Chamber and committees

The Just Transition Commission published a report today that says:

“the current path will not deliver a just transition”.

It is calling for a detailed and specific set of policies, actions, and investments. Is that what we can expect from the Grangemouth report when it comes out in the spring? You will know that we are currently doing an inquiry into a just transition for north-east Scotland. The commission’s criticism is that although the high level policy and approach might be embedded, there is a lack of action. Will the delivery plan give us that? The committee will scrutinise that when it is published.

Thank you, cabinet secretary and officials, for attending this morning. I will suspend the meeting. [Interruption.] Sorry, did you want to come in, Kenneth MacDermid?

Mr Hardie, you keep saying that no decision has been made, but what part of the decision has not been made? It sounds as though the refinery is going to close and we are going to move towards imports and exports. You have confirmed the kind of job changes and job losses that we are looking at, but you keep saying that no decision has been made. What bit of the decision has not been made?

So when the refinery will close is the final decision that has not been made, although most indicators seem to suggest spring 2025.

As I said, the committee carried out an inquiry into a just transition. The way in which the announcement was made makes it look as if there will be a sharp and sudden decline. If 400 jobs are lost, what proportion will that be of the jobs at the site? The whole point of a just transition is to not repeat the mistakes that were made in, for example, the mining industry. Unfortunately, the way in which the announcement was made makes it look more like that, instead of what we are looking for in a just transition.

Our next item of business is an evidence-taking session on Petroineos Grangemouth. On 22 November, it was reported that the oil refinery at Grangemouth would be transitioned to a fuels import terminal, possibly as early as spring 2025, with media reports suggesting a net loss of up to 400 jobs. That raises questions about the site’s future as a key employer and driver of economic activity in the area and, indeed, about Scotland and the United Kingdom’s energy and industrial strategy.

Earlier this year, the committee held an inquiry into a just transition for the Grangemouth area. We visited the Ineos site but, at that time, we were not made aware of the plans. This morning, we have an opportunity to discuss issues, including the impact on jobs, the support for workers and the impact on the Scottish cluster and Forth green freeport.

We will be taking evidence from two panels this morning. First, I welcome Iain Hardie, who is head of legal and external affairs at Petroineos Manufacturing Scotland Ltd, and?Colin Pritchard, who is sustainability director at Ineos Grangemouth. Thank you for attending the committee this morning.

The committee was, in fact, in session when the announcement and news about changes to the refinery broke on 22 November. Committee members were all very concerned by the news, given that we had conducted our inquiry in the summer. When were the workers made aware of the plans, and what consultation, if any, has taken place with the workers at the site?

For the Grangemouth area, it is not just about the 400 jobs. I think that people recognise that the 400 jobs involve people who are very highly skilled. We constantly hear at the committee that industries cannot get the skilled people that they need. We can anticipate that those people, who are highly skilled, will have transferable skills. However, there is also the impact on the wider community and on supply chains—I think that other members will pick up on supply chains. The wider community is where the just transition is meant to be delivered.

Part of the Government’s just transition plans was about gaining a fuller understanding of the impact of the site on the wider community, the supply chains and the economic impact of changes at the site. Are you still anticipating that that will be part of the delayed just transition plan? The concern is that, by the time the plan is published, it will be redundant, given the recent announcement. What can we expect from the plan in the spring? Will it take cognisance of the recent announcement?

You will know that the committee did an inquiry into the just transition for Grangemouth in the summer. The announcement was made during our committee meeting two weeks ago. That the announcement was made in the way that it was and the timescales that were attached to it were a bit of a shock to members. We have concerns. That type of announcement does not look like a just transition to us, after the work that was done in the summer. Four hundred jobs is a big proportion of the jobs at the refinery—it is four fifths of them—and quite a lot of jobs will be lost from the site overall.

How does that affect the Government’s just transition plans? From the outside, it looks like what we went through with the mining industry, which is what we are trying to avoid in the current situation.

Okay. We will focus on the issue of jobs, as that has come up. Perhaps the members who asked questions on that in the previous session would like to come in, starting with Maggie Chapman.

Okay. Colin Smyth wishes to come in on this issue.