North Sea Oil and Gas (Employment)

Debate between Eilidh Whiteford and John Robertson

Tuesday 20th January 2015 Westminster Hall

[John Robertson (Glasgow North West) (Lab)]

It is a pleasure to follow the hon. Member for West Aberdeenshire and Kincardine (Sir Robert Smith). I congratulate my hon. Friend the Member for Aberdeen North (Mr Doran) on securing this debate. It is perhaps a sign of the times that we have decent turnouts in debates only when a disaster or something bad has happened. I congratulate my hon. Friend on the work he is doing in his constituency, along with his fellow Members of Parliament in the area, and I thank the shadow Chancellor, who, along with the new leader of the Scottish Labour party, is in Aberdeen today to help to fight for jobs. I do not want to make a political point about it, but it would be a lot better if the Secretary of State for Scotland and the First Minister and various others were with them, putting up a political united front to help the industry and jobs.

According to Oil & Gas UK, about 450,000 jobs are associated with the oil and gas industry. The hon. Member for Banff and Buchan (Dr Whiteford) asked about jobs and the number of people who have been hit in the north-east, but only 202,000 of the jobs are actually in Scotland; the rest are outside Scotland. With 130,000 jobs in the Aberdeen area and all these other jobs, the whole country is suffering. It is not just one small area.

[Dr Whiteford]

I fully accept that many jobs throughout the UK depend on the oil and gas sector. The difference in the north-east of Scotland is the concentration of jobs. It is not just the direct oil jobs that depend on the oil and gas sector; it is not even just the jobs in the wider supply chain. It is the small shops, our retailers, our service providers, our construction companies—our whole economy is heavily dependent on oil and gas, so the ramifications of this go far further than simply just jobs in the oil and gas sector.

[John Robertson]

The hon. Lady is absolutely right, but a small company in my constituency that makes goods that are used up in Aberdeen also uses local shops and local people. If the jobs of 450,000 people in the United Kingdom are in danger, we can multiply that by goodness knows how many, but it would probably be millions of people who could be affected.

We know from previous times in the North sea that there will be losses. It has happened before and, sad to say, it will probably happen again, but the fact of the matter is that the North sea is in a particularly unusual position now. It is not what it was back in the ’80s, when we were getting oil and gas into the country. We are still getting oil and gas, but we are getting it from other places. We are not self-sufficient any more in these commodities; we now rely on other areas, so we have to fight to keep these jobs.

At a time when America has been diversifying into shale and is now the biggest seller of oil in the world, rather than the middle east, we have to look at where we are going in the future, but as the hon. Member for Banff and Buchan and my hon. Friend the Member for Aberdeen North said, we also have to look at skill shortages and how to increase our knowledge of how to work in these areas. Some of the experts I have talked to tell me that this depression in oil and gas will go on for at least two years. If it lasts that long, that might be fair enough and we could recover, but I have a horrible feeling it may last a lot longer than that. The price of oil is now down to less than $50 a barrel and the middle east countries are talking about continuing to supply oil and gas at the same rate, to ensure that the price remains low. That will have a knock-on effect for the North sea.

As my hon. Friend—we are on the same Select Committee—the Member for West Aberdeenshire and Kincardine said, oil and gas jobs have a knock-on effect for everyone. The rigs and everything else out in the North sea grow old and rust; they have to be maintained, but there will be no point in maintaining them if they do not get used. We have to find something like £40 billion over the next 30 or 40 years to clean up the North sea. That is not so bad if it is still in operation, but if the North sea is not in operation, we have to find that money from somewhere else.

My point is that we are talking about only the North sea at the moment. Some jobs in various companies have been lost already, but if we, the politicians of this nation, do not get our act together and do not work together to preserve jobs, not only will Aberdeen and the areas where the other 200,000-odd people are working suffer, but the whole nation will suffer. All the parties should get together and we should all fight for those jobs.

Oral Answers to Questions

Debate between Eilidh Whiteford and John Robertson

Wednesday 4th May 2011 Commons Chamber

[John Robertson (Glasgow North West) (Lab)]

1. What discussions he has had with the Secretary of State for Work and Pensions on the awarding of contracts for the Work programme in Scotland; and if he will make a statement.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

9. What weighting was given to the involvement of voluntary sector organisations in the assessment process of tenders of prime contractors for the Work programme in Scotland.

