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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 5 May 2021
  6. Current session: 12 May 2021 to 5 May 2025
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Displaying 707 contributions

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Economy and Fair Work Committee

Budget Scrutiny 2024-25 (Tourism and Hospitality)

Meeting date: 24 January 2024

Gordon MacDonald

Colin Wilkinson, how much of the reduction in pub use is down to societal change? There is a lot more home consumption, and the cost of living rises mean that folk are going out less. There is pre-loading: youngsters might not be drinking as much, but, when they do, they tend to do so at home before they go to clubs and pubs at night. How much of the change that you are talking about relates to societal change?

Economy and Fair Work Committee

Budget Scrutiny 2024-25 (Tourism and Hospitality)

Meeting date: 24 January 2024

Gordon MacDonald

I have a point of clarification on the email that you read out, Marc. I was busy taking note of all the points that you raised. Apart from a tourism levy—which is a Scottish Government responsibility, if it is introduced and if councils decide to take it up—you mentioned energy prices, high interest rates, cost of living, economy and social security. Those are all within the remit of the United Kingdom Government, so who was the email pointing at? Was it at the UK Government, or just more generally?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 17 January 2024

Gordon MacDonald

What you were saying—

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 17 January 2024

Gordon MacDonald

My final point about crazy policy situations is that we were told by Iain Hardie from Petroineos, when he gave evidence on 13 December, that discussions were taking place with the UK Government on steps that could be taken to ensure that the refinery continues to operate. He also highlighted that, to operate beyond May 2025, the refinery requires investment of £40 million so that it can have an operating licence to continue to refine. Will you give us a flavour of those discussions? Given the figures that you just mentioned and the fact that, since oil was discovered here in the 1970s, the UK Exchequer has received £300 billion in revenues, surely £40 million is a drop in the ocean to secure energy supply in the UK?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 17 January 2024

Gordon MacDonald

What you were saying is that, by issuing more licences, there will be more oil. However, most of that oil is exported for refining; we then have to buy it back on the international market, and we are subject to currency fluctuations that make the price more expensive. Again, where do you see us with energy security in 2024, given the background of the ECC Committee report that said that dependence of more than 45 per cent for any individual fuel is a high risk to a country’s energy supply?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 17 January 2024

Gordon MacDonald

Minister, I will ask you about energy security, which falls 100 per cent within your remit. When oil was discovered in the 1970s, there were 18 refineries in the UK. There are now only six major refineries left. At the time of the closure of Teesside in 2009 and Coryton in 2012, the UK Parliament Energy and Climate Change Committee said that

“the loss of further UK refining capability may pose a risk to security of energy supply as a result of increasing dependence on imports”,

and the International Energy Agency issued guidance that stated that

“import dependence greater than … 45% … is high risk to a country’s energy security.”

In 2012, 56 per cent of jet kerosene, 48 per cent of diesel and 44 per cent of heating oil were imported. More refineries have closed since then; we are down to six. If Grangemouth were to close, that would take the UK down to five, and there would be no oil refineries north of Leeds. What is the energy security situation today, given the background that was flagged up by the ECC Committee back in 2012?

10:30  

Economy and Fair Work Committee

Just Transition (North-east and Moray)

Meeting date: 10 January 2024

Gordon MacDonald

My final point is about the barriers to the just transition that we are trying to achieve. Aberdeen and Grampian Chamber of Commerce, the Scottish National Investment Bank, Scottish Renewables and the SSE Group all highlighted grid connection issues as a barrier to developing offshore wind. What needs to change in that respect?

Economy and Fair Work Committee

Just Transition (North-east and Moray)

Meeting date: 10 January 2024

Gordon MacDonald

Thanks very much.

Economy and Fair Work Committee

Just Transition (North-east and Moray)

Meeting date: 10 January 2024

Gordon MacDonald

I want to look at some of the other barriers. One that you did not touch on is finance. The same RGU report said that we

“will require over £17 billion in new regional investments between 2022 and 2030 in manufacturing and operational capabilities for the renewables sector.”

Crown Estate Scotland noted a recent fDi Intelligence report that said that, although $54.8 billion has been pledged to wind power in Scotland, it requires the creation of a low-risk and attractive business environment. Can you say anything about the challenges facing the financial situation?

Economy and Fair Work Committee

Just Transition (North-east and Moray)

Meeting date: 10 January 2024

Gordon MacDonald

I want to continue the conversation about the job situation. You rightly touched on the RGU “Making the Switch” report, which highlights that

“90% of the North-East of Scotland’s existing oil and gas workforce has medium/high skills transferability to adjacent energy sectors.”

It also suggests that, if we get this right, we could have 54,000 jobs by 2030, and the Government’s figure is 77,000 jobs by 2050. Other than skills, what challenges are facing the north-east in becoming the global energy hub that can look after installed offshore wind, hydrogen generation and carbon capture and storage? What challenges are we facing in getting those 77,000 jobs?