Net Zero and Energy, and Transport
Good afternoon. The first item of business this afternoon is portfolio question time. The portfolio on this occasion is net zero and energy, and transport. I remind members who wish to ask a supplementary question to press their request-to-speak button during the relevant question.
Housing (Upgrades)
To ask the Scottish Government how it plans to upgrade older housing stock to make it suitable for modern-day heating systems. (S6O-04504)
The Scottish Government continues to work with key partners, including Historic Environment Scotland, to enable the best solutions to transition Scotland’s traditional buildings to be more energy efficient and to use clean heating systems while being sympathetic to their character and features.
In 2025-26, we are investing more than £300 million in heat and energy efficiency programmes, including for traditional properties. We are considering how we can provide for more bespoke assessment of the technically suitable energy efficiency and clean heating measures that are available for owners of traditional buildings.
The minister will be aware that the level of fuel poverty is highest in rural and island communities, where most of the housing stock is old croft houses. To address that fuel poverty, those houses need to be insulated. It is more expensive to do that in rural and island communities, because materials are more expensive and labour costs are higher, due to a lot of that not being locally available. What is the Scottish Government doing to ensure that rural and island homes are upgraded to cut carbon and tackle fuel poverty?
I concur with what Rhoda Grant says about the particular problem in the Highlands and Islands. I am aware of that from my constituency.
There is a recognition of rurality in the grant and loan scheme. There are also area-based schemes and many other schemes that have made a valuable contribution to addressing fuel poverty in the housing type that Rhoda Grant refers to. I am very acquainted with the situation, because I live in one of those properties.
Upgrading older housing stock will be a critical step in reaching our net zero goals. The barriers to achieving that include not having the skills to renovate and insulate properties and to install modern heating solutions. How is the Scottish Government ensuring that we have the expertise and skills in the workforce to do that?
I agree on the need to ensure that the skills are there, and it is relevant to island constituencies, such as the one that Beatrice Wishart represents, that we ensure that there are opportunities for training and retraining. For instance, we have invested in a mobile centre for heat pump installation training, to ensure that training opportunities are more equally available across Scotland. I visited that van when it was in Shetland, and I know that it has been appreciated by small businesses there. There are probably similar examples that can be replicated across the rest of the country.
Marine Energy Industry
To ask the Scottish Government what action it is taking to support the marine energy industry. (S6O-04505)
Over the past 10 years, the Scottish Government has invested around £50 million in marine technology development through the funding of Wave Energy Scotland. The growth of a world-leading marine renewables industry in this country has resulted in Scotland being internationally recognised as a global frontrunner in wave energy and home to the world’s first and largest tidal stream array and the largest tidal energy converter. However, the main levers for enabling the commercialisation of emerging pre-commercial technologies lie with the United Kingdom Government, including through the contracts for difference scheme, which is the primary way of supporting new low-carbon power infrastructure.
Scotland is already home to the biggest and most powerful tidal stream projects in the world, and it is a leader in wave energy development. Indeed, the European Marine Energy Centre has contributed more than £263 million in gross value added to the Scottish economy since 2003, instigating more than 630 high-value jobs across Scotland and the world’s most powerful tidal stream turbine, the O2, in Orkney.
Given the vast potential of our natural resources and the wealth of energy expertise in Scotland, especially in my constituency of Aberdeen South and North Kincardine, will the minister say more about Scotland’s future in the marine energy market and how we can further build momentum and attract investment into the sector?
As the member has recognised, our abundant natural resources, the sector’s expertise and experience, and the significant investment of the Scottish Government and our enterprise agencies, to date, in wave and tidal energy development have positioned Scotland as a global leader in that sector. However, there is now an opportunity for the UK Government to further build on that success and support the commercialisation and expansion of those nascent technologies, including, as I mentioned, through contracts for difference, which is the primary means of supporting new low-carbon power infrastructure.
The minister will be aware of the complex regulatory landscape offshore, with multiple regulators and landlords being responsible for overseeing wind, oil and gas, fishing and marine protection, all of which leads to congestion and overlap. I would be interested to hear what consideration the minister or the Government has given to the creation of an umbrella regulatory body to align that space and whether the Government believes that that would fall within the Scottish Government’s purview or whether that would be for the UK Government or cross-Government working. I appreciate that he might not have the answers today, but if he could write to me, that would be appreciated.
I do not think that we are talking about the creation of new bodies. The member makes an important point about the need to ensure that the competing interests in those areas are brought together as much as possible, that we think about spatial planning and that we bring interested parties to the table. The Scottish Government will continue to do that in the areas within our powers.
The Scottish Government is aware of Nova Innovation, a world-leading Scottish marine energy company that manufactures in Leith, in my constituency. It has secured £100 million of investment for a tidal array in Orkney, is planning floating solar arrays across the UK and is considering a manufacturing base in Grangemouth. Considering all of that, will the minister agree to meet me and that remarkable home-grown company to discuss its projects and next steps?
