Holyrood committee calls for single market focus in Brexit talks

Work continued at the Scottish Parliament during the summer recess to evaluate the impact of Brexit

Retaining access to the single market should be a key priority in the Brexit negotiations, Holyrood's Europe committee has said.

The committee worked through the summer recess to produce an interim report on the effect of the EU vote on Scotland.

It notes "deep concern" about potential loss of access to the single market after the UK leaves the European Union.

However, the committee also noted that fishing leaders viewed Brexit as an "opportunity".

First Minister Nicola Sturgeon is to appear before the committee on Wednesday, on the same day as a chamber debate on the implications of the referendum result.

Ms Sturgeon has also set up a council of expert advisors as the Scottish government considers its future relationship with Europe, and Mike Russell has been added to her cabinet as Brexit minister.

The Europe and external relations committee worked through Holyrood's summer recess to examine the implications of the referendum for Scotland.

The committee have taken evidence from economists, diplomats, business groups and trade unions

After taking evidence from economists, diplomats, business groups and trade unions, the committee said there had been an "overwhelming" focus on the benefits of the single market.

The report said there was "deep concern about loss of access to the single market in terms of inward investment, free movement of capital, labour and goods".

However, it was also noted the Scottish Fishermen's Federation had voiced hopes that Brexit could be an "opportunity", with the potential for the country's fishing industry to show "world leadership".

The initial 40-page report has been sent to both the Scottish and UK governments, with further work still to be done.

'Cloud of secrecy'

Prime Minister Theresa May has refused to be drawn on details of the UK's potential negotiating position in the Brexit talks, telling SNP MP Angus Robertson that she would not give a "running commentary" when he asked if single market membership was a target.

This led Ms Sturgeon to criticise the "cloud of secrecy" surrounding the issue, warning that Scotland would not accept being "window dressing in a talking shop".

Committee convener Joan McAlpine said what Brexit will look like "remains a mystery"

Committee convener Joan McAlpine said retaining membership of the single market was the preference of most organisations which had given evidence.

The SNP MSP said: "The prime minister has said 'Brexit means Brexit' but exactly what that will look like remains a mystery.

"Our committee will continue to explore in detail how access to the single market can be maintained for Scotland, scrutinise the alternatives and listen to voices from across Scottish society. Most immediately we will examine to what extent Scotland will be able to influence negotiations."

Deputy convener Lewis Macdonald, a Labour MSP, said another priority must be protecting the status of EU citizens who have settled in Scotland.

He said: "The Scottish Parliament has been united in affirming to citizens of EU countries already living here that they remain welcome and valued members of our communities.

"Our committee expects Scottish ministers to prioritise the interests of EU citizens who make such a valuable contribution to our public and private sectors and those attending our higher and further education institutions in their discussions with their UK counterparts."