►
Description
1. Declaration of interests: Jamie Halcro Johnston will be invited to declare any relevant interests.
2. Decision on taking business in private: The Committee will decide whether to take items 4 and 5 in private.
3. Scottish Government’s Draft Budget 2018-19: The Committee will take evidence from-
Charlotte Wright, Chief Executive, and Sandra Dunbar, Head of Business Improvement and Internal Audit, Highlands and Islands Enterprise;
and then from—
Linda Hanna, Managing Director, Strategy and Sectors, and Iain Scott, Chief Financial Officer, Scottish Enterprise.
4. Scottish Government’s Draft Budget 2018-19: The Committee will consider evidence heard at today's meeting.
5. Work programme: The Committee will consider its work programme.
Published by the Scottish Parliament Corporate Body.
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A
Well,
good
morning
to
everyone
and
welcome
to
the
22nd
meeting
of
the
economy,
jobs
and
Fair
Work
committee
may
remind
everyone
to
turn
any
electrical
devices
they
have
to
silent,
or
else
turn
them
off.
Please
I
have
apologies
from
committee
member
Gordon
MacDonald
and
at
this
stage
I'll
invite
our
new
member
of
committee
of
Jamie
Hal
Co
Johnston
to
give
a
declaration
of
interest
thanks.
A
C
A
A
What
what
I
want
ask
is.
We
did
not
be
more
meaningful
from
our
point
of
view
if
annual
reports
could
be
published
earlier
by
yourselves,
and
the
question
is:
what
stops
the
agencies
from
publishing
their
annual
reports
in
say,
late,
August
or
early
September?
Why
can
these
not
be
published
sooner
to
give
this
committee
more
opportunity
to
look
at
them?
A
D
E
D
F
Well,
I
think
I
think
we
would
look
and
I
merely
came
with
orders
gone
to
try
and
accelerate
as
much
as
we
can.
Our
accounts
audit
process
and
I
think
we've
been
challenged
to
get
that
completed
prior
to
the
end
of
August,
but
we
do
try
and
issue
some
of
our
performance
information
as
close
to
the
euro
and
as
as
possible,
so
aligned
with
our
financial
information
to
our
performance.
Information
does
get
issued
and
more
to
me
ously,
but
we're
happy
to
speak
to
audit
Scotland
under
sponsor
team
about
how
we
might
accelerate.
D
A
B
D
A
couple
of
things-
maybe
I
could
address
there,
so,
firstly,
we
do
make
sure
that
the
the
outcomes
that
we
have
and
are
reporting
on
at
the
moment
do
map
onto
the
national
performance
outcomes.
So
it's
important
that
we
make
that
connection
between
what
we
do:
a
national
performance
outcomes
in
terms
of
the
work
that
is
still
progressing
with
the
new
strategic
board.
D
We
do
need
to
ensure,
from
highs
point
of
view,
that
the
things
that
are
part
of
our
remit,
particularly
supporting
communities
supporting
social
enterprises,
play
their
part,
probably
around
about
the
inclusive
growth
pillar
within
the
economic
strategy.
So
in
terms
of
that,
you
asked
about
evidence
of
that
alignment,
and
certainly
we
work
very
closely
with
our
colleagues
here
in
Scottish
Enterprise,
in
terms
of
our
reporting,
and
indeed
in
areas
like
internationalization
SDI,
does
work
with
us
and
supports
and
contributes
to
our
outcomes
on
international
trade
exporting
an
inward
investment.
B
D
I
think
we
see
this
as
a
really
good
opportunity
to
bring
together
the
works
at
work
of
the
agencies,
but
also
to
put
and
that
context
on
it
in
terms
of
those
really
important
indicators.
So
some
of
the
work
that
we've
seen
coming
out
of
that
to
date
through
the
early
stages
of
the
of
shadow
strategic
board,
that's
operating
and
really
show
that
that
move
towards
the
join
up
is
in
place
and
I.
D
Think
it
really
offers
an
opportunity
for
us,
and
certainly
our
own
economics
team,
to
participate
in
that
so
and
Gary
Gillespie
has
indicated
that
they
look
for
that
kind
of
support
from
nearly
the
relevant
agencies,
so
that
we
can
work
together
in
setting
out
what
those
new
indicators
are,
how
we
track
that
performance
and
how
indeed,
we
report
it
through
to
the
strategic
board
and
also
to
our
wider
constituencies
of
interests.
Because,
ultimately,
what
matters
there
is,
how
we're
judged
by
the
communities
and
businesses
we
serve
and.
D
G
Thanks
convener,
yes,
could
I
take
you
back
to
some
of
the
things
that
you've
just
been
speaking
about,
in
particular
the
different
presentation
compared
to
Scottish
Enterprise
of
your
spending
plans
and
I
mean
first
of
all,
could
I
just
ask
you
to
elaborate
why
you
have
got
things
like
supporting
businesses
and
social
enterprise,
strengthening
communities,
developing
growth
sectors
and
competitive
region,
which
are
quite
distinctive
areas
and
priorities
compared
to
the
overall
government
economic
strategy
and
the
Scottish
Enterprise
Assembly
of
targets?
Okay,.
D
So
those
four
priorities
are
the
priorities
which
high
has
used
for
rent
about
six
years.
However,
and
hopefully
we
made
it
clear
enough
submission,
if
not,
we
can
provide
some
further
information
on
how
those
four
priorities
actually
contribute
to
the
four
eyes
within
the
government's
economic
strategy,
and
indeed
a
number
of
them
contribute
to
more
than
one
of
those
four
eyes
and
from
high
Spector's
as
well
as
I
was
just
bringing
out
in
that
earlier
answer.
D
The
priority
of
strengthening
communities
is
obviously
a
key
foundation
of
what
Highlands
and
Islands
Enterprise
does,
and
it
remains
important
to
us,
so
that
comes
across
strongly
and
what
we
do
and
how
we
report,
given
the
outcomes
of
the
enterprise
and
skills
review
and
the
comments
that
we
received
back
about
how
is
Islands
enterprise
and
also
the
proposals
for
the
new
south
of
Scotland
agency,
who
are
very
interested
in
what
we've
done
on
the
strengthening
communities.
Remit
I
think
it
is
really
important
that
that
understands.
D
There
is
a
key
part
of
our
activities,
but
I
mean
Irene,
do
understand
your
point
and
how
we
make
sure
that
that
map's
back
to
the
government's
economic
strategy
and
how
we
can
demonstrate
that.
So
if
we
take
something
like
inclusive
growth,
there
is
a
substantial
amount
of
our
activity
in
our
strengthening
communities
measure,
particularly
around
place
and
productivity
and
people
that
contribute
to
the
inclusive
growth.
D
However,
there
is
activity
that
we
do
in
relation
to
the
competitive
region
and
I'm
thinking
about
our
major
investment
in
broadband,
which
we'd
also
see
as
part
of
our
inclusive
growth
approach,
because
that's
enabling
people
to
access
opportunities
through
the
provision
of
broadband,
so
that
that
mapping
is
there
and
it
hasn't,
come
across
clearly
from
our
submission.
We
can
certainly
provide
more
information
on
that
for
you,
but.
G
D
The
important
context
for
us
is
the
government's
economic
strategy
and
it's
my
job
and
the
role
of
our
organization
to
make
sure
that
we
perform
and
deliver
to
the
government's
economic
strategy.
Those
four
priorities
are
our
interpretation
of
how
we
can
best
present
that
economic
strategy
within
our
region,
taking
account
of
the
things
that
are
important
to
us.
D
So
in
terms
of
your
questions
about
assurances
so
I
suppose
we
have
had
that
in
relation
to
the
confirmation
of
the
continuing
role
and
remit
of
Highlands
Islands
enterprise
as
an
outcome
of
that
review,
I
haven't
yet
had
an
opportunity
to
speak
to
the
newly
appointed
chair
of
the
strategic
board,
but
hope
to
do
so
fairly
soon.
So.
G
D
I
think
we've
had
the
confirmation
both
for
us
and
for
their
communities
and
stakeholders
that
supported
us
during
the
review
process
that
Highlands
and
Islands
Enterprise
remains
with
its
board
and
its
remit.
So,
yes,
I
take
that
as
absolute
confirmation
and
affirmation
of
the
role
that
we
do
in
the
way
that
we
do
it.
A
H
Thanks
a
convener
I'm
looking
particularly
at
the
well
a
table
that
we've
got
headed
up:
Highlands
nails,
enterprise,
income
sources,
16,
17
and
1718,
which
I
think
comes
from
the
high
operating
plan
and
particularly
the
receipts
I
mean
in
one
sense,
they're,
not
huge
figures,
but
the
capital
receipts,
16:17,
3.1
million
down
to
two
million
and
revenue
receipts,
4.2
million
down
to
3.2
million
I'm,
not
sure
if
they're
kind
of
related
to
each
other.
So
could
you
just
maybe
give
us
a
little
background
as
to
why
these
figures
are
down.
D
D
I'm
sorry
I
should
just
make
it
clear
if
that's
okay,
that
our
Director
of
Finance
wasn't
able
to
join
us
as
he
had
a
cycling
accident
and
was
still
in
hospital
with
a
punctured.
Lung
Sandra
has
joined
us
with
not
loads
of
time
to
prepare
but
I'm
sure
we
can
answer
the
majority
of
your
financial
questions.
D
H
F
That
particular
one
you're
right
to
make
the
relationship
between
their
capital
receipts
and
the
revenue,
soup
receipts
and
expectations
in
terms
of
capital
receipts,
the
the
reduction
between
a
operation
plan
budget
for
1617
and
the
expectations
for
1718
as
a
result
of
M.
The
fact
that
our
capital
receipts
are
purely
are
largely
linked
to
our
property
portfolio
and,
as
our
property
portfolio
has
reduced
over
time,
because
we've
taken
advantage
of
disposing
of
some
attractive
properties
over
the
years
to
increase
our
income.
F
Our
potential
for
further
capital
receipts
is
reduced
and
also
as
a
Coolio
has
changed
over
time.
The
revenue
by
way
of
Rental
receipts
has
reduced
over
time
as
well,
so
they're.
Those
factors
are
clearly
related
to
our
property
portfolio
and
our
investment
portfolio
that
we
hold
in
terms
of
property
right.
H
H
F
Our
property
portfolio
is
really
a
significant
tool
for
us
in
terms
of
our
economic
development
and
offering
that
we
can
provide
to
clients
so
generally.
What
we
do
is
build
a
property
where
we
think
there's
an
economic
opportunity
that
might
flow
from
that.
So
we
and
prevent
and
startup
facilities
are
a
nice
campus,
for
example,
some
life
science
and
provision
that
can
be
accessible
to
life,
science,
clients
and
it's
a
really
attractive
inward
investment
opportunity
or,
as
part
of
the
package
that
we
can
offer
as
part
of
an
emergent
attractiveness
and.
H
F
D
D
The
Highlands
and
Islands
can
be
different,
for
example,
and
there
is
quite
a
considerable
need
for
land
and
industrial
premises
in
elgin
in
murray,
and
our
approach
to
that
has
actually
been
to
support
a
private
investor
directly
so
that
we
giving
finance
to
that
developer
for
them
to
take
forward
the
development.
So
if
we
can
stimulate
the
private
sector,
that's
really
the
first
route
to
do
it.
Where
that
can't
happen
or
won't
happen,
we
will
go
as
far
as
building
the
buildings
and
fitting
their
mouths.
That's.
C
Question
I
noticed
the
biggest
investment
in
the
helmets
and
islands
as
the
smelter
plant
in
Fort
William,
but
as
an
Associated
spending
with
regards
to
affordable
housing,
I
think
that's
in
the
brownfield
safe
to
assess
what
course
community
you
know
is
that
part
of
that's
programming
that
you're
talking
about
were
you
involved
in
that
or
the
discussions
or
assistance
in
any
way?
