 The next item of business? Order of order. The point of order is by and by Andy Wightman. Thank you, Presiding Officer. This morning, I was asking a supplementary question to question six at First Minister's questions. I should have drawn attention to members to my register of interests as the operator of a who owns Scotland website, but I apologise for not having done so, so I draw members' I want to give her your attention to it. Thank you very much Mr Wightman. That is now Julie Noted. The next item of business is consideration of business motion 10993, in the name of Joe Fitzpatrick, on behalf of the parliamentary bureau, setting out a timetable for the offensive behaviour of sportball and threatening communication repeal Scotland Bill. S cam I ask any member who wishes to speak against the motion to press the request I press anyone. I call on Joe Fitzpatrick to move motion 10993. The question is that motion 10993 be agreed. Are we all agreed? The motion is therefore agreed. The next item of business is a statement by Keith Brown on an update on the south of Scotland partnership. The cabinet secretary will take questions at the end of his statement interface statement and so there should be no interventions over interruptions. I call on Keith Brown. Ten minutes please, cabinet secretary. I welcome the opportunity to update members on the progress that we are making to deliver a new Enterprise Agency for the south of Scotland. Members will recall that one of the key recommendations from last year's Enterprise and Skills review was a commitment to a new agency supporting inclusive economic growth in the south. The review recognised the unique circumstances of the south of Scotland, its strengths, its opportunities and its challenges. It also acknowledged the benefits that a new agency could deliver, developing a deeper understanding of the south of Scotland and tailing a response informed by that understanding. We know, of course, that the south of Scotland has great potential. It has woven into the fabric of our economy. It plays a key part in our economic history, for example, nurturing our textile industries. It is a beautiful region of Scotland attracting visitors from far and wide. Tourism is an extremely important part of the economy of the south of Scotland. Its agriculture and forestry sectors are thriving. It is as rich as anywhere in renewable energy resources and its businesses—many small and family-owned businesses—show a real entrepreneurial spirit. We want to ensure that the south of Scotland plays a key role in our economic future, too. We know that the south faces some economic challenges. It has, for example, more people working in lower-paid jobs in other parts of Scotland. It sees fewer businesses start up in the area than elsewhere and their success rate when they do start up is lower. Its businesses spend significantly less on research and development, and a higher number of its young people are leaving and are not finding opportunities to attract them back to the area. We have a tremendous opportunity to work with businesses and communities to help to transform the economy, generating a response that in turn responds to the needs of generations. That is to ensure that people in the south of Scotland are able to fully participate in the economy and to access the opportunities that are there, and that we can help to develop the skills that are necessary and tackle the barriers that might be getting in the way. It is an opportunity to be bold and ambitious and to do things differently to benefit the area. In our programme for government, we made a commitment to introduce legislation later this year to establish a new body. We also committed to putting in place interim arrangements in advance of the statutory body. Today, we take an important step in that legislative process. I am delighted to launch the public consultation on the south of Scotland enterprise agency. It will open today and it will run for 12 weeks until the 7th of June. In the consultation, we have set out what we see as the three initial high-level aims for the agency. First, we want it to drive the economy forward with growth and a way that creates opportunities for all. We also want to help businesses to become more productive, focused on fair work opportunities and tackling issues that prevent people from fully participating in the economy. Secondly, we want to sustain and grow our communities, building communities that can play a greater role in the economic, social and environmental success of the area. Thirdly, we want to capitalise on people and resources, developing skills and making the most of all the assets of the area. The consultation that I have launched today seeks views on the detailed, specific activities that people want to see the agency carry out. The responses that we receive will help to inform the legislation for the new body and help to shape its structure, a milestone moment in the economic future of the south. We will complement the written consultation with a series of events across the south of Scotland to hear views directly from those with a stake in the agency's future. In this year of young people, we shall make sure that we hear their voices too. I do not need to tell members that legislation takes time. We hope that this Parliament, if it is supportive, means that we can have the new body up and running by 1 April 2020. We cannot and we do not want to make the south of Scotland wait any longer than that. It is vital that the area sees the benefit of a fresh approach as quickly as possible. To that end, we have established the south of Scotland economic partnership to take things forward in the meantime. The partnership is chaired by Professor Russell Griggs of the OEB. The partnership brings together public sector organisations that support economic growth in the south of Scotland, with members from the private third and further and higher education sectors. Like us, the partnership is ambitious for the south of Scotland, seizing the opportunity to do things differently. It will ensure a fresh approach to securing inclusive economic growth with the private and third sectors central to its work and helping to shape and design services. The interim period that