Politicians were today warned that the oil and gas industry was heading for a “cliff edge” in terms of investment.
Oil & Gas UK chief executive Malcolm Webb told delegates at an oil summit in Aberdeen that the sector was “in a bad place” and required urgent action on a number of different levels.
He also told the UK Government that the Budget next month must deliver significant tax cuts.
Mr Webb said: “It is vitally important that we don’t delude ourselves into thinking that the real problem is the price fall. The industry is currently heading towards a cliff edge in investment.”
Mr Webb added: “I beg politicians not to make a political game of it.
“The upcoming Budget presents a final chance to get this right. Half measures will not do and there will not be a second chance.”
Earlier, Aberdeen City Council leader Jenny Laing made the case for a £2billion “City Deal” for the north east.
The local authority is working with neighbouring Aberdeenshire Council on securing the growth package from the UK Government.
Mrs Laing said it was time to “seize the moment” and make radical improvements to local infrastructure, including road and rail links, housing and boost skills development.
First Minister Nicola Sturgeon said the SNP government was “ready and willing” to work with both councils.
The Scottish Government has already made a £500million commitment to a regional deal for Glasgow.
Scottish Secretary Alistair Carmichael insisted that the UK government was working to make the required changes to the fiscal regime which the industry has been calling for.
He said: “We understand the significance of this moment. Your message is being heard loud and clear.
“The message is being heard and the Budget is not far away.”
Prior to the summit at the Aberdeen Exhibition and Conference Centre getting underway, Scottish Labour leader Jim Murphy said “concrete action” was needed.
He said: “The people in this room have the power to make some big decisions without any excuses.”
Recommended for you