Yes,.
D
So
and
the
proposals
by
Liberty,
the
gfg
group,
who
now
own
the
Lochaber
smelter
and
associated
two
estates,
which
is
a
very
significant
land
holding
across
the
west
islands,
is
a
major
industrial
opportunity,
probably
the
biggest
for
a
for
generations
within
the
highlands
and
islands
and
you're
absolutely
right
that
the
the
key
constraining
factor
for
those
development
opportunities
is
actually
about
attracting
the
talent
and
the
workforce
and
to
do
that
to
provide
the
affordable
housing.
So
there
is
actually
a
really
good
coordinated
response
in
place
to
that
development.
D
Opportunity
with
colleagues
from
Scottish
government,
including
housing,
and
also
Transport
Scotland,
because
there
are
major
transport
constraints
on
that
part
of
the
a
82
as
well
and
also
in
terms
of
skills
development.
So
it
actually
a
really
significant
program
of
activity
that
we're
taking
forward.
But
you
did
absolutely
put
your
finger
on
it
in
that.
D
Affordable
housing
is
already
a
problem
in
that
area
and
there's
a
concern
to
the
local
community
who
were
very
encouraged
by
the
smelter
having
a
great
future
now
compared
to
the
potential
threat
to
it
previously
that
are
concerned
about
how
the
local
community
can
respond.
To
that
opportunity,
and
that
the
pressure
of
excuse
me
on
housing
and
transport
is
particularly
acute.
I
Know
this
is
another
question
on
the
but
the
budget
process,
given
that
you
get
on
an
annual
basis
less
than
a
year's
notice
of
the
government
allocation
to
you,
probably
less
than
a
year.
How
does
this
enable
you
to
plan
for
the
long
term?
You
know
how
does
this
enable
you
to
plan
three
years
in
advance?
For
example,
when
you
don't
know
what
budget
levels
coming
down
the
pipeline,
because
it
changes
on
an
annual
basis,
for
example,
I
see
that
spending
on
growth
sectors
was
down
13%
last
year.
D
There's
a
couple
of
mechanisms
that
we
we
use
within
that
planning
process
at
the
moment
you
know
I'm
supposed
to
a
degree
having
been
accustomed
to
that
as
the
pattern
of
how
we
we
know
about
our
budgets
that
we
have
developed
tools
of
working
round
about
that.
So
one
of
the
key
things
that
we
do
is
are
supposed
to
prioritize
the
work
with
businesses
and
communities.
D
E
D
We
use
our
budget
depending
on,
what's
happening
with
business
demand
in
the
community
as
well.
Additionally-
and
we
discussed
this
with
audit
Scotland
in
terms
of
the
accounts
process
this
year-
to
have
a
more
formal
and
scenario,
planning
response
and
they're
quite
keen
to
work
with
us
on
that
right.
I
D
The
use
of
our
money,
as
well
as
prioritize
which
of
the
projects,
are
most
important.
We
do
have
a
saying
in
islands,
islands,
enterprise
that
no
product,
no
good
project
will
go
unfunded.
So
if,
tomorrow,
something
lands
in
my
lap
that
wasn't
expecting,
which
is
a
fantastic
project,
we
will
ensure
that
we
review
our
prioritization
to
make
sure
that
that
would
happen.
Sandra's
team
is
quite
close
to
that
process.
You
might
want
to
add
something:
yes,.
F
I
D
J
Thank
you
convenient
in
a
news
release
in
me.
You
indicated
that
you'd
met
or
exceeded
all
of
your
targets
in
2016-17
I
know,
then
your
operating
plan
for
2017-18
your
targets
remain
much
the
same.
Are
you
being
ambitious
enough
in
terms
of
the
support
you
provide
and
the
outcomes
you
are
seeking
to
achieve.
D
Well,
I'm
gonna
answer
that
question
by
saying:
yes,
because
we
are
an
ambitious
organization
and-
and
we
consider
very
carefully
when
setting
those
targets,
whether
they
are
stretching
enough.
Indeed,
what
we
did
do
was
increase
the
job
numbers
in
our
fragile
areas.
So,
whilst
the
headline
job
budget
sorry
target
number
has
remained
the
same,
we
are
keen
to
make
sure
that
the
proportion
of
those
jobs
in
our
fragile
areas
has
increased.
As
that's
an
important
focus.
D
We've
also
introduced
an
additional
measure
this
year,
so
that
we
are
tracking
the
average
wage
of
the
jobs
that
we
support
and
that's
important
for
a
couple
of
reasons,
obviously
making
sure
that
we
have
a
handle
on
what
those
wages
are
of
jobs
that
we're
supporting
is
important
and
also
tracking.
That
really
is
a
a
proxy
I
supposed
to
productivity
in
that
pushing
wages
up
also
encourages
productivity
overall
and.
J
D
And
I
will
say
that
that
just
presents
some
challenges
in
some
sectors,
because
obviously
there
is
a
you'd
be
aware,
really
a
difference
between
some
of
the
higher
paying
sectors
which
influenced
that
average
number,
such
as
my
sciences,
sector
or
technology
advanced
engineering,
where
they
tend
to
be
high
wage
rates
and
the
most
significant
sectors
in
the
Highlands
anions
are
both
tourism
and
food
and
drink.
Where
traditionally,
they
are
at
the
the
lower
end
of
that
wage
level.
J
J
D
Our
view
on
that
is
what
we're
focusing
in
on,
and
we
do
this
across.
Our
measures
is
that
our
target
measures
and
our
performance
is
directly
attributed
to
the
support
that
we
provide
when
we
do
track
the
average
wages
across
the
highlands
and
islands
as
well.
So
when
we
report
to
our
board,
we
also
have
a
tracking
measure
of
average
wages
across
India,
a
sub
regional
level
within
the
highlands
and
islands.
D
So
it
is
important
to
us
that
we're
seeing
what's
happening
in
the
economy
as
a
whole,
but
our
focus
in
how
we
target
our
resource
is
that
we
make
sure
that
we
can
define
the
attribution
between
our
support
and
what
the
outcome
of
that
is
ie.
Hopefully
those
higher
wages
and
target
it
that
way
specifically.
But
we
do
track
in
terms
of
those
economic
indicators
across
the
region.
J
Given
that
your
your
job
support
to
target,
for
example,
is
1688
1688
and
the
number
of
jobs
and
Highlands
and
Islands
I,
don't
know
how
many
it
is,
but
it's
vastly
more
than
that
I
mean
we
did
not
be
more
appropriate
to
target
your
support
that
making
sure
that
average
wages
right
across
the
region
increase.
So.
D
Suppose
that's
just
about
making
sure
that
we
make
the
best
use
of
our
resources,
so
the
the
leverage
there.
We
can
make
sure
that
we're
we're
supporting
an
element
of
business
that
that
drives
the
job,
the
wage
levels
up
and
just
to
pick
up
that.
The
number
that
you
quoted
I
was
actually
are
out
tuned
for
1617
in
terms
of
their
jobs,
supported
rather
than
the
target
number.
J
Point-
and
this
is
a
general
point
for
you-
know-
enterprise
agencies,
obviously
Hansen
and
Enterprise
in
its
predecessor,
the
Highland
Board
have
been
in
existence
now
for
over
50
years
and
achieved
quite
a
bit.
But
how
confident
are
you
that
the
work
you
do?
The
interventions
you
make
are
actually
delivering
the
kinds
of
outcomes
you
seek?
In
other
words,
if
I
didn't
exist
and
what's
the
counterfactual
in
relationship
to
economic
performance
across
the
high
region,
right.
D
So
that's
a
big
question,
so
the
good
thing,
I
guess
about
hie
and
hie,
be
having
been
around
for
a
long
time
that
we
have
been
able
to
track
some
of
those
longer-term
indicators.
And
indeed
you
know.
Our
review
is
that
some
of
those
bold
strategic
decisions
are
really
long
term
in
terms
of
their
game
and
the
key
headline
trigger
that.
We
would
also
always
mention
when
asked
about.
Well
what
difference
have
we
made
and
this
time
the
biggest
impact
is
on
the
population
of
the
Highlands
and
Islands.
D
So,
as
you'll
know,
in
the
1960s,
people
were
leaving
the
Highlands
and
Islands
in
absolute
droves,
and
there
was
a
real
issue
in
terms
of
that
population
now,
I'm,
not
sure
that
I
can
claim
all
of
that
success
of
the
region.
But
we
do
see
that
we've
had
a
significant
role
in
that
and
we
do
have
evaluation
and
figures
which
support
that
population
and
the
Highlands
and
Islands
is
rising
not
everywhere
and
are
some
areas
that
continue
to
give
us
concern,
and
it's
currently
around
four
hundred
and
seventy
thousand.
D
Clearly,
the
growth
of
in
Vanessa's,
the
city
has
made
a
big
difference
to
the
region
and
its
growth
has
been
considerable
even
over
the
last
two
decades,
if
not
going
back
as
far
as
that
fifty
years,
so
we
do
have
some
really
long-term
indicators
and
evaluation,
which
would
demonstrate
that
progress
of
the
region
and
highs
rule
in
it,
as
well
as
some
shorter
term
studies
as
well.
So
if
there's
anything
that
would
be
helpful
to
give
you
more
detail
on
and
happy
to
share
that
with
you.
Okay,.
J
J
The
Karen
Gorham
estate
and
the
least
two
natural
retreats
that's
been
brought
into
focus
recently
by
demolition
of
the
ski
uplift
facilities.
Local
businesses
and
communities
have
formed
a
campaign
to
take
over
the
management
of
that
estate.
You'll,
be
aware
of
this
controversy
and
I'm
wondering
whether
you
would
consider
reviewing
this
lease
in
the
future
of
the
Syria,
given
the
amount
of
concern
there
is
about.
What's
going
on
so.
D
I
take
very
seriously
the
the
current
issues
that
I've
heard
from
a
variety
of
groups
within
the
community
and
wider
stakeholders
around
about
can
gone.
It's
a
really
special
place.
As
you
know,
and
as
guardians
of
that
estate,
we
have
a
an
interesting
set
of
responsibilities
around
and
the
environment
and
the
particular
set
of
designations
that
Ken
ghorm
has
about
the
ski
area
and
our
obligations
around
running
the
ski
area
and
supporting
that
through
Alysse
with
the
operator
natural
retreats
and
some
of
those
things
are
in
conflict
for
some
of
our
stakeholders.
D
So
we
have
a
number
of
people
who
will
write
to
me
regularly
who
are
concerned
about
environment
and
a
number
of
correspondents
who
write
to
me
regularly
about
skiing,
and
we
do
need
to
ensure
that
we
get
the
balance
right
between
those
two
things
in
relation
to
the
specific
taking
down
of
equipment
in
their
Keast
area.
That
equipment
hadn't
been
used
for
over
10
years
and
was
beyond
the
state
of
being
able
to
be
reused
and
actually
better
for
the
environment
that
we
took
that
equipment
away
in
terms
of
the
future
of
skiing
and
Kengo.
D
D
Skiing
is
very
important
to
the
winter
trade
for
the
Strasse
Bay
area
and
business
is
quite
rightly
you're
concerned
that
that
continues
to
be
a
successful
ski
area
which
draws
people
therein
in
the
winter.
There
are
challenges
in
terms
of
snow
for
all
of
those
ski
areas,
and
we
are
looking
across
all
of
the
ski
centers
to
look
at
other
options,
including
potential
of
snow
making
facilities.
Both
a
Kangol
and
the
other
centers
are
interested
in
that
as
well.
