Doubts over the outcome of the independence referendum are stalling investment in the north-east of Scotland by English firms keen to develop their oil and gas portfolios, according to a leading lawyer.
Richard Cockburn, a partner in the energy and natural resources team at legal firm Bond Dickinson, is involved in helping companies from both areas expand and, where appropriate, work together.
The firm has offices in Aberdeen, Newcastle and Teesside. He said more and more supply chain companies from the north-east of England are keen to become involved in the opportunities which the current buoyancy, combined with a skills shortage, has created.
However, they are increasingly concerned about what will happen after September 18.
“It doesn’t seem to be a question of whether ‘yes’ or ‘no’ wins but simply what will happen whoever wins,” he said.
“I have met with a number of companies in recent weeks and several of them have been asking what we expect to happen in the referendum.
“They say that when their boards are being asked to look at doing business in Aberdeen there is an element of doubt in their minds, because of future uncertainty, which reduces the chances of a positive decision.
“A recent British Chamber of Commerce survey revealed that 12% of companies across north-east England are putting off investment ahead of the Scottish independence referendum and from my discussions I am sure that is not an over-estimation.”
The survey revealed only 7% of firms said Scottish independence would influence future business decisions and 76% said they would not change their business strategy for an independent Scotland.
However, 14% of firms forecast that independence could have a negative impact on their sales and orders if independence and grant subsidies provided an advantage for inward investment and if tariffs like Air Passenger Duty were lowered.
“The high level of activity in Aberdeen and the north-east of Scotland means there can be a bottleneck in the supply chain which creates opportunities for contractors from the north-east of England to come in and offer additional supply,” said Mr Cockburn.
However, his concerns were played down by the Scottish Government. “North Sea investment is booming at record levels, as underlined by recent industry figures, and just last week Cairn Energy announced a £343million loan deal to develop two North Sea fields,” a spokeswoman said.
“There is no sign that the debate surrounding independence is having any impact on the North Sea. In 2013, the North Sea experienced the highest level of capital investment for more than three decades at £14.4billion.
“This highlights the potential for the North Sea oil and gas sector to boost economic activity and contribute to Scotland’s public finances for many years to come.
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