I recognise the contribution of Nova Innovation and its pioneering projects in the development and deployment of tidal energy and the benefits that go with that, both economically and environmentally, across the country. The Scottish Government would certainly welcome a meeting. I am very happy to arrange such a meeting and to be part of it, and I can confirm that officials also met Simon Forrest, the chief executive of Nova Innovation, recently.
Question 3 has been withdrawn.
Lothian Buses (Meetings)
To ask the Scottish Government when it last met with representatives from Lothian Buses. (S6O-04507)
Lothian Buses joined other bus operators, as well as the Confederation of Passenger Transport, for a meeting that I held in Parliament on 5 February. Officials from Transport Scotland also meet bus operators, including Lothian Buses, regularly.
Lothian Buses has withdrawn key services from communities including Stenton, Macmerry, Tranent, Prestonpans and Penicuik. Macmerry is losing all but peak services into Edinburgh, which is, frankly, a disgrace. Following the announcement, and before some of the adverse effects on commuters were fully reported to us by our constituents, local MSPs met Lothian Buses separately. However, a request for a second and urgent meeting involving all local MSPs this week has been turned down by bus bosses, who high-handedly say that they cannot meet until May at the earliest, which will be weeks after service cuts come into force.
Will the minister join me in reminding Lothian Buses, which is ultimately owned by local councils, of the need to fully engage with elected members? Will the minister also consider changing the regulations so that bus companies have to consult local communities, such as that in Macmerry, before they strip them of their bus services?
I fully understand the member’s frustration. It is really disheartening when services are cut. However, I remind him that this is a deregulated service and it is up to the bus companies to make the decisions. I take his point about who own Lothian Buses. The conversation has to be between Lothian Buses and the local authorities, because they are the people who will ultimately make the decision.
Will the minister or the cabinet secretary agree to meet Lothian Buses to discuss the issue of enabling bus operators to withdraw the under-22 bus pass when the cardholder has been involved in antisocial behaviour? My understanding is that the pass can be removed only when there has been fraudulent activity. The inability to remove the pass is creating a big problem for people in the Lothians at the moment.
As the member knows, we are well aware of the issue that she has raised. Indeed, the cabinet secretary discussed it yesterday with the Confederation of Passenger Transport. That conversation is on-going—we are not ignoring the issue. Work is being done behind the scenes to allow the conversation to continue, and we will continue to look at the matter until we find some solutions.
House Coal (Ban)
To ask the Scottish Government whether it will provide an update on its commitment to ban house coal, as set out in its strategy, cleaner air for Scotland 2. (S6O-04508)
We are committed to securing warmer, greener and cheaper heating for everyone in Scotland. A move towards cleaner fuels must take place as part of a just transition, to ensure that no one is left in fuel poverty. We will review the evidence on the potential impacts of taking forward a ban on the sale of house coal on fuel supplies and costs in rural and islands communities, where many people still rely on coal for heating their homes.
As part of its strategy, the Scottish Government set an ambitious target to have the best air quality in Europe. I am sure that the minister agrees that, if we are to meet that target, the most polluting fuels must be banned to protect the environment and human health. Can the minister give us a timescale for when further consideration will be given to phasing out the use of house coal? Will he commit to holding a consultation at the earliest opportunity, so that we can get on with action that other parts of the United Kingdom have already taken?
In comparison with much of Europe, Scotland enjoys good air quality, and emissions of the main air pollutants, which Colin Smyth referred to, have declined significantly over the past three decades. That has been achieved through tighter regulation, improved fuel quality, cleaner vehicles and many other factors.
As I mentioned, I am open to looking at such matters as we move forward, but we must do so in a way that takes account of the evidence from particular parts of Scotland.
CalMac Ferries (Construction)
To ask the Scottish Government when it or its agencies next plan to build CalMac ferries in Scotland. (S6O-04509)
We intend to invest more than £530 million in ferry services, vessels and infrastructure as part of the budget for 2025-26, and we are looking to complete procurement of a further three major vessels within the next year. That is in addition to the seven small vessels on which we expect Caledonian Maritime Assets Ltd to move to contract award very shortly.
Under the procurement rules that were set by the Conservative United Kingdom Government through the Subsidy Control Act 2022 and the Procurement Act 2023, the direct award of public contracts is possible only in strictly limited circumstances. Ministers will consider future vessel contracts from public agencies on a case-by-case basis to determine whether any might legally be open to direct award.
I thank the cabinet secretary for that response, and I convey my thoughts to members of the front bench for carrying on their business as normal. I know that it must be a difficult day for the cabinet secretary and her colleagues, and I want to express that personally.
I also want to convey my thanks to Ferguson Marine’s new chief executive, Graeme Thomson, and the outgoing chief executive, John Petticrew, who I know was a passionate advocate for ferry building and shipyards on the Clyde. Of course, the news about the small vessel replacement programme is disappointing, but we all have a shared ambition to see the yard flourish in the future. Can we look forward to some good news for Ferguson’s and its workers, and to seeing more CalMac ferries being built in Port Glasgow and on the Clyde, which is a shared ambition of all of us?
