Chamber and committees

SDS have advised that of the 1,204 respondents, 817 (68%) were in employment. Of those in employment, 440 (37%) were in full-time employment (30+ hours), 33 (3%) were in part-time employment (less than 30 hours), 156 (13%) were agency/temp workers and 188 (16%) were self-employed. By sector, 410 (34%) were working in oil and gas, 50 (4%) were working in the renewables, low carbon or engineering sector and 357 (30%) were working in other sectors. The break-down of employment type by sector is given at the following table.

The Oil and Gas Leadership Group plays an important role for engagement between sector, Government and the wider public sector. We recognise that the actions needed to become net-zero by 2045 will transform all sectors of our economy and society. This was the main agenda item during the last two ILG meetings which took place on the 7th May and the 17th September 2019.

As the pace of our transition increases, the need to ensure our transition is just and fair becomes ever more important. We have established an independent Just Transition Commission to provide practical advice on how best we can make the transition to a net-zero economy in a way that is fair for all.

The Commission started its work in January 2019 and has already held a meeting and an associated stakeholder event focused on the Oil and Gas sector. The commission will engage with businesses, workers and communities across the country in the lead up to providing practical recommendations to Scottish Ministers by early 2021.

The Scottish Government supports the Fair Work Convention’s vision for Scotland to be a fair work nation by 2025. The Framework underpins our Fair Work Action Plan and provides guidance for employers to promote and support fair work practices.

As a result of engagement with the STUC (Scottish Trades Union Congress), the Oil and Gas Leadership Group (ILG) now covers Fair Work as a fixed item on the agenda for all meetings. The ILG, membership consists of cross industry (including operators, contractors and SMEs), academia and industry trade bodies.

We strongly support the development of renewables, with 2018 proving to be yet another record year for renewable electricity in Scotland. Recent figures show that renewable electricity generation produced the equivalent of 76.3% of Scotland’s electricity demand, with a record 50.8% of Scotland’s electricity demand being able to be met by onshore wind alone in 2018.

Over time, we expect new electricity infrastructure, such as the Western Link between Scotland and Wales, which has been undergoing extensive testing and evaluation, to be a successful investment that will alleviate some of the current constraints and related payments. We will also continue to explore the role of storage, including hydrogen, and demand management to smooth out any peaks in electricity generation.

Energy retail markets remain reserved to the UK Government and this has limited the actions the Scottish Government can take to ensure that all consumers pay a fair tariff for their energy. Constraint payments to offshore wind farm developers are paid through the Renewables Obligation (RO) - an Ofgem administered scheme - the costs of which are passed on to consumers through their energy bills.

Within this context, we will use all measures at our disposal to champion the needs of Scotland’s energy consumers and - following our commitment in our Energy Consumers Action Plan to advocate for reforms to the energy market - we will ensure the consumer voice is heard by energy companies, the GB energy regulator and UK Government.

We have stressed the importance of utilising the Scottish supply chain wherever possible in the build out of the Moray East Offshore Wind Farm to both the operator and tier one suppliers. Earlier in the year, the Cabinet Secretary for Finance, Economy & Fair Work and I chaired a successful Supply Chain Summit where we set out our frustration with current levels of local content in offshore wind projects. We were clear with developers that the Scottish Government will not sit idly by as Scottish companies continue to lose out on massive contracts.

Following this summit, officials have been examining the policy levers and regulatory instruments at the disposal of Scottish Ministers to support the indigenous supply chain, and we intend on sharing the outputs of this work at a follow up summit later in the year. Over and above this, we have continued to call on the UK Government the need to review the CfD auction process in a way that would see it place more of an emphasis on the utilisation of the UK supply chain.

The Moray East Offshore Wind Project is operating an EPCI contracting strategy. Details of all the project's Tier 1 suppliers can be found at: https://www.4coffshore.com/windfarms/United-Kingdom/contracts-on-moray-east-uk40.html .

None of the Tier 1 suppliers are based in Scotland.

At present the Scottish Government has not agreed to pay any additional sums to ARL regarding its reported claims and no court proceedings have been raised. Transport Scotland continues to engage in dialogue with ARL regarding issues it has had on the project but the finer details of this matter are commercially sensitive and confidential. As I have already advised, information regarding additional payments to ARL in respect of these claims, should any be made, will be reported to Parliament in due course. Costs in relation to legal proceedings, should any take place, would be determined by the court at the conclusion of such proceedings and, similarly, will be reported to Parliament in due course should that situation arise.

It is a matter for ARL to decide whether, and if so when, to raise court proceedings in relation to any claim that it may consider it has in relation to the AWPR. The Scottish Government is continuing to engage in dialogue with ARL in relation to issues it has had on the project, but the details of those discussions are commercially sensitive and confidential.

In line with its Command and Control policy and procedures the Scottish Fire and Rescue Service mobilises Gold Commanders to the scene of the incident. This has been the case in all except one occasion over the last two years. On that one occasion, the Assistant Chief Officer was recalled to base whilst on route to the incident ground as his attendance was no longer necessary.

Details of the 14 mobilisations of Scottish Fire and Rescue Service Gold Commanders over the last two years are as follows:

The Scottish Government continues to engage extensively, at both official and Ministerial level, with the operator of Moray East Offshore Wind Farm regarding the benefit to Scottish economy arising from the project.

Our enterprise agencies, including Scottish Enterprise and Highlands and Islands Enterprise, are working closely with the operator to identify opportunities for Scottish supply chain companies.