Speaking on behalf of the Offshore Co-ordinating Group (OCG), Grahame Smith, STUC General Secretary said:
“It is vital that the Chancellor leaves no stone unturned in trying to support production and jobs in the oil and gas sector through the current crisis.
“The OCG supports calls for a loan guarantee scheme for operating and supply chain companies, additional fiscal incentives for exploration and measures to support the transfer of late life assets. Scottish Labour’s proposal that the UK Government should consider taking stakes in strategically important infrastructure has merit and should be carefully considered.
“Although realistic over what might be achieved in a situation of ultra-low profitability, the OCG also supports a temporary cut in the headline rate of corporation tax.
“Recognising that fiscal measures alone are insufficient to secure the industry’s future, the OCG calls on both the UK and Scottish Governments to bring together all stakeholders at a summit aimed at stimulating the co-operation, collaboration and innovation that has so often been missing in the North Sea. The industry has a future worth fighting for but this will not be secured on the back of cutting wages, tearing up collective agreements and jeopardising the safety regime.”
1 The OCG was recently established to coordinate trade union policy and campaigns in the oil and gas sector.
2 The OCG’s first State of the Industry report was published in February and can be accessed here: http://www.stuc.org.uk/files/Document%20download/OCG%20State%20of%20Industry%20Report%20Feb%202016.pdf
3 The STUC’s Budget Submission contains context and detail on the fiscal measures mentioned above and can be accessed here: http://www.stuc.org.uk/files/Document%20download/2016%20Budget%20/STUC%20Budget%20Submission%202016.pdf
Contact: Stephen Boyd 0141 337 8100