 The cabinet secretary will take questions at the end of his statement so there should be no interventions or interruptions. I would encourage all members who wish to ask a question to press their request to speak buttons now. Following on from the written update that was provided to members at the end of last week on the circumstances surrounding the future of burnt island fabrications or BiFab, as it is known, I wanted to take this opportunity to brief the chamber on the outcome of discussions that continued last week and came to a conclusion at the weekend and on the commitment that this Government has made to support BiFab in the future. First, a little background on the company, BiFab is a major fabrication supplier to the oil and gas sector, offshore renewables and wider infrastructure industries. It operates across three sites across Scotland, Burnt Island and Methland Fife and Arnish on the Isle of Lewis in the Outer Hebrides. It has a permanent workforce of around 250 staff with a further 1,100 staff employed via agencies to support specific contracts. On Thursday 9 November, ministers and officials were informed that BiFab was in some financial difficulty. The company contacted my colleague, the Minister for Business, Innovation and Energy, to inform him that they were about to file a notice of intention to appoint administrators the following day to protect the company. That notice created a 10-day period during which BiFab could seek a solution to their financial difficulties. From that initial contact, the Minister for Business, Innovation and Energy and I engaged in extensive discussions with the company, with the trade unions involved, with commercial stakeholders and their advisers and with the UK Government over the course of the last week. Through those discussions, we were able to provide enough comfort to the BiFab board to delay a decision to place the company into administration immediately and to secure the space for negotiations to continue and a positive solution to be found. Those discussions with the SSE, partners in the Beatrice project, Siemens, CWA heavy lifting, BiFab themselves and trade unions, uniting GMB predominantly, provided us with a clearer picture of the nature of the financial position that BiFab was in and the dispute that lay behind their financial difficulties. Throughout this time, the First Minister was kept fully up-to-date on all aspects of the situation, raising the matter with the Prime Minister and engaging directly with SSE and CWA heavy lifting, while she was in bond for a major international climate change event. This engagement continued on Thursday and culminated in two long days of discussions on Friday and Saturday last week, led by the First Minister with all the key companies that I have mentioned previously. Those discussions helped to broker a commercial agreement with the parties involved that would relieve the financial pressure on BiFab and ensure the continuation of the contract for the construction of the jackets for the Beatrice offshore wind farm project. Throughout this period, I also met with GMB and UNITE and ensured that the unions were informed of the progress of discussions with the First Minister and BiFab meeting with the unions on Saturday, shortly before the agreement was signed. This morning, the First Minister and Paul Wheelhouse visited BiFab's methyl site to meet the workforce and see some of the work being undertaken. The First Minister continues to be impressed by the commitment of the workforce and expressed to them her determination to identify ways to secure the long-term future of BiFab. I am pleased to say that I will also visit BiFab's Arnys site next week to meet with management and the workforce and see the great work that is being carried out there. The agreement reached on 18 November, lifted the threat of administration and stated that BiFab would receive payments to alleviate the immediate cash flow issues at the beginning of this week. I am pleased to be able to report that those payments have indeed been made. The agreement also ensures that the contract for the Beatrice project is now fully funded. As an added security, the Scottish Government has committed to make available, if necessary, on a commercial basis a loan to BiFab. That loan, in part, reflects our belief that there is a long-term viable future for BiFab and that we will work with the company to support its future prospects. Employees are back at work and being paid, and money has been made available to BiFab this week, allowing them to get on and fulfil the contract. Work has not stopped there. Additional support to the company is being set up, including from the Scottish Manufacturing Advice Service, S-Mass, and the Scottish Government will also have on-going engagement with the BiFab management. I would pledge today that we will continue to work with BiFab, the trade unions, and the commercial partners to identify ways to secure the long-term future of renewables manufacturing on those sites. Like the First Minister, I want to take the opportunity to pay a tribute to the workforce on all three sites—Burnt Island, Methil and Arnish. Our focus was and remains on the workers, their families and the surrounding communities. We recognise that this must have been a very anxious time for the workers, their families and the communities. However, since news broke that the company could possibly go into administration, the workforce in my view has handled the situation with great poise and great tenacity. That was not lost on the commercial partners. The workers agreed at the beginning of last week to continue