This election and the impact that it will have on the Brexit negotiations is of vital importance to Scotland’s energy industries. It is imperative that we continue to shine a light on the fact that the Conservative party in Government has classed oil and gas as a “low priority” for the Brexit process, and they are not listening to industry. I want to be back on the front benches in Westminster as Aberdeen South’s MP and the SNP’s spokesperson for Business, Energy and Industrial Strategy to directly debate with the Government and pressure them to rethink their priorities immediately.
The oil and gas industry is starting to turn a corner and a feeling of optimism is returning to platforms and boardrooms, but more needs to be done. Recent news like Hurricane Energy’s massive find in the Lancaster field shows that the potential is definitely there, but we will only find it if exploration levels increase. The SNP have long supported the introduction of Norwegian-style exploration incentives and we support loan guarantees to ensure that critical infrastructure is developed and maintained.
Oil and Gas UK calculated the hard Brexit being pursued by the Tories will cost the industry an extra £500m a year, while RGU’s Oil and Gas Institute suggests the impact of tariffs on the supply chain will top £200m per annum. The SNP believes that oil and gas must be a top priority in the Brexit negotiations and that membership of the single market should maintained to avoid the cliff edge the Tories are driving us towards.
Scotland’s renewable industries have been hammered over the last couple of years, with the continual shifting of the goalposts by out of touch energy ministers in Whitehall. Onshore wind, solar, biomass and tidal technologies have all faced cuts in subsidies or removal of dedicated support, despite the fact our potential is enormous. We are home to the world’s first commercial tidal array and will soon be home to the first floating wind farm being constructed off the coast of Peterhead by Statoil. These industries need the support of government to develop and lead in both domestic and international markets. The SNP put these industries right at the heart of the industrial strategy and would introduce incentives for oil and gas companies to diversify into renewables.
Peterhead is the last remaining conventional, thermal power plant in Scotland. It is currently under review by its owners, due largely to the punitive transmission charging regime penalising energy production in Scotland. Had the Tories not cancelled the £1bn they promised for Carbon Capture and Storage, it could be leading the world as the first CCS gas plant. It now faces the prospect of closure, unless transmission charging is reviewed. The UK is one of very few countries that operate a discriminatory approach to transmission charging in different regions. The SNP will scrap this and end the punitive charges on electricity generation in Scotland.
This country needs significant policy shifts from the UK Government to ensure that our vital energy industries thrive. I will stand up for the people and jobs of Aberdeen South and make sure that UK Government ministers hear the truth about their inaction and poor priorities. We must not allow the Tories to devise the fall of yet another industry in Scotland, so on June 8th vote SNP.
Callum McCaig is the SNP candidate for Aberdeen South
With just a few days left to the snap General Election, Energy Voice has been round the political parties to see what they have in store for energy policies.
All the major political parties were contacted for comment. These are the ones who responded.