Scotland’s Economy

Jamie Stone Excerpts

Tuesday 15th October 2024 Westminster Hall

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

It is a pleasure to serve under your chairmanship, Mr Dowd. I congratulate the hon. Member for Glasgow East (John Grady) on a very thoughtful speech. I want to make three brief points.

When the North sea oil came, the then Labour Government saw to it that oil fabrication yards were established in different parts of Scotland, two of which in the highlands, at Kishorn and Nigg, I worked in. They were important because they helped halt and reverse highland depopulation—the curse of the highlands and islands for far too long. Welding and fabrication skills were relocated from Glasgow and the Clyde, and other parts of the UK, to those yards, and some of the greatest structures still working in the North sea today were built there, including the Ninian Central and Magnus platforms.

We have the skills there today, but they are ageing skills. The hon. Member rightly talked about the potential of renewables in the North sea, but virtually none of the nacelles and blades are made in this country. We have the fabrication and welding skills, so we should utilise them, as was done in the 1970s. If we do not do that, we are missing a trick.

My right hon. Friend the Member for Orkney and Shetland (Mr Carmichael) is rightly an avid exponent of the potential for space launch from Shetland. I, too, am a keen exponent of the potential of Sutherland in that regard. Orbex, which is based in Morayshire, currently employs 150 and hopes to have perhaps 500 by 2030. There is enormous potential, but the UK Government must match the level of funding coming from Germany and France for the space industry. That is a challenge for the Government, and I am sure they will do their best to meet it.

Lastly, so many of our skilled female workforce are unable to deploy their skills to the full to the betterment of Scotland’s economy because the care that they need for their children is simply not there. They cannot leave their homes to go out and make money for the family and serve Scotland in the best way they can. If we can get that right, we can realise the potential of our female workers; again, we would be very foolish not to.

Thank you, Mr Dowd—I believe I have kept within the allotted time.

[Peter Dowd (in the Chair)]

Yes, well done. I call Graeme Downie.

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[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

It is a pleasure to serve under your chairmanship, Mr Dowd. I am grateful to the hon. Member for Glasgow East (John Grady) for bringing forward this important debate on the state of Scotland’s economy. As he highlighted, there can be no doubt that Scotland’s economy has suffered from 17 years of SNP rule. It is impossible for me to mention all the many contributors to this morning’s debate, but I want to mention a few.

First, the hon. Member for Dunfermline and Dollar (Graeme Downie) rightly highlighted the multiple failures of the SNP over the last 17 years, not just in relation to economic policy, but in other areas too. The hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) talked about the importance of skills, particularly in rural areas such as his, and the same applies in my own area in the Scottish borders. Another challenge we face in the borders is access to childcare, which prevents young women from going back to work.

[Jamie Stone]

Does the hon. Gentleman accept my point that these skills are ageing? We still have them but, if we do not pass them on, they could vanish and it will be much harder to train a new generation of welders and fabricators.

[John Lamont]

I totally agree. We need to invest in the skills we have; otherwise they will be lost, particularly for more traditional industries. If the skills are lost there, they might never return.

I do not often agree with the hon. Member for Aberdeen North (Kirsty Blackman), but she highlighted an important point about the gap that is emerging, with skills in the oil and gas sector potentially being lost if the renewable sector does not accelerate more quickly. Those in the sector up in the north-east, in Aberdeen, highlighted that point repeatedly during my time as a Minister. They were concerned that there was such a stigma attached to the oil and gas sector now that new people were not moving into that area and would not then be able to move over to the renewable sector when that opportunity arose.

--- Later in debate ---

[Martin McCluskey]

Ports are essential to the future of our country, and coming from a constituency with an important and thriving port, I absolutely agree with my hon. Friend.

We are taking tough decisions, but change is under way and investment is now flowing into the country. Just yesterday, as many hon. Members have mentioned, the international investment summit brought the chief executives of hundreds of the world’s biggest companies to the United Kingdom. They announced £63 billion of investment and 38,000 jobs for the UK. The companies included Scottish Power and its parent company Iberdrola, which doubled their investment in the UK from £12 billion to £24 billion, and Greenvolt, which announced a £2.5 billion investment in Scotland. That will benefit the whole country.

[Jamie Stone]

I congratulate the Minister on his appointment; I am sure he will do a very good job indeed. I may be a Liberal Democrat, but I recognise that one of the greatest achievements for the highlands of the 1960s Labour Government was the establishment of the Highlands and Islands development board, which did a great deal to reverse depopulation. Today, under the auspices of the Scottish Government, Highlands and Islands Enterprise—its successor body—is a shadow of its ancestor. I wonder whether the Minister would agree to talk to the Scotland Secretary to see how, working with the Scottish Government, we can revitalise HIE.

[Martin McCluskey]

I understand the importance of the Highlands and Islands development board. My partner’s grandfather arrived in Scotland only because he was the chief engineer in the Cruachan power station. That part of my family is here because of the work of the Highlands and Islands development board, so I make the commitment to the hon. Member to speak to the Secretary of State about those issues.

Delivering significant change to Scotland’s economy means working in partnership across areas of policy, not just industrial policy and employment rights but planning, housing, skills and access to health services. Many of these areas are devolved, and we are committed to resetting the relationship between the UK and Scottish Governments. That does not mean that we will never disagree, but where we have shared goals, we should be able to work together. The Secretary of State for Scotland has already begun working with the Energy Secretary, Gillian Martin, and Deputy First Minister Kate Forbes on a range of issues since coming to office.

One of those issues, which was mentioned by both my hon. Friends the Members for Glasgow East and for Edinburgh South West (Dr Arthur), was universities. I would agree with them that universities are a jewel in the crown of the Scottish economy. They drive innovation, create jobs and new businesses and deliver world-leading research and education. I know that the universities sector will be crucial to the future of the Scottish economy.