The National Mission Oversight Group met for the first time on 30 June 2022. The next meeting is scheduled for 22 September 2022. The Group will meet every three months and dates of meetings will be agreed in advance for the following year. The National Mission Steering Group will advise accordingly.

Like all Non-Departmental Public Bodies, Scottish Canals has to comply with the requirements of the HM Treasury Consolidated Budgeting Guidance Framework which does not allow for underspends to be carried over financial years.

Scottish Canals is allocated a Grant in Aid budget for the year based on expenditure forecasted by the Organisation and balanced by the income it expects to generate. Any operating surplus that the Organisation generates should be used to reduce the Grant in Aid requirement.

Scottish Canals has benefitted from significant increases in Grant in Aid awards in recent years. Since 2019, the Organisation’s capital grant from the Scottish Government has increased by 87% and it has received an annual uplift in resource funding. In addition, during the Covid-19 pandemic, Scottish Canals benefitted from additional funding of £1.7m to meet a reduction in its revenues.

Scottish Canals, as with all public bodies, is operating in an unprecedented challenging environment for public funds. Despite this, the Organisation has benefitted from significant increases in both its resource and capital Grant in Aid budget allocations in the last few years. Since 2019, the Scottish Government has increased the Organisation’s capital grant allocation by 87%.

In the last 2 years, and as a consequence of the significant increases in its capital budgets, Scottish Canals has managed to reduce its backlog of works by 20%. This has been achieved alongside significant Scottish Government support for unplanned events such as the Union Canal breach at Muiravonside in 2020. This highlights the importance of the Scottish Government’s support for Scottish Canals.

Like all Non-Departmental Public Bodies, Scottish Canals are required to seek approval from the Scottish Government for funding proposals above agreed threshholds. This ensures that larger projects are both affordable and in the best interests of wider public funds spend.

Proposals relating to Stockingfield Bridge will be subject to this process and will require Scottish Government approval before any undertaking can be made. I have yet to receive such a proposal from Scottish Canals but will of course give any such proposal full consideration.

The Office for National Statistics confirmed Scottish Canals as a Non-Departmental Public Body (NDPB) effective from April 2020. Scottish Canals has a responsibility to ensure that it conducts its core business of maintaining and improving Scotland’s canal network and is resourced by the Scottish Government to do so. Since 2019, the Organisation’s capital Grant in Aid allocation has increased by 87% and this is enabling the Organisation to plan, progress and successfully complete projects of large scale as an NDPB.

Scottish Canals also retains the ability to operate commercially when appropriate and work is currently being undertaken by the Organisation to analyse the success of its investment activities in recent years. This analysis will be shared with the Scottish Government in due course alongside recommendations to Ministers on how the Organisation takes forward its investment activities as an NDPB.

Project Neptune was published on 8 September 2022 and can be accessed:

https://www.transport.gov.scot/publication/strategic-framework-of-options-for-the-chfs-network-project-neptune/

The Scottish Government has made a commitment in our National Strategy for Economic Transformation to “Build on the findings from the Business Purpose Commission Report, to inform how businesses can deliver positive impacts on prosperity, wellbeing – including tackling child poverty – and environmental sustainability. ”

The Business Purpose Commission for Scotland launched its report Now is the time for purpose: Putting purpose at the heart of Scottish business on 28 June 2022. The report is comprehensive, and makes recommendations for a range of stakeholders across business, governments, and tertiary education and training organisations. We are considering the recommendations carefully, with particular focus on the two recommendations for Scottish Government to lead. This requires significant cross- government engagement and we look forward to sharing our response when complete.

While employment law remains reserved to the UK Government, we will use our Fair Work policy to promote fairer work practices across the labour market in Scotland, including within the renewable energy sector.

We have concluded a public consultation on the action needed for Scotland to become a leading Fair Work nation by 2025. We will publish a refreshed Fair Work Action Plan this year, incorporating the views from our public consultation, and focusing on minority ethnic and disabled people’s employment and the gender pay gap.

Fair Work is a key driver for achieving sustainable and inclusive economic growth and a wellbeing economy. Through our flagship Fair Work First policy we are using the Scottish Government’s financial powers to drive fair work practices and achieve our ambition for Scotland to be a leading Fair Work Nation by 2025.

Through the landmark Bute House Agreement, we will strengthen Fair Work conditionality. We will introduce a requirement on public sector grants recipients to pay at least the real Living Wage to all employees and to provide appropriate channels for effective workers’ voice, such as trade union recognition, subject to limits on devolved competence.

In the National Strategy for Economic Transformation we have also committed to work with employers and trade unions in sectors where low pay and precarious work can be most prevalent to deliver sectoral Fair Work agreements, that deliver payment of the real living wage, better security of work, and wider "Fair Work First" standards.

Trade unions are key partners in delivering our economic and social aspirations. We will continue to promote strong trade unions and collective bargaining arrangements in all sectors, including the renewable energy sector. We have made a clear commitment to promote collective bargaining through the inclusion of an employee voice indicator, measured by collective bargaining coverage, within the National Performance Framework.

We also work closely with Scottish Renewables, the trade body for Scotland’s renewable energy industry.

Scottish Renewables played an active role in the development of the Climate Emergency Skills Action Plan (CESAP) which explores issues such as skills development and staff retention in many industries including Energy. Through CESAP’s Implementation Steering Group we engage with both employers and their workforce as they move through the just transition to net zero. We will continue to engage with partners to deliver the Climate Emergency Skills Action Plan (CESAP) and will move forward with improvements to the Green Jobs Workforce Academy.

ScotWind leasing is administered by Crown Estate Scotland who have confirmed that all companies that have a ScotWind seabed agreement with Crown Estate Scotland are required to comply with all applicable laws including meeting their obligations under employment legislation. Therefore, if those companies have a statutorily recognised trade union, they would be required to comply with their legal requirements in respect of collective bargaining arrangements.