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An Aberdeen business leader warns the UK must not follow New Zealand in “accelerating too quickly” from oil and gas.
Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, held the country up as an example of how not to transition from fossil fuels.
In Westminster, he highlighted the nation as one which had been on a “similar path” to the UK Labour government.
Prime Minister Sir Keir Starmer wants to ban all new licences in the North Sea.
Former New Zealand Prime Minister Jacinda Arden’s Labour-led government previously banned all new offshore oil and gas exploration in 2018 in world-leading legislation.
But last year Prime Minister Christopher Luxon’s centre-right government said it would pass laws to reverse the ban.
Speaking in August, he said severe energy shortages had led energy prices to spike.
But the country’s Green Party previously said a reliance on fossil fuels was behind the energy crisis and exacerbating energy security.
Mr Borthwick told MPs: “They accelerated too quickly.
“What that meant in New Zealand was power shortages, significantly increased consumer bills…and now a reversal of the bill which actually is encouraging domestic gas production again.”
‘Rushed end to licensing’
Jenny Stanning, OEUK’s external affairs director, who also took part in the Scottish Affairs session, said New Zealand was a “great example of a rushed end to licensing of oil and gas”.
She added that when licensing was reopened “operators did not want to bid for new licences because they had already exited the basin and taken their supply chain with them”.
After the session, Mr Borthwick met Energy Secretary Ed Miliband to discuss the energy transition and the role the north-east can play.
In a private meeting, the business chief warned policies of the UK Labour government, such as the windfall tax, risk jobs and investment in the North Sea.
He also reinforced growing concerns that a potential shift to zonal electricity pricing in the UK would jeopardise investment in offshore wind.
Mr Miliband pledged to make Aberdeen the “clean energy capital of Europe” during a visit to the north-last in October.
A UK Government spokesman said: “The government recognises oil and gas production in the North Sea will be with us for decades to come and is committed to managing the energy transition in a way that supports jobs in existing and future industries.
“We will work together with the sector and others to develop an approach, giving the sector and its investors the predictability they need to keep investing while ensuring that they will pay their fair share of tax on excess profits in the future.”
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