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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 20 June 2025
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Displaying 1071 contributions

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Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Neil Gray

We have been given some warning that the potential date for the refinery closure is quarter 2 in 2025. That is helpful for the work that we are doing on the just transition plan, as it allows us to ensure that the plan is tailored. It also means that, through the work that we are doing with the joint venture, the other businesses involved in Grangemouth and other interested parties, including the local authority concerned—which I met last week—we can ensure that we do everything that we can to bring forward a just transition plan that gives people confidence about the opportunities that will be available in and around Grangemouth.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Neil Gray

Obviously, we have an assessment and understanding, based on previous studies, of where oil is currently imported from. As you would expect, we do not have a huge amount of control over the commercial decisions that are taken on where to source it from. Mr Hardie said earlier this morning that Petroineos wants to ensure that it sources products from places that meet international standards. I assume that that includes health and safety as well as the standards on the production of the products.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Neil Gray

That is fine.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Neil Gray

I do not want to set up unrealistic expectations. Previous interventions to extend the capacity of the refinery were made when the international perspective and domestic demand were different. Alongside my colleagues in the UK Government, I want to explore every single possible opportunity to extend the life of the refinery. I think that Mr Kerr would expect that of both parties. However, I do not want to make false promises about what might be possible; I just want to demonstrate to Mr Kerr’s regional constituents, and to others more widely, that we are doing everything possible.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Neil Gray

I have not disputed that. It is the timing that is still uncertain.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

To be clear, the strategic asset is not just the passenger airport but the wider site.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

We continue to invite people to come forward with expressions of interest. If the market is not there, the market is not there. However, the commercial position of the airport is strong. A note of interest came earlier this year, which was not followed through for the reasons that have been set out. Before Covid, there was a strong expression of interest that, were it not for the advent of Covid, probably would have seen the business return to the private sector. That demonstrates that, in my mind, I do not need to have a particular concern, as Mr Smyth seems to have, about the long-term future of the airport.

We will continue to take seriously any expressions of interest that come forward and ensure that we are able to maximise the return from an economic and financial perspective and in value for the local area. We will obviously be pragmatic in seeking to achieve as much as possible without hindering a process that can see the airport’s return to the private sector.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

That is the status quo, and we do not need to shift from that. As I have said, we are not a distressed seller. The airport is in a good position, and it has good plans to continue to grow. I am not concerned at the position that we have with regard to Glasgow Prestwick airport.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

Potentially—I would not rule that out. It clearly depends on the expressions of interest that come forward. The previous panel set out some of those that have come through down the years. As I said in my opening statement, we are not a distressed seller. The airport is an asset. It is profitable, doing incredibly well and having a positive impact on the local economy. That said, our strategy and overall objective is to return the airport to the commercial sector, but we will do so only when the time and the deal are right for the public purse and the local area.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Neil Gray

Good morning, colleagues. I welcome the opportunity to appear before the committee today.

First, I remind the committee that non-disclosure agreements are in place between Glasgow Prestwick airport and parties that are responsible for a recent expression of interest in purchasing the airport. As I set out when accepting an invitation to appear at committee today, those agreements mean that I am unable to share any additional information concerning that expression of interest, but I will try to discuss the situation as best I can.

In 2013, Scottish ministers intervened to secure the future of Glasgow Prestwick airport. That vital asset to Scotland’s economy would have ceased to operate without our intervention. The airport is at the heart of a growing aerospace cluster in South Ayrshire, delivering high-quality jobs and supporting economic growth across the region.

The airport continues to be vital to our economy, providing global connectivity that businesses throughout Scotland rely on. Our intervention has secured not only the future of 330 employees whom the airport directly employs but the future of many more jobs across Ayrshire. Scottish ministers remain committed to supporting our investment in the airport.

The board of directors and senior leadership team of Glasgow Prestwick airport have worked diligently to put the business on a sound footing following a turbulent period of private ownership. The commitment, professionalism and experience of the management team and employees across the business has helped the airport not only to survive but to thrive.

This year’s accounts, which were published on 20 November, show that the focus on the diversified nature of its operations has created a stronger business model for the airport, allowing it to adapt to the ever-evolving aviation industry. I look forward to seeing that positive progress continue.

I was pleased to take the opportunity to visit Prestwick last month. I spent the morning touring the airport facilities and meeting a number of people who work for the business. I was particularly impressed by the extensive plans that have been drawn up to improve airside facilities, reduce the airport’s carbon impact and further bolster the airport’s unique offering in the marketplace.

I was also encouraged to hear about the on-going collaborative work with Ayrshire College to address the shortage of skilled employees in the sector. It is clear that the Glasgow Prestwick airport’s senior leadership team has left no stone unturned in order to ensure that the business is best equipped to meet the challenges of the future.

As committee members are aware, the board of the airport received an inquiry in March 2023 expressing an interest in acquiring the airport. The board carefully considered the expression of interest and has confirmed that it would not be appropriate to go further.

I wrote to the committee on 14 September 2023 to explain that I had accepted the board’s recommendation that the expression of interest did not present a compelling business case and did not demonstrate the credibility or the aviation and airport experience to deliver a sustainable future for Glasgow Prestwick airport. However, I reiterate that our door remains open to expressions of interest and that we will carefully consider any suitable offer from credible parties.

Since our acquisition of the airport, we have been clear that it is our intention to return it to the private sector at the appropriate time and opportunity. That position has not changed, nor has our commitment to securing a long-term future for the business.

I have asked my officials to review all options for the future of the airport, including its return to the private sector and the best means by which to achieve that objective when the circumstances are right. As you would expect, my officials have commissioned expert legal and commercial advice, which will inform the options that are taken forward for consideration.

We wish to secure a sustainable future for the business that recognises not only the commercial value in the business but the wider contribution that it makes to the local and regional economies that it serves.

We wish to return the business to the private sector. However, we are not a distressed seller. If the time and circumstances are not right to achieve a sale on the best possible terms for ministers and taxpayers, we are confident that the airport will continue to flourish under our ownership. I look forward to discussing that future with the committee this morning.