North Sea Oil and Gas (Employment)

Mary Glindon Excerpts

Tuesday 20th January 2015 Westminster Hall

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

It is a pleasure to serve under your chairmanship once more, Mr Streeter. I draw Members’ attention to my entry in the Register of Members’ Financial Interests, as I believe in clarity. I received some hospitality from ExxonMobil last year.

I have a strong constituency interest, because not only is FMC Technologies a major employer in my constituency, but in the neighbouring seat, represented so ably by my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown), is Mossmorran. I want primarily to talk briefly about them. However, I want to pick up on the point ably made by my hon. Friend the Member for Dumfries and Galloway (Mr Brown): Members may be interested in the fact that today the executive director of the International Energy Agency, Maria van der Hoeven, has been quoted as saying that there can be no expectation of a quick fix on oil prices—that the situation we face is a long-term one. Therefore, my hon. Friend the Member for Aberdeen North (Mr Doran) is right to draw the conclusion that we need to move away from Governments blaming each other and work together to achieve a sustainable future for the industry, across the United Kingdom and more specifically for interests in the North sea.

I have mentioned two companies working in West Fife and the points made by my hon. Friend the Member for Glasgow North West (John Robertson) are right: there is, rightly, a great deal of focus on the north-east of Scotland, but we should not forget that across Scotland and the United Kingdom the North sea industries are significant employers. To take FMC Technologies as an example, it employs 1,000 people across Scotland, a couple of hundred of whom are based at two sites in Dunfermline in my constituency. It has going on for 250,000 square feet of fabrication plant and engineering facilities in Dunfermline and it supplies the North sea market, among many others. It is located in West Fife because of the ready access it provides through the port facilities at Forth Ports and elsewhere, so the company can send around the world.

The company is fortunate in that it has a diverse market share and operates right around the world, so the North sea is not its critical life-support system, but without doubt it will be facing challenging times in the coming weeks, and I will seek to provide whatever assistance I can. However, my hon. Friend the Member for Glasgow North West was absolutely right to remember the knock-on effect that such industries can have in the communities where they are based.

[Mrs Mary Glindon (North Tyneside) (Lab)]

Specifically on that point, which has been made by others, that is also the case for places such as Tyneside and the north-east of England, where there are fabrication companies such as OGN. It is currently providing 2,000 jobs, but they will dry up next year. There is bound to be a massive knock-on effect across the whole of Britain. Our region has the highest unemployment rate and cannot afford to lose more jobs. Does my hon. Friend agree?

[Thomas Docherty]

My hon. Friend is absolutely right to highlight the diversification of interests in this important sector across the United Kingdom. These are highly skilled engineering jobs, which are highly regarded and greatly sought after. She is also right that such jobs are particularly sought after in areas of relatively high unemployment. I used to work in the nuclear industry, and I was based in what was then part of the constituency of my hon. Friend the Member for Dumfries and Galloway and is now in the Minister’s constituency. Unlike in the south-west of England, where the engineering and scientific industries were in competition with other companies, there was almost a monopoly on the work force in places such as Dumfries and Galloway. To an extent it is the same in the north-east of England and the north-east of Scotland, where there is not the same diversification in jobs. It is important that the two Governments recognise their responsibility to work together.