Committee
Economy, Jobs and Fair Work Committee 29 November 2016
29 Nov 2016 · S5 · Economy, Jobs and Fair Work Committee
Item of business
Economic Impact of Leaving the European Union
The enterprise and skills review investigation will be based on Scotland. The review group involves people from industry and the organisations that are involved in providing enterprise and skills support, plus many others—I hesitate to use the word “experts”, but that is what they are—looking at the range of economic data that we have. It will be specific to the Scottish economy. If, at the end of that review, the suggestion is that we should be commissioning extra information that is specific and tailored to the Scottish economy, we should not be afraid to proceed with that. I think that that work is necessary. One measure that Scotland does not have but which other economies have is the whole of the economy report—I think that that is what it is called. We need a root-and-branch review of the information that we have. Our approach should be designed to advise and inform the public and parliamentarians and make it as easy as possible for us to judge how the economy is doing, and we should be able to use the information as a basis for decisions about how to improve the economy. That work in Scotland will not be undertaken by the ministerial review group, but—this was perhaps the point of Gil Paterson’s question—the review might result in our saying to the ONS, “This doesn’t suit us. Is it possible to do it in another way?” There is obviously a real value in having an objective analysis of the figures. However, I do not want to prejudge the outcome of the review.
In the same item of business
The Convener
Con
I reconvene the meeting and welcome Keith Brown, the Cabinet Secretary for Economy, Jobs and Fair Work, and Michael Russell, the Minister for UK Negotiations...
The Cabinet Secretary for Economy, Jobs and Fair Work (Keith Brown)
Thank you for the opportunity to contribute to the committee’s investigation of the potential economic impacts of the result of the EU referendum. I welcome ...
The Convener
Con
Thank you, cabinet secretary. You mentioned exports in your statement. Is the Scottish Government doing anything over and above what has already been publicl...
Keith Brown
SNP
In addition to what has been announced, much of which you will be aware of, work is going on all the time, including a programme of visits by ministers. For ...
The Convener
Con
Thank you, cabinet secretary. Gordon MacDonald has a question.
Gordon MacDonald (Edinburgh Pentlands) (SNP)
SNP
I apologise in advance to the committee and witnesses for having to leave the meeting early due to a family commitment. Over the past few weeks, we have hea...
Keith Brown
SNP
A pretty good guide to how such products are defined and the different sources of those definitions has just been put on the Scottish Government’s website. W...
Gary Gillespie (Scottish Government)
I reinforce the cabinet secretary’s point that, although a small number of companies account for a lot of international exports, that is probably not uncommo...
Gil Paterson (Clydebank and Milngavie) (SNP)
SNP
I would like to follow up on those points, on which we have heard from a number of witnesses. For example, David Williamson from the Scotch Whisky Associatio...
Keith Brown
SNP
That is a very good point, and it has been made during the enterprise and skills review across the piece, not just in relation to exports. The quality and ex...
Gil Paterson
SNP
Will the research be peculiar to Scotland, or will it be based on the ONS research?
Keith Brown
SNP
The enterprise and skills review investigation will be based on Scotland. The review group involves people from industry and the organisations that are invol...
Gary Gillespie
We rely on the ONS to produce a lot of economic data on a UK basis, with a disaggregated data set for Scotland. We typically pay for a boost to the sample, t...
Jackie Baillie (Dumbarton) (Lab)
Lab
Cabinet secretary, I welcome your clear comments about the importance of the UK market to Scotland. You will forgive me for saying that they stand in contras...
Keith Brown
SNP
It will be apparent to anyone who gives the matter a bit of thought that the rest of the UK is unlike our other markets, in as far as we have a huge number o...
Jackie Baillie
Lab
I note that the London hub is being created, so it is clear that you are not dismissing the importance of the UK market. How many people will be in the Londo...
Keith Brown
SNP
As you said, the unit in Dublin will be established and the extra staff there will mean that staff numbers in the EU will be doubled. There is a relationsh...
George Burgess (Scottish Government)
In the Dublin hub, which has been established for some time, there are already two members of Scottish Government staff, who will be joined by a member of SD...
Jackie Baillie
Lab
Perhaps you could explain the answer to my parliamentary question S5W-03970, which indicated that, when the London hub “opens in 2017, the 8 people working ...
Keith Brown
SNP
I think that it fits. We are saying that additional staff will move to Dublin. The last visit that I made to the SDI and Scottish Enterprise office in London...
Jackie Baillie
Lab
It is important for us to understand the relative priority that the Scottish Government attaches to things. Are you taking staff away from London to Dublin? ...
George Burgess
I suspect that there might have been a good old-fashioned typo in the answer. The intention is that the staff from SDI and Scottish Enterprise who are alread...
Jackie Baillie
Lab
That would be helpful. If you want to review any other typos that might exist, I am sure that my fellow MSPs would be very pleased. I have one final importa...
Keith Brown
SNP
No. Given SDI’s activities, it would not be possible to take on that additional number of staff within the same budget. Two weeks and a bit in advance of the...
The Convener
Con
Dean Lockhart has a follow-up on that point, before we move on to another subject. 11:30
Dean Lockhart (Mid Scotland and Fife) (Con)
Con
I thank our guests for coming along this morning. The relationship between exports and productivity is important, as the cabinet secretary said. In his autu...
Keith Brown
SNP
Implicit in that question is a recognition from Dean Lockhart, perhaps for the first time, that two Governments are involved in the economy in Scotland. His ...
Gary Gillespie
Since 2007, there has been a target to be in the top quartile of OECD member states for productivity. That is measured using output per hour worked, usually,...
Keith Brown
SNP
Dean Lockhart mentioned the Chancellor’s statement and investment in infrastructure, which we think is a vital part of improving productivity. Large-scale pr...
Dean Lockhart
Con
Mr Gillespie, just to confirm: you did say that the Scottish Government, with new powers coming to Holyrood, has control over enterprise policy, education, s...