 Y First Minister on Business has portfolio questions. I call the first question Linda Aviani. I see you now. Maith gaf i'r ddweud yr ysgolau ysgrifennu yng Nghymru. It will next meet the UK Government to discuss matters relating to the constitution. Yesterday, I met with UK Government ministers, along with my counterpart on the Welsh Government, Mark Drakeford and civil servants in the Northern Ireland Executive in the Joint Ministerial Committee on EU Negotiations. The meeting focused on UK frameworks, the EU withdrawal bill, migration and the involvement of the devolved administrations in stage 2 of the EU negotiations. I made clear that the constitutional future of Scotland and this Parliament is very much at stake in the process of EU withdrawal unless there are amendments to the withdrawal bill. I stressed that all the powers of this Parliament affected by withdrawal must stay devolved after Brexit. I also made clear that if it is possible to create a special arrangement between Northern Ireland and the European Union, recognising the special difficulties and status of Northern Ireland, there is no logical reason why Scotland should not have the same rights, and indeed it would be unacceptable for Scotland to be placed at any economic disadvantage. Will the minister next time he meets with his UK counterparts following on from the discussions in yesterday's debate express the shock of many in Scotland to find out that under the EU withdrawal bill they are refusing to safeguard Scotland's devolution settlement, but instead legislated for the right to amend the Scotland Act 1998, along with Tory Scottish MPs who consistently refused to safeguard Scotland's interests? It was disappointing last week to see those Tory Scottish MPs refusing to support the Scottish Government and Welsh Government amendments carefully thought through amendments with regard to Clause 11. Last night, to see a repeat of that situation in which amendment 158 was voted down, an amendment that would have made sure that UK ministers could not, by secondary legislation or by action, simply by a stroke of a pen, alter legislation passed through this Parliament. It is disappointing to see that. We have made it absolutely clear that we will not bring forward a legislative consent motion unless there are similar or equivalent amendments to the bill. That is the number of the matter, and there can be no legislative consent motion without those significant and lasting changes to the bill. The Herald today reports on its front page that, at yesterday's JMC, there was, in fact, substantial agreement between the two Governments on the repatriation of powers from the European Union to this Parliament following Brexit. Yet, according to the Herald, rather than share this good news with the Scottish Parliament and, indeed, with the Scottish people, the SNP would rather keep it under wraps. Why? Does that not just serve to underscore yet again that the SNP would rather contrive grievance than get on with the job of delivering Brexit for Scotland? If Mr Tomkins had read the whole piece, he would have seen a significant statement from the Scottish Government, which said that this is not true. The exclusive tag on the story is an exclusive untrue story. What is more concerning about the story is that it may indicate that the Secretary of State of Scotland does not understand the process in which he is engaged, which is very concerning, indeed. The process in which we are engaged is to look at a list of 111 intersections between the European competence and devolved Scottish competence, and to make sure that those matters come to this Parliament. Then, of course—and we have made it absolutely clear—we can sit down and talk about those matters that should be subject to joint frameworks, co-decision making. It is not unless this is a new declaration of intent from the UK Government, it is not about re-reserving powers that should be in this Parliament. If Mr Mundell's briefing to the Herald is to be taken at face value, he believes that the actions that we are engaged in is about re-reserving powers and allowing the rest to come back here. That is at the nub of the matter. If the Secretary of State for Scotland does not understand the discussion that we had yesterday afternoon, it bodes ill to get a settlement. Fortunately, there are others around the table in the UK Government who understand it and are working to try to achieve that. I hope that that work will pay off, but I have to say that it is not helped by the Secretary of State for Scotland, who seems to think that his job is to brief the Herald rather than get a resolution. To ask the Scottish Government how it will compensate for decreasing levels of landfill tax revenues as the amount of waste to landfill decreases. Cabinet Secretary Derek Mackay As an environmental tax designed to divert material from landfill, encourage alternative waste treatment options and keep valuable resources circulating in their economy for longer, I would see declining landfill tax revenues a positive trend. It is also worth noting that the adjustment to the Scottish Government's block grants relating to landfill tax is also forecast to fall, which means that overall falling revenues do not necessarily lead to less spending