Oral Answers to Questions

Stuart Blair Donaldson Excerpts

Thursday 17th September 2015 Commons Chamber

[Amber Rudd]

I am always interested in listening to other people’s views on this matter. If the hon. Lady would like to write to me, or to engage with her constituents in order to participate in the consultation, I will consider what is said very carefully.

[Stuart Blair Donaldson (West Aberdeenshire and Kincardine) (SNP)]

8. What assessment she has made of the implications for her policy of (a) the findings of the Oil and Gas Authority's “Call to Action” report, published on 25 February 2015, on employment in the oil and gas industry and (b) that report's other findings; and what steps she plans to take to support employment in that industry.

[The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)]

The Government are fully committed to the oil and gas industry. In fact, the first visit that I made as the Minister was to Aberdeen. The industry is vital to our energy security, and it supports about 375,000 jobs across the United Kingdom. We fully recognise the huge challenge presented by lower oil prices, and accept the Oil and Gas Authority’s Call to Action report. The OGA is working with groups such as the Scottish Energy Jobs Taskforce to encourage companies to consider all possible alternatives to redundancy, as well as ensuring that we keep the vital skills that we will need in the future.

[Stuart Blair Donaldson]

I welcome the OGA’s early identification of the need to support a technology and innovation strategy. What measures will the Minister introduce to encourage technology and innovation, and to boost efficiencies in the oil and gas sector?

[Andrea Leadsom]

As the hon. Gentleman will know, the legislation to establish the OGA formally is currently being dealt with in the House of Lords. The authority’s key responsibility will be to maximise the economic recovery from the North sea basin, and it is already fully employed in that respect. The Government have made some fiscal changes to promote investment, and, importantly, we have also invested £20 million in seismic surveying of under-explored areas in the North sea basin to try to identify new opportunities for businesses that are based there, in order to encourage the investment that we so badly want.

--- Later in debate ---

[Amber Rudd]

Gas prices paid by households have fallen by 4.5%. The best deals are available for customers who switch to low-cost fixed term deals on the market, which are up to £100 cheaper than they were this time last year. I certainly hope that that trend continues, but we cannot guarantee it. However, I can say that the Government will take all the action we can to keep bills low.

[Stuart Blair Donaldson (West Aberdeenshire and Kincardine) (SNP)]

T5. Stability and simplicity are key for oil and gas operators to make investment decisions, but there have been more than 18 changes to the oil and gas fiscal regime in the past 15 years. Will the Secretary of State reassure me and the industry that there will be no tax rises for the industry for the remainder of this Parliament?

[The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)]

The hon. Gentleman will appreciate that that is really a question for my right hon. Friend the Chancellor, but I think he will accept that the Chancellor has taken great steps to try to improve the fiscal regime to encourage more oil exploration. By creating the Oil and Gas Authority, we have shown our commitment to trying to ensure that we maximise the economic recovery from the North sea basin.