Trade unions are concerned at government plans to cease new oil and gas licenses in the North Sea and the impact on jobs in Aberdeen, but does the UK government have the answers to help the Granite City?
More than 30,000 jobs are under threat, say the unions, and last week delegates at the TUC (Trades Union Congress) called for “no ban without a plan”.
This means licenses should continue until a fully funded plan is agreed for all North Sea workers to transition them out of oil and gas and into renewables.
It comes as the big-ticket Labour party manifesto pledge, Great British Energy, looks set to be headquartered in Aberdeen according to news reports, with smaller offices in Glasgow and Edinburgh.
While the unions clamour for job security, will Great British Energy deliver on addressing concerns for continuity for the workers who have put Aberdeen on the map?
The city is an offshore wind hotspot and under its remit, GB Energy will invest heavily in wind and solar projects. It will also look to boost emerging technologies like carbon capture and storage.
On paper, it sounds like GB Energy could help to bridge the transition the unions are concerned about. But it’s still no silver bullet. It won’t actually supply power to homes on the retail market, but it will generate clean energy to sell on the wholesale market.
The UK government says it will be funded by a bigger tax on the profits of oil and gas companies – Labour says this could raise £8.3 billion over five years. However, as they’re not going to be granting new licenses this figure will be extracted from those already in existence.
Pegging the golden goose, GB Energy, on the profits of such a volatile market is risky. Especially when you’re planning on putting oil and gas into imminent managed decline.
At the end of the day, all consumers care about is one main question – will this bring my bills down soon? The Scottish government isn’t convinced.
The First Minister says it’s all baloney. He says it won’t have the desired impact on bills and could risk reducing employment in the North East of Scotland – and that’s worrying.
Earlier this month financial heavyweights PwC released the Good Growth for Cities Index. The report provides a compelling snapshot of how Scotland’s largest three cities are faring in terms of economic growth and other factors like, quality of life.
Aberdeen has dropped six places from 31st to 37th. And while this is only one report, when you read that Aberdeen is falling down economic league tables, it’s really worrying when you consider the bigger picture. It’s no wonder trade unions are concerned.
I hope Aberdonians can take their oil and gas expertise and apply it to more varied opportunities in the city’s professional, scientific and technical sectors, creating newer career paths. Otherwise Aberdeen’s future economic outlook is looking uncertain.
To create a fair and thriving economy for Scotland, there’s a real need to balance the public interest and the interests of businesses.
We need to ensure that companies can continue to make profits in order to keep driving economic growth, while also creating an environment for the good folk of Aberdeen and beyond to have healthy incomes and stable careers.
While the politicians do what they do best – disagree – it’s hard to cut through the noise and get to the crux of the issue. Will the suspension of new oil and gas licenses and the concerns for jobs be mitigated by a new, publicly-owned energy company?
Environment group Friends of the Earth Scotland seems convinced that it could, but only if the focus is on bringing energy generation into public hands rather than lucrative funds for private investment managers.
Detail is important, and at the moment the UK government is keeping its cards close to its chest. But that indicates Aberdeen’s economic fortunes are moving down the league tables, a solution needs found and fast.
The real cost of a tip
When you leave a tip in a restaurant, do you ever wonder if the hard-working restaurant staff will ever receive it, or if it’s just going to line the pockets of the owners?
New UK-wide legislation on tipping comes into force on October 1 and will shake up tipping culture.
The good news is that staff will now receive 100 per cent of their tips going forward, and there will be no deductions to cover the cost of fees and administration.
The bad news is that staff could pay up to 32 per cent tax on this income. This will vary depending on how the tips are earned.
The Tipping Act states that fairness is at the heart of the legislation, though for employers the devil is in the detail.
Hospitality businesses are already under pressure and this legislation will mean meeting new obligations and implementing new processes to ensure they comply with the legal requirements.
They’ll need to create tips policies, ensure fair distribution of tips in a timely fashion, keep meticulous records and much more, or they could face an employment tribunal.
I’m sure some operators will worry about this administrative (and potential cost) burden.
Personally though, I do still think it’s a good move.
It’s right and proper for staff to receive their tips, and I’m sure the two million workers who are set to take home an estimated £200m more will wholeheartedly agree.
It Made Me Laugh
Auto-Pods and public giggles
Driverless vehicles that look like something form a sci-fi movie are being trialled in the Highlands.
With names like ‘Itsy Bitsy Teenie Weenie Driverless Machinery’, these things have to be seen to be believed.
The Star Wars-esque vehicles will soon hit the road in two Inverness locations in a trial that aims to highlight the benefits of low-cost, energy efficient passenger transport.
A comical-looking four-seater ‘Auto-Pod’ will take passengers on a 750m-long route between Inverness Airport and Dalcross railway station. Meanwhile a larger 10-seater shuttle bus will provide transport around the University of the Highlands and Islands’ campus in Inverness.
Who knows – maybe we’ll see one of these heading down the main street in your city or town soon.
It Made Me Weep
End of the line in Livingston
I was sad to see that an engineering stalwart in the east of the country has been forced to place more than 440 people at risk of redundancy in a further blow to Scotland’s manufacturing centre.
Mitsubishi Electric has been making heat pumps for three decades and the firm has announced 443 out of its 1,600-strong Livingston work force could be axed.
Unfortunately, Scotland’s engineering and manufacturing sector has a long history of tossing highly skilled workers on the scrap heap as soon as times get tough.
Mitsubishi maintains it is committed to manufacturing in Livingston – but I don’t buy it. It’s about time the government put the same commitment into Scotland’s economic growth as the Livingston workers have over the last thirty years.
