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Displaying 1659 contributions
Economy and Fair Work Committee
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
Meeting date: 17 September 2025
Daniel Johnson
Thank you very much. I thank the witnesses on our second panel this morning for all their contributions. With that, I bring the public session to a close.
12:36 Meeting continued in private until 12:51.Economy and Fair Work Committee
Meeting date: 17 September 2025
Daniel Johnson
Under agenda item 2, we will take evidence from enterprise agencies, starting with Scottish Enterprise. I am very pleased that we have with us Adrian Gillespie, the chief executive of Scottish Enterprise, and Kerry Sharp, its chief financial and investment officer. I believe that they are both ready and willing to launch straight into answering questions.
Enterprise agencies are incredibly important in allowing us to support business, enterprise and industry in Scotland. We are carrying out pre-budget scrutiny, so we want to understand the financial effectiveness of the money that is provided to our enterprise agencies and the value that that creates. As a former businessperson, I like to understand the bottom line. Scottish Enterprise was provided with £225 million when the budget was set, but the figure rose to more than £280 million after budget revisions. What proportion of that figure was provided to businesses in the form of grants and loans in the previous financial year?
Economy and Fair Work Committee
Meeting date: 17 September 2025
Daniel Johnson
According to the table on page 97 of your annual report and accounts, your operating expenditure is £175 million. What proportion of that—
Economy and Fair Work Committee
Meeting date: 17 September 2025
Daniel Johnson
From reading your annual report, I slightly struggle to identify the hard-nosed and bottom-line points: the total sums going out the door and their effectiveness. Pages 13 and 14 contain several measures, such as 15,000 jobs being safeguarded, £442 million of innovation investment and £1.16 billion of capital expenditure. Obviously, those figures are in excess of your budgets; those are not direct outcomes. How do you ensure that those stated outcomes relate to your activities and interventions and that they are a fair measure of your impact?
Economy and Fair Work Committee
Meeting date: 17 September 2025
Daniel Johnson
That is understood. With that, I will hand over to Lorna Slater.
Economy and Fair Work Committee
Meeting date: 17 September 2025
Daniel Johnson
That information would be very useful. Although case studies would be useful, summary information on the totality of that funding and the high-level criteria that are applied would be most useful. My understanding is that the criteria are applied to particular sectors and to companies of particular ages. Could you clarify the criteria that are applied to the productivity funding and the other grant streams?
Economy and Fair Work Committee
Meeting date: 17 September 2025
Daniel Johnson
I accept that. I do not think that anyone is arguing with the fact that the company needed the investment and that you were absolutely right to provide it. The issue is the mismatch. You put in £4.8 million in 2023, and £2 million was provided in the previous four years, but Alexander Dennis did not win a substantial proportion of the £41.7 million that was available under ScotZEB. There is a question to be asked about whether you were investing in the right things or whether the Scottish Government should have applied more conditionality to make sure that your investment made good for the Scottish economy.
Economy and Fair Work Committee
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
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.