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A PARTNERSHIP FOR A BETTER SCOTLAND: PARTNERSHIP AGREEMENT

GROWING SCOTLAND'S ECONOMY

ENTERPRISE AND LIFELONG LEARNING

Introduction

Growing the economy is our top priority. A successful economy is key to our future prosperity and a pre-requisite for building first class public services, social justice and a Scotland of opportunity.

We will use the powers of the Scottish Parliament to create the conditions for higher growth. We will support businesses to grasp the opportunities of the new economy. We will value enterprise, promote an entrepreneurial culture and recognise the need to support risk-taking as a means of growing the economy.

We will increase investment in research and development and promote its commercialisation in Scotland. We will encourage a culture of enterprise. We will drive up Scotland's skills base. We will make this growth sustainable, in particular taking advantage of Scotland's resources to grow our renewable energy industries.

We will work with the UK Government to maximise the conditions for economic growth in Scotland.

We will direct our support for enterprise in a way that encompasses all of Scotland's communities, both urban and rural.

We will promote Scotland as a good place to live and work, with a high quality of life which is attractive to fresh talent from around the world.

High level commitments

We will act to raise the long term sustainable growth rate of the Scottish economy. We will support the start up and growth of Scottish business, encourage and support our key manufacturing industries, such as aerospace, and nurture our financial services sector. We will support innovation and technology transfer to grow high value and high skills businesses with the potential for expansion.

We will work with Scottish businesses to improve investment in research and development and enhance productivity. We will seek an improvement in productivity levels in Scottish industry compared to our OECD competitors.

We will work in partnership with business and trade unions.

We will support the establishment of a focused annual Business Forum, bringing together Scotland's businesses and Scotland's politicians to develop ideas and maximise the drivers for growth.

We will make sure that every pupil has the opportunity to learn entrepreneurial skills at school. We will expand the number of Scottish schools involved in Enterprise in Education from 10% to 100%.

We will work towards our target for 40% of Scottish electricity generation to be from renewable sources by 2020 as part of our commitment to addressing climate change. We will work with business to develop and implement a green jobs strategy.

We will significantly improve the skills base of Scotland to be better prepared to meet the demands of the knowledge economy. We will increase the apprenticeship programme to 30,000 places.

We will continue to increase funding to improve the quality and effectiveness of further and higher education within Scotland. We will increase the proportion of graduates in the workforce. We will review the eligibility criteria for student bursaries with a view to increasing the family income ceiling and review the maximum amount available. We will support a higher threshold for repayment of student loans across the UK.

We will make sure that the benefits of economic growth are shared by all of Scotland's communities. We will reduce the gap in unemployment rates between the worst 10% of areas and the Scottish average by 2006.

Supporting activity

Supporting businesses

• We will streamline the support and practical help government offers to business and extend the one stop support for business throughout Scotland through the Business Gateway. We will ensure that the work of Scottish Enterprise is focused on business development and skills training.
• We are committed to ideas and businesses grown in Scotland and will encourage their expansion through continued use of Regional Selective Assistance; through the Scottish Co-investment Fund; and through a new Business Start Up Fund. We will work with agencies supporting business to manage the transition to the new Structural Fund landscape post 2006.
• We will also continue to encourage investment from overseas through the work of Scottish Development International.
• We will use the network of commercial sections in British embassies across the world to look for international partnerships and support Scottish business.
• We will freeze business rates for 2003/4 and limit increases to no more than inflation for the following 2 years. We will maintain our new small business rate relief scheme.
• We will support the construction industry by working in co-operation with the trade groups to create a strategy that secures the supply of relevant skills; improve safety and quality of the industry; combat rogue traders with a quality mark scheme; and consider a construction licensing authority for Scotland. We will include a construction strand in the apprenticeship scheme.
• We will work with tourism businesses to improve tourism marketing and infrastructure, including the network of Area Tourist Boards, and make full use of the British Tourist Authority. We will build on our cities' many attractions and the natural resources of our countryside to turn Scotland into a year round destination. We will ensure that tourist offices and agencies promote the opportunities for outdoor recreation across the country.
• We will work with the tourism sector to introduce an industry-led national tourism registration scheme to guarantee quality service and facilities across Scotland.
• We will build on the success of the financial services sector, particularly in Edinburgh and Glasgow, and work with the industry to improve provision for the skills and training in the areas they need most.
• We will pursue the creation of centres of excellence in industries such as aerospace.

