EU/S3/10/16/A

EUROPEAN AND EXTERNAL RELATIONS COMMITTEE

AGENDA

16th Meeting, 2010 (Session 3)

Tuesday 7 December 2010

The Committee will meet at 10.30 am in Committee Room 1.

1. Decision on taking business in private: The Committee will decide whether to take item 5 in private.

2. Scrutiny of Budget: The Committee will take evidence from—

Fiona Hyslop MSP, Minister for Culture and External Affairs, Scottish Government.

3. International Engagement inquiry: The Committee will take evidence from—

Fiona Hyslop MSP, Minister for Culture and External Affairs, Scottish Government.

4. UK European Union Bill: The Committee will consider a paper.

5. Scrutiny of the Scottish Government Budget: The Committee will consider the keys points raised during the earlier evidence session.

6. International Engagement inquiry (in private): The Committee will consider the key points raised during the earlier evidence session.

Lynn Tullis / Simon Watkins Clerks to the European and External Relations Committee Room TG.01 The Edinburgh Tel: 0131 348 5234 Email: [email protected]; [email protected] EU/S3/10/16/A

The papers for this meeting are as follows—

Agenda item 2

Paper from the Clerk EU/S3/10/16/1

Agenda item 3

Paper from the Clerk EU/S3/10/16/2

Agenda item 4

Paper from the Clerk EU/S3/10/16/3

EU/S3/10/16/1

European and External Relations Committee

16th Meeting, 2010 (Session 3), Tuesday, 7 December 2010

Scottish Government Draft Budget 2011-12

Background

1. The Committee has agreed to scrutinise the Europe and External Affairs portfolio of the Scottish Government’s Draft Budget 2011-12. At its last meeting, the Committee heard evidence from Scottish stakeholders on the key budget lines in the portfolio, international development and the promotion of .

2. Following evidence from the Minister, the Committee will consider a draft report on 14 December. This report, along with other committees’ reports, will be incorporated into the Finance Committee report on the Draft Budget. It is expected that the Finance Committee will report to the Parliament in mid- January. Subsequently, in late January/February, the Budget Bill will be considered in the Chamber.

3. Neither this Committee nor any of its predecessors has undertaken scrutiny of the Scottish Government budget before. On this basis, the Committee’s approach may be used as a model for future scrutiny of the Europe and External Affairs portfolio.

Draft Budget 2011-12

Introduction 4. The Scottish Government’s spending review and Draft Budget 2011-12 responds to the UK Government’s Comprehensive Spending Review (CSR) which was published in October. As a result of the UK Parliamentary election and the subsequent delayed publication of the UK spending review and the Scottish Government budget, committees have a shorter period than normal in which to scrutinise the Draft Budget 2011-12.

Level of detail 5. In response to the Committee’s request for a detailed breakdown of spending in the Europe and External Affairs budget line, the Minister for Culture and External Affairs helpfully provided further data. This is incorporated in the SPICe briefing (see below), and the Minister’s letter is attached at Annexe A.

SPICe briefing 6. A SPICe briefing, which is included at Annexe B, provides an overview of the Europe and External Affairs portfolio of the Draft Budget 2011-12. The SPICe briefing also includes information on historic trends of expenditure in the portfolio.

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EU/S3/10/16/1

Other EU-related elements in the Draft Budget 2011-12 7. The key budget line of interest to the Committee is the Europe and External Affairs spend. However, the Draft Budget also makes reference to other EU-related expenditure, namely the European Regional Development and European Social Fund programmes, and spending that is supported by EU funding such as the Common Agricultural Policy and EU fisheries grants.

8. As these elements of the Draft Budget are funded primarily by EU resources the Scottish Government has little or no discretion in the allocation of this money. In addition, the expenditure is included in the budget lines of Finance and Sustainable Growth and Rural Affairs and the Environment and, on this basis, scrutiny of these elements of the budget falls within the remit of other committees.

Key issues for consideration

9. In scrutinising the Europe and External Affairs portfolio, the Committee may wish to consider any elements it regards as priorities and, therefore, where spending should be supported; and whether it wishes to make any alternative spending proposals.

