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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. Session 6: 13 May 2021 to 8 April 2026
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Displaying 1636 contributions

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Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

My final comment—to go back to my original line of questioning—is that South of Scotland Enterprise’s annual report provides, on pages 15 and 16, a breakdown of its expenditure and, in particular, a breakdown of how its grants were awarded by sector and according to the pillars. That is useful to have. I totally accept the macro position, but if you are wondering what I was trying to get at, that is the point that I was trying to make.

Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

Welcome back. It is a great pleasure to welcome our second panel of the morning. We are joined by representatives of both Highlands and Islands Enterprise and South of Scotland Enterprise. From Highlands and Islands Enterprise, we have Stuart Black, who is the chief executive, along with Sandra Dunbar, who is the director of corporate services. From South of Scotland Enterprise, we have Jane Morrison-Ross, who is the chief executive, along with Anthony Daye, who is the director of investment, business and entrepreneurship.

I will begin along similar lines to the questions I put to Scottish Enterprise. I am trying to understand the impact and value for money that we get from our enterprise agencies.

It was very useful to get a very clear breakdown of expenditure and what proportion of grants are awarded to business by sector and by key programme in the South of Scotland Enterprise annual report, on pages 15 and 16. My calculation is that your operating expenditure is about 40 per cent of your total outgoings. How do you go about measuring the impacts that you outline and ensuring that you accurately measure that there is a direct linkage between your expenditure and the outcomes? Obviously, as with all the enterprise agencies, the amount of value that you are citing is greater than the expenditure that you are putting in.

Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

I understand that point—it is direct support—but the things that you are measuring are indirect and broader, as opposed to direct outcomes from expenditure. That is the slight differentiation that I am making.

Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

As long as it is quick, Stephen.

Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

I think that we could do a whole inquiry on that. We better stop there.

Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

I think that that is the first time that the Sex Pistols have been heard at committee. [Laughter.]

Economy and Fair Work Committee

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

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

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

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.