V&A at Dundee
To ask the Scottish Government what limits it will place on its contribution to the V&A project in Dundee. (S4T-00902)
The Scottish Government has committed an additional £10 million to the V&A project, bringing its total capital contribution to £25 million. We are also in discussion with Dundee City Council about proposals for a growth accelerator model for the wider Dundee waterfront area, anchored by the V&A. In taking forward those discussions and the management of the project, the Scottish Government expects Dundee City Council and Design Dundee Ltd to ensure that all steps are taken to deliver the project on time and to budget under the fixed-price contract proposed.
I accept that there are inevitably issues of commercial confidentiality, but will the minister take the opportunity today, on behalf of the Government, to create some transparency about the process that led to the announcement? Will she also pass comment on the fact that Dundee City Council was unable to inform any member of its opposition during the process as to what was going on?
On the transparency of the Scottish Government in terms of budget scrutiny, it is clear that we have laid out our proposals and are doing so again today in the Parliament.
Commercial confidentiality has meant that there has been a period of time and a series of discussions with the contractors to make sure that we get the lowest price. There has been a key driver to reduce prices but not to compromise on the project. As part of that, there have been on-going discussions between us and Dundee City Council.
On the council’s transparency to itself as an authority, to its councillors and to the wider Dundee public, the papers that were produced on Friday announce what the figure now is. However, as I think everybody would expect, there has been a period of time with robust discussions to ensure that we have the certainty of a fixed-price solution. We should welcome that in the interest of confidence going forward.
I absolutely agree with Alex Johnstone that transparency is important in relation to contracts and proposals. That is why I am happy to answer the questions here today.
Can the cabinet secretary give an unequivocal guarantee at this stage that the money that has been made available to support the project will be adequate to ensure that the people of Dundee get the Victoria and Albert museum that they have been promised for so long?
It is quite clear that the people of Dundee are very enthusiastic about the prospects of the V&A and what it can mean for the wider regeneration of Dundee.
The certainty that Alex Johnstone is looking for has been part and parcel of the discussions that have been taking place about the contract to try to make sure that the council could get the best possible fixed price from the contractors. That is why, in committing Scottish Government money, we have made sure during that period that we are confident that the proposals and the figures, which are obviously a significant increase on the original estimate before tenders went out, can be realised in order to give people confidence that the project can go ahead and will be successful.
Yesterday, when I met the director of Dundee V&A in his office, which is opposite a building site, on the original timescales I should have been on a tour of the building. We have seen escalating costs and continual delays for the project, so there needs to be transparency and accountability on that. I am sure that the cabinet secretary, too, must have concerns about how the project has developed. Will the Scottish Government therefore agree to the calls for an inquiry into the rising costs of the building so that we know who knew what and when?
It is clear that Dundee City Council will be reviewing the process to date. The project is an ambitious one that must be got right. It has been part and parcel of bringing United Nations Educational, Scientific and Cultural Organization—UNESCO—city of design status to Dundee, so it is important that the project goes ahead.
The issue that I have with an inquiry is that it could cause uncertainty and delay. I am sure that Claire Baker will be familiar with concerns over many years that some Opposition members’ attitude and behaviour have caused uncertainty. The Dundee project needs at this time not uncertainty but certainty, particularly when we are attracting additional private sector funding and, as the member will be aware, awaiting a decision on funding from the Heritage Lottery Fund, which will be made in the next few days. I am sure that she would want to ensure that confidence is given to the Heritage Lottery Fund that we are all behind the V&A.
I welcome the additional funding from the Scottish Government for the regeneration project, which is important in cultural terms not just to Dundee but to Scotland as a whole. Can the cabinet secretary outline the benefits that she expects the V&A to bring to the local and national economies?
As I said, the iconic anchor of the V&A will be significant for the waterfront development in terms of economic impact—that is, jobs. We want to ensure that there is a benefit in Dundee from culture-led regeneration, as has happened in many other areas. George Adam is right to look at the cultural offering itself in terms of Dundee as a city of creativity and innovation.
As I said, Dundee is one of the few places in the world that have been awarded UNESCO city of design status, which is something that we should celebrate. The project will allow us to showcase our industrial heritage and our innovation and design in many different areas, not just in the cultural and heritage offerings but in terms of how innovation has driven Dundee and, indeed, continues to drive our economy.
The cabinet secretary has proposed that the remaining sums that are required by the project will be made up of money from a borrowing model: the growth accelerator model. She will know that Dundee City Council has to deal with high levels of deprivation and that the repayments for any borrowing will have to be made over many years, which will affect budgets long into the future. Can she give members any indication about how the risk in the growth accelerator model will be shared between the Scottish Government and Dundee City Council?
