3. To ask the Scottish Government what its response is to reports that no fabrication work for the Seagreen offshore wind farm project has been awarded to BiFab. (S5T-02400)

I am extremely disappointed that SSE decided not to award Burntisland Fabrications a contract for four jackets for its Seagreen project, particularly as BiFab’s bid for the contract was competitive with all other United Kingdom and European bids. This would have been a good opportunity for SSE to demonstrate its support for the Scottish supply chain during these challenging times.

The BiFab yards in Burntisland and Methil are both situated in my Constituency and have a huge impact on the local economy. Will the Cabinet secretary outline what support the Scottish Government can give to BiFab to aid the modernisation of the yards and to make it more competitive, allowing it to diversify into different sectors?

The Scottish Government, along with Fife Council, Scottish Enterprise and BiFab, sits on the Energy Park Fife investment group. We continue to support plans to modernise and standardise the yard in Methil; for example, we have recently paid for areas of the yard to be concreted, which is vital for its ability to attract other opportunities.

The highly skilled and experienced workforce at BiFab have been dealt a massive blow and are understandably devastated by the announcement. Scotland has huge potential for renewable energy production. What role can the Scottish Government and the United Kingdom Government play in the procurement process to assist companies such as BiFab to secure contracts and create jobs in the sector?

The key financial support mechanisms, such as the contract for difference auction process, are controlled by UK ministers and it is those mechanisms that are driving costs down, pushing risks down the supply chain, making it more difficult for the domestic renewables supply chain and enabling cut-price, low-labour-cost yards in the far east and middle east to win out. We continue to call on the UK Government to amend the contract for difference auction process, under which contracts are currently awarded solely on price, to better reflect value added to the economy and the importance of supply chain sustainability. With our limited devolved powers, we have supported the introduction of a supply chain development statement by Crown Estate Scotland as part of the Scotwind leasing round, which will help to release economic benefits for the Scottish economy.

Under Alex Salmond, the Scottish National Party promised 28,000 green jobs, but we have seen only a fraction of those. When will they be delivered?

When we have the powers of independence, we will be able to deliver that green revolution. Under devolution, we have a green investment plan, with a green investment package of priorities for investment. We will use every power that we have just now to make sure that we can deliver. However, until Maurice Golden’s party in the UK Government changes contract for difference, we will not see the jobs that we vitally need in Fife and elsewhere. Responsibility will lie where the powers lie, and we want the powers and the responsibility.

T he Crown Estate is about to embark on the first leasing round of Scotwind. Will the Cabinet secretary ensure that local content and fair work practices form part of the leases? Will she also ensure that companies’ historical commitment to fair work practices and local content will be taken into account when making agreements with them?

Clearly, the Crown Estate has its responsibilities in that, but, as I said in my earlier answer, the supply chain development statement that it has produced is part of that drive to make sure that the benefits of the procurement can lie with the Scottish supply chain. I take on board Rhoda Grant’s point about the fair work agenda being part of that and I will look into her point about retrospective issues.

The Presiding Officer:

I am afraid that we have to move on. There is a lot of interest in this question, particularly from local or Constituency MSPs, but we do not have enough time to accommodate them all.