EC/S2/06/15/A
ENTERPRISE AND CULTURE COMMITTEE AGENDA 15th Meeting, 2006 (Session 2) Tuesday 30 May 2006
The Committee will meet at 2.00 pm in Committee Room 6. 1. Budget process 2007-08: The Committee will consider its approach to stage 2 scrutiny of the Scottish Executive’s 2007-08 budget proposals. 2. Future work programme: The Committee will consider its future work programme. 3. Subordinate legislation: Allan Wilson MSP, Deputy Minister for Enterprise and Lifelong Learning, to move S2M-4426— That the Enterprise and Culture Committee recommends that the draft Student Fees (Specification) (Scotland) Order 2006 be approved. 4. Tourist Boards (Scotland) Bill: The Committee will consider a draft stage 1 report. 5. Scottish Enterprise budget and restructuring plans (in private): The Committee will consider issues arising from evidence taken on the budget and restructuring plans at Scottish Enterprise. Stephen Imrie Clerk to the Committee Tel. 0131 348 5207 enterprise.committee@scottish.parliament.uk **********
EC/S2/06/15/A
The following meeting papers are enclosed: Agenda Item 1 Note by the clerk - Proposed approach to budget scrutiny Agenda Item 2 Note by the clerk – Future work programme Agenda Item 3 The Student Fees (Specification) (Scotland) Order 2006 Agenda Item 4 Draft stage 1 report on the Tourist Boards (Scotland) Bill Agenda Item 5 Note by the clerk - Issues paper: budgets and restructuring plans in EC/S2/06/15/5 Scottish Enterprise (private paper) Papers circulated for information only Clerk’s Bulletin, No 16 (2006) EC/S2/06/15/4 EC/S2/06/15/3 EC/S2/06/15/2 EC/S2/06/15/1
EC/S2/06/15/1 Enterprise and Culture Committee Proposed approach to budget scrutiny Note by the clerk Background 1. Members will be aware that one of its roles is to scrutinise the planned budgets and actual expenditures of the relevant Scottish Executive departments, non-departmental public bodies (NDPBs) and other agencies (see Annex A for list). A typical pattern for budget scrutiny during the course of a year is as follows— Stage 1: the Parliament considers a provisional expenditure plan submitted by the Scottish Ministers (by 31 March). This involves committees considering the strategy and priorities of departments, NDPBs etc. for the subsequent financial year. Typically, this involves a series of evidence-taking meetings throughout April to June. Stage 2: the Parliament considers the Scottish Ministers’ detailed spending proposals for the next financial year (to be submitted by 20 September). This involves subject committees considering any changes to the detailed plans published in the Draft Budget for the immediate following year. Typically, this involves a series of evidence-taking meetings throughout September to November. Stage 3: The Parliament considers the draft budget bill. 2. Unusually, owing to a delay in the spending review, subject committees will not be carrying out stage 1 in 2006/07. Consequently, the focus for the Committee in this calendar year is only to look at the relevant parts of Scottish Ministers’ detailed spending proposals for the 2007/08 financial year, i.e. stage 2 only. 3. This note sets out some proposals for what the Committee may wish to focus on during stage 2 and makes recommendations on the kinds of information that will be required to assist the Committee with its work. Proposals 4. It is proposed that the Committee conduct its stage 2 scrutiny in the following manner. First, as is the norm, ministers in both the Enterprise and Lifelong Learning Department and the Tourism, Culture and Sport Department be invited to give evidence on their detailed spending proposals for the 2007/08 financial year. These evidence-takings sessions will take place probably in October. 5. Second, in addition, it is suggested that the Committee carry on with its practice of taking evidence from the chief executive and relevant finance 1
EC/S2/06/15/1 officials in a selection of the main NDPBs and agencies relevant to the Committee’s remit. 6. In 2005, the Committee heard from Scottish Enterprise and Highlands and Islands Enterprise. It is suggested that, in light of recent events, both these NDPBs be invited back to give evidence on their detailed spending proposals for the next financial year and current spending on financial year 2006/07. These evidence-takings sessions will take place probably in late September. 7. Third, in addition to the enterprise agencies, the Committee may also wish to hear from some of the other major NDPBs and agencies not previously scrutinised (see Annex A). These could include Historic Scotland. These evidence-takings sessions will take place probably in early October. 8. Finally, all relevant NDPBs and agencies (see Annex A) should be asked to provide the Committee with figures in a format similar to that provided by the enterprise agencies, which will also be asked to provide the same information for their appearance. In this way, a consistent approach to budget scrutiny can be achieved. Annex B to this paper sets out an example of the format. If the Committee agrees, it is suggested that the Convener writes to the chief executives of the relevant NDPBs and agencies (Annex A) to give them time to prepare. Action 9. To consider the proposals set out above and agree an approach to budget scrutiny during stage 2 in the autumn. Stephen Imrie Clerk to the Committee
