Chamber and committees

I can announce today that Scottish Ministers have decided that a direct award should be made to CalMac Ferries Limited. The due diligence work has concluded there is no financial, operational or legal impediment to proceeding with a Teckal-compliant direct award of CHFS3.

This is a unique opportunity to change the emphasis from a commercially driven arrangement to a public-focused service wholly directed at meeting the important and particular needs of the communities it serves. Discussions will continue with staff, island residents, businesses and communities and trade unions on the arrangements so that the new contract reflects local needs and interests. Transport Scotland is now working closely with CalMac Ferries Ltd on the necessary arrangements for commencement of the new contract on 1 October 2025. I will ensure that Parliament is kept updated about progress on those new arrangements.

Taken together with our ongoing investment in new vessels and infrastructure, this will improve the overall resilience and capacity of these services, particularly for the future, as set out in the recently published Islands Connectivity Plan.

The Scottish Government engages with both Ineos and Petroineos as a matter of course. We remain open to discussion on all commercial options for the future of the Finnart Terminal and would urge the present owners to engage constructively with any parties with an interest in utilising it in the future.

The final decision on how protections for Priority Marine Features (PMFs) will be implemented will be made by Ministers after the proposed fisheries management measures have been consulted on and the responses analysed.

Whilst the legislation to be used is yet to be decided it cannot be done through the Marine (Scotland) Act 2010 and use of Marine Conservation Orders (MCOs). MCOs can only be used to implement management measures in specific designated sites. These are nature conservation Marine Protected Areas, demonstration and research Marine Protected Areas, historic Marine Protected Areas and, any European marine site which overlaps these (either wholly or partly), which requires management measures.

The proposed PMF management areas will be fisheries closures with measures being introduced via a Scottish Statutory Instrument (SSI), allowing for Parliamentary scrutiny.

It has always been the Scottish Government’s intention that extended producer responsibility for packaging funding should support investment to improve recycling rates and reduce carbon emissions, especially during the early years of the scheme. Therefore, there will be no reduction in the local government finance settlement as a result of extended producer responsibility for packaging payments in the first year of the scheme (2025-26). The funding purpose - to pay for the cost of managing household packaging waste - is clearly set out in legislation.

Project Willow did not specifically examine the Aker Solutions study focussed on Equinor Refining’s Mongstad facility. However, both hydrogen for fuel switching and the development of sustainable aviation fuel (HEFA and e-fuels) are proposed pathways in Project Willow. The potential usage of hydrogen as a means of decarbonising via fuel switching is already being progressed by Ineos O&P at Grangemouth and is being supported by investment from the Scottish Government of £5 million in the form of grant funding delivered by Scottish Enterprise.

The Scottish Funding Council (SFC) has a statutory duty set out in the Further and Higher Education (Scotland) Act 2005 to secure the coherent provision by the post-16 education bodies (as a whole) of a high quality of fundable further education and fundable higher education.

As this is an operational matter for Scottish Water, and the Scottish Government does not hold the information, I have asked them to respond. Their reply is as follows:

Scottish Water’s in-house capital project delivery team was asked to deliver a project to provide capacity for growth at Oldmeldrum Wastewater Treatment Works. The project involved cleaning of an existing aeration ditch, replacement of its mechanical rotors and installation of an innovative secondary treatment unit. The renewal of the aeration ditch was delivered successfully, but the innovative element of the project was found not to be suitable in combination with the existing treatment process at the site. The forecast cost of the project was £3.3 million and the final cost was £3.9 million.

We recognise that pulmonary rehabilitation is an important element in managing respiratory disease and it is already a key recommendation for all appropriate patients in NICE clinical guidelines, which we expect all NHS Boards to follow.

The Scottish Government has not provided any specific funding to NHS Boards for pulmonary rehabilitation. We provide NHS Boards with baseline funding, and it is for each individual NHS Board to determine how they utilise the resources provided by the Scottish Government to best meet the needs of their local populations.

As this is an operational matter for Scottish Water, and the Scottish Government does not hold the information, I have asked them to respond. Their reply is as follows:

Scottish Water framework contractors are permitted to sub-contract work if they require additional resources/capability to deliver the works or if specific expertise is required.

As this is an operational matter for Scottish Water, and the Scottish Government does not hold the information, I have asked them to respond. Their reply is as follows:

Scottish Water measures the performance of its partner organisations through a structured framework that ensures alignment with its standards for safety, health and wellbeing, cost management, efficiency, and service excellence. Executive Director led Strategic Boards, and Senior Manager led Operational Boards are in place to review performance, and set direction for future strategic improvements.