We have made it clear that we are in active discussion with Dundee City Council about the growth accelerator model, which was announced initially for the St James Quarter development here in Edinburgh. I hear what the member says about Dundee’s areas of deprivation, but that is exactly why we need to have the economic regeneration of Dundee, of which the waterfront development will be a significant part and the V&A a vital part.
On the Scottish Government’s contribution, I have made it clear repeatedly—the member will have heard me—that we stand behind the V&A and the project. I cannot give the member any detail about our discussion with the council on the growth accelerator model, as it is on-going. We want to ensure, through not only my portfolio but others, that Dundee gets its fair share of resources, but in many respects it is doing far better than other areas.
Peterhead Fish Processing Plant Fire (Support)
To ask the Scottish Government what assessment it has made of the need for support following the fire at the Peterhead fish processing plant. (S4T-00900)
Many members will have seen the images of the devastating fire at the Northbay processing factory in Peterhead, which was ablaze for more than 10 hours. At its peak, 10 fire units and several specialist crews were on site to stop the flames from spreading to canisters containing ammonia and bring the blaze under control. Thankfully, no one was injured.
Northbay Pelagic is one of the largest fish factories in Scotland and the company is a major employer, with around 120 full-time staff and 100 temporary staff. The fire has destroyed the processing plant and production line, but the company has said that it intends to rebuild the plant as quickly as possible. Indeed, when I spoke to the company today, it reaffirmed that intention.
It is imperative that we all pull together to get the company up and running again. Scottish Enterprise and Aberdeenshire Council are already in close contact with the company, and a multi-agency task force is convening this Friday in Aberdeen to establish what level of support the company might require from the public sector to enable the business to continue in both the short and the longer term.
The cabinet secretary will be aware that Northbay Pelagic’s facility is one of the most important fish-processing facilities in the country and that this is a crucial time of year, as it marks the start of the mackerel season. Ian Gatt, chief executive of the Scottish Pelagic Fishermen’s Association, has suggested that the incident could lead to buyers and fishermen looking to other ports—even ports in Norway—to do business. Has the cabinet secretary had discussions with local stakeholders about how to prevent that from occurring? Can he help the company to find temporary accommodation, for example, so that we limit the impact that the incident has on the local economy?
As the member can imagine, the Scottish Government is very keen to help limit the impact on the local economy in any way we can. We recognise the importance of the factory to the local economy, and Scottish Government officials will be involved in the task force that has been set up this week.
I will have to wait for feedback from the various agencies, the local community, the local authority and the company to get an understanding of how best the Scottish Government can intervene. We have instructed all the public agencies to take the matter extremely seriously, not least to give some comfort to the staff—who remain in employment on full-time pay—that everything is being done to secure their future.
The minister helpfully referred to the local economy. In particular, has any contact been made with other businesses in Peterhead and beyond to find out what the knock-on effects are and to establish what the Government and others can do to assist?
I assure Stewart Stevenson that that is one of the issues that will be discussed at this week’s meeting of the task force. We are aware not only that the fire is an issue for the factory, which is a significant employer in Peterhead, but that many suppliers rely on the company for their business, so there will indeed be a knock-on impact.
It is also worth saying that other pelagic businesses in the area have been in contact with Northbay to offer support. We should welcome that and thank them for doing so. The local community is putting a lot of effort into rallying round the staff, the business in question and the other businesses affected.
I assure Stewart Stevenson that we will pay close attention to the knock-on impact on other businesses in the locality.
I welcome the establishment of the task force, which will be hugely important for the fishing industry and for the knock-on effect on local economic development.
I want to focus on the regeneration opportunity that could come from rebuilding the factory. Has the cabinet secretary been in discussion with Aberdeenshire Council about the regeneration impact of getting on the ground fast with a replacement facility?
Sarah Boyack makes a good point about the role of Aberdeenshire Council. As she can imagine, given that the company has stated its intention to rebuild the factory as soon as possible, that will require the council’s co-operation with planning permission and other permissions. If other public agencies are also involved in that process, I would be keen for them to expedite the process, where possible. That is part of our thinking as we move forward, because we want the workers concerned to have a job for the future, just as we want the companies that rely on Northbay for business to continue to have that business.
Wider issues will arise. I should mention that the pelagic boats would normally have been out at sea at the time of year that the fire occurred. If they had been landing fish to be processed, that would have created a problem but, because of the poor weather, supplies were not being landed to the extent that they would normally be. The problem was therefore not as bad as it could have been if the factory had been full of stock. We will look at any wider issues that emerge.
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