Politicians need to work together to help the North Sea oil industry through a “very challenging time”, Scotland’s First Minister has said.
Nicola Sturgeon was speaking as a special summit looking at what can be done to support the key sector took place in Aberdeen.
Both Ms Sturgeon and Scottish Secretary Alistair Carmichael are taking part in the talks, as is Scottish Labour leader Jim Murphy.
Senior figures from the industry, including Oil and Gas UK chief executive Malcolm Webb, are also at the summit, which has been organised by Aberdeen City Council.
Experts have warned that the industry is in crisis, with a barrel of Brent crude more than halving in price since last summer to around 50 US dollars (£33) a barrel.
Hundreds of job losses, pay cuts and freezes have been announced by companies including BP, Taqa, Petrofac and the Wood Group in recent weeks.
Industry leaders and Labour and SNP politicians are now urging the UK Government to introduce urgent tax cuts to help the North Sea.
Speaking shortly before the event, Ms Sturgeon said it was a “very challenging time for the industry”.
She told BBC Radio Scotland: “I think it is very important to be clear, though, that the North Sea oil and gas industry has been, is and I believe will continue to be a significant asset for Scotland and the Scottish economy.
“But it faces a challenge at the moment and that means it is incumbent on all levels of government to work together to provide the industry with the support it needs at this time.”
The First Minister said the Scottish Government would produce new analysis of the impact of falling oil prices on the economy – but with changes expected to the tax regime in next month’s Budget, she said this could not take place until after that.
Ms Sturgeon said: “In due course we will produce forecasts but those forecasts are very dependent on the tax regime because it is the tax regime that determines the amount of revenue that comes from the North Sea, so we need to see what the tax changes are that the UK Government is going to make before we can produce those reliable forecasts.”
Mr Carmichael told the BBC it was “simply not true” that the UK Government had been idle on this issue.
He said: “There will be a Budget next month, and you’ve heard it both from the Chancellor and the Chief Secretary to the Treasury saying that it is understood that more will require to be done in that Budget.
“It is understood across government – in the Department of Energy, the Treasury and in the Scotland Office – that this is a significant moment in the history of the industry. As to what will be in the Budget, I’m afraid that’s not for me to tell you today.”
Jenny Laing, the leader of Aberdeen City Council, said that even before the drop in oil prices “the industry was telling us that they needed help within the industry to sustain the long-term future”.
She told BBC Radio Scotland: “I would hope that governments at all levels will be paying attention to what the industry is saying, because for too long they have used the industry as a cash cow. In my opinion, it’s now time for us to pay back and make sure we can sustain the long-term future.”
Mr Murphy has called on the Scottish Government to introduce a £10 million resilience fund to help areas facing financial shock.
He said: “A resilience fund would enable a local authority to take immediate action to offset some of these problems such as offering business rates relief or setting up training opportunities for those losing their jobs.
“The fund would only be used in the event of an area facing a substantial economic shock. The comparison I made previously was with the effect on Lanarkshire from the closure of Ravenscraig steel plant.”
