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I am not able to speak about that in any detail. My officials might want to come in on that.

As ever, convener, those are fair and reasonable points. I previously set out in committee the rationale for the approach that you touched on in your question. In the context of the discussions that officials have been having with the committee, we are considering those points in detail in order to meet the ambition for improved transparency as part of our deliberations ahead of the budget for the forthcoming financial year. That is under active consideration and it is being done in the context of the Verity house agreement, given that a number of transfers to local government take place. It is very much a live issue, to which we are giving active consideration.

Clearly, we would not want to do anything to unintentionally harm transparency, but the points that you make are fair and we are considering how we can address those matters and how that will inform the presentation of the forthcoming budget.

Thank you, convener. Good morning. I congratulate the committee on its award, and I congratulate Michelle Thomson on her award. However, having been in front of the committee several times, I know that praise and flattery will not get me off the hook, so I will get on with the matter at hand.

The Land and Buildings Transaction Tax (Green Freeports Relief) (Scotland) Order 2023 provides for relief from LBTT, in part or in full, for qualifying transactions in a designated green freeport tax site. Green freeports are designed to support businesses to create high-quality and well-paid new jobs. The successful bidding consortia are currently developing business cases that will set out plans to establish hubs for trade, investment and innovation, to promote regeneration and to make a significant contribution to achieving our net zero ambitions.

The Scottish and United Kingdom Governments have made a commitment to deliver a green freeport model that meets the needs of the Scottish economy and offers all the benefits that are available to those who are situated in freeports in other parts of the UK. LBTT relief is offered on that basis. It is part of a package of incentives for green freeports and is designed to be equivalent to the stamp duty land tax relief that is offered to other UK freeports, which will ensure that the overall objective of parity of treatment between freeports and green freeports is met.

The LBTT relief supports the wider programme by encouraging investment in specific tax sites on land that is underdeveloped or undeveloped. The legislation enables businesses to start to benefit immediately from the relief when the tax sites are designated, and the relief will be available for up to five years.

I welcome the evidence that has been submitted by a range of organisations in response to the Government’s call for evidence and the Scottish Government’s consultation on the draft instrument, and I look forward to members’ questions.

As you will appreciate, on the specific point about how individual local authorities choose to engage, it would not be appropriate for me, as a minister, to comment on decisions that are properly for them. Certainly, the Government’s broader approach, both on the development of fiscal economic policy and on wider industrial relations, is to have close engagement with our trade union partners.

I ask Laura Duffy to provide some background on the broader engagement that has taken place in the process of developing the proposal.

I certainly hope that we always consider ways in which to encourage people who are currently inactive and have the potential to re-enter the labour market to do so. Although I cannot speak to any specific strands of work with regard to targeting particular groups, we all hope that that would be an outcome of the approach and that some of the jobs that are created through the initiatives will create opportunities for people to re-enter the labour market and bring their skills to bear on an exciting set of industries.

The decisions that were taken on investment zones were a product of engagement between the Scottish Government and the UK Government. With regard to the decision-making process and criteria, while I seek to provide as much information as possible to the committee, I sincerely apologise: as I am not the lead minister in that area and it does not relate specifically to green freeports, I am not in a position to respond fully. However, I recognise the member’s interests as a committee member and as a regional representative, and I would be happy to respond in writing.

As you will appreciate, procurement is distinct. It is a devolved competency, but we have to operate within broader frameworks at UK and World Trade Organization level. It is distinct from employment law. I recognise that we have made significant progress on procurement over the past 17 years since the McClelland review. We published an independent report at the start of the year highlighting the benefits from the journey that we have been on with sustainable procurement. I recognise that there is much more that we can do in that space, and the issue was raised in the recently closed consultation on community wealth-building legislation. The analysis of that will be published later in the autumn. I highlight that in relation to the topical matter of procurement.

Where we can take action, we will, and when we are challenged to go further within devolved competencies, we will seek to do so.

There is a distinction between procurement, grants and property taxes—that is the important point. There is a distinction between what they are and how they are administered and what is possible. There are also issues with the measures in the programme that is being developed in relation to parity with what is available elsewhere in the UK.

On having responsibility for devolved taxes and non-domestic rates, I am keen to reflect on how we can use those levers and work in partnership with trade unions and businesses to incentivise fair work, but we have to make sure that, in considering that, we do not conflate it with distinct areas of policy such as procurement or giving grants.

We operate in a UK context, and we seek to engage constructively with the UK Government. The freeport model was brought forward by the UK Government, if I recall correctly, following the general election in 2019. We have sought to listen to the voices of business and other partners, including trade unions, and to engage constructively in development of the proposals.

We are now in a position in which we have managed to come to a joint approach with shared decision making. That reflects the fact that we have sought to engage constructively. If we continue to work in a constructive manner with the UK Government and the green freeport operators, we can seek to harness the opportunity to deliver positive economic outcomes for the green freeport sites and the wider Scottish economy, including by strengthening key strategic industries.

In touching on that point you are colliding with the reality of schedule 5 to the Scotland Act 1998 and the reservation of employment law. For example, we do not have the power to legally require trade union recognition in such contexts. We are trying to work constructively and in partnership with business and other partners to promote fair work. Although the Scottish Parliament does not have the power to legislate in those terms, we have a role, through leadership and the convening power of the Scottish Government, to seek to encourage businesses to adopt such practices. Throughout the process we have been clear about our expectations.