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Last Updated: Thursday, 20 September 2007, 14:27 GMT 15:27 UK
SNP denies freezing out elderly
Wendy Alexander

The Scottish Labour leader has accused the government of wanting to means test the free central heating programme.

During her first outing at question time, Wendy Alexander said the ruling SNP administration was aiming to target the scheme at the poorest pensioners.

But First Minister Alex Salmond said a current review was planned to improve delivery of the policy.

Meanwhile, Tory leader Annabel Goldie used a minister's shareholdings to attack SNP plans to scrap council tax.

Mr Salmond also said that Scotland had started negotiations on an �80m fund, held by the energy regulator, that could be used to boost green energy projects.

A comfortably off man with a nice little portfolio of shares would not pay a penny of the SNP's income tax on that dividend income
Annabel Goldie
Scottish Tory leader

But Liberal Democrat Leader Nicol Stephen said Mr Salmond had failed on a pledge to get the cash within the first 100 days of taking office.

Ms Alexander pointed out that this week marked the seventh anniversary of Labour announcing a scheme to give free central heating to pensioners, benefiting 80,000 people and cutting winter deaths by 70% in five years.

She went on to claim that communities minister Stewart Maxwell had signalled the move to means-testing during a meeting of the Scottish Parliament's Local Government Committee.

"The truth is that we extended this scheme, and he spoke about restricting it," she said.

"Is that review under way - or have you simply ditched it because you've once again been rumbled?"

'Portfolio of shares'

But the first minister insisted his government was aiming to "enhance and improve" the scheme, adding: "We are entirely committed to the statutory target to eradicate fuel poverty.

"The description by Wendy Alexander of what [Mr Maxwell] said at the committee is not accurate."

In a criticism of transport minister Stewart Stevenson, although she did not name him in the chamber, Ms Goldie said of the SNP's plans to replace council tax with local income tax: "Under the proposals, a hard-working nurse would pay tax.

"But, for example, a comfortably off man with a nice little portfolio of shares receiving dividend income of, say, �20,000 a year, he would not pay a penny of the SNP's income tax on that dividend income."

Mr Salmond said he could safely conclude that all his ministers would gladly pay the local income tax, adding: "There is a huge difficulty in trying to charge investment income based on the costs of administration which would be enormous.

"What we can say is that local income tax, because it's based on people's income, must be inherently fairer than a council tax which for many people, including the vast majority of Scotland's pensioners bears no relationship whatsoever to their income."

Mr Salmond also said talks were taking place over money held by Ofgem as part of the fossil fuel levy - paid by suppliers of electricity from non-renewable energy sources and used to promote renewable power.

Mr Stephen said: "The First Minister's 100-day manifesto said he would access money from the fossil fuel levy and use it for renewable energy projects in Scotland."

"Has he kept that promise?"

Pointing out that the previous administration had not made an approach to Ofgem for the money, Mr Salmond added: "That is a position this Scottish Government has rectified by opening negotiations to see that money comes back to Scotland."


SEE ALSO
Elderly warned over winter deaths
12 Sep 06 |  Scotland
Elderly offered heating upgrade
14 Mar 06 |  Scotland
Warming offer to OAPs on heating
24 May 04 |  Scotland

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