The failures of Westminster’s stewardship of Scotland’s North Sea oil resources have been highlighted again today – after a senior industry expert called for a new tax regime to be put in place to support the industry.
Professor Alex Kemp, Professor of Petroleum Economics at the University of Aberdeen, has called for changes to the North Sea’s tax regime to allow maximum benefit to be extracted from the industry – which has suffered in recent years from a range of UK Government taxgrabs.
Professor Kemp’s comments come in the aftermath of Chief operating officer of Maersk Oil, Gretchen Watkins predicting a ‘renaissance’ for the North Sea if certain obstacles can be overcome – highlighting the need for a stable tax regime.
Commenting, SNP MSP for Aberdeen Donside Mark McDonald said:
“Professor Kemp is absolutely right in saying that the North Sea oil industry needs stability and support if it is to thrive as we know it can. Westminster has completely failed to deliver that fiscal stability for the industry.
“It is clear that we need greater collaboration between the industry and government to allow the North Sea to fulfil its potential. That is why the Scottish Government has called for control over oil and gas policy to be transferred to Scotland– with a government that works constructively with the industry rather than using it as a cash cow like successive Westminster Governments.
“With control over the North Sea’s taxation and licensing in Scotland’s hands, we can deliver the stable tax regime the industry desperately needs to extract maximum benefit from our natural resources – and can guarantee that the benefits from the North Sea are felt by the people of Scotland, rather than flowing to the Treasury in London.”
Pictured are (r) Professor Alex Kemp, Professor of Petroleum Economics at the University of Aberdeen and (l) SNP MSP for Aberdeen Donside Mark McDonald