Meeting of the Parliament (Hybrid) 02 December 2020
I have just made the point that we have looked at lots of different options, including state ownership, and we discussed the transfer of shares not only to ourselves but to third-party investment. However, that, too, was not legally state aid compliant. JV Driver said that it would provide us with flexibility, but it would provide no flexibility in relation to the legal constraints.
We have also explored the provision of financial support with the United Kingdom Government which, as the joint statement on 24 November made clear, considers that there is no legal or commercial basis for it to support BiFab at this time. I recognise the interest in the legal position and have noted the calls for the relevant legal advice to be published, but, as I have previously explained, under the terms of the ministerial code it is not permissible for me to do so. [Interruption.] No, I cannot give way; I only have a few seconds left.
That position is shared by the Conservative UK Government, and members on the Conservative front bench may want to reflect on that in terms of publication of legal advice.
With Michael Gove, I agreed to form a joint UK and Scottish Government working group to ensure that all possible options are explored in relation to the supply chain. That is an important step. The UK policy landscape is one of the major barriers to strengthening our supply chain. The weaknesses in the UK Government’s contract for difference mechanism work against Scotland and the Scottish supply chains, meaning that companies such as BiFab have limited chances of securing work. The contract for difference auction needs to ensure that project bids are not secured purely on the price per megawatt. The UK Government must consider the wider economy and our response to the climate emergency. Those are all points that have been made by industry to the Economy, Energy and Fair Work Committee.
We have left no stone unturned in our search for a solution to the challenges faced by the business and we are committed to working with all parties to deliver the best outcome for Scotland.
I move amendment S5M-23537.2, to leave out from “; considers” to end and insert:
“regrets that the board of directors and majority shareholders of BiFab are unable to invest in, or provide working capital or assurances for, the company; further regrets that the Scottish and UK governments are unable to provide further financial support that is state aid-compliant; encourages all parties, working with the STUC and trades unions, to seek opportunities to secure additional investment, working capital and assurances to support future work at the strategic sites currently operated by the business, making use of the recognised engineering skills of its workforce; agrees that the UK Government must use its current review of the Contract for Difference (CfD) mechanism to deliver radical changes to the CfD, which will ensure that future renewables developments support the domestic supply chain and, as a minimum, fulfil the 60% supply chain content target set in the current UK Offshore Wind Sector Deal; further agrees that, although currently a reserved matter, the Scottish Ministers should initiate consultation with stakeholders on potential ways to improve outcomes for Scotland and a secure and sustainable future for the Scottish renewable supply chain, and recognises that, given the failure of successive UK administrations to deliver an indigenous UK supply chain, these powers would be managed more effectively by the Scottish Parliament.”
Motions, questions or amendments mentioned by their reference code.
- S5M-23537.2 BiFab Motion