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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 18 October 2025
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Displaying 978 contributions

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Economy and Fair Work Committee [Draft]

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

That is understood. With that, I will hand over to Lorna Slater.

Economy and Fair Work Committee [Draft]

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

I want to ask a brief supplementary about write-offs. Typically, early-stage investors will have a rule of thumb that they follow—a hit rate of, say, one in 10 or something like that. Do you have a benchmark that you use for your success rate with early-stage investments and, conversely, your write-offs? Is the level of write-off in line with that target? As you say, in some ways, too few write-offs might mean that you are not taking enough risk.

Economy and Fair Work Committee [Draft]

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

That would be very helpful. Thank you. I will bring in Gordon MacDonald.

Economy and Fair Work Committee [Draft]

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

On page 15 of your annual report, you state that the average increase in turnover from the grant awards that you make is £1.5 million and the average increase in profitability is £521,000. How do you prove that that would not have happened without your support and intervention?

Economy and Fair Work Committee [Draft]

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

Thank you. I now have some questions for Highlands and Islands Enterprise. I note that you have not yet published an annual report. Last year, you published your annual report on 9 December, which was five days after the Scottish budget was published. Why is your annual report published so late in the year? It makes it somewhat difficult for us to examine your financial performance if you have not published one.

Economy and Fair Work Committee [Draft]

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

I have been looking at each of the enterprise agencies to try to understand the proportion of their budget that they spend on operational costs versus the proportion that they get out the door. My reading of your accounts is that you spend about £20.8 billion—or, rather, £20.8 million—on staff costs. Sorry, I just added several zeroes to your budget—I would not get too excited.

That is a much lower proportion than the other two agencies. Can you clarify what proportion of your budget goes on grants and direct business support and what proportion goes on management? Am I right in my reading of the £20.8 million figure? That is from last year’s annual report.

Economy and Fair Work Committee [Draft]

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

If you were able to provide a summary of that, that would be useful.

I have one last question before I hand over to colleagues. Your written submission states that the average increase in productivity achieved was 54 per cent. That strikes me as very high. I am also curious because you state that the average wage of the supported jobs was £30,600. That is only £1,000 more than the average wage for the whole of Scotland. It strikes me that there is a bit of a mismatch between the claimed productivity increase and the wages for those in projects that you are supporting.

11:30  

Economy and Fair Work Committee [Draft]

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

The figure is high to the point that I feel that it is untrustworthy; businesses achieving a 50 per cent increase in productivity would be world famous.

Economy and Fair Work Committee [Draft]

Decision on Taking Business in Private

Meeting date: 17 September 2025

Daniel Johnson

Good morning, and welcome to the 25th meeting in 2025 of the Economy and Fair Work Committee. Do committee members agree to take in private, under agenda item 3 of this meeting and in future meetings, discussion of our pre-budget evidence?

Members indicated agreement.

Economy and Fair Work Committee [Draft]

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

Those are all indirect outcomes and benefits. Do you have a clear analysis of direct benefits—in other words, projects that Scottish Enterprise wholly or partly funded and the results that they achieved? Are those benefits reported in your annual report? I struggled to identify them.