Meeting of the Parliament 20 November 2014
I, too, am pleased to take part in the debate. It follows the successful VisitScotland event that was held yesterday evening, which focused on Scotland’s year of food and drink 2015. That year has had a good kick-start through the high-profile events that have been held this year, including the Commonwealth games and the Ryder cup.
The importance of the document “Becoming a Good Food Nation” to the whole of Scotland is evidenced by the huge number of briefings on the subject that have been sent to MSPs in the past few days. I thank all the organisations that have sent those briefings. By any measure, the cabinet secretary and the Scottish Government are to be congratulated on the prominence that they have given to the food and drink sector since coming to office in 2007. They first published “Recipe for Success” and are building on that.
To many people, Aberdeen and the north-east are known only as the centre of the oil and gas industry, but we are by no means a one-trick pony. Before oil and gas were discovered, agriculture and whisky were the mainstays of the economy, and even today, the food and drink sector supports 22,000 jobs in the region and accounts for about a fifth of Scotland’s food and drink activity.
In the past year, Aberdeen and Grampian Chamber of Commerce has surveyed the sector and found that 37 per cent of respondents reported export activity, in comparison with only 29 per cent in 2011, and that over a third of revenue came from countries outside the UK. It is encouraging that 78 per cent of businesses expected to grow and expand and that over 17 per cent expected to retain their existing scale. However, the fact that 37 per cent report export activity shows that there is still huge potential for growth, and about 55 per cent of businesses were looking to invest for growth.
Challenges exist in the recruitment of senior managers and sales staff, and the competition with industries in the region that pay higher wages is acute. I therefore pay tribute to the many people from other parts of Europe who have come to work in the sector in the north-east. They are vital workers in a tight labour market and an example of why the UK’s exit from the EU would be disastrous for Scotland.
There is the potential for more growth, and it is hoped that the upcoming inquiry by the Economy, Energy and Tourism Committee on exports and the inquiry of my committee, the Infrastructure and Capital Investment Committee, on all forms of freight transport will identify opportunities and challenges for Scotland’s businesses. Most freight is carried on scheduled passenger flights, and much is exported through direct routes to the middle east—to Dubai and Doha. When new routes are developed for passengers, it is important that we also think of the potential for exporting our products in the holds of the aircraft.