Official Report 925KB pdf
Good afternoon. The first item of business is portfolio question time, and the first portfolio is Deputy First Minister responsibilities, economy and Gaelic. I remind members that questions 1 and 5 are grouped together and I will, therefore, take any supplementaries on those questions after both have been answered.
Mossmorran Task Force
To ask the Scottish Government whether it will provide an update on the progress that it is making in supporting the Fife Council-led Mossmorran task force. (S6O-05355)
The Scottish Government is participating in the task force, which is led by Fife Council, and my officials are engaging regularly with the council and with other partners. Our priority has been to ensure that we provide the necessary support to enable the workforce to transition to other employment opportunities, and I believe that it is vital that the task force is fully focused on mitigating the impact of the decision.
As I understand it, the first meeting of the task force will be on 28 January in Fife. Does the Scottish Government believe that there is an industrial future for the Mossmorran site once we get past supporting—rightly—the workforce who are currently there?
Has the Scottish Government had any talks with the United Kingdom Government? We will need both Governments to invest if we are going to secure long-term employment for the Cowdenbeath area.
I firmly believe that there is an industrial future for the plant, and I say that for a number of reasons. First, the funding that was announced yesterday means that there will be up to £9 million of funding for the site over the next few years.
Secondly, Scottish Enterprise has been engaging closely with ExxonMobil in order to understand what the opportunities are. I met with ExxonMobil representatives yesterday afternoon to listen to them and get an update from their perspective about what is being provided to Scottish Enterprise. Those talks are progressing well.
There are opportunities to progress. We continue to make the case to the UK Government for additional support, but in the meantime, rather than waiting for anything, we have progressed our own activity both to make funding available, which I am delighted about, and to support Scottish Enterprise with the work that it is doing essentially to match assets and land available at the site with potential employers who have expressed an interest either through the Grangemouth process or separately from that.
Mossmorran Just Transition Fund
To ask the Scottish Government what discussions the Deputy First Minister has had with ministerial colleagues regarding when a just transition fund for Mossmorran will be introduced. (S6O-05359)
In yesterday’s budget, we announced £9 million over the next three years to help to mitigate the closure impacts and to support a just transition for the skilled workforce.
I am very pleased about what was announced in the budget yesterday—I have been calling for such a fund for many years. However, given that the plant is scheduled to close in four weeks’ time, communities need to know when the fund will be up and running. While £3 million is a good starting point, it does not fully address the problems that are left behind by ExxonMobil’s decision. There must be a full positive legacy for both communities and workers.
What steps will the Government be taking to help leverage more funds, not just from the UK Government but from ExxonMobil, which made substantial profits from the operation of Mossmorran over many decades?
I commend the member for his long-standing interest in the plant. To address his specific questions, I note that he talked about contributions from others. My ambition would certainly be to use the £9 million of funding as leverage for further funding from the private sector, in particular from those investors, developers or businesses that are looking for an opportunity to relocate to use either the assets or the land at the site.
Secondly, we have had some engagement in the past 24 hours with the company to look at what could be available soon and what commitment it is making to legacy. Mark Ruskell will recall the conversation about legacy that started at the summit in November. There is an openness to explore those questions.
Lastly, the member mentioned the issue of the four-week timeframe, but this has a longer tail than that. We are conscious that there will be on-going activity for a considerable amount of time, which will allow us the opportunity to continue to explore the options and deliver solutions as quickly as possible.
A number of members are seeking to ask a supplementary. I shall try to get them all in, but we will need briefer questions and responses.
Given that the owners of ExxonMobil were clear that Westminster policy was to blame for the closure of the site, can the cabinet secretary provide an update on the Scottish Government’s engagement with the UK Government on Scotland’s industrial future at Mossmorran? Can she provide an update on her engagement with trade unions through the task force?
I have been engaging with trade unions and worker representatives. I met trade unions in December, shortly before Christmas and yesterday, I met worker representatives, who we will continue to engage. We will also continue to communicate with MSPs. We have not seen any changes from the UK Government on those policies. If there are no further changes, there is an on-going risk of industrial failure in other parts of Scotland.
This morning, the Parliament’s Economy and Fair Work Committee heard evidence from trade unions on their concerns about the deindustrialisation of the Scottish economy, of which the closure at Mossmorran is the latest example. They are also concerned that we have well-paid workers in the oil and gas sector who are currently losing their jobs when vacancies in renewables and the new green economy simply do not exist to allow those workers to progress in a just transition. Where is the Scottish Government’s skills strategy to ensure that workers who are losing their jobs are not thrown on the scrap heap?
