SB(08)11th Conclusions
MEETING OF THE SCOTTISH GOVERNMENT STRATEGIC BOARD: HELD ON THURSDAY, 21 AUGUST 2008
Present
Sir John Elvidge KCB (chair)
Robert Gordon CB
Andrew Goudie
Philip Rycroft
Richard Wakeford
Stella Manzie CBE
Apologies: Kevin Woods
In Attendance
Alyson Stafford
Sarah Davidson
Elinor Mitchell
Andrew Watson
Rebecca Winterstein
John Mason
David Wilson
Fiona Robertson
Lesley Fraser
John Ewing
Dominic Munro
Agenda Item 1: Impacts of and Responses to High Energy Costs (SB(08)37); and Development of Long Term Energy Pictures to Inform Policy Options (SB(08)38)
1. Mr Wakeford introduced papers SB(08)37 and SB(08)38, which invited the Strategic Board to consider an assessment of the main impacts of rising energy costs and to offer views on how the Scottish Government should respond corporately to those impacts and proposals for the development of 3 broad energy scenarios to inform and test options for future energy policy. He said that three strategic questions had emerged during the course of the work, which were: how to further energy conservation and efficiency in Scotland; whether there was a case for supporting the worst affected households, businesses and public sector bodies to adjust to higher energy costs; and how would the Scottish Government need to rethink policies and/or processes in response to this issue?
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
2. Mr Mason said that analysis of past trends, set out in SB(08)37 figure 1, showed that fuel prices were presently four times higher in real terms than in the 1990s. Although it would be difficult to forecast changes in oil price, even if prices fell back to $80 per barrel this would still be high by historical standards and would present significant challenges to the UK, Scottish and other devolved Governments delivering on some of their objectives; although it was also the case that not all of the effects of increased oil prices would have a negative policy impact.
3. The Strategic Board:
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
(a) Noted that work was in hand on a paper on fiscal options for the Strategic Board to consider in due course ;
(b) Agreed that each of the actions proposed in SB(08)37, paragraphs 32 and 33, should be taken forward (Action: John Mason, David Wilson, Fiona Robertson, Lesley Fraser, John Ewing and Dominic Munro), including seeking a view on priorities from the Council of Economic Advisers (Action: Andrew Goudie, John Mason and Fiona Robertson);
(c) Agreed to the approach proposed in paper SB(08)38 for the development and use of energy pictures to inform policy options, as part of which it would be important to consider fully how constitutional change would affect each scenario (Action: Lesley Fraser);
(d) Noted that the increase in fuel prices would affect many other countries and agreed that, when developing the energy pictures, appropriate links should be made with work being taken forward elsewhere in the world, to avoid unnecessary duplication and to broaden the evidence base available to support further work (Action: Lesley Fraser); and
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
(e) Agreed that, in terms of the next phase of engagement with the Strategic Board, this work should be pulled together into an action plan setting out some key decisions for the Board to consider, as well as highlighting any resourcing issues, any potential contradictions between different policy work-streams, and consideration of how the broad agenda could best be taken forward in co-operation with delivery partners (Action: John Mason, David Wilson, Fiona Robertson, Lesley Fraser, John Ewing and Dominic Munro);
(f) Agreed that there was a need to ensure that the Government's delivery partners were putting in place effective contingency plans in response to the increase in energy prices; (Action: (Action: John Mason, David Wilson, Fiona Robertson, Lesley Fraser, John Ewing and Dominic Munro).
Date of Next Meeting
4. Thursday, 18 September at 8:30am.
Cabinet and Corporate Business Secretariat
August 2008