10. In this context, the Committee will examine—

• any changes made to the Europe and External Affairs budget from 2010-11;

• whether any decisions to maintain or increase expenditure are considered to be sustainable;

• the future spending trends within the budget line;

• any assumptions that are being made about efficiency savings within the budget line; and

• the presentation of the budget information provided by the Scottish Government.

Committee Clerk December 2010

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Annexe A

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Annexe A Level 4 2010-11 2011-12 Short explanation of ‘what the money buys’ heading (latest) (planned) £m £m International 0.440 0.43 This budget supports engagement and collaboration with priority countries (including India and China) in areas such as; Strategy trade and investment; education and science; and tourism and culture to improve Scotland’s image abroad and directly contribute to Scotland’s economic growth. North 0.410 0.455 The North America Division programme budget supports the Scottish Government’s activities in the USA and Canada, American which are aligned with the Government's Economic Strategy and its International Framework’s. Through delivery of its USA Strategy and forthcoming Canada Engagement Plans, North America Division Programme activity is designed to: bring sharper economic growth focus to the promotion of Scotland in the USA and Canada by highlighting the strength and competitiveness of Scotland's key sectors, including focussing on areas of Scottish excellence that are relevant to the USA and Canada and offer potential for mutual benefit; and manage Scotland's reputation as a distinctive global identity by promoting Scotland in North America as a modern, dynamic and responsible nation. Fresh Talent 1.331 1.055 This budget funds the free Relocation Advisory Services which provides immigration advice to potential migrants and information on employing migrants to business in Scotland. Additionally the budget funds the roll out of the COSLA Migration Toolkit which allows local authorities to better plan for migration in their area and aid better integration into communities. The remaining budget funds activity to promote Scotland as a place to work, live, learn and remain – both in Scotland and internationally. International 9.0 9.0 The International Development budget enables the Scottish Government to enhance Scotland's place in the world as a Development responsible nation as outlined in the Scottish Government's International Framework. It enhances the Scottish Government’s contribution to the global fight against poverty through activity which is clearly designed to support the achievement of the Millennium Development Goals and economic growth in developing countries. Scotland's 3.587 3.330 The International Image budget line delivers a programme of work to promote Scotland internationally in support of the International International Framework and wider ‘Team Scotland’ objectives. The programme of work is designed to build recognition of Image Scotland as an attractive place to visit, study, live, work, do business and invest. It contributes to national outcomes 1 and 13, and to the Government’s purpose of sustainable economic growth. The programme of activity includes the management of an overarching Scotland ‘brand’, which reflects what we know about Scotland’s reputation from the findings of the Nation Brands Index, and which directly underpins work by the Scottish Government and key partners to drive greater internationalisation, and to sustain and nurture Scotland’s reputation as a progressive and globally influential nation. At domestic level, activity around St Andrew’s Day, Winter Festival and the ‘Welcome to Scotland’ campaign which runs at points of entry to Scotland is contributing to progress on national indicator 45, and provides enhanced visibility and support for core campaigns such as ‘One Scotland’. European 0.14 0.13 This budget supports the EU related work of the Scottish Government's Offices in Brussels and Edinburgh towards the Strategy objectives of the International Framework and the European Action Plan. The largest element of expenditure is in Brussels (around £90,000) to deliver the four main goals of the Scottish Government EU Office policy and cultural events programme: promoting the Government’s strategic objectives; enhancing our profile and reputation in the EU; targeting fresh and relevant audiences; and bringing influence to bear on EU policy making and policy makers. Edinburgh expenditure includes funding to support bilateral engagement e.g. with consular corps. Major Events 1.823 1.7 To deliver the Government’s ambitions for promoting Scotland as a world class events destination and ensuring that events secure maximum economic impact and international profile for Scotland. This includes staging a second Year of Homecoming starting in 2014 the year in which the Commonwealth Games, Ryder Cup and Edinburgh Festivals will ensure Scotland is centre stage in world terms.

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Annexe B

European and External Relations Committee

Draft Scottish Budget 2011-12 Europe and External Affairs

INTRODUCTION

The Scottish Government published its Scottish Budget: Draft Budget 2011-12 on 17 November 2010. The SPICe Briefing Draft Budget 2011-12 discusses broad trends in the budget and how it affects portfolio expenditure.