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EC/S2/06/15/1 ANNEX A LIST OF RELEVANT NDPBs AND EXECUTIVE AGENCIES (Initial 2006/07 budget plans, level 2 figures, rounded to nearest million 1 ) Enterprise and Lifelong Learning Highlands & Islands Enterprise (£95m) Scottish Enterprise (£456m) Scottish Funding Council (SHEFC £957m, SFEFC £602m)) Scottish Industrial Development Advisory Board (n.a.) Scottish University for Industry (n.a.) Student Awards Agency for Scotland (£362m) Tourism, Culture and Sport Architecture and Design Scotland (£1m) Historic Environment Advisory Council for Scotland (n.a.) Historic Scotland (£44m) National Galleries of Scotland (£23m) National Library of Scotland (£23m) National Museums of Scotland (£28m) Royal Commission on the Ancient and Historical Monuments of Scotland (£5m) Scottish Arts Council (£60m) Scottish Screen (£3m) sportscotland (£34m) Visitscotland (48m)
1
Scottish Executive, Draft Budget 2006-07, Edinburgh, 2005
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EC/S2/06/15/1 ANNEX B AN EXAMPLE OF THE TYPE OF INFORMATION PROVIDED TO THE COMMITTEE BY AN NDPB ENTERPRISE AND CULTURE COMMITTEE 21st Meeting 2005 Tuesday 1 November Consideration of the draft 2006-07 budget Submission to the Enterprise and Culture Committee from Scottish Enterprise Introduction This submission details the additional financial information requested by the Committee from Scottish Enterprise last March to assist the Committee in their consideration of the Scottish budget proposals for 2006-07. Please find the following attachments: Operating Plan 2004/05 Table 1 gives a summary of the Operating Plan for 2004-07 with specific detail for 2004/05. It details: • The Smart, Successful Scotland priorities and Scotland’s present economic performance compared to other OECD countries, e.g. for the priority ‘a culture of enterprise and more businesses of scale’ Scotland, as measured by entrepreneurship, is presently in the third quartile (Q3). For each priority, Scottish Enterprise’s objectives and focus for the three years of the plan (2004-07). For each priority the key operational activities, forecast investment and forecast delivery of measures of progress For each priority the key operational activities, actual investment and actual measures of progress achieved. Overall investment in the priority both forecast and actual.
• • • •
Please note: • The figures are based on gross cash expenditure which was funded from grant in aid from the Scottish Executive as well as income generated by the business.
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EC/S2/06/15/1 Operating Plan 2006/07 Table 2 gives a summary of the Operating Plan for 2005-08 with investment details for 2006-07. The layout is similar to table 1, except there are obviously no actual figures. Please note: • • The business is presently in the process of generating a detailed project forecast for 2006/07. Therefore the figures presented are based on best estimates. Forecast funding is from grant in aid from the Scottish Executive as well as income generated by the business.
Management and Administration Table 3 provides an analysis of Network management & administration costs. It details: • • • The planned expenditure for the three years of the plan (2004-07). The actual figures for 2004/05 are also provided. The analysis provides details of Network staff costs (analysed between operational and service & support staff costs) and other management & administration costs. The costs associated with Careers Scotland are included in the total position but are separately identified.
Please note: • The full effects of the Network’s Change Agenda programme are still being assessed and the projections for 2006/07 are based on best estimates.
Scottish Enterprise October 2005
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Table 1
Scottish Enterprise: Summary Operating Plan 2004-07 with 2004/05 forecast and actual investment What we Want to Achieve SSS Strategic SSS Priorities (and how Scotland's ranks against its Themes competitors What we will prioritise Scottish Enterprise objectives and focus 2004-07 What we will deliver Planned Operational Activities 2004/05 (with forecast investment and annual measures of progress) Actual Operational Activities 2004/05 (with actual investment and measures of progress) Our investment 2004/05 forecast Investment (£m) 2004/05 actual Investment (£m) Table 1
Business Gateway survival and growth (£16m); developing high potential Business Gateway survival and growth (£17m); developing high potential companies companies (£14m) Business Growth Fund (£4m); Key sector initiatives (£3m), (£14m), Key sector initiatives (£3m), Co-Investment Fund (£6m); Business Growth Investor Readiness (£1m), Co-Investment Fund (£tbc); startup grants 18-30 (£tbc) Fund (£5m); Investor Readiness (£1m), Start Up Grants (£1m), Greater Entrepreneurial Dynamism & Creativity High Growth Firms (Business Starts) Work to increase awareness the reach and scope of enterprise, increase the number of start-ups in Scotland and to realise the high growth potential in Scottish Companies
45 - 50
9,000 to 10,000 start-ups assisted during 04/05 (including 150 to 200 expecting to 9,387 start-ups were assisted during 04/05 (207 of which were expected to achieve achieve High Growth). 340 to 380 growth businesses showing improved business High Growth). 359 growth businesses showed improved business performance. performance.