working on the current order, even though they might not have been paid. I met workers representatives on Thursday during the rally outside the Scottish Parliament. I assured them then of the laser-like focus that the Scottish Government would have on retaining the jobs. They themselves will determine to see a resolution and determine to see themselves as part of the solution. I would like to pay a tribute to their perseverance. Only two months ago, the First Minister set out a programme for government, which pledged our continued commitment to maintain Scotland's world-leading position as the place for low-carbon and renewable energy development and deployment. The sector has already positioned itself as a key part of the Scottish economy. In 2015, the low-carbon and renewable energy economy supported 58,500 jobs in Scotland. That accounts for around 14 per cent of the total UK employment in the sector, much higher than our population share. It has also generated £10.5 billion in turnover, again 14 per cent of the total UK turnover in the sector, again higher than our population share would suggest. We have counted 20,000 companies in Scotland active in the sector. We have seen nearly £1 billion in capital investment in renewable power. It has generated nearly £225 million in exports. We want to continue to build on this and maximise the benefits for Scotland. There are also some real opportunities for the Scottish supply chain, including BiFab, from a number of consented wind projects—for example, NNG and Murray East. We also remain committed to pressing the UK Government in developing their industrial strategy to enable the Scottish supply chain to take advantage of growth within the sector. Scotland has the competitive advantage and the building blocks that are critical to more expansion in the renewable sector via the skills of the Scottish workforce, as well as our existing port infrastructure and location and our innovative academic community. We have, and will continue to demonstrate, our commitment and support for projects that show an innovative and world-leading approach to low-carbon energy and local energy solutions, such as those that are supported by the low-carbon infrastructure transition programme. The programme for government announced a further £60 million to be made available for accelerating innovative low-carbon project delivery by 2020, supported by EU funding. That builds on the low-carbon infrastructure transition programme, which is already allocated around £50 million to 15 low-carbon capital projects. That funding represents one of the most significant direct energy investments in the last 10 years. To conclude, the programme has been a highly stressful and troubling time for the company and the workforce. I would like to pay credit, on behalf of the Scottish Government, to the workforce and the company and to all commercial partners. If you had any doubt about what the resolution meant to them, the demeanour of both those from the company and those from the trade unions on Saturday night would have confirmed the emotional turmoil that they had gone through and the relief, which was evident. At the very least, the solution says that the contract of the Beatrice offshore windfarm project through to completion. We will continue to pursue a longer-term solution that benefits both the firm and the workforce. Dean Lockhart, thank you very much. I thank the cabinet secretary for advance copy of his statement. It is very welcome news that agreement has been reached between BiFab and the other parties involved in the Beatrice project. That will come as a huge relief to BiFab's 1,400 employees and communities across Fife and Lewis. As the cabinet secretary highlighted, that outcome would not have been possible without the hard work, commitment and dedication of the workers at BiFab. Let me also recognise the important role played by the cabinet secretary and the minister in that outcome. In his statement, the cabinet secretary referred to a commercial loan that the Scottish Government has committed to make available to BiFab if necessary. Can the cabinet secretary confirm the amount of that loan if it is necessary? In addition, what commitments have the Scottish Government or Scottish Enterprise made to BiFab in the event that it may face administration or other financial difficulties after the completion of the current Beatrice contract? Finally, what assistance will the Scottish Government and Scottish Enterprise provide to BiFab to ensure that it can compete effectively for future contracts to secure its long-term future? I thank Dean Lockhart for his comments. In relation to the loan package that he has asked about, the total sum that might be involved in that would be £15 million. As I said in my statement, that would be on commercial terms and it would be drawn down as necessary. It was quite clear during the discussions that that offer was necessary to unlock from the various partners involved and the security that the contract could be seen through to a successful conclusion. That is the purpose of the suggested loan. Of course, we will keep Parliament informed as to the progress on that as things move forward. In relation to additional support, there were a number of offers of support and not just actually from the Scottish Government in terms of providing further support to the management who had been through a fairly traumatic period to provide additional capacity through Scottish Enterprise and anybody else that we think may be able to help in that regard. I have already mentioned the Scottish Manufacturing Advice Service, plus other