NEW shadow energy secretary Caroline Flint has vowed to listen to the concerns of the North Sea oil and gas industry – as she branded the UK Government’s handling of its tax raid as worrying.
The former Europe minister – who was given the energy and climate change brief by Labour leader Ed Miliband last month – will meet sector leaders on a visit to Aberdeen today.
Speaking to the Press and Journal in advance of the trip, she called on the Conservative-Liberal Democrat coalition at Westminster to deliver “certainty, security and clarity” to the industry.
Ms Flint criticised Chancellor George Osborne’s £10billion Budget tax rise for oil and gas producers in March for coming “out of nowhere” and said the government had to step up and provide leadership.
“At the time when it happened and George Osborne made his decision, in reading a few reports on what has happened in the last year, I think what was most worrying is when a decision like this is made and there’s a concern about the lack of discussion with the sector,” she said.
“I’m learning that what government says or doesn’t say – whether it’s in the Treasury or the Department for Energy and Climate Change – about the industry, about the direction of travel, about the priorities of government, does have an impact on business confidence and, with that, investment and planning for our future energy supplies and needs.
“I’m mindful of that and think the way you go about things has an enormous impact on people’s confidence, and I think that was one of the main criticisms, that it seemed to come out of nowhere, there hadn’t been much discussion.
“If the government is going to think that solving their problems in terms of getting revenues in to help cut the deficit, and build jobs and growth, are going to be successful by coming up with ideas at the last minute, then I think that’s worrying for everyone in the business sector.
“Certainty, security and clarity about that direction of travel is really important. I hope this government will step up to providing leadership.”
Ms Flint will meet representatives from industry body Oil and Gas UK and other sector leaders in the north-east today, alongside Tom Greatrex, former shadow under-secretary of state for Scotland and new shadow energy minister.
“I think partly it’s about listening, to be honest,” she said. “It’s part of a discussion and dialogue.
“Our role in opposition is to hold the government to account, but I hope through developing our own relationships with different parts of the energy sector, we can also offer some ideas and support to getting it right, because it’s in the national interest at the end of the day.”
The UK Government has been told to “crack on” and publish its timetable for awarding £1billion of funding for a pioneering green energy technology amid hopes a major slice could go to the north-east.
Plans to create the country’s first carbon capture and storage centre at Peterhead’s gas-fired power station are dependent on European Union and government support.
Ms Flint said: “It’s important that they start being much clearer about their timetable for making some decisions on this, both in terms of the £1billion investment, but also the European element to this.
“I think we need to crack on quite frankly.”
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