Extract from Scottish Parliament questions on Economy, Jobs and Fair Work: Manufacturing (Renewable Technologies) - Sep 5

To ask the Scottish Government how many contracts for the manufacture of renewable technologies have been awarded to Scottish-based companies in the last five years and what the total value is of these. (S5O-02309)

The information, which relates to commercial discussions between developers, tier 1 contractors and the wider supply chain, is not collected centrally by either the Scottish or the United Kingdom Government, and difficulties remain because of the use of standard industrial classification codes for estimation of employment impacts.

However, there is increasing published evidence concerning the scale and value of renewable energy development to Scotland’s economy. That comes in the form of economic impact studies capturing activity and jobs in manufacturing as well as in operation and maintenance, research and innovation, and environmental and other services. The Office for National Statistics has produced estimates of low-carbon and renewable energy sector jobs, with some detailed breakdown by technologies. However, those details require refinement.

Is the minister aware that, in the 1970s, the Offshore Supplies Office was established with the objective of securing 70 per cent of the North Sea supply chain for UK companies? Hundreds of companies provided thousands of jobs as a result. When it comes to renewables, I note the recent comments from the former energy minister, Brian Wilson, who said:

“As the Windiest country in Europe, we should be angry and embarrassed that every single turbine around us has been imported.”

When is the minister going to introduce a manufacturing strategy for Scotland? When is the Government going to accept that if we are to get the economic benefits and jobs from the renewables sector, we need the state to play a role? We need a Government that will stand up for Scotland, and a Government that will bring jobs to Scotland.

When Richard Leonard, Mr Rowley’s party leader, was standing outside Burntisland Fabrications taking selfies, it was this Government that was helping to save the business; a little bit of recognition by Mr Rowley of the efforts that have been made by the Government to support the supply chain in offshore Wind would be welcome.

I have respect for Mr Wilson as a former minister. However, Mr Wilson has predicted the death knell of the offshore Wind industry in recent years and he is obviously not aware of the work that is in the pipeline. In Scotland, we now have 4GW of offshore Wind consented and 1.4GW of offshore Wind projects under construction, in addition to the 588MW Beatrice field that is being developed in the Moray Firth at this moment.

This Government takes the needs of the supply chain very seriously. Before the UK Government established the offshore Wind industry council, we established the offshore Wind industry group. We have a detailed supply chain working group, which I would be happy to share details of with Mr Rowley. The group works closely with industry to maximise the supply chain benefits for the Scottish economy, and I am happy to meet Mr Rowley any time to discuss our work in that respect.

Figures that were published by the Improvement Service in collaboration with the Convention of Scottish Local Authorities earlier this week show that the number of Scottish businesses that sell to their local councils has almost halved nationwide over the past decade, with more contracts being awarded to companies based outside Scotland. What action will the minister take to reverse that worrying trend? 

As I said earlier, with respect to the renewable energy sector, we are working with developers, Scottish Renewables and other key stakeholders, such as the Offshore Renewable Energy Catapult, to maximise develop supply chain opportunities for Scottish businesses. We monitor closely as best we can the economic impact of projects, and useful contributions have been made by Scottish Power and SSE and tidal generators such as Nova Innovation, which provide detailed information about the supply chain impact for the Scottish economy. The position is not perfect, and the UK Government would agree with that. Both Governments work closely together to maximise the supply chain opportunities for the Scottish economy and, in the case of the Department for Business, Energy and Industrial Strategy, the UK economy as a whole. I reassure Dean Lockhart that we take the issue very seriously and that developers know that economic impact is a key material consideration in planning applications, in which we look for detail on supply chain benefits.