The UK Government has reaffirmed its pledge to invest in the North Sea oil and gas infrastructure.

The commitment was made by Chief Secretary Greg Hands after repeated calls by Scottish Economy Secretary Keith Brown to honour pledges made in last March's budget.

In the budget, Chancellor George Osbourne promised to use the UK Guarantees Scheme for oil and gas infrastructure, which will help secure new investment in assets of strategic importance.

Mr Brown said he received assurances from Mr Hands during a meeting in London on 30 June that his work will now "progress with speed".


"The Scottish Government strongly believes that the North Sea oil and gas sector can have a bright future for years to come. We are doing everything in our powers to bring this about but it continues to require a concerted effort by government, industry, and regulator," Mr Brown said.

"I aim to listen and, where I can, to act in the best interest of this important industry – however, the UK Government retains control of the key taxation levers affecting the sector, and must take the action needed to protect jobs and enable the industry to best deal with the challenges it faces.

"Despite repeated requests from the industry and the Scottish Government, there has been little progress on this issue so far. That is why I am pleased to have received the necessary assurances from Mr Hands that work on loan guarantees to support investment in offshore infrastructure – which are essential for the industry to secure funding at this moment in time – will now proceed with speed. The UK Government must now deliver urgently on this promise."

(LM/CD)