Chamber and committees

I certainly hope that we always consider ways in which to encourage people who are currently inactive and have the potential to re-enter the labour market to do so. Although I cannot speak to any specific strands of work with regard to targeting particular groups, we all hope that that would be an outcome of the approach and that some of the jobs that are created through the initiatives will create opportunities for people to re-enter the labour market and bring their skills to bear on an exciting set of industries.

The decisions that were taken on investment zones were a product of engagement between the Scottish Government and the UK Government. With regard to the decision-making process and criteria, while I seek to provide as much information as possible to the committee, I sincerely apologise: as I am not the lead minister in that area and it does not relate specifically to green freeports, I am not in a position to respond fully. However, I recognise the member’s interests as a committee member and as a regional representative, and I would be happy to respond in writing.

As you will appreciate, procurement is distinct. It is a devolved competency, but we have to operate within broader frameworks at UK and World Trade Organization level. It is distinct from employment law. I recognise that we have made significant progress on procurement over the past 17 years since the McClelland review. We published an independent report at the start of the year highlighting the benefits from the journey that we have been on with sustainable procurement. I recognise that there is much more that we can do in that space, and the issue was raised in the recently closed consultation on community wealth-building legislation. The analysis of that will be published later in the autumn. I highlight that in relation to the topical matter of procurement.

Where we can take action, we will, and when we are challenged to go further within devolved competencies, we will seek to do so.

There is a distinction between procurement, grants and property taxes—that is the important point. There is a distinction between what they are and how they are administered and what is possible. There are also issues with the measures in the programme that is being developed in relation to parity with what is available elsewhere in the UK.

On having responsibility for devolved taxes and non-domestic rates, I am keen to reflect on how we can use those levers and work in partnership with trade unions and businesses to incentivise fair work, but we have to make sure that, in considering that, we do not conflate it with distinct areas of policy such as procurement or giving grants.

We operate in a UK context, and we seek to engage constructively with the UK Government. The freeport model was brought forward by the UK Government, if I recall correctly, following the general election in 2019. We have sought to listen to the voices of business and other partners, including trade unions, and to engage constructively in development of the proposals.

We are now in a position in which we have managed to come to a joint approach with shared decision making. That reflects the fact that we have sought to engage constructively. If we continue to work in a constructive manner with the UK Government and the green freeport operators, we can seek to harness the opportunity to deliver positive economic outcomes for the green freeport sites and the wider Scottish economy, including by strengthening key strategic industries.

In touching on that point you are colliding with the reality of schedule 5 to the Scotland Act 1998 and the reservation of employment law. For example, we do not have the power to legally require trade union recognition in such contexts. We are trying to work constructively and in partnership with business and other partners to promote fair work. Although the Scottish Parliament does not have the power to legislate in those terms, we have a role, through leadership and the convening power of the Scottish Government, to seek to encourage businesses to adopt such practices. Throughout the process we have been clear about our expectations.

It is incredibly important. A range of material has been published on the UK Government website, setting out various aspects of the criteria. Laura Duffy, do you want to go through what has already been made available and what is forthcoming?

I will make some broader points in a moment. Laura Duffy can speak about our specific engagement with the UK Government on the design of the prospectus and bids and on money laundering and security issues.

I will ask for an update to be provided to the committee as the OBCs progress and green freeports come online in order to provide additional confidence that robust processes are in place.

I know that you will recognise from your work in this Parliament and at Westminster that much of what you touch on sits in the reserved domain. That should not be a barrier to us seeking to do all that we can, but we have to recognise where the limitations lie. Seeking to apply property taxes and transaction taxes, for example, in a way that they are not inherently designed to apply can lead to unintended consequences and can work against the broader objective of ensuring parity with sites elsewhere in the UK, so that we remain competitive in the process.

On your specific request for an update, I will ask for that to be provided to the committee on the points that you and Mr Greer have raised.

I referred to local government’s statutory responsibilities under the planning system. When development will have an impact on infrastructure, the planning system has mechanisms to ensure that contributions are made, such as section 75 agreements. As the process develops and unfolds, and as we see the additional development that we want, there will be broader consideration when developments go through the planning process for approval, and the impact on infrastructure will be considered. It will be for local authorities, working in partnership, to determine as part of that process the appropriate mitigations and adaptations that are required and the additional infrastructure that needs to be in place.