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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 20 December 2025
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Displaying 1037 contributions

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Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 21 January 2025

Michael Matheson

Okay, thank you.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 21 January 2025

Michael Matheson

Transport connectivity is the glue in the economy that brings it all together, which is critical.

I want to turn to a slightly different issue—that of bus manufacturing in Scotland. Last summer, the Scottish zero emission bus challenge fund provided funding for the manufacturing of 252 electric buses, which will be distributed across the bus network. Various companies submitted bids for some of that funding. Of the 252 electric buses that are being funded through ScotZEB 2, 44 of them will be manufactured in Scotland. That represents 17 per cent of the overall funding package. The remaining 208 will be manufactured by Pelican Yutong in China.

In effect, we are using taxpayers’ money to subsidise the manufacturing of buses in China by a company that probably does not have to comply with fair work principles in the way that companies such as Alexander Dennis in my constituency do. What more can we do to ensure that, when we invest Scottish Government funding in supporting further electrification and decarbonisation of our bus network, we also support manufacturing jobs here in Scotland and do not simply subsidise companies in other parts of the world that do not comply with fair work principles?

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 21 January 2025

Michael Matheson

It could be one way or the other, or a combination.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 21 January 2025

Michael Matheson

Okay, and will the existing HST rolling stock remain in place until the replacement is ready to be rolled out?

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Michael Matheson

Are we seeing a faster throughput already?

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Michael Matheson

It is the net zero finance project.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Michael Matheson

It was a cross-portfolio net zero financial risk project.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Michael Matheson

That will be helpful, thanks.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Michael Matheson

In your response to the committee’s draft budget scrutiny letter, you mentioned that you were undertaking a

“cross-portfolio Net Zero finance project”

to look at the climate change programme financial risk. Can you update the committee on how that work has been taken forward and what it involves?

Net Zero, Energy and Transport Committee

Budget Scrutiny 2025-26

Meeting date: 14 January 2025

Michael Matheson

I am aware of the Eyemouth development: I was fortunate enough to open it, when I was a cabinet secretary.

My next question will take you to confidence in the sector about using the money to deliver the outcomes that you are trying to achieve. I am keen to understand what the funding will be over two years. From where we are today, what will success look like in two years, when you are back before the committee and we ask you what that £150 million—or in excess of that, over two years—has delivered?

Key to that is confidence in the sector about consenting of projects, so that there is an on-going beat of projects that will attract manufacturing capacity. The budget funding is specifically for capital, with a small amount of revenue funding. Will any of it be used to ensure that we have sufficient capacity within the consenting elements of Government to ensure that there is a timely and effective process in place to deal with projects? I am sure that you are well aware of the on-going concerns about delays and the length of time that it can take for projects to be delivered, which creates uncertainty in the sector.

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