‘Give hope for the future’

Unite says it is disappointed that the Scottish Government has failed to agree to invest in offshore infrastructure.

The union was reacting following a Members Debate today (February 23) brought forward by North East Scotland Labour MSP Lewis Macdonald. His motion called for the Scottish and UK Governments to use their borrowing powers to invest in vital infrastructure to keep the industry healthy.

During the debate, Energy Minister Paul Wheelhouse did not commit to any investment in offshore infrastructure, but encouraged trade unions to put forward the idea as part of a consultation on the Scottish Government’s draft Energy Strategy.

“It was very disappointing that the minister wasn’t able to commit today to the idea of public stakes in our offshore sector,” said Unite regional officer Tommy Campbell. “Our members and the industry both believe that it is an idea whose time has come.

“During the debate, the minister said he believed there are signs that the industry is beginning to emerge from the downturn. Our members simply don’t believe that, and they are looking for the Scottish Government to take a lead.

“As a first step, Scottish Ministers should convene a summit involving Holyrood, Westminster, the companies and the trade unions, so that we can create a shared vision for the future of oil and gas.”

Lewis Macdonald said, “I have called many times over the last two years for action from both the Scottish and UK governments.

“The biggest risk to future economic activity is that a key piece of that infrastructure is shut down because it no longer makes money, but its closure has a knock-on effect.

“Premature decommissioning of infrastructure can block oil and gas production upstream, so that one early closure leads to another,” he added.

Mr Macdonald made the point that government investment was a good deal that could provide returns to the public purse in the future.

“The state must act where markets fail to deliver, but that does not mean giving public money away,” he noted.

“Public sector operators of infrastructure or equipment can charge competitive prices and make a return, but they can also act in the public interest to maintain production and spread risk.

“The North East economy and the oil and gas workforce have shown tremendous resilience to get through the last two years.

“Now is the time to give fresh hope for the future.”