Getting the job done

Migrants to Scotland enrich our cultural heritage and provide a vital contribution to our local economy.

These are the latest findings from Scotland’s Chief Statistician published last week showing that half of all migrants aged 16 and above in Scotland are qualified to at least degree level.

The data based on the 2011 Census also shows that migrants (anyone not born in the UK) aged between 16 and 74 were as likely to be working as the rest of Scotland’s population as a whole. It shows that the migrant population which at seven per cent of the population (369,000) is well educated, works hard, is in good health and benefits our society.

Misconceptions around what migrants travel to Scotland to do fall in the face of the evidence that shows that most of our migrants are here to study, work and contribute. The statistics highlight that migrants who have come to Scotland from other European countries within the last 10 years are most likely to be benefitting the economy, and of those that have come from outside Europe who are less likely to be economically active, almost a third are here to study.

Recruitment is a big issue in my constituency. The Aberdeen and Grampian Chamber of Commerce (AGCC) in their 2015 manifesto state that the North East has among the lowest levels of unemployment in the UK, but workers are required to grow the businesses there. They identify that over 54 per cent of local businesses have recruited foreign staff in the last year due to the lack of suitable UK candidates.

Research conducted by PwC has found that with the region remaining an oil and gas hub for the future, an additional 120,000 workers will be needed in the region by 2022. It is unlikely that all of these workers will come from the UK.

Scotland has skills needs that are distinct from the rest of the UK, and a large, internationally recognised higher education sector that is competing to attract high quality staff and students worldwide. As the country continues to recover from recession, skills shortages have been identified in the digital, construction and hospitality sectors which need to be addressed.

Last week the Scottish Government voiced its support for the reintroduction of post study work visas to allow overseas students to stay in Scotland for a defined period of time on completing their studies. Since the UK Government announced the closure of the post-study work visa route there has been a significant fall in the number of students from countries which traditionally send high numbers of students to Scotland.

It is clear that current UK immigration policy is too heavily influenced by the desire to reduce the number of incoming migrants, with a strategy that fails to recognise the needs of Scotland. Leaders in education and business have spoken out on this point.

Professor Pete Downes, Convener of Universities Scotland has said: “As it stands, the UK’s immigration policy is anti-competitive, it is a deterrent to highly-skilled students and staff and it is hurting our universities.” The Post-Study Work Working Group have also said there is “overwhelming” support for its reintroduction in Scotland.

Migration is part of the modern world and is a response to our economic needs, and to those of the migrant. Thousands have come to my constituency in recent years, living and working for the local community, because we need people to fill the vacancies in many of our important industries.

Scotland has a large, established migrant community which is essential for the vitality of areas such as the North East – long may it continue.

Oiling our future

The North Sea oil and gas sector in Scotland has been hitting the headlines over the past few months as the global oil price fluctuates and thousands of jobs hang in the balance. The issue is one of much concern to people across Banffshire and Buchan Coast.

Last week I spoke in a debate addressing the challenges facing the sector and what the Scottish Government is doing to support it. But this work is being done despite a clear lack of intention from Westminster to improve the situation and invest in our future with meaningful action.

In January, the First Minister set up the Energy Jobs Taskforce to maintain jobs where possible, and to mitigate the potential impact of any losses. But the Oil and Gas UK Activity Survey published on 24 February has highlighted the problems with investment and exploration that have been created by a lack of movement on the part of the UK government, including a refusal to review high tax rates.

Sources within the industry have been scathing in their view of the situation.

Malcolm Webb, Chief Executive at Oil and Gas UK, writing in Energy Voice on January 5th said:

“There have been times when I have been truly bewildered by the way in which successive governments have treated the UK offshore oil and gas sector.

“We have experienced repeated and increasingly aggressive tax hits, pushing taxation rates on production up to a maximum of 81 per cent, while at the same time an under-resourced, overstretched regulator failed to deliver the expert and engaged stewardship which this mature and complex basin so badly needs.”

He also commented on the UK Government’s ‘revolving door’ of ministers responsible for oil and gas – with 35 different Energy and Treasury ministers taking responsibility for the industry in the last 14 years.

It is for this reason that the Scottish Government has supported calls for the UK’s key oil and gas industry figures to be moved to Aberdeen to tackle the issues. Ministers have backed a letter to George Osborne from the independent N-56 business organisation, ahead of the UK Government Budget, setting out a “five-point plan” for the industry.

This includes short-term tax breaks, a ­hydrocarbon investment bank, a Norwegian-style long-term approach and more support for offshore fracking, and the Aberdeen city base for oil industry policy and decision makers – where development of the industry is properly understood.

Alex Russell, Chair of the Oil Industry Finance Association, writing in the National last month called the UK Government “very slow”, adding:

“They are trying to time it just prior to the General Election. They are playing politics with the future of the North Sea oil industry… the pace of change from Westminster has been just dire, absolutely dire.”

It is important to emphasise that the Scottish Government has used every means within its power to support the oil and gas industry in Scotland. Last November, the Oil and Gas Innovation Centre (OGIC) was launched, providing funding of £10 million over five years. In 2013/14, Scottish Enterprise provided £15.1 million in funding to the oil and gas sector, and the economic agency now has 344 Oil and Gas companies on its portfolio.

Now the UK Government needs to act.

George Osborne announced in his Autumn Statement a reduction in the supplementary charge by two per cent and stated the UK Government would “aim to reduce the rate further in an affordable way”. However no details have been given about the scale of future cuts or when they will occur.

North Sea Oil still represents huge opportunity for Scotland but we need to make sure that everything is being done to ensure the industry is fully supported in Scotland for now and for years to come.