Tuesday 6 January 2015

Oil & Gas UK Responds to Visit to Aberdeen Today by Jim Murphy MP, Scottish Labour Party Leader

Malcolm Webb, chief executive of Oil & Gas UK, said: “The UK oil and gas industry is facing a particularly testing time with the sharp decline in oil price. If we are to maximise economic recovery of the UK's very substantial oil and gas resources, we need all stakeholders to work collaboratively to that end and particularly so at times like these. 

“Constructive work is already being undertaken by industry and government on several fronts. Fiscal reforms announced in the Autumn Statement were welcome first steps in reducing the overall tax burden on this industry but further measures such as the proposed investment allowance must be put in place in time for the coming Budget.  We also now need further significant reductions in Supplementary Corporation Tax.  The new Oil and Gas Authority must also work swiftly to exercise a more effective stewardship of the UK’s oil and gas resource.

“Today's meeting with Scottish Labour Party leader Jim Murphy presented a valuable opportunity to bring him up to date with the state of the industry and discuss the range of measures which both industry and government need to take in order to safeguard the sector and the crucial economic and social contribution it delivers for the UK. We were greatly encouraged by Jim Murphy’s agreement on the importance of timely results from the work currently underway with the Treasury to reduce the tax burden on the industry and also for his continued support for swift and full implementation of the recommendations of the Wood Report.  

Given the importance of collaboration between all stakeholders at this time, Oil & Gas UK continues to support Aberdeen City Council’s proposed Oil and Gas summit. Furthermore, given the need for the industry to urgently reduce its own costs and increase its efficiency, Jim Murphy’s proposal to introduce a resilience fund which can be used by Local Authorities to help persons affected by adverse economic conditions seems sensible”