SCOTLAND’S Economy Secretary has said he is “cautiously optimistic” about securing contracts for manufacturing firm BiFab, which he hopes will benefit the renewable energy industry.

Giving evidence to Holyrood’s Economy Committee, Derek Mackay told MSPs that waiting for companies “to do the right thing” has not been successful but the Scottish Government is working on incentives for the industry.

The Burntisland Fabrications yards in Methil and Burntisland, which produce large-scale equipment for the offshore oil and gas industry, have struggled after contracts were lost to overseas firms. The Scottish Government has “tried to be as supportive as possible” since the sites were taken over by a Canadian firm last year, Mackay said, and was “trying to ensure a sustainable future for the company”.

READ MORE: Climate change: Ditching market-led model will benefit working class

He added: “I do remain cautiously optimistic that contracts will be secured for BiFab but we need to ensure that the benefits need to reach the wider supply chain of renewables in Scotland.”

Mackay said he hoped to see “companies taking the lead and getting on with giving UK and Scottish companies the best possible chance to secure onshore work for the offshore industry”.

Despite additional devolved powers for managing Crown Estates, leases of seabeds off the coast, Mackay bemoaned the lack of control over a subsidy he said was “the main driver for these companies”.