we have provides the opportunity to align existing activities, making sure that current services are as effective as they can be in addressing people's needs. It also allows us the opportunity to trial new approaches to economic development, and it will help to prepare the way for the new agency, assessing what has worked and before, and ensuring that the agency is responsive to and informed by the needs of the people of the south of Scotland. When I met Russell Griggs last week, he set out the progress that the partnership has already made since its first meeting in February. He also emphasised to me the commitment to energy and enthusiasm that members have already brought to the task and the determination to improve the economic outcomes for the south. The partnership is now working on a clear and prioritised work plan that will set out what it will be doing. It is clear that its work needs to be shaped by the needs and perspectives of people in the south of Scotland. To that end, it has established six specific theme groups to explore issues that are key in their view to the success of the south. That will enable the partnership to draw in views from across the south, capturing perspective and expertise. The groups are farming, forestry and land management, key sectors, education and skills, infrastructure, communities and business support, and they will identify key issues and explore how they could be addressed. We are committed to the success of the partnership, and in our 2018-19 budget, we have allocated £10 million in additional resources to support its work. That is over and above the resources that partners already invest across the area. Our additional resources will support new activity that would not otherwise have happened. The partnership will make recommendations on potential projects that will assess them against clear and consistent criteria, ensuring that they deliver real impact and economic benefit. Of course, those resources that I have mentioned build on our other investment in the south of Scotland, investment in innovation through my colleague Paul Wheelhouse, through skills, through Jamie Hepburn, businesses and infrastructure. Some examples of that investment include, of course, the £275.5 million investment in the new Dumfries and Galloway Royal Infirmary, which opened in December, £68 million from our schools for the future programme and aid schools across the area, £60 million through the Scottish Funding Council in further and higher education over the last three financial years, and £353 million in the increasingly successful Borders Railway, which was, just to remind the Parliament, the longest piece of new rail infrastructure in the UK for 100 years. I look forward to working with members over the months ahead as the partnership takes forward its work and we shape the new agency. I believe that this is a very exciting time for the south of Scotland, and I encourage all members here and members of the public to be active participants in the consultation process that we are lodging today. The cabinet secretary will now take questions on the issues that are raised in his statement and I intend to allow around 20 minutes for that. It would be helpful if members who wish to ask a question or to press their request to speak muttons now. I thank the cabinet secretary for his advance copy of his statement. We welcome progress made in the establishment of a new enterprise agency for the south of Scotland. It was, after all, originally a policy of the Scottish Conservatives. We will support all steps to encourage sustainable growth across the south. That will require an approach that is tailored to the unique characteristics and needs of the economy and the workforce of the south, as well as tapping the real potential that exists in the region. There is much work to be done on this front because the economy of the south has suffered in the past 10 years. GDP and productivity levels in the south are 20 per cent below average levels in Scotland. With that background, I have the following questions for the cabinet secretary. Recent figures show that productivity levels in the south and GDP have been in decline. What steps will the cabinet secretary take to reverse those worrying trends in the south of Scotland? In his statement, the cabinet secretary mentioned that the budget allocated £10 million to the south of Scotland economic partnership. As he knows, it will take more than £10 million to address the economic challenges in the south. Can the cabinet secretary confirm what additional budget will be available for the enterprise agency once it is established? Can I respond to the first point that was made by Dean Lockhart? I was not aware when it became a Conservative Party policy. Maybe it was a bit of a secret, but I know that, however long ago it was, the various things that I described as having been done, for example the Borders Railway, were also at various points different parties' policies. The differences that we have delivered have had decades to deliver that, and we did not do it. We are the ones who are delivering it. I think that we have had a relatively consensual approach to this up until now, and it is unfortunate that Dean Lockhart has chosen to deviate from that. I have laid out before the response that we are making across Scotland in terms of productivity and in terms of GDP and underlined on many occasions. Members across the chamber, apart from Dean Lockhart's benches, acknowledge that Brexit presents a very real threat to the economy and is having an effect now on the economy. One of the responses to the situation that Dean Lockhart describes is the establishment of the agency itself, which I hope that we would have support from the Conservatives for. In relation to the £10 million initial investment and how that will develop in future years, of course that is for future budgets, but there was no proposal, as far as I am aware, from the Conservatives to have a higher allocation from that in any alternative version of a budget produced by them. They will be free, of course, in future years to do some work on that and put forward an additional proposal and say where the money should come from. However, I think that it is along with the