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Let me rephrase that question. When the Scottish Government says that it is not going to fund munitions, are you clear what that means?

That is a very diplomatic answer, thank you.

I want to ask about your accounts. I was having a look at your most recent accounts for the period to March 2025, which were published in June, I think. In that period, you wrote off balances to a total of just over £31 million. It was reported in June that another enterprise in which you had made investments valued at £20.2 million had notified you that there is a risk that that might be written off. I absolutely understand that when you make investments there is always a risk that some of them might not be successful, but that strikes me as quite a high percentage compared to your overall level of investments. Do you think that that is a reasonable sum to be writing off in the context of the total investments that you make?

On the housing issue, I have been talking to SSE, and I believe that it is investing in housing because it realises that there is no point in it creating vacancies if there is nowhere for potential employees to live. I appreciate that a lot of house building goes on in the inner Moray Firth area, but what more can be done to encourage house building in the west Highlands, where a lot of that investment will be going?

Good morning. I have one set of questions for HIE. There is nobody on the committee who represents the Highlands and Islands, so, as I think that I am the closest thing to a Highlander here, I wanted to ask you a little bit about some of the broader issues you touched on earlier.

Clearly this is a time of great economic opportunity for the Highlands. We see the development of a freeport to Cromarty, renewable energy projects and a growth in tourism. That is all good news, but that development comes with challenges, particularly around infrastructure. There will be a need for more housing and for investment in transport infrastructure. I was talking to SSE recently about the proposed pump storage scheme at Coire Glas in the west Highlands. That will lead to an enormous amount of materials being transported in and out, which will put huge pressure on roads such as the A9 and the A82.

I am interested to get Highlands and Islands Enterprise’s perspective on issues such as upgrading the A9—an issue dear to my heart—and, more broadly, what other infrastructure improvements we need if we are going to capitalise on that economic opportunity.

Good morning. I have some follow-up questions specifically on the visitor levy, but I will start off with a slightly broader question.

We have had a very busy summer in Edinburgh. At one point, when we had the confluence of the festival and the weekend Oasis concerts, Edinburgh was the most expensive destination in the world. So, we have a lot of conversations about what people call overtourism. I do not represent Edinburgh; I represent Mid Scotland and Fife—Perth and Kinross, Clackmannanshire, Stirling and Fife. People in my area get very annoyed when they hear the term “overtourism”, because they say, “We need more tourists, not fewer tourists.” The only place in the region that I represent where I ever hear any concerns about visitor numbers being too great is St Andrews, at the height of the summer. Everybody else says, “Give us more visitors.”

I will start with David Hope-Jones, because he represents the south of Scotland, so he will have an interest in this issue. Do you think that there is a danger of our debate on tourism getting skewed by the fact that people look at hotspots such as Edinburgh and Skye and think that everything is tremendous, whereas the rest of the country could do with a lot more visitors?

Good morning, panel. I am not going to repeat all the questions that I asked the first panel, but I have a few specific items I would like to follow up.

I will start with Malcolm Macleod. I was interested in what you had to say about the detailed economic impact assessment that you are now doing in the Highlands, which suggests that that was not part of the original work that you did.

Could you tell us a little bit more about how the assessment is being done? Specifically, given that, as you said, you cover a third of the landmass of Scotland, are you looking at differential impacts in different parts of the Highlands? Would it be possible for Highland Council to look at bringing in a visitor levy only in certain parts of the Highlands as opposed bringing it in everywhere?

For example, you could apply the visitor levy at certain times of the year and not at other times.

Thank you. Perhaps I could put that same point to Paul Lawrence or Elin Williamson from Edinburgh. In one of your previous answers, Paul, you were almost hinting that although Edinburgh was content with a percentage, allowing others to have a flat fee might be the way forward.

Thank you very much.

I have one more question on the same territory. It is for VisitScotland, so it is for either Cat Leaver or Rob Dickson—whoever wants to answer it. It is specifically about economic assessment. In your written submission, you say:

“Before considering a levy, a local authority should examine the profile of their visitors—whether largely domestic or international—and the potential impact of a levy on businesses and visitors within the current economic and competitive travel landscape. Local authorities should also consider the potential impacts of a levy on factors such as price competitiveness and quality, visitor demand, occupancy and seasonality.”

That is a very clear statement of where VisitScotland is.

Given that, would you expect local authorities to be doing an economic assessment of the sort that Malcolm Macleod talked about, which Highland Council is now doing? Before introducing the levy, we would have a full picture, as opposed to the situation that I outlined earlier, where, for example, in Perth and Kinross, the levy is being presented in some quarters as, “This is something that could raise £9 million for the council. It is free money. What is not to like about all this cash coming in?” However, that does not look at the other side of the equation, which is to ask whether, if the levy is introduced, there will be a negative impact on visitor numbers.

I am done. Thank you.