Source · Select Committees · Scottish Affairs Committee
Recommendation 18
18
Accepted
Establish principles for a just industrial transition drawing on lessons from the Grangemouth case.
Recommendation
In its response to this report, the Government should outline what has been learned from this case and what can be done to ensure that comparable industrial transitions will be better managed in future. Having consulted trade unions and communities during its consultation on Building the North Sea’s Energy Future, we recommend that the Government set out principles in its consultation response which outline the conditions and actions that constitute a just transition for workers and communities and draw on best-practice examples. These principles can act as a guide and create an expectation for transitioning high-carbon companies to produce an exit plan that benefits workers and communities. We recommend principles that emphasise the importance of early government intervention in industrial transition, proactive engagement with workers and communities, and which aim to maximise good, long-term and well-paid jobs. (Recommendation, Paragraph 125)
Government Response Summary
The government agrees with the recommendation, affirming its commitment to a fair and equitable transition for workers and communities. It will commence a "Future of Fuels programme" and launch a call for evidence to inform the UK's long-term strategy for the downstream oil sector, which will guide future transition management and support jobs and communities.
Government Response
Accepted
HM Government
Accepted
The government agrees with this recommendation. We agree that lessons should be learned from Grangemouth to manage the impacts of industrial transitions on workers and communities. The UK government recognises the economic opportunity that the clean energy transition presents to the UK in, and the government’s Plan for Change sets out our ambition to make Britain a Clean Energy superpower. We are committed to delivering a fair and equitable transition for our highly skilled workforce and by enabling workers to seize new opportunities in clean energy we will ensure that no community is left behind. At the same time, we will continue to support the vital role that oil and gas will play in the coming decades, recognising its importance in maintaining energy security during the transition. As set out in our responses to Recommendations 12 and Conclusion 13, the North Sea Future Plan and Clean Energy jobs plan provide clear actions to support the transition, including measures to ensure jobs are high-quality, well-paid, stable, inclusive and safe, with good training, progression opportunities, and voice at work. These plans detail how this government is working with industry and unions on initiatives like the joint UK and Scottish Government package to support the transition of North Sea workers, the expansion of the Energy Skills Passport, and the development of a fair work charter to ensure clean energy jobs are always good jobs. Oil and gas workers’ skills are a powerful asset for the country that is vital to our energy security and foundational to driving future growth. Thanks to the clarity and ambition of our Clean Energy Superpower Mission, the number of jobs supported by clean energy industries could almost triple in Scotland. As skills policy is delivered by national governments, the UK government has committed to working with devolved governments to support this and has already supported workers through funding a bespoke Training Guarantee in Grangemouth. In our North Sea Future Plan, we set out a plan to secure and renew the North Sea’s place as Britain’s powerhouse – that will both protect jobs in our oil and gas heartlands and build the next generation of good jobs. For further details on how we are actively scaling up our North Sea clean energy industries, supporting supply chains and delivering a fair and prosperous transition for the oil and gas workforce through the North Sea Jobs Service, please refer to our responses to Recommendation 12 and Conclusion 13. We are also commencing work on a Future of Fuels programme for the downstream oil sector, which will guide how we manage the transition, protect energy security, and support jobs and local communities. As announced in the Budget, we will shortly launch a call for evidence to help inform the UK’s long-term strategy for the sector. This will seek industry views, including those in the wider supply chain, on the opportunities and barriers to the transition, the risks facing the sector, and the types of support needed to deliver a managed and competitive transition.