Oral Answers to Questions

Anne Begg Excerpts

Thursday 5th February 2015 Commons Chamber

[Matthew Hancock]

Work of a collaborative tone to support maximum extraction from the North sea might be more appropriate considering some of the inaccuracies in the question. Not only did we take measures in last year’s autumn statement to support oil companies to ensure the maximum extraction, but we are looking at what further we can do in the Budget. The Secretary of State was in Aberdeen last month, and I will be in Aberdeen later today. We are taking this action to support the maximum possible extraction in terms of economic ability from the North sea.

[Dame Anne Begg (Aberdeen South) (Lab)]

I am glad the Minister will finally make his way to Aberdeen, and while he is there I hope he will have discussions with all aspects of the industry and the trade unions. I have two asks of him when he is in Aberdeen. One is to talk about what will happen to replace the jobs that have been lost—in one week, 600 jobs, and over the piece it is now into the thousands in one geographic area, if we can imagine that. I wonder what the reaction would be elsewhere. The second ask is to make sure that investment continues, even though we know the industry has to squeeze costs out of the supply chain, so that when the price of oil does pick up the industry has not been decimated.

[Matthew Hancock]

These are good questions and they were being discussed even before the oil price fell. It is very important that we come to the best possible answer, but I think the hon. Lady and I would agree that it is far better that we sustain a strong industry through these challenges in Aberdeen—which we can do because we have a whole-of-the-UK balance sheet off which we can take decisions to support Aberdeen.