The “Danny Tax” - Energy issues and local employment

Any regular user of trains in or out of Nairn station will see off shore workers coming or going from Dyce airport. One wonders just how many offshore workers live in Nairn, a couple of hundred maybe? Most folk will know one or two or perhaps have family members offshore. There seems to be genuine concern that a ‘tax raid’ devised by Danny Alexander will have a negative impact on North Sea activities. Obviously, with the Holyrood election underway the politicians and journalists are making a meal of everything but as we say there is real concern manifesting itself. Here’s how the Scotsman played it earlier in the week:

“LIBERAL Democrat Chief Treasury Secretary Danny Alexander has bragged to a group of businessmen that the controversial £10 billion tax raid on North Sea oil revenue was his idea, The Scotsman can reveal.” More here.

It can be fair to say that Danny’s tax measure will not go down with those off-shore workers who are his constituents. When making their choice at the ballot box they might not be so inclined to put a tick against the yellow ConDem birdie box and may be in the process of influencing others not to do the same. The Liberals are in free fall, could the "Danny Tax" be the very thing that pushes them to the bottom of the poll in this constituency?

We’ll have to wait and see if the predictions of job losses come true but this will be a worrying time for many. Alex Salmond thinks the ConDem government is taking quite a risk. He is quoted in the press and journal:

“They’re playing roulette with the livelihoods of workers in the north-east of Scotland.

“It is to Danny Alexander’s eternal shame because there are workers in his constituency and he’s gambling with their livelihoods as well.” More here.

No doubt this row will rumble on through the election period but this uncertainty over this sector of local employment isn’t needed at a time when other economic blows are starting to hit home in the Inner Moray Firth area.

I believe it was last year that Norbord workers along with colleagues at other factories in Europe staged a one-day ‘strike’ to draw attention to the plight of their industry. It was a strange work stoppage really because it was backed by the management. They were attempting to draw attention to the price they have to pay for their raw material. There is now tough competition for wood supplies from the energy industry and Norbord are suffering. The Press and Journal states:

“An Inverness-shire company which manufactures wood panels claims it could be put out of business because they do not receive the same subsidies as the biomass industry.

Norbord employs about 130 people at its factory at Dalcross, near Inverness Airport.

But it claims to have been put at a disadvantage because of subsidies for the renewable energy industry.” More here.

Going green is no simple business in our complicated economic world. Subsidies to encourage heating from burning biomass would seem on the face of it to be a good thing but not perhaps if it were to mean Norbord closing and 130 people losing their jobs. It if Norbord were no longer making their products then perhaps the material would have to come from further afield, raising costs for the construction industry and others? There are no easy answers. Perhaps Green Dad, Donny and Eleanor (the two leading green candidates and Gurn readers) might have something to say about how local employment is affected by energy issues and whether they would support the Danny Tax on the North Sea oil and gas industry.