North Sea funding package to aid sector

A £62 million energy transition fund has been set up to help protect the oil and gas industry from the dual economic impacts of a global downturn in demand and coronavirus.

Announcing the new multimillion-pound boost at the Scottish Government’s daily briefing yesterday, First Minister Nicola Sturgeon said the sector was in “crisis” but the new cash would help support jobs and businesses over the next five years.

Ms Sturgeon said the Scottish Government wanted to do “everything we can” to support the oil and gas industry, and highlighted the importance of a recovery programme that recognises the value of individual sectors regionally.

“The impact of this crisis is being felt across our economy but we know that some sectors are particularly affected,” she said.

“For example, Scotland’s energy sector is facing a massive decline in global demand. And that is having a very serious impact on our economy.

“The Scottish Government is determined to do everything we can to support our energy sector through this crisis.

“We want to protect jobs and businesses – in the north east and across the country.”

Addressing the GDP figures, the first minister called on the UK Treasury to issue a further signal of extended support for businesses and workers.

She said the only alternatives to extended support would be businesses forced to reopen before it is safe, or staying closed and risking jobs.

Statistics will be published on Scotland’s labour market on Tuesday that will take into account the first full month of lockdown, and the first minister warned there is likely to have been a “significant impact” on jobs.

Ms Sturgeon repeated her call for an extension to the Brexit transition period so businesses are able to concentrate on the post-Covid recovery and revealed she had joined with the Welsh First Minister, Mark Drakeford, in writing to Boris Johnson to request a delay.

She also used yesterday’s daily briefing to announce a further three people had died overnight from coronavirus in Scotland, taking the total death toll to 2,442.

There were 27 new positive cases, taking the total to 15,709, while 914 people are currently in hospital with confirmed or suspected Covid-19, an increase of five.