Meeting of the Parliament (Hybrid) 02 December 2020
Fifteen years ago, I visited the yards at Methil. At that time, they were largely empty of workers, but in the old office block there were dozens of pictures of the huge offshore oil and gas structures that were built at the yards. They showed the workers smiling, proud of their skills and the great contribution that they made to our nation. At the time, many of us saw a bright future. Yes, the yards needed considerable investment, but on the horizon there was the promise of a commercially viable offshore renewables sector, with work for generations to come.
That bright future has now arrived in the yards of Asia and the middle east, but it has not arrived at Methil, Burntisland or Arnish. The reality is that markets have consistently failed to deliver on the full jobs potential of Scottish renewables. From CS Wind to BiFab, Governments have been unable or unwilling to assemble a domestic supply chain with the right investment in the right places at the right time.
If the Government is serious about a green new deal, it will have to put public ownership of energy at the heart of its industrial strategy and deliver on that. It is clear that courting private investors is a lottery. It appears that DF Barnes was caught out by the way in which projects are procured in the UK, as it expected more certainty and conditionality in a market that it clearly did not fully understand. I do not know who is to blame for that. Is it the board of DF Barnes, the Scottish Government or both? The reality is that, once again, the workers at the yards have been massively let down. The current situation is that the company is now unable to realise the opportunities that are right in front of it.
I do not doubt the Scottish Government’s desire to see BiFab flourish, but it is not acceptable for the Government, as a minority shareholder, to continually throw up its hands and say that it cannot do anything, when it has in the past had clear opportunities to take a majority stake in the company and take control in the boardroom.
Undoubtedly, the lack of conditionality in the CFD process continues to be a problem for BiFab and the rest of the UK renewables supply chain. The UK Government has clearly failed to create a jobs guarantee that would be in the public interest, and the CFD scheme is ultimately self-defeating. If its aim is to ensure the supply of energy to the consumer at the lowest cost, that has to be built on a strong Scottish supply chain that specialises in delivering the next generation of solutions for Scottish waters, such as floating wind.
All the ingredients are there at BiFab, with its long history of offshore fabrication, to enable it to deliver in the challenging environment of the North Sea. Alongside CFD reform, the jobs guarantee must be delivered through Crown Estate Scotland leases. Supply chain statements from companies that are looking to bid for the next round of wind farms in Scottish waters are being produced now. They must be meaningful, so that BiFab and other companies can use them as strong bankable foundations for their business plans. They need to demonstrate that there is a clear future pipeline of work for industry based in Scotland, whether in fabrication, blade manufacture or operation and maintenance. There must be a clear picture of the supply chain and of where it will be located, and that must align with the supply chain plans that will be required in the future under CFDs.
The frustration of communities in Fife and the Western Isles is palpable. This is not the first time that they have been let down, but it must be the last. The promise of a green new deal cannot be just about words; it must put food on the tables of the workers, and it needs to do that fast.
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