Oil and Gas Summit
To ask the Scottish Government what action it will take in response to the oil and gas summit in Aberdeen on 2 February 2015. (S4T-00926)
The First Minister led the Scottish Government’s involvement at yesterday’s oil and gas summit, where industry leaders, academics, trade unions, representative bodies and three layers of government came together to discuss the future of the industry and the region.
The Scottish Government has acted decisively and swiftly, using our devolved powers, to support the oil and gas industry—for example, by establishing a jobs task force to play a part in maintaining skills and employment and to help those who might face redundancy. We will continue to press the United Kingdom Government to make the urgent and substantial tax changes that are required to sustain investment and the North Sea’s long-term future. I hope that Alex Johnstone supports our proposed changes.
We also support the prospect of a city deal for Aberdeen and we will liaise with the UK Government, Aberdeen City Council and Aberdeenshire Council on that.
I thank the minister for his answer, and I am sure that the industry will welcome the opportunity to see Scotland’s two Governments working together for the benefit of the industry.
Given the longer-term significance of the potential downturn, will the minister commit the Government to improving confidence in the north-east by ensuring that, in the future, a higher proportion of locally generated resource is reinvested in the economic growth and invigoration of the north-east?
Of course we want to continue to work closely with Aberdeen City Council and Aberdeenshire Council. The First Minister emphasised that at what was a very constructive meeting yesterday. I am pleased that the task force that is being led by Lena Wilson—the chief executive of Scottish Enterprise—came up with a large number of practical suggestions. I know that Lena Wilson is absolutely determined to drive forward those suggestions, working closely with the Scottish Government.
I am happy to share the sentiments that Mr Johnstone expressed, but it is fair to say that it is clear that the priority of the industry is that the tax changes that are expected to be announced on 18 March are substantial. That is the number 1 priority for us all at this time.
I share the minister’s enthusiasm for the tax changes that he mentioned. Aberdeen is well known as Europe’s oil capital, but we have the opportunity to consolidate the city’s position as Europe’s energy capital.
Will the minister give a commitment that efforts will be made to concentrate energy-related activities in Aberdeen, to acknowledge the work that is done by the offshore industry and to recognise the potential that exists in an onshore oil and gas industry, in hydrogen technology and in renewables?
I certainly agree that as well as being the centre of oil and gas activity for the United Kingdom continental shelf, Aberdeen is an international hub from which projects—in particular, projects that operate in broadly the same time zone—that extend down to South Africa are managed. Just last year, the income from international supply-chain activity in oil and gas exceeded the amount that was generated from UKCS and west of Shetland activity; it amounted to just over £10,000 million.
I also agree with Mr Johnstone’s point that we should continue to look at other energy opportunities, including those that are provided by renewables. We should also seek to work with Colin Parker and others at Aberdeen Harbour Board to bring about improvements to the harbour and the possible expansion to Nigg. I discussed those matters with Colin Parker when I met him last week. In all those respects, we have a lot of work to do, and I hope that there is wide agreement on the points that have been made.
With regard to onshore activity, I made clear our position on the work that needs to be done. I set out the basis for a moratorium pending the carrying out of further studies and the holding of a public consultation, which I think is right, given our assumption of responsibilities for such matters. I made all that crystal clear last week.
Does the minister agree with the members of the award-winning Aberdeen and Grampian Chamber of Commerce, who said that they believe that the supplementary charge that was introduced in the 2011 budget must be abolished?
I had the opportunity to speak to Bob Collier of Aberdeen and Grampian Chamber of Commerce. I am delighted that he is one of the members of Lena Wilson’s task force. That will mean that it will be possible for the excellent work that the chamber does—on, for example, mentoring—to be brought to bear to meet the significant challenge that lies ahead in assisting those who have been made redundant or who may face redundancy over the coming months and the next year or so, and in ensuring that they get maximum help.
To respond to the question that was asked, we think that the supplementary charge hike of 12 per cent that was made in 2011 should be reversed; we set that out in the paper that I presented to Parliament on 8 January. That is so important not necessarily because profits are being made at the moment—I know from my meetings with many operators in Aberdeen over the past three weeks that, in general, profits are not being made at the moment. The real significance is to reinstil confidence in boardrooms throughout the world. I cannot, having had a series of private discussions, emphasise highly enough that investment has leaked away on a very substantial scale since 2011. We are not talking tens of millions or even hundreds of millions of pounds; rather, we are talking about billions of pounds of investment that has gone from the UK because of the damaging tax hike in 2011.
This is an opportunity for the UK to send a clear signal and it is an opportunity that almost everyone who I have spoken to wants to grab.
This morning, a constituent of mine who is working in Houston told me that there must be in place an emergency response system to deal with dramatic ups and downs in the oil industry and the impact on the economy of Aberdeen and the north-east. Does the minister agree? Will the Scottish Government play its part in such a system? Is such a system any closer to development following yesterday’s summit?
As I outlined in the partnership action for continuing employment—PACE—debate last week, we of course already have, through the employability fund and European structural funds, the capability to assist in a number of ways people who are affected by the downturn, across the whole country, including in East Ayrshire and in Fife—I have spoken to Roderick Campbell about RAF Leuchars, as you know well, Presiding Officer.