This briefing outlines the Scottish Government’s objectives within the Europe and External Affairs portfolio and examines the more detailed “level 4” budget lines1 for Europe and External Affairs which is situated within the Office of the First Minister.

SCOTTISH GOVERNMENT POLICY IN THE EUROPE AND EXTERNAL AFFAIRS PORTFOLIO

The Scottish Government’s policy in the Europe and External Affairs portfolio is outlined in the International Framework which was published in April 2008. According to the Scottish Government; “the Framework sets out the Government's objectives for its international work and identifies how activities across the public sector support the Government Economic Strategy.”2

According to the International Framework,

“The Scottish Government's international engagement is driven by the Government Economic Strategy and the need to place Scotland as a responsible nation and partner on the world stage. This Framework will inform the work not only of the Scottish Government but of our key partners in the public sector. Our international activities will contribute to the Government's purpose of increasing sustainable economic growth by:

• Creating the conditions for talented people to live, learn, visit, work and remain in Scotland - so that Scottish population growth matches EU average;

• Bringing a sharp economic growth focus to the promotion of Scotland abroad - so that the Scottish GDP growth rate matches the UK's by 2011; and

1 Level 4 figures are simply a breakdown of the budget figures beyond the "level 3" figures published in the draft budget. 2 http://www.scotland.gov.uk/Topics/Government/International-Relations 5

Annexe B

• Managing Scotland's reputation as a distinctive global identity, an independent minded and responsible nation at home and abroad and confident of its place in the world.”3

The International Framework is supported by a number of strategies. These are:

• Action Plan on European Engagement

• International Development Policy

• China Plan

• USA Plan

• India Plan

• Pakistan Plan

3 http://www.scotland.gov.uk/Publications/2008/04/23150847/1 6

Annexe B THE EUROPE AND EXTERNAL AFFAIRS BUDGET – HISTORICAL TRENDS

Figure 1 below provides details of how the budget for Europe and External Affairs has changed since 2005-06.

As figure 1 shows, the budget for Europe and External Affairs has risen markedly since 2005-06. This is largely as a result of increases to international development spending which is discussed later in the briefing.

THE 2011-12 DRAFT BUDGET FOR EUROPE AND EXTERNAL AFFAIRS

Table 1 - Europe and External Affairs “Level 3” figures

2011- 2010-11 12 2011-12 2011-12 2011-12 2011-12 2011-12 Budget Draft Draft Draft Draft Draft Draft Budget

Budget Budget Budget Budget Budget Cash Cash Real Cash Real £m £m Real £m Major Events and 1.8 1.7 1.7* -0.1 -0.1 -5.6% -7.3% Themed Years International 14.9 14.4 14.1 Relations -0.5 -0.8 -3.4% -5.2% Total 16.7 16.1 15.8 -0.6 -0.9 -3.6% -5.4% *The major events and themed years budget shows a real terms cut of around £130,000 but due to rounding this isn’t reflected in the tables.

The Draft Budget 2011-12 sets out the figures for the two “level 3” budget lines for Europe and External Affairs (see table 1 above). The 2011-12 7

Annexe B budget shows a small cash terms decrease compared to 2010-11 with the budget falling from £16.7 million to £16.1 million (see Table 1). In real terms this is a percentage fall of 5.4% or a cash fall of 3.6%.

The Major Events and Themed Years budget line shows a small cash fall of £0.1m but given the relatively small overall budget this equates to a percentage cash reduction of 5.6% or a real terms cash reduction of 7.3%

The International Relations budget line shows a cash reduction of £0.5m. This represents a percentage cash reduction of 3.4% and a real terms cash reduction of 5.4%. The International Relations budget line has been relatively protected as a result of the Government’s decision to retain international development funding at £9m.

The overall percentage cash reduction in the Europe and External Affairs budget lines is 3.6%. This compares favourably with the overall percentage cash reduction across the Office of the First Minister of 8.8%

A change between this year and last year’s draft Europe and External Affairs budget line is that in the 2010-11 draft budget it included £0.3m for royal and ceremonial activities. In the 2011-12 draft budget there is no line devoted to royal and ceremonial activities.

