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The recruitment and retention of staff is a matter for the Scottish Fire and Rescue Service as the employer. There are currently two on call stations in the Orkney Islands Council area with a full staffing complement. When an appliance is not available, a response will be provided from the next nearest available location.

Capital expenditure is solely for the purchase of Peatland Carbon Units at a set rate as they mature within each project. However, awardees may sell their units on the open market where they can achieve an improved price.

The £1m allocated to the project is to cover liabilities if awardees exercise their option to redeem their Peatland Carbon Units with Scottish Government rather than selling them on the open market.

The Scottish Government has a number of contingent liabilities, which are disclosed in its consolidated accounts each year. The Scottish Government seeks the prior approval of Parliament, via the Finance and Public Administration Committee, before entering into any specific contingent liability unless it arises in the normal course of business or the sum of the risk is £2.5m or less.

The Scottish Government seeks to manage the impact of contingent liabilities crystallising within existing departmental budgets, in line with portfolio accountabilities. Only where necessary would these be funded centrally.

The budget treatment of crystallised contingent liabilities depends on the nature of the underlying transaction, in line with HM Treasury’s Consolidated Budgeting Guidance and accounting regulations. At present based on the latest contingent liabilities, if these were to crystalise there would be more call on capital over resource budgets.

Scottish Government undertook a robust process to assess a total of 14 different possible blended finance mechanisms for peatland restoration. Officials used Green Book appraisal methods to filter this list and employed a wide range of evidence to select a preferred option.

The Island Connectivity and Vessel and Ports Plan outlines our investment in new vessels and port and harbour projects that have been delivered within Phase 1 period of 2021-2026 reference to pages 11, 12 and 22 of the VPP.

Whilst we would have liked to have made more progress given the long lead-times for vessel and port projects, it was always known that a number of these projects would require further funding for construction beyond the five-year period of the IIP.

Carbon Contracts are to be piloted as part of the Peatland ACTON programme. All projects will be required to meet Peatland ACTION quality criteria. Scottish Government has not undertaken modelling to estimate the exact impact of the Carbon Contracts pilot on levels of peatland restoration and CO2 emissions reductions. The pilot itself will play a key role in assessing the potential impact of the Carbon Contracts mechanism on rates of peatland restoration.

As a part of the Carbon Contracts pilot, Scottish Government intends to spend up to a total of £1m in capital.

The capital costs associated with Carbon Contracts will be paid for from the Environment and Forestry Directorate’s budget. It will not impact upon the Peatland Action budget in this financial year.

I refer the member to the answer to questions S6W-35362 and S6W-35361 on 24 June 2025. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at: https://www.parliament.scot/chamber-and-committees/written-questions-and-answers.