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Chamber

Meeting of the Parliament 05 June 2024

05 Jun 2024 · S6 · Meeting of the Parliament
Item of business
Oil and Gas Industry
Lumsden, Douglas Con North East Scotland Watch on SPTV

I am sure that we will hear from the minister later.

In fact, when asked, those who responded to the survey went even further. They were asked to rate the impact of the Scottish Government’s energy strategy on the energy sector and investor confidence, and 75 per cent of those who responded thought that the strategy had a very negative impact on the sector. That record has got worse and worse over the past year. It is clear that the SNP has lost the confidence of the north-east and the business community.

The report asked people in the industry how they viewed the Scottish Government’s just transition fund but, first, it asked whether they had even heard of it. A quarter had not; that is not a great endorsement of the Scottish Government’s record in that area. Fifty per cent said that they were not aware of how the fund could benefit their business, and 40 per cent thought that it was not important to helping Scotland achieve net zero.

When asked which party has the best policies for energy security, the Scottish Conservatives scored highest of all the parties.

The First Minister stood up on Monday night and claimed to work closely with the oil and gas industry. What a joke. John Swinney is completely out of touch with the industry and with the people of the north-east.

I make no apologies for sounding angry, because I am angry. I am angry on behalf of those hard-working individuals throughout the north-east who depend on the oil and gas industry for their livelihoods. I am angry on behalf of the companies that are being sent decrees from on high rather than being listened to. I am angry on behalf of all of us who represent the constituencies that are being ignored, sidelined and preached to by those who know nothing about the people who live and work there and know nothing about the energy industry.

One hundred days to save 100,000 jobs is a stark message that we should all be taking seriously. We should all be doing more to protect our communities. We are working with our friends and colleagues to do just that while Labour and the SNP look for ways to destroy the industry for good.

We will likely hear a lot from other parties today about moving jobs from the oil and gas sector into renewables. We have the potential but, without a proper plan, it is for the birds. We need to protect the supply chain that will be vital for the energy transition.

In the past nine years, Scotland’s low-carbon and renewables sector workforce has risen from 23,000 to just under 26,000, according to Aberdeen and Grampian Chamber of Commerce—far less than what Alex Salmond promised. If that trend continues and the SNP continues to turn its back on the oil and gas industry, it will leave tens of thousands of people out of work, and tens of thousands of families right across Scotland facing economic hardship.

Many companies that are investing in opportunities such as floating offshore wind, carbon capture and hydrogen will require the cash flow from a stable and predictable oil and gas business to fund those opportunities. That is why we support the industry—without it, our path towards net zero will be so much harder.

Will the cabinet secretary today commit to what John Swinney found so difficult to commit to on Monday night and remove this backward-facing, science-denying and industry-destroying presumption against new oil and gas? It is a stupid policy that is harming our energy transition.

I move,

That the Parliament recognises the invaluable contribution that oil and gas makes to Scotland, with the industry supporting 94,000 jobs and providing over £10 billion in revenue in 2022-23; notes with concern that the Scottish Government has a presumption against oil and gas, whilst the Labour Party has said it will not allow any new licences, something that industry experts have said could lead to thousands of job losses; welcomes the provisions of the Offshore Petroleum Licensing Bill, which, when passed, will increase investor confidence in the oil and gas sector and reduce the UK’s dependence on higher-emission imports from overseas; welcomes the approval of the Rosebank oil field and awaits a similar decision on the Cambo oil field; appreciates that oil and gas will still be a vital component of the UK’s energy mix in the future and that it is more environmentally friendly for the country to produce its own oil and gas than import it from abroad, and notes with concern the extremist positions taken by some activists, who are opposed to the very existence of a North Sea oil and gas sector, and condemns their actions, which are irresponsible, damaging and disruptive.

16:36  

In the same item of business

The Presiding Officer (Alison Johnstone) NPA
The next item of business is a debate on motion S6M-13482, in the name of Douglas Lumsden, on recognising the contribution of Scotland’s oil and gas industry...
Douglas Lumsden (North East Scotland) (Con) Con
During the most recent debate on oil and gas in the chamber, I stood here and said that the Scottish Conservatives were the only party that is committed to e...
Daniel Johnson (Edinburgh Southern) (Lab) Lab
Will the member take an intervention?
Douglas Lumsden Con
Is there any time, Presiding Officer?
The Presiding Officer NPA
There is the time that has been allocated; we have no extra time.
Douglas Lumsden Con
I am sorry, Mr Johnson. I will continue my speech. I want to spend some time today in considering the recent report from the Aberdeen and Grampian Chamber o...
Kevin Stewart (Aberdeen Central) (SNP) SNP
Will Mr Lumsden take an intervention on that point?
Douglas Lumsden Con
I am sure that we will hear from Mr Stewart later. There is also huge distrust that the industry will be given the opportunity to expand, because of a backw...
The Minister for Climate Action (Gillian Martin) SNP
Will the member take an intervention?
Douglas Lumsden Con
We will hear from you later as well.
The Presiding Officer NPA
Mr Lumsden, please speak through the chair.
Douglas Lumsden Con
I apologise, Presiding Officer. Indeed, the report shows that the political environment is now the biggest concern for those who are involved in the industr...
Gillian Martin SNP
Will Mr Lumsden take an intervention on that very point?
Douglas Lumsden Con
I am sure that we will hear from the minister later. In fact, when asked, those who responded to the survey went even further. They were asked to rate the i...
The Cabinet Secretary for Net Zero and Energy (Màiri McAllan) SNP
I begin this important debate on points of indisputable fact. First, Scotland’s highly skilled oil and gas workforce is hugely important to us now and will c...
Douglas Lumsden Con
Will the cabinet secretary take an intervention?
Màiri McAllan SNP
Absolutely not, when you did not take a single one.
The Presiding Officer NPA
Through the chair, always.
Màiri McAllan SNP
Apologies. Those indisputable facts combined mean that a serious, responsible Government—one that cares deeply about Scotland’s offshore energy industries, ...
Sarah Boyack (Lothian) (Lab) Lab
Last year, the cabinet secretary said that she was consulting on a more robust climate compatibility checkpoint, including for oil and gas fields that are al...
Màiri McAllan SNP
I am very happy to do so. Labour’s position, whether it has intended this or not, is an outright ban. The approach that the SNP has always articulated and wh...
Patrick Harvie (Glasgow) (Green) Green
Will the cabinet secretary give way?
Màiri McAllan SNP
I am afraid that I do not have time. Our position puts us squarely between the London parties. On the one hand, we have the Tories, who are wilfully ignorin...
Daniel Johnson (Edinburgh Southern) (Lab) Lab
Will the cabinet secretary give way?
Màiri McAllan SNP
I will not. I do not have time, I am afraid. However, we object to the London parties extending and increasing that levy, focusing disproportionately on Sco...
The Presiding Officer NPA
I must ask you to conclude at this point, cabinet secretary.
Màiri McAllan SNP
I will conclude by saying that we know that the task is difficult, but the opportunity and the prize are enormous, and we are already working to build the tr...
Sarah Boyack (Lothian) (Lab) Lab
This debate should be about how we ensure that we have the energy to power our homes and industry, how we deliver climate leadership, how we secure the econo...
Gillian Martin SNP
Will the member give way?
Sarah Boyack Lab
Not just now, thank you. Last month, there was another failed SNP deadline, with no draft just transition plan for Grangemouth being published despite a com...