Scottish Tories must champion oil and gas – even if UK party colleagues won’t

It is clear that just doing the same as we have in the past, and hoping that things will get better, isn’t any sort of a solution. Our members want change, and will vote for a leader who can deliver it.

At meetings in Inverness, Moray and Aberdeen, we heard from members angered at the removal of David Duguid, the well-regarded local MP, as the candidate in the Aberdeenshire North and Moray East constituency. David himself believes that had he been allowed to stand, notwithstanding that he was recovering from a medical incident, the Conservatives would have retained that seat instead of losing it to the SNP, their one gain on an otherwise dismal night for them. Serious questions remain about how this situation was allowed to develop, and people want answers.

Giving people a reason to join

There is a strong feeling that our members have been taken for granted, with decisions in the party being the responsibility of too small a group of individuals. That’s why my platform for the leadership is unashamedly focussed on giving the membership more of a say, giving the party back to them.

They should have a proper input in policy development, and much-improved engagement with the leader, MPs, MSPs, councillors and activists. We will only attract more members to join, and people to become involved, if we give them a reason to do so.

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But more important is having a clear message for the people of Scotland. We can’t just keep saying we are against independence, we have to be positive about what we are offering.

Oil windfall tax a threat to jobs

At the heart of our policy offer must be getting the economy right. A thriving economy will deliver better opportunities for our young people, secure well-paid jobs and careers, and generate the tax revenues we need to fund the quality public services we all want to see.

There are few more important parts of the Scottish economy than the oil and gas sector, which faces increasing challenges. This week, industry body Offshore Energies UK (OEUK) claimed that Labour’s oil and gas windfall tax rise would cost the sector around £13 billion. It stated that investment in the North Sea would fall from the expected £14.1 billion in 2025 to just £2.3 billion in 2029. Far from raising additional money, the windfall tax would lead to an accelerated decline of domestic production, and therefore a reduction in the number of jobs and the taxes paid.

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According to OEUK, 35,000 jobs are put at risk due to new oil and gas projects being cancelled or pushed back, leading to a substantial loss of economic value to the wider UK economy. Responding to the report, my Scottish Conservative colleague Douglas Lumsden slammed Labour’s approach to the sector, and their plans to increase the windfall tax, end the investment allowance, and oppose all new oil and gas licences, which would leave tens of thousands of skilled jobs hanging in the balance.

Conservatives not blameless

It’s little wonder there is so much concern in North-East Scotland in particular about what is planned. Everyone supports the concept of a just transition away from fossil fuels, over time, to renewable sources of energy. However, to enable the sector to facilitate this transition, it requires to be supported, not punished. 

It is also a reality that we will require oil and gas well into the future as an energy source, and prematurely closing down the North Sea as a base will simply lead to greater imports to the UK, with a higher carbon footprint. Moreover, even when we stop using hydrocarbons as an energy source, they will still be required as the raw material for the petrochemical industry, and a component in virtually everything we use in our lives.

Whilst the windfall tax and Labour’s plans are what are being criticised at present, the Conservatives are not blameless when it comes to their approach to oil and gas. Back in the Spring Budget, the then Chancellor Jeremy Hunt announced a one-year extension to the windfall tax, something that was greeted with dismay by Scottish Conservative colleagues.

To his credit, Douglas Ross announced that he would oppose this measure, although had we continued to be in government, it would have put other Scottish Conservative MPs in ministerial positions in a difficult place.

Growth, liberty and personal responsibility

It is the classic example of a policy area where there might be a difference in view between the Scottish Conservatives and our Westminster colleagues. In such a case, I have no doubt that Scottish Conservatives should be standing up for such a vital component of the Scottish economy, and arguing to protect jobs here, even if that puts us at odds with our Westminster colleagues.

Under my leadership, that is exactly where the Scottish Conservatives should be. We need to be a champion of Scottish interests, in the tradition of John Buchan, even if it sometimes means challenging those from within our own party.

I believe there are far more people in Scotland who share our Conservative values than currently vote for us. They want to support a party that is pro-growth, pro-business, stands for individual liberty and personal responsibility, and will deliver good quality, efficient and value-for-money public services.

As a party, we can’t go on as we are. That is why I am the candidate for real change in the party, and if I am successful that is what I will deliver.

Murdo Fraser is a Scottish Conservative MSP for Mid-Scotland and Fife