Friday 18 September 2009

WELCOME FOR OPPOSITION CO-OPERATION ON BUDGET PROCESS



WELCOME FOR OPPOSITION CO-OPERATION ON BUDGET PROCESS

ALL PARTIES MUST BACK FURTHER CAPITAL ACCELERATION

Signs of opposition co-operation in the budget process have been welcomed by the SNP who have called for all parties to use this consensus to back the Scottish Building Federation’s call for capital to be accelerated into this year’s budget in order to maintain investment in the housing and construction sector.

In response to the Scottish Budget the Scottish Building Federation’s Michael Levack said:

“The accelerated capital expenditure included in this year’s budget was badly needed and is helping to sustain the construction industry through some particularly lean times. But as we start to make the first tentative steps towards recovery, to turn off the spending tap next year would be an absolute disaster.

“In the period of tough negotiation between Holyrood and Whitehall which is bound to follow today’s announcement, I hope both sides can put politics aside and recognise the overriding importance of prioritising continued spending on major capital projects to deliver sustainable economic recovery and to prevent a second slump in the building sector.”

On Newsnight Scotland last night all opposition spokespeople indicated they would work with the Scottish Government over the next four months to reach a consensus on the budget, with Labour’s Andy Kerr saying:

Negotiating through the media doesn’t get us anywhere, I’ve given my critique of the official budget and I’m going to work with John Swinney to see whether we can come to some agreements around big issue items that we see as important around jobs, the economy and services.”

SNP MSP and Finance Committee member Joe FitzPatrick welcomed the mood of co-operation as he called for the first step to be a united call on the UK Government to allow Scotland to bring forward capital to prevent a slow down in housing and construction.

Dundee West MSP Mr FitzPatrick said:

“I welcome the opposition parties positive response to John Swinney’s call for all parties to co-operate and work together to deliver a budget for economic recovery and public services.

“The Building Federation has called for parties to put politics aside in the negotiations with Whitehall over capital investment.

"As the first sign of co-operation I urge all parties to back that call and join the Scottish Government in asking the UK Treasury to free up Scotland's hands and allow capital to be brought forward for investment in construction.

"Bringing forward capital in lean times for the housing sector was badly needed last year. Those lean times are not over yet and it is essential the Scottish Government is able to take the same action again.

“Until banks start lending and house buying increases it is essential the Government fills the gap with investment in social and affordable housing.

“Labour’s commitment, alongside the Conservatives and Lib Dems to join discussions with John Swinney not to negotiate in the media is a welcome step forward.

“The Scottish Government has faced tough decisions as a result of funding cuts from the London Government. John Swinney has faced up to those difficult but necessary choices - it is now for opposition parties to recognise that and to work in the spirit of consensus the public expect.”

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