power. Will Scottish rates for landfill tax continue to mirror UK rates, or will they diverge? As we were discussing over dinner last night, Mr Bowman—I do not know whose reputation that does more damage to your or mine—a very complex nature of the block grant adjustment, I hope that, across the UK and in Scotland, landfill tax revenues go down, because that will be an indicator that we are making progress in our environmental ambitions, and that will be good for the environment as well as for the economy. To ask the Scottish Government how it will ensure that sufficient funding is provided to local authorities to help them to meet the needs of their residents. The 2018-19 budget will continue to treat local government fairly, despite the cuts to the Scottish budget from the UK Government. It is then the responsibility of individual local authorities to manage their own budgets and to allocate the total financial resources that are available to them on the basis of local needs and priorities. East Remshire Council, in my region, is proposing in its coming budget to cut all classroom assistants in their primary and secondary schools and significantly reduce the number of behavioural support assistants. I accept that, if I ask the cabinet secretary what will be in tomorrow's budget, that he will ask me to wait till tomorrow, but does he accept that, without a significant change in policy from the Scottish Government, cuts such as that become impossible to avoid for councils? I have just glanced at the figures for East Dunbartonshire last year, or this East Remshire. I have looked to that as well, that is how I am a multi-talented am. I looked at East Dunbartonshire, thinking that Ross Greer would have an interest in that. Its increase was over 4 per cent, and East Remshire's was over 5 per cent. In every regard, both councils have done very well from our settlement to local government. Incidentally, both councils increased their council tax using their powers also. Touching on education is a really important point. I think that the pupil equity funding and the wider attainment funding has supported young people and pupils across the country, resulting in more teachers being employed, as well as addressing that crucial attainment gap. I can reassure Ross Greer that the local government settlement that I will propose will be fair and reasonable. He answered his own question. Full details will be released tomorrow. Can the cabinet secretary confirm that allocation of funding to councils will continue to be based on need, and there will not be an evening out process that might disadvantage the islands and Glasgow and those with greater needs? There is a very sophisticated needs-based formula for the local government settlement, which is arrived at in dialogue with the local government with COSLA. That said, there is also the floor and another technical arrangement that allows for stability and a degree of convergence around funding. Fundamentally, the answer is yes. The funding settlement for local government continues to be needs-based. Audit Scotland's recent report confirmed that local government funding from the Scottish Government had fallen in real terms by 7.6 per cent since 1011, demonstrating that the Scottish Government has enforced disproportionate cuts to local government. Can the cabinet secretary confirm that, since next year's block grant will again increase in real terms, there is no further justification for cuts to local government by the SNP Government? I do not know what is going on in the parallel universe that Alexander Stewart's mind with the rest of the Tories and their briefing notes. The reality is that the resource funding for day-to-day spending for the Scottish Government is going down by £200 million next year, £0.5 billion over two years. Do not just take my word for it. The Fraser of Allander institute says so. In terms of the previous period, it is also the case that our budget has gone down. It has gone down by £2.6 billion—that is 8 per cent in real terms. Over that period, we have protected local government as best we can. South of the border, where the Conservatives have been in control, the real terms reductions to local authorities in England has been over 20 per cent, showing that we have treated local government in Scotland fairly indeed. To ask the Scottish Government how it will ensure fair and adequate funding for all of Scotland's local authorities. The 2018-19 draft budget will continue to treat local government fairly despite the cuts to the Scottish budget from the UK Government. Local government allocations are distributed using a needs-based formula that has kept under constant review and agreed with COSLA. Lewis Macdonald I thank the cabinet secretary. He will recognise that that funding formula that he referred to previously has tended to disadvantage certain councils, including, for example, the city of Aberdeen and that provision has been made in the previous Parliament through the floor funding that he referred to in reply to Mr Mason, through that floor funding to reduce that disadvantage. Is he able to confirm today that that funding floor is set to continue? Will he now achieve the target of 85 per cent of the Scottish average, which was set for it some years