3. To ask the Scottish Government how its budget for 2024-25 will help to develop the offshore wind supply chain to ensure that Scotland benefits from the reported global expansion of wind energy. (S6O-02960)

The budget kick-starts our commitment of up to £500 million over five years to anchor Scotland’s offshore wind supply chain, with an investment of £67 million in the next financial year. Our strategic investment will stimulate and support crucial private investment in the Scottish supply chain to maximise the economic opportunities and benefits from Scotland’s offshore wind potential.

It is welcome that the Scottish Government is providing the support that is needed to stimulate and support the growth of the sector, which is particularly relevant to my constituency, Aberdeen South and North Kincardine. That said, the reality remains that real-term cuts to the Scottish Government’s capital investment budget, which have been imposed by the United Kingdom Government, risk undermining our ability to invest in our energy transition. Will the minister outline how the full capital borrowing powers of an independent Scotland could make such investment much more achievable? [

Interruption

.]

I hear groans from the Conservatives, because Audrey Nicoll is pointing out that it is absolutely obvious that, at just £450 million per year, or 0.2 of gross domestic product, our ability to borrow to invest is severely constrained compared with that of an independent country. At a time when the Organisation for Economic Co-operation and Development has said that the transition to green energy will require an additional investment of up to 1.5 per cent of GDP per year, that is just not enough.

The Scottish Government has outlined plans to set up a dedicated building a new Scotland fund to invest up to £20 billion during the first decade of an independent Scotland and lay the foundations for a green and fair net zero economy. Other nations across Europe are making significant investments in transitioning, and we should be able to do that, too.

We all welcome the focus on the offshore supply chain and the fantastic opportunities for our economy, but we need to get on and realise them. The First Minister made that commitment in October last year, but my understanding is that only £20 million has been allocated so far. Will the minister confirm how the funding will be distributed, what mechanism will be used and when we will see the money making a difference on the ground? For example, will she highlight what ports will benefit from the investment?

There are a number of issues in Sarah Boyack’s question. I note that £87 million has already been allocated, and I have mentioned the figures from the budget. Other work is also being done to support the supply chain.

The member mentioned infrastructure. Work is on-going on the strategic investment model; that has been taken forward by the Scottish offshore wind energy council, which I co-chair. That is attracting £9 billion of capital expenditure, which will be leveraged through private investment and the funds that I have outlined that will be delivered by the Scottish Government.

A significant amount of joint working is being done in the sector. It would not be appropriate for the Government to take a top-down approach and say what the industry should be doing. We are working with the industry. It knows what it needs to deliver on the ScotWind and innovation and targeted oil and gas—INTOG—leasing rounds, and we want to work with it in the room at all stages of the process.