D
We
are
working
through
our
community
assets
team
to
support
the
community
group
who
expressed
an
interest
in
taking
over
the
the
key
stereo
of
the
mountain,
and
we
will
support
them,
as
we
were
any
other
community
group
to
understand
what
the
opportunity
and
challenge
might
be
for
them
to
take
that
forward.
While
she
also
maintain
our
role
as
landlord
and
my
landlord
to
natural
retreats
this
ski
operator,
that's
an
important
relationship
for
us
too.
So
I
understand
that
that's
quite
a
balance
of
things
to
be
able
to
manage.
D
D
So
we
wanted
to
get
in
an
operator
who
could
run
that
as
part
of
that
procurement
process,
and
what
came
out
of
that
procurement
process
was
the
requirement
for
some
investment
in
facilities
in
kangin,
that
we
would
offer
a
four
million
pound
loan
for
and
that
natural
retreats
have
some
plans
which
I
think
have
been
add
quite
publicly
to
upgrade
facilities
and
the
restaurant
put
in
place
an
artificial
ski
slope.
These
things
are
currently
going
through
the
planning
process,
so
they'll
be
the
main
investments
in
the
ski
area.
D
C
C
D
D
C
C
H
Convener,
it
was
to
kind
of
build
a
bit
on
some
of
the
things
ID
Whiteman
was
asking
about
the
25,000,
the
new,
a
measure
that
you
have
in
for
average
salaries.
You
can
just
explain
a
little
bit
more
why
that
particular
figure
was
chosen
rather
than
you
know,
what's
kind
of
round
figure,
I
suppose,
rather
than
20
or
30
or
26
or
27,
or
you
know
anything
else
and
I
mean
the
presumably
there
could
have
been
other
measures
that
you
chose.
Can
you
just
explain
again
why
you
chose
oh.
D
Yes,
so
the
choice
of
tracking
and
measure
itself,
in
terms
of
average
wage
for
our
jobs
supported,
was,
as
I
say,
to
give
us
a
form
of
proxy
for
productivity,
so
that
where
we
can
see
wage
rises
across
activity,
then
that
indicates
a
move
towards
productivity.
Overall,
the
choice
of
the
number
was
to
give
us
something
which
actually
is
a
target
for
the
region,
so
25,000
is
above
the
average
wage
in
the
region
at
the
moment.
So
the
is
a
a
significant
challenge
to
see
that
happen.
D
Particulars
as
mentioning
sectors
like
food
and
drink
and
tourism
are
so
significant
in
the
highlands
and
islands
and
their
wage
rates
are
lower.
So
we
will
we-
and
we
have
seen
that
to
date
in
tracking
the
performance
so
far
this
year,
that
we
have
seen
some
at
the
job
supported
come
in
at
significantly
higher
than
that,
and
there
is
a
concern
still
for
us
which
we're
monitoring
that
some
are
coming
in
lower
than
that.
H
D
Probably
the
biggest
factor
is
is
actually
the
sector
there,
so
that
I
think
I
mentioned
earlier
sectors
right,
life
sciences
or
technology.
Led
sectors
tend
to
have
higher
wage
rates.
So
within
the
highlands
and
islands
to
take
an
example
and
lights
can
Scotland,
which
is
a
Johnson
&
Johnson
company,
who
we
supported
during
last
year,
and
their
wage
rates
are
high.
Yes,
they're
American
company,
but
in
terms
of
the
jobs
that
they
have
created,
the
innovation
and
actually
the
support
that
they
have
given
to
the
community
through
their
corporate
social
responsibility,
has
been
quite
significant.
D
We've
also
seen
our
spin-out
companies
coming
out
of
Johnson
&
Johnson
with
people
who
have
left
there
and
started
up
other
companies
so
overall
and
I
think
there
is
evidence
there
that
strongly
supports
this.
That
and
international
companies
who
innovate
an
export
actually
make
a
very
strong
impact
in
both
economic
and
social
terms
and.
H
With
the
range
of
wages
be
important,
I
mean
see,
one
company
had
Australian
work
out
some
figures
quickly.
You
know
they
paid
some
one
person
hundred
thousand
and
then
15
people,
20
thousand
and
another
company
paid
all
16
25
thousand,
so
the
average
would
be
the
same.
Is
that
a
factor
for
you
that
was
a
bigger
spread
or
yeah.
D
But
I
think
you
yeah
you're
right,
and
that
is
something
that
we
will
look
at.
So
when
we
get
when
we're
supporting
jobs,
we
will
get
that
breakdown
of
the
full
range
of
jobs
that
were
supporting
in
the
wage
levels,
because
obviously
that
supports
us
to
work
out
that
average
number
and
ideally
we
would
want
to
see
all
wages
hitting
that
that
threshold
that
we've
set
you
do
get
both
scenarios
that
you've
described.
D
To
be
honest,
so
you
may
have
something
where
there
is
management
level
jobs
which
are
perhaps
attracting
those
more
significant
figures
and
then
other
jobs
much
at
the
lower
end.
So
sometimes
there
is
a
big
range
and
sometimes
they
are
tighter
together.
It
really
depends
on
the
business,
the
scale
of
the
business
and
the
sector
that
they
are
in.
So
there
are
a
number
of
examples
in
both
ends
of
the
scale
that
you've
Illustrated
there.
Okay.
H
D
So
we-
and
we
know
that
you've
expressed
interest
in
this
in
the
past
from
this
committee
and
we've
submitted
information
to
you
that
we
are
tracking
that
and
tracking
also
and
the
gender
bias
in
relation
to
both
ownership
and
senior
management
rules
across
both
businesses
and
social
enterprises.
Whether
there
is
a
difference,
we
do
find
Thanks.
H
The
Scottish
Government
when
they
were
responding
to
our
gender
pay
gap
report
talked
about
your
business
values
lidar.
If
I've
got
the
title,
correct
aim
and
they
said
Court
enables
each
hie
to
measure
the
extent
to
which
both
account
managers
and
non
account
manage.
Businesses
and
social
enterprises
demonstrate
innovative
workplace
practices
which
reflect
the
Scottish
business
pledge
elements.
Could
you
tell
us
a
little
about
this
business
values?
Yes,.
D
We've
taken
this
approach
in
a
few
areas.
We
now
have
five
sort
of
ladders
of
progression
and
business
values
as
one
of
the
the
ones
that
we've
introduced
recently.
So
that's
really
helpful
with
the
ladder
I'll
have
between
five
and
seven
rungs
on
it,
which
we
label
enable
us
to
plot,
through
our
account,
managed
or
supported
companies
where
they
are
in
terms
of
that
ladder
of
progression,
so
whether
there
are
early
stages
in
relation
to
the
kind
of
indicators
that
would
support
business
values
or
they're
an
absolute
exemplar.
D
What
that
enables
us
to
do
then,
is
target
our
assistance
particular
t
to
ensure
that
movement
up
the
ladder
and
progress
that
that
way.
So
we
also
use
those
ladders
in
innovation,
internationalization
and
community
capacity,
as
well
as
we
found
them
to
out
a
qualitative
aspect
to
our
measurement
framework.
That's.
G
3,
so
do
you
look
at
the
wage
ratio
inside
the
the
companies
that
you're
working
with
and
that
receiving
investment
and
other
forms
of
support,
which
kind
of
reflects
John
Mason's
point
about
the
Micra
somebody
at
the
very
top
who
earns
15
times
more
than
the
person
that
the
lowest
pay
grade?
Do
you
look
at
that
ratio?
Is
my
first
question?
The
other
quick
excuse
me,
the
other,
quick
supplementary.
G
You
mentioned
about
ownership,
being
something
that
you
look
at
I
mean:
do
you
discern
any
difference
in
things
like
weight,
race,
equality
of
wage
rates,
wage
ratios
in
companies
which
are
in
the
social
economy?
Maybe
employee
owned,
for
example,
which
I
know
you've
been
doing
quite
a
bit
of
work
on
recently.
Okay,.
D
So
in
relation
to
the
ratio
high
to
low,
so
we
do
track
and
what
we're
capturing
is
the
wage
rates
of
the
jobs
that
we
support.
So
that
can
vary.
So
if
it's
an
extension
to
a
manufacturing
the
production
facility,
there
may
be
a
mix
of
jobs
there,
so
some
of
them
might
be
actually
hands
on
manufacturing
and
an
element
of
the
management.
So
it
might
not
give
the
full
answer
to
your
question
as
what
I'm
saying
there
that
we
might
not
have
the
full
picture
for
the
full
organization.
D
You
know
at
the
end
of
the
year
when
we
see
what
that
the
outcome
of
this
is
and
see
how
successful
this
has
been
as
a
tracking
measure
for
us
that
would
be
useful
to
come
back
and
discuss
that
in
more
detail.
I
think
the
second
part
of
your
question
was:
are
the
wage
rates
different
within
social
enterprise
and
business
and.
D
Certainly
within
social
enterprise
and
business,
and
that
does
tend
to
be
a
difference
and
usually
in
social
enterprises,
those
wage
rates
are
going
to
be
lower.
There
tends
to
be
less
of
the
scale
that
we
spoke
about
earlier
in
terms
of
high
wages
at
the
top
and
lower
wages
at
the
bottom.
I
am
making
some
generalizations
here
and
just
an
employee
ownership
that
can
vary
so
I
mean
there
are
some
standout
employee
ownership
companies
in
the
Highlands
and
Islands.
B
It's
just
on
an
inclusive
growth
growth,
January.
Actually
I
was
just
wondering
how
how
you
feel
that
you,
whether
you
can
deliver
that
consistently
across
all
the
parts
of
the
Highlands
and
Islands,
what
might
be
whether
there
are
areas
that
you've
identified
would
be
harder
to
deliver
that
and
what
the
barriers
might
be
to
that
yeah.
D
So
your
question
goes
to
the
heart
of
what
we
do
in
in
Islands
underpriced,
because
that's
a
really
important
fact
to
us
and
when
we
look
at
the
economy
of
the
Highlands
and
Islands,
we
actually
look
at
it
as
a
set
of
smaller
economies
which
operate.
They
do
operate
quite
differently.
You
know
that
from
your
own
experience
in
in
Orkney,
it
is
different
to
mainland
Scotland.
D
Absolutely
so
we
do
need
to
make
sure
that
we
look
at
both
the
opportunities
and
the
challenge,
our
approaches
about
place-based
activity
so
that
we
can
capitalize
on
natural
assets
where
they
exist.
So
you
know
the
opening.
Examples
will
be
well
known
to
you
where
work
around
the
European
marine
energy
center.
What's
happened
in
in
energy
as
a
whole,
there
is
really
significant
and
has
actually
pushed
up
wage
rates
for
international
companies
to
Orkney.
B
I
also
just
another
old
kind
of
pan
regional
kind
of
organization,
Highlands
and
Islands
Enterprise.
How
close
do
you
work
with
them,
both
on
the
you
know,
bringing
the
younger
people
into
the
Highland
science
to
study,
retaining
younger
people
into
their
working
lives
and
also
helping
I
suppose
develop
entrepreneurship
and
businesses
and
providing
sort
like
that?
Yes,.
D
So
I
mean
the
the
university
of
the
highland
science.
Assay
is
a
critical
partner
for
us
and
I.
Think
we
see
our
progress
is
very
much
interlinked
with
theirs
and
before
the
UHA
was
a
university.
If
you
just,
we
would
have
said
that
was
the
number
one
priority
for
the
highlands
and
islands
to
ensure
that
that
institution
received
university
status
has
made
a
significant
difference
and
it's
distributed
model
of
using
the
college's
across
the
highlands
and
island
is
absolutely
right.
D
So
yet
University
of
the
Highlands
Islands
is
the
key
regional
University,
but
where
we
can
bring
others
in
who
can
add
value
or
partner
with
the
UHI
or
bring
something
particular
and
again
back
to
Orkney.
