Questions and answers

Question reference: S5W-00004

Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
Date lodged: Thursday, 12 May 2016
Current Status: Answered by Keith Brown on 31 May 2016

To ask the Scottish Government on what dates (a) officials, (b) the First Minister and (c) other ministers have held discussions with China Railway No. 3 Engineering Group and SinoFortone.

Officials became aware of SinoFortone’s possible interest in investing in Scotland in June 2015 via the Chair of the Asia Scotland Institute.

The First Minister’s office was contacted in July 2015 and in October 2015 regarding Sinofortone’s interest in investing in Scotland.

Officials held discussions with Sir Richard Heygate and Dr Peter Zhang representing SinoFortone on 16 December 2015, 3 February 2016, 9 March 2016 and 10 March 2016.

The First Minister met with Sir Richard Heygate and Dr Peter Zhang representing SinoFortone on 3 February 2016.

I was introduced to Sir Richard Heygate and Dr Peter Zhang on 9 March 2016 at an event on ‘Chinese Invests West Infrastructure Investment’ hosted by the legal firm Pinsent Masons.

Officials and the First Minister held discussions with Sir Richard Heygate and Dr Peter Zhang representing SinoFortone and China Railway No 3 Engineering Group on 21 March 2016.

There have been no meetings with representatives of China Railway No. 3 Engineering Group and SinoFortone since the memorandum of understanding was signed on 21 March 2016. Officials spoke with Sir Richard Heygate by phone on 8 and 9 April 2016 to clarify issues raised in the media.

Question reference: S5W-00006

Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
Date lodged: Thursday, 12 May 2016
Current Status: Answered by Keith Brown on 31 May 2016

To ask the Scottish Government for what reason the press release agreed between the Scottish Government and China Railway No.3 Engineering Group and SinoFortone regarding the memorandum of understanding signed on 21 March 2016 was published on the companies’ English language website only, and who took the decision not to publish it on the Scottish Government’s website.

Question reference: S5W-00028

Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
Date lodged: Thursday, 12 May 2016
Current Status: Answered by Keith Brown on 31 May 2016

To ask the Scottish Government what information China Railway No.3 Engineering Group and SinoFortone provided about their activities and those of their subsidiaries elsewhere in the world prior to the signing of the memorandum of understanding on 21 March 2016.

Question reference: S5W-00026

Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
Date lodged: Thursday, 12 May 2016
Current Status: Answered by Keith Brown on 31 May 2016

To ask the Scottish Government whether it considers it appropriate to enter into agreements with companies that have been allegedly implicated in human rights abuses or present a risk of gross corruption.

Question reference: S5W-00016

Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
Date lodged: Thursday, 12 May 2016
Current Status: Answered by Keith Brown on 31 May 2016

To ask the Scottish Government what representations it made on behalf of China Railway No.3 Engineering Group with regard to affordable housing in Falkirk in 2015.

Question reference: S5W-00027

Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
Date lodged: Thursday, 12 May 2016
Current Status: Answered by Keith Brown on 31 May 2016

To ask the Scottish Government what its position is on Amnesty International’s allegation that one of China Railway Group’s subsidiaries was involved in illegal forced evictions in the Democratic Republic of Congo and whether the Scottish Government will take this into consideration in deciding how to proceed following its signing a memorandum of understanding with China Railway No.3 Engineering Group and SinoFortone on 21 March 2016.

As the memorandum of understanding does not involve any legal, contractual or funding obligations or commitments on behalf of the Scottish Government full due diligence was not undertaken prior to the signing of the memorandum. The Scottish Government was therefore not aware that the Council of Ethics for the Norwegian Government Pension Fund Global had recommended in 2014 that China Rail Group Ltd, the parent company of China Railway No.3 Engineering Group, be excluded from the investment universe of the fund. Nor was it aware of Amnesty International’s allegation that the Congo International Mining Corporation, a subsidiary of China Railway Group, was involved in illegal forced evictions in the Democratic Republic of Congo.

In the event of any specific investment proposals being confirmed or any proposals for legal or contractual agreements being brought forward both reports will be considered as part of the full due diligence that will take place.

Question reference: S5W-00024

Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
Date lodged: Thursday, 12 May 2016
Current Status: Answered by Keith Brown on 31 May 2016

To ask the Scottish Government whether it carried out due diligence prior to signing a memorandum of understanding with China Railway No.3 Engineering Group and SinoFortone on 21 March 2016; what its position is on this matter, and whether it is standard procedure for the First Minister or other ministers and officials to sign agreements with companies for which the Scottish Government has not conducted background checks.

Prior to signing the memorandum of understanding, Scottish Government officials sought advice from the Scottish development international team in China and also assessed Sinofortone’s credibility in terms of their existing UK activity.

As the memorandum of understanding does not involve any legal, contractual or funding obligations or commitments on behalf of the Scottish Government full due diligence was not undertaken.

Whenever the Scottish Government is seeking to award a contract in relation to construction or the purchase of goods or services, procurement legislation sets out the criteria that can be used to select which companies will be invited to submit a bid. Criteria include the company’s suitability to pursue a professional activity, its economic and financial standing, and its technical and professional ability and include provisions in respect of when a bidder should be excluded from bidding because of, for example, conviction for corruption and/or child labour and other forms of trafficking in human beings.

Question reference: S5W-00017

Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
Date lodged: Thursday, 12 May 2016
Current Status: Answered by Keith Brown on 31 May 2016

To ask the Scottish Government whether it considers that it would be appropriate for it to sign an agreement with China Railway No.3 Engineering Group and SinoFortone to build homes in Falkirk, following its signing of the memorandum of understanding on 21 March 2016, if Falkirk Council had already rejected such a proposal from these companies.

Question reference: S5W-00022

Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
Date lodged: Thursday, 12 May 2016
Current Status: Answered by Keith Brown on 31 May 2016

To ask the Scottish Government whether officials were aware before the memorandum of understanding was signed on 21 March 2016 that China Railway Group had been blacklisted for investment by the Norwegian Government Pension Fund Global, and whether it has subsequently contacted the Norwegian Government Pension Fund Global or considered its recommendations.

Question reference: S5W-00013

Asked by: Willie Rennie, MSP for North East Fife, Scottish Liberal Democrats
Date lodged: Thursday, 12 May 2016
Current Status: Answered by Keith Brown on 31 May 2016

To ask the Scottish Government whether the First Minister expressed a preference that China Railway No.3 Engineering Group and SinoFortone invest in (a) affordable housing and (b) clean energy during discussions, as stated by Sir Richard Heygate on Good Morning Scotland on 8 April 2016, and whether she indicated that she would "like to get something moving this year" and, if so, on what date this occurred.

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