The North Sea oil and gas industry “doesn’t have five years” unless Labour u-turns on its destructive policies, MPs have heard.
West Aberdeenshire and Kincardine MP Andrew Bowie gave the warning during a UK Government statement in the House of Commons on “building the North Sea’s energy future.”
It followed the announcement that the Energy Price Levy will be replaced by a new regime in 2030.
The current 78% headline rate taxation may just continue under a different name, alongside zero investment allowance.
And Labour energy secretary Ed Miliband confirmed there would be no new drilling licenses granted in the North Sea.
Mr Bowie, Conservative acting shadow energy secretary, said:
“The Energy Profits levy is higher now than it was before because of decisions by the Labour government…
“Crucially the ‘windfall tax’ is now in place for far longer — until 2030 — because of this Labour government.
“Five years. The oil and gas industry doesn’t have five years.
“Investment is drying up. Work is being put on pause. Companies are quite literally shutting up shop.
“The truth is that these high-paid, ‘good, long-term jobs’… do not yet exist in renewables in the North East.
“People are leaving in their droves to other countries – the USA, Saudi, the UAE, Qatar, Norway — where the industry does have a future…
“This government’s plan is a betrayal of those workers. This government’s plan will devastate communities of the North East of Scotland.
“It’s said that in every oil producing country in the world you will find an Aberdonian. Turns out the only country you won’t find an Aberdonian working in oil in the near future is Scotland.
“It might be drill baby, drill in the USA. It’s dole baby, dole under Labour in the UK.”
