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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 5 May 2021
  6. Current session: 12 May 2021 to 20 June 2025
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Displaying 1071 contributions

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Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Neil Gray

I thank Jackie Dunbar and recognise her considerable interest in the subject, as there will be across the committee and, more widely, across the Parliament.

I had a really productive meeting with the Scottish cluster at the end of last year and its planning and work on the development of carbon capture, use and storage continues. The encouragement—not just from the cluster but from the Scottish Government—is for the UK Government to move forward at a greater pace, so that we can realise the opportunity from both a net zero and an economic perspective. Our assessment is that, through the use of CCUS, our gross domestic product could increase by 1.3 to 2.3 per cent, which is a substantial amount. If the UK Government came forward in a much faster way on confirming track 2 status and the inclusion of industrial emitters, that would allow us to ensure that we have those strategic discussions with the cluster about where we can provide support—I have spoken previously about our commitment there. It would also mean that we could ensure that we reach our net zero ambitions for 2045, because carbon capture will play an incredibly important role in that. There will be great competition around the world for this capital and, if we miss the opportunity, it will be to our detriment from not just a net zero, but an economic perspective.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Neil Gray

No, there is no budget line for that. Mr Lumsden is correct. That commitment is not for a single year; it will be for negotiation, depending on the requirements of the cluster. That will be triggered when the UK Government takes its decisions around track 2.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Neil Gray

Yes, that is correct. It has no bearing on the viability of the Acorn project. The refinery is just one part of the Grangemouth cluster; there are significant industrial emitters in the wider cluster at Grangemouth. Even if we move to it being an import terminal as opposed to a refinery, there will still be flaring that needs to be captured. Therefore, that closure has no bearing whatever on the viability of the cluster’s application.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Neil Gray

Forgive me, convener, but the just transition fund is outwith my area of responsibility. I am happy to ensure that the committee can be furnished with further information about any impact assessment that has been carried out and the further work that we are doing to ensure that we invest in the just transition.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Neil Gray

There is a specific line in the budget. I cannot remember the exact figure—

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Neil Gray

I certainly hope not. In my visit to the yard and my meetings with the chair and the chief executive, and indeed with the shop stewards and the senior staff, I have emphasised that there is a need for us to deliver those vessels as quickly as possible. I do not want to see any further delay, but it is also important to ensure financial probity and that we are bearing down on costs. I do not want to see a further cost overrun, but obviously I cannot guarantee that there will not be one—it depends on what comes through at the meeting at the end of this week.

I have stressed to the board and the chief executive the financial situation that the Government is in. As we have all heard about and have been poring over today, the availability of further resource is limited. They need to ensure that they are bearing down on costs. I have pushed as hard as I can, and so has the First Minister, on not coming forward with any further cost overruns.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Neil Gray

It was around that figure, and the yard did not comply with what we would expect on a commercial market operator test. Therefore, the request fell at that first legal hurdle, which is that we have to have consideration for subsidy control.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Neil Gray

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Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Neil Gray

We would consider that alongside the assessments that we have to make around whether it passes subsidy control and the commercial market operator test and whether we think that that would help it to be productive to win future work on its own merits.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Neil Gray

I said that, if Ferguson Marine comes forward with a plan that we think passes those tests and allows us to invest, we would look to find that money to ensure that we can invest in the yard.