ago? Lewis Macdonald is right to say that there is the needs-based formula, there is the ability for councils to raise council tax, then on top of that for Aberdeen, there has been an 85 per cent floor. Incidentally, the Labour Party never gave to Aberdeen or the north-east when they were in power, but it has been established by the SNP Government, and I am sure that Lewis Macdonald, as will many other members of the chamber, will welcome the local government settlement when they see it tomorrow. Murdo Fraser Thank you, Deputy Presiding Officer. Given that the Scottish Parliament information centre has confirmed that the Scottish Government's budget is going up in real terms from this year to next, given that yesterday, when it published its economic commentary, Fraser of Allander said notwithstanding the cabinet secretary's comments that the Scottish Government's budget is going up in real terms over the next three years. The total budget is going up over the next three years. Would the cabinet secretary agree that there is no case to make any further real terms cuts to local government spending? The Cabinet Secretary for Rural Affairs and the Constitution Can I just remind members, Mr Fraser, that I do not like props? Appropriately rebuked, I would say, Presiding Officer. The prop that Murdo Fraser has chosen to use is one such prop. I do not know why they want to ignore and dismiss the advice of the Fraser of Allander Institute. Are you suggesting that the Fraser of Allander Institute, in terms of what they have said about discretionary spend, so that is the resource for day-to-day public services? That is what funds schools and hospitals and police and fire and front-line local government services. I know that Murdo Fraser is far more intelligent than he is pretending to be in this chamber this afternoon. Murdo Fraser, like the rest of the Conservatives, knows only too well that you have cut that discretionary funding to Scotland. That is the reality, but the Tory briefing knows that it does not say so. Just like Pavlov's dogs, they follow the merry tune that we have extra resources when, in fact, our resources for front-line discretionary spend has gone down by £200 million next year and £1.5 billion over two years. Can I remind members that this will be debated this afternoon, so we do not have to reprise it all now? I have question 5 from Jeremy Balfour. Thank you, Deputy Presiding Officer. To ask the Scottish Government, in light of the UK Government's decision to do so, whether it will win forward the linking of non-domestic rates to CPI from April 2018 to 2020. That is a good question, and I will give you the answer tomorrow in the draft budget. Jeremy Balfour. Can I thank the cabinet secretary for his very full answer? I would agree that linking pounds to CPI would result in rates being more than a penny lower in just three years' time, saving the average stock hundreds of pounds in tax, and an age of increasing competition from online retailers. Does my cabinet secretary agree with me that we need to do all that we can to help us to struggle in stocks on the high street? I certainly agree with the sentiment of the question. A number of businesses have made the switch from RPI to CPI as the main ask of the budget tomorrow. The Barclay review also said that there is an argument to move from RPI to CPI, but in Barclay's view, it was at this stage unaffordable. I have been reflecting on that in many other matters, and I say again to the member that I will present my proposals to Parliament tomorrow. Willie Coffey. Can I ask you what proportion of rateable properties do not pay rates as a result of the small business bonus? Can you confirm that those businesses that qualify for that scheme will continue to benefit from it next year? As it stands today, about half of all properties in Scotland pay no rates whatsoever. 40 per cent of all properties are a consequence of the small business bonus, and I have said that the small business bonus will continue. Neil Findlay. My understanding is that we are supposed to be in an era of evidence-led policy. Can I ask the cabinet secretary for finance when he will have a proper independent analysis of the small business bonus? I believe that the small business bonus has been a lifeline, particularly to our town centres across Scotland in ensuring that smaller businesses have that relief in what has been quite turbulent times. Indeed, when I launched the last budget in terms of non-domestic rates, the property that I visited in Paisley was using the relief that they were now entitled to employ another young person. Surely Neil Findlay would welcome that kind of initiative, delivered through the small business bonus. To ask the Scottish Government what representations it received from local authorities regarding the draft budget. Cabinet secretary. Ahead of my 2018-19 draft budget announcement, I have met a number of individual council leaders and had a series of meetings with COSLA. Many local authorities in my region are facing severe financial pressures and unique rural and logistic demands. My local council Highland has a responsibility for 6,752 km o rhod, 17,000 footpaths and 1,400 bridges, and that is not counting the new home mill's bridge that opened on