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Foi 17 01428 (2).Pdf ANNEX B ONE Meeting – Minister for Business, innovation and Skills Friday 31 March 2017 Date and Time Friday 31 March 2017 of Engagement 11:30 – 12:30 Where Opportunity North East 11 Queens Gardens Aberdeen AB15 4YD 01224 061110 Key Message The North East has a highly talented oil and gas workforce with skills that can be utilised in a wide range of different sectors. New high growth entrepreneurial opportunities may arise from diversification from oil and gas – but equally from emerging business opportunities in the nascent sectors in the region such as digital and biotherapeutics Who Sir Ian Wood GBE, Chair of ONE Oil and Gas Sector Board Jennifer Craw, Chief Executive of Opportunity North East Patrick Machray, Vice Chair of ONE and also Chair of the Food, Drink & Agriculture Sector Board What Meeting to discuss ONE issues, including the Life Sciences Hub development, the Enterprise & Skills Review and possible regional partnership approaches. Why Sir Ian invited you to meet to discuss Opportunity North East. ONE are the private sector partner in the Aberdeen City Deal and work closely with Scottish Government enterprise agencies. Sir Ian is stepping down as Chair of ONE Oil and Gas Board following its next meeting. Trevor Garlick (formerly of BP and a member of the Energy Jobs Taskforce) will take on the role of Chair. Sir Ian also is also stepping down from Oil and Gas 4 Technology Centre (OGTC) post March – Archie Kennedy (formerly of Nexen) is taking on that Chair role. When 11:30 – 13:00, Friday 31 March 2017 Supporting [REDACT] , Oil and Gas Policy, [REDACT] Official [REDACT] , OCEA, Office of Chief Economic Adviser, [REDACT] Media No media planned for meeting. Handling A first person piece is running in Energy Voice focusing on Total Value Added of the oil and gas sector. Arrival Officials will call [REDACT], prior to arrival to meet the Minister and escort him to the office. Briefing Annex A – Agenda and Key Discussion Points Contents Annex B – Background on ONE Annex C – Oil and Gas Core Brief Annex D – Brief on Prof. Kemp Paper Annex E – Enterprise and Skills Review Annex F – Life Sciences in Scotland Annex G – Aberdeen City Region Deal Annex H – Biographies 5 ANNEX A: AGENDA AND KEY DISCUSSION POINTS AGENDA 1. Welcome and Introductions – 5 minutes [REDACT] 2. Wrap up - 5 minutes [REDACT] 6 KEY DISCUSSION POINTS: [REDACT] Renaissance Vision On Monday 27 March ONE reported on its first full year of operation and held an inaugural annual event, Towards Economic Renaissance, in Aberdeen. The event highlighted progress in key areas including Oil and Gas, Food and Drink, Tourism and Life Sciences. Strong messages were given about the need to both maximise Oil and Gas to the benefit of the local economy but also grow these other sectors. Key Lines The Scottish Government is committed to Maximising Economic Recovery from Scottish waters, alongside a focus on MER it is important to consider how we can make sure that the benefits from the remaining opportunities in the North sea are captured in a sustainable and inclusive way. You have just come from a meeting with a company (EC-OG) demonstrating the innovation and expertise necessary to succeed in the Scottish oil and gas industry and globally. We agree on the importance of growing non-oil and gas sectors in the North East, and we are keen for the Scottish Government and our Enterprise Agencies to continue to work with ONE to achieve this, we also recognise that the oil and gas workforce are highly talented with skills that can be utilised in a wide range of different sectors. [REDACT] [REDACT] Key Lines A Strategic Board will oversee and strategically lead the joining up of business support by our enterprise agencies, We will also work to ensure this is aligned with Business Gateway, local authorities and other providers of business support . The Scottish Government has made it clear it will continue to listen to people’s views as we progress to the next stage of the review as we are committed to doing all we can to boost Scotland’s economy. The Cabinet Secretary for Economy, Jobs and Fair Work set out in a statement yesterday that: The powers of the four agency boards (SE, HIE, SDS and SFC) - including their names, functions and structures, will remain unchanged. And said ‘’ Far from diminishing the role of the agencies, I want to strengthen their capability and encourage greater collaboration. The Strategic Board will assist the work of the four agency boards.” 