55
3rd Quartile More E-Business % of firms trading online 2nd quartile Intermediary Technology Institutes (£16m), Company support (£9m), commercialisation (£4m), Proof of Concept (£4m), R&D Plus (£5m), Innovation in Stimulate more commercially successful innovation by helping firms improve key sectors (£5m), Edinburgh-Stanford link (£1m), Kelvin Institute (£2m) their Research & Development investment e.g more knowledge transfer from the research base 100 to 120 knowledge transfers were supported by the Network Focus on specific growth industries and developing a competitive environment. Sector inititiatves not covered under other priorities: Creative Industries (£1m), Tourism (£1m), Food and Drink (£1m), Energy, Life Sciences, Micro and optoelectronic technolo Intermediary Technology Institutes (£20m), Company support (£8m), commercialisation (£3m), Proof of Concept (£5m), Innovation in key sectors (£5m), R&D Plus (£2m), Edinburgh-Stanford link (£1m), Kelvin Institute (£2m) business support to adopt e-business (£3m); supplier development (£1m), eEncourage more Scottish organisations to make greater use of advanced e- learning (£1m), business activities to realise real business benefits business support to adopt e-business (£4m); supplier development (£1m), e-learning (£1m)
5 - 10
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Growing Business
Increased Commercialisation of Research & Innovation Business Investment as a proportion of GDP 3rd Quartile Global Success in Key Sectors Productivity Levels in Scottish Industry 3rd Quartile
45 - 55
117 knowledge transfers were supported by the Network Focus on specific growth industries and developing a competitive environment. Sector inititiatves not covered under other priorities: Creative Industries (£1m), Tourism (£1m), Food and Drink (£1m), Energy, Life Sciences, Micro and optoelectronic technolo
47
Encourage more businesses competitiveness through participation in the Network's activities in key sectors
0 - 5*
5
Expanding Digital Connectivity Cost and Geographic Coverage of Broadband 2nd Quartile
Broadband Incentive Scheme (£3m); local broadband initiatives (£1m); Project Stimulate demand for and access to Broadband telecoms infrastructure that ATLAS (£1m) will help companies do business in a global environment
Broadband Incentive Scheme (£4m); local broadband initiatives (£1m); Project ATLAS (£2m)
0-5
7
Smart Successful Scotland
Scottish Development International e.g. overseas offices, international ventures, inward and outward investment (£11m), Business Support to internationalise (£13m), Increased Involvement in Global Markets Companies exporting Help Scotland do more and better international business by assisting Scottish businesses to become more global and attracting more high value (e.g. Research & Development) activities to Scotland
Scottish Development International e.g. overseas offices, international ventures, inward and outward investment (£11m), Business Support to internationalise (£11m),
20 - 25
720 to 800 organisations were assisted to participate internationally and 1,000 to 1,300 planned jobs through inward investment of a high value nature 963 organisations were assisted to participate internationally (including HIE figures) and 1,845 planned jobs through inward investment of a high value nature
21
Global Connections
1st Quartile Ensuring Scotland is a Globally Attractive Location Clyde Regeneration (£13m) including Clydebank (£5m), Pacific Quay (£1m), Glasgow Harbour (£2m), Clyde Gateway (£1m); Other Strategic Investment Plan Projects (£30m) including: Ravenscriag (£4m), Gartcosh (£2m), Prestwick development zone (£1m), Loch Lomo Deliver business infrastructure and strategic area regeneration that will support key industries and help attract talented people to Scotland Clyde Regeneration (£10m) including Clydebank (£2m), Glasgow Harbour (£4m), Clyde Gateway (£1m); Other Strategic Investment Plan Projects (£28m) including: Ravenscriag (£4m), Gartcosh (£2m), Loch Lomond (£1m), Biocampus (£1m), Fife Business Park (£1m), Ro
85 - 95
75
Graduates as a proportion of the Workforce Gross Domestic Product per Head (3rd Quartile)
3rd Quartile More People Choosing to Live and Work in Scotland Net Migration (working age) as a proportion of the population 4th Quartile Promotion of Place (£1m), attraction of talent (£0.4m) Make it easier for organisations to attract and retain talented people and improve Scotland's image as a place to live, work and do business Promotion of Place (£1m), attraction of talent (£0.4m)
0-5
2
Improving the Operation of the Scottish Labour Market The proportion of the working age populaton in employment 2nd Quartile Ensuring Our Young People have the Best Start
