Hansard

I welcome the opportunity to discuss the important relationship between Scotland and Europe, and our shared goals over the coming years. Our committees play a vital role in scrutiny of how effective that relationship is, thereby ensuring that we as a Parliament fulfil our commitments.

Scotland’s policy relationship with Europe is important for achieving stable growth through interconnectivity and contributing to the objectives of the Europe 2020 strategy. José Manuel Barroso states in the opening chapter of the strategy document:

“Economic realities are moving faster than political realities, as we have seen with the global impact of the financial crisis. We need to accept that the increased economic interdependence demands also a more determined and coherent response at the political level.”

As members will be aware, there are so many areas of development that we can go into, which demonstrates just how much the European objectives for 2020 interact with our own policy process.

However, I will endeavour today to remain focused on one area. We as a Parliament have faced many challenges over recent months, as uncertainty over renewable investment and our clean energy sector has impacted on the success of key firms, including Pelamis in my constituency. I therefore wish to focus on research and development in the EU 2020 strategy and on what we are doing here to fulfil our potential in that key sector.

As the Scottish Government’s “Europe 2020: Scottish National Reform Programme 2014” report highlights, our capacity for innovation in new renewable technologies, in pharmaceuticals, in healthcare and in biotechnology requires that the finest minds from across the European Union and the global academic community see our shores as being a destination of choice.

One of the lessons that have been learned from the Pelamis closure is that innovation and collaborative working across Europe are necessary if we are to produce products that are commercially appealing. A strong research and development base on which to build is essential. In that regard, I am glad to read in the Scottish Government’s NRP that growth in that area will focus on the EU’s flagship innovation union initiative.

Research and development is important for making the most of our emerging industries, and that is particularly relevant in the renewable energy sector. Ensuring that the focus is on making our new technologies commercially viable is vital for ensuring that investment by the private sector is secure in future years.

The transition to a low-carbon economy is a key component in the success of the Government’s economic strategy, with investment meeting the twin aims of boosting our economy and achieving carbon-reduction targets.

In evidence to the European and External Relations Committee, which was cited in its report, the Scottish Government stated:

“The Scottish Government wants to see strong incentivisation, research and innovation to lower costs and ensure that energy efficiency, renewables (particularly offshore wave, tidal and wind), energy storage, and Carbon Capture and Storage (CCS) can play their part in the EU energy mix, improving energy security and creating jobs and growth.”

That statement rings true, particularly when we bear in mind our recent debate addressing the need to incentivise innovation in wave power technologies. However, reform of the current laws that dictate state aid rules might also be necessary if we are to ensure that another loss like that of Pelamis is to be avoided in the future.

Members will be aware that, in committee evidence, the European and External Relations Committee asked about the possibility of the Commission changing its approach to state aid rules so that Scottish investment in renewable energy would allow the state to invest in wave and tidal power projects. Ms Minor stated:

“One of the five dimensions of the communication on the energy union ... will certainly be research and development. It will look at ways in which we can encourage more investment in research into clean and sustainable technologies. It is premature to speculate about whether it will look at the existing state aid rules but, from having accompanied the commissioner during discussions in London earlier in the week, I know that he is very enthusiastic about carbon capture and storage.”—[Official Report, European and External Relations Committee, 22 January 2015; c 18.]

We have the workforce and the skills to make Scotland a leader in the EU if we pay heed to the lessons of Pelamis and look to incentivise growth in new technologies in a more collaborative way, while also looking at how current state aid rules might be reformed to ensure that, where state support is urgently required, it may be given.