Date lodged: 20 September 2016
To ask the Scottish Government what discussions the Cabinet Secretary for Economy, Jobs and Fair Work has had with the Treasury on tax relief for oil and gas decommissioning work, and what the outcome was.
Answered by: Paul Wheelhouse 3 October 2016
The Scottish Government has, on many occasions, made representations to the UK Treasury on all matters relating to oil and gas. The Scottish Government is keen to ensure the oil and gas fiscal regime is robust and fit for purpose, with the aim of maintaining the North Sea as an attractive place for investment, but also one that ensures the right assets are in the right hands to prevent premature cessation of production.
With regard to oil and gas and decommissioning, the Cabinet Secretary met with the Chief Secretary to the Treasury on 30 June 2016 to discuss this, among other issues of importance to Scotland. The Cabinet Secretary highlighted the need for urgent action on the UK Loan Guarantee Scheme to support investment in oil and gas assets and infrastructure, which was originally announced by the UK Government in the Spring Budget 2016.
It was also impressed upon the Chief Secretary that decommissioning was a major opportunity, with the potential for Scotland to become a centre of expertise. The Cabinet Secretary stressed the need for the UK Government to do all it could to support this ambition.