I welcome the committee’s work to identify and understand some of the challenges that face the freight transport industry in Scotland.
Since 2007, the Scottish Government’s purpose has been to create a more successful country with opportunities for all Scotland to flourish through increasing sustainable economic growth. Our economic strategy identifies the need for leadership of change and partnership working and focuses on our four priorities of innovation, inclusive growth, investment and internationalisation.
Scotland’s transport system is a key enabling factor in helping us to achieve our purpose and our ambitions for economic growth. We need infrastructure that connects people to jobs, education, services and recreation. Of course, we also need infrastructure that enables the movement of goods. The Scottish Government’s approach to investing in Scotland’s transport infrastructure aims to provide that by supporting developments that are focused on improving journey times and connectivity, enhancing Scotland’s competitiveness, improving accessibility and integration, and minimising the impact of transport on the environment.
Through Transport Scotland, we manage and maintain the 2,000-mile trunk road and motorway network, which connects Scotland’s major cities, towns, airports and ports. We plan and deliver rail policy strategy and investment, advise on rail investment decisions and provide the specification of railway outputs that we wish to buy. Development of rail freight terminals and associated sidings is a matter for the commercial freight sector. We are responsible for legislation, policy and guidance relating to ferry services, ports, harbours and canals in Scotland. Shipping is a reserved matter, as is road freight regulation.
I understand that road freight will remain the predominant mode for the movement of goods in Scotland, for reasons of volume and geography. Nevertheless, I also recognise the adverse impact of freight movements on the environment. Therefore, we encourage modal shift from road to less environmentally damaging modes, where feasible, through our mode shift grant schemes, which make a financial contribution to private sector projects. Ultimately, however, decisions on the means of transport of goods are a matter for the commercial sector.
The strategic transport projects review provides the evidence base for the infrastructure investment plan. Since 2007, we have invested more than £6 billion in our trunk roads, and we have a £3.5 billion rail capital investment programme for the next five years. The STPR identified facilitating freight routes as one of the primary functions of the national strategic transport network, and the projects that we are taking forward will improve the movement of goods.
Roads projects such as the Queensferry crossing, the Aberdeen western peripheral route and the dualling of the A9 and the A96 have all been welcomed by stakeholders from the freight sector.
Rail projects are planned to improve the Aberdeen to Inverness line and the Highland main line. In addition, we have made available £30 million for the Scottish strategic rail freight investment fund to enable improvement initiatives, encourage growth and productivity in rail freight, and reduce emissions and road congestion.
That demonstrated commitment to investing in our transport infrastructure will help us to achieve our vision for Scotland as a place where the movement of freight, throughout the supply chain, is efficient and sustainable, allowing Scotland’s businesses to compete and grow in a global economy.
Many of the freight challenges identified by the inquiry cannot be addressed by Government investment in infrastructure alone. We have to recognise the commercial nature of the freight industry and the competition both within and across modes. We have to identify approaches that achieve public policy aims but are also sustainable from a business perspective. We know that that can be achieved only through close partnership working between the public and private sectors.
The Scottish Government has a well-established vehicle in place to help us to do that. The Scottish freight and logistics advisory group—ScotFLAG—which is a stakeholder group that we set up in 2009, ensures on-going engagement and a collaborative approach between the Scottish Government, the wider public sector and the freight industry. ScotFLAG’s remit is to advise on and monitor delivery of freight policy in Scotland, consider the impact of Government policies on freight movements, and prioritise and co-ordinate action taken by the industry and other stakeholders in response to Government policies.
Through our on-going engagement, we know that our stakeholders continue both to share our vision and to support our approach to freight policy in Scotland. Once I receive the committee’s recommendations, I will give them careful consideration. ScotFLAG will then provide a useful vehicle for discussion with stakeholders on a possible work programme.