Chamber and committees

I refer the member to the answer to question S5W-04327 on 15 November 2016. All answers to written parliamentary questions are available on the Parliament's website, the search facility for which can be found at: http://www.parliament.scot/parliamentarybusiness/28877.aspx

Since the EU referendum result, Ministers have undertaken a number of engagements with EU partners. These engagements are to ensure there is awareness of the vote in Scotland for Remain in the referendum, and to explain that the First Minister has said the government is exploring all options to protect Scotland’s interests and our relationship with, and place in, the European Union.

The best way to protect all our interests, including those most important to rural areas, is by protecting Scotland’s place in Europe, maintaining membership of the single market and access to the free movement of labour.

The Scottish Government is currently exploring a range of options to protect Scotland's relationship and place in the EU with all its economic and social benefits and specific proposals will be published shortly.

Analysis published by the Scottish Government (“Potential Implications of the UK Leaving the EU on Scotland’s Long Run Economic Performance”) on 23 August 2016 summarises the impact that leaving the EU could have on the Scottish economy based on a range of recent studies covering different trading relationships that the UK could adopt.

The analysis shows that the potential cost to Scottish GDP of leaving the European Union could be up to £11.2 billion per year by 2030 than under a scenario where the UK remains a member. The analysis also indicates that leaving the EU could result in a reduction in Scottish tax revenues of up to £3.7 billion a year by 2030.

Evidence published by the European and External Relations Committee based on analysis by the Fraser of Allander Institute confirms the risks Brexit poses to Scotland’s economy. The Fraser of Allander Institute forecast that leaving the EU could result in the number of people in employment being up to 80,000 lower after ten years.

The Scottish Government is pursuing all options to retain our relationship with Europe, access to the single market, and all the advantages that brings.

The Scottish Government has not entered into any charter agreements for additional freight vessels on the Northern Isles route since 1999. The current passenger vessels on the Northern Isles ferry routes have been on lease to the Scottish Government from the Royal Bank of Scotland since their introduction into the service in 2002.

The following table details the public grants to Serco NorthLink Ferries paid by the Scottish Government for the Northern Isles Ferry Service since 5 July 2012 in each contract year.

The element within the grant attributable to vessel charter is part of contractual agreements with third parties; the Royal Bank of Scotland and Seatruck. The financial arrangements within these agreements are commercially confidential matters for those companies.

The vessel charter payments by Serco NorthLink Ferries to Seatruck in respect of MV Helliar and MV Hildasay is a commercially confidential matter for those companies.

The Scottish Government’s starting point is to protect our relationship with, and place in, the European Union. We are considering all possible options and we will work with others across the political divide to try to save the UK as a whole from the fate of a hard Brexit.

In light of the EU Referendum result and the potential impact this will have on free movement, we are strengthening our calls on the UK Government to deliver an immigration system that meets Scotland’s needs.

The Scottish Government will publish proposals over the coming weeks that would allow Scotland to stay in the single market and to preserve aspects of our relationship with the EU, even if the rest of the UK is intending to leave.

A comprehensive study of the Northern Isles Ferry Services is currently being conducted. This study will inform the specification for the next contract and includes consideration of passenger and freight vessel requirements.

On 4 November Transport Scotland asked Caledonian Maritime Assets Ltd to conduct a search on the worldwide maritime market to assess the scale of suitable and available freight vessels. The outcome of this search will inform freight vessel options and the specification for the procurement of the next Northern Isles Ferry Services contract.

The Scottish Government does not hold this information. Serco Northlink Ferries charter the MV Helliar and the MV Hildasay from Seatruck and the costs of their charters are commercially confidential.