November

Written by Malcolm Bruce MP on Wed 5th Nov 2008

Fight for our paper industry and skilled jobs

The threat to International Paper's mill at Inverurie and Diamond Stationery's envelope factory in Dyce clearly reduce the diversity of our local economy unless we can find opportunities for new investment and employment.

I know how competitive this industry is and the extent to which local management have fought for competitive business. Energy costs and the exchange rate have made life very difficult,

Active measures, which I support, are in place to try and find alternative paper making operations for the Inverurie site. However, even if these are successful they are unlikely to replace all the jobs currently provided by the present plant.

We will therefore need to look for the best possible use of the site to attract new employment opportunities of comparable skill and I very much hope this can be achieved.

Papermaking has long been associated with the North East of Scotland. Thirty years ago we had five mills. Now global competition has reduced the number to two and if no successor can be found on the Inverurie site only one - at Stoneywood, also in my constituency.

I very much hope it may yet prove possible to maintain papermaking on the Inverurie site but accept that it is a large and strategic important location close to road, rail and air links which could attract investments that will offer skilled employment. I will be working with my colleagues at Holyrood and in the council to achieve the best possible outcome.

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Volatile oil price no time to cut exploration or jobs

The volatility in the oil price has very mixed implications for the North East. Much of our employment is derived from servicing the oil and gas industry in the UK and internationally and the high oil price has contributed to high rates of economic activity and very low unemployment.

There is still a great deal of oil and gas to be produced from the UK Continental shelf but increasingly from smaller more expensive reserves. At a $70 a barrel oil price much of this should still be attractive but clearly people will be nervous if they think the price is set to go lower.

Oil Rig

In the long term we will need all the oil we can produce and price trends are likely to be upwards. I agree with energy banker Matt Simmons that the industry should use the lull to explore for new reserves and retain and retain staff.

It is therefore disappointing to hear BP announce 500 job cuts worldwide on the back of record profits. This looks like the worst kind of short termism.

But for consumer spending and other industries using energy or transport fuel the very high prices have been painful pushing up gas and electricity prices and especially domestic heating oil and reducing discretionary spending.

Many people will want these to come down to help them through the winter. I alerted the new Secretary of State for Energy and Climate Change, Ed Milliband, to the fact that heating oil has risen more than gas and electricity and come down more slowly. He undertook to look into the situation which may mean something or nothing.

Meanwhile, people have been complaining about the fact that petrol prices appear to be coming down more slowly than they went up and that prices vary considerably across the region.

I met with Tesco last week to ask if they would explain and review why there is such a variation in prices across Gordon. It is true that the price in Inverurie is now the same as Aberdeen, compared with the 5p when I wrote to them a few weeks ago but Ellon is still 2 or 3 p higher as is Huntly.

Meanwhile across Scotland 190,000 people who are on the higher rate of mobility allowance are struggling to pay higher fuel bills. Many of them will be forced to stay at home for much of the winter in the same way as pensioners who qualify for a £250 fuel allowance. They should receive the same benefit.

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Government push HBOS takeover against better options

The Government are clearly hell bent on ensuring the takeover of HBOS by Lloyds TSB regardless of the competition issues, the possibility of other serious bids let alone the implications for the Scottish economy.

The problems of HBOS and the Royal Bank of Scotland clearly derive from bad management decisions and the consequence is damage to Scotland's financial services industry and the Scottish economy.

Nevertheless the fact that the takeover raises serious competition issues which the Government are setting aside suggests that the long term needs of consumers are secondary to the desire to resolve one problem before another emerges.

What makes it worse is that in spite of the billions of pounds and shareholding provided by the Government the banks are not lending again and consumers are facing fewer options to choose from.

The banks that let us down so badly are being set up to do it again.

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Trump go-ahead gives challenge to 'iconic' development

As expected, Scottish Ministers have given the go-ahead to the controversial Trump golf development at Menie Park. There are conditions attached but they are unlikely to compromise the main proposals.

Those who objected to the development believed it would do unacceptable damage to the migrating sand dunes on the site of special scientific interest (SSI). Many also opposed the building of 500 houses that the developers said was essential to provide the funding for the golf development.

At a time of volatile uncertainty in oil prices there is a real need for diversity of economic and employment opportunities. The claim is that this will be an iconic development that will attract people to our region from all over the world. The Trump Organisation hopes that one day it will be the venue for the Open.

The developers now have the opportunity and obligation to demonstrate that the development can be carried out in an environmentally sensitive way and give an indication of the range and quality of jobs that will be provided both during construction and permanently thereafter.

The economic climate has changed since the plans were first unveiled. It remains to be seen what scale of finance will be forthcoming and how the development will be phased.

Laying out a golf course is probably the easiest of the tasks. No doubt we will hear soon when the first ball will be driven off the first tee. No prizes for guessing who might drive it!

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Unite to end hell in paradise

Two years ago I visited Eastern Congo which even then was still suffering low level persistent violence. The town of Bukavu had previously been invaded by rebel forces under Laurent Nkunda which are now besieging Goma.

This area of Eastern DRC can best be described as Hell in Paradise. It is truly beautiful country resembling Switzerland with mountains, lakes and lush vegetation. It is also rich in natural resources notably supplying 80 per cent of the world's coltan, an essential ingredient for mobile phones.

That is its curse. Neighbouring countries, warlords and criminals vie with each other for possession of resources using the proceeds to fund purchase of weapons and equipment to wreak further destruction.

The people who suffer most are women, who face brutal rape and mutilation and children who suffer starvation and disease and forced recruitment into the rebel forces.

Millions have died in the war torn region which should be the richest country in Africa and is a more or less failed state.

The international community has a responsibility to help create stability, contain the rebels and allow the basics of government to function. The UK is the biggest bilateral donor but it is doubtful if we are making much difference.

There needs to be a co-ordinated effort to halt the anarchy and destruction and try to use the international forces to end the conflict and create a viable government. It will not be easy but we cannot walk away.

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Flawed BBC can still be world class

Finally, as the world is disintegrating in financial crisis the British media found time to dedicate the lead news stories to the ludicrous situation in the BBC following the childish and hurtful behaviour of Jonathan Ross and Russell Brand.

It warranted quick intervention, apology and punishment. It does not in my view justify calls to end the licence fee or privatise the BBC.

The BBC is an institution with many faults, not least its cliquey arrogant complacency but it is unique and envied throughout the world. Yes it turns out second rate tat sometimes but it also reaches the best heights of broadcasting.

As someone who has been forced to see TV in many parts of the world I can confirm I am prepared to put up with some of the BBC's faults to protects us from the mediocrity that is the norm in most other countries.