Net Zero, Energy and Transport
Good afternoon. The first item of business this afternoon is portfolio question time and the portfolio is net zero, energy and transport.
Clyde and Hebrides Ferry Services
To ask the Scottish Government for what reason it decided to make a direct award of the Clyde and Hebrides ferry services contract to CalMac. (S6O-04696)
This is a unique opportunity to change the emphasis from having a commercially driven arrangement to having a public-focused service that is wholly directed at meeting the important and particular needs of island communities. A direct award will enable Scottish ministers to have greater influence on strategic objectives and on significant decisions relating to the provision of the Clyde and Hebrides ferry services. That will provide the necessary flexibility to drive improvements and adapt to the evolving needs of our island communities.
CalMac services have been pushed to the limit and, as we head into the summer months, islanders are being left at the whim of an ageing fleet thanks to last week’s announcement that the issue of the MV Glen Rosa will not be resolved until next year.
Now that a direct award has been made, what guarantees has the cabinet secretary received from CalMac, Caledonian Maritime Assets Ltd and Ferguson Marine that the new contract will not result in the same poor level of service as the current one?
We have announced that it is our preferred intention that the contract will be awarded in October, and we are working to deliver that.
The most recent full-year statistics show that, out of 170,000 scheduled sailings between October 2023 and September 2024, only 3.4 per cent were cancelled due to technical and other reasons, such as weather-related issues.
I had a meeting this morning with CMAL regarding the delivery of the four new vessels that we expect in the next year. Important work is also being conducted on ports and harbours. That investment will be supplemented and supported by key performance indicators in the contract. I also met this morning with the chair of the ferries community board, and the board is actively involved in ensuring that the service delivery improvements that I spoke about will be realised for the benefit of islanders.
As the cabinet secretary knows, concerns have been raised by islanders and others who are frustrated that CalMac has not fulfilled all the terms of the current contract. I was pleased to hear that there will be more customer focus in the next contract, but what confidence does the cabinet secretary have and what steps are in place to ensure that CalMac will, indeed, be more customer focused in the forthcoming contract and in the months and years ahead?
The technical compliance that I spoke about when I made the initial announcement will enable strategic oversight.
Regarding delivery, instead of simply working to a contract that includes variations that can be used for flexibility in services, there will be a culture of continuous improvement in operations and of accountability to the KPIs that I referred to. Those are being developed, in conjunction with communities and trade unions, to drive forward the improvement culture that everyone expects.
I welcome the direct award to CalMac, which was the right thing to do. Yesterday, we debated how we can empower our island communities, and part of that is ensuring that they are better represented in the organisations that deliver the services that they rely on. Has the cabinet secretary given active consideration to having direct representation of islanders on the CalMac and CMAL boards?
Both boards already have islanders on them, and the next round of CalMac board appointments, which is about to commence, will specifically include islander representation.
Question 2 was not lodged.
Electricity Act 1989 (Cumulative Impact Assessment)
To ask the Scottish Government to what extent current projects will be included when making a cumulative impact assessment for a section 36 application under the Electricity Act 1989. (S6O-04698)
When new energy developments come forward, applications are subject to site-specific assessments by the decision maker. The cumulative effects of developments are an important consideration in the decision-making process, alongside potential impacts on communities, nature and cultural heritage. When an application is ready to be determined, Scottish ministers consider all relevant material that is available to them before making any decision. The merits of each proposal are considered on a case-by-case basis, and a careful balance must be struck.
Most people would assume that a reporter would consider all the available information. However, for the public inquiry into the proposed Hill of Fare wind farm, the cumulative impact assessment will consider only other projects that were consented or the subject of a full planning application at 10 August 2023. That is more than two years before the reporter will hold her inquiry. It will fail to take into account applications that are known about but are in the earlier stages of planning and consultation, as well as any other energy infrastructure projects.
We know that the planning system is outdated, but given that, this week, the minister welcomed the fact that councils are developing renewable energy mapping tools, is it not right that all available information be considered?
The member will not be too surprised to hear me say that I cannot comment on the specific case that he mentions. However, it is the case that, in the process, the decision makers consider all the available evidence. I realise that the member’s point is about forthcoming proposals. In reaching a decision, ministers will determine applications in accordance with legislative requirements and relevant policy, and any cumulative impact assessment that is made is limited to considering existing and already approved developments. However, as I have indicated, all representations that are made in any community about an application are considered when a decision is made.
