A Scottish Government minister has told a room of senior energy sector bosses that she wants to build a better relationship with businesses.

Speaking at an Aberdeen & Grampian Chamber of Commerce Business Breakfast, Net Zero and Just Transition Secretary Mairi McAllan said she was “keenly aware” relations between business and the SNP had “not always been as strong as we would like it to be”.

The minister was responding to the latest Energy Transition Survey, published by the Chamber, ETZ Ltd and KPMG, in which respondents said no political party had the best policies in place for delivering the transition, showing more work is needed at both Holyrood and Westminster.

Ms McAllan continued: “The report from the chamber demonstrates that both the UK and Scottish governments have to work to rebuild these relationships, and ensure that we are good partners to business.”

Ms McAllan also said the government was focussed on seizing the opportunities the energy transition presents.

“Fundamentally, the successful transition of the oil and gas industry to renewable energy, I think, will be the bellwether of a just transition in Scotland," she said.

“We can’t wait until decline in the (North Sea) basin is acute. We have to act now – we have to act to seize the opportunities and mitigate what I absolutely acknowledge are a plethora of risks.”

Skills issues

Meanwhile, Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce (AGCC), told the breakfast that company confidence in finding the right skills had plummeted.

He added: “This is a significant threat to the region and to the nation in realising our ambitions in becoming a global renewable-energy hub.”

According to the survey, 55% of respondents in April 2022 were either “very” or “extremely” confident of finding oil and gas skills. A year on, that’s down to 30%.

Confidence in finding renewable-energy skills has halved from 34% to 17%.

Early retirement and staff leaving the sector are among the main drivers.

“An ageing workforce needs to be mitigated by improving the narrative and efforts to attract young people into the industry,” said Mr Borthwick.

He added: “There are some positive initiatives like the national energy skills accelerator and skills passport.

“But, of course, the other side of the equation is we need to make sure the jobs are there for them to go into.”

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