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V28-25 : LOCAL AUTHORITY STANDING COMMITTEE ON OIL FABRICATION

Councillor Patience addressed the Panel on this report, as he had been involved in the discussions in his position as shop steward for the SLP Odebrecht Lowestoft site.

With many of the country's oil fabrication yards either closed or `mothballed', the Government would be asked to review the fiscal regime in this area. Lowestoft would be ideally placed for diversification into dismantling of existing oil/gas rigs.

Councillor Partridge informed the Panel of his own expertise with Shell UK in this field. Whilst sympathetic to SLP's plight, he reminded members that it was the oil producing countries of OPEC that influenced the overall picture. Regarding the possibility of decommissioning work, there would ultimately be around 150 platforms to be disposed of, but practicalities such as re-cycling would need to be addressed. He also reminded members of two similar groups, PILOT and LOGIC, which were also concerned with the same issues.

The Chief Executive informed the Panel of recent high level discussions with SLP. Fundamentally, when other key sectors had experienced this level of downturn, they had received government intervention, especially in re-training and diversification.

RECOMMENDED

That the Local Authority Standing Committee on Oil Fabrication's approach to the Government for a meeting and Action Plan for the oil fabrication industry, be endorsed.

Volume 28 Minute 25

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