Scottish Futures Trust (Payment of Subcontractors)

– in the Scottish Parliament at on 18 May 2017.

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Photo of Neil Findlay Neil Findlay Labour

2. Thanks very much for your indulgence, Presiding Officer.

To ask the Scottish Government how it ensures that the subcontractors who work on Scottish Futures Trust projects are paid on time by the main contractor. (S5O-01000)

Photo of Derek Mackay Derek Mackay Scottish National Party

That is a matter for the relevant public body to monitor. The standard contract forms that are used for non-profit-distributing and hub projects include provisions about the payment of subcontractors by the main contractor, who is required to keep records of such payments for inspection by the public body from time to time.

Photo of Neil Findlay Neil Findlay Labour

I will try not to keel over as I ask my question. I have a subcontractor in my region who has been working on a big college project but who has had major problems in getting paid by the main contractor. It appears that that is common across a number of projects. Will the cabinet secretary agree to meet me about the issue?

Photo of Derek Mackay Derek Mackay Scottish National Party

I am happy to look at the individual circumstances that the member has raised and respond accordingly. It is not my belief that that is commonplace, because there is monitoring in place, but I am happy to look at the specifics and return to the member.

Photo of Gillian Martin Gillian Martin Scottish National Party

I ask the cabinet secretary whether there are things that prevent the Scottish Government from taking the action that it wishes to take to encourage fair work practices?

Photo of Derek Mackay Derek Mackay Scottish National Party

The Scottish Government has gone further than other Administrations with regard to fair work, but it could go further if it had full legislative authority in that area. That is all the more reason for us to press the United Kingdom Government for the full devolution of employment law, so that we can go even further on that agenda. I could cite a number of examples where we have made good progress, such as the fair work convention.

Photo of Ross Thomson Ross Thomson Conservative

What action is the Scottish Government taking to ensure that businesses pay their smaller suppliers faster? A recent report by the Federation of Small Businesses in Scotland showed that adopting the payment practices of Norway would see 2,075 fewer firms closing annually in Scotland.

Photo of Derek Mackay Derek Mackay Scottish National Party

The Scottish Government has a good strong track record in paying those that it procures services from. It publishes those statistics and is taking forward project bank accounts that ensure that subcontractors are paid. I encourage their use and will roll out further guidance on that.

The Presiding Officer:

Question 3 has not been lodged.