Heriot-Watt
have
been
in
strom
maths
for
over
25
years,
obviously
for
a
particular
reason
as
well
and
very
successful,
and
we
are
now
working
with
Orkney
Islands
Council
through
a
joint
venture
to
develop
a
new
campus
in
strom
Ness,
which
will
maximize
that
presence.
Therefore,
heriot-watt
and
Robert
Gordon
are
also
interested
in
becoming
part
of
that
so
yeah
UHI
critical.
D
Not
only
are
the
skills
gaps,
but
that's
actually
a
people
gap
as
well,
and
and
when
we
meet
with
businesses
and
are
as
part
of
our
board
activities,
we
have
business,
breakfasts
and
engagements
with
businesses.
This
will
always
be
one
of
the.
The
top
issues
is
actually
attracting
and
retaining
both
people
and
then
people
with
the
right
skills
if
I
was
categorizing
them
broadly.
There
is
a
challenge
around
digital
skills.
That's
not
just
an
issue
for
the
Highlands
and
Islands.
I
Justified
no
question:
can
I
ansari
ask
how
you
set
your
performance
targets
because
I
believe
you've
met
your
targets
for
this
current
year.
The
ministerial
letter
of
guidance,
which
sets
out
the
strategic
priorities,
is
more
a
summary
of
government
policy.
It
doesn't
actually
set
out
targets.
So
can
you
talk
us
through
how
you
set
your
targets
involving
the
government
as
well
as
the
agency
itself?
Yes,.
D
So
obviously,
looking
at
what
we've
done
in
the
previous
year
is
an
important
part
of
that
we
do
examine
what
we'd
call
our
pipeline
of
what,
because
you
know
the
activity
doesn't
just
happen
in
year.
It's
being
planned
often
for
a
number
of
years,
so
that
we
can
get
a
realistic
feel
of
what
were
likely
to
achieve
in
terms
of
some
of
those
key
indicators
like
jobs,
turnover
and
the
communities
that
were
working
with.
D
And
then
we
will
stretch
that
as
part
of
our
process
with
our
high
board
as
well,
so
that
I'll
take
a
draft
plan
to
them
and
they
will
challenge
us
on
that
and
encourage
us
also
to
be
ambitious.
So
it's
a
process
which
looks
at
what
we've
done
in
the
past,
what
we're
expecting
to
happen,
what
the
economic
challenges
are
and
working
with
our
high
board
and
sponsor
team
colleagues
to
set
that
at
the
right
place.
So
that
is
challenging
ambitious
new
for
us
and
does.
A
E
E
A
A
A
A
First
of
all,
Ian
Scott,
who
is
the
chief
financial
officer
and
Linda
Hanna,
is
the
managing
director
of
strategy
and
sectors.
So
thank
you
for
coming
in
today
and
I'd
like
to
start
by
asking
a
question
about
the
annual
reports
that
you
issue
and
I
think
you
were
both
in
the
last
session.
When
I
asked
this
question
and
it's
the
question
is,
we
did
not
be
possible
to
publish
your
annual
reports
earlier
for
the
purposes
of
this
committee,
so
that
we
would
have
more
opportunity
to
look
at
them
in
the
framework
of
the
budgets.
L
Yeah,
yes
convenor.
It
certainly
would
be
possible
to
do
that.
We
aim
every
year
to
have
their
accounts
signed
off
by
a
board
towards
the
end
of
June,
sometimes
early
July.
We're
then
going
to
the
holiday
period,
but
those
should
be
available
as
soon
as
recess
is
over
to
lay
in
Parliament
and
then
the
be
available
to
the
committee
thereafter.
So
the
requirement
for
that
we're
happy
to
do
that.
L
They,
the
annual
games,
are
also
quite
a
technical
document,
not
the
best
way
to
describe
what
we
actually
do,
sometimes
so
but
happy
to
do
that
and
annotate
them
for
in
any
way
the
committee
would
want.
Hopefully,
the
information
that
we
gave
forward
to
space
and
the
analysis
of
that
will
be
useful
for
today's
meeting.
Perhaps.
A
M
L
M
So
I
know
it's
always
at
least
that
they're
available
there
bailable
earlier,
because
that's
the
date
under
Lena
Wilson's
signature.
So
the
point
you
were
making
is
they
signed
off
at
the
start
of
the
summer.
They
should
be
able
to
be
laid
at
the
start
of
of
the
new
parliamentary
term.
Why
weren't
they
done
this
year
and.
L
Really
just
because
we
historically
we
have
gone
for
Emily
September.
We
thought
that
that
fits
well
with
the
normal
process.
It's
not
something
that
we
generally
talk
about
our
budgets
good
to
me,
but
I'm
happy
to
do
that
in
future.
We
can
do
that
as
a
great
able
to
point
out
the
st.
general
at
the
end
of
June,
beginning
of
September.
L
A
K
So,
thank
you
very
much
for
your
questions.
So
over
the
summer
the
partners
have
been
particularly
working
and
Charlie.
I
talked
about
that
in
the
previous
session.
In
the
shadow
board,
the
implementation
board
that's
been
working
in
with
em,
not
just
the
agencies,
but
with
our
partners
and
teams
of
Commerce,
the
FASB
and
others
really
to
provide
the
kind
of
foundations
for
the
new
strategic
board.
K
Part
of
that
has
been
looking
at
a
new
measurement
framework
led
by
Scottish
Government,
but
part
of
that
has
also
been
looking
at
a
plan
for
the
new
strategic
board
and
how
that's
going
to
help
drive
that
collaboration
and
further
alignment
across
the
agencies.
So
in
terms
of
your
question
about
what
evidence
we're
seeing
so
we're
seeing
very
clearly
coming
together
around
some
key
collaborative
actions
that
will
be
recommended
to
the
strategic
board.
I
am
where
the
agencies
will
begin
and
publish
that
sure.
K
The
things
that
we're
working
on
how
that's
going
to
drive
improvements
in
the
economy
particularly
are
in
the
drivers
of
productivity,
and
so
we've
already
been
working
together
in
the
enterprise
and
skills
review
top
quite
a
lot
of
big
things
that
we
do
together.
But
this
is
about
really
kind
of
big
actions
that
we
think
that
we
could
be
doing
even
more
of
so
for
an
example.
The
work
that
we're
doing
already
are
in
manufacturing
action
plan,
which
is
in
program
for
government
and
has
been
for
a
number
of
years.
K
Some
further
work
around
that
some
further
work
around
SFC
and
HDA
surveying
the
kind
of
skills
alignment
process.
There's
talk
about
how
people
do
that,
there's
actions
around
what
we're
doing
around
innovation.
So
there's
things
in
there
where
we've
worked
together
around
either.
What's
come
out
of
the
fees
to
review
report,
or
also
things
that
we
know
are
needed
in
terms
of
looking
at
the
economy
and
all
of
that
work,
certainly
over
the
summer
has
been
very
much.
K
We
ran
trial
that
talked
about
we're
all
very
pleased
about
having
an
analytical
unit
to
add
to
the
resource
that
we've
already
got
and
being
able
to
make
sure
that
we
can
draw
together
the
evidence
from
a
number
of
sources,
partly
from
Scottish
government
themselves
and
certainly
from
the
agencies.
We
all
share
that
already,
but
this
I
think
will
help
us
to
bring
that
together
and
analyze
that
and
provide
an
input
to
the
strategic
board
and
certainly
to
really
think
about.
K
K
K
So
there's
no
hiatus
of
that
analysis
that
gets
done
about
the
economy,
what
makes
a
difference
and
where
we
need
to
focus
and
then
once
that's
up
and
running,
we'll
be
very
closely
working
with
them
or
in
looking
at
not
just
the
kind
of
em
macroeconomic
data,
but
then
looking
at
practically.
What
would
that
mean?
We
would
need
to
do.
How
does
that
link
to
industry
and
to
partners
and
making
sure
that
that's
directly
linked
to
pragmatically
what
needs
to
happen?
I'm
going
to
a.
A
Question
I
have
is
about
the
grant
and
aid.
Now
you
can
supplement
your
grant
in
aid
budget
by
I,
think
sale
of
investments,
charging
rents,
disposing
of
assets
etc.
The
twenty
sixteen
to
seventeen
year
and
did
you
meet
your
target
in
terms
of
supplementing
your
grant
and
aid
money?
Or
what
did
you
do
about
that
aspect
of
your
portfolio?
I?
Suppose
we
could
call
it.
L
Happy
times
of
that,
they
we
were
more
successful
when
we
expected
on
the
investment
disposals,
the
the
market
picked
up
early
on
and
that
year,
so
I
think
against
the
31
million
we
were
expecting
in
1617,
and
we
done
from
that
was
about
nearly
39
million
pounds
we
weren't
quite
so
successful
and
the
ambitious
target
on
the
property
sales
that
we
that
was
the
the
highest
target,
I
think
we'd
ever
say
at
the
team.
At
the
forty
million
pound
level
at
the
end
of
the
year
was
twenty
six
point.
L
L
L
Probably
call
it
more
realistic
target
and
we
don't
have
those
two
large
property.
So
all
your
properties,
even
within
the
23
there
are
a
couple
of
properties
and
they're
I-
think
one
about
six
million
won
by
nine
million
that
we
we
need
to
achieve
that
that
level
to
achieve
the
23.
But
we
believe
we'll
be
able
to
do
that.
I
think
what
currently
our
marketing
were
marketing,
don't
about
a
think
about
35
or
36
million
pounds
worth
of
properties
to
try
and
achieve
the
23
million
in
actual
sales.
L
Can
certainly
give
me
value
I
think
in
a
uniting
the
council
be
somewhere
in
the
region
of
140
million
pounds
for
a
property
portfolio
or
over
and
above
that
we
have
the
Glasgow
Science
Center
and
which
I
think
is
about
45
50
million
poems,
but
that
we
can't
sell
that
and
samely
obviously,
is
the
rest,
the
portfolio.
So
it's
about
140
million
on
the
the
physical
assets
we've
portfolio
of
investments
as
well
as
they
can
be
an
appointed
out.
That's
know
around
about
two
hundred
and
sixty-seven
million
bones
and
value.
L
We
we
try
and
maximize
as
much
as
we
can.
There
are
tonnes
from
that,
although
all
of
those
investments
are
core
investments
with
other
parties,
and
we
have
generally
the
they
can
a
smaller
investor
and
those.
So
therefore,
we
don't
have
as
much
control
over
the
timing
of
those
asset,
sales
and
disposals,
and
this
this
year,
we've
seen
so
far
all
be
aware.
I
think
we're
about
six
point:
five
million
of
income
already
on
that
side.
L
L
Also
that
yeah,
that
will
the
267
million,
is
financial
investments
or
a
generally
shares
in
companies,
some
some
ones
and
there
as
well
one
or
two
back
one-off
loans,
but
generally
shares
through
the
co
investment
fund
or
a
venture
fund.
That's
been
built
up
over
the
last
13
15
years,
I
think
as
we've
been
investing
and
we
know
office
would
want
to
see
a
return
on
that
as
to
be
maximized
as
much
as
we
can
I.
Think
I
mean
yes,
the
question
with
maybe
the
last
10
years
of
sales.
L
C
L
C
L
We
are
looking
at
EU
funds,
excluding
the
Scottish
Investment
Bank,
we're
looking
at
about
six
point:
seven
million
pounds
and
the
of
the
the
effect
of
specifically
it's
I-
think
it's
maybe
around
about
ten
I.
Don't
have
that
specific
figure
for
EU
funds
is
included
with.
Another
figures
got
in
front
of
me,
but
the
the
the
the
fund
that
the
the
government
has
created
has
got
you've
been
money
on
the
back
of
it.
