EDINBURGH, Scotland, March 23 (UPI) -- The North Sea energy sector has paid a "heavy price" because of the policies embraced by the British government, Scotland's deputy first minister said Monday.
John Swinney, the deputy first minister and finance secretary for the government in Edinburgh, said during a visit to an industrial skills academy that broader fiscal and regulatory reforms are needed to ensure the economic prosperity of the North Sea energy sector.
"A heavy price has already been paid by many in the industry because of the challenging situation in the North Sea, which supports thousands of Scottish jobs, compounded by the inaction of the British government, despite Scottish government, and industry, calls for urgent change to the fiscal regime," he said in his Monday address.
A budget plan outlined last week in London is aimed at boosting exploration for new oil and gas reserves in the North Sea. Ian Wood, who led the drive to add vitality to the sector, said the new package should help stimulate investor confidence in a North Sea oil and gas industry coping with the decline of older fields.
Scotland pegged its future during a bid for independence on revenue from oil and gas reserves in the North Sea. The bid failed last year, though the government in January said the region's energy sector needs a predictable set of governing policies in order to thrive.
Swinney said the Scottish government wanted a tax policy that placed less emphasis on risk in a way that made North Sea energy competitive and predictable.
"Investors must be assured that these measures will stand the test of time, providing the vital stability and predictability which has been lacking up until now," he said. "What we need is a long-term outlook, proper consultation with industry, and a truly collaborative approach to addressing the challenges the sector currently faces."
