Chamber and committees

Okay. With this summer’s high temperatures, we saw water scarcity in some parts of Scotland. Are you able to provide an update on Scotland’s water levels, and on how you are working with SEPA to help to improve resilience to water scarcity?

Evidence also emphasised the importance of reusing and repurposing existing buildings—you just touched on this—over demolition and construction to reduce waste and embodied carbon. How can the Scottish Government strengthen decision-making and planning legislation to encourage that, so that local authorities are not just demolishing buildings all the time?

I am always quiet, convener. Good morning. My questions are about waste and the circular economy. I will get straight into them because I know that we are short of time. Written evidence has highlighted the importance of innovation, skills and procurement to support a transition to the circular economy. What support can the Scottish Government provide to local authorities to use circular economy approaches to procurement?

The programme for government includes a commitment to consult on a new flooding strategy for Scotland. Will the cabinet secretary provide more details on that commitment? How will that improve resilience in relation to the impacts of climate change?

Some councils consider that planning tools to protect natural infrastructure are insufficient and that there is a lack of resources to enforce existing rules. How will the Scottish Government ensure that local authorities have the planning tools and enforcement resources to protect existing natural infrastructure, such as trees?

If you do not mind, convener, I want to go back Fiona Hyslop’s first question. Cabinet secretary, are you able to provide an update on the Scottish Government’s work on carbon capture and storage?

How can the Scottish Government be assured that the new national guidance for child protection is being implemented in schools? How is the Scottish Government ensuring that there is oversight of private music or dance lessons in schools and other settings?

As the minister will be aware, one of the Auditor General’s key recommendations in the skills planning report was the provision of clarity on the governance and oversight arrangements for skills alignment activity. How will the review achieve that?

I welcome the opportunity to speak in this vital debate on Scotland’s inward investment and export growth plans.

Scotland is leading the UK when it comes to securing foreign direct investment, in spite of the significant challenges that Brexit and the pandemic pose. Scotland is an attractive country for investors due to our highly skilled workforce and strong business networks, which are supported by regional economic advisory bodies.

Our goods exports, excluding our oil and gas, increased by 5.7 per cent from March 2020 to March 2022, while UK goods exports decreased by 2.9 per cent in the same period. Indeed, Scotland attracted 119 inward investment projects in the year to the end of March 2022, which is a 29 per cent rise from the previous 12 months, creating 4,408 new highly skilled jobs for people here in Scotland. That shows that our Scottish Government’s approach to attracting investment is working.

People and business are prepared to invest here due to our progressive, internationalist outlook, as compared to the that of the insular, ideologically driven UK Government. Scotland has been the most successful nation in the UK, outside of London, for nine of the past 11 years, and for the seventh year running it is the most successful at attracting foreign direct investment. That is a testament to our highly qualified workforce and its exceptional skill base.

Indeed, my home city of Aberdeen, along with Edinburgh and Glasgow, remains in the top 10 locations outside of London for attracting inward investment projects. Our four leading sectors are digital technology, utility supply, business and professional services, and machinery and equipment.

Digital projects in Scotland have increased by an impressive 73.4 per cent, in contrast to a 7 per cent decline in Europe and only a 7 per cent increase in the UK overall. Scotland is now firmly established as the UK’s number 2 location for digital projects, behind London. That is welcome, and Scotland will continue to do all that it can, within the bounds of the devolution settlement, to have a progressive approach to attracting inward investment. Scotland will show its success as we build on our record as a world leader.

It would be remiss of me to discuss the success of Scotland’s approach to inward investment without acknowledging the challenges that we face that have been caused by the UK Government. Brexit is forecast to cause more harm to the economy than Covid did. The Office for Budget Responsibility has forecast that the impact of Brexit on UK productivity will be worse in the long run than the impact of Covid-19, with Brexit reducing the UK’s potential productivity by 4 per cent—which amounts to around £40 billion a year—whereas the pandemic is expected to have reduced it by 2 per cent.

Indeed, recent trade statistics underline the negative impact of Scotland’s forced exit from the EU. Scotland’s total trade with the EU was 16 per cent lower in 2021 than in 2019. Trade with non-EU countries fell by just 4 per cent over the same period. Now, a London School of Economics and Political Science study shows that Brexit-related trade barriers have so far driven a 6 per cent increase in UK food prices, adding to the Tory-made cost of living crisis for households not only in Aberdeen Donside but across Scotland. If it were not for the Tories and Brexit, Scotland’s exports would be soaring. Do not take just my word for it. Exports of goods to the EU from Scotland were 19 per cent lower in 2021 compared to 2018, while exports of goods to non-EU countries were only 4 per cent lower. The difference was Brexit. Trade figures continue to highlight the negative impact of Brexit on our economy and to strengthen the case for Scotland to be an independent country. We will do so much better when we control our own affairs.

Of course, one potential opportunity could really boost the economy of the north-east, and it would be remiss of me not to mention it. A major regional alliance between Aberdeen International Airport, the Port of Aberdeen, Peterhead Port Authority, Aberdeen City Council and Aberdeenshire Council has announced its formal bid for green free port status for the north-east. If successful, the bid will boost gross value-added income by £7.5 billion over the next decade and usher in a new era of investment, innovation, regional regeneration and opportunities for those who need them most across north-east Scotland.

It is estimated that 30,000 highly skilled, highly paid jobs would come to the region, and I want to help make that happen. Although the minister cannot comment on any particular bid, as the Scottish and UK Governments are still to determine the successful projects, I seek assurances from the minister that the north-east’s bid will receive full consideration. Not only could it bring an economic boost to the north-east, it could help the region to reach our net zero ambitions.

I welcome this debate, I welcome the progress that is being made to attract inward investment in Scotland and I reiterate my ask for a potential green free port for north-east Scotland.

I have a question about how the councils have responded to the need for transparent reporting around climate change. Have councils been adequately assessing and reporting the risks of climate change in their areas and addressing the mitigations?