Ed Miliband has revealed that dialogue with Aberdeen & Grampian Chamber of Commerce and OEUK helped secure a crucial tax relief which averted huge job losses in the North Sea.
The UK Energy Secretary said it was important for the government to work with the Chamber and North Sea communities to shape a future which protects jobs and delivers Labour's clean power mission.
Appearing before a Westminster committee hearing yesterday, Mr Miliband said the offshore industry and government shared both “divergent views” and "common ground" on the future role of oil and gas, but acknowledged North Sea production must continue "for decades to come".
"Our dialogue with Aberdeen & Grampian Chamber of Commerce and OEUK is really important," he told the committee.
"I don't determine tax policy, and I should be very careful not to suggest I do, but that (dialogue) led to some changes in relation to capital allowances that were announced in the Budget by the chancellor."
In her Budget, Rachel Reeves confirmed that North Sea operators would retain their 100% first year capital allowance. After some warnings this would be reduced, keeping operators up at night, its retention is a lifeline for many projects.
Mr Miliband acknowledged that there remain areas of disagreement with the Chamber, which has this week pushed for both the UK and Scottish governments to reverse their positions against further exploration in the North Sea.
Labour MP Torcuil Crichton sought to compare the Chamber's "siren voice" to Donald Trump, a comparison which was shot down by Mr Miliband.
He said: "I don't include them (as a siren voice). I think it's important for us to work with our North Sea communities, including the Aberdeen & Grampian Chamber of Commerce, OEUK and others.
"And we may have slightly divergent perspectives on certain issues, but I think there is a lot of common ground that we share as well. I think there is common ground on the fact that the North Sea oil and gas will continue to play an important role in the decades ahead.
"I think there is important common ground that we must build the future for the North Sea and the future is going to be in carbon capture and storage, offshore wind, hydrogen, the industries of the future."
Miliband told the committee that the Department for Energy Security and Net Zero (DESNZ) will soon consult with the industry, trade unions and workers on licensing.
“Our manifesto was clear about this, which is, we will keep existing oil and gas fields open for their lifetime, decades to come, we will not issue new licenses to explore new fields,” he said.
“And the truth is that new licenses to explore new fields are a relatively marginal part of the future prospects for the North Sea.
“But we are led by the science… we can both achieve the just transition that we seek and maintain confidence and indeed tax receipts from the North Sea, and at the same time build the future. And that’s what we are determined to do.”