Supporting productivity growth and a high-tech Scotland

• We will work with businesses to increase their investment in research and development to match more closely our competitors in the OECD.
• We will support the productive link between research and product development, maximising the potential of the Intermediate Technology Institutes in Aberdeen, Dundee and Glasgow.
• We will stimulate new product development and spin-outs in Scotland by supporting the translation of ideas into marketable products through our unique Proof of Concept Fund and by encouraging academics and developers to be proactive in the commercial exploitation of their work.
• We are committed to extending broadband connectivity for every area of Scotland to ensure Scotland's competitiveness, both internally and internationally, in both public and private sectors.

Growing an enterprise culture

• We will build on the Scottish Executive's 'Determined to Succeed' report, to develop an enterprising attitude and understanding of the world of work. We will encourage universities to offer business and entrepreneurial experience, making use of sandwich years and 'buddy' schemes.
• We will encourage local authorities to give school pupils the opportunity for "hands-on" enterprise initiatives and will continue to promote manufacturing and engineering to our young people through initiatives like 'Make It In Scotland'.
• We will legislate on personal bankruptcy and diligence to modernise the laws of personal bankruptcy and diligence to strike a better balance between supporting business risk and protecting the rights of creditors.

Promoting sustainable growth

• We will work towards our target for 40% of Scottish electricity generation to be from renewable energy sources by 2020. We will support the development of wave, tidal and solar energy and support the development of technologies to promote the greater use of fuel from wood and other energy crops. We will press the UK Government and electricity companies to strengthen the electricity grid. We will encourage participation in renewable energy projects by communities and local authorities.
• We will create significant opportunities for new products manufactured from waste by tasking Scottish Enterprise to assist the development of such facilities.
• We will assess economic development policies against their impact on targets set through the Scottish Executive's sustainable development indicators.
• We will return vacant and derelict land to productive use, opening up opportunities for businesses and communities.
• We will not support the further development of nuclear power stations while waste management issues remain unresolved. Where decommissioning of nuclear power stations occurs, we will aim to use and develop best practice in decommissioning and high energy technologies.

Skills

• We will develop partnerships between educational institutions and business to offer more apprenticeships and training opportunities.
• We will introduce an improved version of the Individual Learning Account and offer Business Learning Accounts to help small businesses provide training opportunities for their employees.
• We will use the Future Skills Scotland Unit to identify the needs of business and we will focus on education and training services and the career guidance service to meet them.
• We will provide childcare support in areas of high unemployment in order to help those in work, training or education.
• We will continue to work in partnership with trade unions on learning initiatives.

Higher and further education

• We will increase the higher and further education budget by 16% by 2006.
• We will merge the Higher and Further Education Funding Councils and charge them to have regard to the future skills needs of Scotland.
• We will not support the introduction of top-up tuition fees.
• We will support the aspiration of the UHI Millennium Institute for University status.
• We will set up a Lifelong Learning Forum to develop lifelong learning.
• We will work with academic institutions to promote research links, education and student exchanges and to build global networks.
• We will support improvements in the emphasis of the Research Assessment Exercise and ensure robust funding for Higher Education research.
• We will encourage recognition by business and education providers of the Scottish Credit and Qualification Framework.
• We will give students in Further and Higher Education the right to refer matters to the Ombudsman when institutional mechanisms fail them.
• We will work with universities and colleges to promote greater transparency and the use of the Nolan principles in the appointment of Principals.