Monday. Will the cabinet secretary look again at the Scottish Government's funding formula and give more leeway to rural local authorities, which cover great swathes of Scotland such as Highland? I would only consider a change to the formula if COSLA, i.e. local government, wanted me to. Will that not be welcomed by members in the chamber who believe in partnership and engagement with local authorities? They determine the funding formula, there is partnership working on it and I do not propose to change that. Of course, if I did more for rural areas, urban councils would say that there is an argument around deprivation and every council, all 32 out of 32 council leaders, could present a case on how the formula could be changed to suit them. That is why we do it collectively in partnership. I propose to maintain that structure and, incidentally, Highland Council, as an example, of course, if you look at the totality of resources to support local services, also enjoyed a real-terms increase in the current financial year. Question 7, Kenneth Gibson. Thank you, Presiding Officer. To ask the Scottish Government by how much PFI, PPP payments will increase in 2018-19. Given such payments, an index-link bonds include charges that increase with inflation. Cabinet Secretary. The total estimated PFI urinary charge payments for 2018-19 will increase by almost £19 million, taking the total figure for that year to over £1 billion. Kenneth Gibson. I thank the cabinet secretary for that answer. Does he agree that inflation again exacerbates the year-on-year increases in charges, showing the folly of Labour, Lib Dem and Tory support for PFI? Cabinet secretary. Yes, it certainly is a burden that we have to live with, pay for and that is why our financial models have been much better for the public person for quality public services. Jackie Baillie. Presiding Officer, unitary charge payments applied to PFI, PPP and, of course, to NPT projects brought forward by the SNP Government. Last week, the Public Audit and Committee took evidence from the Scottish Government and the Scottish Futures Trust about changes to the classification of capital projects as a result of ESA 10. We now know that the Scottish Government has to borrow almost £1 billion to cover those projects, which are now on balance sheet. Does the cabinet secretary share my concern that this is an opportunity that lost and other capital projects have been delayed as a consequence? Cabinet secretary. Absolutely not true, and I look forward to setting out a very exciting, bold and ambitious and transformative capital investment programme tomorrow. I will take a very short one from Ivan McKee, question 8. To ask the Scottish Government what it is doing to ensure that departmental spend is delivering the most effective outcomes in terms of the national performance framework indicators. Cabinet secretary. Thank you, Presiding Officer. The national performance framework sets out the Government's priorities. The programme for government sets out the actions that the Scottish Government will take over the next year to progress those priorities, and the draft budget sets out the funding arrangements. The Scotland perform website is the reporting tool for the NPF. It provides a continually updated, impartial and transparent stocktake across a diverse range of economic, social and environmental indicators. In addition, to support the parliamentary committees in scrutinising the draft budget, we provide performance information to demonstrate the interrelationship between the Government's priorities and spending plans. I have my key briefly, please. The minister will be aware that the NPF is internationally acknowledged by a world-leading process for measuring success in public service delivery. Does the minister agree with me that content to ensure that the link between public sector spend and delivery of measurable performance is both the right approach and in accord with the principles that are determined by the Christy commission? Minister. Yes, I do. That is brevity for you. Now I move on to questions on economy, jobs and fair work. I call number one. It has not been lost for reasons explained. Number two, Fulton MacGregor, please. Thank you, Presiding Officer. To ask the Scottish Government how it supports local authorities in attracting businesses and jobs to town centres. Minister. The Scottish Government is committed to revitalising our town centres by stimulating inclusive economic growth and supporting opportunities to attract investment. We are working with local authorities to deliver plans that attract a range of businesses and services to town centres. That is supported by a number of initiatives, including the town centre action plan, which is helping to stimulate a wide range of activity in our town centres. The town centre action plan, two years on report, was published in February of 2016. The town centre first principle recognises that town centre locations are not always a suitable location, but it asks that the rationale for locating projects or investments elsewhere is evidenced and transparent. Scotland's town partnership, which has been funded to facilitate activity and share and promote learning from activity happening at a local level. In addition, Scotland's