The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
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Displaying 3032 contributions
Public Audit Committee [Draft]
Meeting date: 4 June 2025
Colin Beattie
Given what you have said, and given that your report confirms that the college acknowledges that the transactions “should have been reported” and that they were not, did the college give any reason why the absence of a contract had not been reported?
Public Audit Committee [Draft]
Meeting date: 4 June 2025
Colin Beattie
It might be useful for the committee to see it.
Public Audit Committee [Draft]
Meeting date: 28 May 2025
Colin Beattie
I will begin with a simple question about paragraph 35, which says:
“The Bank’s ambitions extend to taking on a more active role in the private investment market.”
You write about “engagement” and “advice”, which I presume means giving advice, and about “investment arrangement activity” and “management of third-party capital”. Fairly wide-ranging skills are necessary to be able to do that. I have worked in investment banking and each of those areas is highly specialised. How will the bank bring together all the expertise to be able to support that ambition and how will that be balanced with its key role, as agreed with the Scottish Government?
Public Audit Committee [Draft]
Meeting date: 28 May 2025
Colin Beattie
I have one final point, on which you might be able to provide clarity. The bank receives an allocation for year 1, but drawdowns happen over a period that crosses the annual budgeting period. Therefore, I presume that there are mechanisms in place to ensure that any unallocated capital issued in year 1 can roll over to year 2.
Public Audit Committee [Draft]
Meeting date: 28 May 2025
Colin Beattie
Financial transactions are not part of the block grant. They have to be repaid, and the obligation to make the repayments is on the Scottish Government. Is there a back-to-back agreement with SNIB in connection with that?
Public Audit Committee [Draft]
Meeting date: 28 May 2025
Colin Beattie
Factually, you are absolutely right, convener. Mr Denholm has announced publicly his intention to retire, and I understand that the bank is making arrangements to recruit a new chief executive and has stated that Mr Denholm will remain with the bank in an advisory capacity into 2026, to support transition handover arrangements. If that is consistent with a smooth handover and the transfer of knowledge, and if the bank has the financial resources to allow for those arrangements, that feels appropriate.
On the issue of the turnover, it is perhaps inevitable that there will be a change of leadership in a new organisation that is establishing itself. More generally in the public sector, change and turnover—recruiting and retaining people in senior leadership roles—is challenging for public bodies, as we have commented to the committee in relation to the NHS. I have no further insight into the specifics of the turnover and can refer only to the bank’s public statements—which, I am sure, the committee has seen—about why there has been a change of leadership.
Public Audit Committee [Draft]
Meeting date: 28 May 2025
Colin Beattie
I will move on to my final question, the subject of which has been touched on already. Because annual budget rules affect the bank’s ability to plan long term, any investments that are made are not for the long term; I note, however, that part of the bank’s responsibility is to provide patient capital. Can you tell us a little bit more about how the accounting rules impact on the bank’s ability to plan long term? Are you aware of engagement between the bank’s leaders and Scottish ministers on providing increased flexibility? After all, it is difficult for a bank to operate within such rigid rules.
Public Audit Committee [Draft]
Meeting date: 28 May 2025
Colin Beattie
What happens if the asset becomes impaired?
Public Audit Committee [Draft]
Meeting date: 28 May 2025
Colin Beattie
Given that the whole purpose of the Scottish National Investment Bank is to take on higher-risk assets, the risk that it will end up with impaired assets will be higher. That is part of its job.
Public Audit Committee [Draft]
Meeting date: 28 May 2025
Colin Beattie
What are the implications of that? Financial transactions have to be repaid, and that obligation is on the Scottish Government and not necessarily on SNIB, unless there is a back-to-back agreement on that. It is likely that, as those transactions come to maturity, that will, in effect, reduce SNIB’s capital, because it will have to return the money to the Scottish Government, which will have an impact on future investment. Given that it has been receiving financial transactions for a number of years, the cumulative effect of those payments down the line could be quite significant.