The Courier & Advertiser (Fife Edition)
Economy secretary is ‘cautiously optimistic’ about BiFab contracts
SUPPORT: Fife firm has struggled after losing work to overseas companies
Scotland’s economy secretary has said he is “cautiously optimistic” about securing contracts for BiFab manufacturing, which he hopes will benefit the renewable energy industry.
Giving evidence to Holyrood’s economy committee, Derek Mackay told MSPs that waiting for companies “to do the right thing” has not been successful but the Scottish Government was working on incentives for the industry.
The Burntisland Fabrications (BiFab) yards in Methil and Burntisland, which produce large-scale equipment for the offshore oil and gas industry, have struggled following contracts lost to overseas firms.
The Scottish Government has “tried to be as supportive as possible” since the site was taken over by a Canadian firm last year, according to Mr Mackay, and was “trying to ensure a sustainable future for the company”.
Mr Mackay said: “I do remain cautiously optimistic that contracts will be secured for BiFab but of course we need to ensure that the benefits need to reach the wider supply chain of renewables in Scotland.”
He said he hoped to see “companies taking the lead and getting on with giving UK and Scottish companies the best possible chance to secure that onshore work for the offshore industry” to make Scottish fabrication and the manufacturing industries “as competitive as possible”.
“That’s why some of the direct interventions – for example, around the direct support to BiFab – is important.”
Mr Mackay also stressed he was proceeding cautiously with new devolved powers for offshore land to try to prevent potential lawsuits against the Scottish Government from conditions they may impose on firms receiving contracts or subsidies.
Asked by Green MSP Andy Wightman about what restrictions – such as including legally binding agreements with companies about emissions or supply chains – could be imposed, Mr Mackay said whatever the government decides will be “proportionate and within the law”.
“Because we have that competence now over Crown Estate, we do decide what is the level of leasing that we would think would be acceptable,” he added.