Scotland could earn £2 billion a year exporting electricity and become a world leader in new-energy technology, a leading think tank forecasts today.

 

But the country will realise its full potential only if energy policy is fully devolved from Westminster to Holyrood.

 

With its natural resources, academic research talent and the energy companies already based here, Scotland has the potential to become a world-leader in new energy generation technologies, Reform Scotland says.

 

This would be a realistic possibility if the Scottish Government’s ambition of reaching 100 per cent renewable target by 2020 is met, Reform Scotland says in a report Powering Scotland published today.

Reform Scotland also proposes that all of Scotland’s nuclear power stations be phased out at the end of their natural lives because, unlike other forms of energy production, Scotland does not have a competitive advantage in nuclear energy.

While Westminster has theoretical responsibility for energy policy, the Scottish Government has an effective veto through planning powers which created something of an impasse.

 

Mr Blackett said: ‘We would support the aim of a substantial increase in energy exports with a target of around half of electricity generated in Scotland being exported because, even using conservative assumptions on prices, this would increase Scottish exports by £2 billion per annum, equivalent to around 17% of manufacturing exports to the rest of the UK.

 

‘Given that some of the current fossil fuel and nuclear capacity will still be available in 2020, this is feasible if the 100% renewables target set by the Scottish Government is met.’

 

With the right policies and drive, Scotland could become the biggest exporter of low carbon electricity in Europe, the report authors believe. For that to be realised, a significant majority of the electricity generated in Scotland,  - between 50% and 75% -  would have to be met from low carbon sources by 2030 so that enough electricity is generated from renewable sources to exceed Scottish demand.

 

Mr Blackett explained: ‘We support the policy of the SNP Scottish Government and the previous Labour and Liberal Democrat Scottish Executive, which has been to promote renewable energy development.  This policy has been successful and it is now the time to go further.

 

‘The Scottish Government was right to encourage the further acceleration of renewable energy generation by increasing the 2020 renewables target to 100% of Scottish electricity demand.  A large proportion of that target can be achieved by wind power - on-shore over the next few years and increasing off-shore as 2020 approaches. The Scottish Government should set longer-term targets to encourage investment and to signal that the country is an attractive location for the development and deployment of new and emerging technologies.

 

‘Following the devolution of energy policy to the Scottish Government, we would support a policy environment that encourages innovative, ‘low carbon’ sources of energy to accommodate new and emerging technologies that can make a significant economic development and environmental impact, including carbon capture and storage.’

 

This would include:-

• A strategy for skills provision from universities and colleges

• A framework for renewable development eg. port, testing and manufacturing facilities

• Accelerated planning arrangements for renewable projects

• Investment in domestic grid to facilitate an increase in new electricity generating capacity, distributed across Scotland

• Support for a wider European grid to facilitate a competitive Europe-wide market in electricity supply

• Access to grid at prices that do not discourage investment

 

Mr Blackett added:‘We do not think that Scotland’s existing nuclear power stations should be replaced and we believe that the sites should be used to develop new energy technologies.’

 

He said that the disadvantages of nuclear electricity generation included cost risks  - associated with the risks of capital cost over-run and uncertainty on the long-term costs  connected to treating and storing waste - and the limited potential for the nuclear sector to contribute to economic development in Scotland, compared to other generation sources.

 

The report concludes: ‘Energy policy is crucial to Scotland’s economic future.  The energy sector has the potential to make a major contribution to the development of the Scottish economy.

 

‘As a result of Scotland’s natural energy resources, the strengths of the university research base, the energy companies based in Scotland and a favourable policy environment, Scotland could become a world-leader in new energy generation technologies.

 

‘Scotland could become a case study in sustainable development and export the technology and know-how around the world.  Scotland needs an energy policy that recognises this opportunity and removes the barriers to realising it.’

A high-powered inquiry group has been set up to carry out a detailed, forensic examination into key aspects of schooling in Scotland and its fitness for 21st  century purpose.

 

It has been established by the independent think tanks Reform Scotland and the Centre for Scottish Public Policy and includes leading educationalists, representatives of different political parties, heads of schools and colleges, and figures from the business and sporting worlds.

 

The Commission on School Reform met for the first time on Friday (November 25) under the chairmanship of Keir Bloomer, former President of the Association of Directors of Education and member of the group that wrote Curriculum for Excellence.

 

Keir Bloomer said: ‘Our remit is very wide. There is really no aspect of Scottish education that we are prevented from considering.

 

‘It will start by examining whether Scotland’s international reputation for excellence is still justified and whether our schools are still enabling young people, especially those from disadvantaged backgrounds, to fulfil their potential and meet the unprecedented challenges of the modern world.

 

‘In the course of its investigations, the commission will identify any problems with the current school system in Scotland and try to analyse the root causes of them. It will, therefore, consider key questions such as whether any problems are the result of a lack of funding or are connected with more fundamental structural issues such as the way in which our schools are governed and managed.

 

‘It will look at the school systems of other comparable countries to establish how their achievements and structures compare with our own. Further, it will consider whether the measures used in international comparisons provide a good guide to the ability of different systems to equip young people for life in the 21 century.

