Labour’s energy policies led to ‘sector-wide flight’ and will decimate jobs, union warns

Labour’s energy policies have led to a “sector-wide flight” from the North Sea and Grangemouth – and could decimate jobs, a leading union will warn today.

A motion presented by GMB Scotland at Scottish Labour’s annual conference will call on the Scottish and UK Governments to open the door to new oil and gas extraction while increasing investment in renewables.

The motion, seen exclusively by The Sunday Post, is the latest in a list of headaches for the Labour leadership during a conference that has been hit by protests and a marked drop in energy following weeks of disastrous polling.

Current predictions have Labour on track to suffer its worst result in the history of devolution at next year’s Holyrood election.

Knives out for Starmer

We can reveal Prime Minister Sir Keir Starmer will address the closure of Scotland’s only oil refinery at Grangemouth when he makes an appearance today.

But it will come at the close of a conference weekend where leaders from multiple unions have openly criticised him for “failing” Scots workers.

Labour’s flagship energy policy at the last general election was the promise of a new-state owned company called GB Energy.

© Jane Barlow/PA Wire

The firm will not supply power to households and will instead seek to invest cash in renewables alongside private companies.

We previously reported warnings from leading experts that GB Energy could take years to be delivered – possibly longer than Labour is in power.

Meanwhile, industry leaders warned the plan to fund the company by hitting businesses with a windfall tax and then asking the same groups to invest does not make sense.

Cycle of crises

The GMB motion states increased taxes on oil and gas extraction have caused business to flee Scotland’s energy industry, while renewable jobs have not materialised at the rate at which oil and gas jobs have declined.

It notes this is exemplified by a “cycle of crises” at yards in Arnish and Methil, where significant infrastructure improvements are needed to ensure they take advantage of wind developments following a takeover by Navantia.

It asks delegates to back the union’s view that a lack of of domestic production will not only hollow out successful sectors of the Scottish economy and decimate livelihoods but will also undermine energy security by increasing the reliance on foreign imports.

Those attending the conference will be given the opportunity to call on Scotland’s two governments to increase investment in renewable supply chains.

© Andrew Cawley

The motion also calls for stricter conditions on public money and energy licenses – including trade union recognition and access, public shares in developments, and the use of domestic content.

Speaking at the Labour conference on Saturday, Roz Foyer, general secretary of the Scottish Trades Union Congress, accused governments at Holyrood and Westminster of “failing” workers.

Redundancy notices have already been sent out to hundreds of employees at Grangemouth as owners Petroineos prepare to close the refinery.

Not too late

Foyer insists there is still a “viable option on the table” for Grangemouth, saying the union Unite has proposed that it could be used as a production centre for sustainable aviation fuel.

She said: “My key message today to both our governments is this – do your jobs. Stand by Scotland’s energy workers.

“If you fail to save the jobs in Grangemouth, if you fail to halt this closure and invest in a real just transition, then you will be failing workers right across Scotland.”

Grangemouth workers and Unite members targeted the opening day of the Labour conference on Friday, laying 400 hard hats on the ground to represent every job that will be lost.

Speaking during the demonstration, Unite general secretary Sharon Graham warned the UK’s oil and gas workers cannot become “the new coal miners”.

When the closure of the refinery was announced last year, the Scottish and UK governments jointly committed £100 million for the local area and pledged to work together on the Project Willow report on the future of the site.

More recently, Scotland’s First Minister John Swinney announced a further £25 million to ensure a “just transition” for the area.

Sarah Boyack, Scottish Labour’s energy spokeswoman, said: “Oil and gas will be part of Scotland’s energy mix for decades to come.

“It’s absolutely right that there needs to be a comprehensive plan on jobs, and that’s exactly what Labour is delivering.

“Scotland is at the forefront of the race to clean energy and deliver jobs, wealth and opportunity for workers for years to come.

“Only Labour has a plan to unlock Scotland’s potential as a clean energy superpower and deliver good jobs, lower bills and greater energy security for Scotland.”