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.
All Official Reports of public meetings of committees.
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Public Audit Committee
Meeting date: 25 June 2025
Richard Leonard
This is bringing back lots of memories for me of meetings with the Scottish Grocers Federation, visiting glass manufacturers in Ayrshire and so on, but that was some time ago.
Stuart McMillan will now put some questions to you about the broader environment that you operate in.
Public Audit Committee
Meeting date: 25 June 2025
Richard Leonard
Good morning. I welcome everybody to the 21st meeting in 2025 of the Public Audit Committee.
Agenda item 1 is for the committee to decide whether to take items 3, 4 and 5 in private. Do we agree to take those items in private?
Members indicated agreement.
Public Audit Committee
Meeting date: 25 June 2025
Richard Leonard
The second item on our agenda is further consideration of the Auditor General for Scotland’s report on the Scottish National Investment Bank. I am pleased to welcome our two witnesses. We are joined by Al Denholm, the chief executive of the Scottish National Investment Bank, and alongside him is Willie Watt, who chairs the Scottish National Investment Bank.
We have some questions to put to both of you based on the Audit Scotland report. Before we get to our questions, Mr Watt, I invite you to give us a short opening statement.
Public Audit Committee
Meeting date: 25 June 2025
Richard Leonard
I have a couple of final questions to put to you. I will begin by tidying up a couple of issues that arose in the previous round of questions.
In response to the questions on remuneration arrangements, you mentioned that the remuneration committee had approved the long-term incentive plan and the mission contribution reward scheme. I presume that that also requires ministerial sign-off. Is that correct?
Public Audit Committee
Meeting date: 25 June 2025
Richard Leonard
Arguably, Mr Watt—I have found that the Treasury is not always right.
Public Audit Committee
Meeting date: 25 June 2025
Richard Leonard
It might be easier to change the law than it is to change the mind of the Treasury. [Laughter.]
Public Audit Committee
Meeting date: 25 June 2025
Richard Leonard
Thank you. On that final point, for the record, does the bank accept all of the report’s findings, and is it prepared to follow up on all the recommendations that are targeted at the bank?
Public Audit Committee
Meeting date: 25 June 2025
Richard Leonard
When the investment was announced, one eye-catching thing that we were told was that 60 per cent of it would be in Scotland, and the corollary of that is that 40 per cent would not be. Why is the Scottish National Investment Bank putting money into a fund that is not investing in Scotland?
Public Audit Committee
Meeting date: 25 June 2025
Richard Leonard
That is fine. If you have the opportunity to put something in writing to reflect any research that you have done in that area, that would be helpful for the committee.
Public Audit Committee
Meeting date: 25 June 2025
Richard Leonard
I will turn to the other end of the scale and ask about one of your below-threshold investments, which was in a construction company that is building houses in Shetland for key workers, to try to address the housing shortage. The report about that enterprise mentions that it is in the process of converting to be—it may already now be—employee owned. On the point about ownership structure, what the company looks like, its governance and so on, was that a positive additional reason for making the investment?