Chamber
Meeting of the Parliament 09 January 2013
09 Jan 2013 · S4 · Meeting of the Parliament
Item of business
Oil and Gas Sector
Will the minister say what the current rate of UK corporation tax is on oil and gas and how much revenue would be lost if a 10 per cent rate were applied?
In the same item of business
The Deputy Presiding Officer (Elaine Smith)
Lab
The next item of business is a debate on motion S4M-05310, in the name of Fergus Ewing, on oil and gas—the success and opportunities. The debate is oversubsc...
The Minister for Energy, Enterprise and Tourism (Fergus Ewing)
SNP
I welcome the opportunity to pay tribute to and recognise the success of Scotland’s oil and gas sector. The sector is one of Scotland’s biggest economic succ...
Neil Findlay (Lothian) (Lab)
Lab
Will the minister say what the current rate of UK corporation tax is on oil and gas and how much revenue would be lost if a 10 per cent rate were applied?
Fergus Ewing
SNP
I do not look at the figures in that way. I will deal with the tax issue in due course.Since large-scale production commenced in the North Sea in the 1970s, ...
Patrick Harvie (Glasgow) (Green)
Green
Will the minister take an intervention?
Fergus Ewing
SNP
Not just yet.Linking CCS with enhanced oil recovery could accelerate its development and unlock 3 billion barrels of hard-to-reach oil—worth £190 billion—fro...
Patrick Harvie
Green
I am sure that the minister will accept that even if CCS technology can be brought to maturity, it has no effective role to play in relation to the carbon em...
Fergus Ewing
SNP
No, I do not agree with that. It will allow huge reserves of oil to be extracted, which will be hugely beneficial. Frankly, I would have thought that the Gre...
Neil Findlay
Lab
Will the minister give way?
Fergus Ewing
SNP
I do not think so—I have too much to cover.We simply cannot afford to lose revenue on that scale, nor can we afford to lose the tax revenues, which I have de...
The Deputy Presiding Officer
Lab
Minister, you really must draw your remarks to a close.
Fergus Ewing
SNP
Ah, well. All I can say is that that figure must increase.I have not talked about skills, but we are working on the issue as we move towards the announcement...
The Deputy Presiding Officer
Lab
I am afraid that I must reiterate that we are very tight for time. I call Rhoda Grant to speak to and move amendment S4M-05310.2 in no more than 10 minutes.1...
Rhoda Grant (Highlands and Islands) (Lab)
Lab
I pay tribute to the workers who make the oil and gas industry a success. Many of them work onshore in back-up and planning roles but, given the real persona...
Fergus Ewing
SNP
I am happy to assure Rhoda Grant that, as far as decommissioning is concerned, Scotland will honour her responsibilities. On taxation, we recognise that stab...
Rhoda Grant
Lab
That proves the point about why we need stability and why the industry needs to know what the fiscal regime will be, should Scotland become independent of th...
Tavish Scott (Shetland Islands) (LD)
LD
I begin by agreeing with the broad tenor of the minister’s remarks and thanking Rhoda Grant for her observations on decommissioning, in particular. I agree w...
Patrick Harvie (Glasgow) (Green)
Green
I like to begin with a note of consensus when I can—Alex Johnstone looks sceptical already.I agree strongly with all three members who have spoken on the poi...
Mark McDonald (North East Scotland) (SNP)
SNP
I know that Mr Harvie and I have different opinions on economic growth, but what would be his message to the many constituents whom I represent whose livelih...
Patrick Harvie
Green
My argument would be one of transition, not about ending an industry and putting nothing in its place. It would be about transitioning to the renewables indu...
The Deputy Presiding Officer (John Scott)
Con
You must close, please.
Patrick Harvie
Green
The building of a Scottish public renewables company is the best priority that we could set. What a legacy to leave for future generations.I move amendment S...
Mary Scanlon (Highlands and Islands) (Con)
Con
I thank the minister, Fergus Ewing, for his measured approach and commend him for his positive and constructive partnership with the Westminster Government. ...
Stewart Stevenson (Banffshire and Buchan Coast) (SNP)
SNP
Yes, it is.
Mary Scanlon
Con
That is the sort of misinformation that the people of Scotland do not want in the lead-up to the referendum.
Mike MacKenzie (Highlands and Islands) (SNP)
SNP
Will the member give way?
The Deputy Presiding Officer
Con
The member is closing.
Mary Scanlon
Con
If Mr Stevenson would be quiet, I would find it easier to concentrate on my speech, Presiding Officer.
The Deputy Presiding Officer
Con
I am afraid that you must close, please.
Mary Scanlon
Con
In the lead-up to the referendum, it is worth noting that oil and gas revenues account for 0.7 per cent of UK gross domestic product, compared to 17.7 per ce...