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We are not planning any changes to the remit and operations of Scottish Development International (SDI) beyond the internal restructuring that is already underway.

We are, however, raising the level of ambition for what SDI can do for Scotland. The Government Economic Strategy sets out how we will focus government and public services, including SDI, on creating a more successful country through increasing sustainable economic growth.

Ministers also routinely join SDI professionals during parliamentary recess, and for example, in supporting events such as Scotland Week, to help promote Scotland and Scottish companies.

Scottish Development International''s (SDI) work is formally supervised by a management board made up of the Director-General Economy (chair) in the Scottish Government and the chief executives of Scottish Enterprise and Highlands and Islands Enterprise.

Officials collaborate on areas of joint interest for SDI''s work with VisitScotland and EventScotland. There is potential for a stronger working relationship in the future as the Scottish Government''s international framework, published on 22 April 2008, makes clear that Scottish ministers wish to see closer co-ordination between the various bodies that promote Scotland''s interests overseas.

There are no current plans to increase Scottish Development International''s (SDI) overseas postings, co-location of offices and representation in other countries. SDI always seeks to align its staff resources with the extent of opportunity, and it regularly reviews this resource to ensure effective market coverage.

The process for appointing a new chief executive of Scottish Development International (SDI) is continuing. Scottish Government and Scottish Enterprise officials are in close and active discussion about next steps.

Ministers have defined their expectations of the role SDI and its new chief executive should play, but the appointment process is a matter for Scottish Government and Scottish Enterprise senior management, under the auspices of the Civil Service Commission.

Lena Wilson, the chief operating officer of Scottish Enterprise, is the acting chief executive of SDI. Under the current interim leadership team, SDI continues to deliver excellent results.

There are no plans to alter Scottish Development International''s (SDI) joint venture status so SDI''s working relationship with Scottish Enterprise and Highlands and Islands Enterprise remains unchanged.

SDI, VisitScotland and EventScotland already collaborate on areas of joint interest. There is potential for a stronger working relationship in the future, as the international framework, published on 22 April 2008, makes clear that Scottish ministers wish to see closer co-ordination between the various bodies that promote Scotland''s interests overseas.

The Scottish Government is the source of funding for Scottish Development International (SDI) irrespective of whether the funds flow through the Scottish Enterprise budget or the Government''s own budgets.  However, the division between these two funding channels in relation to the income SDI received in each of the last three years and is receiving in the current financial year is shown in the following tables. The indicative allocation SDI has been given by Scottish Enterprise for 2009-10 and 2010-2011 is the same as for 2008-09.

Operating Costs	2005-06 (£000)	2006-07 (£000)	2007-08 (£000)	2008-09 (£000)
Field Offices *	5,437	5,724	6,853	6,910
Scottish Operations +^>#	5,701	3,586	5,668	9,576
International Marketing >	2,322	4,846	5,518	5,100
Enterprise Salaries <	4,655	4,700	4,876	5,865
Executive/Government Salaries	1,672	1,683	1,682	1,680
Totals	18,115	18,856	22,915	27,451

 

Funding Sources	2005-06 (£000)	2006-07 (£000)	2007-08 (£000)	2008-09 (£000)
Scottish Enterprise	15,723	16,453	20,313	24,251
Scottish Executive/Government +#	2,392	2,403	2,602	3,200
Totals	18,115	18,856	22,915	27,451

Notes:

- Includes Scotland Europa.

+ - Includes Executive/Government contribution to Business Gateway International salaries of £720,000 per annum.

^ - Includes £3 million for regional activity from 2008-09.

> - In 2006-07, marketing spend moved from Scottish operations to international marketing.

< - Includes additional staff previously funded from LEC budgets, but transferred to SDI from 2008-09.

# - Includes £1 million (£200,000 in 2007-08 and £800,000 in 2008-09) from Government to support the higher education pilot.

It is not the Scottish Government''s policy to set targets for capacity from individual renewable energy technologies. However, a resource study in 2001 found that there is enough potential capacity from wave and tidal energy around Scotland''s coastline to meet our demand for electricity several times over. This suggests that marine energy can make a significant contribution towards achieving our renewables targets and we are working to help the sector maximise that contribution in as short a time frame as possible.

The Scottish Government aims to maximise the contribution of marine energy firstly through long-term market support, such as via the Renewables Obligation (Scotland).

Our £13 million Wave and Tidal Energy Support Scheme will help the development of a number of wave and tidal projects, and we will continue to support the European Marine Energy Centre in Orkney.

We will work to address major strategic issues, such as the provision, availability and affordability of grid capacity and subsea links both within and beyond the UK.

We have set out plans to establish a Marine Energy Policy Group, which will lead on actions relating to further environmental research, monitoring and the production of locational guidance for the marine renewables sector.

We will also continue our close dialogue with marine energy developers and key stakeholders to ensure that relevant issues are addressed as they arise and that our goals are being pursued in a sensible, joined-up manner.

The development of individual marine energy projects will enable the involvement of and input from local communities via the relevant consents process. We believe that communities should be able to invest in and benefit meaningfully from renewables projects in their areas. This is an issue for renewables more generally, and one which the Scottish Government is exploring closely, including the preparation of guidance which will help communities to gain maximum benefit from renewables projects.

The Scottish Government set out its plans for the marine energy sector in a Marine Energy Policy Statement, published in February and available on the Scottish Government website:

www.scotland.gov.uk/Topics/Business-Industry/Energy/19185/MEPS.

In addition, I will set out next month an overview of the Scottish Government''s approach to energy.