brackets; General Election figures in square brackets.

SNP: 34%, (25), [20]
Lab: 42%, (38), [42]
Con: 11%, (20), [16]
Lib Dem: 6%, (8), [19]

Sunday 26th December 2010

The SNP has today called for the UK Government to delay the hike in VAT from 17.5% to 20% - due to be introduced on 4th January - to ensure business and the economy can recover from the effects of the severe winter.

No part of Scotland or the UK has escaped the impact of the unprecedented winter weather. Business organisations and trade bodies have faced serious problems and it is thought the Scottish economy could lose £2 billion.

With the introduction of a VAT rise threatening the success of the January sales for retailers, manufacturers often having to delay deliveries, some businesses facing staff shortages or closures and with many in the hospitality trade seeking to reorganise cancelled festive bookings for the New Year SNP Treasury spokesman and member of the Treasury Select Committee Stewart Hosie said the VAT hike should be delayed to allow recovery and prevent a double dip recession.

Some stores - such as ASDA have said they will not pass on the VAT rise immediately but small retailers and manufacturing firms or industries will not be able to absorb the cost and will themselves face higher charges - unless the Tory Government postpones the increase.

The VAT rise could cost Scottish households around £590 a year.

Across the UK Insurers RSA estimate the bad weather is costing the UK economy £1.2 billion a day and that during the first phase of cold weather Scotland's economy lost an average of £53 million a day. In Scotland John Lewis said it lost £5 million of expected sales on the 19th December due to the weather.

SNP Treasury Spokesman and Dundee East MP Stewart Hosie said:

"The Tory Government should give Scottish and UK businesses a break and push back the VAT rise.

"I opposed the VAT increase in June and I am still opposed to it now. Increasing VAT will take money out of our economy at the worst possible time.

"The VAT rise put recovery at risk before the severe winter conditions set in, now it puts that recovery in real danger.

"Businesses need time to clear backlogs, get their orders out to customers, catch up on lost demand or in the case of retailers the opportunity to make up lost ground through the January sales.

"Hospitality businesses lost out considerably in December and will want to reschedule festive celebrations for the New Year. Their customers should be able to enjoy a belated Christmas lunch at pre -VAT rise prices.

"For households and families rising fuel and energy bills are doing real harm to household budgets. Hitting them with a hike in VAT will only make the poor poorer and the situation worse.

"Imposing a 2.5% increase in VAT on January 4th will damage that recovery from winter and leave business and consumers facing unprecedented challenges. The VAT rise should be pushed back till spring so the economy can get a spring back in its step.

"Government should help business recovering from the recession not hinder it and with the winter having a severe effect on Scotland and the UK's economy the Tories should give business a break and delay the VAT rise."

In a letter to the Chancellor George Osbourne and Treasury Chief Secretary Mr Hosie wrote:

You cannot help but be aware of the serious challenges the recent bad weather has brought for businesses of all kinds in Scotland and across the UK.

Problems with delivery, staff shortages due to weather conditions, lower than expected sales and cancellations have affected all aspects of our economic life.

Households are facing significant energy and fuel costs that are having drastic effects on household budgets and will only be worsened by a VAT rise.

Insurers RSA have estimated the cost to the UK economy at over £1.2 billion a day and over £53 million a day in Scotland.

As you will know many businesses and business organisations have considerable concerns about the impact of the VAT rise scheduled to come into force on January 4th.

I have opposed the VAT rise from its inception. I remain opposed to it, however Parliament voted for the rise and it is now incumbent on us to ensure it has the least possible negative impact on our economy.

There have been repeated warnings that the VAT rise in taking money out of the economy and suppressing demand could lead to an economic downturn or perhaps a double dip recession.

For business the early months of 2011 will be critical in recovering the lost revenue and sales as a result of December's bad weather. There is also the prospect of continuing severe weather in January. The VAT rise will undermine those recovery efforts and in many cases will results in goods and services that would and should have been purchased, delivered or invoiced in December being carried over into January and therefore incurring a higher rate of VAT.

I note some of our larger retailers - eg ASDA - are intending to absorb the VAT rise. This option will not be open to smaller retailers, suppliers or manufacturers. It may be that large retailers expect their suppliers to absorb VAT on their behalf.

In order to ensure a level playing field and provide business with the best possible opportunity to recover from the severe weather, to get 2011 off to a strong positive start and to continue growth in our economy rather than push the UK and Scotland into a double dip recession I urge the UK Government to review the 2.5% rise in VAT in light of the recent bad weather and postpone it for six months to ensure business can recover rather than push the country towards a double dip recession.

Yours

Stewart Hosie MP