Did Lord Smith even get your Christmas list? What is devo max going to deliver for this industry in Scotland? What did we ask for? Few would deny it would be a good year for a big present. There are limits to what London, let alone Edinburgh, could ever deliver. No surprise the UK will reserve our core tax decisions to London. However if you wanted $100 oil you always needed to speak to Riyadh -about the same population as Scotland, but without such excitement over Smith (or Santa for that matter.)
But don’t let our governments off the hook too quickly. I accept I’m aiming high on this one, (not least with a general election next year) but I think we need some ambition. Try this: are our cousins in the USA smiling because Washington has devolved power to Texas (or even lowered their income taxes, let alone cut global oil supply)? No. They are producing shale gas cheaply. Their government has a regulatory framework that has allowed the safe and successful extraction of shale gas on a massive scale. How about our governments collectively working on that for our Christmas present?
You might not like the idea of shale gas. That’s fine. As long as you give Lord Smith, Mr Cameron and their associates a better idea that’s within their power to grant. It’s only right that my old friend Alistair Carmichael, the Scottish Secretary, is setting up a “stakeholder group” to deliberate on the Smith Commission’s recommendations. I am sure there will be worthy differences of opinion over which parliament should decide if a Scottish 17 year old should be able to vote before their next birthday. As a lawyer who spends time minuting meetings, it sounds like many happy chargeable hours. But such discussions are not going to help our industry.
Unfortunately from politicians, and others, the current mantra I’m hearing all too often is simply “Commitment to Collaboration”. Where is the prospect of action? Where are the bold initiatives to debate? If all we give for Christmas is collaboration sign-up sheets history will not judge us favourably. Don’t get me wrong. Collaboration is a good thing. It’s not a new thing; but it is a good thing. But it’s the following steps that count. I never thought I would welcome back C.R.I.N.E. (Cost Reduction in the New Era). As an ambition, it’s not on the same scale as shale gas. However it is within our control.
It delivered us lawyers some semi-agreed contract terms last time round. It’s a big topic, but we have to get the conversations moving. Subject to a little confidentiality and competition law review you can let your sub-contractors speak to each other now. The automotive industry standardised its components years ago; why do we still order dozens of different 4inch valves?
The Smith Report is a reminder not to wait for the politicians; this is our industry, this is our time.
Peter Murray is a partner at Scottish law firm Ledingham Chalmers where he specialises in UK corporate law and international projects.
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