 

‘The Commission will take evidence from a variety of individuals and organisations and, together with the lessons that can be learned from other countries and from our own past experience, this will inform the recommendations that the commission makes as to how we can improve the school system in Scotland. The aim will be to produce a report setting out the commission’s findings and recommendations in the latter part of 2012.’

 

Scottish developer Mark Shaw, of Hazledene Group, has bought a former Olympic ski centre and spa in the Italian Alps in a multi-million Euro takeover deal.

The Chief Executive of the Edinburgh-based company has purchased Pragelato Village Resort, built for the 2006 Winter Olympics, in an acquisition worth around €30 million. [euros]

The resort, directly linked to the Via Lattea skiing area, consists of 205 individual chalets and extensive luxury facilities, and was built at a cost of more than €100m. That construction was funded by Anglo Irish Bank, with the Irish investors losing their equity when the original holding company was placed in receivership in 2008.

Mr Shaw finally took ownership of the resort last week, after two years of complex multi-party negotiations and Italian legal proceedings, during which time he helped to keep Pragelato open and running.

The successful sale was managed by BDO's Jim Hamilton, the holding company receiver, and Brendan Traynor, Director of BDO Dublin.

Hazledene Group now plans a multi-million euro upgrade that will make Pragelato – which sits high in the mountains 50 miles to the west of Turin - one of Europe's premier winter sports destinations, as well as an all-year-round holiday centre.

Mark Shaw said: 'Although it may appear counter-intuitive to invest in Italian real-estate at the moment, we are confident there is an exciting long-term future for the resort. The sales process has been very complicated, and during that time we have been able to build excellent local relationships, based on a common aim, which is to see Pragelato finally fulfil its fantastic potential in terms of ski-ing, services and luxury accommodation. It is a very exciting project that will benefit the entire local community.'

The purchase has been completed without third-party finance, following recent sales that Mr Shaw has completed in Scotland, including the award-winning iQ office development in Aberdeen city centre. iQ was acquired for more than £50 million (Sterlng] by Aerium, the European real estate fund manager, in July this year, after setting new rent records for the UK market outside London. It is now occupied by the Wood Group and by energy giant Centrica.

Earlier this year, Mr Shaw also became Chief Executive of Urbicus Limited, an asset management company which was involved in the purchase of the entire Scottish loan portfolio of Anglo Irish Bank. The Pragelato acquisition is not connected to the Urbicus transaction.

Mr Shaw currently has several major development projects underway throughout Scotland and is the owner of the recently opened Park Inn By Radisson which is part of the £75 million iQ office and hotel development in Justice Mill Lane, Aberdeen.

Hazeldene is a key player in the Inverness Estates consortium and at more than £500 million, the creation of a new town centre east of the Highland capital – straddling the A96 Aberdeen road – is the largest single land and property development in the country.

The Hazledene portfolio also includes a major regeneration project in east Lanarkshire. Hazledene Homes Ltd plans a £70 million self-contained, waterside community that will blend in with the rolling landscape and integrate with surrounding towns and villages.

 

FACTFILE:

 

• Pragelato Village Resort is located in the Via Lattea [Milky Way] ski region of Piedmont, an hour's drive from Turin and about two hours from Milan.

• It comprises 205 well-appointed chalets divided into 20 individual clusters, and three executive suites on the top floor of the main hotel building. This incorporates the hotel reception, cinema, conference facilities, three bars and restaurants. Opposite the hotel is an activity centre, shop, ski rental, pizzeria, an ATM bank and heated ski storage and changing room.

• Adjacent to the hotel is a new 70-person cable care station giving direct access to the slopes, including 27 runs with artificial snow cannon.

• There is also a nearby new 10-hole golf course and clubhouse.

• A spa complex in the resort is the largest in northern Italy at 1,700 square metres and has treatment rooms, main pool, gym and rest room. There is also an outdoor pool and Finnish sauna.

Holyrood will be effective in tackling poverty only when it is given much greater responsibility for spending Scotland’s £20 billion welfare budget, a leading think tank told MSPs today. 

Shifting control of major elements of social protection from London to Edinburgh is a key part of Reform Scotland’s proposal for Devolution Plus – its recommendation for the ‘third option’ in the forthcoming independence referendum.

In evidence to Holyrood’s Scotland Bill Committee, the independent think tank says the fundamental defect of the current devolution settlement is its lack of financial responsibility.

It points out that although the Scottish Parliament has control of about 60% of total public spending, it has responsibility for less than 7% of funding.

Holyrood, it says, should have control over enough tax and borrowing powers to meet its spending commitments, removing the need for a block grant.

Devolution Plus would leave Westminster responsible primarily for VAT and National Insurance, with most other taxes devolved to Holyrood.

Reform Scotland suggests control of major welfare benefits needs to be transferred to the Scottish Parliament, with Westminster maintaining responsibility for State pensions and sickness/maternity pay.

Of the £19.9 billion spent on social protection in Scotland in 2009/10, £15 billion was spent by Westminster, £4.7 billion by local authorities and only £113 million by the Scottish Government. Under Reform Scotland’s proposals, £7.2 billion of the £15 billion would be devolved to Holyrood. Westminster would be left with responsibility for £7.8 billion, £5.75 billion of which is spent on state pensions.

