Chamber
Meeting of the Parliament (Hybrid) 24 March 2021
24 Mar 2021 · S5 · Meeting of the Parliament
Item of business
Greensill Capital UK (Administration)
I can assure Mr Fraser that continued operation of the smelter and the steelworks are foremost in our objectives. I made that absolutely clear when I met trade union representatives on Monday, when we had an extremely useful discussion. In that discussion, they shared with me their view that the workforce in both plants are optimistic and confident about the future ability of the plants to operate successfully. We have been advised that the aluminium smelter at Fort William has been trading profitably. Mr Fraser asked what independent analysis we do of that. We receive regular information, which our officials share and discuss with our professional advisers, as Mr Fraser would rightly expect.
As he was a member of the Finance and Constitution Committee that approved the guarantee—along with colleagues in his party and other parties, as was right and proper—Mr Fraser should be aware that in order to provide mitigation of and protection against risk, we obtained appropriate securities, including security over the smelter and the hydroelectric station. I confirm that those are very valuable assets and that, although the security value is commercially confidential, it is very significant indeed.
We took that action to avoid the loss of a steel industry and of the only remaining aluminium smelter in Britain. If we had not acted, they would have closed.
In the same item of business
The Deputy Presiding Officer (Christine Grahame)
SNP
Right—back to normal. The next item of business is a statement by Fergus Ewing. The cabinet secretary will take questions at the end of his statement, so the...
The Cabinet Secretary for Rural Economy and Tourism (Fergus Ewing)
SNP
My statement concerns the administration of Greensill Capital UK Ltd and its implications for businesses in Scotland. At the outset, I emphasise that the sub...
The Deputy Presiding Officer
SNP
The cabinet secretary will now take questions on the issues that were raised in his statement. I will allow about 20 minutes for questions, after which we sh...
Murdo Fraser (Mid Scotland and Fife) (Con)
Con
I welcome the statement, which we have been calling for, and I thank the cabinet secretary for advance sight of it. There has been considerable media specula...
Fergus Ewing
SNP
I can assure Mr Fraser that continued operation of the smelter and the steelworks are foremost in our objectives. I made that absolutely clear when I met tra...
Monica Lennon (Central Scotland) (Lab)
Lab
I, too, thank the cabinet secretary for advance sight of his statement, and I welcome the engagement with trade unions. I remind the Parliament that I am a m...
Fergus Ewing
SNP
I thank Monica Lennon for her question—she asked several questions, in fact. I can say that GFG Alliance is seeking to undertake a refinancing. That is a sen...
The Deputy Presiding Officer
SNP
I call Willie Rennie. I repeat the usual mantra—it is not directed at you, Mr Rennie—of shorter questions, shorter answers.
Willie Rennie (North East Fife) (LD)
LD
Five years ago, the Government told us that the multiplier and supply chain impacts in Lochaber would be worth 2,000 jobs. Are we ever going to see those job...
Fergus Ewing
SNP
In my opening statement, I went over the number of jobs that have been provided. Those jobs are valuable and I hope that the Liberal Democrats support that—t...
John Finnie (Highlands and Islands) (Green)
Green
I thank the cabinet secretary for his statement and for the Scottish Government’s active involvement in the smelter; I know that the cabinet secretary knows ...
Fergus Ewing
SNP
I am not quite sure that I caught all that, but the company’s plans for expanding activities at Lochaber are in the public domain; I can share more informati...
Clare Adamson (Motherwell and Wishaw) (SNP)
SNP
My grandfather spent most of his working life in the Dalzell mill, so I know just how much it meant to have those jobs and that production secured. Steel is ...
Fergus Ewing
SNP
Like Clare Adamson’s family, many families in the centre of Scotland have the steel industry very close to their hearts and many people have seen their sons ...
Jamie Halcro Johnston (Highlands and Islands) (Con)
Con
I welcome the cabinet secretary’s commitment to provide updates over the course of the campaign recess. On the Fort William plant, when the plans were chang...
Fergus Ewing
SNP
My officials and I were closely involved in detailed work when we renegotiated the original plan that was approved by the Finance and Constitution Committee,...
Rona Mackay (Strathkelvin and Bearsden) (SNP)
SNP
Why was it important that the support went only to a business with plans for long-term operations of the Lochaber premises? What has happened to those plans?
Fergus Ewing
SNP
The one clear reason why we took the approach that we did in offering support only to businesses with plans for long-term operations of the Lochaber business...
Rhoda Grant (Highlands and Islands) (Lab)
Lab
I am pleased to receive reassurance with regard to the GFG Alliance’s operations in Scotland, especially in Lochaber. When it purchased the Alcan estate and ...
Fergus Ewing
SNP
I do not think that it is correct to say that I washed my hands of responsibility. I understand, from the company, that there were substantial discussions wi...
John Mason (Glasgow Shettleston) (SNP)
SNP
In his statement, the cabinet secretary mentioned the figures of £14 million and £32 million as being the guarantee that was approved in 2016, including by t...
Fergus Ewing
SNP
In my statement, I set out the information that I thought it correct to share with Parliament, and the annual figure repayments vary. The agreement that we r...
Edward Mountain (Highlands and Islands) (Con)
Con
I refer members to my entry in the register of members’ interests: I own a fishery on the River Spey, and water from that river goes down to Lochaber, to the...
Fergus Ewing
SNP
As would be expected, at the time of the original transaction, a whole range of due diligence was undertaken. It was conducted by employing leading firms and...
Kenneth Gibson (Cunninghame North) (SNP)
SNP
As a former employee of British Steel for more than four years, working at Dalzell, I have considerable concerns about the future of the industry. Is the cab...
Fergus Ewing
SNP
My ministerial colleagues have carried out work on the long-term future of the steel industry, and we believe that there is such a long-term future. I allude...
David Stewart (Highlands and Islands) (Lab)
Lab
In his statement, the cabinet secretary made some positive points, which I whole-heartedly endorse, about the Lochaber smelter. Does he share my view that th...
Fergus Ewing
SNP
Yes, I do, and yes, I will. I am extremely grateful for Mr Stewart’s continued support. I think that that might be David Stewart’s last contribution in Parl...
Bob Doris (Glasgow Maryhill and Springburn) (SNP)
SNP
I am aware that we are about to enter a period of parliamentary dissolution. That said, what is the single most important thing that we, as members of this P...
Fergus Ewing
SNP
As one reads newspapers that are full of speculation, one does not tend to see in those columns of comment any consideration of the workforce. What struck me...