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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 17 December 2025
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Displaying 1887 contributions

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Economy and Fair Work Committee

Scottish National Investment Bank

Meeting date: 16 March 2022

Michelle Thomson

I want to pick up on another issue that we touched on earlier: that of risk relative to innovation, which is one of your guiding mantras. It almost seems counterintuitive that, at present, when geopolitics is in a state of flux, there is a requirement for more innovation, including with regard to net zero.

How confident are you that you have landed it just right in the current climate? As you alluded to, if you only ever invested in Government bonds, you would always get a guaranteed return. There is a sweet spot, which I regard as quite challenging, given the nature of how the bank is set up and structured. Not everybody necessarily understands how that translates into risk appetite, and it is not all that common for parliamentarians to understand risk appetite. Do you have any further reflections, in the light of the current state of geopolitics?

Economy and Fair Work Committee

Scottish National Investment Bank

Meeting date: 16 March 2022

Michelle Thomson

Good morning, and thank you very much for attending today鈥檚 meeting.

I want to pick up on an earlier point about subsidies鈥擶illie Watt referred to it, but then moved on. In your submission, you comment on the new UK subsidy control regime and note that, at this point in time, there is not really any clarity in that regard. Having followed up on that myself, I understand that there are some principles that may ultimately rely on legal challenges leading to precedent. That seems to be a very clumsy way of doing things.

I have two questions. First, have you had any further insights of which the committee might not be aware? Secondly, what impact might that approach have on your investments?

Finance and Public Administration Committee

Environmental Fiscal Measures

Meeting date: 15 March 2022

Michelle Thomson

Okay. As I have been invited to do so, I will.

You allude to some of the potential limitations introduced by the United Kingdom Internal Market Act 2020 and the Subsidy Control Bill. The Scottish Parliament has refused to pass a legislative consent motion on that bill, and the Economy and Fair Work Committee, of which I am also a member, has written about it in quite stringent terms. Are there any other areas that you want to highlight in that respect? I suppose that there is a timing element to consider, given that, as you have pointed out, initiatives that the Scottish Government might attempt to introduce鈥攁nd which might be trying to do the right things for the right reasons within a very restricted framework鈥攃ould fall foul of that bill. You have provided some commentary in your report, but you have not chosen to give any specific examples. Are there any such examples that you would like to highlight now?

Finance and Public Administration Committee

Environmental Fiscal Measures

Meeting date: 15 March 2022

Michelle Thomson

You have looked at other countries and set out that evidence in your report, but, as you have highlighted, part of the complexity relates to the fiscal transfer process, which is particularly complex for the Scottish Parliament. Did you consider other states where similar fiscal transfer models exist?

Finance and Public Administration Committee

Environmental Fiscal Measures

Meeting date: 15 March 2022

Michelle Thomson

That will be in the Official Report.

Finance and Public Administration Committee

Environmental Fiscal Measures

Meeting date: 15 March 2022

Michelle Thomson

You have done a great job with your report, Callum Blackburn, particularly in restricting it to only 90 pages, such is the complexity of the issue. There is a backdrop to it, of course. The UK Parliament Public Accounts Committee鈥檚 report makes it clear that the UK Government has a plan, without answering the key question of how it will fund the transition to net zero, including how it will deliver policy on replacing income from taxes such as fuel duty. It does not even provide a general direction of travel on levies and taxation, which would kind of nail it.

Few could disagree with the principles that you set out in your report, but it immediately struck me that there must be areas in which, if you adhere to one principle, you will be moving against another. Are there any particular areas that you would want to bring out that have not been brought out thus far? You have given some examples already, but it would be useful to have more examples, because I would not in any way want to underestimate the complexity of what we have to do.

Finance and Public Administration Committee

Environmental Fiscal Measures

Meeting date: 15 March 2022

Michelle Thomson

Like everyone else, I could ask a multitude of questions, but we would be here all day.

Finance and Public Administration Committee

Environmental Fiscal Measures

Meeting date: 15 March 2022

Michelle Thomson

For the record, I point out that the Scottish Government is recommending refusal of the LCM.

Finance and Public Administration Committee

Resource Spending Review Framework

Meeting date: 8 March 2022

Michelle Thomson

I am trying to explain that, from an accountability perspective, money that the UK Government provides to councils has to be bid for. We have already agreed that that process is inefficient, as some public expenditure is lost through days of inefficiency. It is not the same as money being set aside, with assistance on how councils should spend it from the Scottish Government, because that is done on a universal basis. I am just trying to confirm that my understanding is correct.

Finance and Public Administration Committee

Resource Spending Review Framework

Meeting date: 8 March 2022

Michelle Thomson

Yes.