‘The reasoning behind this is to achieve a more coherent and effective approach to alleviating poverty,’ said Reform Scotland chairman Ben Thomson, who is expected to give oral evidence to the Scotland Bill Committee at Holyrood later this month.

‘Many areas associated with this goal are already devolved to the Scottish Parliament, such as housing and social inclusion, yet the Scottish Government can make no concerted attempt to address poverty without the necessary tools and that requires welfare provision to be devolved.’

Reform Scotland claims the split in programmes between Westminster and Holyrood makes policy on relieving poverty ‘unfocussed and inefficient’ and reduces the Scottish Government’s efforts to mere ‘tinkering’.

In its evidence to the Scotland Bill Committee, Reform Scotland says it is vital the referendum – to be held before May 2016 - offers genuine choice, not just independence or the status quo. Its ‘third option’ suggestion is predicated on more extensive devolution within the United Kingdom.

Underpinning Devolution Plus is the fundamental principle that every layer of government – whether it be Westminster, Holyrood or local authorities – should be responsible for raising most of the money they spend.

‘In the case of the Scottish Government, our view is that Holyrood should raise all the money that it has responsibility for spending,’ said Mr Thomson.

‘This is based on the principle that better government comes from politicians being financially accountable for their decisions and that the centralised allocation of budgets provides the wrong incentives for promoting efficient public sector spending. It would also give politicians in Scotland the necessary financial levers and incentives to create a tax environment conducive to growing the Scottish economy.’

Reform Scotland calls for both income tax and corporation tax to be devolved in their entirety to avoid confusion and duplication, adding: ‘These taxes can also be altered to achieve economic levers for growth within a region and create a healthy environment of fiscal competition in which Scotland can retain and win new business.'

Mr Thomson said: ‘There is, at present, a very real imbalance between Scotland’s responsibility for setting and collecting income and the expenditure it is responsible for. Therefore, we have recommended a structure that will shift the responsibility for raising revenue to create a much more even balance between Holyrood and Westminster which incentivises both governments to act more responsibly within their respective areas of power. 

'In addition, we have recommended a significant shift in responsibility for elements of welfare from Westminster to Holyrood. 

‘In this way, Reform Scotland believes that the proposals outlined within our evidence would help the Scottish Parliament become more fiscally responsible as well as providing some meaningful tools to address social problems affecting Scotland.’

A Scottish hotel, which celebrates its first birthday today, has been named as one of the most successful of its kind in the world.

Leading hotels group Rezidor said the 185-bedroom Park Inn by Radisson in Aberdeen was ‘top of the tree’ within its 145-plus international stable in terms of occupancy rates and profitability.

In just 12 months, Park Inn by Radisson, in the city centre, has emerged as one of the company’s flagship hotels thanks to outstanding performance in the face of tough economic challenges.

Established in early 2003, Park Inn by Radisson runs hotels with 26,500 rooms in operation and under development across Europe, Middle East and Africa.

Marking the hotel’s first year in business, Phil Dark, Vice President of Park Inn UK, said today: ‘We are thrilled with the Park Inn by Radisson in Aberdeen in its opening year. It is an outstanding property that has been extremely well received in the market. 

‘The team at the hotel has done a fantastic job which is reflected in our positive guest feedback, market performance and overall success – putting the hotel at the top of the tree in terms of successful Park Inn by Radisson openings.’

The six-storey hotel was built by Hazledene Group as part of its stunning iQ offices and hotel development in the heart of Scotland’s oil capital. The offices, which achieved Scottish record rentals when they were occupied shortly after completion by Centrica and Wood Group, were recently sold to London-based Aerium Finance for more than £50 million.

David Allan, General Manager of the Park in by Radisson, Aberdeen, said occupancy rates in the first year of business had exceeded expectations.

He said: ‘The hotel is in a prime location in the heart of the city and we have attracted a wide cross-section of guests including holidaymakers, weekend visitors, business people and corporate clients. But hand-in-hand with location has been the first-class, friendly and efficient service provided by the staff and I pay tribute to them for all their hard work.’

The hotel employs more than 100 staff and incorporates eight meeting rooms including a large conference room, divisible by three, a gym and RBG, the new restaurant-and-bar concept launched successfully in Park Inn hotels across the UK.

Hazledene, whose chief executive Mark Shaw is an Aberdonian, has retained ownership of the city centre hotel.

Mr Shaw said today: ‘With iQ, we set out to produce a top-of-the-range, high-quality office and hotel development that would enhance the city and boost the local economy. The success of the hotel along with the lease and subsequent sale of the offices all indicate that our efforts were well worthwhile.’

First Minister Alex Salmond marked the start of construction of the iQ development in August 2008, describing it as further evidence of Scotland's resilience in the face of economic downturn.

The key to better policing in Scotland is to give every local authority area its own force, a leading think tank proposes today. 

Reform Scotland rejects calls for a single Scottish police force, claiming decentralisation is the route to more effective and accountable policing.

The radical proposal is diametrically opposed to current demands to integrate Scotland's eight police forces into a single entity.