JOHN Swinney has accused the UK Government of “sucking the economic life out of one of Scotland's most important industries” after it emerged that jobs are at risk at a major energy services firm in Aberdeen.
Energy services giant EnerMech confirmed last week that some of its 640-strong Aberdeen workforce had been consulted on potential redundancies.
The business, which provides mechanical and electrical support to oil and gas companies across the globe, has faced a downturn in activity linked to the wars in Iran and Ukraine, according to the Press & Journal.
EnerMech is reportedly looking to make around 6% of its workforce redundant, around 40 jobs, with a spokesperson for the firm saying they made the “difficult decision” due to a “challenging market environment”.
On Tuesday, SNP MSP Jack Middleton asked Swinney during First Minister's Questions what the Scottish Government will do to help support Aberdonians who are “bearing the brunt of senseless Westminster energy policy”.
Middleton said: “Job losses have recently been announced at Aberdeen-based energy firm EnerMech.
“Sadly, there are stories every single week of oil and gas redundancies in the northeast of Scotland, but Labour won't scrap the energy profits levy that's costing 1000 jobs a month, and Westminster won't allow the people of Scotland to control their own energy.
“So, with the powers available to him, what will the First Minister do to support Aberdonians who are bearing the brunt of senseless Westminster energy policy?”
Replying to Middleton, Swinney said there are a number of powers over energy policy that are reserved to the UK Government and urged the Prime Minister to remove the Energy Profit Levy (EPL).
The windfall tax was introduced by Rishi Sunak’s Tory administration in 2022, and is currently set at a 38% rate on oil and gas firms' profits. When combined with other levies, the tax rate paid by oil and gas companies in the UK is 78%.
The levy was created as a surcharge on energy firms amid extraordinary profits from soaring energy prices during the cost-of-living crisis.
However, the SNP have repeatedly called on the UK Government to scrap the levy, with Swinney saying it is “damaging” Scotland’s economy and communities.
“I've made it very clear to the Prime Minister the importance I attach to the removal of the energy profits levy, which is sucking the economic life out of one of Scotland's most important industries,” Swinney said.
“Given some of the issues that we are facing in relation to energy supply and security of supply, I think the steps that are not being taken by the UK Government are causing exactly the damage that Mr Middleton puts to me."
The First Minister continued: “What I can assure Mr Middleton about is that the Scottish Government will do everything we can to ensure that the Northeast economy is supported with the investment that is made.”
Swinney added that the Scottish Government will continue to “press” the UK Government to remove the EPL at the “earliest possible opportunity”.
EnerMech’s job cuts come just two years after the company announced a major restructuring programme following a change of ownership.
In 2024, around 120 positions at its Aberdeen site were earmarked for redundancy as part of wider cuts across the business.
It was reported last week that some of the proposed cuts will be at EnerMech’s training operations.
An EnerMech spokesperson said: “In response to a challenging market environment and evolving customer needs, we are undertaking a strategic review of our operations.
“As part of that process, we have reached the difficult decision to initiate redundancies, subject to all necessary consultation.
“Aberdeen remains a vital part of EnerMech’s global operations.
“Our focus remains on delivering ongoing projects safely and efficiently, and on supporting our team through this period.”
