North Sea Oil and Gas Debate
Full Debate: Read Full DebateMary Glindon
Main Page: Mary Glindon (Labour - Newcastle upon Tyne East and Wallsend)Department Debates - View all Mary Glindon's debates with the Department for Business and Trade
(1 month, 1 week ago)
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Harriet Cross (Gordon and Buchan) (Con)
It is wonderful to speak under your chairmanship, Ms Furniss. I thank my hon. Friend the Member for Bromsgrove (Bradley Thomas) for securing this debate, and I welcome my great friend—now my hon. Friend—the Member for Aberdeen South (Douglas Lumsden) to this place; he has been by my side pretty much from the day I joined the party, and it is fantastic to finally have him here alongside us, particularly in this debate.
I have spoken a lot about oil and gas, particularly North sea oil and gas—UK continental shelf oil and gas—in this place, because it is so important. We cannot overestimate just how important it is to Aberdeen, Aberdeenshire and north-east Scotland, and the by-election result in Aberdeen South is a testament to that. We are not naive; we do not think that 50% of Aberdeen South voters suddenly have a huge love of the Conservative party—although I am sure they will eventually—but this was a referendum on oil and gas, and my hon. Friend the Member for Aberdeen South put the point across perfectly that we must protect the sector and its jobs, the tax and investment that it returns, and our energy security.
I have been knocking on doors in Aberdeen over the last four to five weeks, and the number of people I spoke to who have lost their job is tragic. They are very willing to talk about the job they had and the struggle they now have of finding a new one. Many of them are looking to move away because there is not a replacement job in Aberdeen. Many of them have young children, who will also have to move away. That is ruining friendships, it is ruining the future skills of Aberdeen, and it is changing the demographics of our region.
This does not have to happen. We do not have to run down the North sea as quickly as we are. The Government do not have to ban new licences—that is a choice. The Government do not have to keep the energy profits levy—that is a choice. The Government do not have to keep delaying on Rosebank and Jackdaw—that is also a choice, and it is a choice that they keep making the wrong decision on.
Once we get a new Prime Minister and undoubtedly, we hope, a new Energy Secretary, those choices will be different, because the public want the position to change: three quarters of the public support North sea drilling and North sea production if it means we will import less. The stats show that if we maximise production from the North sea, we could be using only 6% liquefied natural gas by the mid-2030s. On the current trajectory, we will be using 46% LNG. Again, that is a choice that this Government are making. LNG is more carbon-intensive, so it is worse for reaching our climate goals; it costs a huge amount of money; and it is supporting foreign jobs, not UK jobs. Again, those are all choices that the Government are making. It is up to them to change direction. I am delighted by, and very grateful for, the number of Labour Back Benchers who are here today and who tell me in private that they want the Government to change their position, because they recognise that there is a pragmatic path and we need to be on it.
The impact is not only directly on jobs in the oil and gas sector. I have met hauliers and people who work in other industries in my Gordon and Buchan constituency, such as cafés and other hospitality businesses on the high street, who have seen footfall and trade decrease because of the decrease in the oil and gas sector. This impacts everybody, and not just in the north-east of Scotland.
Yesterday we had the AGM of the all-party parliamentary group for the British offshore energy industry, of which the hon. Lady is a member, and I hope that the hon. Member for Aberdeen South (Douglas Lumsden) will join us on it. Does she agree that the effect of these job losses is nationwide—not just in Scotland but across the whole of the UK, including the north-east—and the people of Aberdeen have amplified how people feel across the country? Does she also agree that if the very biggest companies pull out of the North sea altogether, as they are looking at doing, that would have an even more devastating effect?
Harriet Cross
The hon. Member—I call her a friend—is a huge champion for this sector and her constituents, and she is completely correct: these job losses impact everybody and all our constituencies, so we should all care about what is happening to the sector.
This is not just about the big producers or operators; it is about the supply chain, too. Companies in the supply chain are UK-wide, and they must be protected UK-wide. They are also vital for the roll-out of other renewable technologies and nuclear. Without the supply chain, our future energy security will be so much poorer —we will have less energy security.
Adura has submitted the additional information that is needed on Rosebank and Jackdaw. I appreciate that the Minister will probably say something about “quasi-judicial”, but can he make the commitment that there will not be any unnecessary delay? The decision does not have to be delayed for a new Prime Minister or a new Energy Secretary. These companies and the industry need confidence; they need to know that the projects will go ahead as soon as possible.
The Government’s decision to write the ban on new licences into law via the energy independence Bill is an absolute kick for the sector. They had already said they would ban new licences, but the decision to put that ban into law drains any confidence that investors might have in the sector. Will the Minister think again and not include that awful policy in the Bill?