A group of MPs has claimed that the North Sea industry is using the oil price slump as an “opportunity” to cancel projects, sack workers and shelve maintenance work.
A motion has been tabled at Westminster and signed by 16 MPs saying that they are “dismayed” by the actions of some employers since the price plummeted.
Industry body Oil and Gas UK has written to Alex Cunningham, the Labour member for Stockton North who lodged the motion, to deny that the sector is taking “short-term responses”.
Several leading offshore firms have announced job losses in recent weeks following the global oil price collapse.
The motion states that the MPs are “deeply concerned by the severity of the downturn in the UK offshore oil industry” and that they are “alarmed that the industry’s short-term responses have included delay and cancellation of long-term projects, laying off workers, extending working hours and attacking conditions of service”
It adds that they are “dismayed that some employers see this crisis as an opportunity to accelerate cost-cutting recruitment practices and reduce essential maintenance work” and “oppose such short-term responses to the crisis which jeopardise tens of thousands of jobs”.
It was tabled this week and has been signed by 12 Labour MPs, one Conservative, one Democratic Unionist Party member, one from Plaid Cymru and independent Mike Hancock.
Oil and Gas UK said that its chief executive Malcolm Webb had written to Mr Cunningham about the motion.
A spokeswoman added: “In that letter Malcolm agreed that the UK offshore oil and gas industry is in a critical period at present, but stressed also that the industry is not taking ‘short-term responses’ to address the situation.
“The letter pointed out that the current challenges the industry is facing are exacerbated by, not a direct result of, the fall in oil prices.
“It also conveyed that alongside reducing its cost base and improving efficiency, the industry requires a fundamental and urgent change to the taxation regime and the swift implementation of the Wood Review, including no delay to the effective operation of the Oil and Gas Authority.
“We welcome the sentiment that cross political and industry engagement must occur during this crucial time, and it is in this spirit we look forward to Mr Cunningham’s response to our invitation to discuss the issues that the offshore oil and gas sector is facing and what the industry itself is doing to overcome these challenges.”
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