offers of support that are made to the company in terms of trying to seek further capital investment and further additional, if you like, advantages for the company as they scour the prospects of new contracts. So a substantial level of support provided to the company, not just by ourselves, but also by some of the parties to the agreement that we were able to reach in the end. So I was asked when I met with the not just the full-time trade union officials but also with the shop stewards if I believed that BiFab was viable and that was before we struck this agreement. I said that I did believe that it was viable and it could have a very strong future. I continued to believe that and that belief is bolstered by the agreement that we were able to reach at the weekend and we will continue to work the commitment that we gave directly to BiFab one Saturday. Paul Wheelhouse is saying that we are not walking away thinking that this is a job done by any means. We will continue to engage with the company and support it right through the completion of the contract into what we hope is a bright future. For advance sight of his statement, Scottish Labour applauded the dignity and determination of the BiFab workforce and we welcomed the intervention of the Scottish Government in securing the immediate future of 1,400 skilled workers across Fife and Lewis, but it is to the future that I want to turn. Let me ask the cabinet secretary three questions. First, does he agree that last week's uncertainty puts the spotlight on the challenges facing Scottish businesses and manufacturers in securing work from the renewable sector? Secondly, does he also agree that it raises questions about the extent of redistribution from renewables manufacturing into the Scottish economy? After all, we are talking about only 4 per cent of a £2.6 billion Beatrice Windfarm project going to Scottish manufacturing. Finally, the cabinet secretary talks about the UK industrial strategy. Does he not also agree that now is the time for the Scottish Government to work with Scottish Labour and develop an industrial strategy for Scotland that grows and sustains decent jobs and decent pay? Can I say in relation to the three questions that Jackie Baillie has raised? First of all, I think that she mentioned the challenges that companies have in accessing contracts. I think that there is no question that there are challenges. It was very evident from the discussions that we had that we were talking not just to partners in a consortium to deliver this contract but to people who were otherwise in competition with each other on a regular basis. That is very tough competition. I have no reluctance in saying that. Of course, that is the environment in which BiFab and others work. There are challenges. Over a number of years, we have tried to make sure that we have the opportunities that are being provided, not least through the Beatrice project itself, but through other forthcoming projects, some of which I mentioned in my statement, to provide the opportunities. What we cannot do is put ourselves in the place of private companies. They may have challenges and we cannot help them. They have to tell us about them at an early enough stage that we can help to deal with them. As well as the fact that we were very concentrated on the jobs, that was the thing that trade unions particular emphasised to us. We were also very cognisant of the fact how central this was to the renewables sector in Scotland and to maintain that supply chain link there. I have mentioned a number of things that we have done. I have acknowledged the fact that there are challenges. I have also acknowledged the fact that there are opportunities. I think particularly on the export side and perhaps not to the most obvious export markets that some people would think. There are challenges there and we are trying to help companies to overcome those. I mentioned where we have vastly exceeded the contribution that you would expect from a country of our size in the UK around 14 per cent. In relation to the industrial strategy, which I think was another point raised by Jackie Bailey, I have said previously that I agree with Scottish Labour when they say when the industrial strategy first came out that it was virtually no mention of trade unions or workforce inside that strategy. I have made that point to the UK Government. We do not control the industrial strategy. Both as part of the bi-fab discussions and also in relation to the industrial strategy, I spoke with Greg Clark, the minister of secretary of state responsible for that. Again, I have put the points that are of most importance to us, not least to the Scottish manufacturing advice service. We will continue to input to the industrial strategy if Scottish Labour has suggestions to make over and above that beyond the rhetoric that we sometimes hear. I am more than willing to listen to that. I have said that from the start. I am more than happy to engage in relation to that. We should get some more detail on that over the course of the next few days when I understand that the UK Government will be making an announcement on that. I am more than happy to engage with Scottish Labour on that to see how we can best progress things. I would like to put on record the commitment and dedication that is shown by a bi-fab workforce and trade unions over its difficult period to help to secure the future of a company. It was also great to see appreciation from the workforce for the role of First Minister and the Scottish Government played in securing the future of bi-fab at the Meffel site this morning. Can the cabinet