1. To ask the Scottish Government what action it is taking to assist businesses in the north-east that have been affected by changes in global oil prices. (S5O-00752)

The Scottish Government continues to support both businesses and individuals affected by the downturn in the oil and gas sector. The energy jobs task force is developing long-term solutions to the structural challenges that affect the sector, and our enterprise agencies have engaged with more than 700 companies in the oil and gas industry.

In addition to support for individuals through the transition training fund, we have provided a further £12.5 million to support innovation and business resilience, informed by the work of the energy jobs task force. That included £10 million of Scottish Enterprise funding to help firms to reduce risks associated with carrying out research and development. To date, around 78 innovation projects with a total project value of around £16 million have benefited from around £7 million of Scottish Government support. Some £2.5 million was set aside for business resilience reviews and for providing targeted support from industry experts, and there has been over £2.5 million of investment committed, so far.

Scottish Enterprise and Highlands and Islands Enterprise are providing practical assistance to the supply chain. They have run six resilience in oil and gas events, and welcomed 217 delegates from 144 companies to hear from experts on strategy, operations, finance and market resilience.

In addition, our competitive business rates package targets support where it is most needed, and rates increases are capped for around 1,000 offices in Aberdeen and Aberdeenshire, which is the local area that is most adversely affected by changes in the oil and gas sector. Councils are able to apply further rates reductions, and we continue to work with Aberdeen City Council and Aberdeenshire Council to inform that consideration.

Will the Minister outline what he believes to be the industry’s key asks of the United Kingdom Government at this time, to support the considerable work that has been done within the Scottish Government’s limited powers, and which might also allow companies and the oil and gas workforce to plan for the future?

I certainly recognise the balance between devolved and reserved powers. It is encouraging that the Chancellor of the exchequer has finally listened to the calls that I, my predecessors and the industry have been making repeatedly for some time, to ensure that the right assets are in the right hands. We have seen recently deals of that nature in asset transfers from Shell to Chrysaor and from BP to EnQuest. However, it is crucial that the UK Government turns talk into action rather than simply forming more talking shops.

Although a panel has been established, we really need it to come forward with concrete proposals that can help the industry. This week’s Oil & Gas UK bulletin highlighted the urgent need for fresh capital investment to stimulate activity and maximise economic recovery. We believe that steps must now be taken to incentivise investment and exploration. That would be of particular help to the supply chain, which is likely to continue to experience some tough times ahead.

As I outlined in my original answer, we are doing everything that we can within our devolved powers, but we really need the UK Government to step up, stop talking and do something to help the industry.

The Cabinet Secretary for Finance and the Constitution and the Minister for Business, Innovation and Energy have said that business rates that are raised locally and collected locally stay local, but Aberdeenshire Council councillors were advised this morning that, of the £116 million that they expect from business rates next year, they will get only £93 million from the Scottish Government. Can the Scottish Government tell us where that £23 million has gone?

Ross Thomson raises an important issue. However, as I stressed to tenants at an event in Inverurie—I think that Mr Thomson was present—revenue is retained by councils, but on a multiyear basis. I will ask my colleague Derek Mackay to provide further details on that mechanism so that Ross Thomson and other members understand it.

The Minister will know that 8,000 of the 10,000 businesses in the north-east that have been hit by the recent rates revaluation have had no benefit from the selective cap that was announced on 21 February. Will the Scottish Government now offer some support to businesses such as that which is owned by my constituents Graham and Linda Dawson, who have faced not only a 50 per cent increase in their rates liability, but have been taken out of any access whatsoever to the small business rates relief scheme as a result? Is Stewart Spence of the Marcliffe hotel and spa right?

He told this morning’s edition of

The Press and Journal

“I just don’t think they have grasped the problem in Aberdeen”.

As I hope Lewis Macdonald knows, and as has been explained in Parliament on several occasions, individual rates valuations are set by assessors; Scottish Government ministers do not have any role in such valuations. Any business, including the one that is run by Graham and Linda Dawson in Lewis Macdonald’s Constituency, can appeal. I have spoken to the assessor for Aberdeenshire, who is very keen to engage with businesses informally to see whether there have been mistakes in valuations, and to take forward any changes that would arise from that.

If the Dawsons were to be unhappy with the outcome of that, they could still make a formal appeal: they have up to six months to do so. I encourage them to engage with the assessor—who seems to be willing to have detailed discussions about individual businesses on an open-book basis—to see whether there has been unfairness in the valuation.

We continue to support businesses as best we can with national reliefs, and local authorities continue to provide local reliefs.