discussion that we are having in terms of a potential Borderlands initiative, along with establishing this agency, that is £10 million, which will be very well received in the south of Scotland and used for good purposes. Colin Smyth, the cabinet secretary for advanced sight of his statement, having campaigned for many years as a councillor and chairperson of the south of Scotland Alliance for that, a rethink on the support provided to the area to tackle our huge economic challenges. I very much welcome the proposal to establish at south of Scotland enterprise agencies. I look forward to shaping the final proposals when legislation comes before Parliament. Given that the recommendations to establish that the new body was made in October 2016, I am sure that the cabinet secretary understands that there are frustrations that the start date of April 2020 for the new agency is still more than two years away, but the economic challenges are there just now. That timetable means that the work of the interim partnership is therefore going to be vital. I note that, in his statement, the cabinet secretary said that the partnership will make recommendations on how to spend the £10 million budget, but can he confirm who will make the final decision on how that money is spent and will he give a guarantee that the decision will be made in the south of Scotland? Ensuring that the decisions are made in the south of Scotland by those living in the south of Scotland is a vital principle for the new body. Can he give a comment that the membership of the new agency will be genuinely determined by local stakeholders in the south of Scotland? Finally, skills will be a crucial part of the new agency. Can the cabinet secretary say a bit more about whether existing powers and resources that sit within Skills Development Scotland will be devolved to the new agency when that agency is established? There is quite a lot on there, but to go to the first point that Colin Smyth made, of course, we would like to do this as quickly as possible. I do not see any way that we can truncate that 18-month period before we can establish it and I am open to any suggestions about that. That is just the nature of parliamentary legislation. I agree with Colin Smyth's point that we cannot wait for that. That is why we have established a partnership and allocated very substantial funds to it. That is also why we are drawing together the existing actors in the south of Scotland to try to make an impact as soon as possible. On skills, I have said not least on the Ayrshire partnership, the three Ayrshire councils. If there is a proposal that comes from any part of Scotland to try and see how they can work with skills development more closely and reflect the local needs and the local needs of skills, I am more than willing to listen to that. I have said that since the enterprise and skills review was undertaken. I have said that. There are some early signs that the partnership is grappling with that. There is some very good collaboration between the two councils involved, and it is down to the partners that we have established on that partnership to come to the Government at the suggestion of other people, such as Colin Smyth or people from the south of Scotland otherwise, to come forward with their suggestions. I would approach that with an open mind. On how the money is spent, there will be a discussion between the Government and the partnership, as it should be. It is the same as it happens in the city deals. We have a custodial duty in terms of public funds, but those submissions are being made to the partnership just now. They are the ones that are considering the various proposals that are being made for that. Of course, there will be a discussion with the Government on it as well. I have quite a lot of questions that people want to ask. If we can have quick questions and answers, we should be able to get everyone in. I have Emma Harper, followed by Rachel Hamilton. To ask the cabinet secretary if the new board for the south of Scotland economic partnership intends to give consideration to infrastructure investment, such as roads and rail networks, as part of the new agency's support and inclusive economic growth. Keith Brown. Yes, it will be able to take decisions in terms of infrastructure investment, but those decisions will be formed by the representations that they received and the view of the partnership as to what the priorities should be. There is no question of excluding issues such as infrastructure investment from the remit. Rachel Hamilton, followed by Joan McAlpine. Tourism is a key sector in the south of Scotland region. In the Scottish borders alone, it contributes £194 million annually. Does the cabinet secretary understand that, by not robustly identifying it in his statement as a key group, risks this sector being overlooked or not capitalising its worth through the south of Scotland economic partnership? By including tourism and growing the sector, it can improve low productivity, increase below average wages and business sizes. Would the cabinet secretary consider my request on behalf of the tourism sector to include it in the key sectors? Keith Brown. I mentioned the very start of my statement. It is crucial. I recognise that. That is why I mentioned that I am talking about attracting visitors from far and wide and how central tourism was to the south of Scotland. Perhaps the member has missed that, but I agree with her. I cannot take a question from a sedentary position. I recognise that. The six key sectors that I mentioned are the ones that the partnership has come up with. As I said earlier on my statement, if you want to make representations to influence that, please do so directly to the partnership as well as to me. We can have that conversation. We are not putting a block on that. We are very seized of how important tourism is. I think that we can agree on that. Joan McAlpine, followed by Jackie Baillie. Thank you very much. I, too, welcome the establishment of the partnership. As a member of the economy committee of the last Parliament, I often called for tailored support for the south of Scotland. Can the cabinet secretary indicate whether the new partnership will consider the support that it