business rates package is the most attractive in the UK, with total rates relief of around £660 million in the current financial year, and more than 100,000 premises benefiting from a small business bonus scheme, including more than 4,000 in North Lanarkshire. Fulton MacGregor. I thank the minister for that response. Just last week, I held the second in my series of town centre regeneration meetings for Coatbridge town centre. There is a lot of goodwill towards the town centre and a strong desire for it to thrive again, but no single stakeholder seems to have the levers or strategy to make all the necessary changes. Can the Government advise what measures are in place to help communities, including local authorities, elected representatives, parliamentarians, local businesses, community groups, private owners and other stakeholders, to form strategy groups interested in working together to improve town centres? Can I remind everyone that it is useful to have short questions and sort of succinct answers, if I may? Yes, minister. Thank you, Presiding Officer. In response to Fulton MacGregor, clearly I know that the Parliament has a cross-party group that focuses on those issues, but aside from that one way in which parliamentarians can engage in the agenda, I refer to it briefly in my original answer. Scotland's town partnership is an excellent source of advice and information for newly established strategy groups to identify the next steps for town centre improvements, and we have established STP as the go-to body for all town centre activity in Scotland, as we recognise the need for dedicated support for town centres. The town centre toolkit that is hosted on the STP's website gives communities information and advice on how they can make their own town centres more attractive, active and accessible. Strategy groups may also wish to use the understanding Scottish Places or USP data tool, which is an online platform, again designed to help users to better understand the function of towns in the modern era and to provide the opportunity to compare and contrast towns across Scotland to learn from good practice. I do not know what succinct means any more. I call Dean Lockhart, please. I will try my best, Deputy Presiding Officer. I note the series of measures explained by the minister. Can he explain why does Scotland have the highest number of empty shops in the UK? Could it be business rates? Could it be the large business supplement? We refer to the fact that we have a competitive business rates package in Scotland, and we are taking every effort, as has been demonstrated by the Cabinet Secretary for Finance, to listen to representations that have been made to the Barclay review, to tailor the rates package that we have. Obviously, the budget tomorrow will set out more detail of the Government's plans to support businesses at a local level. However, we have a wide range of tools in our locker to be able to help small businesses. We encourage businesses through support for the enterprise and skills review to engage with enterprise agencies and to gain support. However, clearly, there is a range of measures in which the Scottish Government attempts to help small businesses and our town centres. The advice that I have given to Mr MacGregor and the points that we set out in the budget tomorrow is a complete package of support to help small business community. To ask the Scottish Government what discussions it has had with the UK Government regarding European structural funds and regional policy after Brexit. I met David Mundell, Secretary of State, for Scotland on 7 December, and asked him to confirm the UK Government's position on whether it was committed to supporting deals across Scotland and for engagement on the industrial strategy. I had a discussion with Greg Clark, Secretary of State for Business, Energy and Industrial Strategy on 16 November, and I also discussed the industrial strategy that laid to the Scottish Business Growth Group meeting on 15 November with Ian Duncan. As for the European structural funding, I met the economy's economic secretary to the Treasury Stephen Barthley on 6 October, when I stressed how vital it is that sustainable replacement for the funding is put in place. I will continue to press the UK Government to engage with us so that we can deliver the best outcome for Scotland. Whatever form these arrangements take, the UK Government must provide Scotland with no less than the current level of funding that we receive and the autonomy over that funding to align it to Scottish priorities. I commend the cabinet secretary on his workload. I wonder if he would agree with the Industrial Communities Alliance that older industrial Britain, which does not just include Scotland but the north of England and the midlands and elsewhere, has benefited greatly from the structural funds and would have a real problem if the UK did not continue them? I agree with that. There has been £395 million of European structural funding already committed, matched by more than £500 million from Scottish partners, giving a total investment of £900 million. As John Mason says, that is crucial to those communities that he has talked about. I join many of those who are benefiting from the support on 29 November in Edinburgh