Chamber and committees

Yes, although in the hydrogen space I go back to the fact that the hydrogen innovation fund and the Scottish industrial energy transformation fund will also continue, so there are still routes for us to invest in hydrogen projects.

Mr Macpherson’s assessment is correct.

I would be happy to provide the full figure once the meeting has been had at the end of this week.

Obviously, the figure of £42.5 million that we are giving for the year takes account of the fact that 801 is at an advanced stage, so it is a reduction from what we invested last year. The updated cost-to-complete figure is £130 million for hull 801 and £110 million for hull 802.

That is a separate discussion that is under way. There was an application for capital investment to update the yard and enable it to be more competitive. We want to see greater productivity at the yard to allow it to compete on its own merits for further work. Various strands of work are on-going to try to secure further work for it, and specific conversations are happening to update the business plan and the financial model around potential further capital investments, in order to ensure that they comply with subsidy control. Those discussions are on-going, and we are working directly with the yard on ensuring that it can be compliant.

No. That will be a discussion to be had based on the finalised plan that comes forward from the yard. Once we have that plan, we will consider whether we can finance it and where that finance would come from.

That is what I am saying—that will be a separate consideration. It is going to be a separate—

It is not set out in this budget, no. It is going to be a separate consideration that is based on whether we can finance it, on whether the subsidy control rules will allow us to and on what comes through, and then we will seek finance to allow that to happen.

I do not think that that is a correct assessment, no. The crucial factor in the small vessels programme is, again, that making a direct award is allowed only in very limited circumstances, and we also want to improve the productivity of the yard to allow it to compete for future work, such as a small vessels programme.

Those are on-going considerations. However, the critical factor therein is whether we can legally come forward to make a direct award, which is not something that I have a direct responsibility for, as you will appreciate.

No, no. I think that you are conflating two issues there, with respect—

One issue is getting the yard fit to compete for future work and another is whether we can make a direct award. Those are separate considerations—