can give to the creative industries—a key sector in the south? Given that many of those industries are currently supported by Business Gateway, what the role of Business Gateway will be when the agency is up and running? I thank Joan McAlpine for her question. I also say that, in relation to creative industries that she has raised and Rachel Hamilton's point on tourism, I mentioned that key sectors were an important part of one of the six strands of the activity that has been taken forward. It is one of the reasons why, if Fiona Hyslop is here, she has a responsibility for both the creative industries and tourism, and that reflects the importance that we place on those things. The board, and I know that Joan McAlpine is aware of that, draws on the experience of those in the creative industries. One of the theme groups that I mentioned will focus on, as I have said, the key sectors, and there is no question that creative industries are one of those. Decisions about the scope of activities of the new agency are still to be finalised, and we will consider any suggestions on the future role of Business Gateway as part of the next stage. However, that initiative will have to come from the local authorities who are responsible for Business Gateway at this time. Jackie Baillie, followed by Andy Wightman. I welcome the south of Scotland enterprise agency and the £10 million of funding, and I wonder whether I could explore a principle with the cabinet secretary. Does he envisage the funding that is increasing in due course to at least match the funding that is received by Highlands and Islands Enterprise, which, given population levels in the Borders and Dumfries and Galloway, is actually higher than those in Highlands and Islands? Keith Brown It is not the will to give a definitive answer at this stage. One is because, unlike in the Highlands and Islands, Scottish Enterprise is still actively involved in spending money in the south of Scotland at this time, and that will take some time to work through the system. The second reason is that I cannot lay a claim on future budgets in the absence of the finance secretary, so she will understand that budget process. However, it is our ambition to make sure that the body, both the partnership and the agency that will succeed it, will have the resources in order to take forward that transformative stage. That is our ambition but, of course, we have to wait and see how it develops in future years. Andy Wightman I thank the cabinet secretary for advancing notice of his statement. The establishment of this agency was a manifesto commitment to the Scottish Greens as well, so welcome progress. Two questions. Given that social enterprise, employee, ownership and co-operatives are inclusionally recognised as the business models of the future to create resilience, sustainability and fairness, does he agree that such models should form a core part of the work of the new agency? He said in his statement that he was committed to listening to young people in the development of the legislation. Can he advise the chamber how he intends to do this? Keith Brown I think that on the latter point raised by Andy Wightman, that will be done through the consultation process, both in terms of the meetings and the way that the consultation invites responses to make sure that we are targeting the specific work that is going on within the Scottish Government to make sure that we have representations from young people. In relation to his other point, it is good to say that the public is beginning to learn if he wants to deliver things in other parties' manifestos, vote SNP and he will do it for you. I seem to be everyone's manifesto commitment, but we should all be agreed on this. The various models that Andy Wightman mentioned, yes, of course, there is no reason why the partnership should not consider those. I would say once again, rather than I am not suggesting that Andy Wightman would do this, rather than waiting to see if it bubbles up, make sure that we put that consultation response into the process so that that is uppermost in the minds of the partnership going forward. Willie Rennie, followed by John Mason. I just want to follow up on Colin Smith's question, because I do not think that he got the answer that we were really looking for. I do not think that anybody in this chamber would be against discussion between ministers, the enterprise and skills body, and also the South of Scotland partnership. The real issue is who makes the final decision. Is it going to be in the central belt or is it going to be in the South of Scotland? Keith Brown? It may not have been the answer that Willie Rennie wanted, but I am used to being in that position, to be honest. The answer is the answer. It will come forward from the partnership. The submissions have been made and many representations have already been made to the partnership, but he will understand that there is a responsibility in the Scottish Government for the proper expenditure of the resources of the taxpayer. It is also the case that, as things stand, we have not had the primary legislation to establish an agency, which has obviously got that accountability. That is a partnership. Of course, there has to be a role for the Scottish Government. In due course, when it becomes an agency, of course that is a different proposition, and all the decisions will be taken by the people in that agency. John Mason, followed by Finlay Carson. To follow up from what Andy Wightman was asking, can the cabinet secretary expand on how he might draw in groups that do not normally take part in consultations? At this stage, it might seem a bit of a dry subject to many people, but they might not realise that, in practice, it is going to be very important for them. I think that that is a very good point raised by Andy Wightman and John Mason. As I said in response to Andy Wightman, there is a lot of work going on within the Government to make sure that in terms of the location, accessibility and the appeal of the various events, the consultation events that are happening, that we get as many people as possible along to those, and that a particular effort is made to get in the case that has been mentioned already, young people to come to