Union leaders want tax cuts to save oil industry

Union and industry representatives have demanded the UK Government slash taxes in a bid to save the North Sea oil industry in the wake of a sharp fall in oil prices.

Reports suggest the oil industry in Scotland could disappear unless swift action is taken, as tens of thousands of job are at risk and the sector is "close to collapse" as the price of a barrel of oil has tumbled in just a few months to around $60 a barrel.

"We are keen that the big picture is looked at - as this isn't just about ­workers' jobs," said Jake Molloy, regional organiser for the National Union of Rail, Maritime and Transport Workers (RMT).

"We have seen what happened with the coal mining industry, and the same fate could await the oil and gas industry if we don't manage it properly.

"So we are keen to see government intervention to address that, as if we don't address that then it is serious for everyone."

Oil taxes imposed by the Conservatives and the previous Labour government meant the UK was unable to compete effectively with other oil-producing nations, Molloy added.

"I don't want to suggest oil and gas companies shouldn't be paying their fair share of tax - they absolutely should - but you can't have a situation where they are hiking up tax during the good times and not providing redress during the difficult times," he said.

"This is no longer just about money and jobs, it is about sustaining production of our natural resources.

"If we don't manage it then you will see the same thing happen to oil and gas as we witnessed with the coal mining industry.

"We are sitting on millions upon millions of tonnes of coal, and yet we are importing millions of tonnes of coal. You cannot have that situation with oil and gas surely."