Chamber and committees

Migrant workers make a valuable contribution to our country and are an important part of Scotland’s future. We consider immigration as a positive lever in contributing to the Scottish economy, society and population and the Scottish Government published two analytical reports on the characteristics and contribution that migrants make to Scotland on 28 October 2016: ‘Characteristics of migrants in Scotland: Analysis of the 2011 Census’ and ‘The Impacts of migrants and migration into Scotland’ While the Scottish Government has not undertaken any specific assessment of the contribution of migrant workers to industries that export, the Scottish Government has published relevant data on the value of exports by industry and National Records for Scotland has published information on the number of migrant workers by industry:

Information is published by the Scottish Government on industries which export in the publication Export Statistics Scotland. The latest information was published for 2014 on the 27 January 2016 at: http://www.gov.scot/Topics/Statistics/Browse/Economy/Exports/ESSPublication

Information on number of migrants employed by detailed industry is published by National Records of Scotland from Scotland Census 2011 and can be accessed on the Scotland’s Census web site in table ‘CT_0171a_2011 – Migrant status (1) by Industry (detailed)’ accessible via the ‘Scotland Census Table index’ at: http://www.scotlandscensus.gov.uk/ods-web/data-warehouse.html

Our research has indicated that integrated project insurance (IPI) can be a positive contributor to a successful public project and was considered as part of the Review of Scottish Public Sector Procurement in Construction which published in October 2013. We have offered support to contracting authorities to undertake a pilot. To date no projects have been identified where an IPI pilot would be appropriate. We remain ready to offer support to those looking to pilot IPI.

The Review of Scottish Public Sector Procurement in Construction, published in October 2013, recommended that cash retentions should only be used after careful consideration by contracting authorities, and not as a default measure, and that more detailed guidance was required to help contracting authorities make appropriate and proportionate decisions regarding their use. We are currently developing that guidance in consultation with a wide range of stakeholders, including industry, and will consider the feasibility of ring fencing retentions along with possible alternatives to them.

European Union membership has been vitally important for attracting inward investment into Scotland as it allows companies free access to European markets. There are currently 1,000 EU-owned companies in Scotland employing 127,110 people. Ernst and Young estimate that since 2006, Foreign Direct Investment in Scotland has created nearly 40,000 jobs. According to the most recent data, Scotland secured more Foreign Direct Investment projects than any part of the UK outside of London.

Lower Foreign Direct Investment is just one of the channels through which the economy will be affected should the UK leave the single market. A Scottish Government analysis, "Potential Implications of the UK leaving the EU on Scotland's Long Run Economic Performance", was published in August 2016 and highlighted that by 2030, a hard Brexit could reduce Scottish GDP by £3.7bn - £11.2bn (£700 to £2,100 per capita).

A copy of the analysis is on the Scottish Government website at: http://www.gov.scot/Resource/0050/00504615

Scottish Development International (SDI) is a tripartite arrangement between Scottish Government, Scottish Enterprise and Highlands and Islands Enterprise. SDI provides support for companies to establish and grow their businesses in Scotland and help companies to expand their international trade. SDI’s programme of international market events (held both in Scotland and abroad) are designed to support an increase in international trade and investment and form part of an integrated package of international support for the Scotland’s sectors and companies. SDI undertake a robust appraisal process for each event and following each event companies are asked for feedback including any potential international sales secured. However, there is in most cases a lag between attending the event and securing international orders. SDI is currently undertaking a formal evaluation of all its international activity which will include international market events. Scottish export statistics are published on an annual basis.

The following table contains a breakdown of trade delegations since May 2016:

European Directive 2014/24/EU on Public Procurement introduced the concept of a European Single Procurement Document (ESPD) for public procurements and this has been given effect in Scotland in the Public Contracts (Scotland) Regulations 2015. When bidding for a public contract, all companies are required to submit an ESPD as a formal statement declaring that they do not breach any of the exclusion grounds, and that they meet any minimum standards set by the buying organisation in relation to their capacity and capability to perform the contract.

In addition, statutory guidance published in March 2016 under the Procurement Reform (Scotland) Act 2014, states that the ESPD should also be used for regulated procurements below the EU contract threshold values.

As part of the process of implementing the 2015 Regulations, a public consultation asked whether the Regulations should require or to give discretion to public bodies to verify whether there are grounds for the exclusion of subcontractors, in some limited circumstances through the use of the ESPD. The 2015 Regulations support the overwhelming view of responses, which was for public bodies to have discretion to decide when it is appropriate to ask for that information based on each individual case.

The Scottish Government has provided nearly £39 million from 2008-09 – 2016-17 for NHS Board Carer Information Strategies. This is for direct support to Carers Centres, Young Carers Projects and voluntary sector programmes, including the provision of training for carers.

The Scottish Manual Handling Passport Scheme is an initiative designed to improve the standard and consistency of manual handling training, education and the systems that underpin it within Health Boards and local authorities in Scotland. This includes the involvement of unpaid carers. This guidance was endorsed by the Health and Safety Executive and COSLA, and published by the Scottish Government on 8 August 2014.

The Carers (Scotland) Act will be commenced on 1st April 2018. The Adult Carer Support Plan and Young Carer Statement must contain information about the extent to which the carer is able and willing to provide care for the cared-for person, and information about the support available to the carer and cared-for person in the local authority area. This may include any training that the carer requires, including on moving and handling.

The Act also places a duty on each local authority to establish and maintain an information and advice service which must provide information and advice about, amongst other things, education and training for carers.

Scottish Government published Procurement Policy Note 10/2016 on 23 September 2016 requiring public bodies covered by the Scottish Public Finance Manual to include a Project Bank Account in tender documents for public works contracts with an estimated value of at least £4,104,394 for building projects and £10,000,000 for civil engineering projects starting procurement procedures after 31 October 2016. The number of projects using Project Bank Accounts will be defined by the number of projects commissioned by relevant public bodies meeting these criteria. Independent bodies not covered by the Manual were asked in the Policy Note to implement Project Bank Accounts and Scottish Government’s official guidance is publicly available to enable this.

Brexit is by far the biggest threat to Scotland’s jobs, prosperity and economy. That is why the Scottish Government has always been clear that remaining in Europe – and maintaining full access to the world’s largest single market of more than 500 million people – is the best option for our future. Last month the Scottish Government published a detailed set of proposals in “Scotland’s Place in Europe”. This paper was discussed at the Joint Ministerial Committee for EU Negotiations this morning. Discussions are on-going in a bilateral space.

As part of our support for the economy, the Scottish Government announced a package of action to reduce business rates as part of the draft budget. This includes expanding the Small Business Bonus Scheme from 2017 to lift 100,000 properties out of rates completely, while 8,000 business properties will no longer pay the Large Business Supplement, and the overall business rates poundage – the core tax rate that applies to the rateable value of business properties – will also be cut by 3.7% to 46.6p.

I warmly welcome the Scottish Veterans Commissioner’s report, “The Veterans Community – Employability, Skills and Learning”. This is an important subject and I am keen that we can respond positively to his recommendations. The report contained a wide-ranging set of 19 recommendations and work is underway to examine these in depth.

In November 2016, I informed the Commissioner formally that I welcome and accept his recommendation to update Parliament on progress on all his recommendations on an annual basis. A response on the full set of recommendations contained in the report will be published before the next cross-party working group on the Armed Forces and Veterans in early-March 2017.