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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 16 September 2025
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Displaying 2629 contributions

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Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 10 September 2025

Colin Beattie

If the bank was operating on a purely commercial basis, it would have to reflect risk through the interest rates and so on that were being charged. That would defeat some of the objectives around investing in companies and encouraging them to develop, as the rates and the fees that would be attached would be punitive. Presumably, there must be an element of flexibility when it comes to SNIB setting rates at a level that might be below a commercial rate so that a company can afford to take on the loan.

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 10 September 2025

Colin Beattie

It sounds to me as though there are a few conflicts that have not been worked out, but I will move on.

Funding arrangements are important for the bank. Historically, it had to use its income in the same financial year. Of course, single-year capital allocations from the Scottish Government are quite difficult to align with properly commercial activity. The Scottish Government’s response to that was to give the bank £25 million of underspend or overspend for the next year. When the bank gave evidence to the committee, it said that it welcomed that, but that it did not go as far as it thought was needed. Why was that?

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 10 September 2025

Colin Beattie

The £25 million has been agreed. What bits were not agreed?

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 10 September 2025

Colin Beattie

I am sure that the Government would want that as well. Was that the only issue that was under discussion, or were there other issues for which you were unable to agree to what the bank was asking for?

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 10 September 2025

Colin Beattie

I accept that in relation to the multiyear settlement and all the rest of it—with the way that things are, there has to be alignment with what the UK Government is doing. Other than that particular multiyear settlement, what needs did the bank have that were not met?

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 10 September 2025

Colin Beattie

Okay. I will leave that point.

Historically, SNIB has mainly been funded through financial transactions, and those are running out. I am interested to get a grip on how the repayments work. From the Scottish Government’s point of view, it is only required to refund about 80 per cent of the financial transactions, if I recall correctly—I am talking from memory. My understanding is that, when a repayment that is related to financial transactions is made to SNIB, it must immediately make that payment to the Scottish Government. How are you managing that and how, if at all, does it impact on the £25 million?

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 10 September 2025

Colin Beattie

Just to tie up this question of the £25 million mechanism, I assume that you will be reviewing it from time to time to ensure that it is the solution that you think that it is.

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 10 September 2025

Colin Beattie

We have been talking about the bank becoming a perpetual fund, which would obviously have lots of advantages all round. Clearly, you are in discussions with the Treasury over this, presumably on a regular basis.

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 10 September 2025

Colin Beattie

First, I want to pick up on one of your responses to the convener’s questions. You talked about SNIB having the responsibility—or task—of bringing in private capital to be used alongside public capital. By the bank’s very nature, that capital will go into higher-risk investments, and it must be a bit of a task to bring in private investors when your focus is at least partly on encouraging and bringing through high-risk companies. That will be reflected either in pricing to match the risk or an inability to get private investors to come in. How do you see that being managed?

Public Audit Committee [Draft]

“Scottish National Investment Bank”

Meeting date: 10 September 2025

Colin Beattie

But you are not giving any guarantees.