Chamber and committees

Good morning, and welcome to the second meeting in 2022 of the Economy and Fair Work Committee. Colin Beattie has given his apologies; we are joined by John Mason, who is here as his substitute. Do you have any relevant interests that you wish to declare in relation to this meeting, John?

Yes, or what the Government could do to incentivise employers to make that investment. Sorry to interrupt.

Thank you, minister. Are you still in discussions with the UK Government? I know that we are at the latter stages of the bill making its way through Westminster, but can you see any possible amendments being made before the conclusion of the bill’s passage?

Okay. That is helpful. The committee had hoped to see that before Christmas, but I appreciate the reasons for the delay that you have outlined. We hope to see the strategy as soon as possible.

I want to move on to the tourism budget, which comes under the committee’s remit and is within your responsibilities. As you will know, the committee recommended that the Scottish Government should look to meet the ambition that is set out in the Scottish tourism emergency response group proposals for phase 2 of the tourism recovery programme. In the foreword to the tourism recovery programme document, which is entitled “Scottish Tourism: Two-year Recovery Recommendations”, the Minister for Business, Trade, Tourism and Enterprise, Ivan McKee, says:

“The Phase 2 recovery proposals have the potential to deliver greater, greener and fairer prosperity for Scotland”.

There is therefore an endorsement from the Government in that document, but there has been no progress on funding. No additional resource has been put in at all at this stage for the phase 2 delivery of the recovery fund.

You have given an explanation of the consequentials—that is where the £25 million originally came from—and you have recognised the importance of employability and some other areas in which you have put in resource. Why has that area not received any additional funding?

That was helpful, thank you.

The next item of business is a further evidence session on the Subsidy Control Bill, which is UK Parliament legislation. The bill’s provisions cover the whole UK and impact on areas that are devolved to the Scottish Parliament and on the executive competence of the Scottish ministers. The bill continues its passage through Westminster; I understand that it is due to have its second reading in the House of Lords today. The bill establishes a domestic subsidy control regime for the UK following its exit from the EU, and it provides a legal framework for public authorities to make subsidy decisions.

The committee is required to consider and report on the Scottish Government’s legislative consent memorandum. The Scottish Government does not recommend that the Scottish Parliament give its consent to the bill in its current form.

The committee took evidence on the bill last week, and we have a number of issues to follow up on and ask about this morning. I welcome Ivan McKee MSP, the Minister for Business, Trade, Tourism and Enterprise, who is joined by Hilary Pearce, the head of the European structural funds and subsidy control division; and Jen Willoughby, the head of the national and international regulatory alignment unit.

As always, I ask witnesses and members to keep their questions and answers as concise as possible. I invite the minister to make a short opening statement.

You have expressed a desire to amend the bill before it is concluded. If the bill is concluded in its current form, even if we do not approve a legislative consent motion, is the Scottish Government starting to plan how it will try to work with that piece of legislation?

Thank you, Ms Forbes.

You mentioned in your opening statement the 10-year economy strategy, which you are working to finalise. You have outlined the challenges for our economy, and we know that Scotland is lagging behind the United Kingdom overall in respect of economic growth. This morning, we have seen increased inflation figures and the pressures that they are putting on the economy. Why has the 10-year strategy been delayed? When can we expect to see it? What are the challenges in responding in quite a fluid situation? I appreciate how challenging it is to set out a long-term plan at this stage, when the ground is constantly shifting.

I thank the minister for his evidence this morning. Do you have anything to add that you feel has not been covered?

Thank you, and welcome to the meeting.

The first item of business is to decide whether to take agenda items 4, 5 and 6 in private. Are members content to do so?

As no member has indicated otherwise, the committee agrees to take agenda items 4, 5 and 6 in private.