Draft Investment Allowance and Cluster Area Allowance (Relevant Income: Tariff Receipts) Regulations 2018

Ronnie Cowan Excerpts

Wednesday 9th January 2019 General Committees

[Ronnie Cowan (Inverclyde) (SNP)]

Although I welcome the support that the statutory instrument provides towards the sector’s achieving our shared objective of maximum economic recovery, I believe that this does not go nearly far enough. It is a disgrace that, having benefited from £350 billion of North sea revenues, the UK Government have failed to accept Scottish National party demands to provide Budget funds for an oil and gas sector deal. A sector deal for the industry must include national hubs for underwater innovation, transformational technology and decommissioning. We are not rushing to decommissioning, but anyone can see the growth area that that will present for the United Kingdom and we should be bringing those jobs onshore, here to the UK. It should be based in Aberdeen, where it would be well suited to service the entire United Kingdom.

I am disappointed that there is no commitment that the UK Government will continue to work collaboratively with the Scottish Government and honour their manifesto pledge in committing to the development of an ultra-deepwater port, which would bring benefits not only for a single location, but as part of an integrated decommissioning offering. Recent industry announcements such as BP’s successful discoveries in its Capercaillie and Achmelvich wells and Nexen’s phase II of development of the Buzzard field demonstrate that the investment potential of the UK continental shelf still holds. The North sea has significant potential, with up to 20 billion barrels of oil equivalent remaining. That could sustain production for another 20 years. The SNP supports what has been proposed, but I have to point out that we are not being nearly ambitious enough.