Chamber and committees

Our second and main item of business is the second evidence session of our inquiry into Scotland’s supply chain. This is the committee’s first inquiry, and we are looking at the short-term and medium-term structural challenges that are facing the supply chain and how those challenges and the shifts in supply chains are impacting the economy. We want to consider how to build resilience and whether there are opportunities to develop domestic supply chains. Our inquiry is structured around three themes: people, places and product. Today will be our second session on people, and we will be looking at skills provision.

I thank the witnesses for joining us. I welcome Chris Brodie, who is the director of regional skills planning and sector development at Skills Development Scotland; Marie Hendry, who is the depute director of external engagement and partnerships at the Open University; Paul Little, who is the vice-chair of the college principals group at Colleges Scotland; and Richard McClelland, who is the director of Qualifications for Industry.

I will ask an introductory question, which all witnesses will get an opportunity to answer. The inquiry has been prompted by the committee’s concerns about supply chains. We are seeing, in supply chains, blockages and difficulties that are impacting on consumers, on the economy, and on businesses as they struggle to get either the people or the components that they need through existing supply chains.

I am interested in hearing about how your organisations can respond quickly to those pressures. In the submissions that we have received from you, which are very welcome, much of the focus is on the longer-term challenges that Scotland faces. There is a broader debate to be had about that, but the committee is interested in how we address the shortages, pressures and delays in the economy that are the result of the current supply chain issues.

I put that question first to Chris Brodie. We have previously heard from Skills Development Scotland, and we know that you have a focus on the medium-term and long-term challenges in the economy. However, what are you able to do to respond to the immediate challenges that we face?

Richard, you work in a sector that has traditionally been perceived as predominantly male. Do you see an increasing need to attract women into the workforce? What can be done to support that?

That is great; thank you. I thank all the witnesses for taking time to speak to us and to contribute to the inquiry.

Agenda item 3 is consideration of a Scottish Government consent notification relating to a UK statutory instrument. Members will find information about that in papers 3 and 4. The committee is invited to consider the consent notification for the European Free Trade Association and trade and co-operation agreement international agreement procurement SI. Are members content with the notification?

Members indicated agreement.

That is helpful. Alexander—do you want to come back in?

Good morning. The previous CPG on culture, which was established in 2013 and ran over two sessions, was well subscribed and well attended. However, over time, we found that the wide range of areas that is covered by the term “culture” created some challenges when it came to the group’s ability to represent the breadth of groups in the sector, which includes the arts, screen, heritage and creative industries.

I acknowledge that there are concerns about the existence of a large number of CPGs and the pressure that that puts on MSP attendance. To avoid creating CPGs that are too specific, we propose to separate into two distinct groups, with the first being based around publicly funded culture, such as libraries, museums and national performing companies. I understand that the committee took evidence on that last week from Sarah Boyack. The other group, which I am proposing this morning, will be based around the industrial sector or the creative economy, including publishing companies, record companies, entrepreneurs and so on—that is, the more commercial end of the sector. That arrangement will allow MSPs and those who are in the sector to have sufficient focus across both areas. There may be some crossover when it comes to membership, but each group will have a distinct focus that will be reflected in its membership and activities.

The creative sector is of huge importance to Scotland’s economy. It involves more than 15,000 businesses that employ more than 70,000 people, in addition to many freelancers. Our creative industries contribute some £5 billion to the economy each year, and there are huge opportunities for increased productivity and growth. It is a sector that has been seriously impacted by the pandemic and, as we emerge from that, there is a real need to focus particularly on its recovery in the short and the long term. I believe that there is value in establishing the proposed CPG, in order to advance the addressing of those concerns.

I welcome the fact that the committee previously agreed to the formation of the group on culture and communities, and I hope that it will be able to support the group that I propose.

I will close with a question for Fraser Sime. Will you reflect on this morning’s evidence? I had a look at the Bank of Scotland’s website and the case studies of organisations and companies that have been funded. There is quite a mix, and many businesses are taking loans to finance their transition to net zero. Are there incentives or are those loans treated differently from loans that other businesses are requesting?

Is it typical of the banking sector to take that kind of approach to encourage green investment?

We move on to questions from Colin Beattie. As we are a bit pushed for time, it would be helpful if questioners and panel members could be succinct.

I thank Simon Crichton, David Ovens and Fraser Sime for being here this morning and for staying for the extended session. Your contributions are much appreciated.