A Tory MP has urged the UK Government not to forget the “enormous” economic importance of North Sea oil and gas.
Nicholas Soames, a grandson of wartime prime minister Winston Churchill, will put the industry back on the political agenda today after securing a debate on offshore taxation at Westminster.
He believes it is as crucial to the economy as the City of London – describing it as “a goose that lays a golden egg”.
Chancellor George Osborne left North Sea oil and gas producers furious last year after announcing a £10billion tax raid without consulting the industry.
Speaking to the Press and Journal on the eve of today’s debate, Mr Soames said he understood the reasons behind the decision but wanted to remind the government that the industry was a major asset for the entire country.
The former defence minister and Conservative MP for Mid Sussex said: “I attended a briefing quite a long time ago, in the middle of last year, about the oil and gas industry, and I was electrified at the scale of the investment and the consequences of the investment.
“I knew it was a big business, but one forgets how big. There is vast job creation potential in the oil and gas industry, not just in Scotland but all over Britain. I am pressing the government to remind themselves constantly that this is a goose that lays a golden egg.”
Mr Soames said the oil and gas sector had “done Britain very proud” since production began.
“This is an enormous asset for Britain,” he added. “Everyone talks about the City of London all the time, well here is another golden goose.”
Mike Tholen, economics director for industry body Oil and Gas UK, said: “The UK oil and gas industry has the ability to make a massive contribution to our energy needs for decades to come, providing highly-skilled employment and substantial tax revenues.
“However, despite strong investment in 2011, the province is under-performing with dramatic falls in production and exploration and will struggle to realise its full potential.”
Mr Tholen added that the “backdrop of continued fiscal instability” in recent years had not helped, but that the industry was working hard with the Treasury and looked forward to specific measures being brought forward in this year’s Budget.