We all know the tough times facing the north-east. The continuing slump in the oil price is presenting this area with perhaps its biggest challenge since drilling began 40 years ago.
The truth is that we are at a crossroads, and I think it can now go one of two ways.
Either our two governments in London and Edinburgh oversee a managed decline and watch on as all the expertise built up over 40 years moves abroad.
Or they show the vision and the determination to ensure not only that the north-east sees out this storm but that it emerges stronger on the other side.
In a speech today, I’ll be making the case for how they must take the latter course. And, for me, it’s simple.
For the last few years, I have made the arguments that we are better together. I think now’s time we put that into practice here in the North East – with the industry pulling together to find
a better way of working, and our two governments working together to provide the right environment for them to do so
What does that joint working look like in practice?
We saw it only last month with the signing of the City Region deal – and congratulation to the team in the city and the shire who made it happen.
With joint funding from UK and Scottish Governments, it will bring in improved transport links, new innovation hubs – not just in oil and gas, but in the pharmaceutical and food anddrink sectors – plus the expansion of Aberdeen harbour.
That joint action should now be a template for things to come – with government supporting the local Scottish firms which have the expertise and the know-how and now need our support.
To be blunt, we need government and the big beasts of Corporate Oil and to put their shoulder to the wheel.
So I want to see the UK Government, the Scottish Government and the Oil and Gas Authority working better to intervene.
If good companies need support here then I think the government should step in with special measures – as Sir Ian Wood has suggested.
And, if small businesses are about to go bust because of tax bills they can’t pay, then it’s the revenue which should be made to wait for funds, not people thrown out of jobs.
We can’t allow these local Scottish businesses to go to the wall. We mustn’t. They are the lifeblood of our economy, and I want every sinew strained over the coming few weeks and months to ensure they don’t.
Some of that support will come from the UK Government – and be assured that I will be making those arguments directly to the Chancellor over the coming weeks as he puts together his Budget.
Some too must come from the Scottish Government in supporting enterprise here and right across the country.
One thing Nicolas Sturgeon could do immediately is to cancel the utterly unjustified hike in business rates for medium and large businesses – a tax hike which will hit no fewer than 25% of
businesses here in Aberdeen.
It is time for government to act. There’s plenty of the black stuff still under the ocean. With a the right moves and a following wind, the north-east can ride out this crisis and – when the oil price rises – take advantage of keeping all that expertise here, in Aberdeen’s oil and gas hub.
Ruth Davidson is the leader of the Scottish Conservatives
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