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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 26 December 2025
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Displaying 1897 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 21 December 2021

Michelle Thomson

It looks as though there are no takers.

I have one more question, which follows on from the point about risks. You correctly highlighted some of the implications around resource funding and for capital funding for the future—in particular, the risks to the national infrastructure mission for local and regional infrastructure.

From a risk perspective, that links directly with economic growth, and productivity is also thrown into the pot. Have you had a chance to give any more flavour to that risk, where there is direct investment by the UK Government in local and regional infrastructure? You might not have had such a chance—my question is simply on the back of the previous discussion in which we were focusing on resource.

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 21 December 2021

Michelle Thomson

That seems ridiculous. That concludes my questions, convener.

Economy and Fair Work Committee

Scotland’s Supply Chain

Meeting date: 15 December 2021

Michelle Thomson

Does Iain Bomphray have any final comments before we move on?

Economy and Fair Work Committee

Scotland’s Supply Chain

Meeting date: 15 December 2021

Michelle Thomson

Could Keith Ridgway and Iain Bomphray answer the question, too?

Economy and Fair Work Committee

Scotland’s Supply Chain

Meeting date: 15 December 2021

Michelle Thomson

Good morning to the panel. I will change the focus a little andf talk about finance. This morning, we had more bad news about the consumer prices index. Inflation has risen by 5.1 per cent in the past 12 months, which is much higher than was forecast. Andy Verity of the BBC has said that

“pressure ... is coming from ... rising commodity prices. The prices manufacturers paid for raw materials were up by 14.3%”

during that time.

I have a couple of questions that I want to explore with you, with your knowledge of manufacturing in general. How are businesses—in particular SMEs—coping, given the level of debt that they are already carrying, whether that is from bounce back loans or coronavirus business interruption loan scheme loans? Do you anticipate cash flow problems for the sector, given the rise in commodity prices and the supply chain issues that we have already discussed?

I should have said that those questions are for all the witnesses, starting with Nick Shields.

Economy and Fair Work Committee

Scotland’s Supply Chain

Meeting date: 15 December 2021

Michelle Thomson

That is very helpful. If there is any further information that you can provide to narrow down the topic in terms of the type of bids, it would be useful to have that. As someone who has made a UK finance bid, I appreciate what you have said.

Does Keith Ridgway or Iain Bomphray have any final points to make on investment and innovation finance before we move on? I am conscious of the time.

Economy and Fair Work Committee

Scotland’s Supply Chain

Meeting date: 15 December 2021

Michelle Thomson

On that point, there have been a few mentions of innovation in supply chain materials that will help us to meet our net zero targets. I suspect that that kind of innovation is of great interest to the committee.

Staying on the issue of finances, we all appreciate how important innovation is. Do you anticipate access to finance for such innovation presenting any problems? Are you seeing that? Is it difficult to access the capital?

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 14 December 2021

Michelle Thomson

Does risk diminish the appetite for change? Does taking a risk with differential tax policies inhibit behaviour?

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 14 December 2021

Michelle Thomson

I have another small question. Mention has been made of demographics and the anticipated reduction in immigration. I appreciate that Alasdair Smith said that the demographic situation had much bigger implications than the reduction in immigration, but from your modelling, do you have any sense of the reduction in tax take from the reduction in immigration? I think that Dame Susan Rice mentioned a figure of 50,000. What does that cost the Government in tax take? I do not know whether you model that or whether you just have basic numbers. I am not sure who would be best placed to answer that.

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 14 December 2021

Michelle Thomson

A lot of the levers that you might choose to use reside at UK level. Those include macroeconomic policy, a bunch of taxes, borrowing—which Scotland cannot do—and immigration. When you look at the current Scottish budget, is it your assessment that the Scottish Government is doing the best that it can with fairly limited fiscal levers? I do not want to put words in your mouth—I am not trying to do that. You can put your own words to it. I am asking the question because this committee and the Economy and Fair Work Committee have consistently agreed that, post-2008 and post-Covid, radical policy choices are required, yet this meeting has brought out the limitations on the Scottish Government when it comes to macroeconomic policy and levers.

This links back to the idea of asking what I would be doing if this were me. No matter what I thought of, we cannot do it. We cannot do any of the radical things that I thought of. You are both experts and I am merely a committee member. I would appreciate your thoughts.