Energy Secretary Ed Davey has promised that Westminster will “stand by” the oil and gas industry amid fresh hope that ministers plan to take “extraordinary” action.
Speaking exclusively to the Press and Journal, Energy Voice’s sister publication, on the eve of a trip to Aberdeen today, the Cabinet member reassured offshore workers that they have a “great future”.
Mr Davey and Scottish Secretary Alistair Carmichael will meet sector leaders in the Granite City amid growing alarm at plummeting world oil prices.
Mr Carmichael admitted yesterday that the industry faced “extraordinary times” and the UK Government would have to respond with measures that were “suitable for the times”.
Chief Treasury Secretary Danny Alexander already revealed in the Press and Journal on Tuesday that ministers were considering “going further” in the March Budget than tax breaks announced in last month’s Autumn Statement.
Mr Davey said he wanted to hear for himself what the industry requires from government to help weather the storm, and also see how the Wood Review was being implemented, including speaking to the head of the new Oil and Gas Authority, Andy Samuel.
“It’s obviously vital that we get to hear what the industry is thinking, and see Andy Samuel in place in Aberdeen,” the Liberal Democrat minister said.
“I want to hear from them about things like fiscal policy changes. I’m keen to hear from people what their priorities are, and I think it’s also about understanding what they are doing themselves. It’s a partnership.”
He added: “This is one of the biggest, most important industries in the country. We’re going to stand by this industry. It’s impact not just on Aberdeen, but the whole of Scotland and the UK, is huge.”
Asked what is message was to offshore workers who may be concerned about their jobs, Mr Davey said: “They’ve got a future. They’ve got a great future and we should not allow these sorts of changes to somehow cloud good strategic thinking.
“When you’re doing my job for the whole of the UK you have to think long-term. The meeting tomorrow will allow me and my colleagues to think strategically.
“This government has acted, is acting and will act.”
Mr Carmichael, the MP for Orkney and Shetland, was frank about the requirement for measures to mitigate the impact of the price fall.
“We know we’ve got a lot to do. I’m not going to sit here and tell you at the moment what is going to be in the Budget, but we know that these are extraordinary times and that government will have to come forward with measures that are suitable for the times,” he said.
“Government will need to do more to help the industry, both in Edinburgh and London.
“The oil price falling as rapidly and as far as it’s doing at the moment means that you have to be prepared to look at a new range of options, and that’s what we’re doing.
“Whatever we do it has to be good enough to allow the industry not to rush into decommissioning, and that the businesses that rely on the industry and service it are still there when the upturn comes again.
“This is still an industry with a future.”
Recommended for you