Sharing the benefits of economic growth

• We will realise the potential of our great cities, working with Glasgow, Edinburgh, Dundee, Aberdeen, Inverness and Stirling and their neighbours, to prepare growth strategies that maximise the unique characteristics and opportunities of each city.
• We will work with local authorities to establish Business Improvement Districts and Urban Regeneration Companies.
• We will regenerate those communities where there are persistently high levels of unemployment.
• We will pilot a scheme in Scotland's rural communities to allow public sector workers to test out good business ideas while retaining security of employment.
• We will continue our commitment to government job dispersal to benefit all of Scotland.
• We will improve the promotion and provision of advice on co-operative development and we will establish a Co-operative Development Agency following consultation.

TRANSPORT

Introduction

The Scottish people and the Scottish economy need reliable, efficient transport. An effective transport system is central to a thriving economy and strong communities.

We will put in place an integrated transport system that gets goods to market quickly and efficiently, and gets people to work safely and on time.

We must connect the whole country and be connected to the rest of the world. Our aim is an accessible Scotland, with a modern, safe, efficient and sustainable transport system.

Our transport system should be sustainable, minimising impacts on our environment, particularly by greater use of public transport.

High level commitments

By the end of 2006, Scottish Executive spending on transport will reach 1 billion per year, of which 70% will be targeted on public transport.

We will Ensure that our transport system meets the needs of business, transport users and the environment by:

• Delivering rail links to Edinburgh and Glasgow airports
• Re-opening the Airdrie to Bathgate railway
• Re-opening the Kincardine - Alloa - Stirling rail link
• Constructing the Larkhall to Milngavie line
• Redeveloping Waverley station in Edinburgh in co-operation with the Strategic Rail Authority
• Investing in a tram network in Edinburgh
• Extending direct air routes through the Air Route Development Fund
• Improving Scotland's ferry links to mainland Europe
• Completing the central Scotland motorway network
• Completing the Aberdeen Western Peripheral Road
• Extending concessionary fare schemes on public transport, including a national free off-peak bus scheme for older people and people with disabilities
• Assessing improved public transport concessions for people with disabilities
• Progressively introducing a scheme of national bus, rail and ferry concessionary travel for young people, initially for all in full time education or training
• Supporting construction of the Borders Rail Line
• Continuing to support feasibility studies into the Glasgow Crossrail project, and other public transport initiatives in Glasgow, and the Aberdeen cross-rail link

We will improve access for our rural communities by:

• Reviewing existing bridge tolls in Scotland and entering into negotiations with a view to ending the discredited toll regime for the Skye Bridge
• Expanding the Rural Transport Initiative and developing its qualifying criteria innovatively to meet further identified needs
• Working to reduce the cost of lifeline air links within, to and from the Highlands and Islands by suitable use of Public Service Obligations to improve services, increase frequency and reduce the cost to individuals, businesses and public agencies. We will fully evaluate the current HITRANS proposals for a Highlands and Islands air network
• Ensuring sufficient resources are available for the non-trunk road network, particularly recognising the needs of pressured rural roads affected by timber production and other primary industries

We will protect the environment and improve safety by:

• Taking more action to get freight off our roads, by using Freight Facilities Grant to encourage freight carrying by rail and water
• Introducing Green Transport Plans
• Introducing 20 mph speed zones around schools and safer routes to school for walking and cycling
• Providing a national framework for safe walking to school and walking buses
• Supporting the development of Homezones to improve safety for pedestrians and cyclists in residential areas

We will ensure that our future transport system is well planned and delivered by:

• Before 2007, beginning work on the next 10 year Transport Plan and, as part of that process, conducting a strategic projects review for all transport modes, against clear criteria on safety, environmental impact and meeting the economic needs of Scotland
• Bringing forward proposals for a Strategic Transport Authority, as an agency within the Executive directly accountable to Ministers, focusing on: delivery improvements in transport infrastructure; co-ordination of national concessionary fare schemes; better investment balance between transport modes and monitoring of the delivery of national targets and standards to secure sustainable transport; taking responsibility for the delivery of quality bus contracts; securing improved working with local authorities as partners in delivery; the development of effective regional delivery partnerships; overseas routes promotion; and oversight of currently tolled bridges. The Ministerial role would be to set policy direction and budget allocation.