I will take those points in turn. I am sure that Murdo Fraser has looked at the commentary from employers in the north-east and oil and gas industry who have regrettably had to relieve workers of their jobs. They have all have cited the energy profits levy as a factor. It is clear to me, as it is now to the Conservatives, that the energy profits levy is having an extremely damaging effect on companies’ ability to retain workers. The whole point of a just transition is that new jobs should be created before old ones are lost. The two arguments are that we should retain the old jobs and create new ones.
On deindustrialisation, as I said in my response to David Torrance, there have been no fundamental changes to some of the key industrial policies, particularly for energy, the cost of doing business, and so on, which are largely determined at a UK-wide level. Quite soon, we need to see a fundamental shift. The member may also be conscious of the announcement of the outcome of allocation round 7, which will create new jobs. However, we really need to see that accelerated and for it to have more momentum.
I can take two more supplementaries, but I need briefer questions and responses.
The Government has slashed Ferguson Marine’s budget by 57 per cent. Does that not send a stark warning to communities around Mossmorran about how little they can rely on the Government for long-term support interventions and transition funding?
I am not sure that I heard the member correctly, mostly because I was astonished by his question. I think that he asked why we had slashed Ferguson Marine’s budget. Is that correct?
Yes.
That is quite surprising, considering that the Conservatives regularly criticise me for investing in Ferguson Marine. The member can look at our track record of stepping in to save key industrial assets—that is a record that we can stand on in the future.
Despite a challenging UK policy environment, Scotland continues to do all that it can to preserve skills, protect jobs and deliver a truly just transition. Does the cabinet secretary agree that, in order for that to happen, the UK Government must start delivering north of the border? Can she provide an update on the Scottish Government’s work to secure a future for the site?
In terms of the funding that we have provided through the £25 million Grangemouth just transition fund, we have invested £8.5 million to date to bring forward new business opportunities to secure Grangemouth’s transition. We are also examining every option, alongside Scottish Enterprise, to ensure a just transition for the workforce and the site at Mossmorran, and we look to the UK Government to do the same. The member will have seen the £9 million announcement yesterday, which includes £3 million for next year to provide support for any new employers moving into the site.
Ferguson Marine
To ask the Scottish Government under what circumstances it expects to be able to return Ferguson Marine to the private sector. (S6O-05356)
The member will know that my approach is to ensure that the MV Glen Rosa moves towards completion and that we support Ferguson Marine to be as competitive as possible by investing capital and providing support as it tenders for new opportunities. We have no immediate plans to return Ferguson Marine to the private sector in advance of those steps being taken.
Can the Deputy First Minister set out a timescale for returning Ferguson Marine to the private sector? Is it going to be months or years? What is her expectation?
When Ferguson Marine is finally sold, how will the Government protect jobs and skills in Inverclyde during any transition to private ownership?
I am very clear that my immediate priority is to safeguard the yard and the jobs, and to ensure that the company can compete on the open market. There are no immediate commitments to return Ferguson Marine to the private sector.
The Deputy First Minister will be very much aware that the yard was in private ownership when it first went into liquidation in 2014, so private ownership is not the panacea that some might suggest.
Does the Deputy First Minister agree that the most important aspect of the issue is that the yard has a future, builds ships, creates opportunities and contributes to the economy, irrespective of who owns it?
I agree with Stuart McMillan on the commitments that he has just listed and on the fact that ownership is not the defining issue. What matters most is that the yard has a clear and sustainable future and is able to continue to build ships. We want to support the highly skilled workforce at the yard and to ensure that the business is placed on a stable footing. Those are my immediate priorities.
Question 3 was not lodged.
Gaelic Language and Culture (Young People)
To ask the Scottish Government what action it is taking to encourage young people to be involved in the Gaelic language and culture. (S6O-05358)
We are fully committed to increasing young people’s involvement in Gaelic language and culture. In order to achieve that, a range of opportunities exist in schools, in media, in arts, in culture and in outdoor activities. The Scottish Government’s funding of, for example, MG Alba, Bòrd na Gàidhlig and Sabhal Mòr Ostaig makes that possible.
