Seòmar agus comataidhean

I want to move on to another topic—that of the role of this Parliament in the scrutiny of city region and regional growth deals. It has not been certain to us as a committee in what respect the Scottish Parliament has previously had a role in ensuring that the city region deals have the positive outcomes that we all want to see. What is your sentiment as to the role of this place in that regard? What is your intention with regard to giving this Parliament its place when it comes to scrutiny?

I have a couple of quick questions. Earlier, you mentioned the industrial strategy. The UK’s industrial strategy advisory council was formed in late 2024, but I am concerned about the fact that, despite the recognition that Scotland is at the heart of the net zero future, which is a critical growth sector, there is no Scottish representation on that council. Why is that?

Good morning, and thank you very much for joining us. I want to ask some general questions on the funding for the deals. We know that their profile has been different, and we know there have been historical differences and so on. You may be aware that the Secretary of State for Scotland gave evidence earlier, and I asked him, in light of the forthcoming review and the general challenges in the UK economy, whether there could be an impact on city deals, given the chancellor’s expressed need to find money anywhere that she can. How strong a sense do you have of the commitment to multiyear funding and, within that, the bringing in of private sector funding? In particular, how confident will the private sector be in funding if UK Government commitments to funding are uncertain?

It is a general question and I am not bothered who goes first. Derek, you smiled.

Thank you. Does anyone else want to comment?

No—it is fine. You have put your view on the record, and that is helpful. Thank you. I appreciate you attending today.

On governance, you correctly point out that both the Scottish Government and the UK Government have a role to play. From a purely governance perspective, I have always been a little unclear as to how that arrangement works. Generally speaking, in any governance structure, there will be one authority that is ultimately accountable. In this instance, the position is less clear from a governance perspective. Who do you see being the ultimate accountable body when both the Scottish Government and the UK Government are providing funding? How do you see the arrangement working in that regard?

The Scottish Council for Development and Industry—now known as Prosper—was formed in 1931 with a specific focus on industrial strategy. However, it is not represented on the council, which seems utterly bizarre. In other words, will you commit today to looking at ensuring that there is proper Scottish representation on the council to make sure that Scotland is properly at the heart of the net zero future, which is one of the critical growth sectors?

I completely agree, and that is why I think that it is important that the body can deliver through Scotland and not just to Scotland, which is why it is important that it has genuine and adequate Scottish representation. However, I will move on, as I appreciate that your time is precious.

I could not let today’s session go by without raising the issue of Grangemouth, which, as you will appreciate, is extremely close to my heart. There has been much debate and discussion around the issue, but, in light of what we see in terms of the net zero future, my primary interest remains how we can protect and retain the skills base with whatever transition is put in place, and not only the skills base but that skills cluster, which also includes the important chemical cluster. Can you give a sense of your latest thinking on what the current situation is, for the record?

I suspect that colleagues may want to ask about the detail of how the inflationary environment affects the projects, but I will finish off my questions on the funding elements.

I am thinking about deal interactions and profiling. Public sector funding may move from one pot to another pot—we heard descriptions of that earlier. Deal teams might interact with various sources of potential funding: there is levelling up, the shared prosperity fund and the Scottish National Investment Bank, and we are not yet sure how the UK investment bank will interface with them. Are you alive to that issue, and does it pose any risks or, indeed, opportunities?

My point was about specific actions that you anticipate taking to protect the skills base during the transition period.

Thank you. Derek, you spoke about how vital it is that private sector partners are involved in various deals. I presume that they will do their own risk assessments because the convening power of a commitment to public sector funding is so vital to bringing in the private sector funding. Have you heard any concerns expressed by any of the private sector partners with whom you have dealt in any of the deals?