Economy Secretary Keith Brown has received the “necessary assurances” from the UK Government that rapid progress will be made on a loan guarantee scheme for the oil and gas industry.
The commitment, from Chief Secretary to the Treasury Greg Hands, is an “important step forward” in helping the struggling sector, Mr Brown said.
The Holyrood minister had pressed the UK Government on the plans, unveiled in last year’s Budget, to use the UK Guarantees Scheme for oil and gas infrastructure to help secure investment in the North Sea.
Mr Brown said he had secured the commitment from Mr Hands that work on this would “progress at speed”, at recent talks with the UK Government minister.
The Economy Secretary has now written to Holyrood’s Economy Committee to update it, as well as key figures within the industry.
Mr Brown said: “The Scottish Government strongly believes that the North Sea oil and gas sector can have a bright future for years to come. We are doing everything in our powers to bring this about but it continues to require a concerted effort by government, industry and regulator.
“I aim to listen and, where I can, to act in the best interest of this important industry – however, the UK Government retains control of the key taxation levers affecting the sector, and must take the action needed to protect jobs and enable the industry to best deal with the challenges it faces.
“This issue was quite rightly raised at the Economy Committee last Tuesday and I undertook to press the UK Government again on this important matter.
“Despite repeated requests from the industry and the Scottish Government, there has been little progress on this issue so far. That is why I am pleased to have received the necessary assurances from Mr Hands that work on loan guarantees to support investment in offshore infrastructure – which are essential for the industry to secure funding at this moment in time – will now proceed with speed.”
He added: “The UK Government must now deliver urgently on this promise. While this remains a difficult time for the industry and its workforce, these assurances from Mr Hands are an important step forward in supporting the oil and gas sector and I will be staying in close touch with the UK Government to ensure the promised action happens, and happens quickly.”
