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Public Audit Committee
Meeting date: 30 May 2024
Richard Leonard
Okay. I have a quick question for Mr Irwin. Back in January, when you were before this committee, you told us that
“the appointment of auditors in the UK is a priority”—[Official Report, Public Audit Committee, 18 January 2024; c 39.]
for the GFG Alliance. Have they been appointed yet?
Public Audit Committee
Meeting date: 30 May 2024
Richard Leonard
And the venue of that is?
Public Audit Committee
Meeting date: 30 May 2024
Richard Leonard
Okay. Finally from me, you have mentioned the expression “in distress” a couple of times. Could you define what you mean by “in distress”? How do you decide that a business is “in distress” and might require intervention?
Public Audit Committee
Meeting date: 30 May 2024
Richard Leonard
Thank you very much. At the start of this morning’s evidence session, I said that we were hoping for some illumination, and I think that we have had quite a lot of illumination actually. It has been a useful evidence session. We might still have some unanswered questions that we want to put to you, and we might follow those up with you.
I thank you, director general, for your time and for the range of questions that you have been able to field. Mr Rhatigan and Mr Cook in particular, I thank you both for answering some more far-fetched and difficult questions than you were perhaps anticipating before you came in—[Interruption.] I am speaking about my own questions. [Laughter.]
Thank you very much indeed for your co-operation this morning. With that, I move the meeting into private session.
10:46 Meeting continued in private until 11:20.
Public Audit Committee
Meeting date: 30 May 2024
Richard Leonard
Our principal item of business this morning is to consider the Scottish Government’s approach to financial interventions, and in particular to inquire into the operations of the Government’s strategic commercial assets division. I am pleased that the following witnesses are joining us this morning to help to illuminate that question and to answer others that we might have.
I am very pleased to welcome Gregor Irwin, the director general of economy at the Scottish Government. Alongside Mr Irwin is Colin Cook, who is the Scottish Government’s director of economic development, and Dermot Rhatigan, who is the deputy director of the strategic commercial assets division.
As I have said, director general, we have some questions to put to you. Before we get to those, however, I invite you to make an opening statement.
Public Audit Committee
Meeting date: 30 May 2024
Richard Leonard
I will leave that there, because of time, and invite Colin Beattie to put some questions to you.
Public Audit Committee
Meeting date: 30 May 2024
Richard Leonard
Okay, thank you. I am going to bring in our deputy convener, but before I do so I have a couple of quick questions, which I hope will have quick answers.
Mr Rhatigan, did you say that the guarantee that the Scottish Government struck with GFG Alliance was also offered, via Rio Tinto, to the other four prospective bidders?
Public Audit Committee
Meeting date: 30 May 2024
Richard Leonard
Mr Cook, you attend the FMPG board meetings, do you not? Do you know the answer to those questions?
Public Audit Committee
Meeting date: 30 May 2024
Richard Leonard
Later in our session we might get further into that perceived tension between the commercial interests of FMPG’s board and its responsibility to be accountable through the Scottish public finance manual—not least because, at the last count, £0.25 billion of public money had been put into the company.
I will move on and ask you something else. When we asked the Auditor General to review what the strategic commercial assets division was, he said that it exists to increase capacity to respond to cases that arise that are seeking support. When I questioned you back in January, Mr Irwin, you said that it was about the commercial expertise that is required to manage strategic assets effectively. The instance that I raised with you at that time was the Grangemouth refinery. I asked whether you considered that to be a strategic commercial asset. That was the point at which you said that the job of the assets division is to manage existing assets. Will you explain a little more about how proactive or reactive the division is, what it does to horizon scan, and so on?
Public Audit Committee
Meeting date: 30 May 2024
Richard Leonard
What about his predecessor? Parliament was told that the Government had nothing to do with the termination of Mr Tydeman’s contract. That looks a bit odd, does it not, given that the Government is the sole shareholder in the business?