Meeting of the Parliament 19 January 2016
I am pleased that we are having the debate this evening, and I thank all those members who have remained for it. I also thank three people in particular: Geoff Campbell, Martin Reid and Willie McArthur. Willie McArthur first raised the issue with me and Jim Eadie some 18 to 20 months ago.
The road haulage sector is a fundamental part of the Scottish economy. Its net contribution is more than £5 billion, and it contributes more than 5.5 per cent of the total Scottish gross value added. It is also a vital component in helping to deliver Scotland’s exports which in themselves are a key component of Scotland’s economic strategy: we are on track to double our exports over the period 2012 to 2017. The sector fuels the retail market, secures manufacturing output through the delivery of raw materials and components to industry and also harnesses indigenous industries such as farming and forestry.
There are an estimated 300,000 HGV drivers in the United Kingdom, of which Scotland has—or should have—approximately 30,000, but it is estimated that the driver shortage in Scotland may be as high as 11,000. As I said, this is not just a Scottish problem, but a fairly large one as far as we are concerned.
Data from a recent study by Manpower UK found that HGV driver roles are among the five hardest roles to fill in the job market, which compounds the shortage. Because of the demographics, 16 per cent of drivers are due to retire in the next four to five years and only 1 per cent of drivers are under the age of 25. That is combined with an appallingly low recruitment rate. Approximately 1,500 drivers have to be recruited each year in Scotland to address the shortfall. That ticking economic time bomb exists. The fact that the sector is heavily dominated by men contributes to that. Only 1 per cent of drivers employed in the industry are women.
Those overall statistics are not new. The problem has not just sprung up; it has steadily worsened over the years. The sector skills council has estimated that, at times, there have been six vacancies for every one driver. There is no doubt that we have a serious driver shortage in Scotland.
We need to tackle three main areas. Again, I emphasise the support and information that I have received from the industry and those who live with the challenge day in, day out.
First, we need to ensure that our skills agencies understand the scale of the problem that the sector faces and have a skills strategy to tackle the issue. There are also many sectors within the HGV sector, such as the forestry, livestock and fuel movement sectors, all of which have unique skill sets and all of which contribute to the overall challenge.
All drivers now require the compulsory certificate of professional competence, and they also must carry a driver qualification card, which involves having 35 hours of periodic training every five years. CPC training can cost up to £3,000 a driver. Together, we need to ensure that those things are properly funded and that drivers remain and grow with the industry.
Following a specific meeting last month that followed months of prior discussions, Skills Development Scotland will carry out an extensive consultation with the sector to assess the scale of the problem, the skill sets that are required and the barriers to recruitment. The invitation to tender for that consultation is now on the public contracts Scotland portal. Believe it or not, that closes tomorrow. The consultation involves talking to the Scottish road haulage group, the Road Haulage Association and the Freight Transport Association; it also involves talking to the highly significant food and drink industry and other key sectors in Scotland. We should have that skills strategy by the end of March. Modern apprentice schemes, career development loan opportunities and working with existing training providers will all be principal features of it.
Secondly, we need to ensure that a pipeline of drivers is coming through into the industry. As I said, only 1 per cent of the industry is under the age of 25. The principles of the developing the young workforce strategy would be enshrined in the development of a logistics academy in Scotland. To that end, we will encourage discussions to take place between the skills agencies, schools, colleges and the university sector to ensure that we have a robust pipeline of professional drivers. The driver training agencies and employers that I have met are very ready to play their part.