I have recently been speaking with early years practitioners at a local nursery, who tell me that they have concerns about getting Gaelic-speaking early years practitioners. I appreciate that that might not concern the cabinet secretary’s portfolio directly—it is more an education matter—but what steps is the Government taking more generally to encourage Gaelic-speaking people to consider early years or other care-based roles and professions?
That is one of our priorities, precisely for the reason that Fulton MacGregor sets out. There has been a huge increase in demand for Gaelic early learning and childcare and Gaelic-medium education. It is important to ensure that there is a pipeline of teachers and practitioners to support that. We continue to work with providers of education such as Sabhal Mòr Ostaig to ensure that there is such a pipeline.
I always encourage any young person who is considering what to do next to consider a career in Gaelic-medium education.
Glasgow (Economic Performance)
To ask the Scottish Government what action it is taking to improve Glasgow’s economic performance, in light of reports that the city continues to lag behind the rest of Scotland. (S6O-05360)
Glasgow has seen sustained growth, with one of the highest gross value added growth rates of any local authority area over the past five years. It also had the most foreign direct investment projects in 2024 and, compared with 2010, it has the highest business stock growth rate in Scotland.
We have played our part by helping to stimulate that growth through the £500 million city region deal, alongside Clyde mission funding, maritime skills funding, the region investment zone and national support via the Scottish National Investment Bank, Techscaler and other initiatives.
Our recent announcement that we commit to introducing legislation that enables greater regional empowerment will also provide further support and ensure that the Glasgow city region continues to flourish.
Business growth is down, private sector investment is down and employment levels are still below the national average. Businesses are closing, including Spuds, in the west end of Glasgow, which closed after just five months. The businesses that I speak to feel let down by the Scottish Government and as if they have been left behind. They want to know what the Scottish Government will do to help fix that immediate decline in Glasgow. I do not know whether you have been in Glasgow recently, minister, but there is a lot of disinvestment there. What immediate actions can the minister take to help businesses to flourish?
Always speak through the chair.
I am aware that Glasgow, like many other communities in Scotland, is not immune to some of the economic pressures that are faced by Scotland and across these islands. Many of the United Kingdom Government’s policies are taking their toll, such as higher employer national insurance contributions and higher energy costs, which are impacting Glasgow businesses as well as those in the rest of the country.
We should note that there are reasons for optimism. The recent global financial centres index ranks Glasgow alongside some of the world’s top-performing cities. Glasgow ranks 37th globally and 12th in western Europe. It has made consistent and steady progress in the past year since that survey.
There are plenty of indicators that show that Glasgow has many strengths. It is important that we talk the city up, but there are challenges, and it is important that we work together to address them. We will continue to do that, and, of course, yesterday’s budget contains a lot of measures that will support Glasgow going forward.
Annie Wells is right to ask about Glasgow. Output per hour worked in Glasgow is a third less than that in Edinburgh. Worse than that, since 2019, Leeds, Liverpool and Manchester have achieved an annualised growth rate of 3 per cent, whereas Glasgow has achieved barely 1 per cent.
Looking past the issue of mayors, it is clear that having combined authorities with powers over skills, transport, infrastructure, housing and rates delivers growth. I do not think that putting regional economic partnerships on a statutory footing will deliver that, will it?
The member has not yet seen the legislation on regional partnerships, which the First Minister has referred to in recent weeks. He should await the opportunity, if he is lucky enough to be re-elected to the Parliament in the next session, to influence that legislation.
The Government’s commitment is to strengthen and give flexibility to regional partnerships in Scotland to allow them to bring forward their own initiatives to further support their local economies.
Young People not in Education, Employment or Training
To ask the Scottish Government what action it is taking to address the rates of young people not in education, employment or training. (S6O-05361)
A range of support is provided to young people to help them to transition into positive destinations of education, employment or training. That includes professional careers advisers who provide impartial advice so that young people can make informed decisions, having explored all the options. There are also funding programmes that connect young people and employers, and the provision of employability support.
Of the 2023-24 school leaver cohort, 95.7 per cent were in a positive initial destination three months after they left school. The 2024-25 figures will be published on 24 February this year.
I thank the minister for that answer. The figures hide the fact that that has happened solely through improvements in the rate of teenagers remaining in education, which many of us in the chamber support; however, economic inactivity among those aged between 20 and 24 is at 15 per cent, which has remained the same since 2017.
