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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 17 March 2026
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Displaying 3016 contributions

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Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 28 May 2025

Colin Beattie

I will move on to my final question, the subject of which has been touched on already. Because annual budget rules affect the bank’s ability to plan long term, any investments that are made are not for the long term; I note, however, that part of the bank’s responsibility is to provide patient capital. Can you tell us a little bit more about how the accounting rules impact on the bank’s ability to plan long term? Are you aware of engagement between the bank’s leaders and Scottish ministers on providing increased flexibility? After all, it is difficult for a bank to operate within such rigid rules.

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 28 May 2025

Colin Beattie

What happens if the asset becomes impaired?

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 28 May 2025

Colin Beattie

Given that the whole purpose of the Scottish National Investment Bank is to take on higher-risk assets, the risk that it will end up with impaired assets will be higher. That is part of its job.

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 28 May 2025

Colin Beattie

What are the implications of that? Financial transactions have to be repaid, and that obligation is on the Scottish Government and not necessarily on SNIB, unless there is a back-to-back agreement on that. It is likely that, as those transactions come to maturity, that will, in effect, reduce SNIB’s capital, because it will have to return the money to the Scottish Government, which will have an impact on future investment. Given that it has been receiving financial transactions for a number of years, the cumulative effect of those payments down the line could be quite significant.

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 28 May 2025

Colin Beattie

Yes. It all hangs together.

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 28 May 2025

Colin Beattie

If I recall correctly, financial transactions have already been reduced somewhat over the past few years. I think that most of them now go to the bank, do they not?

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 28 May 2025

Colin Beattie

That was the subject of my next question.

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 28 May 2025

Colin Beattie

I can see that there are some questions for the bank.

I will move on. The bank has made pretty good progress on covering its operational costs from its own income, but the ability to continue to generate that income to cover its costs is pretty closely tied to the continuing supply of capital from the Scottish Government. How confident are you that that funding will be sustained? What would be the impact on the bank if the capital allocations were to fall short?

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 28 May 2025

Colin Beattie

Elements such as giving advice, presumably on how to invest capital, are highly-specialised, highly-paid areas in which people get mega bonuses and so on. How is that compatible with SNIB and, to be blunt, how can it afford that?

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 28 May 2025

Colin Beattie

It is an extremely competitive area that has some really big players. There are a lot of questions about where in the existing market SNIB might fit—or, indeed, whether there is a place that it can fit or find a niche to take on.