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survey finds complacency not an option

The UK must not be complacent if it wants to ensure the oil and gas industry remains anchored in the North-east. That is one of the key messages in a survey by Aberdeen & Grampian Chamber of Commerce.

The 12th Oil & Gas Survey sponsored by law firm McGrigors and carried out by Strathclyde University’s Fraser of Allander Institute, warns that while there is a general rise in business optimism confidence remained weak with concerns about costs, investment and decommissioning.

The survey identified that respondents feel trading conditions have been, and will continue to be, better internationally than in the UKCS and that the role of Aberdeen and the North-east as a major regional oil services centre cannot be taken for granted.

On the one hand the North-east’s strongest assets relating to skills, knowledge and support services were recognised but against that the survey identified the inadequacy of the local infrastructure – most noticeably transport.

Robert Collier, Chief Executive of Aberdeen & Grampian Chamber of Commerce, said that while the cluster benefits remain compelling for business, the findings are an early signal that capital is being invested elsewhere and the North-east needs to fight harder to attract more investment.

“The most interesting aspects relate to the attractiveness of the region for investors and confirm that the Aberdeen City and Shire (ACSEF) agenda is right on the button,” he said.

“There are clear signs of concerns about the inadequacy of the transport infrastructure, which confirms that the Transport Campaign which has been launched by the Chamber is timely and appropriate.

“The survey also points to concerns about the local facilities in the city centre which continues to be a concern for not just the oil industry but for the whole business community and the residents of the city and the shire.”

Mr Collier said that while the transport issues were long standing several improvements were imminent.

“There are certainly things starting to happen now,” he said. “The Aberdeen Western Peripheral Route, despite the recent delay, is certainly on the books and there are plans for the Haudagain roundabout and for a third Don Crossing.

“The airport is also getting very close to approval for the capital for the runway extension.

“All those things which have been talked about for years and years are coming to the point where they are going to become a reality so there are significant improvements to the transport infrastructure.

“There are some which are not on the horizon - for example the journey time from Aberdeen to Central Scotland by rail continues to be an issue. It takes two and a half to three hours to get to either Edinburgh or Glasgow. That tends to reduce the number of trips the decision makers from this region make to these place to where the funds are, where the government departments are, where some of the decisions are made. These issues will be campaigned on in the AGCC transport campaign.”

Commenting on the survey Peter Sharp, a partner at McGrigors, added: "The hope has to be that there will be more effective civic leadership in Aberdeen in the future. I think the opportunities renewables present will be lost unless Aberdeen wakes up to the fact that it is in competition."

The report is available on the Chamber webiste: www.agcc.co.uk