secretary outline what the Scottish Government can do to help to secure a long-term future of bi-fab a skilled workforce as a major player in the renewable sector in Scotland? I acknowledge the assistance that we received from David Torrance and the support of other members, Claire Baker, Jenny Gilruth, Alasdair Allan, Dean Lockhart and others, all of whom represent areas that are directly impacted by that. In direct response to David Torrance's question, I would say that we, along with Scottish Enterprise, as I have said, are continuing discussions with the company. I am looking to see how we can help to ensure that bi-fab is seen as an attractive location for additional capital investment. I think that that is crucial to the company's future, if it is to win those further contracts that we want to see them win. As part of the package announced at the weekend, we will ensure that further support is given both by Scottish Enterprise and also through the Scottish Manufacturing Advice Service. There is more happening in relation to that, which I am not able to, because of commercially confidential reasons, to advise the chamber of, but as we get more information, more hard and fast information, of course, I am happy to keep members alike David Torrance updated with the progress of those discussions. Mark Ruskell to be filled by Willie Rennie. I welcome the intervention that the Scottish Government has made to save jobs at bi-fab, responding to the dignity and the unity of the workers. Everyone in the industry knows that a key way to secure and grow jobs in the offshore renewable supply chain is through cost reduction as part of an industrial strategy. The cabinet secretary mentions a low-carbon infrastructure transition programme in his statement. That is a fund that is not even open for the offshore renewable sector to bid into. What funds and support are specifically available for cost reduction in the supply chain so that we can give the workers at bi-fab long-term livelihoods rather than just short-term salvation? Mark Ruskell for his remarks and also agree with his remarks about the workforce. I have mentioned some of the specific funds that we have available to assist the industry. In addition to that, the support that we will provide through Scottish Enterprise will include looking at issues such as cost reduction and other ways in which we can help the company to bid for and win future contracts. There is a wind group that is currently established that has the different players in the industry looking at that to see how best we can do this. He will be aware of the reducing costs of providing renewable energy, which has reached an all-time low of late. The cost of producing has been reduced. Of course, we want to see the company being competitive. That is what the aim of the different levels of assistance that I have mentioned is seeking to achieve. Willie Rennie to be followed by Murdo Fraser. I thank the minister for his efforts and those of others to save the jobs at bi-fab. The workers that I speak to are relieved but frustrated that it came so close. They reminded me that Alex Salmond, when he was First Minister, promised a new industrial revolution based on renewable energy. I am sure that that is not what he had in mind. So what are the minister's plans to grow the activities such as design, research, marketing and development to anchor those renewable jobs in Scotland in the future? I think that Willie Rennie must be absolutely obsessed by Alex Salmond, to be honest. I noticed that that was his question at First Minister's questions last week. I have already mentioned some of the assistance that we can provide, but Willie Rennie will also know that, in the programme for government, we have announced a substantial increase in R&D available as well. Of course, that is available to the renewable sector. I have also mentioned some of the other funds that we are seeking to make available to the company. I have also spoken to large numbers of the workforce and have had extremely positive feedback on the basis of the Government's intervention along with many others. It is important to recognise that this is a private company that is involved in a private contract. When the Scottish Government became aware of issues in relation to that, we have acted as quickly as we could in order to ensure that contract can be fulfilled. More importantly, many of the employees, some of whom will be in my constituency, some of whom will be in Willie Rennie's constituency, stayed employed. They were looking at a Christmas without wages and employment last week, and we have acted very quickly to ensure that that is done. I would also say that, in relation to the Scottish Government's approach to it, if he was to go and ask the different parties, the companies, the trade unions and others involved about the activities of the Scottish Government on Thursday and Friday, I received nothing but positive commendation from them for the commitment that we showed, the time that we gave to it, the number of people involved with it and that includes officials as well as ministers. Having put that much effort into doing that, of course he wants to see if he can maximise the benefits for the industry. I have mentioned the different things that we intend to do, but it is also worth bearing in mind that this is not an industry on its knees, 14 per cent in terms of the turnover that I have mentioned already and the workforce. We are doing a good job just now, but I do accept that there is more that we have to do, and many of the measures that have been announced today are trying to make sure