SNP MP Drew Hendry has called on the UK Government to act to
secure the future of North Sea oil and gas, following the
publication of a report by an industry organisation.
The report from Oil and Gas UK outlined the sector’s great
potential, noting that six major projects have gained approval in
the first eight months of the year and acknowledging the North
Sea is leading the way in both regulatory and fiscal planning.
However, following media reports questioning the fiscal regime,
there is great concern across the sector that may hike taxes on the sector
in the UK Government’s Budget which could prove damaging to the
oil and gas sector at a time when the its future success depends
on its competitiveness.
Commenting, SNP Business, Energy and Industrial Strategy
Spokesperson at Westminster said:
"This report from Oil and Gas UK shows the sector’s strength in
Scotland, with production on track to be 20% higher than in 2014,
investor confidence returning and revenues strong.
“But despite raising hundreds of millions of pounds for the UK
Treasury, successive Governments at Westminster have failed to
provide adequate support for the industry and the families that
depend on it.
“The UK Government must not undermine the North Sea by using it
as a cash cow in the Budget and must instead invest to keep the
sector competitive, as suggested in this report.
“The SNP have long demanded a more stable fiscal regime for the
oil and gas industry and in Government at Holyrood have invested
£12.5 million innovation fund to help the industry to seek new
opportunities.
“If the UK Government are to be taken seriously on oil and gas,
they must now step up and back the sector - not just exploit
it.”
See: "Investment conditions key
as industry at crossroads" says new Oil and Gas UK report (under
embargo)
