Chamber and committees

Over the course of the last Parliamentary session, Scottish Ministers and government officials have engaged with industry representatives on priority issues for their sector, including planning for and supporting the transition to net zero. Additionally, sectoral engagement is regularly undertaken through forums including the Oil and Gas and Energy Transition Strategic Leadership Group, the Construction Industry Training Board and the Climate Emergency Skills Action Plan Implementation Steering Group.

As set out by the Cabinet Secretary for Finance and the Economy in July, the Scottish Government is developing a 10 Year National Strategy for Economic Transformation. This strategy will prioritise investment in the industries of the future and deliver new, good and green jobs, therefore, co-production with industry will be key.

In March this year, I attended the first meeting of the Climate Emergency Skills Action Plan Implementation Steering Group and continue to liaise with industry representatives such as The Construction Industry Training Board - most recently in July - on the importance of training and skills as we transition to net zero.

In addition, the former Energy Minister met with key stakeholders regularly to understand the specific challenges and barriers to the sector but also wider energy transition opportunities, with a key forum being the Oil and Gas and Energy Transition Strategic Leadership Group (SLG). The SLG held two focused meetings on workforce retention, skills and training challenges and opportunities and is representative of industry, OPITO, Skills Development Scotland and offshore unions.

Scotland’s first long-term national housing strategy ‘Housing to 2040’ was published in March 2021. It outlined the Scottish Government's ambition to deliver 100,000 affordable homes by 2032.

We are committed to ensuring that new homes, consented from 2024, must use heating systems which produce zero direct greenhouse gas emissions (at the point of use). While our approach will be technology neutral, it is envisaged that the electrification of heat will increase substantially through the use of technologies such as heat pumps in new homes.

To illustrate this: in 2019, 83% of all electrically fuelled properties were fitted with a heat pump - rising to 89% in 2020. In line with this trend, whilst noting that not all of the 100,000 affordable homes to be delivered by 2032 will be new build, it is anticipated that the majority of the newly-constructed affordable homes consented from 2024 would be served by heat pump technology - with the remainder being served by an alternative zero direct emissions heat source, such as heat networks.

We have commissioned a heat pump sector deal expert advisory group to outline how government and industry will work together to grow the supply chain and scale deployment of the heat pumps to the ambitious levels required. The group provided an interim report in June and are due to publish a final report later this summer. We have committed to responding to their recommendations in our final Heat in Buildings Strategy.

The development of the Climate Emergency Skills Action Plan (CESAP) published in December 2020 by Skills Development Scotland and the Scottish Government involved close engagement with Industry Leadership Groups and associated skills groups to identify skills requirements and activity underway in support of the transition to net zero.

The CESAP Implementation Steering Group meets quarterly to drive forward progress and is attended by industry representation bodies such as Scottish Renewables and Scottish Engineering as well as trade unions who feed in their expertise.

As outlined in CESAP and our 100 Day Commitment Manifesto, we will shortly launch the Green Jobs Workforce Academy, a national long term programme to support the retraining and upskilling needed for the transition to net zero.

Sectoral discussions between the Scottish Government and industry regarding training for workers transitioning to net zero is ongoing. Some recent examples include:

• Last year Transport Scotland worked with the Scottish Motor Trade Association, and the Institute of the Motor Industry (IMI) to research the skills required for mass uptake of Ultra Low Emission Vehicles.
• The Scottish Government has discussed skills required to deliver a just transition to net zero with industry representatives through its manufacturing recovery plan, delivered via a public and private sector partnership.
• In December 2020 the Implementation Steering Group for the Skills Action Plan for Rural Scotland discussed alignment to CESAP. Its membership includes Confor (forestry and timber industry), Seafood Scotland, tourism bodies and business organisations.
• The Energy Skills Alliance, which includes industry membership bodies and government agencies discussed the delivery of a work programme to ensure industry is prepared to meet the future demand for skills in oil and gas, and other related energy industries.

