Meeting of the Parliament 20 January 2016
The member asks several questions. If all of us do not support the work that companies in Scotland do right now in 2016 and for the foreseeable future, we will not see companies go into transition; we will see companies go into administration, because that is what will happen if the Green recipe is adopted.
The low oil price shows no sign of abating. Many people believe that the oil price will remain lower for longer, although most people believe that it will recover in due course. The question is what can be done. I am wholly convinced that political point scoring is not what is wanted. What the people who work in the industry and the people who are facing redundancy want from us—and what is required from us all—is a variety of different support.
First, they want us to support the work that they do in a clear and unqualified way, to value it and to recognise that it is of the highest order.
Secondly, they want us to recognise that the industry faces the primary challenge of reducing costs and increasing efficiency. The industry recognises that—if members ask any company, it will say so. It is necessary to heed and learn from the gains that have been made in the supply chain. Alfred Campbell of the oil and gas industry leadership group, which we co-chair, profoundly believes that the supply chain has an enormous amount to contribute but that it has perhaps not been properly heeded in the past. Progress has been made in cost reduction. The challenge is to make progress without jeopardising safety, which must remain paramount.
Thirdly, at the oil and gas day in London last December, which I attended with the industry, the Oil and Gas Authority and the UK Government, I asked specifically that the workforce be listened to and learned from. Nexen adopted the practice of going out to members of the workforce and asking what they thought could be done to improve matters. It came back with many measures, techniques and changes to working practices, many of which were adopted. They increased wrench time—that is, productive time—in a shift offshore enormously. By listening to the workforce, we can help to improve things together. The Scottish Trades Union Congress’s role is invaluable there.
Fourthly, the Scottish Government must continue to play its part. Last January, the First Minister announced the creation of the energy jobs task force. I could talk in detail about that work, but we are determined to carry on with it and ensure that it is supplemented, where necessary, in every possible way to bring practical benefit to individuals who face redundancy.