What the money buys

According to the Scottish Government, the Europe and External Affairs budget:

“supports the promotion of Scotland, and Scotland's interests and identity both at home and abroad. It contributes towards the promotion of Scotland as a responsible nation in the world, including Scotland's international development work, and to supporting the Government's purpose through the advancement of Scotland's place in Europe and the wider world. The budget assists in maximising Scotland's influence within the European Union, and builds on mutually beneficial links with other countries including the US and China. The budget supports the attraction of fresh talent to live, study and work in Scotland.”

The Government states that in 2011-12 the budget will:

• “support the Homecoming Legacy work and funding for the Active Scotland and Creative Scotland Focus Themed Years; • provide £0.25 million to support the Royal Edinburgh Military Tattoo grandstand project; and • maintain the International Development Fund at £9 million, significantly more than double the 2007-08 level, with the unique relationship with Malawi remaining a key priority.”

A CLOSER LOOK AT THE 2011-12 BUDGET

The following section looks in more detail at the Europe and External Affairs budget, including the “level 4” figures provided by the Scottish Government 8

Annexe B Major Events and Themed Years

The draft budget for 2011-12 allocates £1.7m for major events and themed years. This reflects a cash reduction of £0.1m compared to the 2010-11 budget. Major events and themed years has only appeared as a budget line in the Level 3 data since 2008-09. Table 2 outlines the budget allocated for each year since 2008-09.

Table 2: Major Events and Themed Years

Financial Year Budget £m

2008-09 3.2

2009-10 0.6*

2010-11 1.8

2011-12 1.7

*The draft budget for 2009-10 provided a total of £3.2m for major events and themed years. This was then reduced to £0.6m with £2.5m transferred from major events to tourism for Homecoming.

How the money will be spent

According to the draft budget the Major Events and Themed Years Budget will:

“ support the Homecoming Legacy work and in 2011-12 includes funding for the Active Scotland and Creative Scotland Focus Themed Years. The budget will also support the Royal Edinburgh Military Tattoo grandstand project in 2011-12 as well as securing major events which showcase Scotland on a world stage. Our support for the Royal Edinburgh Military Tattoo grandstand project will help to ensure the project delivers its aims of securing the future of the Tattoo; speeding up assembly times and providing opportunities for the staging of additional signature events.”

The aim of the themed years is to build on the success of the year of homecoming which the Scottish Government says generated £53.7 million in additional tourism revenue for Scotland and provided an estimated £154 million worth of positive global media coverage. However, giving evidence to the Scottish Parliament’s Economy, Energy and Tourism Committee, Dr Geoff Riddington, the director of Grid Economics (Scotland) Ltd who carried out an independent evaluation of the evaluation of Homecoming stated:

“I have no argument with EKOS on any of those issues. EKOS has an agreed methodology, whereby it does X, Y and Z and then uses the Scottish tourism multipliers. It takes the total expenditure and multiplies it by the multipliers to get "the output", then it says that the output to cost ratio is X. The problem, basically, is that the figures are wrong. I know that EKOS did not realise that they were wrong. That is a consistent feature; the Scottish tourism multipliers have been used for years—they 9

Annexe B were first published 18 years ago, since when things have changed quite dramatically.”

Previous Themed Years

Prior to Homecoming, the most high profile themed year was Scotland’s Year of Highland Culture 2007. This was a tri-partite partnership project funded principally by The Scottish Government, Highlands and Islands Enterprise (HIE) and The Highland Council to deliver a year-long set of events and projects aimed at promoting and celebrating the Highlands and its culture.

A total of £6.5million was invested directly in the Highland 2007 organisation; £3.1million directly into Highland 2007-supported projects (not through the Highland 2007 office); and £3.6million of in-kind support including £1million from The Highland Council to the administration of Highland 2007. Of this just under £600,000 was financed by the Scottish Government. £31.6million was invested in related capital projects, with just over £11.5 million of this coming from the Scottish Government.

According to the evaluation carried out by the Centre for Cultural Policy Research at the University of Glasgow4, in terms of economic impact of the Year of Highland Culture There were two broad categories of impact. First, the employment and income generated by project and event organisers. Adjusting for so-called ‘leakage’ of expenditure outside the region, and allowing for some project and event activity which would have happened in any case without Highland 2007, the net employment impact was 326 FTEs and an income of £6.6million. These figures include multiplier impacts throughout the Highland and Islands, which allow for further rounds of expenditure via suppliers and spending of wages. A further 213 FTEs (net) were supported on a voluntary basis.