7 Phase 2 of the Review, expected to run from November 2016 to April 2017, is being taken forward through nine inter-linked projects. This includes a project on regional partnerships the regional partnership project will explore how regional partnerships, by tapping into local assets and opportunities along with national strengths and experience, can help drive additional economic growth for Scotland. SG have been working closely with COSLA and local authorities in Ayrshire, as well as with the national agencies and other key stakeholders like SCDI in developing this project. A meeting is being scheduled with SG, COSLA and representatives of Scotland’s cities to reflect on experience and lessons from establishing regional partnerships to oversee implementation of city deals. This experience will be reflected in the conclusions of the phase 2 work on regional partnerships. Life Sciences. Life sciences is a key sector of the Scottish economy as highlighted in Scotland’s Economic Strategy. Life sciences is a tremendously important sector for Scotland. In 2014, the wider sector turnover was £4.3 billion, with GVA at £2 billion. It employs 37,200 people across 719 organisations 1. The life sciences in Aberdeen City and Shire, however, only accounts for 5.9% of the Scottish life sciences workforce (ref Aberdeen City & Shire Life Sciences Framework for Growth Biggar Economics) [REDACT], Director Health, Life and Chemical Sciences represents SE on the Life Sciences Sector Board. The Bio Therapeutics Innovation Hub - ONE’s vision is to create a successful and growing Life Sciences cluster in the Aberdeen area that focuses on the proactive creation, transformation, development and retention of high growth businesses. The vision will be achieved by providing a growth environment in the Bio-therapeutics Innovation Hub on the Foresterhill Health Campus. [REDACT] [REDACT] Scottish Government support for the North East. The North East has been disproportionately affected by the downturn in the oil and gas industry. Unemployment in Aberdeen City/Shire, previously outperforming the rest of Scotland, has been on an increasing trend since late 2014. 1http://www.gov.scot/Topics/Statistics/Browse/Business/Publications/GrowthSectors 8 The Energy Jobs Task Force, Transition Training Fund, Decommissioning Challenge Fund, business resilience support and other mechanisms support businesses and workers in the oil and gas sector. At the heart of the Aberdeen City deal is the £180m Oil & Gas Technology Centre, which is based in Aberdeen and was opened by Mr Wheelhouse on 8 February. New high growth entrepreneurial opportunities may arise from diversification from oil and gas - clean technologies, nuclear decommissioning, etc. – but equally from emerging business opportunities in the nascent sectors in the region such as digital and biotherapeutics. Our competitive business rates package targets support where it is most needed, with a recent additional allocation of around £9.8m to cap business rates increases for certain properties in Aberdeen and Aberdeenshire. Councils are able to apply further rates reductions, and we continue to work with Aberdeen City and Aberdeenshire Councils to inform this consideration. SG supports local authorities in their management and delivery of Business Gateway (BG), the first point of contact for all publicly funded advice to all businesses in Scotland. 9 ANNEX B: Opportunity North East Opportunity North East (ONE) was launched in December 2015, following extensive consultation with the region’s business community and discussion with the public sector. It is the private sector’s response to the challenge of maximizing the oil and gas opportunity for the region long term and rebalancing the region’s economy to achieve sustainable prosperity. ONE has a Leadership Board and four sector Boards, each with its own strategy, budget and objectives. Sector boards are: Oil and Gas Food, Drink and Agriculture Life Sciences Tourism The Oil and Gas sector board is managed by Sir Ian Wood (also the lead champion for Aberdeen region City Deal) Sir Ian is stepping down as Chair of ONE Oil and Gas Board following its next meeting. Trevor Garlick (formerly of BP and a member of the Energy Jobs Taskforce) will take on the role of Chair. Sir Ian also is also stepping down from Oil and Gas Technology Centre (OGTC) post March – Archie Kennedy (formerly of Nexen) is taking on that Chair role. ONE held an AGM/update in Aberdeen on Monday 27 March highlighting progress in key areas including Oil and Gas, Food and Drink, Tourism and Life Sciences. Strong messages about the need to both maximise Oil and Gas to the benefit of the local economy but also grow these other sectors, The investment of £1.4 million in projects in its first year has secured match funding from public sector and industry partners of £1.6 million, demonstrating the catalytic effect of ONE’s private sector led approach to economic development. ONE will invest up to £5 million in the next year to grow the food, drink and agriculture sector; build the region’s life sciences industry; maximise the oil and gas opportunity; and evolve business tourism to exploit new business and leisure opportunities First year highlights include: ONE’s industry sector boards have enthusiastically and effectively engaged with industry across the region and identified opportunities that will deliver business growth and secure high quality employment for the medium to long term.
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