Careers Scotland - all age careers planning & support projects (£7m), Futureskills Careers Scotland - all age careers planning & support projects (£6m), Futureskills Scotland - working with CS and others (£1m), local labour market information and Scotland - working with CS and others (£1m), local labour market information and Develop and disseminate more and better information on the Labour Market, research (£1m) research (£1m) implement careers planning for people of all ages and support employers in recruiting and retaining staff. 175,000 to 190,000 individuals engaged in career planning Skillseekers/MA's: non adults (£52m); Get Ready for Work (£19m); Skills Development including re-engineering Skillseekers & Project Support (£2m) Help young people to realise their potentional by targeting those at risk from dropping out, developing national training programmes that include core and 41,000 to 46,000 individuals participating in individual training programmes funded vocational skills, delivering work-based learning and life skills progression by SE and 16,000 to 19,000 individuals achieving positive outcomes from and provide focussed c individual training programmes Training for Work (27m of which training allowances £14m), local regeneration Help people of all ages who are economically inactive become and remain (£11m), New Futures Fund (£5m), Glasgow Employment Zone (£1m) employed by delivering career planning support and work-based training and development Workforce development including Investors in People (£9m), Adult Modern Encourage more employers to invest in training and enable more employees Apprenticeships (£7m), Construction skills (£2m), Business Learning Accounts to enhance their abilities which will allow them to make effective, sustainable (£1m) career choices 2,300 - 2,600 workforce development engagements with SMEs 185,493 individuals engaged in career planning Skillseekers/MA's: non adults (£55m); Get Ready for Work (£21m); Skills Development including re-engineering Skillseekers & Project Support (£1m)
10 - 15
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75 - 80
42,723 individuals participating in individual training programmes funded by SE and 18,749 individuals achieving positive outcomes from individual training programmes
79
Learning & Skills
Proportionof 16-19 year olds not in education, training or employment 3rd Quartile
Narrowing the Gap in Unemployment Ratio of unemployment rates between the worst 10% of areas and Scottish Average
Training for Work (18m of which Training Allowances £7m), local regeneration (£9m), New Futures Fund (£5m), Glasgow Employment Zone (£1m)
40 - 45
Workforce development including Investors in People (£9m), Adult Modern Apprenticeships (£9m), Construction skills (£1m), Business Learning Accounts (£0.2m)
34
Improved Demand for High Quality In-Work Training The proprtion of those in employment undertaking training 2rd Quartile
20 - 25
3,242 workforce development engagements with SMEs
19
Notes:
1. Contribution to the Scottish Executive's wider sustainable development policy aims e.g. closing the opportunity gap, environment and equal opportunities are integrated into the work we do. 2. Expenditure on consultancy and contractors to develop and deliver projects for 04/05 was £72m.
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Table 2
Scottish Enterprise: Summary Operating Plan 2005-08 with 2005/06 forecast investment What we want to achieve SSS Strategic Themes Smart, Successful Scotland Priorities (and how Scotland ranks against its competitors)
A Culture of enterprise and more businesses of scale Entrepreneurship: 3rd Quartile
Table 2 What we will prioritise Scottish Enterprise objectives and focus 2005-08 What we will deliver Key Operational Activities (with forecast 06/07 expenditure) and annual measures of progress Our Investment 2006/07 forecast investment £m
Business Gateway, business starts ups, survival and growth (£17m), developing high potential companies (£16m), CoHelp existing business grow, individuals start new businesses, and encourage more people Investment Fund (£9m), Business Growth Fund (£4m), Start Up Grants 18-30 (£3m), specific sector initiatives (£3m), Manufacturing Advisory Ser to be enterprising. Develop those businesses with growth potential, from start ups to businesses of scale 9,000 to 10,000 start ups assisted including 10 to 15 major high growth businesses, 350 to 400 growth businesses showing improved business performance Intermediary Technology Institutes (£26m), Company innovation projects (£10m), R&D Plus (£7m), Infomatics (£7m), Proof of Concept Fund (£5m), specific sector initiatives (£5m), Commercialisation (£2m), Kelvin Institute (£1m), Edinburgh-Stanford link (£1m) 100 to 120 knowledge transfers supported by the Network
60 - 70
Increased innovation and commercialisation of research Business Investment as a proportion of GDP: 3rd Quartile
Encourage businesses to increase growth through being innovative and investing in research & development, increase knowledge transfer from the research base into businesses
55 - 65
Growing Business
Success in key sectors Productivity Levels in Scottish Industry: 3rd Quartile Develop strong gowth industries which can be internationally competitive
