BCC urges Burnham to exploit North Sea oil and gas to avoid mass job losses
The director of the British Chambers of Commerce has called on incoming PM Andy Burnham to allow the use of remaining North Sea oil and gas fields to prevent mass unemployment in Scotland and the north-east of England.
Shevaun Haviland, director of the British Chambers of Commerce (BCC), has urged Andy Burnham to be ready to exploit the UK's remaining North Sea oil and gas resources to avoid mass job losses in Scotland and the north-east. The decision on whether to allow extraction at the Jackdaw and Rosebank fields is now expected to fall to a Burnham administration.
Speaking ahead of a BCC conference in London, Haviland said that instead of using those fields, the UK is importing liquified natural gas, which is more expensive and less environmentally friendly. The BCC represents 19,000 businesses employing 8 million people. Haviland, a former senior civil servant, said British firms back the transition to clean energy but noted that the switch to offshore wind is not creating enough jobs to replace those lost as the North Sea industry declines, and local suppliers are being shut out.
She warned there are concerns from chambers in Aberdeen and the north-east that the sector could go the way of coal mining, leaving millions out of work. Haviland also called on Burnham to address the "cost of doing business crisis". BCC research shows business costs have risen 70% in a decade due to tax, regulation, the minimum wage, and Brexit trade frictions.
"Businesses don’t feel confident to invest, because business costs are so high, so they pull back from investment, and it’s a vicious cycle," Haviland said. She urged the new government to reduce costs such as business rates and energy bills. Regarding additional taxes on business, she warned that would be a "road to ruin".
On Brexit, Haviland echoed recent comments that despite the costs, businesses do not want to reopen the question of reversing the decision or rejoining a customs union. She said they prefer "pragmatic, specific solutions". A planned EU-UK summit has been postponed until Burnham takes office. Businesses want progress on an agrifood deal, a youth exchange programme, and alignment with the EU's carbon border adjustment mechanism.
