Calls for North Sea oil tax breaks to avert crisis

CALLS will be made for targeted tax breaks for the North Sea’s oil and gas sector to avert a crisis in the industry, in a debate in parliament tomorrow.

Shadow Chancellor Ed Balls is set to join Jim Murphy in the Granite City in a bid to help secure jobs in the industry. Picture: PA

Aberdeen North Labour MP Frank Doran will use a Westminster Hall debate to claim that the oil and gas sector has caused problems for itself as it tries to cope with the downturn in the industry as the price of a barrel of oil has collapsed to below $50.

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His debate comes as shadow Chancellor Ed Balls is set to join Scottish Labour leader Jim Murphy in the Granite City in a bid to help secure jobs in the industry.

Ahead of his debate Mr Doran said: “This is an incredibly important issue not just for the north east of Scotland but the whole of the UK.

“The sector is facing increasing problems one of which is the rising costs of exploration which they face but some of the problems comes down to the way the companies have managed thing.

•Comment: North Sea oil at point of no return

“This includes failing until recently to have proper apprenticeship training and also some of their purchasing methods are unnecessary.”

But he added: “The industry’s calls for tax cuts are legitimate. Successive governments have just used the sector as a cash cow.

“But I would like to to see targeted tax cuts which encourage important areas such as investment, research and development.”

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