Focus on specific growth industries and developing a competitive environment. Sector initiatives not covered under other priroities include: life sciences (£1m), creative industries (£1m), tourism (£2m), food & drink (£1m), micro and optoelectronics (£2m
10 - 15 (mostly covered under other priorities) n/a 20 - 25 5 - 10
Use of e:business to create business advantage % of firms trading online: 3rd quartile Improving the operation of the Scottish labour market The proportion of the working age populaton in employment: 2nd Quartile
Encourage more and smarter use of advanced e-business activities to realise real business These activities have been integrated within the 3 prorities above benefits by integrating activities across Growing Business priorities Growing Business Staff Careers Scotland - all age careers planning & support projects (£6m), Futureskills Scotland - working with CS and others (£1m), local labour market information and research (£1m) 175,000 to 190,000 individuals within working age population engaged in career planning
Help more people make well informed and realistic career choices
The best start for all our young people Smart Successful Scotland Gross Domestic Product per Head (3rd Quartile)
Skills & Learning
Proportionof 16-19 year olds not in education, training or employment: 3rd Quartile
Target young people at risk from dropping out, develop core and vocational skills, workbased learning,life skills and provide focussed careers support and advice
Modern Apprenticeships for young people (£38m), Skillseekers (£14m), Get Ready for Work (£19m), developing the training infrastructure (£2m), Early Intervention support for young people at risk e.g. New On Track programmes for schools 41,000 to 46,000 individuals participating in occupational training programmes, 16,000 to 19,000 individuals achieving a positive outcome from occupational training programmes Adult Modern Apprenticeships (£8m), Construction skills (£6m), Workforce development including Investors in People (£5m), specific sector initiatives (£1m)
70 - 80
Developing people who are in work The proprtion of those in employment undertaking training: 1st Quartile Encourage more employers to invest in training to increase productivity and help employees enhance their abilities by supporting them to make effective career choices
20 - 25
2,600 to 3,000 businesses engaged in Workforce Development Training for Work (£23m), Local Regeneration activities (£4m), Construction skills (£3m)
Narrowing the gap in employment and reducing economic inactivity Average (no international comparisons)
Help people of all ages who are not in work find and keep employment through delivering career planning support and work-based training & development
25 - 35
Skills & Learning Staff Scottish Development International e.g. overseas offices, international ventures, inward and outward investment (£10m), Business Support to internationalise by LECs (£6m), Inward Investment support (£4m) 500 to 600 high potential organisations in key sectors assisted to participate internationally, 1,500 to 1,800 planed high value jobs secured through inward investment
35 - 40
Increased involvement in global markets p
Help Scotland do more and better international business by supporting businesses to become more global and attracting more high value (e.g. Research & Development) activities to Scotland
Ensuring Scotland is a globally attractive location Graduates as a proportion of the Workforce: 2nd Quartile
Competitive Place Strategic Investment Plan (£41m): indicative projects: Centre for Bio-medical research (£5m), Ravenscraig (£7m), Gartcosh (£2m), Edinburgh City Centre (£4m), Loch Lomond & Lomond Shores (£3m), Glasgow Science (£3m), Aberdeen diversifica Deliver business infrastructure and strategic area regeneration to support key industries and help attract talented people to Scotland
90 - 100
Global Connections
Connecting to the rest of the world Cost and Geographic Coverage of Broadband: 3rd Quartile
Stimulate demand for and access to Broadband telecoms infrastructure and improve physical connectivity to help companies do business in a global environment
Project Atlas (£1m), Air Routes Development (£3m), Transport initiatives (£1m)
0-5
More people choosing to live, study and work in Scotland Net Migration (working age) as a proportion of the population: 3rd Quartile
Make it easier for organisations to attract and retain talented people and improve Scotland's image as a place to live, work and do business
Talent attraction initiatives (£1m)
0-5
Global Connections Staff
15 - 20
Note:
1. Contribution to the Scottish Executive's wider sustainable development policy aims e.g. closing the opportunity gap, environment and equal opportunities are integrated in the work we do
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EC/S2/06/16/X
Scottish Enterprise Network
Management and Administration Costs