Many parts of Scotland face shocks, but there are—as I argued in last week’s PACE debate—provisions to deal with the situation. We have set up a task force to do that. I was extremely pleased to have received a report in principle about the actions that will be taken, including action to promote better and to highlight through the industry the major PACE meeting that will be arranged in March; action to promote the PACE team’s employability helpline, which is available for the people who have been affected; and, above all, action to gain from the ideas that have been presented by industry, trade unions and academics at the task force and at yesterday’s summit meeting in order that we can provide a wide range of supports for each individual. That is the goal. We will work together with all other parties and everyone else to achieve that.
Yesterday, it was agreed that the north-east needs proper support and investment in order to make it an attractive place for business. At present, Aberdeen City Council is short changed on the local government funding formula by £13 million, according to the Government’s supposed funding floor. Will the minister support a change to local government allocations in order to bring up Aberdeen City Council up to the funding floor and allow investment that would enable the city to be a vibrant place for business?
It is correct to point out that we were the first Administration to place a floor on the amount of funding that would be made available. [Interruption.] Although Alison McInnes is protesting otherwise audibly from a sedentary position, the funding floor was not put in place when the previous Administration was here. That is a matter of fact.
We face difficult times. It is not going to advance us to have a partisan approach—[Interruption.]
Order, Mr Macdonald.
Shocking.
You, too, Mr Swinney!
That is why, Presiding Officer, I always seek to ride above expressions of partisan opinion from whatever source they may emerge, no matter how unlikely.
Police Resources (Celtic v Rangers Match)
To ask the Scottish Government what impact the recent Celtic v Rangers match had on police resources. (S4T-00920)
Police Scotland put in place more than 1,000 extra officers across Scotland to help manage the game, with more than 600 in and around the stadium and more than 400 in towns and cities across the country.
Police Scotland had a co-ordinated response, with officers readily available to manage fans. That included spotter teams, which worked jointly with partners outwith Scotland to target high-risk fans who may have travelled to Scotland for the game. The British Transport Police and the football co-ordination unit also played an important role.
It was disappointing to see that a small minority of the 50,000 football fans were intent on causing violence and disorder. At this stage, 56 people have been reported to the Crown Office and Procurator Fiscal Service by Police Scotland for football-related offences. We must recognise that those individuals are not representative of the positive attitude and behaviour of the vast majority of Scottish football fans and others who attended Sunday’s game.
Is the cabinet secretary able to say whether any of the behaviour of those 56 people was sectarian, anti-Irish or anti-Catholic?
I advise the member that, of the 56 people who have been reported by the police to the Crown, nine were reported for offences under section 1 of the Offensive Behaviour at Football and Threatening Communications (Scotland) Act 2012. A number of other offences were committed, which the Crown will consider as the cases go forward. However, it is entirely a matter for the Crown how it chooses to proceed with those individuals.
It has been suggested that alcohol should be made more freely available at football games. Does the cabinet secretary feel that alcohol made the situation worse on Sunday? Would more alcohol really help the situation?
It is important that a football match is an environment in which people feel safe and to which they feel they can bring their children and families. It is important that such factors are taken into consideration in how we manage football events. The Government wants our national game to be seen as a positive thing that people can enjoy.
I have stated previously that if there is to be any possibility of introducing alcohol at football matches again, we will have to consult widely because the matter goes way beyond what happens in the stadium. It is for the football authorities to come forward with proposals if they would like it to happen.
I am clear in my support of the approach that Police Scotland took on Sunday. I joined them as an observer, to see the policing operation at the game. Their approach demonstrated Police Scotland’s professionalism in managing such major events extremely well.
In the commissioned report into sectarianism, Dr Duncan Morrow made a number of recommendations for football clubs and governing bodies to act on. Has the cabinet secretary met any of the clubs or governing bodies to discuss the implementation of those recommendations?
I am not sure that that has anything to do with the recent Celtic v Rangers match, and I do not know whether the cabinet secretary wishes to respond.
It may assist the member to know that my colleague Paul Wheelhouse is responsible for that area of policy. She may wish to write to him on those matters.
Does the cabinet secretary agree that we are only ever going to get football in this country to move into the real world, with the challenges that it faces, if we ensure that there is much more family involvement? Does he agree that it is time that the football authorities woke up, smelled the coffee and introduced summer football to get more families into the game?
I am not sure that that question has anything to do with police resources, but the cabinet secretary may wish to answer it.
I do not think that my powers go as far as directing Scottish football to play matches during the summer. However, as a regular attender of football matches with my children, I think that having matches on Saturday afternoons when the temperature is warmer would make taking families along to the football much more attractive.
It is for the football authorities to ensure that Scottish football is an attractive product not just on the pitch, but off the pitch. Other European countries have been successful in achieving that. There is a challenge for the Scottish football authorities in ensuring that they create the right environment for fans off the pitch, and one in which they are seen as valuable. They must provide the resources and support that are necessary to ensure that the football environment for fans in Scotland is first class.
I point out to members that, when I call someone to ask a supplementary question, they are meant to address the question that was originally asked. I do not mind it when members are clever and link it to something else, but I have to say that that degree of cleverness was not on display today.