Covid-19 (Oil and Gas Sector)

– in the Scottish Parliament at on 17 April 2020.

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Photo of Maureen Watt Maureen Watt Scottish National Party

The substantial impact of Covid-19 is being further compounded by the substantial fall in the oil price. What help can the Scottish Government, or indeed, as energy is still a reserved issue, the Westminster Government, give to companies in the oil and gas sector whose first preference is to make people redundant rather than to furlough them?

Photo of Kate Forbes Kate Forbes Scottish National Party

I am very aware of the issue that Maureen Watt flags. Not only does oil and gas production make up a considerable amount of Scotland’s gross domestic product, but the fall in oil price is exacerbating the challenges to our economy.

I am aware that Oil & Gas UK has identified a number of specific gaps in the coronavirus job retention scheme that complement some of the points that we have raised regularly with the Treasury and that I have raised in phone calls with the Chief Secretary to the Treasury.

Oil & Gas UK and we have been asking the United Kingdom Government to consider three particular requests in relation to the job retention scheme in order to mitigate potential redundancies. Our strong steer is that we expect employees to be furloughed, not made redundant—that is why that support exists. Briefly, the three asks are an extension to the scheme, a clearly defined end date to the scheme and an assurance that oil and gas operators and service companies will be able to access the scheme.

We will continue to work very closely with the UK Government and the other devolved Governments to ensure that those changes are made and to ensure that, where there clearly are issues with a UK Government scheme, it is willing to adapt that scheme in response to points that are raised about it.