Chamber and committees

Tax revenues from oil and gas production depend on a range of different factors including production, prices and profitability.

Scotland’s economic fundamentals are strong. Even without oil, GDP per head in Scotland is higher than the UK average excluding London.

An independent Scotland would have the opportunity to pursue policies designed to grow the economy and invest in public services.

The North Sea has a bright future, with up to 20 billion barrels of oil equivalent of known reserves remaining in the UK continental shelf. Production has increased by an estimated 16% since 2014 and is expected to continue to grow in 2017 and 2018. The oil and gas sector has shown great resilience during challenging global conditions, with average unit operating costs around half their peak level in 2014. Merger and Acquisition activity so far in 2017 has already seen nearly twice as much money invested than across all of 2016, highlighting the continued appetite to invest in the basin.

However, last week’s Oil and Gas UK Business Outlook clearly highlighted the urgent need for fresh capital in the basin if we are to unlock the remaining 20 billion barrels of oil and gas. The UK Government holds the key fiscal levers and the Scottish Government will continue to call for further measures to urgently stimulate activity and investment, which will be of particular help to the hard hit supply chain

We have repeatedly called on the UK government to take steps to incentivise investment and maximise economic recovery. It is encouraging that the UK Government has finally listened to the Scottish Government about the need to ensure ‘the right assets are in the right hands’. This is an area where we have repeatedly called for reform and which the UK Government have been too slow to react, and therefore it is important that we now see urgent action from UK Ministers and not simply the establishment of another talking shop.

The following table is based on management information extracted from the Scottish Government Affordable Housing Supply Programme, and presents the number of social rented units under construction on site as at 30 September 2016, in line with the time period of data presented in the most recent quarterly official statistics release on affordable housing approvals, starts and completions:

As well as new build homes under construction, there are also 234 units forming rehab and conversion projects currently underway.

The next official statistics release, covering the period to end December 2016, will be published on 14 March 2017.

In answer to (a) and (b), the financial year 2016-17 runs from 1 April 2016 to 31 March 2017. The number of houses for social rent built over this period are published as part of our quarterly statistics.

The most recent official statistics published on 13 December 2016 and covering the period 1 April to end September 2016, show there were 1,566 new build homes completed for social rent as part of the Scottish Government Affordable Housing Supply Programme. However, as well as new build homes, there were also 189 homes delivered for social rent by way of rehab projects and off-the-shelf projects. The next set of quarterly statistics for the period to end December 2016 is due to be published on 14 March 2017.

(c) All local authorities publish a Local Housing Strategy (LHS). This is supplemented with a Strategic Housing Investment Plan (SHIP), which sets out over a five year period, plans to prioritise delivery of the objectives set out in the LHS. The number of homes for social rent being built in 2017-18 will be determined by the SHIP. These documents are used as a basis for the development of Strategic Local Programme Agreements (SLPAs) between local authorities and the Scottish Government, enabling them to deliver their affordable housing priorities, including homes for social rent, in mixed communities that fit local needs.

All local authorities publish a Local Housing Strategy (LHS). This is supplemented with a Strategic Housing Investment Plan (SHIP), which sets out over a five year period, plans to prioritise delivery of the objectives set out in the LHS. The number of homes for social rent being built in (a) 2018-19, (b) 2019-20 and (c) 2020-21 will be determined by the SHIP. These documents are used as a basis for the development of Strategic Local Programme Agreements (SLPAs) between local authorities and the Scottish Government, enabling them to deliver their affordable housing priorities, including homes for social rent, in mixed communities that fit local needs.

The second Developing the Young Workforce (DYW) annual progress report found at: Developing the Young Workforce Scotland's Youth Employment Strategy 2nd Annual Report 2015/2016, covers academic year 2015-16, and was published on 14 December 2016.

The report highlights significant progress made to date, including progress on the eleven Key Performance Indicators (KPI) for the DYW programme. The latest published data for the indicators highlighted in the question are highlighted as follows:

The Scottish Government paid 200,000 in January 2015 to DFDS, in support of the company’s operation of the Rosyth to Zeebrugge freight ferry service. The Scottish Government has not provided Forth Ports with funding for the route since January 2015.

The Scottish Government is committed to securing the Rosyth to Zeebrugge ferry service on an environmentally and economically sustainable basis in the interests of the freight industry and businesses in Scotland.

The Scottish Government has not raised the issue of seafarer pay rates on the Rosyth to Zeebrugge freight route with the UK Government or DFDS.

Scottish Ministers wrote to UK Ministers on 4 November 2016 asking the UK Government to investigate the wider issue of employment protection for seafarers, including the applicability of National Minimum Wage legislation in the maritime sector, specifically regarding seafarers working exclusively in UK waters.

The information requested is not held by the Scottish Government as Rosyth to Zeebrugge is a commercial freight ferry route operated by DFDS.

Improvements to the port facility or vessel to increase the capacity and improve the environmental performance have been made by the port authority Forth Ports or ferry operator DFDS.

We understand this included improvements to the port infrastructure to allow double stacked containers to be loaded onto the vessel, as well as the installation of scrubber technology on the Finlandia Seaways to comply with Sulphur Emissions Control Area restrictions.

Data on the number of freight passengers travelling on the Rosyth to Zeebrugge ferry is published in the Scottish Transport Statistics. The latest figures are at Table 9.13(b) in the report at:

http://www.transport.gov.scot/report/j415388-12.htm

It should be noted that the Finlandia Seaways can carry a maximum of
12 passengers per sailing.