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We are in early discussionswith banks and other finance providers to promote a range of financial productsincluding basic bank accounts. We are also in contact with Treasury colleaguesand the Financial Inclusion Task Force who are working with the bankingindustry on a GB-wide level to reduce the number of people who are “unbanked”.

In addition, I currently chairYoung Scot’s Money Advisory Group whose remit includes reviewing the provisionof financial products and services available to young people.

The Scottish Executive isproviding funding of £400,000 in each of 2006-07 and 2007-08 to credit unionswhich are approved to carry out financial inclusion activities as a Service ofGeneral Economic Interest (SGEI), which can include the provision of credit unionbudgeting accounts. Through the SGEI we are compensating credit unions forproviding a suite of financial products and in addition we are also in contactwith Treasury colleagues and the Financial Inclusion Task Force who are workingwith the banking Industry on a GB-wide level to reduce the number of people whodo not have bank accounts.

The Financial InclusionAction Plan, published in January 2005 sets out what the Executive is doing nowand its plans for the future. It also outlines what we expect from localauthorities, credit unions and the money advice sector on an individual basisand through working together.

Initiatives include:

£5 million towards face toface money advice.

Over £1 million towardsfinancial literacy projects (Young Scot, GEMAP and 6 CAS pilot projectsScotlandwide).

£10.6 million FinancialInclusion Funding to the 11 most financially excluded local authorities.

Working with Money Advice Scotland andCitizens Advice Scotland on the Debt Arrangement Scheme.

Setting up the ScottishCredit Union SGEI scheme – this scheme is an approval process to allow ScottishCredit Unions to be compensated for providing financial inclusion products.

The Scottish Executive does nothave information about the number of basic bank accounts opened in Scotland.

The Executive met with the banksand other stakeholders on the 17 January this year. Items discussed included:

The First Year ImplementationPlan for the Strategy for the Financial Services Industry in Scotland.

The Scottish Executive’s FinancialInclusion Action Plan.

HM Treasury’s intention to workwith the banking industry regarding reducing the number of people who are “unbanked”– which is a GB-wide initiative.

The Scottish Household Surveyhas found that, in the first three quarters of 2005, a bank or building societyaccount was held by the respondent or partner in 91.1% of households, compared to85.7% in 1999. In the most deprived 15% of areas the increase was from 67.5% in1999 to 81.6% in the first three quarters of 2005.

These figures do not includepost office or credit union accounts. If they are included then 94.9% of householdsin the first three quarters of 2005 had an account with either a bank, buildingsociety, post office, or credit union. A comparable figure for 1999 is not availablefrom the Scottish Household Survey.

Financial Inclusion is part of the Executive’s wider Closing the Opportunity Gap approach to overcoming povertyand decisions on how this will be evaluated will be made in due course. Individualinitiatives currently being measured include the number of front line money advisersin post in each local authority area, the growth in credit union membership andnumbers receiving financial literacy training.

The requested information isin the following table:

1999-2000 (£)	2000-01	2001-02	2002-03	2003-04	2004-05	2005-06	2006-07
0	90,000	370,000	190,000	240,000	160,000	300,000	305,000

 

I refer the member to the answer to question S2W-25490 on 9 May 2006. All answers to written parliamentary questions are availableon the Parliament’s website, the search facility for which can be found at http://www.scottish.parliament.uk/webapp/wa.search.

The Executive is providing £160,000 per year core fundingfor the Scottish Maritime Museum. We have also agreed to continue funding of £30,000 in2006-07 for its curator post. I am pleased to say that the Executive will also provideadditional funding for maintenance of the collection in 2006-07 and we shall writeto the Scottish Maritime Museum with a formal grant offer as soon as possible.