Chamber and committees

I will concentrate on the report on the inquiry into a just transition for the Grangemouth area that the committee published in June last year.

Much has happened since our inquiry and the publication of the report, with Petroineos announcing the accelerated closure of the refinery at Grangemouth. Although we knew that that was going to happen in the long term, it is a blow first and foremost to the employees; undoubtedly, local communities and the local and national economy will feel the impact of the closure, too.

Grangemouth is an integrated refinery and petrochemical centre of excellence. In total, it directly employs almost 2,000 people and up to 7,000 contractors at peak times throughout the year. The site produces 65 per cent of Scotland’s refined oil products, including diesel, petrol, kerosene and jet fuel. The latest figures indicate that exports of petroleum and chemical products from the site account for 6 per cent of all Scottish exports to countries outside the UK.

We visited the Ineos site in March 2023, which allowed members of the committee to see the scale of the site and its impact on the surrounding communities. It also enabled us to observe the progress that is being made towards its net zero goals.

However, it should be noted that Petroineos declined the opportunity to provide evidence to the committee, which was disappointing, as that would have provided the company with a platform to put on record its contribution to Scotland’s net zero target. The strategy on its website states:

“‘Net zero’ by 2045 at Grangemouth is a science-based commitment that means investment in reduction measures, changes in production processes, and efficiency upgrades.”

It continues:

“INEOS will be climate-neutral ... by 2045”.

At the time of our visit, 18 months ago, there was no indication of the refinery closing. What changed? Yes, there were problems with one of the hydrocrackers at Grangemouth, but it must have come as a body blow to the sector when Labour announced that it was ditching its plans to spend £28 billion to grow the green economy, especially as Keir Starmer had said only days before that it was desperately needed, and had insisted that his Government’s commitment to the spending plan was unwavering and that it would deliver more than 50,000 jobs in Scotland. All that is gone, now.

Yes, I will.

Between 1999 and 2007, the Labour Party sold 132,000 social housing units. Would the member agree that not selling them would have helped the issue of people looking for a home that she just highlighted? In the past 25 years in Wales, house building has dropped by 45 per cent, which is why 139,000 people in Wales are looking for a social house.

Will the member give way?

Who is to blame for that? Is it UK Labour or Welsh Labour?

Will the member take an intervention?

To ask the Scottish Government whether it will provide an update on its efforts to develop a world-leading green hydrogen sector. (S6O-03772)

Given that a successful transition to a green hydrogen economy would be transformative in the race to net zero, does the minister agree that, in order to meet the costs of that transition, the Labour Government must reverse its abandonment of the £28 billion green investment pledge and step up to meet its ambitions for the sector?

Asbestos is well recognised as one of the most dangerous substances still to be found in buildings up and down the country, including in the Princess Alexandra eye pavilion. Does the cabinet secretary agree that closure is the best course of action to ensure patient safety while plumbing system remediation work is carried out urgently to remove the risk of asbestos in the hospital?

I thank members on all sides of the chamber who supported my motion in order that it could be debated tonight. I refer members to my entry in the register of members’ interests, as I am the convener of the cross-party group on independent convenience stores, of which the Scottish Wholesale Association has been a member since the CPG was formed. I also thank, from the Scottish Wholesale Association, Colin Smith, who is in the public gallery tonight, and Jayne Swanson for their knowledge and guidance on the vital role that the wholesale sector plays across Scotland.

The Scottish Wholesale Association is a not-for-profit membership organisation based in Edinburgh. It was established in 1920 and is the official trade body that represents food and drink wholesalers and distributors. Wholesale members of the association are located the length and breadth of Scotland, and they include single-depot, family-owned businesses as well as national wholesale groups. Members supply products to Scotland’s 5,000 independent convenience stores and its 30,000 catering, hospitality, tourism and leisure businesses, as well as to all other public sector establishments.

The Scottish wholesale sector is a vital part of the Scottish economy: it is worth about £3.3 billion in the wholesale marketplace and directly employs more than 6,000 people. Wholesalers across all parts of Scotland support more than 49,000 local jobs in the independent convenience store sector. Those local jobs help local people into work, from a first job for a young person to a job for an older person who is returning to work.

