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Public Audit Committee [Draft]
Meeting date: 21 May 2025
Richard Leonard
Okay, so you have not done that yet.
You pledged to establish a transparency assurance panel to review the sensitivity status of material that is recorded in SCAD’s register of commercial advice. Have you established the transparency assurance panel?
Public Audit Committee [Draft]
Meeting date: 21 May 2025
Richard Leonard
The answer is not yet, is it not?
Public Audit Committee [Draft]
Meeting date: 21 May 2025
Richard Leonard
You also agreed to a recommendation that emanated from this committee’s work on the arrangements for ferries 801 and 802. The committee took evidence that suggested that there had been direction to the board of CMAL in the guise of shareholder authorisation. Is it correct that you have committed to publishing information about such instances, so that the Parliament will be notified when equivalent things happen in the future?
11:30Public Audit Committee [Draft]
Meeting date: 21 May 2025
Richard Leonard
That is fine.
I have one final question, which goes back to the GFG Alliance. You have alluded to proceedings that are currently under way around the specialist steel division, which is part of the GFG Alliance. The committee is also interested in a statement that the GFG Alliance put out in February this year, which was headed
“GFG reaches agreement with Greensill creditors on global debt settlement terms”.
Greensill, which was GFG’s financial backer, went into administration. Could you explain to us what that refinancing agreement means for the businesses that are owned by the GFG Alliance in Scotland?
Public Audit Committee [Draft]
Meeting date: 21 May 2025
Richard Leonard
Excellent. The next recommendation was on the establishment of
“An independent panel ... to provide challenge and review of proposed interventions.”
Have you established that?
Public Audit Committee [Draft]
Meeting date: 21 May 2025
Richard Leonard
I understand that.
The final recommendation—again, you alluded to this much earlier in this morning’s evidence session—that I want to put to you was about the establishment of
“a ‘Shareholder’ function with responsibility for managing ongoing interventions.”
I do not know whether, to all intents and purposes, that is the strategic commercial assets division’s—
Public Audit Committee [Draft]
Meeting date: 21 May 2025
Richard Leonard
What is the situation now? I refer to the comments of Mr Gupta, the executive chairman of the GFG Alliance, in his press release in February. He said that the agreement was a
“great relief ... It will enable us to push on from the deep challenges caused ... we are confident of being able to access longer-term financing to build on the significant investments we have already made”.
What does that mean for Lochaber, Motherwell or Clydebridge?
Public Audit Committee [Draft]
Meeting date: 21 May 2025
Richard Leonard
I will finish with this point. Earlier in the meeting, Mr Rhatigan, I think, said that he thought that the GFG Alliance arrangement in Lochaber meant that the Scottish Government had “big exposure”. The committee’s continuing interest in the fortunes and business performance of the GFG Alliance, with the Serious Fraud Office inquiries and all the other things that go along with that, lies in what exposure that places on the Scottish Government and Scottish public funds. We therefore retain a keen interest in this area.
On that note, I will have to draw this morning’s proceedings to a close. We have run quite a way over our anticipated time.
I thank our witnesses, Dermot Rhatigan, Colin Cook and director general Gregor Irwin, for their attendance and willingness to answer our questions. Thank you very much for your evidence this morning.
11:41 Meeting continued in private until 12:05.Public Audit Committee [Draft]
Meeting date: 21 May 2025
Richard Leonard
I will bring the deputy convener back in a little bit later, but Graham Simpson has some questions to put to you.
Public Audit Committee [Draft]
Meeting date: 21 May 2025
Richard Leonard
Good morning. I welcome everyone to the 16th meeting in 2025 of the Public Audit Committee. Agenda item 1 is for the committee to decide whether to take agenda items 3, 4 and 5 in private. Do we agree to do so?
Members indicated agreement.