The running costs figure of £34.6 million for 1999-2000 – an additional £5.3 million to the indicative provision set aside early in 1998 – will provide the required services, property and staff to run the Parliament efficiently and effectively.

The Scottish Parliamentary Corporate Body (SPCB), which is charged with providing the Parliament with accommodation, staff and services, inherited (in May) the £29.3 million provision set by the UK Government 18 months ago, before the structure of the Parliament had been defined in any detail.

Sir David Steel, Presiding Officer and Chair of the SPCB, said today:

"It is important for Scotland that we have a Parliament that is properly resourced with services, property and staff. But equally, it is for the Parliament to ensure that efficiency and effectiveness are the watchwords at all times.

"The expenditure plans presented to the Parliament today by the Scottish Executive include, for the first time, a proper budget for running the Parliament itself. The SPCB has now had nearly five months of seeing how the Parliament functions in reality, and is now able to present a more considered budget, based on the experience of running the Parliament.

"The present provision of £29.3 million for the financial year 1999-2000 was set some 18 months ago by the UK Government as part of the Comprehensive Spending Review (CSR) – long before the Parliament was elected and before anyone could have had a clear idea of how exactly it would operate and how much it would cost to run.

"In fact, at the time our original provision was set (March 1998), the Scotland Bill had just been introduced and the Consultative Steering Group, which was to shape in detail many of the Parliament’s activities, was just getting down to its detailed work.

"It is widely acknowledged that this original provision was set prematurely – indeed the word ‘guesstimate’ has been already been used. In light of the CSG report, and experience of operating the Parliament since May, it is now clear that an additional £5 million is required.

"We must also remember that this year’s provision was only ever intended to cover a part-year. With the Parliament up-and-running much quicker than expected, these resources have proved inadequate.

"The new figure has been arrived at only after a very rigorous scrutiny of budgets and search for savings. This is the amount required to deliver official and effective services to members and the public. The search for savings will go on.

"Today’s announcement also includes the SPCB’s budgets for 2000-01 and 2001-02. The indicative provision for these years - which were also set by the UK Government 18 months ago - appear to have been more realistic. Since the Parliament is only now fully operational, halfway through this financial year, it was always envisaged that spending next year would be higher as it would be the first full year of operation.

"The UK Government provided for that and increased the provision to £38 in each of the next two financial years. We still require some uplift from that to allow us to operate properly – though not an extra £11 million next year as reported earlier this week. The SPCB is now asking for an overall running cost budget of £40 million in 2000-01 and £41 million the following year.

"As a new Parliament, we are still very much feeling our way as procedures develop and members settle down to their role of representing the people of Scotland. Once the SPCB is satisfied its finances are on a sound footing, based on running the Parliament when it is fully operational for a significant period, it very much hopes that there will be all-party agreement on a formula for agreeing increases in the running costs budgets in future years."

The provision for the next two years also includes figures for capital expenditure, largely on the Holyrood project. The figures are £55 million in 2000-01 (when the bulk of Holyrood spending will be incurred) and £24 million in 2001-02. These figures are in line with previously announced total costs of £109 million for the Holyrood project.

BACKGROUND NOTES

1. Contrary to recent media reports, the Parliament’s running costs do not include expenditure on Ministerial cars, Executive special advisers or the cost to The Scottish Executive of answering Parliamentary Questions.

2. The breakdown of the £34.6 million running costs for 1999-2000 is as follows

*Includes costs of printing, stationery, document supply, IT and telephone support, broadcasting and sound, visitor centre and shop, staff travel and subsistence and training.