The second main category of impact relates to visitor expenditure. This refers to additional day visits and overnight visits to the Highlands and Islands to attend or participate in Highland 2007 events and projects. The expenditure on accommodation, tickets, food and drink etc. associated with these additional visitors to the Highlands and Islands was an estimated £4.5million. Adding multiplier impacts brings a total visitor expenditure impact of £6.1million to the economy of the Highlands and Islands, which would sustain around 133 FTE jobs and generate income of around £2.1million.

Royal Edinburgh Military Tattoo grandstand project

The Major Events and Themed Years budget also includes £250,000 to support the Royal Edinburgh Military Tattoo grandstand project. The aim of this spending is to ensure the project delivers its aims of securing the future of the Tattoo; speeding up assembly times and providing opportunities for the staging of additional signature events

4 http://www.christinehamiltonconsulting.com/documents/CCPR_Highland_2007_Evaluation_R eport_Oct_2008.pdf 10

Annexe B International relations

The draft budget for 2011-12 allocates £14.4m for International Relations. This reflects a cash reduction of £0.5m compared to the 2010-11 budget. Table 3 outlines the budget allocated for each year since 2008-09.

Table 3: International Relations

Financial Year Budget £m

2008-09 12.0

2009-10 12.0

2010-11 14.9

2011-12 14.4

In a letter to the European and External Relations Committee, Fiona Hyslop, the Minister responsible for Europe and External Affairs outlined how the budget for international relations would be spent. The figures for each Level 4 heading along with a comparison with the 2010-11 spend are provided in the table below.

Table 4: Level 4 Spend for International Relations

Level 4 Heading 2010-11 (£m) 2011-12 (£m)

International Strategy 0.440 0.430

North American Strategy 0.410 0.455

Fresh Talent 1.331 1.055

International Development 9.0 9.0

Scotland’s International Image 3.587 3.330

European Strategy 0.14 0.13

How the money will be spent

International Strategy The International Strategy budget is used to support engagement and collaboration with priority countries (including India and China) in areas such as; trade and investment; education and science; and tourism and culture to improve Scotland’s image abroad and directly contribute to Scotland’s economic growth. As a result the budget will contribute towards the Scottish Government’s work as outlined in its China, India and Pakistan plans.

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Annexe B The Scottish Government figures show a slight cash terms decrease of £10,000 compared with 2010-11.

North American Strategy The North America Division programme budget supports the Scottish Government’s activities in the USA and Canada. Specifically it will support the work of the Government outlined in its USA plan and support the work of the Government’s Scottish Affairs Office based in the embassy in Washington.

Uniquely in the international relations budget line, funding for the North American Strategy will actually rise in 2011-12 compared with 2010-11 – by £45,000, This may in part be to fund some of the work outlined in a Canada plan which the Head of the Scottish Affairs Office in Washington said would be published imminently5.

Fresh Talent This budget funds the free Relocation Advisory Services which provides immigration advice to potential migrants and information on employing migrants to business in Scotland. Additionally the budget funds the roll out of the COSLA Migration Toolkit which allows local authorities to better plan for migration in their area and aid better integration into communities. The remaining budget funds activity to promote Scotland as a place to work, live, learn and remain – both in Scotland and internationally.

It is not clear from the budget how the budget is split between these areas.

International Development The International Development budget enables the Scottish Government to enhance Scotland's place in the world as a responsible nation as outlined in the Scottish Government's International Framework. It enhances the Scottish Government’s contribution to the global fight against poverty through activity which is clearly designed to support the achievement of the Millennium Development Goals and economic growth in developing countries.

The International Development budget rose from £3 million in 2007-08 to its current level of £9 million in 2010-11. In the draft budget for 2011-12 the budget for international development remains at £9 million. Whilst this indicates a cash terms freeze on the budget it actually means a real terms cut of around £170,000.

The budget is targeted at Malawi, Sub-Saharan Africa and South Asia. In the 2010-11 budget the Government ring fenced £3 million of the international development budget for Malawi. The 2011-12 budget does not specifically ring fence any of the budget for a specific country or region though the draft budget does state that Malawi will remain a key priority.

