Seòmar agus comataidhean

You do not think that there are any issues with transparency when HES provides a one-line answer that does not go into the detail of the answer that you just gave me.

Good morning, Sir Mark and Mr Davis. First, I reiterate other members’ acknowledgement of the fact that you are new to your role, Sir Mark. I, too, wish you well with resolving the very many issues that there are in the organisation. However, I also make clear that I think that we need to see decisive action being taken quickly to resolve those issues.

I will follow on from Mr Harvie’s point about responding to media reports. Our Scottish Parliament information centre briefing today helpfully points out that:

“There have been a range of media reports that have highlighted concerns over governance issues and the internal culture at HES. At the time of writing, HES has not published a formal response or statement on any of these issues on the News section of its website.”

Given everything that has been in the public domain and all the issues and allegations, why is that the case? Why has an organisation that is facing so many allegations, concerns and issues not published on its website a response to the very many issues that have been raised? Is that a deliberate strategy? What does it say about the culture of HES that no response to any of the allegations has been put on the website?

But there is nothing on the website.

Thank you.

One of the issues that I will come back to in a minute is the need for openness and transparency, and the need to address the very many issues that there are. As has been said, we have seen allegations of racism and other impropriety, concerns about financial mismanagement, and concerns about a culture of fear, a culture of spin and a culture of secrecy. We have used the word “culture” a lot, and it is clear to me that we need a review of the culture in HES, which, as Mr Kerr said, should be an independent review.

You mentioned earlier that a culture review would not take place until the individual processes were resolved. When do you expect those processes to be resolved?

Good morning, Mr Maxwell. I see that Calvin Harris is doing a concert in the summer at Hampden park. That was announced yesterday. It is great news.

The next couple of months—okay.

Now that there is an intervention from Audit Scotland, which is doing its section 22 report, and Parliament is asking questions, do you not think that HES should be ordering its own independent culture review?

I have a couple of follow-up questions on that. My understanding was that a presentation was given to senior managers in August of this year referencing that 2 per cent increase and the 3 per cent increase in public sector pay policy. When I asked that question and we got a follow-up letter, why did we not get the response that you just gave me? Why did the committee just get a one-liner that said, “We always adhered to the 3 per cent policy,” and which did not talk about the financial strategy being 2 per cent—

Thank you.

Well, I certainly cannot say why that happened.

I am here to ask questions on behalf of the committee. My original question was about financial management and financial strategies. Clearly, budgeting for 2 per cent and increasing it to 3 per cent suggests that the financial strategy that was in place was not sufficient, because the budget had to be increased to 3 per cent. That was my original question.

My subsequent question today is that there are not only financial management issues in that regard but transparency issues. Parliament is asking questions about the financial strategy and public sector pay, yet we are given one-line answers that do not go into what was clearly an increase in the budget in line with public sector pay policy, which was not originally budgeted for. You may not be able to comment on the specifics, but clearly there are concerns about financial management and transparency within the organisation. Would you agree?

When you are trying to find a solution to any problem, you need to understand that problem first. I think that having that culture review and addressing the issues needs to happen as soon as possible.

I want to go back to the issue of transparency. This very much relates to the Parliament and scrutiny by the Parliament. In September, I put a question to Alison Turnbull from HES. I asked:

“I understand that, in June 2024, HES budgeted for a 2 per cent increase in pay despite the Scottish Government having set out a public sector pay policy just two months before that suggested an increase of 3 per cent in the public sector. Is that correct? Is that your understanding? What does it say about your organisation’s financial planning if it is not adhering to the Scottish Government’s pay policy?”

The response was:

“We do adhere to the Scottish Government’s pay policy. I am not aware of the instance that you mention. We will get back to you on that.”—[Official Report, Constitution, Europe, External Affairs and Culture Committee, 11 September 2025; c 29.]

HES sent a letter after the meeting and gave us a one-line response on that. It said

“For 2025-26 HES budgeted a 3 per cent annual cost of living pay increase in line with Scottish Government pay policy.”

That may predate your time, Sir Mark. Mr Davis, did HES at any point budget for a 2 per cent pay increase in 2025-26?