August Column

Written by Malcolm Bruce MP on Wed 12th Aug 2009

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Oil reserves need careful management - whatever the total

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It is intriguing that there is a 10 billion barrel disparity between the UK Government's assessment of North Sea reserves remaining and that of the industry.

There is no doubt that the North Sea has passed its peak of production and yielded more than half of its potential. It is equally true that the reserves still to be produced will be more costly and more technically challenging to produce than what has come ashore to date.

The industry is trying to persuade the Government to provide tax incentives to explore for and develop more marginal reserves. The Government made minor concessions in the last budget but exploration has collapsed in recent months.

Of course, there may be a degree of commercial bluffing going on as companies wait for rig day rates and other service costs to fall.

There is no doubt that it is not just local self interest that makes it essential to get the climate right. If the UK is to maximise our long term production from our own resources and reduce our dependence on imports while we develop alternatives then we need to ensure policies are pursued that keep the North Sea active and sustains our major export industry - especially in our world leading sub-sea services.

There seems to be some intense debate about the case for an oil fund and who thought of it first. In the1970s as energy spokesman for the Liberals I argued for revenues from impending oil and gas production to be shared between Scotland and the UK

The then leader of the Scottish Liberals, the late Russell Johnson made the case for an oil fund to be sustained for long term investment.

These proposals were resisted by the Governments of the time and the tax revenues that have flowed from oil and gas production have just gone into the general coffers to fund current expenditure.

A small allowance was made to North East local authorities to pay for some early infrastructure but that soon ended.

As a result our local councils have been denied the funding needed to maintain essential infrastructure which has not been provided by central government either.

So the Aberdeen Western Peripheral route remains a controversial dream, progress on Crossrail is non existent and schools and health services are under intense pressure with little sign of relief.

The new leader of Aberdeen City Council has controversially called for an oil fund for the city. He has a point although it should be extended to Aberdeenshire as well.

The SNP glibly talk about a Scottish oil fund but have failed to address the chronic and unfair under-funding of our public services in the North East.

If we are to support the development of hard to reach reserves we need to ensure that the services on 'the beach' are adequate to support the needs of those working in support of offshore development. We should underpin success and invest for the future.

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New airlinks key to economic development

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The Scottish Council Development and Industry have called for the development of more airlinks from Aberdeen and Inverness to Continental Europe.

To be fair Aberdeen has seen a growth in destinations served in recent years. To be sustained they have to generate enough traffic but incentives can be useful to launch routes.

For international connections we already have useful feeders to Paris, Amsterdam and Copenhagen. It would be useful to add Frankfurt to that list as well as Madrid or Barcelona and Brussels

These are more likely to be provided by Lufthansa (now that they are taking over BMI) or Iberia than British Airways or other UK or Irish airlines.

Of course, people will still want holiday routes but it is clearly good for business if there can be year round scheduled routes to key destinations. Let's hope that some airlines will rise to the challenge.

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'Active' claim doubtful

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It is up voters to decide whether or not they find it acceptable for someone to try to represent two different constituencies in two different parliaments. Nevertheless, I find Alex Salmond's claim that he is one of the most active MPs beyond belief.

According to They Work for You.com he is not a member of any committees, has spoken only twice in the past year, has received answers to 14 written questions and voted in 16 per cent of votes. That is not the record of an active MP by any standards. I wonder if the voters of Banff and Buchan regard it as adequate.

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New planning rules more democratic

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New planning rules have come into effect to require planning decisions of major regional or national importance to be put before the full council.

This clearly has arisen following the controversy over the Trump application. This was always going to be an application that would arouse strong feelings - especially given the style and track record of Donald Trump.

Nevertheless it was always my view that it would be best if the decision could have been locally determined, and to be decided on the casting vote of the chairman of a small committee - against the wishes of the area committee and with the majority of councillors having no say - was never satisfactory.

It is possible that the full council might have been persuaded to oppose the application or impose stricter conditions.

The irony is that the process that followed the narrowest of rejections gave the Trump application an easier ride than its opponents would have wished.

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Time to get started on Olympic pool

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I hope that the controversy over the proposed Olympic swimming pool for Aberdeen will not delay it. After all, the Olympic Games are only three years away and it would be good have it operational in good time.

Our local stars, especially Hannah Miley have been part of the inspiration for this project and I certainly was in at the beginning of the campaign to secure it.

Of course it will stand good for the Commonwealth Games in Glasgow in 2014 but the value will be in having it ready for both.

I am not sure what the extra cost of a ten lane pool as compared to an eight lane amounts to but it would be ideal to have the full size.

What we do not need is any excuse for a further delay. Indeed I am looking forward to the announcement of a firm starting and completion date.

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Hope for Leith Hall

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I can understand the disappointment over the National Trust's proposed closure of Leith Hall which has been a long standing attraction in our area - even if visitor numbers are lower than other big attractions.

In the past the house has managed to have leased apartments with some public rooms open to the public. (Indeed one of my predecessors, Colin Mitchell stayed there). This would be a good option over and above just keeping the gardens open, welcome as that is.