that we have a brighter future in terms of renewables. Murdoff Fraser, to be followed by Jenny Gilruth. Given the importance of offshore renewables to the future of BiFab, is the cabinet secretary in a position to give us any update on when the offshore wind projects in the 1st of 4th and Tain, which were held up by the recent legal challenge by RSPB, thrown out by the Supreme Court, are now likely to proceed? Of course, some of those have been quite protracted, especially the one in the fourth, which Murdoff Fraser mentions. They are going through different processes in each of those cases. In some cases, we are not able to foreshorten that process, so I would expect around 2019, before those projects come forward. Jenny Gilruth, to be followed by Clare Baker. I echo the words of my colleague David Torrance MSP and put on record my sincere thanks to all those involved in reaching a resolution. Can the cabinet secretary outline what support is being provided to BiFab to ensure that a similar situation does not arise in the future? In addition to what I have said already, I would say to Jenny Gilruth that it is fair to say that the company itself is much more aware of the assistance that the Scottish Government is able to provide, but we do not want to do it in that kind of crisis environment in which we had to operate last week. On three occasions, the company was about to go into administration and twice I phoned them to postpone that so that we could get the time and space to work. That is not ideal. The underlying point behind Jenny Gilruth's question is what can we do to make sure that that does not happen? It is very important. I have mentioned the different measures that we have taken. I would, in addition to mentioning the Scottish Enterprise support, seeking further capital investment and looking for further contracts. In addition to those things, the other things that I have mentioned in terms of activities by the Scottish Government and the company jointly, which I am not able to go into more detail, I promise and undertake to make sure that both Jenny Gilruth and other interested members are kept updated as those progress. Claire Baker, to be filled by Stuart Stevenson. I recognise the commitment, tenacity and determination of the workforce in recent weeks and the community in making sure that that deal could be reached. I understand that this contract is due to be competed in April. How can the Scottish Government and its agencies help to promote and restore confidence in BiFab so that it can exploit upcoming opportunities and secure future work for the yards to maintain those vital jobs within BiFab? I thank Claire Baker for her comments about the workforce, which we all agree with. There are two things that are essential to ensuring the future success of the company. One is delivering on the contract. That is extremely important. We are putting in the support to ensure that they are able to do that. In addition to that, different parties that have the contract are also putting in support to make sure that that happens. By saying that the company can deliver contracts like that, that builds confidence for others to place contracts. The second point is winning those contracts, which is very important. We want to provide whatever support we can within the rules in which we have to operate to help the company to win those future contracts, and it is a virtuous circle. If you win the contracts, confidence grows. If you deliver the contracts, your reputation grows at the same time with more chance of winning further contracts. That is what we are trying to do. Stuart Stevenson, to be followed by Alexander Stewart. With BiFab playing a major part in the development of the Beatrice offshore wind farm, can the cabinet secretary confirm that it is also very welcome that many companies and projects that depend on the continuing existence of BiFab? Beatrice is something that I can see at night from my own garden, so I am close to it and know how important it is. Is that a key part of ensuring that we continue to promote renewable energy and the businesses that depend on it? I think that Stuart Stevenson draws out a very important point, which is that of other companies. I would in particular mention NRL in that regard. He also employed people who were also dependent on this work continuing. He will also benefit if we are able to grow what the business currently does by winning future contracts. I acknowledge that. It is an extremely important part of the Scottish supply chain. It was interesting to hear from different aspects of the discussions last week. The extent to which, again, as Clare Becker mentioned, the workforce itself is seen as the most valuable asset by far that company has and is internationally recognised for the skills that it has. It has to have a tougher focus on delivery, there is no question of that. However, if we can do that, having the opportunity to trade on the reputation of that workforce, I think that we can continue to see BiFab as a vital part of the Scottish supply chain. I would also like to pay tribute to the workforce during this turbulent time for the company and the locations that they work in and for. The UK Government today announced further support for the oil and gas industry through transferable tax relief. Can the Scottish Government advise what medium and long-term support it is offering BiFab? I think that I have mentioned on a number of occasions the different forms and the nature of the support that we would offer BiFab. In relation to the UK Government's support, we have asked the oil and gas side of things for a number