Contribution
It is a pleasure to serve under your chairmanship, Mr Western. I commend the hon. Member for Brigg and Immingham (Martin Vickers) for securing this important debate. I also acknowledge the contribution of the hon. Member for Alloa and Grangemouth (Brian Leishman), who spoke with his usual passion, but today I believe with a degree of anger as well, and rightly so.
A just transition supports and protects existing oil and gas sector workers through—I emphasise “through”—the transition to a world-class renewables workforce, a transition in which Scotland is well placed to lead the world. I want to share the following quote:
“‘just transition’ has now become meaningless for so many people and that’s a failure… People should feel like that’s not something done to them, but something they’re part of shaping.”
That was said by the Minister for Energy in a recent interview with the Holyrood magazine. Sadly, for thousands of workers in North sea upstream, midstream and—in the case of refining—downstream jobs, a just transition is far removed from the reality that they face.
The workers now made redundant are angry at the UK Government’s failure to support their transition. Their families and communities are also angry, as are we, their representatives. We know that the just transition is doomed to fail because of three things: first, the failure to press forward with renewable energy schemes in north-east Scotland at the urgent pace that is required; secondly, the failure to allow new exploration licences while persisting with the crippling energy profits levy on the oil and gas sector; and thirdly, the failure to protect refinery jobs at Grangemouth and Mossmorran. Today I learned that 7,000 business leaders, workers and companies have signed a letter to the Prime Minister in which they demand change to the EPL to avoid the projected 1,000 job losses per month.
Looking specifically at the situation in Grangemouth in Scotland, Anas Sarwar, the leader of the Labour party in Scotland, said that a Labour UK Government would
“step in to save the jobs at the refinery and to invest in that transition…and we would put hundreds of millions of pounds behind it to make it a reality.”
No doubt the Minister will cite the £200 million promised to support Grangemouth, and reference has been made to the Scottish Government’s contribution. Of course, today brings good news in that regard, with MiAlgae’s welcome investment announcement on top of the Celtic Renewables project. The Scottish Government are an active partner in funding those projects, and we welcome the investment. However, the funding announced today amounts to only £7.73 million in total, and the 280 jobs —perhaps more—will not be fully realised for five years, if ever. Where is the rest of the promised £200 million? Where is fulfilment of the promise made by the leader of the Labour party in Scotland? Where is the intervention that occurred for Scunthorpe? People need work now. Families need certainty, but all they face this Christmas is uncertainty. In the meantime, the refinery workforce has been largely cast aside.
Looking further afield in Scotland, including Prax Lindsey, the UK has lost a third of its oil refineries just this year, on this Government’s watch. Furthermore, it is an uncomfortable truth for the Government that the UK’s uniquely high energy costs—the highest in the G7—are one of the main factors harming the refining sector and industry more generally.
I acknowledge that the North sea basin is in decline, but the importance of sovereign capability in national security is often repeated from the Government Front Bench. It is particularly true in defence, but how can defence capability be even remotely claimed if the vital fuel needed to operate tanks, ships and aircraft is acquired in the quantities needed through imports from abroad? Those imports can hardly be described as secure in this currently very dangerous world. Refining sites, as mentioned by the hon. Member for Alloa and Grangemouth, have great potential for such things as sustainable aviation fuel production, but this remains a jam tomorrow promise. This is not remotely a positive trend for our economy, our environment, or, vitally, our national security.
I must press the Minister to address these questions. How can she tell the thousands of directly employed and supply chain workers at Grangemouth, Prax Lindsey and the many other sites and companies that are shedding workforce in the oil and gas sector that they are part of shaping the just transition? What assurance can she give those workers that the future is bright, especially when the Acorn project in my constituency faces growing uncertainty, for example? I urge her to address those questions in her speech. The destruction of the refinery jobs is a repetition of the Thatcherite coal mine closures and the steel plant shutdowns, with no plan for the workers, their families and the communities affected. We have long memories in Scotland. Only with the full powers of independence in areas such as energy policy will the workforce at Grangemouth and elsewhere in Scotland’s oil and gas sector get the priority and the just transition to the future that they so richly deserve.