The Scottish Government has been urged to use its powers to provide more support to the “crisis” hit North Sea oil and gas industry.
Scottish Labour deputy leader Kezia Dugdale used her debut at first minister’s question time to ask Nicola Sturgeon to help safeguard thousands of jobs that are at risk due to a dramatic fall in the price of a barrel of oil which is currently less than $60.
The Labour MSP warned that renowned monetary economist Professor Ronald MacDonald had said a fall to below $40 a barrel was “not unreasonable”.
Ms Dugdale told the SNP leader her government did not see the price fall coming and “must learn the lessons of the past so that we can secure this vital industry for the future”.
“There is a crisis in the oil industry – the unions says so, the companies say so and the Wood Group, Shell, BP and Petrofac are all cutting wages,” she added.
“This is one of Scotland’s key industries and yesterday Jake Molloy of the RMT union said it is on the brink of meltdown’
“Robin Allan of Premier Oil said the North Sea oil industry is close to collapse.”
Ms Dugdale, who was watched by Labour leader Jim Murphy who was sitting in the public gallery, said oil workers needed three things from Ms Sturgeon.
“First, they need assurances that their jobs will be secured, second, they need the Scottish Government to publish any assessment they have made about the long-term impact of the falling oil price for one of Scotland’s vital industries.
“And third, we need a full inquiry into why the Scottish Government was so wrong in the past, so we can get this right in the future for the sake of the tens of thousands of Scots who depend on this industry for their livelihood.”
Ms Sturgeon said not a week went by when Energy Minister Fergus Ewing was not meeting oil industry leaders.
“The industry wants us to unite to call on the UK Government to accelerate action around the new investment allowance, increase support for exploration and reduce the supplementary charge,” she added.
“Lets us come together to call for the sensible action the industry want.
“Those whose jobs are under threat right now would want to see us come together and not have a party political dingdong.”
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