to celebrate and promote the progress of projects to date. I heard about, for example, Zero Waste Scotland using £30 million in grant to support the resource-efficient circular economy accelerator to programme, supporting over 2,000 SMEs and the community sector. It includes projects such as the one at Sustainable Papaw Estuary, an ordinate to restore the community centre, and the little bakery in Dumfries to replace an inefficient bakery oven. Details of the second phase of funding will be announced in the new year. To ask the Scottish Government how it encourages employers to pay at least the living wage to those under 25. Accredited living wage employers who pay the real living wage are paying this to all staff 18 years and over. In Scotland we have now proportionately more than five times as many accredited living wage employers in the rest of the UK, which is testament to this Government's commitment to making Scotland a living wage nation. We are supporting the poverty allowance by increasing funding for the Scottish living wage accreditation initiative to £336,000 this year, and we are working with them and their leadership group to support their efforts to target low-pay sectors. I thank the minister for that answer. Could he also outline what discussions the Scottish Government has had with the UK Government in relation to including those under the age of 25 in the national living wage, given that they continue to be discriminated against by that Government? Could he also outline what actions the Scottish Government is taking forward to support young people into positive destinations, especially in light of the year of young people next year? On the three issues that Mary Gougeon has identified, the Scottish Government has ensured that the Scottish welfare fund can be used to help young people affected by changes to housing benefit entitlement, which we have opposed. In relation to the national living wage, I think that the first thing to emphasise is a contract. It is not the living wage set out by the living wage commission. Nonetheless, it is a statutory process. The Government has, in its responses to the low-pay commission, set out proposals to decrease the differential between the youth and apprentice rates and the adult rates, but we want to see the real living wage to the norm across the board. That is why we set that out as our proposal to make it a statutory proposition in our general election manifesto. That is why we continue to promote it. Ross Greer Does the Scottish Government require companies to pay the living wage to all workers, regardless of age, if they wish to receive funding from the Scottish enterprise agencies? If not, why not? We are working actively with our enterprise agencies to make sure that they are playing their part in the promotion of the real living wage. It is an effort that we take very seriously. Indeed, it is one that we are leading from the front as an administration, and it is paying dividends. That is why Scotland has the highest proportion of its working-age population of any of the UK nations paid living wage or more. Mark Griffin To ask the Scottish Government what plans it has to create targets with specific deadlines to reduce the disability employment gap. minister In a fairer Scotland for disabled people, published in December 2016, the Scottish Government set a target to at least half the disability employment gap. We are working with stakeholders to develop a timetable, along with further actions to be taken to achieve our ambitions for disability employment. We will set out more detail at the major congress on disability employment in the workplace that it plans for early next year. Mark Griffin I thank the minister for that answer. Looking ahead to the new devolved services, I can ask what on-going engagement he has had with the third sector since the decision was made to award just 20 per cent of the contracts to bids led by the public and third sector. Is the minister assured that the supply chain providers can afford to deliver such a high-quality service when the private sector has such a substantial role? Of course, it is the case that our new employment programme, Fair Start Scotland, which will begin in April 2018, is delivered by a range of partners. Contrary to the impression that Mark Griffin has just given to the chamber, when we look at the global value of the contracts awarded, the nine contracts awarded to some 95 per cent of the value of those contracts involved, the third sector either as the main contract holder or as a delivery agent of a main contract holder. The third sector has a significant role to play here. I am confident of that. I am confident that our programme will be a success. Of course, I continue to engage with the third sector and all those who have an interest in ensuring that people get the chance to get employment in Scotland. The minister mentioned the new transitional employability services of the Scottish Government. Work for Scotland and Workables Scotland in their first six months have helped more than 3,500 disabled people into work. Does the minister agree with me that that is both effective in dealing with disabled people in a dignified way? Of course, our ambition has been, through our transitional