Grangemouth Refinery

Lord Bruce of Bennachie Excerpts

Wednesday 23rd October 2013 Commons Chamber

[Mr Davey]

I thank the right hon. Lady for her questions. Her first was about the recent statement by the Finance Secretary in the Scottish Government that they were looking for potential buyers. I have spoken to Mr Swinney about that, and we in the Westminster Government certainly stand ready to assist. It is a devolved responsibility, but my right hon. Friends the Secretary of State for Scotland and the Secretary of State for Business, Innovation and Skills will be making all efforts, through Departments and UK Trade & Investment, to assist should we need a buyer for the petrochemicals plant.

The right hon. Lady asked whether INEOS should have got around the table. Throughout the dispute, I have personally been asking both sides to get around the table. At one stage, INEOS was not prepared to go to ACAS. I personally spoke to INEOS and persuaded it to go to ACAS, which it then did, and I regret that those ACAS talks were not successful at avoiding the situation that we have arrived at today.

The right hon. Lady asked about the contingency plans that we put in place. We have been working for a significant time to ensure that there were contingency plans, should the disruption become any worse. As she knows, the refinery is currently closed down, but fuel is coming through the refinery—refined fuel is being loaded from ships into the plant and then on to racks to go into tankers. That is a part of our contingency plans, but they are much more detailed and granular than that. They go into minute detail about how we would ensure that fuel—heating oil, road fuel and aviation fuel—is supplied throughout Scotland, which is why I can say confidently that the people of Scotland may be reassured that we will keep fuel going through that economy.

Finally, the right hon. Lady asked about the review of refineries, and we expect to have that—probably—by the end of the year. It is very detailed and has been under way for some time. She will understand that there has been a big switch in the way in which motorists use fuel—away from petrol to diesel—but most refineries in the UK produce petrol rather than diesel. We import a huge amount of diesel, and that is one of a number of issues being considered in that review.

[Sir Malcolm Bruce (Gordon) (LD)]

I welcome my right hon. Friend’s statement. The dispute has been characterised by intransigence on both sides and it is regrettable that it has resulted in this decision. I support the fact that the Governments who have jurisdiction in Scotland—the Scottish Government and the UK Government—are working together to ensure that we get a solution. What assurances can my right hon. Friend give about any guarantees that we can secure for the future of the Scottish and the UK economies, which are threatened by the present situation, and not least for the future of North sea oil production?

[Mr Davey]

I am grateful to my right hon. Friend for his question. The Scottish Government and the Westminster Government have been working extremely closely and I am grateful for such work. The partnership has been successful and constructive, and we will need to continue to work together in the days and weeks ahead for the people of Scotland—and, indeed, for the people of the UK, because as he suggested, this has UK-wide implications. Beyond that, I remind the House that Her Majesty’s Treasury has been working with INEOS to look at potential infrastructure guarantees, should INEOS make a decision to invest in the petrochemicals plant. My right hon. Friend the Chancellor of the Exchequer has developed innovative infrastructure guarantees and we stand ready to assist with that. I know that the Scottish Government have plans to assist as well.