those. There is a great deal of work. I am happy to write to both Andy Wightman and John Mason with the work that is going on in the Scottish Government. The venues are pretty much where they need to be now, but in terms of how we attend to attract people and, in particular, people that would not normally get involved, I am happy to write to both members for more details. Finlay Carson, followed by Willie Coffey. Thank you. The cabinet secretary in his statement mentions two times a bit of fresh approach and do things differently. I would suggest that that is a recognition that, over the past 11 years, his SNP Government has failed South of Scotland, and I welcome the opportunity that the new South of Scotland enterprise agency will bring. However, I have some concerns on the specific themes that have been set up in the six key areas. I am disappointed that, like my colleague here, tourism, but energy has not been included. Given the number of renewable energy projects in the south of Scotland, can the cabinet secretary explain how energy and the potential for energy generation and storage will be met through the enterprise agency? Keith Brown I mentioned the key sectors. Of course, energy is one of those. My colleague Paul Wheelhouse has already had a number of discussions with interests in the south of Scotland on the potential opportunities that are there. However, the member accuses us of failure. We have established this body. I do not know how long the Conservatives are going to take to get around to doing this. We are the ones that are establishing it. Of course, it is the case that we want to see if that can have a fresh approach, and it is the case that we want to see if it can replicate some of the successes of Highlands and Islands. If the member is generally supportive, he hides it quite well. Willie Coffey, followed by Claudia Beamish Thank you. The cabinet secretary will be aware of the close and common interests between the south and south west of Scotland. He will also be aware that the Secretary of State, Mr Mundell, has given his full support to the borderlands growth deal, where his constituency lies. Can the cabinet secretary tell me what progress has been made in discussion with the UK Government to support the wider economy in the south and south west of Scotland, particularly with regard to transport infrastructure improvements? Keith Brown We have consistently pushed the UK Government to commit to 100 per cent coverage of growth deals across Scotland. That includes the Ayrshire growth deal, which preceded by some way the emergence of the borderlands deal. However, we have said that, as a Government, we are committed to growth deals for the whole of Scotland. That seems to us to be the only equitable way to proceed. I have some increasing confidence that the UK Government will also support that. I am not sure the basis on which that support will come forward, whether it will be the same as the city deals 50-50 reserved and devolved. It was due to have a discussion with Mr Mundell recently, but, unfortunately, it had to be postponed. I expect to be discussing that with the Secretary of State shortly. I am more optimistic that we will see a commitment from both Governments to 100 per cent of growth deals to cover some of the questions that Willie Coffey has just raised. Claudia Beamish As I understand it, there is no union involvement in the interim body. The cabinet secretary recognises that South Scotland has more people working in lower-paid jobs than other parts of Scotland. The statement also focuses on the fair work opportunities in which the South Scotland agency will bring. Will the cabinet secretary commit today to real union participation in the South Scotland partnership and agency by adding them to the list of themed groups and membership? Will he also clarify whether there will be a social remit to the new agency? Keith Brown Claudia Beamish raises a fair point. We had a discussion through the joint meeting with the STUC and trade union partners recently on the issue. There will be substantial engagement both through the fair work convention and by a number of other means with the trade unions, not least for the reasons that she mentions. It is very important that we have that approach to taking that forward. It is also the case that, in relation to low-pay and some other issues, there is a real need to have that discussion. However, we believe that the different measures that we have already, not least through the fair work convention and the regular consultation with trade unions, should allow us to take forward those issues. On the specific point that Claudia Beamish raises, I am happy to write back to the member definitively on that. Christine Grahame On tourism, while wellbeing support for the Borders railway and the Great Tapestry to be located in Gallashields, note in your speech that you refer to additional resources to support new activity. Can I suggest that that should include existing activity, such as smells, printing works and interleeding, which is having its funding cut by the national trust, is a wee gem and the last working printing works in Scotland? Indeed, the member cannot suggest that. I would say that she could suggest it. Also to the partnership, which has now quite an expanding list of different proposals and different priorities being presented to them. Just to reflect some of the concerns raised by members of other parties, it is right that those proposals go to that partnership. They are the ones that consider them, they are the ones that prioritise them. It is a very important issue that we should look at what is there currently and not always assume that we have to do just something new alone. I would suggest to the member that if she wants to get in touch with the partnership, it would be well received to hear suggestions such as the one that she has made. Just to bring members to my register of interests, which I failed to do so before my question and that I am a business owner in the Scottish Borders, thank you. That concludes questions on the ministerial statement being the update in the south of Scotland partnership. We will move on to the next item of business and I will give folks a few moments to shift around.