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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 29 June 2025
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Displaying 3510 contributions

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Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 September 2023

Kenneth Gibson

Thank you very much. That concludes questions from the committee. Are our witnesses happy to make any further points to the committee on something that has not been covered? If you feel that we have not asked anything that you would like to mention, now is your chance.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 September 2023

Kenneth Gibson

Thank you very much for those final points, which are much appreciated, and for taking the time to give evidence to the committee. We will continue to take evidence on the draft order next week when we will hear from the Minister for Community Wealth and Public Finance and take a decision on whether we ought to approve the order.

That concludes the public part of today’s meeting. The next item on our agenda is consideration of our work programme.

11:58 Meeting continued in private until 12:05.  

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 September 2023

Kenneth Gibson

Business might move but, with less than 4 per cent unemployment in Scotland, why would workers move to an area if their wages were to go lower? Would they not just get a job somewhere else? Surely, 75,000 people will not move into those zones to get lower wages. It is not really credible that people will move to accept lower wages in an economy where there already are chronic labour and skills shortages, is it?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 September 2023

Kenneth Gibson

That assumes 100 per cent displacement, however, and I thought that the whole point of the green ports was to create new, additional jobs.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 5 September 2023

Kenneth Gibson

A quick wee calculation off the top of my head tells me that, if there are 18,000 top-rate taxpayers, they each pay an average of just under £140,000 a year. That is a very interesting section of the tax-paying public indeed.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 5 September 2023

Kenneth Gibson

You say in paragraph 26 in annex A of the report:

“The variation in tax revenue generated by the highest earners is likely to continue to be a source of significant uncertainty and forecast error, with very limited data available on this group. In the future, HMRC’s MTD project may improve the situation.”

You then say:

“To continue to improve our forecasts, we will focus on better understanding what determines changes in tax revenues of the highest earners.”

That brings us back to page 3, where you mention “points for improvement”. I take it that that is one of the areas that you are talking about in that respect. What specifically will you be able to do, given the paucity of data with which to improve forecasting in this volatile area?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 September 2023

Kenneth Gibson

Derek, you talk in your submission about some 75,000 jobs. I have to be honest and say that the numbers seem quite fantastical to me. What are your concerns regarding displacement? When previous Governments have introduced enterprise zones, there have been concerns that they have simply moved jobs from one part of the country to another part. Obviously, that is particularly acute in areas that border such zones, including, in this case, green freeports.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 5 September 2023

Kenneth Gibson

The next item on our agenda is an evidence session with the Scottish Fiscal Commission on its “Forecast Evaluation Report” and its paper on “Productivity and Fiscal Sustainability”, both of which were published on 29 August 2023.

I welcome from the Scottish Fiscal Commission Professor Graeme Roy, chair, Professor Francis Breedon, commissioner, and Claire Murdoch, head of fiscal sustainability and public funding.

I intend to allow up to 75 minutes for this session. Before we open to questions from the committee, I invite Professor Roy to make a short opening statement.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 5 September 2023

Kenneth Gibson

You are absolutely right. That is, of course, a policy choice, and I am not asking you to make such policy choices, because you would demur if I did so. However, it is interesting that you have touched on the situation with the current devolution arrangements and have said that we would have to change public spending or tax policy. What would we have to change to bring the finances into long-term sustainability?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 September 2023

Kenneth Gibson

Colleagues will press some of those issues further as we progress through the meeting. I do not want to hog the whole meeting. The first colleague to ask questions will be Ross Greer and he will be followed by John Mason.