Proof of Concept Fund (Just Transition in North East Scotland)
To ask the Scottish Government what discussions the net zero secretary has had with ministerial colleagues regarding how the recently announced proof of concept fund will encourage an innovative just transition in the North East Scotland region. (S6O-04699)
We will launch a pilot proof of concept fund this year to support university researchers, including those from the north-east, to develop their innovative ideas and technologies and to bridge the gap between groundbreaking research and commercial applications. Through the fund, we hope to increase the pipeline of projects with commercial potential and support economic development. Meanwhile, we are also working in partnership with the United Kingdom Government and the North East of Scotland Regional Economic Partnership to deliver its investment zone, which will help to accelerate the realisation of its regional economic strategy.
It is vital that we work to support innovation at all levels, particularly when we are furthering our investment and ambitions to deliver our green energy transition. In that regard, my constituency of Aberdeen South and North Kincardine and the wider north-east host a wealth of innovators and inventors. Can the cabinet secretary say more about how the Scottish Government is supporting young tech innovators and entrepreneurs across Scotland?
Our national innovation strategy sets out actions to utilise innovation as a driver to grow the economy and create jobs. We are actively supporting entrepreneurs and young tech innovators through several initiatives including our Techscaler programme, which is designed to create, develop and scale tech start-ups. We are supporting the young EDGE—encouraging dynamic growth entrepreneurs—awards to recognise and reward exceptional young talent in the tech sector. We also work with universities and colleges to deliver the entrepreneurial campus blueprint, ensuring that more young people develop entrepreneurial skills, and we are providing support through the ecosystem fund, which enables young entrepreneurs to access vital resources, knowledge and connections.
Today, the Just Transition Commission published its latest damning report, which highlights how this devolved Government is failing workers in the north-east. The report’s message is clear: this Government is not delivering a just transition for Aberdeen and the north-east. The SNP simply does not care about the hard-working oil and gas workers in the north-east. My constituents do not need another report to tell them what they already know. They need action, and they need it now. Has the cabinet secretary read the report? What is her response, and what is she going to do about it?
Please respond to the substantive question, cabinet secretary.
I have read the report and, indeed, I welcome all the interventions that the Just Transition Commission made. I work very closely with the Just Transition Commission.
I cannot really answer Douglas Lumsden’s question based on the original question that was put to me by Audrey Nicoll, about the proof of concept fund, but I want to give clarity to the Parliament that I take everything that the Just Transition Commission says very seriously and I regularly work with it on how we can deliver a just transition in the north-east.
Social Tariff Working Group
To ask the Scottish Government what discussions it has had with the United Kingdom Government regarding progress on the recommendations in the final report by the social tariff working group. (S6O-04700)
The Scottish Government’s working group, which included energy suppliers and consumer fuel poverty and disability groups, called for a social tariff to cut fuel bills for Scots in its final report.
In March, we wrote to the UK Government to share the final report and press for the urgent introduction of a targeted discount on bills to address unaffordable energy prices at source. We are in regular dialogue on energy affordability and have been fully involved in the UK Government’s recently convened data working group, which is critical to delivering automatic and targeted energy bill support that is based on a sophisticated set of metrics. The powers to deliver the scheme are reserved, but we remain committed to working with the UK Government to make urgent progress on that critical policy.
Does the minister agree that the targeting of support is urgently needed to ensure that consumers are protected against high costs at source and can afford all their energy needs, and that, although the report recommends a robust scheme, the reality is that the UK Government is ultimately responsible in that policy area and must urgently deliver a unit rate discount with the level of discount proportionate to need?
I whole-heartedly agree. We have worked hard and collaboratively to present a compelling way forward, and we have achieved a rare degree of consensus on a social tariff to bring down energy bills.
A key principle of our report is that support needs to be targeted, as the member indicated, and based on a meaningful set of metrics, including, for example, a combination of household income, medical need and rurality.
I have been clear with the UK Government that its current approach of relying on the warm home discount scheme provides too little help for those who are most in need and it does not provide it when they need it. Again, therefore, I call on the UK Government to deliver a new and additional scheme that provides a unit rate discount with the level of discount that is proportionate to need.