L
So
we
get
around
about
forty
percent
of
all
the
income
for
the
the
the
the
main
core
investment
funds,
money
from
the
government
as
well,
so
a
problem
at
ten
to
twelve
million
on
the
on
the
investment
side,
and
we
were
aiming
for
six
point:
seven
million
on
the
non
Scottish
investment
bank
funding.
Oh.
L
E
L
Yeah
two
bonus
the
one
thing
not
at
Montreuil
maximize
the
funds
that
have
been
made
available
to
us.
We've
been
working
with
the
you
team
and
the
government
to
try
and
make
sure
that
we
get
as
much
of
that
before
we
leave
the
EU
I.
Don't
know,
what's
going
to
happen
after
that,
clearly
would
look
forward
to
some
some
viewers
to
what
other
funding
streams
are
may
be
available
within
the
you
that
time,
I,
don't
I,
don't
know
what
that
would
be,
and
things
too
early
to
say
or
not
one.
Yet
folks,
okay,.
L
I
The
our
guests
for
being
here
this
morning
couple
of
questions
on
the
budget
process.
Total
income
available
to
scholars
to
enterprise
last
year,
declined
by
around
fifty
million
and
over
the
last
10
years,
has
declined
from
six
hundred
million
to
two
hundred
ninety
million.
Can
you
talk
us
through
what
has
been
the
main
adverse
impact
in
terms
of
Enterprise
Development
in
Scotland
as
a
result
of
that
budget?
In
other
words,
what
was
Scottish
Enterprise
doing
ten
years
ago
with
double
the
amount
of
money
which
you
can
no
longer
do?
L
The
main
element
of
that
is
that
Scottish
Enterprise
used
to
run
the
national
training
programs
and
back
in
2008
I
think
it
was.
They
were
separated
out
to
skills
development
Scotland
so
that
took
about
half
our
budget
out
at
that
time.
So
that
was
by
far
the
major
reason
for
the
decrease.
Ever
since
then,
we've
been
operating
a
gross
expenditure
level
of
roundabout
300
to
320
million.
The
the
the
reduction
in
the
the
last
year
has
been
because
of
the
the
reduction
in
our
expectations
on
the
additional
income.
L
You
know
from
the
point
that
was
raised
earlier
on
those
were
very
ambitious
targets.
I
think
in
1617
were
looking
at
total
and
our
operating
plan
of
341,
but
that
was
a
significant
increase
on
the
previous
years.
So
our
effect,
our
core
level
of
expenditure,
has
been
more
than
the
300
to
320
most
years
since
the
2008
period.
Thank.
I
You
for
that,
in
terms
of
you,
provided
very
helpful
notes
in
terms
of
the
line
items,
and
you
know
this
might
be
nice
to
why
sorry
there's
some
movement
in
the
line
items.
What
has
been
the
main
areas
that
you've
had
to
cut
back
in
the
last
year
in
terms
of
has
it
been
innovation,
investment,
inclusive
growth?
Can
you
talk
us
through
where,
over
the
last
year
of
the
year
to
come,
where
most
of
the
decline
will
feature
in
terms
of
spending?
I
L
And
do
that,
as
you
maybe
see
from
the
from
the
notes,
some
areas
of
the
reduction
have
actually
been
because
certain
schemes
of
actually
come
to
an
end.
So
I
think
the
water
scheme
was
a
big
contributor
to
that
reduction
and
there,
if
anything,
what
we've
seen
is
an
increase
in
quite
sharp
increase
in
the
demand
for
Rd
and
innovation
funding,
which
we
sees
a
real
success
for
us.
Not
that
long
ago
thing
we
were
spending
six
million
pounds
a
year,
then
nine
million
pounds
a
year
about
twenty
twenty
two
million
pounds
this
year.
L
So
the
additional
funding
that
there
was
announced
just
in
the
last
few
days,
the
45
million
over
three
years.
That
is
very,
very
very
happening
to
see
that,
because
that
will
help
us
increase
the
even
more
the
funding
going
towards
the
innovation
and
R&D
work,
which
we
see
is
absolutely
key.
I
think
we'll
bill
put
some
in
the
region
of
38
for
our
quorum
defunded,
maybe
about
forty
five
in
total.
L
For
that
that
they
demand
on
the
Rd
side,
though,
has
clearly
put
pressure
on
other
parts
of
our
business
and,
if
anything,
just
over
the
last
year,
it's
moving
the
direct
investment
say
the
things
that
has
had
more
of
a
reduction
and,
as
we've
been
funding
companies
more
through
handy
support,
as
opposed
to
direct
investment.
That
was
probably
the
biggest
reduction
last
year
right.
L
I
Item
which
are
declined
by
45
percent,
so
what
what
does
I
mean
if
I'm
a
business
in
Scotland
looking
for
an
enterprise
support?
Can
you
talk
us
through
what
that
means
in
practice,
in
terms
of
investment,
is
increasing
on
this
of
be
our
Rd
side,
research
and
development,
but
it's
falling
away
in
equity
investments
and
loans.
What
what
does
that
mean
in
terms
of
the
form
of
assistance
available
for
for
business.
K
So
in
terms
of
the
work
that
we
do
with
businesses
that
hasn't
changed
at
all
sort
of
which
very
much
is
to
understand
what
is
the
ambition?
What's
their
growth
plan
would
need
to
do
and
bring
to
the
table
is
going
to
help
them
to
take
that
forward
and
to
make
sure
that
we
really
understand
what
we
can
do,
that's
going
to
make
a
difference
to
that.
K
So
what
we'll
look
at
is
their
investment
plans,
we'll
look
at
where
they've
already
looked
for
funding
that
will
look
to
a
what's
going
to
help
the
business
grow
over
the
long
term,
so
in
terms
of
their
cash
flow
and
that
their
revenue,
how
much
of
that's
an
equity
play
that
they
need
to
have
and
a
much
of
its
about
R&D
or
other
type
of
grants,
support
that
would
support
a
specific
type
of
project
to
be
taken
forward.
So
we
we
look
at
that
in
their
own.
K
That's
very
much
an
approach
to
how
we
do
holistic
business
growth.
So
we
still
do
that.
We
haven't
seen
that
change
at
all
and
we
certainly
haven't
seen
any
kind
of
shift
in
our
ability
to
be
able
to
respond
to
those
companies
needs
around
those
things.
It's
always
a
blend
and
it's
always
about
making
sure
that
we
understand
that
in
the
appraisal
of
those
projects
that
we
look
at
that
in
their
own,
so
we're
looking
at
when
we're
doing
an
investment.
I
L
What
the
majority
of
the
shortfall
from
one
plan
to
the
other
is
concerned,
I
think
I
mentioned
earlier
on
that
the
1617
plan
was
a
341
level
that
was
the
highest
most
ambitious
Loyola
plan
that
we
had,
because
we
didn't
achieve
the
additional
funding
from
other
sources
to
that
level.
Our
actual
outcome
will
be
again
somewhere
in
the
region
of
310
million
for
that
year,
so
we're
not
flying
together
for
this
year.
I
L
Lines
down
that
limb
that
lender
may
want
to
come
in
on
that
one.
Our
main
involvement
in
the
Scottish
growth
schemers
through
the
very
sharply
titled
Scottish
European
growth,
Co
investment
program,
which
we
I
think
we
launched
in
June
this
year.
That
has
that's
a
two
hundred
million
pound
fund
that
is
available
now
to
two
companies
and
I
am
not
course
enough
to
know
exactly
where
we
are
with
any
companies
accessing
those
funds
yet,
but
that
is
no
available
as
part
of
the
the
Scottish
growth
scheme
umbrella
plan
from
the
government.
K
Bank
is
obviously
very
closely
involved
in
that
and
the
work
they
are
doing
with
em.
What
networks
all
do
can
the
contacts
in
a
European
setting
is
to
make
sure
that
that
kind
of
awareness
of
that
fund
is
being
raised
with
fund
managers
to
make
sure
that
people
know?
What's
there
the
kind
of
things
that
we'd
be
targeting
and
about
generating
inquiries
and
then
looking
at
what
that's
coming
through
so
subsidy
actively
involved
in
that
I.
F
K
K
I
L
The
individual
investment
decisions
are
made
by
the
the
cord
investor
on
that
and
the
funding
support
comes
from
us.
Clearly,
the
the
criteria
round
about
the
type
of
companies
that
we've
invested
and
with
and
into
butt
and
the
actual
deals
will
be
brought
forward
by
the
the
couldn't
the
the
partners
of
the
European
investment
fund.
I
should
like
to
say
on
the.
As
far
as
the
budget
say,
two
things
is
concerned:
the
funding
for
that
the
ten
million
this
year
from
that
we
will
spend
on
that.
L
K
Thing
just
in
terms
of
eenz
point
debate:
we
pushed
hard
about
the
criteria
for
that
fund
and
those
funds
coming
in
to
Scotland
meeting
Scotland
requirements
so
particularly
that
point
about
ambitious
companies
internationally
focused
because
we
know
that's
going
to
a
grow,
the
economy
it
been
about
SMEs,
so
the
EU
definition
of
SMEs.
We
made
sure
that
it
was
about
that
and
about
making
sure
that
the
type
of
projects
and
the
proven
of
support
is
going
to
absolutely
be
you.
What
Scotland
needs.
N
Because,
as
you
all
know,
one
of
the
criticisms
has
been
that
there
seems
to
have
been
in
terms
of
managed
companies.
The
Scottish
Enterprise
messing
out
a
lot
the
SMEs,
and
can
you
can
you
maybe
sort
of
expand
on
the
criteria
there?
You
haven't
mentioned
anything
around
and
inclusive
growth
or
any
you
were
here
when
hie
we're
here
talking
about
how
what
their
criteria
was
for
support.
K
In
I,
don't
have
any
more
in
terms
of
the
criteria
itself,
but
we
can
get
back
to
you
on
that,
but
particularly
in
terms
of
those
companies
that
we
would
work
with,
I
would
expect
that
the
companies
that
come
through
that
fund
would
be
companies
known,
obviously
to
Scottish
the
enterprise
and
through
through
soap,
so
the
wider
support
that
we
would
expect
to
give
to
companies
and
the
conversations
that
we
would
have
with
them
that
we
know
help
them
to
be
successful.
We
would
then
be
having
those
positions
with
those
companies
as
well.
K
Excuse
me
so
that
you
know
that
example,
we
don't
just
look
at
equity
if
we're
looking
at
R&D.
In
this
case,
we
would
be
having
conversations
with
the
company
about
how
are
they
going
to
reach
that
ambition
that
international?
What's
going
on
in
the
rest
of
the
company?
What
other
things
could
we
be
doing
to
support
their
workplace
practices
and
about
the
renovations?
So
I
would
expect
that
that
to
be
part
of
that
waiter
conversation,
we
would
have
with
the
companies
as
we're
going
through
that
assessment
process
with
them
around
playing
for
funds
when.
L
Well,
I'm
happy
to
ask
ourself
colleagues
to
send
you.
The
detailed
criteria.
Do
I
still
have
a
couple
of
notes
and
the
other
maybe
add
to
what
Linda
was
seeing
it.
Certainly
the
the
criterias
about
it
must
be
a
commercially
viable
business
established
based
in
Scotland
with
growth
and
international
ambition,
but
it
must
also
meet
the
EU
definition
of
an
SME,
so
it
must
be
the
less
than
250
employees
and
Alton
over
no
more
than
50
million.
So
it's
purely
about
SME
support.
The
growth
schema
they've
got
there.
L
There
are
some
restricted
sectors
and
there
I
think
retail
estate
property
development,
banking
insurance
that
take
the
thing.
What
wouldn't
be
getting
that
so
it's
the
essentially
the
productive
companies
and
the
SME
band
that
will
be
they'll
be
eligible
for
that
support,
but
we'll
send
it
in
more
detail
and
things
like
that.
