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Government in warning to SNP on oil
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04 January 2007
Scotland Office minister David Cairns will tell an industry conference that the UK Government has "no intention" of devolving control over oil and gas to Holyrood.
"The interests of both Scotland and the UK are best served through continued economic union and the benefits which accompany a UK-wide approach," Mr Cairns will say.
"Our thinking on this issue is therefore unequivocal - introducing needless uncertainty into an £11 billion industry which supports half a million jobs is not an option for the UK Government."
Before the Holyrood election, the SNP pledged to make it an early priority to begin discussions with Westminster on "options for the transfer of responsibility for our oil and gas resources to the Scottish Parliament".
In his report on the SNP's first 100 days in power, First Minister Alex Salmond said meetings were being sought - and that his administration was also investigating the arrangements Northern Ireland has on energy powers.
Mr Cairns' warning, in a speech to be delivered to the Offshore Europe conference in Aberdeen, comes as figures suggest North Sea oil and gas production is continuing to fall.
The monthly Royal Bank of Scotland oil index puts the average daily output of oil in June at 1.263 million barrels worth £45.3 million a day, or 6% down on the previous month.
Although some of the decrease is for seasonal reasons, including summer maintenance shutdowns, the figure for oil alone is down 11.4% on June last year.
Mr Cairns will tell the Aberdeen conference that North Sea oil is a UK resource.
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