arrangements and our longer-term approach, to ensure that all people who utilise our employment programmes are treated with dignity and respect, irrespective of whether they have a disability or not. Of course, we set out an ambition of supporting up to 4,800 people into work through our transitional programme this year. As Clare Adamson has just correctly pointed out, we are halfway through that initiative. Already, we have had some 3,500 people supported by that effort. To ask the Scottish Government what action it is taking to increase workforce productivity. Cabinet secretary. Scotland's labour productivity growth has outstripped the UK's in recent years. GDP per hour's work has increased by 6.6 per cent in Scotland since 2007 compared to 0.8 per cent for the UK as a whole. The Scottish Government recognises that improving the productivity of a workforce is a central driver of inclusive economic growth, and that is why we are taking forward a range of programmes such as investment in skills, developing a young workforce, addressing inequalities in a workforce and the fair work agenda. Through the enterprise and skills review, we have also established a clear forward looking agenda to improve the system of enterprise and skills support in Scotland and make a substantial and valuable contribution in increasing our productivity and broader economic performance. I hope that those actions and the progress thus far will be welcomed by the member. Brian Whittle. I thank the cabinet secretary for that answer. He will be aware that the impact of poor physical and mental health has on productivity and therefore strategies, such as the mental health strategy, obesity and diet strategy, can have huge implications on the nation's productivity. With that in mind, what input does the cabinet secretary's team have across other portfolios? We have the regular contributions at cabinet level among cabinet colleagues and also between ministerial colleagues. I would say that the mental health strategy is much more in the portfolio of my colleague Maureen Watt. I am happy to furnish a member with answers to it, but he can be assured that there is regular collaboration between cabinet ministers and ministers across portfolios. Thank you, Deputy Presiding Officer. On declaring an interest as a farmer to ask the Scottish Government what discussions it has had with the UK Government regarding establishing schemes that aim to attract more seasonal, skilled labour across all sectors to Scotland, such as the former seasonal agricultural workers scheme. The UK Government's position on migration post-Brexit is likely to have a major impact on the availability of labour, not just on seasonal, skilled workers but across the board for high and low-skilled jobs. That is one of the reasons why the Scottish Government is lobbying the UK Government hard to maintain membership for the single market with its associated free movement of citizens. Scotland values the contribution of temporary workers in the migrant community to make to our economy and we are determined to do what we can to continue with the current arrangements. John Scott I thank the minister for his answer. The minister is aware that there is an emerging difficulty in attracting skilled labour to work in our food processing, tourism and agricultural sectors, as well as other sectors. How does he intend to address that? It is now clearly defined and growing problem, currently driven by the fall in value of the pound against the euro, which threatens to undermine the future success of our tourism and our food and drink sector. The minister I have to say that I am rather surprised that this question comes from the Conservative benches, given that the great pressure has been caused as a result of their shambolic handling of the Brexit process. As I have set out in my initial answer, we continue to lobby the UK Government hard to ensure that we can continue to access the skilled labour that we will require for economy from elsewhere in Europe. Of course, we cannot just rely on that. We certainly cannot rely on the UK Government in that regard. That is a matter that I take very seriously. I note one that also Fergus Ewing, the current Secretary for Rural Economy, considers very seriously through engagement between sectors, skills councils and Skills Development Scotland. If there is more that can be done to ensure that we have the skilled workforce that we need for those sectors, we will work towards that in that regard. I am seeing some examples of that already. I was up in Argyllun Bute recently, where I saw the local college engaging actively with the agricultural community to make sure that skilled supply of workforce can come through in the future. I apologise for my slight later arrival for the question time, but I ask the Scottish Government what immediate action it is taking to support the economies of Orkney and Shetland. This Government is committed to promoting economic growth across all of our communities, including those in Orkney and Shetland. Our substantial investment in infrastructure, regeneration and business support helps to deliver inclusive growth and economic resilience, creating and retaining jobs in communities across the Northern Isles. For example, the 2016 SNP