John Swinney: "Vital step"

The �145m scheme was unveiled by party leader John Swinney in Aberdeen during campaigning for the Scottish parliamentary elections.

Mr Swinney said the aim would be to reduce class sizes for primaries one, two and three to 18 pupils or less.

He said: ""Reducing class sizes is a vital step in securing our kids' future and to releasing their potential.

"It is simply not acceptable that there is such a serious imbalance between courses on offer and the real needs of the economy Nicol Stephen Scottish Lib Dems

"We know that literacy and numeracy levels are stuck at unacceptably low levels, giving too many kids the worst kind of start to their education.

"We will put in place 3,100 more primary teachers and will invest �145m to deliver smaller class sizes and turn our nation's educational record around."

With nominations for the elections now closed, parties have been embarking on campaigning the length and breadth of Scotland.

Jack McConnell told business people in Dumfries that Scottish Labour was committed to rural Scotland.

The party leader said this had been demonstrated through business rates relief, the Business Start-Up Fund and a commitment to broadband technology

He said small Scottish companies with a rateable value of �10,000 or less were now receiving rates relief of up to 50% and the start-up fund was making it easier for fledgling businesses.

Nicol Stephen: "Shortage of staff"

Mr McConnell added: "On transport, linking our Scottish cities will be matched with investment in our rural links.

"And in places like Dumfries and Galloway our commitment to broadband technology will create the momentum that businesses here need to help them compete in the modern market place."

The Scottish Tories accused the Liberal Democrats of "peddling a lie" over student funding.

Leader David McLetchie said students had been "sold out" by the Lib Dems in return for seats in the Scottish Executive with Labour.

He unveiled a poster and flyers asking the question "Y2K?" in large yellow lettering, with the answer "Because they didn't abolish tuition fees".

Mr McLetchie promised the Tories would abolish the graduate endowment - a �2,000 deferred payment by former students earning over �10,000 - which was introduced when up-front tuition fees were scrapped by the parliament.

Skills shortages

However, the Lib Dems said the Tories had "lost the plot" on the issue and accused them of planning to introduce top-up fees for students.

The party has promised to withhold funding from universities and colleges that fail to provide enough courses in "key public sector areas" like social work, teaching, nursing and dentistry.

Nicol Stephen said his party supported laws which would ensure that universities and colleges respond to skills shortages in the Scottish economy

He said: "It is simply not acceptable that there is such a serious imbalance between courses on offer and the real needs of the economy.

"It's simply not acceptable that our public services in 21st century Scotland should have such a crying shortage of qualified staff."

Oil reserves

The Scottish Socialists have called for the public ownership and public control of the country's oil reserves.

The party said the money should be invested in health, education and improving the living standards of pensioners.

The recently formed Scottish Senior Citizens Unity party has unveiled its manifesto for the May election with a pledge to abolish pensioner poverty.

The party's seeking to attract the grey vote and is fielding 19 list candidates and one constituency candidate.

They will campaign for full fiscal freedom from Westminster, in a bid to raise the state pension to �150 a week.