I very much appreciate the concern for us that the member expressed. Christina McKelvie was a beautiful and compassionate force of nature.
I agree with the member’s thanks to the outgoing chief executive and his welcome for the new chief executive, who was also welcomed by the Cabinet Secretary for Economy and Gaelic when the announcement was made.
The role of Government in that space is to continue to support and invest in Ferguson’s, as has been announced. As the Cabinet Secretary for Transport, my role lies in the procurement space. Given that investment has been secured for a further three major vessels and that SVRP 2 will come on stream, it is clear that there is a firm future for the procurement of ships and vessels for our island communities.
In structuring the tendering procedure for phase 2 of the small vessel replacement programme, would the cabinet secretary consider ensuring that there is a minimum social value weighting of at least 10 per cent, in line with procurement practices in other parts of the United Kingdom? If so, would that weighting be likely to include a UK work share in the contract? Will the cabinet secretary also think about whether we can structure shipyards or shipbuilding facilities in Scotland as common user facilities, so that any tenderer, anywhere in the world, can include in their bid an intention to use a UK or Scottish shipyard for the purpose of fulfilling the contract?
I listened carefully to the member when he made similar remarks in the chamber recently.
We are guided by the existing procurement rules and I will take advice from CMAL, as appropriate, at each phase. The positive news is the level of investment that we have to take forward the procurement. I am cognisant of the remarks that the member has made not only today but previously.
Offshore Wind Industry
To ask the Scottish Government whether it will provide an update on its work to grow the offshore wind industry. (S6O-04510)
The success of Scotland’s offshore wind industry is a priority for this Government. Our investment forum last week underlined our commitment to attracting investment and demonstrated the approach that we are taking across the public sector by addressing areas such as investment, consenting, skills and grid.
We are working closely with the sector to align our approach to the challenges that it faces. This year, we have tripled our capital investment in the sector to £150 million to support the ports, manufacturing and supply chain facilities required, which is helping to secure jobs and economic benefits at scale in Scotland.
We are all aware of the urgent need to tackle the climate emergency and to achieve net zero. However, it is also crucial to unlock the economic potential of the energy transition to create jobs and boost economic growth for our communities. Will the minister advise what steps the Scottish Government is taking to establish manufacturing capabilities in Scotland in order to keep skilled jobs in our communities?
The member is right to say that environmental and economic benefits go together. We will ensure co-ordinated action across the green industry strategic priority areas to maximise positive economic outcomes. We have invested significantly in Scotland’s manufacturing support infrastructure, including an investment of just under £75 million in the National Manufacturing Institute Scotland and the development of regional and sectoral facilities that are focused on improving the knowledge and skill sets that will be needed by the workforce.
Our “Offshore Wind Focus” paper identifies the priority areas for supply chain and infrastructure investment in Scotland’s offshore wind sector and underpins the Government’s approach to delivering a strategic investment of up to £500 million over five years.
The minister was at a very positive Scottish Offshore Wind Energy Council event in Parliament this week, where many people raised with me the issue of supply chains in manufacturing. My question follows on from the minister’s answer to the previous question. Will he focus on providing certainty by speeding up decisions? Supply chains are a major issue that Lothian region faces, and we need to be able to get the investment that we need.
I concur with what the member said and thank her for sponsoring that event. I also highlight the importance of the Scottish supply chain. As I said, we are investing up to £500 million over five years and we hope and expect that that will leverage in additional private investment of up to £1.5 billion in the infrastructure and manufacturing facilities that are critical to growing the sector. That work by the Scottish Government to engage and attract the interest of the private sector will ultimately lead to the development at scale that the member alludes to.
I can also point to specific things, including strategic projects such as Sumitomo’s new cable factory, which is under construction at Nigg, or the planned manufacturing facility at Hunterston, as well as projects at Ardersier, Scapa, Nigg and Montrose.
The minister will be well aware that, in many instances, it is the profits from companies’ oil and gas interests that are funding investment in renewables. Does he therefore share my concern about the data that the Office for Budget Responsibility released yesterday that shows that tax receipts from North Sea oil and gas will slump from £5.4 billion to £2.3 billion by the end of the decade? Surely that will impact on profits and impede investment in renewables.
As was discussed earlier today, the long-term trajectory around the income that the UK Government derives from the North Sea is determined by the long-term trajectory of the maturing of the North Sea basin. That does not mean that the Scottish Government does not think that oil and gas are important—clearly, they are. However, the trends that the member refers to are outwith the control of any Government. We have to ensure that there is a genuinely just transition for the parts of the country that have invested so heavily and have so many skills in the oil and gas sector, and to ensure that the many people in those industries who are seeking new opportunities get the skills that they need to do that.
Question 8 has been withdrawn. That concludes portfolio questions. Before we move to the next item of business, there will be a brief pause to allow the front-bench teams to change positions.
Air ais
Black Watch (300th Anniversary)Air adhart
Fatal Accident Inquiries (Deaths in Custody)