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Ewan, are the bigger retailers concerned about that?

Good morning, and welcome to the 13th meeting in 2021 of the Economy and Fair Work Committee. Our first item of business is a decision on whether to take in private item 4. Are members content to do that?

Members indicated agreement.

The main item of business is the fourth session in our inquiry into Scotland’s supply chain. The inquiry is looking at the short and medium-term structural challenges that are faced by Scotland’s supply chain, and how the challenges and shifts in supply chains are impacting on Scotland’s economy. We want to consider how to build future resilience and whether there are opportunities to develop domestic supply chains.

This week, we are looking at the retail sector. I thank our panel for joining us in person. I welcome Dr John Lee, who is the head of policy and public affairs at the Scottish Grocers Federation; Ewan MacDonald-Russell, who is the head of policy and external affairs, at the Scottish Retail Consortium; and Colin Smith who is the chief executive of the Scottish Wholesale Association. As usual, I ask members and witnesses to keep questions and answers as concise as possible, and we will get through as much as we can.

I will start with the first question. In the evidence that we have heard over the past few weeks, we have identified issues around Brexit and trade concerns, the global impact of Covid, and problems with labour and skills shortages. Does the panel agree that those are the key issues that are affecting our supply chain, or are other areas impacting on your businesses? I ask Ewan MacDonald-Russell to answer first.

A Westminster committee is looking at similar issues. I think that, last week, it reported that supermarkets were looking at narrowing the Christmas range that they offer. Rather than having gaps on shelves, which consumers might see, there would just be less variety on offer, so that supply chain issues do not look so obvious. Do you recognise that?

Does Jamie Halcro Johnston wish to come in?

I thank all three witnesses for the time that they have given us and for their expertise and evidence.

Dr Lee, would you like to respond to my question about what supply chain challenges your organisation is facing?

I move on to Colin Smith. As well as responding to the initial question, I ask him to talk about the written submission that we received, which I think also went to the Rural Affairs, Islands and Natural Environment Committee. In that, you raised your members’ financial and long-term viability concerns. Can you talk about those, as well as the key problems in the supply chain?

I have a final question, which I will put first to Colin Smith. Last week, our witnesses who represented freight and transportation expressed concerns about the changes to customs arrangements for goods from the EU from 1 January. Is your sector aware of that? Do you have any concerns about the changes that are coming up in the next month or so?

Under agenda item 3, the committee is invited to note the Diligence against Earnings (Variation) (Scotland) Regulations 2021. The regulations update the figures in part 3 of the Debtors (Scotland) Act 1987, which covers earnings arrestment. The Scottish Government has reviewed and updated the figures every three years since 2006. The Delegated Powers and Law Reform Committee considered the regulations on 23 November and no points were raised.

Are members content to note the regulations?

Members indicated agreement.