Chamber and committees

I have no relevant interests to declare.

In 2021, Net Zero Teesside was awarded track 1 status. It was named the UK’s leading carbon capture scheme and awarded a slice of the UK Government’s £1 billion of funding, despite the fact that the Department for Business and Trade had highlighted on its website that

“Scotland is helping lead the way on this work, benefiting from cutting-edge R&D activities, a talented workforce and a significant geographical advantage.”

It also went on to say:

“The North Sea also has enough CO₂ storage capacity to support the UK’s demands for hundreds of years.”

Yesterday, Shell pulled out of the Teesside scheme, after National Grid pulled out on Sunday, and has said that it will now focus on the Acorn scheme in Scotland, where it will act as technical developer. Given that news, what further pressure can the Scottish Government put on the UK Government to reconsider funding for the Acorn project? When do you expect to hear any announcement about such funding?

I have a final question. Earlier, it was mentioned that if we get this right, there is a possibility of creating 77,000 jobs. If the Acorn project and the Scottish Cluster do not get UK Government funding, how many of those jobs will be at risk?

Good morning, cabinet secretary. I want to ask you about the Acorn project and the Scottish Cluster. The Scottish Government has previously highlighted that the Acorn project is a vital part of its strategy to reduce industrial emissions in Scotland. Will you update the committee on the importance of the project in supporting the transition to net zero? What discussions are taking place with the UK Government on moving the project forward?

I, too, thank Foysol Choudhury for lodging this motion for debate. There is no doubt that, in the 12 years that I have been an MSP representing the Edinburgh Pentlands constituency, housing—and, in particular, damp housing—has been the number 1 issue for my constituents.

Given the numerous cases that my staff and I have raised with the City of Edinburgh Council and Link PSL with regard to the condition of some properties in my constituency, including the Wester Hailes area, I welcomed the announcement in March 2021 that the council was piloting its new mixed tenure improvement service to upgrade all 1970s-built flats in Wester Hailes. That £30 million improvement scheme, which applies to almost 1,300 homes across 167 blocks of flats, is now well under way in the Murrayburn, Hailesland and Dumbryden areas. Work on each block includes repair or replacement of roofing, guttering, drying room facades, installation of external wall and attic insulation, as well as maintenance and decoration of the communal stairwells and closes.

Although most residents were pleased that the upgrade was happening, there was a large financial penalty for the 29 per cent of homes that were privately owned. Owner-occupiers were initially asked to contribute over £30,000, which many found was simply unaffordable and the only option available to them was to sell their home back to the council.

I was approached by several owners at the time and, by working with council officials, we managed to identify that substantial untapped funding for owners was available through the Scottish Government’s home energy efficiency programme grant scheme. We also highlighted to the council that, in comparison to other city councils, the loan period was too short and the interest rates were too high. The outcome was that the loan period was extended from 10 to 15 years and the interest rate was cut from 6 per cent to 4 per cent. The result was that my constituents saw their bills for the improvement work drop by at least 50 per cent.

Phases 1 to 4 have been completed, covering 484 flats and 18 houses, and those streets now look vibrant and modern with residents benefiting from warmer and more energy-efficient homes. The common areas between the blocks have yet to be upgraded but my understanding is that council plans are under way to further enhance the area with new play areas, upgraded landscaping and improved car parking.

Given the energy crisis of the past couple of years, it is important to measure how the energy efficiency measures are performing. Many residents have agreed to have Tinytag loggers installed in their homes to enable moisture and temperature levels to be measured and to track the energy efficiency of their homes.

The early indications of the energy efficiency of the refurbished homes are encouraging, with residents highlighting that their homes heat up quicker and stay warmer for longer, and that they do not need to have the heating on for as long or as often as they did prior to the works. There are also financial savings: one tenant said that she did not switch on her heating at all last winter and believes that she has saved about 80 per cent on her heating bills. The homes in the completed phases are now reaching an average EPC rating of B, which is equal to new-build standard and is higher than the current Scottish average EPC rating of D.

It is a hugely successful improvement programme that I believe should be not only replicated across my constituency but rolled out across all social housing in Scotland. I welcome the minister to his post. If he has not yet seen the improvements that are under way in Wester Hailes, I invite him to visit my constituency to see what can be achieved to tackle the issue of cold and damp homes.

To ask the Scottish Government, in the light of the recent analysis by the International Monetary Fund, which predicts that the United Kingdom economy’s performance in 2023 will be the worst among the G20 economies, what assessment it has made of the potential impact of this in Scotland. (S6O-02127)

The IMF’s analysis serves to underline the on-going detrimental impact that Westminster control continues to have on Scotland’s economy, and the people of Scotland are paying the price. Experts are now predicting that the UK’s withdrawal from the European Union is costing millions of workers £1,300 a year in lost income. Does the cabinet secretary share my concern that the Tories and Labour at Westminster seem determined to press ahead with imposing their disastrous Brexit on Scotland, no matter the economic consequences? Does he agree that the best way to ensure that our economy and communities can flourish is by rejoining the EU as an independent country?

I want to ask a couple of questions. In the commission’s report, which was published in July 2022, you noted the importance of an updated industrial strategy. The United Kingdom Government is largely responsible for industrial strategy, and on 1 March it withdrew its strategy, and the replacement plans are not expected before this autumn. What are your views on the impact that the delay in having an updated strategy will have on Scotland’s plans for a just transition?

Professor Skea said that we should move ahead on our own, but unfortunately, funding is a big issue. The Acorn project, which is the Scottish cluster for carbon capture, utilisation and storage, has not had full funding committed to it by the UK Government, although having missed the 2021 funding round, it is now labelled as a leading contender. Forth Ports has described the project as essential in making a considerable contribution to emissions reductions. What is the commission’s view on the importance of the Acorn project, and how do we move it ahead without that funding?

I am just finishing. Sorry.

I hope that it will not be long before the other 900 empty MOD homes across Scotland will become available to the 600 homeless veterans and others who require a home. That will go some way to removing one of the barriers that are faced by Army personnel in their transition to civilian life and employment in Scotland.