Does the minister agree that the strategies that have been implemented so far have obviously not gone far enough to allow young people of all backgrounds and capabilities to step into the workforce, contribute to the economy and be self-sufficient, and at the same time have a wee bit of pride in themselves?
It is important that we make relevant and effective support available to Scotland’s young people. I should point out that, from 2009-10 to 2023-24, the percentage of school leavers entering positive destinations increased from 85.9 to 95.7 per cent. That progress should be recognised, and it vindicates, to a certain extent, the policies that have been implemented over the past decade—and indeed, longer than that. In 2023-24, the overwhelming majority—95.5 per cent—of those who entered a positive initial destination went on to sustain those positive destinations.
The latest estimates from the Office for National Statistics annual population survey show that Scotland had a higher employment rate, a lower unemployment rate and a lower inactivity rate for 16 to 24-year-olds when compared with the rest of the UK. We have to be alive to the challenges that the member mentioned, but the policies that have been implemented in recent years, which continue to be implemented, are having a positive effect in supporting our young people.
How many people have benefited from free tuition in Scotland under the Scottish National Party? Do you agree that protecting free tertiary education in Scotland is vital to creating opportunities for people across Scotland?
Always speak through the chair, please.
Both members who have spoken have mentioned the importance of education. Marie McNair is right to highlight the benefit of free higher education in Scotland. Analysis of data from the Student Awards Agency shows that around 740,000 students have benefited from free tuition on higher education courses between 2007-08 and 2024-25.
Our policy on free tuition ensures that access to education is based, as we have said many times before, on the ability to learn and not on the ability to pay. It plays a key role in supporting access to higher education and supporting our young people to achieve positive destinations with their lives.
It is very good to see, in table 9.01 of the Scottish budget, a little extra money for employability schemes, which was a recommendation from Sandy Begbie in relation to Developing the Young Workforce. However, the enterprise, trade and investment budget—which is crucial to enabling employers to take on young people—has been squeezed, this time from £420 million down to £398 million. Why is that?
There is a whole range of budgets in the budget that was announced yesterday in Parliament. There was substantial additional support and investment for colleges, for instance. We have to look at yesterday’s budget in the round, in terms of support for employers as well as the £90 million employability budget, which the member referred to. It is an ambitious budget that will make a real difference to supporting our young people.
A96 Dualling (Economic Impact)
Presiding Officer, may I offer a humble, sincere and unqualified apology for not being present at the beginning of these proceedings. I have got that over with.
To ask the Scottish Government what discussions the economy secretary has had with ministerial colleagues regarding the potential economic impact of fully dualling the A96, in order to provide faster and safer transport links between the two key economic areas of north east Scotland and the Highlands, and to support the significant number of renewable energy sector jobs that it and Highlands and Islands Enterprise anticipate will be generated in the coming decades. (S6O-05362)
We fully recognise the crucial role that transport infrastructure, particularly the A96, plays in supporting sustainable economic growth. Connectivity underpins so much of our economic growth and expansion. The Government’s current position on the A96,has not changed. It is still in support of full dualling of the A96 and it is currently progressing the dualling process from Inverness to Nairn, including the Nairn bypass.
Does the Deputy First Minister therefore share my disappointment that the Nairn bypass and the section of the A96 that the Scottish Government has been committed to dualling since 2011 is not included in the league 1 list of development projects but is only in league 2—which means that there is no money for the Nairn bypass this decade? I asked the Cabinet Secretary for Finance and Local Government about that yesterday, and she gave an extensively equivocal answer. Does the Deputy First Minister agree that that failure is completely at odds with what she has just said about the centrality of decent transport links to achieving the Scottish Government’s economic ambitions?
It is important to state that work has begun: the statutory procedures have been completed, the land is acquired and funding is included in next year’s draft budget to commence the delivery of advance works for the scheme. In parallel to those advance works, Transport Scotland is continuing to look at the most suitable procurement option for delivering the scheme.
On the status in the infrastructure investment plan, investment in the trunk road network over the next four years, which has been confirmed, will allow us to make further progress on dualling the A96, including the Nairn bypass.
It is important that the Government is able to follow up with Mr Ewing in setting that out clearly, so that he has the information that he is looking for.
That concludes portfolio questions on the Deputy First Minister’s responsibilities, the economy and Gaelic.
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