of years now, for loan guarantees, for example, we were told initially no, we were told yes and then nothing has happened. That is a vital part of the support for the infrastructure and the oil and gas industry and also leads on through the supply chain. We are still waiting to find out if the much trumpeted ambassador to be appointed by the UK Government for oil and gas has been appointed or cited anywhere near the oil and gas fields of the UK. We have had some frustrations with the UK Government. There is an opportunity, perhaps as raised by Jackie Baillie, for us to work closely with the Scottish Government in relation to the industrial strategy to provide further support, but, again, as has been made evident by members in the statement or topical questions last week, trying to ensure that the best place to help that transition from oil and gas and carbon-based fuels to water renewables is also very important. I hope that the UK Government is willing to work with us to make sure that we can further bolster the industry here in Scotland. Gail Ross, by Claudia Beamish. I welcome the Scottish Government's commitment to maintain Scotland's world-leading position as a place for low-carbon and renewable energy development. Does the cabinet secretary agree with me that the renewables industry is not only important for our long-term environmental goals, but also has wider community benefits, particularly in my constituency of Caithness, Sutherland and Ross? I can also see the Beatrice development from my window. Cabinet secretary. It's good to know that so many people are keeping an eye on Beatrice. I do agree with Gail Ross about the crucial nature, especially in an area that she represents, where high-value jobs in rural areas are extremely beneficial. The renewable sector and its supply chain is crucial to the future of the Scottish economy more generally, as well as Gail Ross's own area. As I've said, it already punches above its weight. It employs around 58,500 people. I'm not sure that's evident from some of the questions that have been asked. 58,500 people, 14 per cent of the UK total, and a turnover of around 10.5 billion pounds—again, 14 per cent of the UK total. We here in the Scottish Government are determined to see that growth further in the future, both for the benefit of areas such as Gail Ross and, of course, for the Scottish economy more generally. Claudia Beamish, to be followed by Avon McKee. The cabinet secretary states in the statement that there are some real opportunities for the Scottish supply chain to take advantage of growth in the sector. There have been some missed opportunities for renewables manufacturing in the past, not least in onshore wind manufacture. Will the cabinet secretary agree to commission a scoping exercise for supply chains so that we can plan strategically to develop jobs here across Scotland, urban and rural, through our all-regions, building on our own industrial strategy, which must be developed as a matter of urgency? I would reassure Claudia Beamish that much of that work has already been undertaken. I think that there is some very important work in terms of the supply chain—the collaboration that can take place in the supply chain. It's true to say that that collaboration has not been what it should be up to this point. If the supply chain in Scotland is more able to collaborate more effectively, there are greater chances of winning more business. In terms of scoping that out, I think that much of that work has already been undertaken. I am happy to provide that information to Claudia Beamish if she remains dissatisfied and wants to come back, then I am more than happy to listen to that in the future. Much of that work is under way, and I would say that that is on top of the success that we already have, but we want to do more in the future, if possible. Thank you. In my role as parliamentary liaison officer for the economy and from my previous career in manufacturing business, I turn around and am well aware of the hard work and imaginative solutions that ministers will have put into the rescue of BiFab. That is one of a long line of successful interventions by the Scottish Government to save manufacturing businesses. Can I ask how the lessons learned in those exercises can be employed to good effect to support other key businesses in key manufacturing sectors across Scotland to grow and expand? Yes, I think that it is very important in response to Ivan McKee that we do learn lessons. I think that there are lessons in here, as there always must be for the Government as well, in terms of how we can respond and become involved in these situations earlier. I have said to people that if they had seen the activity on the fifth floor of St Andrew's house last Saturday and then speeded it up if it was filmed and then put a Benny Hill soundtrack to it, they would have seen a huge amount of activity with different parties talking to different people at different times. We will learn lessons from that. It was an experience that, dealing with a number of partners involved in the consortium, dealing with the trade unions and making sure that they were kept up to the minutes in terms of how things were going, we should learn lessons. However, yes, Scottish Enterprise BiFab will have to learn lessons from that, and I am sure that it will. What we can do to help that learning process through the work of the Scottish Manufacturing Advice Service is also crucial and important. We should all learn lessons from this process. I thank the cabinet secretary and members for their co-operation. We now move on to the next item of business.