Chamber and committees

I want to get a flavour of something from the witnesses. We have been focusing a lot on revenue rather than capital.

Lukas, do you have anything final to add?

My question is on a slightly different theme.

Well, we are coming on to it.

I have a short question about what might occur in future. Has the cabinet secretary explored with Petroineos the possibility that the shares held by PetroChina might be sold, thus leaving Ineos with a slightly different proposition to consider? I am not saying that that will be the case but that all those potential business options must be on the table.

On that point—

I will just make a few short remarks—you can be sure that I intend to come in well under the time allocated, Presiding Officer.

I welcome the initiative and, in my short remarks today, I will make a few points about it. However, I cannot speak today without making reference to the Grangemouth refinery, which is based in my constituency. I appreciate and understand that there is a long road to travel to try to get a positive outcome, and I simply note that I, as a constituency MSP, will play my part.

I welcome point 5 in “Green Industrial Strategy”, which calls for Scotland to become a centre for clean energy and the clean energy intensive industries of the future. I have always been ambitious for Scotland, and I am heartened to see us focusing on areas where we can compete at a global level. I am particularly pleased to note that, although there is considerable uncertainty about the facility at the moment, there is a prominent role for Grangemouth, with the document stating that a key part of the strategy involves utilising

“our existing industrial assets such as our port infrastructure, new Green Freeports and Grangemouth.”

I am also personally pleased to note the prominence given to the development of the hydrogen sector, not least as it is my belief that that is an area where Grangemouth has the potential to play a major role.

Innovation is recognised as being of critical importance and, in that regard, partnering with Scotland’s universities, Scottish business and the investment community will be key. I know that the Deputy First Minister understands the crucial role that our academic community can play, and that the return on investment can add real value, as well as positioning us for where we want to be. Since my election, I have spent time engaging with many of Scotland’s universities, particularly in relation to their research, and I add my voice to others who recently commended the work of the University of Dundee and its school of life sciences. I am pleased to see that the role of our universities is recognised in the strategy. However, I would like to see the retention of more commercialised research in Scotland. That is important.

The emphasis on partnership working is, of course, fundamental. The Government alone cannot fund all the investment that is required. We need to unlock the huge potential investment from business investors and the like. That will require strengthening the culture of partnership working where Government uses its convening power and financial heft where required. I give my now habitual reminder regarding the scale of investment that is needed globally. Although estimates vary, they are all counted in the trillions of pounds annually. As recently as March this year, the Scottish Fiscal Commission indicated that the Scottish Government needed to spend £1.1 billion, on average, every year into the future, at current prices. However, one of the most telling conclusions of the Scottish Fiscal Commission’s analysis was that

“the fiscal burden of reaching the UK’s net zero target may fall disproportionately on the Scottish Government because a greater share of the UK reduction in emissions relating to forestry and land use needs to take place in Scotland.”

It therefore makes it clear that the mechanism of Barnett consequentials will not be enough. The same SFC document also points out that the UK cannot and will not reach its net zero targets without Scotland.

I know that this is a matter that is dear to the heart of the Deputy First Minister. We need to ensure that our investment supports not only the growth and scale-up of existing businesses but also the creation of new businesses, entrepreneurs and innovators. My particular wish is for women entrepreneurs and business owners to take a fair seat at the table. I know that wish is shared by many in the chamber and it is something that I will continue to progress.

My final point is on housing. We need to build far more net zero homes. Although I welcome the increase in expenditure on housing in the recent programme for government, I believe that we need to do much, much more. I note the challenge of retrofitting existing housing stock, where there are no easy answers, and I welcome the efforts to court institutional investors and rebuild relationships with developers. However, the challenge for us all is significant.

My thoughts are first and foremost with the workers at the refinery in Grangemouth, for whom today’s announcement will be a shock, if not a surprise. I am also mindful of the community, for whom a just transition will feel too far away. As a constituency MSP, I will do everything in my power to sustain the life of the refinery and to ensure that it and the important chemical cluster around it can be supported.

I note that the £100 million that has been quoted by the United Kingdom Government and the Labour Party includes £80 million that was already agreed as part of the growth deal for the wider Falkirk district, which included £50 million from the Scottish Government, and that those funds will not be solely focused on Grangemouth.

However, I can today make members aware that I have been working with a third party that hopes to purchase the refinery in its entirety. The matter is, of course, commercially sensitive and confidential, but will the First Minister meet me so that I can share what information I can, with the permission of the potential buyer?

I have a few questions for Stuart Black and Jane Morrison-Ross from the enterprise agencies, and it is fine if they want to bring in their colleagues.

We have already touched on capital budgets. Earlier this year, the Scottish Fiscal Commission predicted a 20 per cent cut in the availability of Scottish Government capex over the next five years. We also know that the UK has seen low capital investment in comparison with other advanced economies.

That investment ultimately flows to you. Can you talk about how the short-term nature of capital budgets and the potential for variation within years affect your strategic and long-range planning?

I know that Stuart Black has mentioned the issue, but I am interested in his views on it as well.