Energy (Oil and Gas) Profits Levy Bill

Debate between David Duguid and Stephen Flynn

Committee stage
Monday 11th July 2022 Commons Chamber

[David Duguid (Banff and Buchan) (Con)]

I rise in response to the hon. Member for Kilmarnock and Loudoun (Alan Brown). I declare an interest: I used to work for BP. I worked in the oil and gas industry for 25 years. I worked for BP in the North sea in this country, and in Angola, Venezuela and a range of different places. I worked for other companies in other countries as well. It is true that these companies have made their bread and butter in this country, and cut their teeth in the North sea, particularly from a safety point of view. The hon. Member for Aberdeen South (Stephen Flynn) mentioned Piper Alpha, which led to our having one of the highest regulatory regimes on the planet. It is not true to say that companies abandon that when they work elsewhere; it does make it a lot more difficult for them to work in those environments, but it does not stop them.

May I take the opportunity to totally agree with what my hon. Friend was saying before? This legislation, for all its flaws, compared with what Labour is proposing—

[Stephen Flynn]

Will the hon. Member give way?

--- Later in debate ---

[Stephen Flynn]

Repetition is of course a convention of this House, but I am not much for many of the conventions of this House, so I do not intend to say much more than I did earlier about the Bill in general. I will just reflect very briefly on the amendments in my name and the names of my hon. Friends.

Amendment 9 relates directly to the electrification of North sea assets. We have heard comforting words about that from two Ministers now. I am sure the Minister for Energy, Clean Growth and Climate Change, now sitting beside the Financial Secretary to the Treasury, would agree that it will be in guidance that the electrification of assets will be able to get the taxation incentives. We cannot escape the fact that Ministers come and go, as we have seen so clearly in this place over the course of recent times, but what industry needs in relation to this issue is certainty. The best way—the only way—to provide certainty on the electrification of grids is to put that on the face of the Bill.

I agree with the hon. Member for South Thanet (Craig Mackinlay) on one point he made: it is deeply disappointing that there is not additional scope for the wider renewable sector to get these incentives. If the Government were serious about combating climate change and reaching their net zero ambitions, they would have extended those incentives to that industry.

That takes me on to new clause 6, again in my name and those of my hon. Friends, which aptly relates to net zero. The Government have rightly promoted, and will continue to promote, climate compatibility checks. I think we all in this place agree about those. What we need to be clear about, however, is the implications of this Bill for reaching net zero. The easiest, indeed the obvious, way to do that is to ensure that those climate compatibility environmental checks take place in relation to any investments. I thought that would be a very straightforward thing for the Government to agree with, and I hope they will do so.

Finally, in relation to new clause 7, I have teased this argument out on a couple of occasions in exchanges with Ministers: we know there is going to be a sunset clause on this levy, to end it in a couple of years’ time. However, the phrase “normal oil and gas prices” keeps being used again and again. We heard inferences from the former Chancellor that somewhere around $60 to $70 a barrel was normal. I just did a very quick calculation of prices. Between 2015 and 2021 the price was $56 a barrel, but between 2010 and 2015 it was double that, at $101.4 a barrel. I again ask the Minister—[Interruption.] Indeed, oil and gas is a good argument for independence.

[David Duguid]

Will the hon. Gentleman give way?

[Stephen Flynn]

I will not give way to the hon. Gentleman. That has nothing to do with this Committee stage, and I would hate to get diverted, as some others did earlier.

What we and the industry need to be clear about is what price the Government regard as normal. If we are to have serious legislation, we need serious answers to the most basic of questions.

Oil and Gas Producers: Windfall Tax

Debate between David Duguid and Stephen Flynn

Tuesday 1st February 2022 Commons Chamber

[Stephen Flynn]

A just transition is at the forefront of my thoughts almost every day, because I see first-hand the impact of the decisions taken in this place on oil and gas. My own constituency contributes £14.4 billion of gross value added to the economy. How many other people’s constituencies can say that? However, I am aware of the poverty that exists notwithstanding that.

