Chamber and committees

I will direct my questions to Ross Dornan. A matter arises from Keith Anderson’s useful answer around profits. Many of your members reported large profits this year, prompting some to call for a windfall tax. Earlier, Dan Alchin said that we need to accelerate the transition to renewables. From my visits to many of your members, I am aware that they are investing huge sums not only in North Sea production, which, of course, positively impacts on jobs and energy security, but, crucially, in research, development and the transition to renewables and green jobs.

I have two questions, the first of which arises from Keith Anderson’s answer. Do record profits for your members mean record dividends to the shareholders? Secondly, what impact does talk of a windfall tax and/or negative public relations, or, indeed bringing in a windfall tax, have on companies’ and investors’ willingness to invest in the basin, in renewables development and in what you called earlier a “fair, managed transition” to a better energy mix?

It is powerful evidence that we are hearing and I am grateful to the panel for it. I will direct my question to Alastair Wilcox. I heard you talk earlier about the support requiring to be more targeted. Following on from that, the Scottish Government recently sought to address some of the issues that you have been telling us about through a blanket discount to council tax. Do you think that that is the most targeted or best way to assist the people who are most in need?

Thank you. That was helpful. I have no further questions, convener.

Good morning. My questions relate to some of the points that the convener raised. Article 5 of the instrument suggests that the Scottish Government will provide guidance to local authorities to assist them in developing their plans. When does the Scottish Government expect to publish that guidance? From your discussions with the likes of COSLA, how long do you anticipate that local authorities will need between publication of the guidance and production of the plans? How will you ensure that public bodies have sufficient time to prepare their final plans after the publication of that guidance?

You have rightly mentioned several times the issue of resourcing and the need for what would presumably be extra resources, or the repurposing of current staffing resources, in order to produce the plans. What are the Scottish Government’s projections of the cost to local authorities of that extra resourcing? Do you expect the Scottish Government to support that resourcing? If so, will that support cover the whole process or just a part of it?

I have one more question, which is for Ross Dornan again.

Ross, in your opening remarks, you talked about the location of supply and mentioned increased competition from a refocusing of gas markets. Keith Anderson talked about moving away from gas, but a report by McKinsey that I was reading this morning suggests that gas demand will continue to rise until 2035.

The UK Government energy security strategy, which was mentioned, will launch an oil and gas offshore licensing round, with the aim of improving energy security and affordability. We know that imported liquefied natural gas has about two to three times the carbon footprint of domestically produced gas. Therefore, the question is this: what is the impact on energy security and the price for consumers of greater North Sea production of gas, and what are the environmental consequences of that?

I am very grateful. I have no further questions.

I am very grateful for your evidence.

Does either of the other two witnesses have anything to say on that? I appreciate that it is a slightly niche question.

I can see that Dr Hannon wants to come in.

Good morning, panel. I will direct my first question to Dr Lowes. I was quite surprised to hear you say that North Sea gas might run out by 2035. I presume that that is a reference to the North Sea Transition Authority’s discussion of investment rather than reserves. I wonder if you would clarify that, before we set any hares running.

On that point, gas currently generates about 36 per cent of UK energy and, as I understand it, imported gas is the last unit bought to satisfy demand. That contributes to the overall price. Imported liquefied natural gas, for example from Qatar, has two to three times the carbon footprint of gas that is locally generated. Does it therefore stand to reason that one way to reduce energy prices and push us on the journey to net zero, while demand exists, is to ensure more domestic gas?