Tories warn Scotland faces ‘dole, baby, dole’ as North Sea oil plan unveiled

Scotland faces “dole, baby, dole” under Labour’s plan for the North Sea, the Conservatives have claimed.

Shadow Scotland secretary Andrew Bowie said early-stage plans to stop issuing new oil and gas field licences mark a “betrayal of those workers” in the sector.

Industry minister Sarah Jones pledged on Thursday a “well-managed, orderly and prosperous transition” away from oil and gas.

Granting new licences for seaward exploration and production “would not take one penny off bills” and could hamper Government efforts to meet British climate commitments, she said.

The Government has planned to end new licences, which it is consulting on, but existing licences to drill could still be extended.

The Treasury has also said it is consulting on a new tax regime for producers post-2030 which would “respond to any future shocks in oil and gas prices”.

Mr Bowie told the Commons that companies are leaving the UK for other countries, such as the US, Saudi Arabia, UAE, Qatar and Norway.

“It’s said that in every oil-producing country in the world, you will find an Aberdonian,” he said.

“Turns out the only country you won’t find an Aberdonian working in oil in the near future is Scotland, so driven by this mad rush to clean power 2030, their obsession with renewables at the expense of everything and everyone else.

“It might be ‘drill, baby, drill’ in the USA, but it’s ‘dole, baby, dole’ under Labour in the UK.”

In a reference to energy secretary Ed Miliband, Mr Bowie also said: “No other country in the world, especially at a time of heightened global instability and volatility, would choose – actively choose – to aggressively and at pace shut down its domestic oil and gas industry.

“But this is exactly what this Government, and in particular this department led by the eco-warrior-in-chief, is doing.”

Ms Jones had earlier said the Government was “working with businesses, workers and communities to strengthen north-east Scotland’s status as the energy capital of the UK”, and “showing global leadership as we deliver a well-managed, orderly and prosperous transition”.

She said: “The truth is that sprinting to clean energy is the only way to deliver energy security and good long-term jobs for the workforce and communities.

“At the same time, we know we need to listen to the science of what is required to keep global warming to 1.5 degrees and the science-aligned approach to future oil and gas production is the only way to deliver climate security for future generations.

“So, we owe it to the North Sea workers and communities who have done so much for our country to come up with a proper plan for the future, and that is what this Government is doing.”

New licences to look for and produce oil and gas have made “marginal difference to the overall production” in recent years, the minister said, adding: “To continue granting them would not help our energy security, it would not be compatible with our climate commitments, and it would not take one penny off bills.”

The Government would back existing fields “for the entirety of their lifespan”, Ms Jones told MPs, but in response to Mr Bowie she said that 70,000 North Sea jobs had disappeared in less than a decade.

Sir Bernard Jenkin, the Conservative MP for Harwich and North Essex, said he was “in favour of net zero” before adding: “But what planet is her department now on?

“Is she unaware there’s now a national security crisis, demanding much higher defence expenditure?

“Is she now aware that the costs of net zero are inflicting untold harm on our industry and have done for some years? And it’s now time to pause this and prioritise economic growth to target cheap energy, instead of net zero.”

Ms Jones replied that she was “on planet Earth”.

She said: “We look at the world around us and we see the enormous hike in energy prices that we saw because – precisely because – we are attached to this global market of oil and gas.”

Bill Esterson, the Commons energy security and Net Zero Committee chairman and Labour MP for Sefton Central, said: “One of the challenges is that pay in the North Sea is significantly higher than equivalent jobs in the renewable sector, in offshore wind in particular.”

Mr Jones said: “Oil and gas workers are highly skilled, and they’re highly in demand, and they’re paid a good wage, he’s absolutely right.”

She added: “We need to make sure we’re working with the new offshore wind companies, you know, we like to see union recognition, we like to see strong salaries for these jobs as well, because they are, as he says, highly paid. There will be other jobs as well that people can go into.”