Scotland Bill

Debate between Eilidh Whiteford and John Robertson

Thursday 27th January 2011 Commons Chamber

[John Robertson]

My hon. Friend makes my point. That is why the amendment was a mistake, and I think that the Scottish nationalists did not really mean to go down that road. If they put that in deliberately, I am wrong and will admit as much. We have to fight them on that point.

Another aspect of the Bill that needs amendment is the provisions on energy. It is a reserved matter, but if we wished to build a nuclear power station in Scotland, the present Administration say that they would use the planning rules to stop it. By the middle of this decade, we might be short of electricity, so we have to make decisions now. In fact, we should have decided years ago—my party must take much of the responsibility for failing to do so—what we should do in relation to energy, and we cannot have a devolved Administration with the power to stop developments that are happening everywhere else. Each power station that is built is the result of billions of pounds of investment in jobs and future jobs after the station has been built. Some 9,000 jobs are created when a new nuclear power station is built. We should consider having legislation to make such planning issues a reserved matter, with the Secretary of State having the power to put forward reasons why such issues should go ahead.

[Dr Whiteford]

I wonder whether the hon. Gentleman’s constituents would like a nuclear power station in their backyard.

[John Robertson]

The hon. Lady has obviously not consulted people in areas where nuclear power stations have been built. They want new stations built, because of the investment that that brings for local infrastructure. If the lights were about to go out, people in Anniesland probably would want a new power station. They would like any power station allowing us to keep the lights on. We are digressing on to a subject that has nothing to do with the Bill, and I know that you would stop me talking about it if I continued, Mr Deputy Speaker. However, I hope that the hon. Lady gets my point.

Overall, I welcome the Bill. It has some good points. Fiscal powers have always been a wee bit of a problem. Why is that? Let us have a look: in the mid-1990s, the Conservative party did away with the two-tier system north of the border—we had local government in local and regional areas. Cities such as Glasgow did very well under the old Strathclyde regional council, but once we did away with it, the money started to drift away from the centre of where the work was being done. Under the present incumbent north of the border, business rates for Glasgow were taken into a central pool and spread over the rest of Scotland, so that, in effect, the business rates in a city that created wealth and employment for people living outside Glasgow did not pay for anything. Those people came into Glasgow and used all the facilities, roads and everything else that the city council now had to pay for. I cannot remember the exact figures for now, but of £180 million collected in business rates, Glasgow used to get back £100 million.

In effect, Glasgow—the biggest area for employment—was taking £80 million out of its city centre and giving it to the rest of Scotland. I believe that that was done out of political expediency. It was agreed before the last election that the money would be returned to Glasgow, but we have since seen even more attacks on the city from the Scottish Government. If we are to go down the fiscal road, we have to consider very carefully the political stance, the areas where the money should go and the areas of high deprivation. For deprivation, Glasgow rates higher than any other city in the United Kingdom. Six of Glasgow’s constituencies—in those days, it had nine—used to be among the top 10 worst in the UK, and certainly plenty of its now seven constituencies are still among them.

Yes, we do need help, and we do need money. What we do not need is money disappearing. The fiscal powers must be used very carefully to ensure that the money taken in goes to the areas that need it. The hon. Member for Milton Keynes South (Iain Stewart) talked about how we could do that. If the Scottish Government are to have such powers, however, I want to be able to know where the money is going. Why am I saying this? There has to be an audit trail if the UK Government are to give to the Scottish Parliament money and the means to collect taxes. For example, if this Parliament is to give the Scottish Parliament Barnett formula increases—my right hon. Friend the Member for Coatbridge, Chryston and Bellshill (Mr Clarke) mentioned this earlier—of about £34 million for disabled children, but that money does not go there, I want the ability to ask where it went. If I were told, “It just went into the budget, and we do not know exactly how it was spent,” that would be fine, as I could use it for political purposes. However, I want to know where the money is, and I want the House to be able to audit every penny that comes from the UK taxpayer.