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Displaying 2063 contributions
Finance and Public Administration Committee
Meeting date: 5 March 2024
Michelle Thomson
That is helpful. Thank you.
Finance and Public Administration Committee
Meeting date: 5 March 2024
Michelle Thomson
I have just one small question, which arguably follows on from those of the convener and Michael Marra. Mr Doak, in your submission, you noted that
“Significant behaviour change is unlikely unless the Scottish Government decides to change the rate drastically, and even then there isn’t an obvious supply of alternative materials available.”
I know that Mr Marra has been touching on this, but I am still not sure that I have a clear sense of it. Mr Marra made a good point about red chips and aggregate that is specific to Scotland, but I am still not clear on the detail of different aggregate types and what overall potential price increases they could stand, although, as everyone has said, there are no plans for that on the table.
I wonder whether you could help me understand a bit more. As you point out correctly, English producers might be keen to exploit any substantial rate increases in Scotland; we all understand that. However the devil surely must be in the detail. I know that we have danced around the issue a bit with two separate questions, but if you could help me understand a bit more, that would be helpful.
Finance and Public Administration Committee
Meeting date: 5 March 2024
Michelle Thomson
You are talking about secondary aggregates. That is what I was misunderstanding.
Finance and Public Administration Committee
Meeting date: 5 March 2024
Michelle Thomson
Good morning. I will follow up on a point that Liz Smith made. I have raised with the Deputy First Minister a question about inefficiency related to the annual budget process and significant in-year changes. It seems to me that that must incur a significant amount of sunk costs in redoing and repositioning things, and so on. Am I right in having that perception, and is it also your perception?
Finance and Public Administration Committee
Meeting date: 5 March 2024
Michelle Thomson
You have set out what I thought, and very clearly. I suppose the point that I am making is that there is a cost to the inefficiency. If you were working in a law firm, you would itemise every hour to say what goes to this client and what goes to that client. Have you ever considered collecting the cost of inefficiency as fiscal events occur, and of late notification? A number being put on that inefficiency could very well be quite compelling.
Finance and Public Administration Committee
Meeting date: 5 March 2024
Michelle Thomson
I will watch that with interest.
My last point comes back to a question that I previously asked you about police pensions and the extent to which the increase in them—and, therefore, provision for them—came about a result of Covid-19. I thank you for your reply, in which I think you pointed out—and I am paraphrasing here—that that was not due to Covid-19 but was the result of the move from a final salary to a career average pension scheme. The legal challenge in that respect will also apply to other public sector professionals such as teachers, because they face the same issue, but the fact is that we have seen a difference with regard to the rate at which police officers are retiring. As a result, the change to the provision—compared with that of, say, teachers—was not necessarily entirely due to the change to the police’s pension arrangements, given that it did not equally apply to teachers. Do you have any reflections on that?
Finance and Public Administration Committee
Meeting date: 5 March 2024
Michelle Thomson
You are correctly introducing another complexity for the bill, but that is good because that is what we want to tease out. Have we got the data to draw on to arrive at some of these decisions? I am not sure what data your members will routinely gather and submit as part of the existing processes that tease out all the different areas that the Scottish Government will have.
Finance and Public Administration Committee
Meeting date: 5 March 2024
Michelle Thomson
Maybe it does. I am not trying to get to any slam dunk; I am genuinely trying to understand. You have given me more helpful insight, although I suspect that I have further to go to bottom out some of this stuff. Thank you.
Finance and Public Administration Committee
Meeting date: 5 March 2024
Michelle Thomson
Thank you.
Finance and Public Administration Committee
Meeting date: 5 March 2024
Michelle Thomson
I will finish by noting some of the examples that you have given and pointing out that such additional post-Covid sums were exceptional—I think that we all appreciate that. Now that, with the recent changes, we have a more bedded-down fiscal framework, we have actually baked in some of these inefficiencies, and we need to try to understand what they might look like.
I have one other question that follows on from that. In reality, to what extent will the complexities, uncertainties and inefficiencies in the Scottish and UK Governments’ fiscal framework be reflected in the fiscal framework that is developed for local councils through the Verity house agreement? In other words, will they, at an even deeper level than might have been the case before, be saying, “This is no use to us, because it doesn’t allow us to plan”? Do you expect that what you as a Government are dealing with will, in effect, be replicated in that way?