Anas Sarwar defended Labour’s energy policies last night after senior North Sea bosses warned him that jobs and investment are already on the line.
The Scottish Labour leader lined-up alongside First Minister John Swinney and Scottish Conservative leader Douglas Ross for a special energy debate organised by Aberdeen & Grampian Chamber of Commerce and hosted by the University of Aberdeen.
It was a far-reaching discussion covering some hugely important issues including the future of the North Sea, the energy transition, planning, Great British Energy, as well as the impact of energy on issues like food security, fishing and higher and further education.
And despite many differing opinions, debate host Callum Macdonald, of Times Radio, achieved some consensus on issues where both the Scottish and UK governments can work together to make a difference, such as infrastructure and green energy consenting.
However, with plans to increase the oil and gas windfall tax, remove investment allowances and a ban on future drilling, much of the debate focussed on what Labour will do if Sir Keir Starmer is handed the keys to Downing Street next week.
Mr Sarwar said his party wanted to build a strategic partnership with industry to deliver a green energy revolution in the North-east. He said tens of thousands of jobs would be created by a public energy firm – Great British Energy - harnessing the natural resources around Scotland to fund public services.
But he was challenged by senior oil and gas figures who had travelled from around the UK to take part in the debate.
Martin Copeland, the Chief Financial Officer at Serica Energy, which produces around 5% of the UK’s gas each day, said the fiscal regime put forward by both Labour and the Conservatives seemed designed “to kill off the vital investment needed to keep the North Sea taps flowing”.
Jillian Owen, UK Country Manager at Apache, also voiced concerns, warning that production is already falling and that jobs are going.
Mr Sarwar said he rejected analysis from the Chamber and investment bank Stifel that up to 100,000 jobs are at risk, insisting that Great British Energy would lead to the creation of 69,000 jobs in Scotland.
“I’ll be blunt about it, I don’t accept that (jobs) figure,” he said.
“I make no attempt to hide the fact that we don’t support new oil and gas licences. I make no attempt to hide the fact that we want to extend the windfall tax if we win the election.
“But these are just two elements in a broader plan, which is about building a genuine partnership and bringing investment here.
“I am confident that our plan will create 69,000 more jobs here in Scotland and collaboration towards a green energy future."
Pressed by Mr Ross on whether these were new jobs, or in place of oil and gas jobs lost, Mr Sarwar fought back, claiming that the North Sea workforce had halved under the Conservatives.
Mr Swinney questioned whether the extension of the Energy Profits Levy would be effective in generating additional revenue, and said the UK needs energy companies to recycle profits into the transition.
He said: “We need the oil and gas sector to be able to make a contribution towards the transition to renewables – it cannot be funded by the state, it’s just not possible.
“I would not extend the Energy Profits Levy beyond 2028 and I would not support its increase.”
Mr Ross hit out at the “continued negativity” against the oil and gas sector, which he said is turning people off working in the North Sea.
He claimed the SNP, if it does back a presumption against oil and gas licences in its delayed energy strategy, and Labour, with its plans for no new licences, would force oil and gas workers to go overseas, stripping the UK of the supply chain it needs to deliver net zero.
Click here to watch the debate in full.