We need to see a just transition, which is why we have tabled our amendment today, but I must repeat that I have concerns about Labour’s proposal. Without their detailing what they believe the impact on investment would be and what the subsequent impact of that would be on workers, it is a proposal I simply find difficult to support in its current form.

That is not to say that the Government should be let off the hook, because the just transition, as has been said, is incredibly important. It is important to my constituents and to the constituents of Government Members, because there will be a change in the coming years and a transition to net zero. From the Scottish Government, we have seen a £500 million just transition fund put in place, with £80 million put towards the Acorn project, which the UK Government continue to drag their heels over supporting.

[David Duguid (Banff and Buchan) (Con)]

I welcome many of the comments the hon. Gentleman makes, representing as he does the southern half of Aberdeen, the oil capital of Europe, but he also refers to the so-called just transition fund of £500 million and the £80 million that has been announced as being on the table for the Acorn project. Does he or the SNP have any detail yet on precisely what any of that money would be spent on?

[Stephen Flynn]

Yes, it is £580 million more than the UK Government are putting in place. That does not start and stop with—[Interruption.] I am sure the hon. Gentleman can make his contribution in his own way later on. There is also the £62 million energy transition fund and the £30 million that has just been given to Aberdeen’s south harbour, specifically to ensure that we can meet our net zero future.

Notwithstanding the just transition and the windfall tax, what irks me more than anything is the lack of an oil fund in this country, mentioned by the hon. Member for Warwick and Leamington (Matt Western) and by my hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown). If we look across the North sea at Norway, £1 trillion is sitting in a bank account because the Norwegians invested in their future. With that money, they are able to shield their public from the shocks that all our constituents face at this moment in time.

Why did Norway do that and this place not do that? Why did this place choose to squander Scotland’s wealth? It is simply unforgivable. When I have discussions with my constituents about the challenges they face, I simply hope the Government will not repeat the mistakes of the past.

Oral Answers to Questions

Debate between David Duguid and Stephen Flynn

Wednesday 23rd June 2021 Commons Chamber

[David Duguid]

My hon. Friend and I share a lot in common, not least the regular use of Aberdeen airport, to which he refers, and the fact that we both have wives who were not born in this country and unfortunately have not been able to visit their families for the last year and a half. That aside, on the specific issue about easyJet and the flight to Manchester, it has made a commercial decision, announced today, in response to the Scottish Government’s decision to regulate to prohibit travel to Manchester. The Scottish Government decision has been widely criticised as disproportionate; clearly Scottish Government Ministers will be keeping travel regulations under constant review, and there are calls for this regulation in particular to be reviewed in closer consultation with all interested parties. The Scotland Office would be happy to facilitate that, if helpful.

[Stephen Flynn (Aberdeen South) (SNP)]

UK Government Ministers talk about a single approach, but, if we cast our minds back just a couple of months ago, travellers from India into Scotland faced managed hotel quarantine whereas the same travellers into England did not, and the consequences of that inaction are clear for all to see with the delta variant now dominant right across the UK. So I ask the Minister, does he regret the damage caused to Scotland’s covid-19 recovery as a result of his Government’s failure to follow Scotland’s lead?

[David Duguid]

What I regret, particularly considering the hon. Gentleman’s constituency, is that the Scottish Government did not, despite the repeated calls from the oil and gas industry, from MSPs, and from MPs who, like him, represent constituencies in the north-east of Scotland, give the same allowance for oil and gas workers from amber list countries that was allowed to them by the rest of the UK.

Oral Answers to Questions

Debate between David Duguid and Stephen Flynn

Wednesday 9th December 2020 Commons Chamber

[David Duguid]

I certainly agree with my hon. Friend, and I congratulate him and the all-party parliamentary group on hydrogen, which he chairs, on their work advancing the hydrogen agenda. I also congratulate SGN on achieving up to £18 million from Ofgem’s network innovation competition to support development of a hydrogen demonstration network in Levenmouth, bringing carbon-free energy to around 300 homes from late 2022.

[Stephen Flynn (Aberdeen South) (SNP)]

What recent discussions he has had with Cabinet colleagues on the effect of the United Kingdom Internal Market Bill on Scotland.