Port of Leith (Contribution to Net Zero)
To ask the Scottish Government how it is working with partners to support the port of Leith’s contribution to Scotland’s net zero ambitions. (S6O-04701)
As it is part of the Forth green freeport, the port of Leith will benefit from green port incentives, which include reliefs on non-domestic rates, increased capital allowances, reduced national insurance costs, land and buildings transaction tax reliefs and up to £25 million-worth of seed capital and long-term funding provided by the Scottish Government, which will allow local authorities to retain relevant non-domestic rates to reinvest in the programme.
We have also committed to invest up to £500 million over five years to leverage private investment in the infrastructure and manufacturing facilities that are critical to the growth of the offshore wind sector. We are taking a team Scotland approach when engaging with potential inward investors, including Vestas, to ensure that we maximise those opportunities.
I thank the cabinet secretary for that detailed answer, and for of all the investment and effort that is going into realising the potential that she set out.
As has been mentioned, the developing green economic activity at the port of Leith will be significant, which is why, in recent weeks, I hosted a round-table event with employers, local educators and the Minister for Higher and Further Education; and Minister for Veterans, to help to facilitate further collaboration to nurture the workforce that will be required. I will follow up my question with a letter to the Scottish Government. One of the suggestions that was made on the evening was to utilise some of ScotWind’s revenues to help to fund skills development initiatives in the area. Will ministers consider that as part of the budget formation in the months ahead, to prepare the workforce that we will need in the coming years?
I am glad that Graeme Dey was able to meet Forth Ports and Mr Macpherson on 12 May. The 2025-26 budget utilised more than £300 million of ScotWind funding to be targeted at activities with long-lasting benefits for the people of Scotland. We will continue to invest ScotWind revenues in a range of projects.
As Mr Macpherson outlined, the Forth green freeport has a skills plan, which is funded by businesses that benefit from the tax incentives at the site that I mentioned. The Government provides non-domestic rates relief to green ports, which can also be invested in skills and workforce development.
Mr Macpherson will also know that we are providing targeted funding to colleges over the next year, as part of the budget that was approved by Parliament, to establish an offshore wind skills programme, which will help to create region-specific training hubs for offshore wind skills. That is on top of funding that has already been committed to a just transition for the energy sector.
I welcome the cabinet secretary’s reference to the importance of renewables manufacturing at the port of Leith, and the need to have a joined-up approach to delivery and to invest in skills and training. However, will she acknowledge the need to tackle the significant problem of planning delays, which the renewables sector regularly raises with us? Projects can be in planning for more than two years. That affects not just low-carbon projects; it affects all the supply chains and jobs that come with them.
I point to the energy consents unit in the Scottish Government. We have been tasked by the industry to vastly reduce the amount of time that is associated with consents. We have invested in doubling the capacity of personnel in the unit, which has been met with a great deal of praise from the sector. We are committed to delivering on consents within 12 months.
Transport Infrastructure in Highlands and Islands (Ferries)
To ask the Scottish Government whether it will provide an update on its plans to improve transport infrastructure in the Highlands and Islands, particularly in response to the reported request from Highland Council for additional support to run its six ferry services. (S6O-04702)
The Scottish Government remains committed to continuing to improve the transport infrastructure in the Highlands and Islands, for which we have direct responsibility. We are introducing new vessels to our ferry networks and are delivering further upgrades to key trunk roads and public transport infrastructure. We have invested more than £2 billion in our ferry services since 2007, and we have outlined plans to invest around £700 million in a five-year plan to improve ferry infrastructure. That includes the delivery of more new major ferries and the small vessel replacement programme.
We are also supporting the four local authorities that operate their own ferry services—we have increased funding from £41.7 million in 2023-24 to around £70 million in 2025-26. That includes the full £1.521 million requested by Highland Council for this year.
I welcome the funding for replacing the Corran ferry, which I had called for in the chamber. However, the rising costs of maintaining the ageing fleet, the Tory legacy of inflation and the Labour United Kingdom Government’s decision to increase employer national insurance contributions have put considerable pressure on the sustainability of those services. Will the cabinet secretary commit to asking Transport Scotland to boost Highland Council’s funding this year?
The funding for local authority ferries, which I outlined and which has increased from £41.7 million to £70 million this year, acknowledges some of the increasing pressures. Transport Scotland does not fund Highland Council directly. Local authority funding is determined at a local government level; the Cabinet Secretary for Finance and Local Government is actively involved in that. As I outlined in my initial answer, we have been very responsive to the request from Highland Council.
