Scottish Oil Rig Decommissioning Costs Should Be Paid For By London, Says SNP Minister

Posted: 17/04/2012 13:07 Updated: 17/04/2012 13:07   PA

A future £30bn bill for decommissioning Scottish oil rigs should be paid for by the UK government even if independence goes ahead, Scotland's energy minister said today.

Fergus Ewing told MPs that Westminster had a "moral obligation" to foot the massive North Sea clean-up costs that have been predicted for 2040.

Appearing before the Commons energy committee, the minister insisted a pro-independence referendum win, which is likely to shift the bulk of revenues from North Sea oil to the Scottish Parliament, did not wipe out the past benefits the UK had reaped from the rigs.

Mr Ewing said: "Plainly, given the UK has received £170 billion from oil by rigs that have to be decommissioned, then the UK received the revenue in respect of those rigs.

"It would seem to us reasonable to suggest that having received all the revenue... the costs of (the) accrued revenue, which was accrued entirely in the UK, should in principle be the UK's responsibility."

He added: "In principle, given that the UK has received substantial revenue from these rigs, it seems correct that the UK has a moral and certainly a legal obligation to be responsible for decommissioning."

When pressed further, Mr Ewing said it was possible there could be some form of proposal to share some of the costs.

John Robertson, Labour MP for Glasgow North West, said it was "incredible" that the Scottish Parliament wanted all the revenues from oil reserves while making sure the UK Government "pays for any clean-up in 28 years' time".

He said: "I find that absolutely incredible. Scotland has benefited as much from oil as any area within the United Kingdom."

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A future £30bn bill for decommissioning Scottish oil rigs should be paid for by the UK government even if independence goes ahead, Scotland's energy minister said today. Fergus Ewing told MPs that...
A future £30bn bill for decommissioning Scottish oil rigs should be paid for by the UK government even if independence goes ahead, Scotland's energy minister said today. Fergus Ewing told MPs that...
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20:30 on 21/03/2013
So if Scotland does get its independance and claims the oil, surely the clean up should be their responsibility as should the bail out of RBS, that all of the UK is paying for...
13:43 on 19/04/2012
OK.
On your way out please repay the Darien relief funds - with compound interest if you don't mind!
08:03 on 19/04/2012
I'm more concerned about the clean up costs of decommissioning our nuclear reactors and the fact that we're giving all the contracts to US companies.

http://bellacaledonia.org.uk/2012/01/19/decommisioning-dounreay-babcocks-or-starbucks/
12:44 on 18/04/2012
The Scot's feathering their own nest before Independence. And who will vote in parliament on English affairs? Scottish MP's of course.
ZEB
never fear the zeb is ere
11:00 on 18/04/2012
As the oil rigs belong to the oil companys and not the UK goverment, it's up to the oil and gas companys to decomission them, and no one else.
It seems that the Scots have the very same problem we have in England we vote in people with only a pea, for a brain, and no common sense.
just saying
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Mickey Mouse 1
There are no lies or deceit on a chess board.
09:25 on 18/04/2012
Rubbish, the rig owners should pay for all decomissioning costs. If the government was stupid enough not to take this into account when the contracts were signed, the people responsible should be made to pay, not the taxpayer.
22:34 on 17/04/2012
Here we go - Scottish Independence and a generation or more of fruitless, futile bickering.
18:51 on 17/04/2012
the union of GRET BRITAIN + SCOTLAND was formed from England bailing out Scotland. Can i have my descendants money back? seeing as you want to renege on your contract,i want my money back with interest. What-who financed Scotland before the oil? very short memory hey? what happens when the oil runs dry? what happens when we move to renewable souces and banning fossil based fuels?
19:07 on 17/04/2012
hahahahaha Scotland has massive renewable energy resources, the largest in europe. Your barking up the wrong tree matey. As for your ancestors money, read my reply to "The British Patriot" below, then work out how you will afford our massive compensation claim.
19:39 on 17/04/2012
you also seem to forget that England is sitting on trillions of tonnes 200+ years of mineable Coal inland and out to sea + Shale Gas if all else fails. we too have the Severn, The Ouse, Trent Humber, Thames, Dart ,Plym to name a few for tidal power generated Electricity. We too have major wind farm projects, We too have Solar power initiatives on every domestic & business dwelling as there is just enough sun here. We can grow swathes ( 2 crops a year ) of bio fuel rape seed etc We have yet untapped oil deposits in the Irish sea(not yet accesable)/English Channel/scily isles. We have major international ferry,tunnel links to the continent and major multiple ports for import / exporting. Scotland will need to find its own feet in a changing world if divorce is what Scotland wants.
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23:49 on 17/04/2012
Your grasp of history is rather flawed. Do try again once you have educated yourself.

