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The solutions to that lie in other schemes and all the work that we are doing with various sectors. There are obviously incentives for decarbonisation in the business support and procurement landscape in Scotland. We are working on a green industrial strategy and there will also be incentives in that. There is incentivisation across the piece of what the Scottish Government puts forward, particularly with our enterprise agencies.

This particular instrument, to my mind and my interpretation, is about keeping the manufacturing and energy intensive industries going and taking away one of the pressures on them, particularly given the global landscape of fluctuating energy prices that at the moment are outwith our control. As we look to the future and have more renewable electricity, in particular, in Scotland, those pressures will decrease.

No, I will not take that chance. I think that I have said everything that I need to say. Thank you.

The 100 per cent exemption will reduce eligible energy intensive industries’ electricity costs by between £5 per megawatt hour and £7 per megawatt hour. That will amount to quite a substantial sum if you think about the huge amount of fuel that is used by those particular industries. [Gillian Martin has corrected this contribution. See end of report.]

We are following UK legislation. If we did not follow it, what might be the effect of that on Scottish energy intensive industries? I imagine—and Mr Lumsden would be the first to be critical of this—that they might look at a situation where there is a 100 per cent exemption in the rest of the UK but only an 85 per cent exemption in Scotland, and they might decide to relocate their operations. I imagine that Mr Lumsden would join me in being concerned about that. That is why we are agreeing to the UK legislation.

I never think that it is particularly fair when householders have to shoulder any kind of burden. I suggest that the review of the energy markets is far more critical in that regard. I look forward to Douglas Lumsden joining with me in asking for protections for consumers, particularly things such as a social tariff, which would mean that vulnerable consumers would be protected from any price increases. In my view, that would be far more effective and far fairer than 80p or £1.10 being added to a bill to save highly skilled manufacturing jobs in Scotland.

Gillian Martin has identified errors in her contribution and provided the following corrections.

At col 3, paragraph 6—

Original text—

There is concern that, if we do not make the exemption for energy intensive industries, particularly in the high fuel price situation that we have at the moment

Corrected text—

There is concern that, if we do not make the exemption for energy intensive industries, particularly in the high electricity price situation that we have at the moment

At col 4, paragraph 1—

Original text—

That will amount to quite a substantial sum if you think about the huge amount of fuel that is used by those particular industries.

Corrected text—

That will amount to quite a substantial sum if you think about the huge amount of electricity that is used by those particular industries.

At col 5, paragraph 1—

Original text—

but this particular exemption is about large manufacturers that are particularly affected by inflation and high fuel costs

Corrected text—

but this particular exemption is about large manufacturers that are particularly affected by inflation and high electricity costs

I have some figures here.

I will mention domestic fuel bills, because obviously the exemption is recouped. The measure will have very little impact on domestic fuel bills.

I will have a look for the figures.

I will need to check my notes on that, Ms Boyack. I do not think that I have that information to hand. Obviously, you are making a decision today. If we can find that information we will provide it to the committee.

The industries that are involved have already been set and the amendment will not allow any others to come into the scheme. They are already agreed and set. The exemption was 85 per cent and it will now be 100 per cent. We have seen in the last couple of years that particular energy intensive industries have found it quite difficult to keep employing people and to keep operations from losing money.

It adds a very small amount. It is important to mention, Mr Lumsden, that this will be across the UK. Households typically account for about 40 per cent of renewables obligation costs recovered by suppliers. The average cost is currently about £77.50 per year on an electricity bill. The exemption is likely to cost just an extra pound or two.

We do not want a situation where household bills are affected by things like that, but I think the reason behind this is that there is an awful lot more at stake if we do not have an exemption. The particular sectors that are affected by this employ a large number of people, not just in Scotland but throughout the UK, particularly in manufacturing.

The UK Government has decided to increase the exemption to 100 per cent. It has historically been the case that the Scottish Government has not gone on a different path and we too want to stay on the path and have agreed to act alongside the UK Government.

Also, we do not want carbon leakage. If we have a landscape in the UK or Scotland where it is increasingly unprofitable for those industries to exist, the chances are that they will go elsewhere. It will be not just carbon leakage but economic leakage. This is a way in which we can protect those industries from their overheads being so onerous that they might have to think about taking their operations elsewhere.