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Oil industry has nothing to fear from Corbyn, says Dugdale

Kezia Dugdale
Kezia Dugdale

Senior Labour figures yesterday insisted Labour was 100% committed to the north-east economy – and said the oil industry need not be concerned by the election of Jeremy Corbyn.

Indicating a Labour government would support tax breaks for the sector, shadow Scottish secretary Ian Murray said the tax reductions and investment allowances announced in the March budget were “really helping” in the context of the downturn.

Mr Murray, Scotland’s only Labour MP, suggested a similar approach would be taken if Labour got into power.

And when asked if the industry should be worried about Mr Corbyn’s victory, Scottish leader Kezia Dugdale was quick to point out she would ultimately be responsible for deciding where the party in Scotland stands.

Speaking to The Press and Journal at the Labour party conference in Brighton, she said: “I don’t see any signs to be concerned.

“I’m absolutely 100% committed to supporting the north-east economy.

“Ultimately decisions about where the Scottish Labour party stands will be made by me.”

They both also emphasised the importance of securing the Aberdeen City Region Deal as a means of supporting the oil industry long term.

Ms Dugdale said: “It is exciting in its own right, the investment going into the north-east.

“But it’s also critical if we are going to make sure that we can make the most of what’s left and also help it (the industry) diversify and get ready for an alternative, non oil-based economy.”

Mr Murray added: “We will keep fighting for the City Deal and hopefully the government, if they see sense, will ensure that Aberdeen gets the deal that it has got on the table already.”

He also said the infrastructure resulting from it could really “anchor the supply chains”.

Asked what policies Labour would pursue in power to support the sector, he told the P&J his party would put in place a “proper strategy for the skills shortage”.

Asked whether Labour would continue tax breaks for oil companies, he added: “That’s really helping at the moment, so it’s really important to do that.

“It’s also about making sure we can have proper support for exploration because it’s that kind of exploration and research that’s been cut at the moment because of the oil price and because of the way the industry is.

“It’s not all bad news, but government has got a key role to play in making sure the taxation regime is beneficial for exploration.”

Their comments came as the party announced its manifesto for next year’s Scottish elections would be the most pro-enterprise ever.

Ms Dugdale said to be able to invest in Scotland’s education system, the country must first generate the wealth to pay for it.

On a visit to Entrepreneurial Spark, an organisation which supports business start-ups, she said: “To regain the trust of the people of Scotland, we need to offer a positive vision for transforming our country.

“That includes a new relationship with those who generate the wealth Scotland needs to make our country a fairer place to live.”