Chamber and committees

This is my last question. To what extent is the Scottish Government preparing for a future funding requirement, recognising that financial assurances have only been provided until February 2024?

The letter of comfort was given in 2023 and it covers FMPG until 2024. The latest update that we have is that 801, or MV Glen Sannox, would be finished by the summer or the end of 2023 at the very latest. The latest update on 802 is that it would be finished by the summer or the end of 2024 at the latest, which is actually outwith the letter of comfort.

Looking at the milestone payments, it seems to me that FMPG has already slipped on timescales. We have already said that we cannot be definitive about whether that cost will be accurate. We have asked officials before about whether this is a blank cheque until the boats are completed. Is it, in effect, a blank cheque?

You state that FMPG funding requests are subject to due diligence by the Scottish Government. Can you provide more detail about the process that is in place for that work to happen?

The report highlights that there could be a future funding requirement of around £9.5 million, based on FMPG’s estimate of final costs. The report also highlights that the consultant who was commissioned to review FMPG’s financial forecasts raised some concerns, including about the estimate of contingency being too low. On that basis, how realistic do you consider the future funding requirement of £9.5 million to be?

Good morning, Auditor General. The Scottish Government issued a letter of comfort to FMPG providing assurances that it would be supported financially

“for at least 12 months from February 2023”.

Does that mean that FMPG can continue to make expenditure commitments, such as the ones made between October and December 2022, beyond its allocated budget for the year?

I absolutely agree with everything that Paul Sweeney has just said. We need to have a less cluttered environment. It needs to be a lot clearer so that businesses know where to go for help so that they can get employees with the skill sets that they need. They also need to be able to highlight that to the Government and educational institutions so that we know which courses we need. Having visited Ayrshire College, I know that a lot of work is already under way between it and the local industry to provide pathway courses for young people to give them the skills that will enable them to enter the sector.

As we attract more investment and highly skilled workers, we will also need to have the support of both our Governments to ensure that adequate funding is delivered so that the building blocks that we put in place now are fit for purpose in the future.

We cannot underestimate the cost of acquiring land and erecting buildings for that work to take place—and the work does not stop there. If we are to entice the brightest and the best, they will need homes to live in and roads to drive on, which means that we must invest in local infrastructure.

Scotland has many opportunities in the space industry, but we need to lay the groundwork today to ensure success tomorrow and in the future.

As has been mentioned in contributions from other members, Scotland’s space sector continues to grow and contributes significantly to our economy. The space industry is a rapidly growing field, and Scotland has the potential to be at the forefront of that exciting sector. The war in Ukraine is affecting satellite launch capability around the world and there is a renewed need to develop that technology here, at home, and to fully harness that expanding market.

Scotland is home to more than 140 space organisations, including significant players such as Spire Global, AAC Clyde Space and the universities of Strathclyde, Edinburgh and Glasgow. The industry generates around £5.6 billion in turnover and provides 22,000 jobs and 910 apprenticeships across the country, adding £2.3 billion to the Scottish economy.

That is why the recent partnership between Spirit Aerosystems and Astraius to improve future satellite launch capability at Prestwick spaceport is fantastic news not only for Ayrshire but for Scotland and the United Kingdom. That collaboration is part of the UK’s plan to secure a larger share of the global space economy, which is expected to be worth £490 billion by 2030, as Richard Lochhead said earlier.

The Prestwick spaceport aims to become Europe’s premier location for launching small satellites into orbit via air launch, and the collaboration between Spirit and Astraius will speed up the development of system components and key processes for the Astraius horizontal launch platform. It has the potential to drive growth in the science and engineering supply chains, create new jobs and career paths and inspire the next generation of space professionals across the UK.

The recent announcement by Mangata Networks, which plans to establish a new space engineering, manufacturing and operations hub in Prestwick as part of the Ayrshire growth deal, demonstrates Scotland’s welcoming environment for investors. It will create up to 575 new jobs over the coming years, making the Prestwick airport hub a significant economic driver for Ayrshire. We must make sure that Scotland has an attractive economy so that we can best capitalise on this booming industry.

Scotland’s geographic location and robust aerospace manufacturing sector make it an ideal location for polar rocket and satellite launches. However, the availability of talent is crucial to Scotland’s space industry’s success, as several members mentioned in their contributions. The same engineering pool is stretched across a variety of engineering sectors, including aerospace and military, meaning that employers are in stiff competition with each other. As one industry expert told me,

“The success of Scotland’s space sector is predicated on one thing—people. Whether Research & Development, supply chain opportunities, whatever, it is all built upon our supply of skills. As the space sector has fantastic growth, so too do other engineering sectors such as aerospace, defence, advanced manufacturing and so on, they all draw from the same engineering talent pool, and that pool is already running close to dry.”

As the demand for skilled workers continues to rise, it will be increasingly important for Governments, the industry and educational institutions to collaborate on adapting and improving training programmes. Such co-ordinated thinking will enable us to identify the skills and knowledge that are most in demand and ensure that training programmes are designed to meet those needs.

Earlier this month, Mike Russell, the president of the Scottish National Party and a former constitution secretary, told The Herald newspaper:

“I don’t think Scottish independence can be secured right now”.

In the light of that statement, why is the SNP Government wasting time contemplating such hypothetical situations instead of focusing on the real and present priorities of the Scottish people?

To ask the Scottish Government what its position is on reported potential reductions to bed numbers and the closure of a ward at University hospital Ayr. (S6O-02110)

Five months ago, I wrote to Humza Yousaf to demand that services at Ayr hospital not be reduced. He replied that there were “absolutely no plans” to close surgical, intensive care unit or accident and emergency services. Now, however, it is reported that ward 10 in Ayr hospital may close, 75 beds could be cut and ICU beds are being moved to Crosshouse hospital. One senior national health service staff member described that move to me as “shocking”. It lets down NHS staff and puts patient safety at risk.

Can the cabinet secretary tell us why the First Minister has broken his promise to the people of Ayrshire?