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On the issue of levelling up, we took evidence from Professor Fothergill last week. He highlighted that very point and questioned how you could have a levelling-up strategy without an assisted-areas map. That is not specified in the bill. Does the Scottish Government share the view that provision for an assisted-areas map be specified in the bill? COSLA has suggested a new clause 7 in the bill to define an assisted area. As you said, that concept existed in EU state aid.

During the bill’s passage in the UK Parliament, particularly at committee stage, Labour has highlighted the key issue of the lack of a preferential system for support to disadvantaged regions. How should targeting areas of economic deprivation be reflected in the bill?

That is very helpful. I have not seen an indication that any other member of the panel wants to comment on that, so I will move on to my second question.

In its written evidence to the committee, Highlands and Islands Enterprise expresses concerns about how far and at what scale internal market displacement assessments will be needed, because there could be a detrimental impact on smaller community-based projects. South of Scotland Enterprise highlights that the current regime makes it easy to confirm an award as being non-aid but says that the proposals in the bill, and especially principle 7, make a non-subsidy conclusion less likely unless the project is clearly not commercial. The vast majority of projects will be commercial.

What impact could the new regime have on funding for smaller-scale innovative community-based projects? I ask Councillor Heddle to comment, given his experience in the Highlands. If any other member of the panel wants to comment, I ask them to indicate that in the chat function.

Good morning. I want to return to the sixth principle in schedule 1 to the bill, which is about competition and investment in the UK, and ask you about clause 18, which prohibits relocation being a condition of a subsidy.

I represent South Scotland. My region contains many businesses that are close to the Scotland and England border, and it is also the gateway to Northern Ireland, so it is not uncommon for businesses to relocate premises on the other side of the border, just a few miles away. As I said, clause 18 prohibits relocation being a condition of a subsidy. What are your views on the extent to which that clause and the sixth principle could have a specific impact on businesses and support agencies that are close to the border?

I put the question to Mr Peretz, as he touches on the matter in his written evidence. If any other member of the panel wishes to comment, I ask them to indicate that in the chat function.

Thank you convener—I know that you were just making sure that I was paying attention.

Is there a way in which we can stimulate manufacturing in Scotland by having clear targets for the substantial procurement that the public sector—everything from local authorities to the national health service—is involved in? Is that one way to build that stronger manufacturing base?

Nick Shields, based on your work, if we had clear targets for local procurement contracts, would the sector be geared up to adapt to that?

The witnesses have touched on a few issues, and I have mentioned procurement targets, but would you like the Scottish Government to pursue any other policy initiatives that have not been mentioned in order to tackle our supply chain challenges?

That is very interesting. You touched on skills and perceptions, but what are the other reasons why we have missed the boat on manufacturing? Denmark is far ahead of us on offshore turbines, for example. What did we fail to do? What lessons do we need to learn from that?

Do you have any idea why that unnamed roof tile manufacturer in Stirling is not producing the tiles? Has it been taken by surprise by all the factors such as the pandemic?

What needs to be done to get them to do that? Is setting up those manufacturing bases to do with access to Government support? Are you aware of any barriers that businesses that supply your business face in achieving that? Are they not getting grants from the Government to do that, or has that simply not been on the radar so far?