Thank.
L
The
element
of
that
is
that
scheme
and
I'm
not
aware
of
any,
have
been
made
yet
Jackie
again.
I
can
confirm
when
I
speak
to
the
Scottish
investment
bank
colleagues
back
in
the
office,
but
we
did
launch
that
in
April
this
year.
So
as
lend
I
said,
we've
got
him
with
those
cool
investment
partners
to
make
sure
that
we
had
off
that.
So
I'm
not
aware
of
any
of
those
pointing
I.
L
M
M
L
So
it's
a
good
proxy
for
that.
I
wouldn't
say
that
we
don't
have
a
Squatch
development,
a
national
budget.
They
use
all
of
those
budget
lines,
but
that
that's
very
much
the
area
that
they're
in
there
may
be
other
teams
are
involved
in
some
of
that
it
may
be
through
the
marketing
side
of
things.
Obviously,
but
that's
a
good
proxy
for
that.
Jackie.
Okay,.
M
It's
just
that
there's
no
marketing
elsewhere,
so
I'm,
just
assuming
you
know
that
that's
it
so
yeah
taking
that
as
the
assumption,
if
that's
effectively
the
budget,
your
business
plan
for
2015
18
that
was
referred
to
last
year
when
you
were
before
the
committee
suggested
you
anticipated
42
million
for
1617
and
43
million
for
1718.
Now
what
we
have
before
us
is
39
million
and
40
million.
That's
a
few
million
short
of
what
you
anticipated
is
that
correct
I.
L
M
And
on
that
basis,
so
that
the
the
budget
is
down
yet
this
is
an
area
which
the
Scottish
Government
in
their
program
for
government
said
quite
clearly,
both
in
2016
and
2017
mattered.
In
2016
they
talked
about
an
additional
3.5
million
for
new
investment
hubs
in
London,
Dublin
and
Brussels.
That
was
announced
in
2016.
It's
been
rien
am
stin
2017,
and
can
you
tell
me
what
new
money
you
actually
received
for
this
I.
L
I
I
think
the
majority
of
the
money
from
the
investment
hubs
has
been
dealt
with
that
actually
by
government
and
less
Linda
creates.
When
that
there
may
be
an
element
that
we
got
through
there.
The
the
biggest
element
of
additional
money
we've
got
an
internationalization
is
for
the
doubling
of
the
staff
resources
in
Europe
that
we
are
underway
recruiting
at
the
moment.
That's
I
think
an
extra
20
posts,
I,
don't
know
the
specific
figure
on
that.
L
That's
going
to
be
again
additional
to
our
1718
published
budget
figure
because
that's
come
in
since
the
the
budget
was
published
as
well,
so
I'll
be
over
and
above
that,
and
that
is
fully
funded
in
addition
by
the
government.
We've
got
guarantee
on
that,
so
that
money
will
come
through
this
year.
Okay,.
M
L
L
H
M
M
K
Through
the
enterprises
go
to
view,
part
of
the
work
has
been
looking,
obviously,
regional
partnerships
and
there's
obviously
a
work
ongoing
around
a
Chambers
that
you
mentioned,
and
so
as
far
as
my,
where
the
work
is
still
ongoing
to
set
up
those
local
pilot
and
the
pilot
export
partnerships,
and
but
what
we
can
do
is
get
you
details
of
that.
So
as
far
as
so,
they
are
ongoing
I'd
order,
specifically,
which
ones
are
up
and
running.
But
we
will
get
you
details
of
that.
I.
M
M
I'm
coming
to
stumps
I'm
coming
to
the
hubs
if
I
could
and
then
you
you
could
possibly
answer
that
we
had
an
announcement
of
an
investment
hub
in
Paris,
which
is
is,
is
great.
We've
had
previously
London
Dublin
Brussels
three
point:
five
million.
Now
we're
getting
Berlin
Brussels
and
Paris.
Are
you
getting
additional
money
to
do
that.
K
L
K
So
the
hub's
are
laid
by
Scottish
government
and
and
they're
all
very
different,
not
least
because
those
markets
and
geographies
that
they're
in
a
very
different
and
therefore
the
engagement
that
Scotland
needs
to
have
in
them
are
different.
So
the
MM
one
very
much
was
based
on
the
government
presence.
It
was
out
there
and,
as
part
of
the
expansion
of
very
staff
in
HD
I
will
be
putting
a
member
of
staff
in
to
Dublin
to
make
sure
that
we
fall
through
on
the
cheat
and
investment
opportunities.
So
that's
kind
of
one
model.
K
The
London
model
was
a
very
different
model.
We
already
had
an
established,
STI
and
presence
within
London,
given
how
important
London
is
to
basement
coming
into
the
UK
and
then
up
to
Scotland.
So
we've
built
on
that,
so
the
New
Scotland
house,
there
is
no
open.
There's
been
a
number
of
events.
There,
we've
got
a
number
of
companies
signed
up
as
members
now
to
that
nuke
and
a
membership
scheme
that
we've
got
there.
So
that's
up
and
running
and
been
working
very
well
and
has
also
been
used
as
a
real.
K
K
So
we're
spending
more
time
if
you
like,
with
colleagues
and
London,
just
to
make
sure
we
joined
those
things
up
as
well,
and
the
brussels
model
and
scotland
0
/
scotland
house
that
we've
had
in
a
brussels
for
a
very
long
time,
we've
taken
the
opportunity
to
look
at
and
what
that
needs
to
look
like
going
forward.
What
types
of
innovation
and
in
this
opportunities
is
Scotland,
going
to
pursue
and
post
brexit
and
clearly
beyond
the
funding
element.
There's
a
lot
of
the
work
that
we
do
in
Brussels.
K
Clearly
Berlin
is
getting
up
and
running
and
a
Paris
will
be
new,
so
they're
all
quite
different,
but
they're
all
kind
of
collaborative
and
very
much
Scottish
government
Laird
hubs,
because
the
the
Ornan
Leatham.
But
what
we've
come
to
the
table
is
as
have
other
agencies.
What's
the
part
we
can
bring
both
financially
and
in
terms
of
the
people
resource
and
the
connections
that
we'll
need
to
make
in
market,
but
also
back
in
Scotland,
to
make
them
work.
M
One
final
question:
if
I
may
can
I
turn
you
to
foreign
direct
investment,
because
there
have
clearly
been
some
some
positive
news
in
that
regard,
but
I
think
last
year
I
asked
Lena
Wilson
about
her
targets
and
she
talked
about
big
and
hairy
targets,
which
was
very
new
to
me.
I
have
to
say,
but
can
I
can
I
ask
you
about
the
jobs
that
have
been
created
through
foreign
direct
investment
because
we
are
entering
the
final
year
of
your
three-year
target
base.
M
I
think
the
figure
you
had
was
to
achieve
22
to
28,000
planned
jobs
through
inward
investment.
The
reality
is
you've
achieved
about
14,000
800.
We
know
from
the
last
two
quarters
that
the
trend
now
appears
to
be
downwards
in
terms
of
job
numbers.
How
much
will
you
miss
that
target
by
of
22
to
28,000.
L
L
Well,
we
certainly
evaluate
the
work
that
we
do
across
the
whole
range
or
business,
and
certainly
that
has
been
evaluations
on
the
SDI
side
and
I'm
sure
that
I
would
look
at
their
their
actual
jobs
created
compared
to
the
the
forecasts
that
are
obviously
announced
when
they
met
and
sort
of
made.
Could.
L
N
Last
year,
when
Scottish
Enterprise
recommend
C
is
the
there
was
talk
of
senior
commissioning
analytical
research
into
the
how
your
programs
to
target
into
my
internationalization
we're
actually
working
and
how
effective
they
were
and
I'm
just
wondering
if
you
have
got
anything
to
tell
us
about
any
evaluation
that
you've
done
on
these
programs
and
when,
when
that's
going
to
be
released
them,
and
why
think
we
might
include
in
terms
of
an
analysis
of
your
programs.
So.
K
Thank
you.
The
evaluation
for
STI
has
been
done
this
year
so
and
we're
just
finalizing
that
at
the
moment,
so
we
would
be
planning,
as
we
do,
for
all
our
evaluations,
to
publish
that.
We
just
push
that
out
there
in
terms
of
evaluations
online
and
so
that's
still
being
concluded.
Just
in
terms
of
that,
the
finalization
of
the
analysis
of
that
and
as
soon
as
we've
got
that
we'll
publish
it,
but
we'll
also
make
sure
that
we
share
the
headlines
of
that
with
the
committee
that
I
don't
have
a
Denis
ID
on
that.
K
N
The
date
and
though
you're
probably
not
able
to
tell
his
answer
and
that
the
conclusions
of
it.
Obviously
you
want
to
leave
that
slits
publication,
but
can
I
ask
that
the
methodology
that
you've
used
and
how
and
this
was
a
general
weighted
question
about
how
Scottish
Enterprise
actually
assesses
when
you
have
made
an
intervention,
whether
it's
a
business,
support
intervention
or
a
financial
intervention
in
that
company.
How
you
assess
the
effectiveness
of
your
particular
intervention
in
in
the
the
success
or
otherwise
of
that
company.
So.
K
It
could
be
a
piece
of
technical
work
that
needs
to
be
done,
so
certain
milestones
accoring
that
we
might
agree
that
they're
going
to
be
working
with
the
waiter
supply
chain
in
the
local
area
or
waiter,
so
agree,
that's
appropriate
to
that
company,
a
set
of
things
that
are
appropriate
and
then
what
we'll
have
is
a
set
of
criteria
are
in
the
drawdown
of
our
funds
that
they
need
to
meet
in
terms
of
being
able
to
do
that
and
we'll
discuss
for
the
company
over
a
period
of
time.
How
are
they
you
know?
K
How
are
they
progressing
with
that?
What
you
know
is
that
going
at
the
PS,
they
thought
it
would.
What
other
mitigating
factors
are
getting
in
the
way
of
that
war
else?
Could
we
be
doing
so
at
that
individual
company
label?
We
set
that
out,
and
we
measure
that
over
time
and
that
we
take
a
view
on
what
difference
that's
making
with
that
company
and
we
get
the
feedback
from
the
company
as
well
and
more
broadly.
K
What
we
also
do
is
evaluations
which
you've
kind
of
picked
up
in
terms
of
SDI
we've
moved
away
some
time
ago
from
doing
individual
and
it's
going
to
see
kind
of
service
evaluations.
What
we
tend
to
do
is
look
at
because
so
many
things
are
interrelated,
as
we've
already
talked
about
this
morning.
So
what
we
tend
to
do
is
look
at
for
an
example
that
kind
of
a
sti
internationalization
evaluation,
we'll
do
an
evaluation
of
account
manage
companies
where
we've
put
a
suite
of
interventions
and
talk
about.
K
We
know
all
the
things
we've
done
of
those
companies.
What
difference
has
that
meet
and
we
lasted
and
I
can't
around
ok
management
evaluation
in
about
kind
of
2012-2013
and
were
due
to
repeat
that
later
this
year.
So
that
gives
us
a
much
review
of
a
sample
of
those
companies.
So
we
don't
go
and
ask
all
the
companies,
but
we
do
have
in
terms
of
methodology.
K
N
K
We'll
use
the
data
that
we've
got
but
we're
going
to
go
out
and
speak
to
companies
in
terms
of
that
customer
feedback
or
that
that
will
tend
to
be
as
a
sample
of
that
as
opposed
to
or
you
know
if
it
was
2,000.
Companies
are
500
companies.
So
it's
a
combination
of
things
that
we
would
do
to
make
sure
that
we
take
that
assessment
and.