The Scottish Government does not hold data on the annual spend for oil and gas workers specifically for net zero training. However the Oil and Gas Transition Training Fund (TTF) ran from 2016 to 2019 to help workers affected by site closures to re-skill and retrain to find employment. The total spend against the fund is listed in the following table:

(i) I refer the member to the answer to question S6W-01431 on 4 August 2021. All answers to written Parliamentary Questions are available on the Parliament's website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers

(ii) The number of new build completions in Scotland fitted with heat pumps from 2016-2020 are as follows:

• Houses: 6,950
• Flats: 820

Source: Management information as extracted from the EPC database (December 2020, 2020 data accessed July 2021), published and available at statistics.gov.scot : Domestic Energy Performance Certificates - Dataset to Q4 2020

Through our membership of the Energy Skills Alliance, we are working collaboratively with the industry, trade bodies and unions to ensure the right skills and training are in place to protect and create jobs as we become a net-zero economy. Our Climate Emergency Skills Action Plan puts knowledge and skills at the heart of a systematic approach to retaining skills and expertise as we transition to becoming a net-zero economy and, this year, the first wave of our £100 million Green Jobs Fund got under way.

In 2020 we launched our £62 million Energy Transition Fund to support the oil, gas and energy sectors grow and diversify, accelerating its transition to net-zero emissions. Fair Work principles are being applied across projects funded by the Energy Transition Fund, supporting the creation of green jobs and training individuals with the skills they need to ensure a just transition to net-zero that puts people’s wellbeing at the heart of our net-zero economy. By capitalising on our strengths in energy, innovation, and our skilled workforce, Scotland can show the rest of the world how it’s done – and ensure our people, businesses and communities are at the forefront of our new green economy.

We have also introduced the National Transition Training Fund (NTTF) to support individuals at risk of Covid-19 related redundancy to move into new industries. A number of colleges are delivering courses to support the transition to net zero. In the coming weeks we will set out how NTTF will continue to address the impact of Covid-19, but also take account of the impacts of EU exit, and support upskilling or retraining for the transition to net zero.

We will also invest an additional £500 million over the next parliament to support new jobs and reskill people for the jobs of the future.

Data on the number of heat pumps in Scotland can be found on page 27 of the ‘Renewable Heat in Scotland, 2019’ report, which was published in October 2020: Renewable-Heat-in-Scotland-2019_new.pdf (energysavingtrust.org.uk) . The report states that there are, as of 2019, 17,140 heat pumps in Scotland. The next report is due to be released in October 2021.

While the regulation of consumer protection is reserved to the UK Government, the Scottish Government supports this right for consumers in relation to faulty goods. It provides clarity to businesses about their obligations to their consumers and helps businesses to ensure that any complaints are handled quickly and easily. The UK Government published an Impact Assessment in January 2014 which estimated the net annual cost to UK businesses at £2.78m. No separate impact assessment was carried out for Scotland.

Live music performers should follow the performing arts guidance, available here . This was developed with a wide range of performing arts practitioners and looked ahead to outline details for the eventual resumption of live public performances. This guidance was last updated on 19 July. This update confirmed the move from 2 metre physical distancing to 1 metre in all indoor settings including in performing arts venues.

Separate guidance is available for live music performances which take place in hospitality settings. This reflects the different considerations that need to make in hospitality settings. The guidance for live entertainment in hospitality was updated on 16 July. The main purpose of the update was to indicate that live entertainment would be possible in general hospitality from 19 July.

With regards to live performances in events and stadia settings, the First Minister’s statement on 13 July confirmed maximum attendances as 2,000 in seated outdoor settings and 1,000 in standing outdoor settings, and indoors to 400. Organisers can apply to local authorities for higher attendance capacities.

To assist event organisers the Scottish Government has developed guidance for the sector, last update on 20 July: Coronavirus (COVID-19): events sector guidance - gov.scot (www.gov.scot)

The next review of restrictions will be in the week before 9 August when we hope to be able to move beyond Level 0 with baseline mitigations in place. We have consulted with the live performance sector widely on these mitigations to ensure we understand the impact they will have on businesses and their likely effectiveness.

Live entertainment can take place in general hospitality from Level 0 where physical distancing in indoor public spaces is standardised at 1 metre. If live entertainment is provided in dedicated events spaces in hospitality, such as a function hall or conference room, then this can be planned under events and or performing arts guidance . Live entertainment must still only be offered in line with a premises’ licensing conditions and, where necessary, engagement with the local authority. More details can be found in the tourism and hospitality sector guidance .

If we continue to move in the right direction following our review on 19 July, we intend to move beyond Level 0 from 9 August and lift the Levels system of restrictions and remaining physical distancing measures. Nightclubs should be able to reopen from this date if the evidence supports it at the next review point.