Scot Lib Dems call for reforms as Petrofac enters administration
Scottish Liberal Democrats have today called for support for North Sea workers as oil and gas services firm Petrofac announced that it is to appoint administrators, putting thousands of jobs at risk.
According to reports, the company employs more than 7,000 workers globally, with around 2,000 of these based at its North Sea hub in Scotland
Lead candidate for North East Scotland, Yi-pei Chou Turvey said:
“There is no doubt that this will be a worrying time for staff at Petrofac. The firm has clearly faced a range of challenges but the first priority now needs to be to preserve jobs and ensure that workers are not thrown on the scrap heap.
“Both the Scottish and UK Governments need to ensure that they have the right structures in place to help firms in the North East who find themselves in trouble.
“Almost everyone in the North East will know someone who is concerned for their job at the moment.
“That’s why Scottish Liberal Democrats are calling for the replacement of the windfall tax on oil and gas profits and measures to stabilise the UK's tax regime. The windfall tax on oil and gas profits was supposed to be temporary, but it has dragged on and frequent changes have made the UK’s one of the most unstable oil and gas fiscal regimes anywhere. Investors are walking away.
“We need a tax that is predictable that can be relied upon by investors. It will need to be a long-term solution that responds consistently and predictably to societal needs as oil and gas prices rise and fall.
“We also need a carbon tariff on LNG imports which will ensure a level playing field between UK production and imports.
"We are going to need oil and gas for the foreseeable future and it is better to support production here than rely on imports of LPG from abroad which are much more polluting. Only the Liberal Democrats have a serious industrial strategy to deliver continued investment in the North East and support the families and communities that power our country."