Supporting activity

Improving infrastructure

• We will negotiate UK Government support to develop Scottish bids to be the UK's international container hub port.
• We will continue to support local authority provision of park and ride facilities linked to fast means of transport in and out of town and city centres.
• We will learn from experience overseas with a view to setting a minimum standard for the planting of trees to act as carbon sinks beside new road developments.

Improving integration of different transport modes

• We will continue to ensure that bus timetable information is easily available and that bus services offer convenient links between communities and other types of public transport.
• We will continue to support easy to use through-ticketing schemes, including time-limited tickets.
• We will continue to invest in high quality travel information.
• We will ensure that the needs of cyclists are properly taken into account in future rail and ferry franchises.

Promoting public transport

• We will agree a new ScotRail franchise and improve on the current level of service.
• We will continue to support and invest in lifeline ferry links.
• We will ensure that, under the new contract for CalMac ferries, encouragement is given for innovation on existing ferry routes and for new or shorter crossings to islands.
• We will monitor whether the Quality Partnership powers included in the Transport Act 2001 are adequate to protect and enhance evening, weekend and rural bus services.
• We will pilot new kick-start plans to create better value bus services, provided over an 18 month period to promote particular under-used routes through enhanced frequency and marketing.
• We will promote quality contracts for bus services.
• We will support demand-responsive transport (DRT) initiatives, particularly in rural areas.

Protecting the environment and improve safety

• We will support initiatives to improve safety at railway stations and the satisfaction experienced by passengers.
• We will continue to invest in road improvements to reduce casualties
• We will ensure that car fumes are reduced by supporting the use of emission reducing equipment.
• We will reduce light pollution and save energy by specifying appropriate lighting standards.

RURAL

Introduction

We are committed to maintaining strong, prosperous and growing communities in rural Scotland.

We will work to ensure that the rural economy continues to provide jobs and opportunities for all. We will secure a sustainable future for our rural industries.

We will champion Scotland's interests by continuing to participate fully in EU business, including policy development on the future of agriculture and fisheries, working at all levels of government to secure sustainable and properly funded reforms.

High level commitments

We will ensure that rural and remote communities have their distinct needs reflected across the range of government policy and initiatives.

We will support the more rapid development of environmentally sustainable farming that provides consumers with quality products.

• We will implement Land Management Contracts to deliver reformed Common Agricultural Policy (CAP) support which takes account of the diversity of Scottish agriculture and its economic, social and environmental impact.
• We will implement the Organic Action Plan to develop the infrastructure needed to increase Scotland's share of the organic food market and increase the proportion of organic food available in Scotland. We will increase the finance available for farmers wishing to convert to organic farming.

We will continue to work to protect the interests of our fishing industry.

• We will implement the reformed Common Fisheries Policy (CFP) founded on relative stability, maintenance of 6 and 12 mile limits, the Hague Preference and the Shetland Box and promote conservation measures based on sound, independent science and the involvement of industry stakeholders through CFP regional advisory councils. We will work at UK level to secure a sustainable future for the industry.
• We will support the growth of an aquaculture industry in salmon, other fin-fish and shellfish that is sustainable, diverse and competitive. We will reduce the number of bodies involved in regulating and controlling the aquaculture industry.
• We are committed to sustainable local management and control of the fishing resource in inshore waters. We will set in place an urgent review of the management of all fisheries within the 12-mile coastal zone with a view to delegating responsibility to local stakeholders, if necessary through reform of the Inshore Fisheries Act and other regulatory measures for inshore fisheries.

