Chamber and committees

Derek Mackay, Scottish Government’s Finance Secretary has announced that he will be passing on the UK Government’s guarantee on European funding in full. Following the Chancellor’s statement on 3 October, that guarantee now extends to all projects formally approved prior to the UK leaving the EU. The £20 million of ERDF for digital connectivity in the Highlands and Islands is being assessed for approval by the end of this year, and is therefore expected to be covered in full by the guarantee.

Evidence published by the Culture, Tourism, Europe and External Relations Committee based on analysis by the Fraser of Allander Institute confirms the risks that leaving the EU poses to Scotland’s economy.

The analysis forecasts that GDP could be more than 5% (£8 billion in 2015-16 terms) lower than would otherwise be the case after 10 years. The report also indicates that exports could be more than 11% lower, and that there could be 80,000 fewer jobs, compared to a scenario where the UK remains a member of the EU.

The Scottish Government is clear that, if we leave the EU without putting successor arrangements in place for the European Arrest Warrant, the advantages of speed and the streamlined process that the European Arrest Warrant provides and which benefit all parties will be lost.

As I outlined in Parliament on 1 November, there is no current clarity on this matter. Arrangements relating to the European Arrest Warrant are reserved so it is a matter for the UK Government to ensure appropriate arrangements continue post-Brexit for Scotland as well as the rest of the UK.

The Scottish Government assures EU and non-EU citizens working in Scotland that we want them here, we value their contribution, and we will be doing everything we can to make sure they can continue with us without detriment.

Information on how many NHS staff are Scottish, non-EU and EU citizens is not held centrally. We have previously estimated on the basis of information from ONS that around 5% of the NHS Scotland workforce are from the rest of the EU. However a SPICE Briefing paper published (via ONS) on 3rd November 2016 ‘EU Nationals living in Scotland’, available at the link below http://www.parliament.scot/parliamentarybusiness/101937.aspx records that the health and social work sector in Scotland employs 12,000 EU nationals, accounting for 3% of total employment in this sector.

The Scottish Government does not provide immigration advice. Immigration advice is available from immigration advisers regulated by and under the supervision of the immigration advice regulator (OISC). A list of registered immigration advisors registered with the OISC on their website: http://home.oisc.gov.uk/adviser_finder/finder.aspx. Immigration guidance and support is available from Scottish Enterprise (since April 2013) through the TalentScotland project funded by the Scottish Government.

Our discussions with the enterprise agencies, including Scottish Development International, have indicated that the majority of companies consider it too early to gauge the specific impact of Brexit on their business or decisions to invest. In the meantime, we are working closely with the enterprise agencies, as well as public, academic and industry partners to ensure there is a strong package of support for Scottish businesses and potential overseas investors. We also continue to engage directly with businesses following the EU referendum to listen to concerns, provide reassurance and reiterate that Scotland remains open for business.

The Scottish Government recognises that uncertainty has been created as a result of the EU referendum outcome, including on exports, and farm incomes where EU funding is an important factor. That is why my Ministerial colleagues and I have all pressed the UK Government on various fronts following the EU referendum on the issue of continuity of funding for the vitally important industries that rely on EU funds. We now have guarantees for CAP Pillar 1 until 2020, and for CAP Pillar 2 funding agreements that are entered into in the period between now and the point that the UK proposes to leave the EU. Derek Mackay, the Cabinet Secretary for Finance and the Constitution has confirmed that these guarantees are being passed on in full to Scottish stakeholders on EU funding.

Further to this, the Scottish Government has commissioned the Food and Agricultural Policy Research Institute (FAPRI) to undertake economic modelling on the potential impact of different trade and farm payment scenarios on Scottish agriculture. I expect findings will be available early next year and will add to the existing evidence base that includes a number of published studies on the impact of Brexit on UK farming sectors.

The Scottish Government have consistently lobbied the UK Government for a flexible approach to immigration across the UK.

With an ageing population and demand for skilled workers outstripping the local workforce in some sectors, our demographic and workforce needs are different to those in the rest of the UK. Migration is key to supporting sustainable population growth and any move to limit migration, whether from within or beyond the EU, has the potential to seriously harm our economy. Growth in the working age population plays a key role in underpinning sustainable economic growth and most of Scotland’s population growth comes from inward migration.

The Scottish Government will publish proposals over the coming weeks that would allow Scotland to stay in the single market and to preserve aspects of our relationship with the EU, even if the rest of the UK is intending to leave.

The Scottish Government recognises that agriculture is one of the mainstays of Scotland's rural economy and that the CAP plays an important role in helping farmers stabilise their incomes.

Our vision for the future is an agriculture industry in Scotland that is innovative, profitable, sustainable and supporting economic growth. We will work closely with industry to develop the next steps to help realise that vision, and this will help inform our deliberations on what future support measures may be appropriate for the industry.

The UK Government has recently revised its position on EU funding guarantees to cover in full the payment of all EU funding contracts for fishing, farming and food projects that are entered into before the UK proposes to leave the EU. The Cabinet Secretary for Finance and the Constitution has confirmed that these guarantees will be passed on in full to Scottish stakeholders to provide stability and certainty for these key sectors of the rural economy.

The UK Government’s position on EU Funding Guarantees demonstrates in the starkest possible terms that there are absolutely no guarantees or clarity on what will replace current European Union funding streams after the date that the UK proposes to leave the EU.