Operating Plan Budget 2004/05 £m 1 Full Analysis of Network Costs Staff Costs Growing Businesses Global Connections Skills and Learning, of which Scottish Enterprise Careers Scotland Network Development Operational Staff Costs Network Support, of which Scottish Enterprise Careers Scotland Total Staff Costs Other Costs ICT, of which Careers Scotland Premises, of which Careers Scotland Utilities, travel & consumables, etc, of which Careers Scotland Total Other Costs Total Management and Administration Operating Plan Outturn 2004/05 £m Estimated Costs 2005/06 £m Latest Forecast 2005/06 £m Estimated Costs 2006/07 £m
Table 3
*
21 13 39 11 29 5 79 15 13 2 94
20 12 38 9 29 4 74 19 17 2 93
22 15 39 8 31 6 81 16 14 2 97
23 16 39 8 31 6 85 17 15 2 101
25 17 41 9 32 6 89 17 15 2 106
*
17 4 15 4 9 5 42 136
15 4 12 4 17 5 44 137
16 4 20 9 13 7 49 146
17 4 16 8 21 4 54 155
17 6 12 4 22 4 51 158
Scottish Enterprise & Careers Scotland Cost Analysis Staff Costs Scottish Enterprise Careers Scotland Total Staff Costs Other Costs Scottish Enterprise Careers Scotland Total Other Costs Total Costs Scottish Enterprise Careers Scotland Total Management & Adminstration
63 31 94
62 31 93
64 33 97
69 33 102
72 34 106
29 13 42
31 13 44
30 19 49
38 16 54
37 14 51
92 44 136
93 44 137
94 52 146
107 49 156
109 48 158
Notes: The 2005/06 latest forecast and 2006/07 estimate for Scottish Enterprise salary costs include provision for an increase in pension fund contributions following advice from the actuary. The estimates assume an 8% increase in employer contribution levels (from 16% to 24%). The actuary is seeking an increase of 13%. In addition , the 2006/07 estimate includes provision for severance costs of £1m arising from the Change Agenda programme. The Careers Scotland premises costs for 2005/06 include property refurbishment costs arising from the Disabled Discrimination Act and general one-off property improvements. Operational vs Support Costs Operations Costs Support Costs * £m 96 40 136 * Operational Costs are Operational Staff Costs plus ICT costs £m 89 48 137 £m 97 49 146 £m 101 54 155 £m 107 51 158
Staff Numbers (FTE) SE Careers Scotland
*
FTE 1,457 1,020 2,477
FTE 1,457 1,032 2,489
FTE 1,506 1,020 2,526
FTE 1,513 1,020 2,533
FTE 1,513 1,020 2,533
2
Scottish Executive Planning Figures SE Careers Scotland
£m 76 16 92
£m 76 16 92
£m 76 16 92
£m 76 16 92
£m 76 16 92
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EC/S2/06/16/2 Enterprise and Culture Committee Future work programme Note by the clerk Background 1. At regular intervals, the practice of this Committee has been to enable members to discuss its future work programme. Today’s meeting is one such opportunity, designed to ask members to agree a programme of work to take the Committee through to the end of this parliamentary session. 2. Current commitments are set out below. In addition, various suggestions for new areas of interest have been received from members of the Committee, officials and external bodies. These are also set out below. Current commitments 3. The current commitments are: • • Stage 2 of the Bankruptcy and Diligence etc. (Scotland) Bill, likely to take place during September to November 2006. (subject to Parliament’s approval at the stage 1 debate) Stage 2 of the Tourist Boards (Scotland) Bill, currently envisaged for September 2006. (subject to Parliament’s approval at the stage 1 debate) Stage 2 of the St. Andrew’s Day Bank Holiday (Scotland) Bill, currently envisaged for October 2006. Scrutiny of the Scottish Executive’s 2007/08 budget as the part of stage 2 process. Business in the Parliament Conference 2006 (2-3 November 2006) Any follow-up to the current investigation into the budget and restructuring plans in Scottish Enterprise. Any statutory instruments, legislative consent memoranda etc. that arise.
•
• • • •
4. In light of the above, there is scope for the Committee to commit to one further inquiry during the period before the 2007 elections, whilst retaining a small degree of flexibility should urgent issues arise that the Committee wishes to investigate. Options 5. The list below consists of a range of options for a further inquiry. It is important to stress, given the limited amount of time remaining before the
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EC/S2/06/16/2 2007 elections, that the remit of any such inquiry will need to be limited and tightly drawn. • • • • • An inquiry into employability and the Executive’s proposed framework. An inquiry into the implementation of sport21 (the national strategy for sport) and the role and work of sportscotland. An inquiry into plans to tackle the levels of those not in employment, education or training (NEET) in Scotland. An inquiry to look at EU regional development funds in Scotland, the totality of expenditure and the benefits that have resulted. An inquiry into a support package for the Scottish film industry, looking at the needs of this particular creative industry both in terms of Scotland as a location and the further development of an indigenous film industry. An inquiry into changes in the retail fabric in Scotland’s towns and cities in recent years and the role of supermarkets. A committee bill to promote micro-generation schemes in Scotland.
