Chamber and committees

Thank you. I understand that there is a new memorandum of understanding between the convention and the Scottish Government. Do you want to say a bit about the purpose of that and what you hope that will achieve?

Good morning, and welcome to the 25th meeting in 2024 of the Economy and Fair Work Committee. Our first item of business is a decision on whether to take item 3 in private. Do members agree to take item 3 in private?

Members indicated agreement.

Committee members will pick up on particular areas. You have given a really helpful overview of some of the key indicators.

Do you want to say a bit more about the disability employment gap? The committee has undertaken an inquiry into that, and we are near to publishing our report, so we are interested in that area. As you pointed out, Scotland was sixth out of eight on that indicator.

You said that Scotland had made good progress on payment of the living wage and that part of that was down to the Government’s focus on that issue, with targeted improvements. Have the countries that are doing better in relation to the disability employment gap achieved progress because of Government direction? Do we need to see more activity from the Scottish Government? I know that we are making some progress, but there are concerns that there is still quite a lot to do to close the gap. Do you have a view on what the Government needs to do and on why we are sitting at sixth out of eight?

I am sorry to interrupt, but we are a bit pressed for time. Before I move on to Scottish Enterprise, looking a bit further forward, you will know that the ScotWind revenue of £450 million may be used to support resource spending in the coming year. As a body, you have previously commented on the importance of ScotWind and the opportunities that it presents for renewables investment. Do you have any comment on the Government’s announcement of the use of the remaining £450 million that came from ScotWind?

I have two similar questions for Scottish Enterprise. There is a challenging budget settlement this year and looking to next year, so what are the risks to delivery? What is the impact of the announcement that the ScotWind revenue is likely to be used for resource funding rather than investment?

Our next item is an evidence session with the Scottish National Investment Bank and Scottish Enterprise. The main purpose of the session is to inform the committee’s pre-budget consideration. I welcome Al Denholm, chief executive officer, and Michael Robertson, chief financial officer, from the Scottish National Investment Bank; and Adrian Gillespie, chief executive, and Douglas Colquhoun, chief financial officer, from Scottish Enterprise.

It would be helpful if members and witnesses could keep their questions and answers as precise and concise as possible.

I come to my opening question. We are looking at the budget for the upcoming year. We have also had in-budget adjustments made this year, so we are facing a difficult financial situation. I ask the witnesses to briefly say what the priorities are, but to focus more on the challenges and the risks to the delivery of those priorities, given the financial situation that we face. I ask the Scottish National Investment Bank to go first.

At the start of the meeting, you said that you have committed £650 million of the £2 billion capitalisation. The capitalisation of £2 billion was announced in 2020. Given our financial situation, are you still confident that the whole £2 billion investment will be delivered during the timescale that was set?

If it is brief, then I will bring in Gordon MacDonald.

Thank you. That is helpful.

That brings us to the end of today’s meeting. I thank witnesses for attending.

I am sorry to interrupt, but will the budget that we are facing slow down the pace that you have said the Scottish National Investment Bank is working at?