N
Coming
back
to
the
analysis
that
we
talked
about
you're,
going
to
be
breaking
down
that
analysis
into
individual
programs,
for
example
the
scolex
Porter
program.
Are
you
going
to
be
looking
at
that
and
potatoes
we've
actually
had
a
specific
targeted
program
and
how
those
those
have
worked
and
how
successful.
K
N
One
final
question
which
is
where,
but
my
part
of
the
world
and
Aberdeen
show
and
just
an
extra
question
there.
Obviously
we've
got
a
situation
in
the
Northeast.
We
have
got
very
highly
skilled
businesses
with
a
lot
lot
of
skilled
people,
but
I'm
wondering
what
you
can
tell
me
in
terms
of
how
you've
been
analyzing,
what
you've
done
to
intervene
to
help
them
diversify
into
other
areas:
oil,
oil
and
gas.
Yes,.
K
So
the
energy
of
task
force
obviously
has
been
operating
for
some
time
and
the
work
that
we've
been
doing
particularly
is
not
just
been
about
jobs.
It's
also
been
looking
at
the
industry
overall,
the
the
opportunities,
the
industry
that
we've
got
today
and
tomorrow,
so
particularly
looking
at
resilience.
So
where
can
companies
diversify
a
particularly
supply
chain
companies
and
to
other
markets?
K
So
renewables
would
be
an
opportunity
are
in
that
subsea,
particularly
we've
been
doing
a
lot
around
the
subsea
opportunity
for
Scotland,
with
a
published
a
subsea
action
plan,
we're
working
with
subsea
UK
on
that
so
Scotland's
shear
of
that
right
now,
so
the
global
markets
about
50
billion
Scotland
has
seven
billion.
So
you
know
we
punch
well
above
our
wheat
as
a
country
as
that
market
grows
projected
to
be
about
one
hundred
and
fifty
one
hundred
and
fourteen
hundred
and
fifty
billion
globally.
If
we
grow
with
that,
Scotland
could
significantly
take
advantage
of
that.
K
It
was
a
big
pillar
within
the
oil
and
gas
strategy
that
was
published
in
2016
about
helping
that.
Can
you
shift
and
we've
been
doing
a
lot
of
it,
making
sure
that
we've
brought
forward
a
lot
of
oil
and
gas
support.
Innovation,
support
oil
and
gas
companies,
and
we've
seen
the
kind
of
fruition
of
that.
So
over
800
companies
have
been
supported
very
that
diversification
and
leadership
in
oil
and
gas,
specifically,
and
particularly
in
fifteen
point.
Nine
million
of
our
support
has
gone
into
those
companies
around
innovation
and
some
of
that
kind
of
R&D
work.
K
N
Be
interested
in
there
now
after
doing
on
how
that
support
has
been
targeted
and
where
it's
been
successful,
particularly
along
there's,
the
smaller
companies
in
the
supply
chain,
they've
been
very
badly
hit
and
and
to
be
able
to
diversify.
So
I
would
welcome
that
more
analysis
on
that
and
I'd
like
to
the
committee.
It.
K
Delighted
to
share
that,
and
we
can
share
some
company
examples
actually
just
in
terms
of
I
sit
on
something
called
her
single
approval
group
where
there
are
indeed
the
large
around
accounts
come
through
and
there's
been.
You
know
a
number
of
oil
and
gas
companies
that
have
come
through,
particularly
around
R&D
investments
that
they're
making
to
move
into
new
markets
and
partly
arranged
a
verification
within
Scotland
and
a
kind
of
nor
see,
but
also
into
a
new
export
markets,
so
that
I
raft
of
things
I
think
we
could
share
with
you.
L
Sorry,
there
no
shows
that
Scotland
has
known
that
it
in
that's
gonna
talk
position
outside
London
for
foreign
investment
projects,
but
what
actually
number
one
and
the
country
for
R&D
projects
that's
gone,
a
long
way
to
the
increase
and
the
budget
that
we've
had
to
put
forward
to
Andy.
But
that
has
gone
a
long
way
to
securing
an
investment
and
achieving
those
figures.
B
Was
just
on
the
Scott
exporter
and
in
your
submission
you
say
it
supported
1578
companies
with
48
in
the
Highlands
and
Islands
region,
just
wondering
why
that
that
there's
a
difficulty
there's
such
a
large
difference
between
the
overall
total
and
the
Highlands
and
Islands
region.
Whether
you
can
explain
that
I.
L
Thought
I
don't
know
too
much
of
the
detail
of
the
of
this
core
exporter
program
and
why
that
difference
might
be
there
I'm
not
aware
of
whether
or
not
there's
any
other
programs,
the
Highlands
and
Islands
potentially
run
on
a
similar
vein
or
not,
could
certainly
work
with
our
colleagues
in
Highland.
That
wants
to
see
what
the
reason
for
that
is:
Jimmy
Valmer
that.
H
Thanks
convener,
a
so
to
move
on
to
the
area
of
inclusive
growth
and
I
think
you
said
actually,
mr.
Scott,
you
didn't
maybe
have
the
table
in
front
of
you
which
I've
got,
which
is
the
2015
2:18
a
measures,
but
I
can
quote
from
it.
Hopefully
to
start
with
a
there's,
a
new
measure
which
says
engaged
in
support:
800
2050
companies
to
develop
approaches
to
fear
and
progressive
workplace
practices
which
I
think
didn't
apply
in
1516
and
1617,
but
has
now
come
in
in
1718.
K
So
it's
a
new
measure
a
little
bit
like
Highlands
nails,
Enterprise,
we're
talking
about
tracking
measure
when
we
introduce
something
particular
it's
activity-based.
We
do
that
as
a
tracking
measure
over
a
period
of
time,
quietly
just
to
kind
of
understand
that
and
also
make
sure
that
we
learn
from
that.
So,
as
you
see
it's
a
new
measure
and
given
the
Scottish
names
by
st.
now
a
three
year
business
plan,
we
set
this
back
out
in
2015.
K
This
was
one
of
the
areas
that
we
felt
and
we've
been
sticking
with
that
kind
of
plan,
the
ambition
that
we
had
for
three
years,
but
we
felt
this
was
something
that
we
needed
to
make
sure
that
we
reflected
this
year
was
an
additional
measure
to
demonstrate
the
work
that
we're
doing
so,
particularly
what
that
looks
at
is
in
the
work
that
we're
doing
with
companies.
What
are
we
doing
to
help
them?
K
Consider
the
fair
work
agenda
so
particularly
what
we're
doing
within
the
workplace,
so
workplace
practices,
arraigned
and
their
leadership
approach
and
how
teams
work
and
what
they
might
be
doing
around
using
employee
ownership
models,
if
that's
appropriate
to
that
company?
We'll
look
at
how
they're
using
young
people
away,
particularly
the
Scott
R
at
Scott
grad
scheme,
which
we
run
across
Scotland:
hey,
we'll
talk
to
them
about
their
approaches
around
diversity
and
gender.
K
K
I've
got
so,
for
example,
yesterday
I
was
at
the
launch
of
the
new
construction,
innovation,
Factory
and
owned
in
a
larger,
and
that's
a
big
part
of
the
construction
industry,
responding
to
what
they
need
to
be
doing
around,
based
a
collaboration
of
st.
manufacturing
and
R&D,
but
also
creating
an
image.
That's
going
to
bring
in
a
talented
workforce
in
the
future
women
and
about
being
able
to
kind
of
demonstrate
and
what
those
opportunities
would
look
like.
H
That's
very
helpful
and
cover
some
of
the
issues.
I
was
going
to
ask
about.
I
mean
it
talks
it.
Your
actual
wording
in
here
is
engage
and
support.
800
2050
companies-
and
you
in
your
answer.
Just
now,
you
used
words
like
talking
to
em
and
I,
accept
that
this
is
a
very
difficult
area
to
measure,
but
I
mean
you
can
obviously
engage
in
a
set
number
of
companies.
That's
largely
under
your
control.
H
K
So
I
think
what
we
can
measure
is
the
things
that
we
do
you're
absolutely
right,
so
we've
helped
275
or
so
companies.
So
far
around
workplace
innovation,
we've
helped
to
pay
170
companies
a
graduate
and
a
company
or
in
the
Scott
gas
game.
So
we
know
those
kinds
of
numbers,
but
your
point
is:
is
that
making
a
difference?
K
So
that
is
going
to
be
a
bit
more
kind
of
longer
term
in
terms
of
tracking
the
difference
that's
making
in
those
companies
and
about
getting
a
sense
of
how
is
that
contributing
to
those
wider
outcomes
either
in
terms
of
their
kind
of
ambitions
around
innovation
or
international,
but
also
just
in
terms
of
the
type
of
workplace
that
it
is
and
about
getting
a
sense
of
how
we
might
measure
that
more?
Some
of
that
can
be
using
existing
mechanisms,
and
so
investors
in
people
based
company
surveys.
There
are
already
ways
that
that
companies
do
this.
K
So
it's
about
getting
a
sense
about
how
you
make
track
that
in
the
future.
Those
are
not
standards
that
we
would
you
know
and
push
on
companies,
but
we
wanted
to
talk
to
companies
about
as
they're
starting
to
do
this,
how
they
are
measuring
that
how
they're
measuring
their
own
employee
engagement
and
then
what
else
we
could
be
doing
to
support
them
on
that
journey.
So.
H
If
we
took
something
specific
like
you
know,
women
and
construction,
we
are
presumably
as
traditionally
quite
a
male-dominated
sector.
I
mean
a
lot
of
things
are
going
to
have
to
change
like
family
attitudes
and
peer
pressure
and
a
whole
host
of
things.
So
partly
I,
wonder
I
mean
I'm
sympathetic
to
you
in
a
sense
because
I
just
if
you
could
ever
measure
Scottish
enterprises
impact
on
that
picture,
because
there's
going
to
be
so
other
many
things
that
will
have
to
change
along
the
way.
K
You're,
absolutely
right
so
part
of
its
our
aim.
The
work
that
we
do
directly
with
companies
which
we
can
measure
quite
directly
in
terms
of
if
we're
supporting
a
construction
company
to
introduce
something
we
can
get
sense
of
what
they
are
doing.
But
the
industry
is
taking
quite
seriously
that
they
do.
K
You
need
to
shift
how
they
portray
the
industry,
how
the
industry
is
going
to
automate
going
forward
with
digital
technology
and
about
smart
manufacturing,
so
the
Seebeck
opportunities,
which
will
also
be
more
attractive
potentially
to
parts
of
the
workforce
that
it
hasn't
been
in
the
past.
So
what
they
will
be
able
to
measure
is
what
the
uptick
of
that
looks
like,
and
what
we
will
be
able
to
do
is
make
sure
that
when
Scotland,
we
can
measure
how
many
young
people
are
going
into
those
apprentices
going
forward.
K
The
types
of
apprentices
that
are
being
designed
going
forward
and
then
about
making
sure
the
link
into
companies
is
seen
so
I
think
part
of
it's
about
encouraging
and
supporting
the
industry
to
put
some
of
that
in
place.
And
then
in
the
work
that
we
do
very
directly.
So
we
put
funding
into
that
innovation
factory
that
was
announced
yesterday.
So
we
believe
that
by
putting
that
in
place
that
will
encourage
companies
to
be
able
to
come
and
prototype
and
taste
and
be
able
to
see
some
of
these
things
they're
more
likely
to
adopt
it.
K
H
Helpful,
thank
you
under
that
heading,
inclusive
growth.
If
I
can
reduce
all
and
going
to
green
it,
one
of
the
headings
is
attract
twenty
to
twenty
eight
thousand
plan
jobs
through
inward
investment,
and
it
didn't
immediately
a
strike
me
as
to
why
that
heading
of
attracting
and
what
investment
was
under
the
inclusive
growth
heading.
Can
you
explain
what
the
connection
is
there.
