Chamber and committees

The Robert Gordon University report – Making the Switch, funded through the North-East Economic Recovery and Skills Fund (NEERSF), estimates between 70,000 and 80,000 people are directly and indirectly employed in the offshore energy sector in Scotland, with around 65% working or based in the North East.

This report highlights over 90% of the workforce has medium to high skills transferability between adjacent energy sectors, such as offshore wind, the use of hydrogen and carbon capture and storage. This indicates the North East is well placed to capitalise on the opportunities associated with the energy transition and could become either a UK or Global Energy Hub, with the expected result of the energy workforce remaining broadly stable or increasing by 2030.

The Scottish Government is supporting this transition from the oil and gas sector to renewables and low carbon through a number of programmes, including, but not limited to, the £75 million Energy Transition Fund and our £500 million Just Transition Fund for the North East and Moray.

The Climate Emergency Skills Action Plan is key to ensuring everyone can benefit from the opportunities a Just Transition can create, whether the requirement is to improve on existing skills or retrain to a new or emerging green job.

The application window for the first year of the Just Transition Fund closed on 15 July 2022, with a total of 102 proposals received.

The Fund was advertised through the Scottish Government’s website and social media platforms, as well as through local partners, including: Aberdeenshire Council, Moray Council; Aberdeen City Council; Aberdeen and Grampian Chamber of Commerce; Moray Chamber of Commerce; and the Just Transition Partnership. The Fund was also advertised through the ‘Find Business Support’ portal.

Applicants were notified about the outcome of their proposals on 6 September 2022, but the full list of projects won’t be published until after the mourning period following the passing of Her Majesty The Queen.

Scottish Government officials assess whether each bidding organisation to the Just Transition Fund is “headquartered, or demonstrate[s] a strong connection to at least one of Aberdeenshire, Aberdeen City or Moray". Only proposals that meet this criteria are considered for funding.

Aberdeenshire Council, Moray Council and Aberdeen City Council were all able to bid into the fund. They can count as the partner that is based or has operations in the region, however that is not mandatory and any private organisation can be considered as the local partner organisation.

A total of 35 homes have been completed through the Rural and Islands Housing Fund since November 2021. The following table provides a breakdown by local authority area.

We recognise that hospitality, alongside other sectors within the economy including construction and food and drink are hampered by difficulties in attracting, recruiting and retaining workers. This has been exacerbated by Brexit and the loss of people from the EU leaving Scotland, as well as the problems caused by the pandemic.

We funded the ‘do what you love’ advertising campaign last year, to encourage people to consider a career in our valued tourism and hospitality sector, which was developed in partnership with industry. We are looking at how we build on this, as well as continuing our work to improve conditions and promote fair work in the sector, to make it more attractive to potential employees. We continue to work closely with the sector, to address the challenges it faces.

However, the Scottish Government does not have all of the levers it requires to address these challenges, and we continue to call on the UK Government to commit to establishing a Joint Task Force on Labour Market Shortages with the Devolved Governments.

The decision to bring ScotRail under public control avoided the need to run an expensive and inappropriate rail franchising competition. Though widely acknowledged as a failed model, franchise competitions remain the preferred approach in current UK Legislation. Such exercises typically cost in excess of £10m for franchising authorities, as well as the similarly significant costs of each bidder.

As confirmed during my Net Zero, Energy and Transport Committee appearance on 15 March 2022, prior to that date, since the decision to proceed with the “Operator of Last Resort” (OLR) option was taken in March 2021, £3.6 million had been spent on the OLR activity.

Final reconciliation figures confirm that £5.5 million has been spent in total on OLR activity, and ScotRail Trains Ltd. was mobilised successfully on 1 April. I am confident you will notice the saving this achieved when compared with a franchising competition.

The legislation governing disabled access and vehicle construction is reserved to the UK Government. Since 1 January 2020 all coaches, single and double decker buses have had to be fully accessible.

However, the Scottish Government is committed to ensuring that transport is accessible for all. Scottish Ministers' have made clear their expectations that Scotland's transport providers and public services will continually improve their performance to help disabled people make better journeys. That is why the Scottish Government launched in 2016 Scotland's Accessible Travel Framework, which is shaped by disabled people to improve the overall journey experience and remove the barriers which prevent them travelling. The Framework sets out a 10 year plan in which 48 actions are to be delivered over the 10 year period. These include:

• Scottish Government provided £35,000 to Neatebox who have developed and trialled an app focusing on bus travel for disabled users with the primary focus on wheelchair users who require use of particular designated space when using the bus, and
• In March 2021, the Scottish Parliament passed legislation that extends the National Concessionary Travel Card to eligible disabled children under the age of five, allowing free bus travel to accompanying companion using the National Entitlement Card. This will give around 4,000 eligible disabled children across Scotland access to the same benefits as those aged five and over, helping to reduce household costs for their families.

Vehicle registration is generally a reserved matter operated by the DVLA. We have not been involved in discussions to date and would have to establish whether bicycles are classes as vehicles to understand what its impact on Scotland, if any, would be.

We are committed to supporting many more people to walk, wheel or cycle for everyday journeys and are allocating record funding for that purpose. Cycle licences or registration plates have played no part in our proposals and would run counter to our aims by making it harder for people to make the choice to choose cycling for everyday short journeys. There are many more effective steps that can be taken to ensure that roads are safer for all users – for examples, increasing accessible cycle infrastructure, improving street design and making sure that all road users are aware of good safe ways of using the roads.

There was no dedicated budget for the Islands Bond consultation as this work was undertaken as part of our overall policy development activity.

I am aware of reports about a bus operator deploying drivers to the Commonwealth Games, and my officials have raised this directly with the relevant operator, reminding them of the expectations in our Network Support Grant Plus funding about the service levels they will provide. The operator confirmed that a small number of drivers from Scotland were involved in delivering the services needed for the Commonwealth Games, and mitigations were put in place to ensure the impact on local services was minimised. I can confirm that no buses funded through the Scottish Ultra Low Emission Bus grant were deployed to support the Commonwealth Games. In addition Network Support Grant Plus funding is only provided for services actually run, and payment recovery will take place when the scheme ends for any service kilometres that did not operate.