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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 18 June 2025
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Displaying 1071 contributions

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Economy and Fair Work Committee

Budget Scrutiny 2024-25

Meeting date: 31 January 2024

Neil Gray

The UK’s migration system works for one part of the UK, not for the whole of the UK. We need a much more flexible migration system that is tailored to the needs of the composite parts of the UK. Short of independence, that would be the right thing to do. It is possible in Canada, and it has been possible for us to have Scotland-only elements of the UK migration system, such as the supersponsor scheme for displaced Ukrainians, for which I previously had responsibility.

It blows my mind—it beggars belief—that the UK Government continues to have a one-size-fits-all migration system that means that Scotland is not able to attract the people from around the world whom we want to attract. Once again, I appeal to the UK Government to accept proposals such as the rural visa pilot, which has been proposed and is supported not just by the Scottish Government but by other parts of the UK as a way of ensuring that we have a flexible migration system that responds to the economic needs of the communities where we need to ensure that we have suitable labour market access and that our public services and businesses continue to thrive.

Economy and Fair Work Committee

Budget Scrutiny 2024-25

Meeting date: 31 January 2024

Neil Gray

That is belied by the fact that we have record levels of foreign direct investment and a foreign direct investment growth rate that outstrips that for the rest of the UK and for Europe. I repeat that, in every year for the past 20 years, Scotland has had net inward migration from the rest of the UK. Perhaps some of the people who arrive in other parts of the UK choose to move to Scotland.

Economy and Fair Work Committee

Budget Scrutiny 2024-25

Meeting date: 31 January 2024

Neil Gray

I thank Maggie Chapman for those questions. It is true to say that our employability funding has had to reduce this year to £90 million. We are confident that, working with our regional economic partnerships and local employability partnerships, we can continue to see the provision of strong employability support that is person-centred and focused on ensuring that we continue to close the disability employment gap and do all that we can to work in a collaborative approach with third sector partners. In Dundee, for example, I was able to see evidence of a group of, I think, eight different third sector partners that came together to provide an employability service that was truly person-centred, because each of those third sector partners represents a different interest group and specialist group for disability services, mental health support and other elements. I have been incredibly impressed by the work that has been done.

I am keen that we do all that we can to continue to support that work and that participation continues to be voluntary. We are seeing both anecdotal and clear evidence that such work is making a real difference and that not having a mandating and sanctioning regime as part of it is making a discernible impact on people’s willingness to engage, and to engage for a longer period. We are seeing strong results off the back of that work.

We will continue to assess the positive and the potential negative impact that our spending decisions have in areas such as employability. Obviously, I am keen to ensure that the committee is furnished with further information as those assessments are carried out.

Economy and Fair Work Committee

Budget Scrutiny 2024-25

Meeting date: 31 January 2024

Neil Gray

Yes, to answer Maggie Chapman’s question directly. We had a discussion—not in this committee room but in another—with cabinet secretaries and the Deputy First Minister, as Maggie Chapman would expect, looking at our fairer Scotland duties and ensuring that the decisions that we were taking were cognisant of those duties and informed by them. We had discussions in relation to this and other portfolios, considering our impact on child poverty and other elements. Those discussions were part of the decision-making process, yes.

Economy and Fair Work Committee

Budget Scrutiny 2024-25

Meeting date: 31 January 2024

Neil Gray

The first thing to say is that, in Scotland, we have near record-low levels of unemployment at 3.8 per cent compared with 4.2 per cent for the rest of the UK. Again, I am not complacent about that, and it brings its own challenges for employers, including on skills and access to labour. It is important that we continue to assess the skills landscape, which is what Graeme Dey is doing in response to the Withers review, in order to ensure that we have a skills system that is as responsive as possible to the needs of employers and the needs of those who want to enter the employment market for the first time or want to transition within the labour market and move on, such as in the energy sector. We will continue to focus on that area. Graeme Dey is obviously very exercised and is going round the employer networks, the skills sector and others to ensure that our response to Withers is as informed as possible and that we come forward with a landscape that will be as supportive as possible for those who are seeking access to skilled employees and for those who are looking to retrain.