According to the UK Government Department for International Development, in 2008, the United Kingdom Government spent £6.35 billion on overseas

5 Official Report European and External Relations Committee 16 November 2010 Col 1741 12

Annexe B development assistance. This rose to £7.35 billion in 20096. In the recent Comprehensive Spending Review, the UK Government announced that international development spending will rise to £11.5 billion over the next four years meaning that by 2013 the United Kingdom will reach the UN target of spending 0.7% of national income on international development7.

This announcement by the United Kingdom Government led to some debate about whether given the current economic circumstances the United Kingdom should continue to increase international development spending. Quoted in the Daily Mail, Sam Bowman, head of research at the Adam Smith Institute, said the increase in aid spending beggared belief at a time when police, universities and the armed forces were being cut back.

He said: ‘Overseas aid is a waste of taxpayers’ money that props up dictatorships in sub-Saharan Africa and funds fast-growing countries like India, whose economy has grown by nearly 8.8 per cent in 2010 and which has its own space and nuclear weapons programmes.”8

In contrast, most charities expressed support for the Government’s commitment to meet the 0.7% UN target.

Scotland’s International Image The International Image budget line delivers a programme of work to promote Scotland internationally in support of the International Framework and wider ‘Team Scotland’ objectives. The programme of work is designed to build recognition of Scotland as an attractive place to visit, study, live, work, do business and invest. It contributes to national outcomes 1 and 13, and to the Government’s purpose of sustainable economic growth. The aim of national outcome 1 is that “we live in a Scotland that is the most attractive place for doing business in Europe” whilst outcome 13 states “we take pride in a strong, fair and inclusive national identity”9.

According to the Scottish Government “the programme of activity includes the management of an overarching Scotland ‘brand’, which reflects what we know about Scotland’s reputation from the findings of the Nation Brands Index, and which directly underpins work by the Scottish Government and key partners to drive greater internationalisation, and to sustain and nurture Scotland’s reputation as a progressive and globally influential nation. At domestic level, activity around St Andrew’s Day, Winter Festival and the ‘Welcome to Scotland’ campaign which runs at points of entry to Scotland is contributing to progress on national indicator 45, and provides enhanced visibility and support for core campaigns such as ‘One Scotland’”

The international image budget shows a decrease of £257,000 compared with the 2010-11 figure.

6 http://www.dfid.gov.uk/Documents/publications1/sid2010/SID-2010-Statistical-Release.pdf 7 http://www.hm-treasury.gov.uk/spend_sr2010_speech.htm 8 http://www.dailymail.co.uk/news/article-1322361/SPENDING-REVIEW-2010-Foreign-aid- increase-37.html 9 http://www.scotland.gov.uk/About/scotPerforms/outcomes 13

Annexe B European Strategy This budget supports the EU related work of the Scottish Government's Offices in Brussels and Edinburgh towards the objectives of the International Framework and the European Action Plan. The largest element of expenditure is in Brussels (around £90,000) to deliver the four main goals of the Scottish Government EU Office policy and cultural events programme: promoting the Government’s strategic objectives; enhancing our profile and reputation in the EU; targeting fresh and relevant audiences; and bringing influence to bear on EU policy making and policy makers. Edinburgh expenditure includes funding to support bilateral engagement e.g. with consular corps.

Iain McIver

SPICe Research

02 December 2010

Note: Committee briefing papers are provided by SPICe for the use of Scottish Parliament committees and clerking staff. They provide focused information or respond to specific questions or areas of interest to committees and are not intended to offer comprehensive coverage of a subject area.

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European and External Relations Committee

16th Meeting, 2010 (Session 3), Tuesday, 7 December 2010

International Engagement Inquiry – evidence from the Minister for Culture and External Affairs

1. The Committee will be taking evidence from the Minister for Culture and External Affairs on its international engagement inquiry. The Minister has provided a written submission which is attached at Annexe B.

2. It is proposed to divide questioning of the Minister into five sections, covering the different aspects of the Inquiry as set out below.

A. The International Framework and General

3. The evidence session with the Minister presents an opportunity to question her on the Scottish Government’s International Framework, the basis for all international activity which is included as Annexe A, and on general aspects of her approach.