• •
Action 6. To consider the information set out above, select one option for a new inquiry and agree a future work programme. It is further suggested that the options not selected as a subject for the new inquiry be put forward as part of any legacy paper for a successor committee in the next parliamentary session. This would, of course, be non-binding. Stephen Imrie Clerk to the Committee
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EC/S2/06/15/3 ENTERPRISE AND CULTURE COMMITTEE SSI Cover Note SSI title and Number: The Student Fees (Specification) (Scotland) Order 2006 (SSI/2006/draft)
Type of Instrument: Date Laid Committee Meeting: Date circulated to members: Enterprise and Culture Committee deadline to consider SSI: Purpose of the instrument Minister to attend the Enterprise and Culture Committee:
Affirmative – Standing Orders Rule 10.6.1 Thursday 11th May 2006 Tuesday 30th May 2006 Thursday 25th May 2006
Monday 12th June 2006
The purpose of the Order is set out in pages 3 to 4 of the Explanatory Note Allan Wilson MSP, Deputy Minister for Enterprise and Lifelong Learning
Subordinate Legislation Committee SSI drawn to Parliament’s The considered the instrument on 16th May and attention by the agreed that no points arose on it. Subordinate Legislation Committee: Affirmative Instrument – Procedure 1. The Enterprise and Culture Committee has been designated the lead Committee and is required to report to the Parliament by 12th June 2006. 2. The draft Order was laid on 11th May 2006. Under Rule 10.6.1(b) the Order is subject to affirmative resolution before it can be made, it is for the Enterprise and Culture Committee to recommend to the Parliament whether the Order should be approved. 3. The Subordinate Legislation Committee considered the draft Order on 16th May 2006 and agreed that no points arose on it. 4. Allan Wilson MSP, Deputy Minister for Enterprise and Lifelong Learning has, by motion S2M-4426 (set out in the agenda), proposed that the Committee recommends that the Committee recommends the approval of the Order. The Deputy Minister for Enterprise and Lifelong Learning will attend in order to speak to and move the motion. The debate may last for up to 90 minutes.
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EC/S2/06/15/3 5. At the end of the debate, the Committee must decide whether or not to agree the motion, and report to the Parliament accordingly. Such a report need only be a short statement of the Committee’s recommendations. 6. It is expected the motion will be considered by the Parliament on 14 June 2006. Stephen Imrie Clerk to the Committee
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EC/S2/06/16/4
Enterprise and Culture Committee Draft Stage 1 Report on the Tourist Boards (Scotland) Bill The Committee reports to the Parliament as follows— INTRODUCTION Procedure 1. The Tourist Boards (Scotland) Bill (SP Bill 60) ("the Bill") was introduced to the Parliament on 20 March 2006 by the Minister for Tourism, Culture and Sport. Explanatory Notes (SP Bill 60-EN), including a Financial Memorandum, and a Policy Memorandum (SP Bill 60-PM) were published with the Bill. Under rule 9.6 of the Parliament's Standing Orders, the Parliamentary Bureau referred the Bill to the Enterprise and Culture Committee ("the Committee") to consider and report to the Parliament on the general principles of the Bill. 2. The Subordinate Legislation Committee considered the delegated powers in the Bill at its meeting on 18 April 2006 and subsequently submitted its report to the Committee under Rule 9.6.2 of Standing Orders. The report is included at annex XXX to this report. 3. The Finance Committee considered the financial memorandum at its meeting on 25 April 2006 when it took evidence from the Scottish Executive. It also considered written submissions from VisitScotland and the Convention of Scottish Local Authorities. The Finance Committee’s report is included ay annex XXX to this report. Purpose of the Bill 4. According to the Scottish Executive's Explanatory Notes, the purpose of the Bill is to abolish the existing network tourist boards establishing under the Local Government etc. (Scotland) Act 1994, to change the statutory name of the Scottish Tourist Board to its operating name, VisitScotland, and to increase the maximum number of members of its board. Evidence 5. The Committee called for written evidence on the Bill and received only two submissions, one from the Convention of Scottish Local Authorities (COSLA) and one from VisitScotland. Subsequently, the Committee took oral evidence from the
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EC/S2/06/16/4 Scottish Executive's team of officials working on the Bill and from the Minister for Tourism, Culture and Sport ("the Minister"). 6. The Committee recognises that the matters covered by this Bill were explored in depth during the course of its inquiry into the Executive's review of area tourist boards 1 and that this Bill seeks to establish on a statutory footing the changes implemented at an operational level following that review. CONSIDERATION OF THE BILL Adequacy of the Scottish Executive's Consultation 7. The Bill was prepared following an open consultation process; twenty-seven written responses were received to the consultation document, Tourism is Everyone's Business 2 . 8. In general, the proposals were well received. Concerns raised by VisitScotland about the transfer of staff and liabilities to it on dissolution of the existing network tourist boards were resolved in the drafting of the Bill. The policy memorandum also refers to requests made in some responses for reserved places on the board of VisitScotland for representatives of local government and the tourism sector but explains that this has not been incorporated into the Bill as doing so "would not comply with the Commissioner for Public Appointments in Scotland’s code of practice on Ministerial Appointments to Public Bodies". 3 9. The Committee believes that the consultation process followed in relation to this Bill was adequate and is satisfied with the explanations given by the Executive in its policy memorandum. Abolishing the network tourist boards 10. In order to enable VisitScotland to operate as a single legal entity, the Bill removes the statutory requirement for area tourist boards and dissolves the two existing network tourist boards, transferring their liabilities and staff to VisitScotland. 11. The Executive's policy memorandum explains that the objective of establishing a single legal entity is to deliver an integrated network for joined-up public sector support for the tourism sector and that, in practice, this was achieved when the 14 former area tourist boards were dissolved in 1995 and replaced by the two network boards; although legally separate, these new boards and the Scottish Tourist Board "have effectively functioned as a single, national tourism organisation" 4 .
