First Minister John Swinney has renewed his call for the UK Government to scrap the Energy Profits Levy after meeting senior figures from Scotland's offshore energy sector in Aberdeen.
Speaking after a roundtable hosted by Aberdeen & Grampian Chamber of Commerce on Monday evening, Mr Swinney urged the new Prime Minister to replace what he described as the 'damaging' windfall tax with a fairer long-term fiscal regime.
The meeting came just days after BP announced plans to market its North Sea business, a development that dominated discussions between ministers and representatives from operators, the supply chain, renewable energy, academia, finance and trade unions.
The discussion also covered the barriers facing Scotland's renewable energy ambitions, including transmission charging and the Strategic Spatial Energy Plan, with industry representatives calling for action to unlock investment across both existing and emerging energy sectors.
Following the meeting - which was also attended by Energy Minister Stephen Gethins and local MSPs Jackie Dunbar and Jack Middleton - Mr Swinney said: 'It is crystal clear that the UK Government's destructive tax regime is harming investment and jobs in Scotland – and the new Prime Minister must look at this issue as a matter of urgency.
'Scotland's energy security and economic future depend on a fair transition, where North Sea oil and gas production is managed alongside the increasing renewables. That future is built on the world-class workers of the North-east, powering the energy future of Scotland.
'Speaking to industry leaders today, I promised that the Scottish Government will do everything within our powers to work together with business, trades unions and the UK Government. What we need, above all, is for the new Prime Minister to end the unfair EPL and put in place a sensible tax regime to protect the workers of Scotland and the North-east.'
Ryan Crighton, Policy Director at Aberdeen & Grampian Chamber of Commerce, who chaired the discussion, welcomed the First Minister's advocacy on behalf of the sector, but urged him to go further in support of Jackdaw and Rosebank ahead of crucial decisions on those projects this month.
He said: 'BP's decision to market its North Sea business featured prominently throughout the discussion and should serve as a wake-up call. When one of the basin's largest and longest-standing investors concludes that the UK is no longer the right place to deploy capital, it underlines the urgent need for governments to restore investor confidence through stable policy, competitive taxation and a predictable regulatory environment.
'The message from around the table was unequivocal. We need a stable, internationally competitive fiscal regime, timely regulatory decisions and a clear long-term commitment to homegrown energy production. Without that certainty, investment, jobs and expertise will continue to migrate to other parts of the world.
'We welcomed the First Minister's increasingly pragmatic approach to the future of the North Sea, including his clear opposition to the Energy Profits Levy. With decisions on Jackdaw and Rosebank expected in the coming weeks, AGCC has asked him to give explicit backing to these nationally significant projects. Doing so would strengthen the UK's energy security, support skilled employment across Scotland and reduce our reliance on imported energy with higher emissions.'
Attendees included representatives from Adura, BP, D2Zero, ETZ, EY, GMB, Johnston Carmichael, Ocean Winds, PDi, Port of Aberdeen, Robert Gordon University, Scottish Renewables, STUC, Thistle Wind Partners, True North Advisors, the University of Aberdeen, Unite the Union, RMT, Ventex, Veri Energy and Wood Group.
Source: Aberdeen & Grampian Chamber of Commerce
