All Official Reports of public meetings of committees.
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Economy and Fair Work Committee
Meeting date: 4 December 2024
Gordon MacDonald
Matt, we heard last week that the deals are only part of a long pipeline of construction worth about £14 billion to the Scottish economy. How difficult has it been for the Inverness and Highland deal to attract the skills and labour that you need in order to fulfil those projects?
Economy and Fair Work Committee
Meeting date: 4 December 2024
Gordon MacDonald
Thank you. The city deals are local growth deals. Is one of the things that you measure the circulation of that funding within the local economy? For example, are you using local, UK or international businesses? Susan Aitken, from what I could find, your report was the only one that had an indicator of how much local spending was. I think that it was about 34 per cent. Correct me if I am wrong.
Economy and Fair Work Committee
Meeting date: 4 December 2024
Gordon MacDonald
That would be helpful.
Economy and Fair Work Committee
Meeting date: 4 December 2024
Gordon MacDonald
Thank you. Matt Bailey, do you have your numbers for Inverness?
Economy and Fair Work Committee
Meeting date: 4 December 2024
Gordon MacDonald
Given the time constraints, I will pass back to the convener.
Economy and Fair Work Committee
Meeting date: 4 December 2024
Gordon MacDonald
Paul, I notice that a number of the projects that were under the Edinburgh city deal have had a 100 per cent drawdown of the public funds. Given the inflation situation, have you been able to attract funds from the private sector, universities and so on to make up that shortfall?
Economy and Fair Work Committee
Meeting date: 4 December 2024
Gordon MacDonald
What about the other deals? What proportion of local businesses have been able to bid successfully for contracts?
Economy and Fair Work Committee
Meeting date: 4 December 2024
Gordon MacDonald
I came in on time.
Economy and Fair Work Committee
Meeting date: 4 December 2024
Gordon MacDonald
Thank you very much, convener, and good morning.
We have already touched on part of what I want to ask about, which is cost pressures. Obviously, when the deals were proposed, as far back as 2014, nobody envisaged the level of both wage and material inflation that there has been—we heard about that last week. The buying power of the Glasgow deal, for instance, is probably down about a third from what was envisaged back in 2014.
How are you squaring that circle? You have talked about flexibility, but what does that mean in reality? Does it mean de-scoping projects? Does it mean projects not being in a position to provide the benefits that were originally envisaged? How do we square the circle of rampant inflation and pressure on the public purse?
Economy and Fair Work Committee
Meeting date: 4 December 2024
Gordon MacDonald
As you mentioned it, I will ask about the Winchburgh development. There is obviously a problem with funding the railway station. Is that on the part of the list that has disappeared as we move down it, or is it still on the horizon?