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EUROPEAN AND EXTERNAL RELATIONS COMMITTEE Tuesday 16 December 2008 Session 3 £5.00 Parliamentary copyright. Scottish Parliamentary Corporate Body 2008. Applications for reproduction should be made in writing to the Licensing Division, Her Majesty‟s Stationery Office, St Clements House, 2-16 Colegate, Norwich NR3 1BQ Fax 01603 723000, which is administering the copyright on behalf of the Scottish Parliamentary Corporate Body. Produced and published in Scotland on behalf of the Scottish Parliamentary Corporate Body by RR Donnelley. CONTENTS Tuesday 16 December 2008 Col. DECISION ON TAKING BUSINESS IN PRIVATE .............................................................................................. 925 SCOTTISH GOVERNMENT’S CHINA PLAN ................................................................................................... 926 VISIT (PRAGUE)..................................................................................................................................... 949 EUROPE DAY 2009 ................................................................................................................................ 950 “BRUSSELS BULLETIN” .......................................................................................................................... 951 PILOT SUBSIDIARITY CHECK.................................................................................................................... 953 DECISION ON TAKING BUSINESS IN PRIVATE .............................................................................................. 956 EUROPEAN AND EXTERNAL RELATIONS COMMITTEE 20th Meeting 2008, Session 3 CONVENER *Irene Oldfather (Cunninghame South) (Lab) DEPU TY CONVENER *Alex Neil (Central Scotland) (SNP) COMMI TTEE MEMBERS Ted Broc klebank (Mid Scotland and Fife) (Con) *Keith Brow n (Ochil) (SNP) Patric ia Ferguson (Glasgow Maryhill) (Lab) *Charlie Gordon (Glasgow Cathcart) (Lab) *Jamie Hepburn (Central Scotland) (SNP) *Jim Hume (South of Scotland) (LD) COMMI TTEE SUBSTITU TES Jackson Carlaw (West of Scotland) (Con) Ken Macintosh (Eastw ood) (Lab) Gil Paterson (West of Scotland) (SNP) Iain Smith (North East Fife) (LD) *attended THE FOLLOWING GAVE EVIDENCE: Melanie Angus (VisitScotland) Frank Boyland (Scottish Development International) Peter Budd (Arup Scotland) Jane Gotts (Scottish Counc il for Development and Industry) Stephen Phillips (China-Britain Business Council) Peter Russell (Glasgow City Counc il) Dav id Smith (Scottish Development International) Dav id Valentine (Angus Council) Gillian Walsh (Glasgow City Council) CLERKS TO THE COMMI TTEE Lynn Tullis Simon Watkins ASSISTANT CLERKS Lew is McNaughton Lucy Scharbert LOC ATION Committee Room 2 925 16 DECEMBER 2008 926 Scottish Parliament Scottish Government’s China Plan European and External Relations Committee 10:33 Tuesday 16 December 2008 The Convener: Agenda item 2 is our second evidence session on the Scottish Government‟s China plan. Today‟s discussion will cover [THE CONVENER opened the meeting at 10:32] business, trade and tourism. Decision on Taking Business in I welcome our witnesses and thank them all very much for the substantial written evidence that they Private have provided. Before I ask them to introduce themselves briefly, I want to outline a few points The Convener (Irene Oldfather): Good about today‟s meeting. Our aim is to discuss the morning, colleagues. I welcome everyone to the th Scottish Government‟s China plan: the idea 20 meeting in 2008 of the European and External behind our having a round-table discussion is that Relations Committee. I have received apologies it will encourage people to interact with one from Ted Brocklebank and Patricia Ferguson. another and to comment on what others have Agenda item 1 is to decide whether to take in said. The witnesses should not simply think that private agenda item 8, under which we will we are questioning them, but can comment on consider the key themes arising from today‟s what others around the table are saying. It will be evidence session on the Scottish Government‟s helpful if people speak through me. I will note and China plan. Do members agree to that? list those who would like to speak. There is no need to worry about microphones, as our technical Members indicated agreement. staff will ensure that they come on automatically. I now invite our witnesses to introduce themselves. David Valentine (Angus Council): I am the head of economic development at Angus Council. Peter Budd (Arup Scotland): I am the chairman of Arup Scotland. Stephen Phillips (China-Britain Busine ss Council): I am from the China-Britain Business Council. Gillian Walsh (Glasgow City Council): I am an international officer at Glasgow City Council. Peter Russell (Glasgow City Council): I am an adviser to the Lord Provost at Glasgow City Council. My job remit includes responsibility for the council‟s international strategy. Jane Gotts (Scottish Council for Development and Industry): I am an international trade manager at the Scottish Council for Development and Industry. Frank Boyland (Scottish Development International): I am the Asia director for Scottish Development International. David Smith (Scottish Development International): I am the operations director for Scottish Development International. Melanie Angus (VisitScotland): I am the marketing manager for VisitScotland and I head up the emerging markets team. 927 16 DECEMBER 2008 928 The Convener: Thank you. There are a few Jane Gotts: I concur with Stephen Phillips. themes that we want to discuss. The witnesses There is a need to engage businesses, in are all aware of the Scottish Government‟s plan for particular the small and medium -sized enterprises engagement with China. Given your experience of for which China is a challenging and daunting dealing with China, has the Government set the market. What specific engagement with smaller right objectives and targets in the plan? businesses will there be, to ensure that the Chinese market is open to them? Frank Boyland: The refreshed China plan reflects more broadly what SDI wants to do in Peter Budd: I am sorry, but I will sing from the China, and is consistent with the objectives of our same hymn sheet. The plan lays good operations throughout the world. Our job is to help foundations, but the devil is in the detail and we Scottish businesses to internationalise and to help must consider how we move on from here. overseas and international companies to come to First, strong support from Government is a key Scotland and create employment here. We also factor in developing business with the Chinese want to build broader business and cultural links market. Secondly, China is a huge market, so we and to play our part for team Scotland. We are must focus on particular geographical areas and pretty comfortable with the refreshed plan. It particular areas of interest. There is no point in appears to us that many of the metrics around the taking out the shotgun in China—it will not work. China plan are pretty much on course to be We need to home in on particular areas, and to achieved—I could quote many statistics in that come up with precise plans and development context. strategies. We will need Government help in Melanie Angus: VisitScotland is also promoting our approach: Government support is a comfortable with the refreshed China plan—in hugely important aspect of doing business in particular with the tourism target of Scotland China. achieving a percentage of United Kingdom traffic. The Convener: I noticed that several Such a target makes sense, given that there is no submissions mentioned resources, which we direct air service to Scotland from China. We work might discuss later. closely with our strategic partner, VisitBritain, which is on-territory. In previous evidence on the plan, the feeling emerged that some of the education and research David Valentine: As I said in my written objectives do not have sufficient connectivity and submission, the objectives in the plan are are more stand-alone. Does that apply to the appropriate and I fully support them. It was objectives on your interests? Are more important that the new Administration in Scotland connections needed between objectives? endorse the plan, so it is significant that the Administration did that and aligned the plan with Peter Budd talked about a geographic emphasis its stated objectives to achieve a wealthier and or direction. Does each of your organisations fairer Scotland, to achieve sustainable growth and target a region or area in China? Some of you so on. mentioned that in your submissions—which we have all read—but it would help to have it on the The Convener: There has been a lot of record and to hear a little about why you have applause for the plan so far. operated in that way. Stephen Phillips: The China-Britain Business Would anyone like to comment on those points? Council very much supports the overriding objectives and targets in the plan. As someone David Smith: I am happy to comment. Our who is in the shoes of business, I suggest that it approach is very much driven by “The would be helpful if the targets that relate to Government Economic Strategy” and by the need business were a little more specific and set out for focus, which has been mentioned. Scotland exactly what will be done to help individual has particular strengths to offer and to build on in businesses, because the targets are rather at the business engagement with the Chinese macro level. However, the thrust of the plan is marketplace. I invite Frank