Hansard

I share the sentiment that we heard from the minister. When we talk about the space industry, for many people, that will conjure up images of science fiction and things in the far future, and not necessarily things that are relevant to them. However, the reality is that space is already a significant part of Scotland’s economy, and it will, if we make the right decisions, be a significant part of its future economy.

When I was looking at the Scottish direct investment web page, I was struck by a web clip that outlined Scotland’s strengths and advantages. That was not only compelling to watch; it had been filmed in my constituency, at the Royal Observatory in Edinburgh, which is the base for the UK Astronomy Technology Centre and the Higgs Centre for Innovation. It is one of the key components of the expertise that Richard Lochhead set out.

Although Richard Lochhead was absolutely correct to say that Glasgow is very much the centre for the manufacturing of vehicles, Edinburgh is very much the centre for data analytics, which is the other part of the crucial mix that we have in Scotland. When we add in assets such as the future spaceports in the north and south of Scotland and things such as the satellite receiving station in Errol, just outside Dundee, we quickly realise that space is all around us. Scotland has deep opportunities. We have the expertise, driven by our world-class universities and research and the existing companies.

A number of insights from the debate apply not just to the space sector but more broadly, to new technologies and advanced manufacturing. We need to start thinking about Scotland not as having separate clusters but as one cluster. We are a small country, and that gives us significant advantages. All the assets in the north and the south of the country, in Glasgow, Edinburgh and Dundee, are very close in global terms. That gives us a huge strategic advantage to grow the sector.

We must all sit up and recognise that the 8,000 jobs growing to potentially 20,000 jobs in 10 years’ time, with potentially five times 8,000 jobs thereafter, is a significant opportunity for Scotland but also a critical one. As much as we look forward, we must look at our current industrial mix. The oil and gas sector employs more than 200,000 people, and the median wage is £45,000 a year. Those jobs will not continue for ever. It is imperative that we look to future industry so that we can replace those highly paid and high-value jobs.

We very much agree with the sentiments that are expressed in the Government’s motion, but we cannot rest on our laurels. Active intervention and significant planning and policy will be required to seize the advantage in investment, infrastructure, location and people in order to make good on that. That is why we put forward the suggestions in our amendment, and it is why I will move it.

Skills gaps are apparent right across the economy in Scotland. Despite the increasing discussion about that, the reality is that we have seen a decline in the number of employees receiving job-related training over the past 15 years. Indeed, in the most recent budget, we saw a £10 million decrease in Skills Development Scotland’s budget compared with the previous year. Audit Scotland has said that the Scottish Government has failed to provide the necessary leadership or oversight in skills planning. Therefore, there is a lot riding on the skills review. I know that that is forthcoming. It is clear that, if we are going to make good and build those 20,000 jobs, we need an agile and responsive approach to skills. I acknowledge that that is set out in the national strategy for economic transformation, but, in order to deliver that, detail is required.

I would go further. We need approaches that enable partnership between industry and Government for insight, setting the content and delivery of skills training, and leveraging private finance to deliver funding. That is what genuine partnership looks like, and that is what a future skills approach for space and, indeed, other areas will require, and that must come forward.

We also need flexibility. The reality is that a skills regime and approach that is overly focused on those at the start of their careers will not get this right. We need to reskill people and repurpose skills from industries of the past so that they are relevant to the industries of the future. We have plenty of engineers, but we need more of them; we also need to redeploy engineering so that the skills that engineers have are relevant to the skills that they need.

We also need to look at our places. Much is made of words such as “infrastructure” but I think that we need to break down that language. Much of what high-tech sectors need is actually quite simple—they need space, not in terms of the space up there but in terms of space in industrial units and sheds. The real appetite in industry for the green ports is not so much about deregulation; it is simply about getting the space in which they can set up and run businesses. We need to learn that lesson, because it is what is needed for the space industry as well as for other high-tech industries such as life sciences.

In terms of places, it is also about housing—Jamie Halcro Johnston was absolutely right about that. Unless businesses can be set up and run in places that are accessible to people who are able and willing to work in those businesses, we will not be able to make a start. There is plenty more to say, but, ultimately, we need an industrial strategy to make good on our potential in relation to the space industry.

I move amendment S6M-08713.1, to insert at end:

“; further understands that ensuring that employers in the space sector have access to the skills and expertise they need in the workforce is essential to long-term success in the sector, and recognises that this will require improving delivery of STEM subjects in schools and revitalising skills delivery so that it is flexible, aligned to industry, and capable of reskilling and upskilling; emphasises the requirement for physical space for advanced manufacturing to be set up affordably and in proximity to supply chains to deliver effective clustering effects for the space sector; acknowledges the importance of cooperation and pooling, such as at the National Manufacturing Institute Scotland, to enable the development of advanced manufacturing in the space industry, and highlights the importance of a supportive regulatory regime and of the Scottish Government engaging collaboratively to ensure that this is delivered.”