10:15  

Economy and Fair Work Committee

Budget Scrutiny 2024-25

Meeting date: 31 January 2024

Neil Gray

Employability will, obviously, be a shared responsibility between Mr Dey and me, but the Government is making increased investments in the college, university and school sectors. There is, I think, an increase of £158 million in further and higher education through this budget. I will need to get that checked. We are continuing to invest in the skills system to ensure that we are meeting the needs of not only those who need to get on in work but those who are looking to access the labour market.

Economy and Fair Work Committee

Budget Scrutiny 2024-25

Meeting date: 31 January 2024

Neil Gray

I thank Mr Stewart for that and for highlighting the good work of the business in his constituency.

I was in the north-east—in Aberdeen—with the First Minister for the launch of Scottish Enterprise’s new corporate plan, which is focused on three key priorities, one of which is inspiring innovation. Its investment decisions are filtered through those lenses, one of which is around inspiring continued innovation. We continue to expand through the budget the likes of the Techscaler network, which is about providing the ecosystem that ensures that new business start-ups are able to establish. We also continue to support the likes of SNIB and others that provide some of the early stage investment, but there are other opportunities and areas regarding early stage investment opportunities in Scotland on which I am happy to follow up in writing.

That last thing that I would say is that, particularly in the energy space, we are cognisant of the fact that we need to plot a path and set a direction of travel for what we are looking to focus our public sector funding on, not just for the new renewable energy supply chain—the offshore wind supply chain—that we are looking to see established in Scotland, but for the catalytic impact that those investments can have in leveraging private investment. That is why the green industrial strategy that we will publish before the summer will be so important. It will take decisions and will say that we will prioritise certain sectors. In some cases, that will mean that some people are not happy, but we will take decisions on the basis of the evidence that we have received from our engagement and the support that we have received from the likes of the First Minister’s investor panel.

As Mr Stewart will understand, when we talk about innovation and early stage investment support, a risk is attached. We have to accept that there will be an element of risk. Some innovations will flourish and the businesses will do incredibly well, and we want to see that in Scotland. Others, in some cases, will not do as well, but I want to make sure that we have an ecosystem that supports innovation, where new businesses can establish and which attracts further capital from private sector investment. We are already seeing the early stages of that good work come through, but I want to see more.

Economy and Fair Work Committee

Budget Scrutiny 2024-25

Meeting date: 31 January 2024

Neil Gray

No, not particularly. As I have said, I would point to the work that is being done by Scottish Enterprise on the priorities that it is taking forward to ensure that we take greatest advantage of the greatest economic opportunity that we have before us, which is our energy transition—that is, the just transition.

There is obviously a climate imperative: we need to ensure that we tackle climate change. However, although we have clear responsibilities in that respect, it also represents our greatest economic opportunity. Indeed, we know as much from the investor panel’s recommendations, which point to the fact that Scotland itself provides the greatest opportunity for us to leverage private capital.

I will bring in Colin Cook to provide greater detail.

Economy and Fair Work Committee

Budget Scrutiny 2024-25

Meeting date: 31 January 2024

Neil Gray

I have not had that communicated to me, no.

Economy and Fair Work Committee

Budget Scrutiny 2024-25

Meeting date: 31 January 2024

Neil Gray

Efficiency will obviously be important to public sector reform, but we are not looking at public sector reform purely on the basis of reductions in spending. That process is being led by the Deputy First Minister, and we have embarked on ensuring that our business support landscape is as efficient as possible, which will include looking at the work that is done by Business Gateway and our enterprise agencies, and at the role of our regional economic partnerships, to ensure that we have a clear business support landscape that responds to the needs of business and which allows people, depending on which part of their journey they are on, their location or the sector that they are in, to understand which door to turn to in order to receive the support that they need.

I have had early discussions with the Convention of Scottish Local Authorities, which has responsibility for Business Gateway, and with other parties to ensure that the public sector reform piece that comes forward meets those ambitions and aligns with the direction of travel that we have given to our enterprise agencies. I would point again to the corporate plan that Scottish Enterprise has published, which will ensure that it focuses on the key priority areas and that those areas are aligned with our priorities for the national strategy for economic transformation—of which, as I mentioned in my opening remarks, we are undertaking a refresh to ensure that we are focused and that we prioritise those actions across the 10-year plan.