WEIR GIVES CAUTIOUS WELCOME TO OIL INITIATIVE

INDUSTRY REMAINS IMPORTANT TO ANGUS ECONOMY

 

 

Commenting on the UK Government’s announcement of tax relief for the West of Shetland Oil Field, SNP Energy Spokesperson, Angus MP Mike Weir MP, a member of the House of Commons Select Committee on Energy and Climate Change said:

 

“I had pressed for the first report of the committee to be on Oil and Gas so I am particularly pleased that the UK government have taken this decision after we recommended this change in our report.”

 

“The Oil and Gas industry remains vital to the economy of Angus. Many of my constituents work in the industry, not only in the North Sea but across the world.”

 

“There is as much oil and gas in our seas as has been extracted and it will continue to provide vital work and tax revenue for many years to come.”

 

 “The SNP have long called for fiscal changes to support and facilitate the sector - encouraging the development of this important natural resource and securing jobs in the long term.

 

“Any incentive that will ensure the strength of the oil and gas sector in Scotland is to be welcome.

 

Mr Weir, however, reiterated his call for more of the funds to be invested in the Scottish economy, by means of a Scottish Oil fund

 

“The money being invested in the West of Scotland basin is a fraction of the revenue flowing into Treasury coffers. Revenue figures for North Sea Oil contained in the Pre-Budget Report show Scotland’s oil will pump £50 billion into the UK Treasury over the next six years - while Scotland’s spending is squeezed by London.

 

“With greater fiscal autonomy, the Scottish Government could tailor the North Sea tax and regulatory framework to reflect the challenges experienced by operators in developing new fields and ensure that extraction levels are maximised. Devolving responsibility for the North Sea fiscal regime would also allow the Scottish Government to invest a share of the returns from oil and gas production into an oil fund.

 

“The existence of oil and gas off our shores puts us in an enviable position in some respects as we have a cushion during the transition to a low carbon economy, but it also presents a huge challenge given the huge numbers that work in the industry. We need to carefully manage that transition and ensure that the skills developed in the North Sea are retained and transferred into jobs in the new economy. We must ensure that carbon jobs are transformed into