The economy benefits from people shopping local and buying local produce, because producers and retailers not only provide jobs in their businesses but support employment across the town or city in which they are located, through the use of local tradesmen, produce suppliers, shop fitters and garages, as well as local legal and accountancy firms.

The link between wholesalers and local convenience stores is not always clear, but members will recognise the trading names, which include Mace, Spar, Londis, Costcutter, Premier Store and Nisa, to name but a few. Those symbol groups and cash-and-carry operations support family-owned stores to compete with the large multinational supermarkets in many of our towns, villages and neighbourhood centres.

However, wholesalers face not only competition from supermarkets but other challenges such as the restructuring of the grocery market, with the market being impacted by Amazon moving into selling groceries, wholesaler bypass, changing customer demands, Brexit and regulation. That is all happening at the same time as the wholesale sector is facing low margins, recruitment issues and rising food costs. The result is a lack of private investment, due to low investor confidence in the sector, at a time when there should be investment in operational efficiency and supply chain management.

I recently visited Mark Murphy Ltd, which is part of Dole foodservice, at its warehouse in Bankhead Way in my constituency. It is Scotland’s largest fresh produce supplier to the hospitality sector and is among my constituency’s biggest employers, with approximately 270 members of staff.

I met general manager Brian Breslin, who outlined to me not only the positive contribution that the company makes to fresh produce supply across Scotland, as the United Kingdom’s foodservice supplier of the year for 2023, but the challenges that the business faces, predominantly in the recruitment and retention of staff. Despite offering rates above the minimum wage, as well as fixed shifts and permanent contracts, it continues to struggle to fill positions, given the employment situation in Edinburgh.

That was reflected in the results of the Scottish Wholesale Association’s recent wholesale market survey, which indicated that recruitment and skill shortages remain a problem. However, the industry is trying to address that by taking steps to improve working conditions, including by introducing the real living wage and a four-day week. The sector has received and continues to receive, both during and after the pandemic, financial support from the Scottish Government totalling approximately £20 million, as the Scottish Government recognises the vital role that the sector plays for our food and drink suppliers and for us as consumers.

In 2021, the Scottish Wholesale Association launched its delivering growth through wholesale training initiative, with the aim of educating and engaging with producers to highlight the opportunities that the wholesale sector provides. The training programmes were designed by the SWA in conjunction with the Scottish Agricultural Organisation Society and Scotland Food & Drink. Supported by the Scottish Government, the initiative equips local Scottish producers with the insight and strategies that are needed to successfully navigate the Scottish wholesale landscape. The result to date is that almost 150 Scottish producers have gone through the course, with 230 new Scottish product listings via 59 wholesale partnerships.

Furthermore, the Scottish Wholesale Association has launched two additional initiatives, with support from the Scottish Government as part of its wider “Local Food for Everyone: Our Journey” strategy. The first initiative is a wholesale local food champion training programme, which was introduced in 2023. The local food champion programme is an extension of the SWA’s delivering growth through wholesale producer initiative. The programme provides training to those who work in wholesale businesses to equip them with the knowledge that they need to take responsibility for shaping their company’s local sourcing strategy. By becoming a champion, of which there will be 40 by November this year, they are taking an active role in creating a strong and sustainable local food and drink supply chain.

The second initiative is the Scottish wholesale local food and drink growth fund, which is worth £195,000, thanks again to Scottish Government funding. That is the third phase of the delivering growth through wholesale local sourcing programme that I mentioned earlier. Again, through working with partners, the initiative has been set up to support wholesalers who work closely with local Scottish producers, manufacturers, local authorities and other stakeholders to increase the volume and customer base of Scottish produce that is sold through the wholesale channel.

In closing, I highlight some of the findings of the Scottish Wholesale Association’s recent market survey. There has been positive growth in the sector in 2023 in comparison with 2022, with an average of a 5 per cent increase in turnover. Wholesale service is up by 9 per cent in comparison with 6 per cent in the rest of the UK, and there has been a very positive 30 per cent increase in turnover from Scottish products, thanks to initiatives that are funded by the Scottish Government and delivered by the Scottish Wholesale Association.

I put on record my thanks to the Scottish Wholesale Association for its collaborative approach in working with the Government and industry to ensure that the sector is nurtured and supported for all stakeholders.