B. Budget – Financial Scrutiny Unit Research

4. The Committee commissioned two studies from the Parliament’s Financial Scrutiny Unit (FSU) on the costs and benefits of the Scottish Government’s activities outwith the UK. The studies outlined the costs of all Scottish Government supported activities, including the International Development Fund and flagged up some significant increases in recent years.

5. Some of these budget issues may be covered in the preceding session with the Minister on the Draft Budget 2011-12, but those that have not can be addressed here. The FSU reports can be accessed below—

• Financial Scrutiny Unit report on International Expenditure, 10 June 2010

• Financial Scrutiny Unit report on the Impact of International Expenditure, 6 October 2010

C. Written Evidence from Stakeholders

6. This session also provides an opportunity to question the Minister on issues that were raised in the written evidence submitted to the inquiry. A number of witnesses were positive in their assessment of progress since 2005. Nevertheless, many specific issues were raised by respondents. The written evidence together with the SPICe summary can be accessed below—

• Written evidence received to the inquiry

• SPICe summary of written evidence

D. Comparative Analysis of Other Regions’/Nations’ External Activity

7. The Committee commissioned research from Professor Michael Keating of Aberdeen University, which examined the approach of other, primarily European, regions and nations to external relations activities.

8. Professor Keating’s research raised a number of issues in terms of the way that Scotland’s comparators tackle their external activities and whether there are lessons for the Scottish Government in this. Professor Keating’s report can be accessed below—

• Professor Keating report on International Engagement of Sub-State Governments, November 2010

E. North America Case Study

9. On 16 November the Committee took evidence from the Heads of the two main Scottish Government operations in North America: Robin Naysmith, the Scottish Government Counsellor in Washington DC; and Danny Cusick, the Head of Scottish Development International in the Americas.

10. The session raised issues about the role and structure of Government offices abroad as well as the measurement of their achievements, including Scotland Week. The Official Report of the evidence session can be accessed below—

• Official Report, 16 November 2010, Cols 1738-1771

Brussels Visit

11. The Committee has also arranged a visit to Brussels by two Members (Frank McAveety MSP and Bill Wilson MSP) to examine the Scottish Government’s Brussels office and to talk to some of the regions/nations identified by Professor Keating’s study. However, the visit was delayed for a number of reasons and is only now taking place. Any questions that flow from this visit will therefore be relayed to the Minister in a letter following the report- back by the Members at Committee on 14 December.

Committee Clerk December 2010 EU/S3/10/16/3

European and External Relations Committee

16th Meeting, 2010 (Session 3), Tuesday, 7 December 2010

UK European Union Bill

1. At its meeting on 30 November, the Committee Convener raised the issue of the (UK) European Union Bill. The European Union Bill was presented to the United Kingdom Parliament on 11 November and is expected to have its second reading on 7 December. The Bill’s principal purpose is to set out the circumstances in which further transfers of power to the European Union will require a referendum, although it also covers the additional MEP seat and some other issues.

2. The House of Commons European Scrutiny Committee is undertaking a quick inquiry into aspects of the Bill.

3. The European Union Bill covers reserved issues and it is not believed that any Legislative Consent Memorandum will be required to be considered by the Scottish Parliament.

4. Nevertheless, the Bill may have some implications at a devolved level. For instance, if further powers were sought by the European Union they might relate to currently devolved powers as well as reserved ones. In this instance, the implications for Scotland or other devolved legislatures might be different from those for England. In this context the devolved situation would need to be taken into account, both in consideration of the requirement for a referendum and in material produced around it, for instance.

5. There is, therefore, a case to suggest that this issue should be flagged up to the United Kingdom Parliament during the course of the Bill to ensure that it is taken into account. The European Scrutiny Committee inquiry would appear to create an opportunity to do this. The Scrutiny Committee has requested evidence on the part of the Bill relating to referendum provisions to be with it by Friday 10 December. The European and External Relations Committee will, therefore, need to agree at this meeting if it wishes to make a timely submission.

Recommendation

6. The Committee is invited to agree to make a submission to the European Scrutiny Committee’s inquiry into the European Union Bill drawing its attention to the implications that the Bill might have for devolved matters and requesting that this issue be taken into account in its consideration of the Bill.

Committee Clerk December 2010

1