Oil and gas job losses deemed ‘national emergency’ by Findlay

The number of oil and gas jobs being lost is a “national emergency”, the leader of the Scottish Conservatives has said.

Russell Findlay raised the plight of workers at the ExxonMobil ethylene plant in Mossmorran, Fife, during First Minister’s Questions at Holyrood on Thursday.

Workers were told this week that the company plans to close the plant in February, putting more than 400 jobs at risk.

The site makes ethylene – a key ingredient in plastic – from hydrocarbons found in oil and gas.

It is the latest in a list of job losses for the sector, including the closure of the Grangemouth oil refinery earlier this year.

Mr Findlay pointed at the impact of the so-called windfall tax on oil and gas for firms cutting staff, as well as urging both the Scottish and UK governments to be more sympathetic to the sector.

“The energy profits levy must go and both governments must change direction,” he said.

“If they don’t, industry body Offshore Energy UK warns that 1,000 jobs will be lost every month until 2030.

“This is a national emergency.”

Mr Findlay also highlighted a report released by the Fraser of Allander Institute think tank which showed the difference between an accelerated decline of the sector and a managed one will mean about £13 billion to the UK economy.

The Tory leader urged the First Minister to sign a letter he is sending to Chancellor Rachel Reeves, calling for the windfall tax to be scrapped in next week’s Budget.

The First Minister refused to sign the letter, instead saying Finance Secretary Shona Robison had made the same point to the Treasury.

To rapturous applause from the SNP benches, the First Minister added: “I think for completeness, I should point out to Parliament that the energy profits levy was introduced by the Conservative Party in the first place.

“The issues around the energy profits levy are now very acute to the oil and gas sector.

“I don’t need to add my name to the letter that Russell Findlay is talking about, because the Finance Secretary has already made these representations to the UK Government.

“We’re at a pivotal moment in relation to supporting the sustaining of employment in Scotland’s economy, as we ensure we build up to our clean energy and renewable future.

“This requires the UK Government to heed the concerns expressed by many people, including the Scottish Government, about the continuation of the energy profits levy, which was introduced by the Conservatives.”

In the Scottish Government’s draft energy strategy – which was released under Nicola Sturgeon in early 2023 but is yet to be finalised – the stated position was a “presumption against new exploration for oil and gas”.

While Mr Swinney’s administration has appeared to soften its position on the sector since he took office last year, Mr Findlay offered the votes of his party to drop the presumption.

“He’s worried that extremists in his own party and the Greens would unite and he would lose a vote in this Parliament,” the Tory leader said.

“Let me make him another offer today – my party will support his Government to overturn its presumption against new developments, we will give him the votes to protect thousands of Scottish jobs.

“So is John Swinney prepared to do the right thing?”

When the Government does publish its energy strategy, the document would not face a vote in Holyrood, though Mr Findlay may be alluding to a future motion brought by opposition parties that could compel ministers to continue backing a presumption against oil and gas.

Responding to Mr Findlay, the First Minister said: “The Scottish Government’s position is that any new oil and gas developments have got to pass a climate compatibility assessment to ensure they are consistent with the agenda that we’ve got to take forward on net zero.”

Licensing for new oil and gas exploration remains reserved to Westminster, meaning the Scottish Government’s position on new oil and gas development could have little impact.