We will support Scotland's food and drinks industry to build on its reputation for high quality and its strong export record.

• We will work with the industry to ensure that more Scottish produce is processed in Scotland.
• We will continue to take every opportunity to expand the export potential of Scottish produce through the marketing opportunities of 'Scotland the Brand'.

We will support the development of environmentally sustainable and competitive forestry.

• We will seek to increase forestry and primary wood processing production over the next 15 years.
• We will promote diversification in the use of forests and of timber; a greater use of native species; and continue to encourage the use of forest products in buildings.

Supporting activity

Supporting rural Scotland

• We will provide practical support for innovation and enterprise in our rural communities. We will promote better collaboration between agencies with expertise in rural development, including the Scottish Agricultural College and the Enterprise Networks, and examine the longer term case for the establishment of a Rural Development Institute combining their functions and responsibilities.
• We will encourage local authorities to protect and develop rural services by utilising their community planning powers.
• We will ensure that rural Community Planning Partnerships work with and report to their local communities. We will encourage them to work together to develop best practice and share ideas on rural development.
• We will continue to develop, and keep under review, a scheme to assist users of water supplies not connected to the public system to bring those supplies up to modern standards and to ensure that rural consumers are not disadvantaged .
• We will implement the Water Environment and Water Services Act to ensure the sustainable management and integration of all policies affecting Scotland's water environment, including aquaculture, planning, land management, flood prevention and environmental policies.
• We will consult on the best strategy for protecting and enhancing all of Scotland's coastline, building on existing policies and including the options of establishing a national coastline park and marine national parks, and consideration of current management and rental arrangements for the sea-bed.
• We will develop the core path network to promote and provide access to the countryside and mountain areas throughout Scotland.
• We will maintain our protection for the rare bird species found in Scotland through our moorland management schemes.

Supporting agriculture

• We will seek reform of the Common Agricultural Policy to secure improvements for Scotland and to shift subsidies away from merely supporting production to those that recognise the economic, social and environmental contribution agriculture makes to rural development.
• We will encourage more sustainable agricultural activity on 13,500 farm businesses in Scotland's remote hills.
• We will implement a Crofting Reform Bill, while supporting the retention of a grant scheme for crofting counties.
• We will rigorously apply the precautionary principle in our approach to the planting of GM crops. We will assess the results of the GM farm scale trials ensuring that there are opportunities for peer review and assessment by others including environmental organisations. Until this process is concluded, we will not permit further GM trials or commercial growing of GM crops.
• We will introduce a Protection of Animals Bill.
• We will retain the current practice of widely dispersing Government Veterinary Centres and improve animal health and surveillance services.

Supporting the fishing industry and aquaculture

• We will continue to promote access for anglers to watercourses and the removal of prohibitive restrictions; promote the local management of watercourses and a proper balance between exploitation and conservation of freshwater species; and seek enhanced access whenever public investment improves fisheries.
• We will legislate to permit enforcement of regulating orders within the range of activities of the SFPA.
• We will continue to support research into fisheries including the development of centres of excellence and innovation.

Supporting the food industry

• We will continue to support the enforcement of food safety standards and high quality in the food chain through improved farm standards, rigorous monitoring of food quality control regimes and more effective restaurant and food premises inspection. We will ensure that the Animal Waste Directive is effectively implemented.
• We will encourage localised food distribution systems involving more local processing of produce.
• We will support local marketing schemes, with clear accreditation and labelling of local produce to increase consumers' power to identify and choose Scottish produce. We will work with supermarkets and farming representatives to encourage greater sourcing and clear labelling of local food items and food produced by organic and sustainable farming methods such as LEAF (Linking Environment and Farming).
• We will support regional marketing co-operatives where this is necessary to enhance the marketing strength of food producers.

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