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Enterprise and Culture Committee, 3rd Report, 2005 (Session 2) – Restructuring Scotland's Tourism Industry: Report on the Review of Area Tourist Boards. 2 Scottish Executive, Tourism is Everyone's Business, http://www.scotland.gov.uk/Publications/2005/09/tourism-consultation/contents 3 Scottish Executive, Tourist Boards (Scotland) Bill – Policy Memorandum, SP Bill 60-PM, paragraphs 15 – 19. 4 Scottish Executive, Tourist Boards (Scotland) Bill – Policy Memorandum, SP Bill 60-PM, paragraph 4.
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EC/S2/06/16/4 Name change for the national tourism board 12. The Executive's policy memorandum explains that, following the review of area tourist boards in 2001, it was recommended that the organisation should be renamed and operate as "VisitScotland"; the body has been operating under that name but its legal identity has remained the Scottish Tourist Board. In oral evidence to the Committee, the Minister explained the Executive's position further— "We think that the Scottish Tourist Board name belongs in the past. The VisitScotland name emphasises the way forward for tourism in Scotland and the brand is already established as an easily recognisable and trusted brand by visitors and businesses alike. The bill is not about changing the way in which the integrated tourism network works—it is already working well, and I am confident that it will continue to bring benefits to Scottish tourism—but it is about consolidating the integration process and putting the integrated network on a proper legal footing." 5 Increasing the size limit of the VisitScotland board 13. The Bill would also raise the statutory limit on the number of members of the VisitScotland board from seven to 12. The policy memorandum explains that increasing the number of possible members will enable "additional expertise to be brought to the Board to reflect the broader role and responsibilities of the new organisation, particularly in relation to the partnership role of the tourism network across Scotland" 6 . The memorandum also states that it is the Executive's policy that the board should nonetheless be "as small as possible and not exceed a maximum of nine members in the foreseeable future" 7 . In oral evidence, the Minister explained that the Bill seeks to increase the maximum number to 12 rather than nine as doing so would give "flexibility to increase the board at a later stage, if that seems appropriate, without the need to revert to primary legislation" 8 . Conclusion 14. The Committee is content with the proposals of the Bill. REPORT BY THE SUBORDINATE LEGISLATION COMMITTEE 15. The Subordinate Legislation Committee considered the delegated powers in the Bill at its meeting on 18 April 2006 and its subsequent report to the lead Committee is at annex XXX. The Subordinate Legislation Committee approved, without further comment, one delegated power contained in the Bill, in section 5, as drafted. 16. The Committee agrees with the conclusion of the Subordinate Legislation Committee.
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Official Report, Enterprise and Culture Committee; 16 May 2006, c 3081 Scottish Executive, Tourist Boards (Scotland) Bill – Policy Memorandum, SP Bill 60-PM, paragraph 9. 7 Ibid. 8 Official Report, Enterprise and Culture Committee; 16 May 2006, c 3080
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EC/S2/06/16/4 POLICY MEMORANDUM 17. The Committee notes the contents of the Policy Memorandum and accepts that it provides adequate explanation of the policy intentions behind the Bill. FINANCIAL MEMORANDUM 18. The Finance Committee adopted level 2 scrutiny in considering the Bill, which involved seeking written evidence from organisations financially affected by the Bill, then taking oral evidence from the Executive Bill Team. The Finance Committee's subsequent report is at annex XXX. 19. The Finance Committee's report noted that costs that are directly related to the specific provisions of the Bill are minimal but that the Financial Memorandum set out the costs of merging the area tourist boards with VisitScotland and the Finance Committee concentrated primarily on those merger costs. 20. In its conclusions, the Finance Committee noted the responses it received on the costs of merging area tourist boards with VisitScotland and the assurance that the costs will not increase beyond £7.4m. However, given the pattern of increasing costs in the past, it recommended that similar reassurances be sought from the Minister and that the Minister be asked to ensure that the differing views expressed by the Executive and VisitScotland on the issues highlighted in the Finance Committee's report are reconciled. 21. The Finance Committee also concluded that the fact that area tourist boards had reserves that would cover their operating deficits should have been made clear in the Financial Memorandum to ensure the entire picture was being presented. It went on to welcome the assurance that these reserves will be ringfenced and recommended that such a reassurance be sought also from the Minister. 22. The Committee notes the recommendations of the Finance Committee and believes that the Scottish Executive should give the reassurances sought in its response to this report, clarifying the position where necessary. The Committee has no further comments to make on the Financial Memorandum. CONCLUSION AND RECOMMENDATION 23. The Committee recommends that the Parliament agree the general principles of the Bill.
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