North Sea oil is better off with the “broad shoulders” of the UK being able to stand behind it, the Prime Minister has said amid news of further falls in the cost of crude oil.
David Cameron told MPs during Prime Minister’s Questions in the Commons that North Sea oil was a “vital” industry for the UK, adding “we should do everything we can to help it”.
He argued that the falling oil price “makes the case” for the strength of the UK and the “utter misguided nature of the SNP who thought they could base their entire budget on such a high oil price”.
His comments came as Labour’s Anas Sarwar (Glasgow Central) said the price drop was “bad news” for Scotland’s oil industry and thousands of workers.
Mr Sarwar drew attention to reported comments made by First Minister Nicola Sturgeon on industry trends as he called on Mr Cameron to meet with Scottish Labour leader Jim Murphy, cross-party representatives and industry workers to discuss possible support for the sector.
Mr Sarwar said: “The price of oil has now fallen to 50 dollars a barrel. While this is good news for motorists, it’s bad news for Soctland’s oil industry and thousands of workers.
“It comes just weeks after Nicola Sturgeon said we are on the verge of a second oil boom and after the independence white paper said it would be 113 dollars a barrel.
“But this is a serious issue, jobs depend on it. So will the Prime Minister agree to meet with the member from East Renfrewshire, a cross-party delegation, with industry leaders and workers to see what support can be provided.”
Mr Cameron responded: “Well I absolutely agree with him on all three grounds. First of all North Sea oil is a vital industry for the UK, it’s one of the biggest investors in our country and we should do everything we can to help it.
“Which is why second in the Autumn Statement we actually took some steps to improve the taxation regime for North Sea oil.
“But third I think it does make the case for the UK, as we said during that referendum campaign, that North Sea oil is better off with the broad shoulders of the UK being able to stand behind it, because you never know whether the oil price is going to be over 100 dollars or, as it is today, around 50 dollars.
“I think it makes the case for the strength of the UK and the utter misguided nature of the SNP who thought they could base their entire budget on such a high oil price.”
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