manifesto contained a commitment to take action to reduce fares on ferry services to Orkney and Shetland, and the Government is delivering on that commitment. That is our priority. On 22 August, the Minister for Transport and the Islands announced her intention to introduce reduced passenger and car ferry fares on services in the mainland to Orkney and Shetland in the first half of 2018. The fares options identified, in line with the Clyde and Hebrides ferry network, are road equivalent tariff on the Pentland Firth routes and a variant of RET on the longer Aberdeen to Kirkwall Lerwick routes. The average reduction in fares across the Northern Isles will be more than 30 per cent for cars and 40 per cent for passengers. Liam McArthur I thank the cabinet secretary for his answer and certainly acknowledge and welcome the decision, albeit related to cheaper ferry fares on the external routes. However, as a former transport minister, he will be aware that crucial to the local economies of Orkney and Shetland are our internal ferries, a lifeline to the smaller islands in both constituencies. So when will the Scottish Government honour the commitment that it made in 2014 to provide fair funding for those lifeline services? Cabinet Secretary for Transport and the Islands We have, as the member mentioned, made that commitment. In fact, it was made as long ago as when I was a transport minister directly to the councils involved. Of course, that is being followed through by the transport minister in a matter of discussion between the transport minister and the finance cabinet secretary in relation to the discussions that they have had with the relevant local authorities. I think that it is right that those discussions are allowed to take place. Of course, the particular needs of the islands in terms of their internal ferry services are matters that have been quite rightly the preserve of those islands' authorities. The extent to which we would like to see further support in the Scottish Government is rightly a discussion between those parties involved. It may be that it depends on how the budget discussions go and that further progress can be made in relation to that, but that would be for the Cabinet Secretary for Finance to talk about in his budget proposals and, of course, for the opposition parties to play a part in that to make their own suggestions and see where they can support the Scottish Government's budget. Given that the Cabinet Secretary for Finance's protestations during and since last week's debate on ferry funding for Orkney and Shetland's internal ferries, can the cabinet secretary confirm that it is still normal protocol for the Scottish Government to put Scottish Government commitments into the Scottish Government's own budget rather than relying on opposition parties to do so on their behalf? I think that another member was not here at the start of this parliamentary session, but this is a minority Government. This is a Parliament of minorities. In that context, just as at Westminster, people have to have discussions and sometimes even make compromises. That is why it is important that the opposition parties play their full part in the budget process. I think that the implication of the question from the member is that that party wants to play no part in the budget process of this Parliament. That is their entitlement, but I think that they will lose out, as will their local electors, for not taking part in the process. Question 9, Colin Beattie. To ask the Scottish Government what progress it is making in improving productivity across the country. Scotland's labour productivity has, as I mentioned previously, outstripped the UK's in recent years. The most recent data shows that GDP per hour worked has increased by 6.6 per cent in Scotland since 2007 compared to 0.8 per cent for the UK. We have also improved our ranking against other OECD countries in that time. We believe that all areas of Scotland will make a vital contribution to improving our productivity. That is why we are working with partners across Scotland to improve our performance. For instance, we are making substantial investments in improving transport connectivity across the country. We have committed up to £1.08 billion over the next 10 to 20 years for city deals in Glasgow, Aberdeen, Inverness and Edinburgh, the biggest funder of city deals in Scotland. We are working with other city regions to develop proposals and have committed to establishing new regional economic partnerships representing every community in Scotland. I thank the cabinet secretary for his response. Will the cabinet secretary agree that, without such an improvement in productivity, income levels in Scotland may well not develop to the extent that we would like to see? I think that that is true. I think that improving our productivity is central to delivering sustainable and inclusive economic growth and to increasing wages and incomes across Scotland. That is why we are taking the actions that we meant. There are vital components of increased productivity relating to innovation, to management capacity and to the skills of our workforce and to the investment that the Government makes when we are trying to take action forward on all those fronts to increase productivity.