As for this "who pays to get rid of the rigs" nonsense, I dont think any of it should be the responsibility of anyone other than the companies who have been raking in all the profits. That rather neatly lets UK and Scots governments out of it.
14:14 on 18/04/2012
West lothian, absolutly correct.
18:47 on 17/04/2012
ok shrek ,if you want tit for tat,lets go the distance. we want ALL the difference in costs back + interest for the past 300 years inc the initial bailout pre UKsCOTLAND union. That has been estimated at over 5 trillion pounds!!!!!!!!!!!!!!!!! in todays money. you were saying?
19:03 on 17/04/2012
Well, fair enough we will have....

all the oil revenues since 1970 ......10 trillion
mercenery bills for all our troops who fought and were killed in disproportionately large numbers for the UK......2000 trillion
energy from our reactors......500 billion
site fees for trident.............100 trillion
site fees for early warning radar stations.....500 billion
site fees for all military bases.....5 trillion
cleanup fees for our beaches that have been contaminated by the MOD.......5 trillion
research and cleanup fees for contaminating one of our islands with the biological weapon anthrax......15 trillion

.....loads more and all plus interest.

I made the figures up, just like you. Do you like them:)
19:20 on 17/04/2012
take a look at the figures from recorded history and recent economic data (past 80years) Scotland has only been a slight net contributer since the early 1980's . Scotland was dependant on our world trade links for its economy as Scotland's venture in the Panama ended in disaster. We offered a bailout package in return to settle differences and join in union which Scotland accepted willingly. WHY HASNT THERE BEEN A PRIOR RUSE? because economically speaking,Scotland was actually better off in Union benefitting from all the world trade perks. IT IS ONLY NOW that the nationalists have managed to cajole the electorate into thinking your better off alone. I agree that you may be better off alone short term and the figures prove thisBUT! what happens when the oil goes? the banks go belly up? bad crop yields (climate determined) Natural disaster. Wht insurance and friends will Scotland rely on? after all you want a divorce but want to still share the bed? lol
After all the difference is calculated over the past 300 years not inc nuclear/army (i can get into that later ww II et al) then the sum is a staggering 5 trillion Pounds sterling in todays conversion. please do your own research into this history and you maybe suprised
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tc-byrne
Victoria Concordia Crescit
16:22 on 17/04/2012
And what Happens if the UK goverment says No, will they "Rue the Day" Fergus.
18:11 on 17/04/2012
....well, your water charges will go up:) I can't wait till that meter starts whizzing round....
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tc-byrne
Victoria Concordia Crescit
18:28 on 17/04/2012
Well thats nice of you thank you for your kind thoughts, but 2040 a long way off so I dont think I'll worry about it just yet, by the way Gods been raining on his green and pleasant land for 3 days off and on so we're not dying of thirst, and another thought came to mind you'll still be under the sovereignty of the UK goverment.
22:21 on 17/04/2012
We dont need your water,Why do you think we have used the oil revenue to build some off the largest water reservoir in EU for,YOU HAVE NO INDUSTRY,apart from MOD contracts and Scotch,As for your oil, you can keep what ever is legally yours,which might not be much! Its a shame a beautif country like Scotland has got people like you and snp in it!!
15:34 on 17/04/2012
Why isn't this the responsibility of the oil companys?
18:28 on 17/04/2012
Good question! Perhaps when the rigs were sold off there was a clause that left the cleanup with the UK (not Scotland I must add) I do know that the UK taxpayer is still responsible for some BritishTelecom pensions so it seems our MPs are really crap negotiaters
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tc-byrne
Victoria Concordia Crescit
19:01 on 17/04/2012
Yeh just like the SNP, didn't do to well negotiating the Scotland Bill,still one out six not bad eh!
15:15 on 17/04/2012
It's not independence if you still have someone else paying your bills.
18:15 on 17/04/2012
hmmmmm, the UK sends billions to the independant nation of India due to the mess that was left there by the brits. Dont think of it as a Scottish bill, think of it more as a debt due to Scotland, then your on the right track.
22:25 on 17/04/2012
Who do you think bailed out Scotland for 280 years before the oil came!
14:21 on 17/04/2012
How much has Scotland benefited from north sea oil ? They have enjoyed a better quality of life from the masses of work it has bought to Scotland.

They have already stated that if they get independence they want the revenue from it. Let it be a condition, that if we pay for the clean up, we keep the revenue from it. Simple !!!!!!!!
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tc-byrne
Victoria Concordia Crescit
16:18 on 17/04/2012
@raylehmann;
Well I cant see how anyone could argue with your comment and point of veiw, fair due's.

But then the Scotsnat haven't arrived yet!
18:22 on 17/04/2012
Yes, Scotland will get future revenues, and yes, the UK will pay for the clean up. I can understand why you are pissed though. It cant be nice having to give back the large subsidy you all receive from Scotland.
19:10 on 17/04/2012
What subsidy ? The only real industry you have up there is whiskey. Remember the oil fields are out in the ocean, not in Scotland.
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09:11 on 18/04/2012
wow, have just read all your posts on this subject, I'm Scottish and so far in favour of independence, but you are giving us a bad name !