To ask the Scottish Government what discussions the economy secretary has had with ministerial colleagues on how its internal modelling of oil and gas jobs in the north-east compares with the latest industry estimates. (S6O-05261)

We monitor and consider a range of evidence in relation to the energy sector. As part of that approach, we commissioned and published independent analysis of Scotland’s energy system and just transition. That analysis considers the economic impact of Scotland’s oil and gas industry, including in terms of employment, during the transition to net zero.

I thank the Deputy First Minister for that answer, but it is not good, because the North Sea industry has been trapped in a vicious circle of Scottish National Party Governments that demonise oil and gas, egged on by student politicians and Green extremists, who delight in every announcement of hundreds of jobs being lost in the north-east. Does the Deputy First Minister agree that we should do everything that we can to reverse the worrying downward trend in oil and gas jobs, which will damage our energy transition in the long term?

Every employer that is facing the prospect of redundancies in the oil and gas industry right now cites the energy profits levy and the damaging effect that it has. If the Conservatives had not extended the levy, it would have expired at the end of this year, so perhaps the Conservatives need to ask why they extended it.

On that note, does the Cabinet secretary share my concern that industry modelling has consistently shown that the biggest threat to oil and gas jobs remains the Tories’ energy profits levy, which is now continued by Labour?

Absolutely—I could not agree more. The biggest threat—those are not my words, but the words of multiple employers—to jobs in the energy sector in the north-east is the energy profits levy. That was introduced by the Conservatives and extended by the Conservatives, and it has now been extended by Labour. We all hoped that, at the recent budget, Labour would suspend and replace the levy, but the UK Government obviously does not appreciate the level of threat that is facing our energy industry right now.

Modelling by Uplift shows how new oil and gas licensing does not and cannot lead to new jobs in the north-east because, over the past decade, hundreds of new licences were awarded, but jobs in the sector still halved. What is the Scottish Government doing to support Labour-founded Great British Energy to become the UK’s energy champion, to accelerate the deployment of clean energy technologies that benefit us all and to redress deindustrialisation in the north-east region?

Let me be clear that we are working collaboratively with GB Energy and we appreciate the work that it is doing, particularly in collaboration with, for example, the Scottish National Investment Bank. The primary issue, however, is that jobs are being lost in the north-east—largely because of the energy profits levy—at a faster rate than new ones are being created through renewables and particularly offshore wind. Some clear policy levers could be deployed to shift that balance. We encourage the UK Government to move faster when it comes to things such as auction rounds and grid connectivity to accelerate the roll-out of offshore wind. At the same time, the UK Government should, as a matter of urgency, replace the energy profits levy, which the UK Government itself accepts is unjust and unfair.