Meeting of the Parliament 08 September 2015
I always pay careful attention to what Sir Ian Wood says. The Scottish Government and the UK Government should pay attention to some of his recommendations and his recent comments, because he is saying that oil production is unsustainable below $50 a barrel.
I remind Mike MacKenzie that the SNP told us that the economic projections for oil were for $110 a barrel. That figure has recently been revised down to $70 a barrel. The truth is that Brent crude fell to $42 a barrel last week. I worry about the sustainability of our oil economy. This is not some debating point about the SNP’s desire for full fiscal autonomy; this has real consequences. There have been more than 5,000 job losses, and 35,000 job losses are predicted over the next three years. This touches every constituency in Scotland but, in Aberdeen and Aberdeenshire, the impact has been severe. The unemployment rate is going up; the youth unemployment rate is going up; business starts are falling by a fifth; and 91 per cent of businesses say that they have been adversely affected.