Will the cabinet secretary outline what improvements to transport infrastructure and provision have been brought about since the Scottish National Party took office, what has been achieved as a result and what engagement the Government has had with Highland Council since the announcement that it was to receive £28 million for the Corran ferry?
Since the announcement of the arrangements and funding agreements for the new Corran ferry, Scottish Government and Transport Scotland officials have been engaging with Highland Council on a timeline for delivery of the new vessel and on potential procurement routes. It will be for Highland Council to consider and manage the appropriate route to overall delivery.
The member asked what the Scottish Government has achieved for the Highlands and Islands. I highlight that there have been 10 major trunk road upgrades. We have also opened new rail stations including one at Inverness airport. Our recent investment has enabled the lengthening of platforms at some Highland stations, which this year has allowed longer trains to be deployed on the Highland main line.
In addition, some 57,000 young people aged under 22 across the Highlands and Islands benefit from free bus travel. We have invested £2 billion in ferry services since 2007. The road equivalent tariff saves passengers around £25 million a year. Northern isles residents receive a 30 per cent discount on ferry fares. We have also recently extended free ferry travel for under-22s in local authority-run Highland communities.
An update on the dualling of the A9, which was meant to be completed this year, was noticeably absent from the cabinet secretary’s answer.
I have repeatedly highlighted the growing crisis in our ferries fleet, including vessels that are operated by our councils. In Highland, Orkney and Shetland, there is an increasingly urgent need for a serious replacement plan, the cost of which could run into billions of pounds. Without passing the buck to local councils, which the cabinet secretary knows fine well are reliant on funding from the Scottish Government, what does she estimate to be the cost of any replacement scheme over the next 10 years? Is she comfortable with progress on delivering any replacement scheme, given that there is still no timetable, cost projection or funding commitment in place?
The member will be aware that there are separate ferry replacement task forces for Shetland and Orkney, both of which are chaired by the Cabinet Secretary for Finance and Local Government. I regularly meet members of the respective councils, in which I am supported by the Minister for Agriculture and Connectivity, Jim Fairlie.
The member will also be aware that, in the recent budget that he did not vote for, £10 million was provided for each of those councils to do exactly the work that he says needs to be done to identify the scale of the issue. It is not just about ferry replacements; it can include other types of connectivity. For example, a number of people in the island communities that I am personally supportive of consider tunnels to be a potential alternative for the longer term.
However, the member is right to highlight the need to identify the scale of what is required. That is why it was important for the Scottish Government to provide funding to help with the scoping work that he has asked for.
As the cabinet secretary has alluded to, in the recent budget—and thanks to the Scottish Liberal Democrats—additional funding was put in place to support the pathway towards procurement of new ferries. However, in the isles that rely on those lifeline routes there is growing frustration at the lack of a timetable for the replacement process to get under way. Will the cabinet secretary advise when the task force is next due to meet? Will she give an indication of the likely timeframe for that process?
As I outlined, the Cabinet Secretary for Finance and Local Government chairs that task force, and I am not a member of it. However, I will ask for the information that Mr McArthur requires to be relayed to him in written form.
Parking and Road Safety (Loch Lomond and the Trossachs National Park)
To ask the Scottish Government what engagement it has had with stakeholders regarding safe parking and road use in popular rural areas, including Loch Lomond and the Trossachs national park. (S6O-04703)
In Scotland, the majority of car parks and roads in rural areas, including Loch Lomond and the Trossachs, are managed locally by local authorities or private car park owners. It is a matter for each local authority to engage with stakeholders to promote the safe use of roads and car parks in its area and to adhere to any legislation that applies.
On the specific issues that are affecting the Loch Lomond and the Trossachs national park, the Scottish Government is a member of the national park safe recovery action group, which was formed in 2020 in response to increased visitor levels following the Covid pandemic. The group’s primary objective is to collaboratively manage visitor-related pressures across the national park.
Temporary clearways on trunk roads in popular rural locations such as those near the A84 and A82 play an important role in keeping our roads safe. What consideration has the Scottish Government made of whether such clearways should be made permanent?
Several permanent clearway orders for popular tourist locations on the trunk road network are under consideration, including for the locations that the member has mentioned. Those orders will proceed through the relevant legislative processes. The areas under consideration include the A84 at Loch Lubnaig and the A82 at the Falls of Falloch. Clearways might have a role to play there, but those determinations must follow the relevant legislative processes.
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