Energy minister Matthew Hancock has pledged to support the crisis-hit North Sea oil sector prompted by the dramatic fall in global prices.
He came under fire in the Commons today from Labour’s Michael Connarty (Linlithgow and East Falkirk) who accused the Government of doing “very little”.
The MP called for the reduction in the additional taxation on the fuel and investment tax write-offs.
Labour’s Dame Anne Begg (Aberdeen South) also raised the issue during energy and climate change questions.
She asked what was happening to replace the jobs that had been lost and ensure investment continued so the industry was not “decimated” when the price of oil picked up.
Replying to Mr Connarty, Mr Hancock said: “Not only did we take notice in the Autumn Statement already last year to support oil companies to make sure we can get that maximum extraction, we are also looking at what further we can do in the Budget.
“We are taking this action in order to support the extraction to the maximum possible economic ability from the North Sea.”
To Dame Anne, he added: “It’s far better we can sustain through these challenges in Aberdeen a strong industry because we have a UK Government, a whole of the UK Government balance sheet of which we can take decisions to support Aberdeen.”
At a one-day conference to address the crisis, held in Aberdeen this week, there were indications that tax breaks could be delivered in the Budget.
Among the attendees were First Minister Nicola Sturgeon and Scottish Secretary Alistair Carmichael, who joined industry chiefs and experts at the event.
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