L
The
the
reasonably
then
there
is
because
that
is
about
half
of
an
RSA
regionals
light
of
assistance
activity
and,
as
they
pivot
either
is
geared
towards
job
creation
and
I
I
do
get
the
they
may
not
all
be
inclusive
jobs
and
there,
but
we
felt
that
that
contributed
significantly
towards
the
inclusive
growth
agenda.
So
a
couple
of
years
ago,
when
we,
when
we
put
that
plan
together,
we
thought
that
was
the
best
place
to
put
it
I.
Think,
as
Charlotte
said
earlier
on
a
lot
of
activity.
H
L
Inclusive,
given
its
regional
selective
assistance
is
targeted
to
areas
that
have
got
more
requirement
for
those
jobs
is
only
available
in
certain
geographic
areas
in
the
country,
which
goes
some
way
towards
inclusive
growth
agenda.
I,
wouldn't
say
all
of
it
is
about
individual
jobs,
but
certainly
we
try
and
encourage
that
in
any
of
the
RSA
offers
that
we
gave
out.
L
I
think
we've
mentioned
previously
about
the
can
a
young
young
workforce
activity
that
we
do,
that
we
encourage
all
our
RSA
applicants
to
implement
and
I
believe
that
we
still
every
single
one
of
them
who
courage
to
do
that
has
got
that
as
part
of
the
plan
towards
the
the
funding
that
we
give
to
them.
So.
K
K
Pattern
of
the
workforce,
and
so
as
in
says,
the
focus
we've
got
here
is
about
so
that
a
police
dimension
to
regional,
selective
assistance.
That's
what
the
criteria
about
so
that's,
hopefully
italics
a
projects
and
jobs
to
areas
where
they're
most
needed.
There's
then
the
work
that
we
do
with
that
individual
company,
particularly
if
it's
a
new
inward
investor
to
Scotland,
or
even
a
follow-on
investment
about
looking
at
types
of
jobs
that
they're
creating
and
about
looking
at
the
best
opportunities
about
how
those
jobs
can
be
felt.
K
As
Ian
said,
we
introduced
a
new
approach
and
kind
of
like
think
it
was
last
year
and
all
150
or
so
projects
that
we've
come
through
RAC.
Since
then,
we've
asked
them
about.
Would
you
like
to
sign
up
to
invest
in
youth
policy
and
part
of
thats
about
either?
If
it's
a
job
so
creating
as
ab
employing
young
people,
it
could
be
about
going
into
schools
and
talking
about
careers,
it
could
be
a
bit
mentoring
or
coaching.
K
So
they
see
the
benefits
of
that
as
we've
been
taking
forward,
but
but
by
and
large,
I
think
your
point
that
most
of
the
kind
of
people
coming
into
those
kind
of
opportunities
will
probably
reflect
what
the
workforce
looks
like
right
now.
What
we've
been
looking
at
in
relation
to
gender
is
just
about
making
sure
that
we
are
tracking
those
things
going
forward.
K
If
it's
not
particularly
attractive
understanding
where
flexible
working
practices
would
make
a
difference,
showing
companies
where
other
companies
have
done
that
and
that
that's
canopy
Dorf
so
using
that
can
appear
to
Peru
doing
a
lot
more
of
that,
it
will
take
time,
but
we're
hopeful
that
that's
actually
going
to
help
us
to
do
that
and
I
think
it's
a
job
for
us
to
do.
Excuse
me
in
terms
of
excuse
me
in
terms
of
our
job,
but
it's
also
a
job
for
the
industry.
G
Much
convener
this
session
is
principally
about
budgets
and
Linda
Hannah.
You
said
earlier
on
the
work
we
do
hasn't
changed
at
all,
but
I
wanted
to
challenge
you
on
that
I
mean
there
was
a
an
email
sent
out
at
the
start
of
this
financial
year
by
the
director
of
the
Scottish
in
investment
bank
to
operational
staff
in
Scottish
Enterprise,
in
which
she
said
we
have
insufficient
budget
to
me
anticipated
demand
for
everything
we
are
being
asked
to
consider
under
enhanced
si
B.
G
We
therefore
need
to
prioritize
our
funding
and
people
resource,
which
will
ultimately
mean
us
investing
in
some
companies
and
not
others,
even
when
they
might
be
strong
investment
propositions
and
she
went
on
to
say,
is
funding
this
year
is
more
constrained
than
today.
We
will
continue
to
support
the
pipeline
of
new
investment
opportunities,
but
this
may
be
at
a
reduced
rate
than
last
year,
so
that
doesn't
sound
to
me
like
business
as
usual.
L
L
That's
probably
the
toughest
prioritization
on
that
that's
been
helped
during
the
year
ago,
obviously
with
additional
funds
for
the
new
European
investment
fund
program,
so
that
ditional
10
million
that
will
go
towards
the
Scottish
investment
bank,
as
well
as
the
for
20
billion
next
year
in
the
20
million
after
that.
So
it
has
been
tough
prioritization,
but
other
things
are
wrong
with
that
spark
money
that
we're
spending
and
we
want
to
make
sure
that
we
get
the
best
rate
done
for
every
phone
that
we
spend.
K
I
think
our
approach
is
the
same
I
think
our
approach
has
always
been
about
making
sure
we're
getting
the
most
impact
for
the
resources
that
we
have
available.
I
think
that
approach
that
we
had
our
own
looking
at
joining
up,
you
know,
equity
or
R&D
or
other
kind
of
things
that
we
do,
that
hasn't
changed
with.
Our
approach
has
always
been
about
understanding
that
company's
plans,
understanding
where
we
can
add
the
most
value
and
understanding
where
we
can
get
the
biggest
impact
so
just
to
kind
of
qualify.
K
That's
what
I
mean
when
I
say
that
I,
don't
think
that
has
changed.
I
think
as
in
says
we're
seeing
unprecedented
demand,
which
is
great.
That
means
you
know
just
in
terms
of
the
projects
coming
through
in
the
economy
right
now
and
it's
great
to
see.
But
what
that
does
mean
is
that
we
do
need
to
make
sure
that
we're
prioritizing
where
we're
getting
the
most
impact,
but.
L
G
L
Sure
leaner
said
to
estimated
in
the
past:
if
there
was
a
additional
funds
available,
we've
made
very
good
use
of
those
red-tipped.
We
are.
We
are
looking
into
our
1819
budget
year
at
the
moment
and
we're
looking
at
a
project
less
well
in
excess
of
the
funds
that
we
expect
to
have
available.
I.
Think
somebody
asked
the
question
in
the
earlier
session
about
the
the
annualization
of
the
budgets.
L
G
I'm
glad
that
you
mentioned
business
R&D
because
that's
been
under
the
spotlight,
if
it
hasn't
it
was
another
with
the
announcement
last
week
by
the
First
Minister
that
there
would
be
an
extra
15
million
pounds
a
year
over
the
next
three
years
to
make
up
a
shortfall.
Because
previously
there
was
concerned
that,
for
example,
the
practice
of
making
upfront
payments,
which
is
especially
important
to
SMEs,
was
being
withdrawn
and
that
all
payments
were
being
held
back
until
May
2018.
So
there
would
be
no
R&D
assistance
until
May
of
next
year,
I
mean.
G
L
I
think
under
Nevada
on
the
front,
in
fact,
there's
only
one
program
that
I'm
aware
of
in
Scottish
enterprise,
which
is
a
smart
program
that
does
have
upfront
funding,
has
had
in
the
past
that
actually
been
a
recent
internal
audit
review
or
of
an
issue
and
the
other.
That
was
suggesting
that
we
revisit
that
to
make
it
more
commensurate
with
the
rest
of
the
funding
that
we
do,
because
every
other
program
that
we've
got
we
will
make
offers
and
commitments
to
companies.
L
But
we
expect
them
to
start
the
project
before
and
we
can
check
that
the
selectivity
happing
on
that
before
we
repay
our
contribution
towards
that.
So
they
respond
to
pressures
on
that
side
of
things.
But
it's
not
only
for
those
reasons
that
we
would
be
looking
to
review
the
payment
profile
on
the
smart
grants.
L
G
Okay
and
then
you're
going
to
be
monitoring
that,
because
again
it
the
withdrawal
of
that
facility
may
not
show
up
necessarily
I
mean
you
need
to
you
need
it.
It
seems
to
me
anyway,
you
need
to
monitor
demand
and
if
people
are
being
turned
away
or
if
people
have
been
and
making
this,
and
this
can
potentially
being
an
international
choice
that
people
are
making
about,
whether
they
invest
in
Scotland
or
whether
they
invest
somewhere
else
dependent
upon
the
tipping
point
of
that
R&D
support.
Being
there.
No.
L
You're
absolutely
spot-on
with
that.
Thank
you
mentioned
their
load
on
the
growth
and
the
related
and
what
investment
I
think
there's
one
life
case,
a
I,
don't
know
where,
as
so
I
can't
quote
the
name
of
the
company
at
the
moment,
but
I
would
very
enter
that
one
company
and
we've
been
doing
everything
that
we
can
to
manage
our
budget
is
to
make
sure
that
if
there's
expenditure
required
this
financial
year
1718
there
now
be
made
available
and
I
don't
see
a
problem
in
doing
that.
L
G
L
We
had
working
with
our
partner
stone
they
after
trying
to
enter
my
entrance
in
place
between
now
and
then
the
the
ambition
is
to
have
that
in
place
by
the
end
of
this
calendar
year
and
we're
working
closely
with
partners
on
that
at
with.
There
was
no
additional
funding.
Coming
from
that,
we
may
need
to
look
at
choices
as
to
how
we
spend
some
of
the
funding
that
we've
got
down
there
and
I
think
that
that's
on
the
rate
that
we
work
with
partners
cause
something
we've
done
in
the
past
to
target.
L
L
At
all,
not
I'm,
not
anticipating
any
funding.
For
that,
the
only
thing
I'm,
anticipating
in
the
budget
savings
is
in
two
years
time.
Cleveland
will
be
some
reduction
and
a
budget
as
that
money
is
channeled
to
directly
to
the
south.
It's
called
agency
I
have
no
idea
what
the
scale
of
that
would
be
or
not
at
that
stage
of
discussion.
Jackie.
Okay,
thank
you
and.
I
Briefly,
it's
another
question
on
the
budget:
this
time
on
staff
costs
looking
at
the
spreadsheet
staff
costs
as
a
percentage
of
total
income
increased
last
year
from
nineteen
point,
seven
I
think
22.5%,
given
the
squeeze
on
budgets.
Now,
when
going
forward,
what
steps
are
being
taken
to
bring
down
a
staff
costs
going
forward,
yeah.
L
I
think
yeah,
I'm
sure
you're
right
in
the
percentages
and
there
I
think
you'll
see
or
not
overall
running
costs,
there's
actually
a
reduction
of
about
4.4
million
that
we
looked
at
that
Hardin
I
was
the
first
theater
that
we
looked
at
to
try
in
a
compensate
for
some
of
the
resource
reduction
that
we
got
last
year.
Think
it's
about
seven
and
a
half
percent
reduction.
I
think
it
was
from
about
last
December
that
we
implemented
recruitment
freeze
to
manage
staff
costs
down
there.
So
I
think
the
absolute
numbers
will
be
coming
down.
L
I
accept
the
point
that
percentage-wise
they
may.
We
may
not
be
able
to
bring
them
down
as
fast
as
other
leaders
of
the
business
given
they're
a
semi,
fixed
cost
and
with
the
no
redundancy
policy,
not
that
we
would
want
to
implement
a
program
like
that,
there's
very
little
chance
other
than
normal
turnover
and
I've
turnover
rates
have
been
pretty
low
over
the
last
few
years.
Okay,
thank
you
all
right.