North Sea Oil and Gas (Employment)

Gary Streeter Excerpts

Tuesday 20th January 2015 Westminster Hall

[Mr Doran]

I think my hon. Friend is talking about the sort of work on offshore that I mentioned at the beginning of my speech. Those who are self-employed—probably with their own companies where they are often the sole employee—are the first to be removed. I am concerned to hear that people operating in safety are part of that process, and we should all be concerned by that.

For offshore oil workers, working on offshore platforms is dangerous, but the dangers do not stop on the platform. The only realistic form of transport offshore, because of the distances involved, the difficulty of access to platforms and the hostile weather conditions, is by helicopter. In the UK sector of the North sea, there have been 13 helicopter-related incidents, in which 118 people have died. The most recent one, just 17 months ago, saw four deaths. For most of the history of the North sea oil and gas industry, helicopter transport companies have been treated in exactly the same way as other contractors and subjected to often severe cuts in contract costs. That might suit the oil industry accountants, but it makes no sense to companies that have to keep helicopters flying safely. I hope that the oil industry is taking a much more cautious and sensible approach this time round, and that the Government and the regulators will strictly monitor how health and safety standards are maintained on both sides of the industry.

There are difficult times ahead, but they need not be as damaging as the downturn in the 1980s. The industry has allowed costs to spiral out of control and needs to address the problems it has created. Everyone—the industry and the UK and Scottish Governments—should be focused on maintaining employment, jobs and skills. The economic climate will change, and it is important that the oil and gas industry is capable of getting into gear as quickly and safely as possible when that happens. A key player will be the Chancellor, and I urge him to consider seriously further tax reliefs, which, in the interests of the taxpayer and the industry, should be focused on maintaining employment, training in skills, research and development and investment that will ensure the future success of the industry.

[Mr Gary Streeter (in the Chair)]

Colleagues, the winding-up speeches will begin at 3.40 pm. Six colleagues are seeking to catch my eye, and we have 50 minutes. By my calculations, about eight and a half minutes each should do the trick.