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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 December 2025
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Displaying 864 contributions

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Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Gordon MacDonald

You talked about the substantial losses that were made in 2020 and 2021 due to the lockdowns. However, Rystad Energy highlighted that Russia’s invasion of Ukraine

“catapulted refining from famine to feast in term of margins.”

Was it a mistake for Petroineos to cut the site’s refining capacity by 30 per cent?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Gordon MacDonald

You mentioned that current demand is for 150,000 barrels per day. When you close the refinery in five years’ time or whenever it happens to be, what will happen to that demand?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Gordon MacDonald

Good morning. I want to continue the discussion on the background to the decision to move towards closure, whether it be in May 2025 or later. You talked about macroeconomic challenges. Are there economic challenges that are impacting only the Grangemouth refinery, or are the same issues impacting the other five refineries in the UK and, indeed, those across Europe?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Gordon MacDonald

When you cut from 210,000 barrels to 150,000, you must have thought that that 150,000 barrel demand was sustainable, at least in the short term.

You operate another plant at Lavera in France. You have talked about the demand in Europe, and you have said that you are exporting at a loss. Will those European customers now be served from the French refinery that you own, which is another old BP refinery?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Gordon MacDonald

My final question is in two parts. First, I was not able to find your financial accounts for the year to December 2022. They are not available from Companies House. What was your financial position at the end of December 2022?

Secondly, has a final decision been taken to close the refinery? What would it take to keep it open for a longer period of time? You talked earlier about the capex of £40 million. Are there any other factors that we need to take into account to keep it open?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Gordon MacDonald

Okay. Thanks very much.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Gordon MacDonald

I will ask the same question as I asked the previous panel. My concern is that, if you look at the net asset value of the holding company, it has a net liability of £14 million. However, Prestwick Airport Ltd cross-subsidises the airport operation, which is loss making. Prestwick Airport Ltd has a value of £30 million. How will you attract a buyer when there is no value in the airport and it operates at a loss?

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Gordon MacDonald

I accept what you say about it being a package and the property arm of the holding company supporting the airport operations. You talked about your master plan for the more than 800 acres that you guys have. Will you say a wee bit more about that and its importance to Prestwick’s viability?

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Gordon MacDonald

There is a master plan to reinvent Prestwick over 30 years. In previous decades, the airport was owned by the Canadian entrepreneur Matthew Hudson, then the Stagecoach Group, and then Infratil. Obviously, the Scottish Government took it over in 2013. Is it in the best interests of getting access to finance or the airport’s operation for it to remain in public ownership, or should it be moved over to the commercial side?

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Gordon MacDonald

I accept 100 per cent that Prestwick is a fantastic asset and that it is strategically important. In my eyes, the danger of moving it back into private ownership is asset stripping, because all of the value of the company is in a 900-acre site with 70 leases. There is no value in the airport operation itself. In my mind, if it is returned to private ownership, the focus will be not on the airport but on the asset of 900 acres in Ayrshire. CalMac, which is owned by the Scottish Government, is operating ferries; ScotRail is owned by the Scottish Government; and Lothian Buses in Edinburgh is owned by the councils, which are funded by the Scottish Government. I am trying to understand why the thinking is that we should move the airport into private ownership when there is that danger of asset stripping. It is a strategic asset that is to the good of the country in the long term.