Annex 2: Note of roundtable discussion, Aberdeen, 19 December 2016
This roundtable included participants from further and higher education, businesses, agriculture, fisheries, energy, oil, tourism and the health sector. The discussion focused on issues around people and skills. It was highlighted that the available workforce in Aberdeen and North-East Scotland had already shrunk, and there was evidence of people leaving as no-one could provide reassurance about what would happen after Brexit. Some businesses had EU workers with over 10 years’ experience in the UK and were worried that their expertise would be lost, creating challenges for recruitment in sectors such as health, social care and tourism.
The local economy was highly dependent upon EU migrants. For example:
- Some 70 per cent of workers in the fish processing industry were EU migrants; in some work places this was as high as 80 per cent.
- Abattoirs were very reliant on vets from overseas, including a large number of Spanish vets.
- The fruit industry was comprised almost entirely of Polish workers.
- Between a third and a half of workers in the tourism sector were from overseas.
- A significant proportion of health care workers were from the EU.
- A large number of foreign nationals, from both inside and outside the EU, worked in the subsea industry.
Some participants were concerned that the region did not have the infrastructure, education or training in place to build the local workforce, and would struggle to make jobs attractive.
For higher education, the uncertainty around EU research funding was a risk for retaining staff and students who wanted to work with foreign partners. Similar concerns were raised by the life sciences sector as scientific researchers tended to follow the funding.
The devolved powers on education further complicated the picture, The Scottish Government’s budget currently pays for tuition fees. There were questions around whether tuition fees would need to apply to EU students once the UK leaves the EU and the impact that would have on student numbers. Some further education programmes were also funded by the EU, for instance through the European Social Fund.
The tourism sector wanted more clarity on the future of “Open Skies” and visas and were concerned with the costs and practicalities of changes to either. It was explained that the UK was already considered an expensive tourist destination and further barriers to travel to the UK were a key concern.
On the other hand, leaving the EU presented many opportunities for the fishing industry, which the Committee had heard in oral evidence that morning. There were worries within the industry that those opportunities would not be realised were the fish stocks in the UK’s waters to be used as a bargaining chip in the negotiations.
It was noted that the agricultural sector had been driven by EU subsidies for the last 40 years. For example, 75 per cent of net farm income in Scotland comes in the form of support, especially for livestock. It was suggested that subsidies can stifle innovation as well as bringing down the price of food in the shops. In addition to subsidies, Europe was also a major market for agricultural exports, with 96 per cent of Scottish sheep exports going to Europe. It was believed that the high leave vote amongst farmers was due to a dislike of EU regulation.
The food and drink industry had a large trade deficit with the EU. Concerns were expressed about changes to the free movement of workers, as well as to trade and regulations. While recognising that there would be opportunities in the long-term, right now it was suggested that the industry was “looking down the barrel of a gun.”
The oil and gas industries were concerned with the future regulation of the offshore environment, particularly the risks to safety and environmental regulations once the UK no longer has a seat at the table. For the offshore wind industry, the uncertainty surrounding Brexit was hindering investment. It was suggested that uncertainty in Scotland more generally was compounded by the re-emergence of the independence question.
We also took formal oral evidence during our visit to Aberdeen which is published on the Committee website.134
13 January 2017