April Column

Written by Malcolm Bruce MP on Fri 6th Mar 2009

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Helicopter crash affects everyone connected with the North Sea

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The crash of a helicopter only minutes from Aberdeen Airport on a routine return journey from a North Sea oil platform is the worst news anyone associated with the North Sea oil and gas industry can dread.

According to recent figures produced by UK Oil and Gas the Gordon Westminster constituency accounts for more oil and gas jobs than any other.

Thousands of my constituents regularly fly out to rigs and platforms. It is, of course, worth recording that, given the huge numbers of flights and passenger miles flown, the safety record is remarkably good. This doesn't make last week's tragedy any more acceptable.

I contacted BP and Bond after the crash to offer my condolences and to make it clear how much I appreciated the effect this disaster would have on anyone connected with the offshore industry.

It is a relief that all the bodies were recovered and the flight recorders have been brought ashore to enable the cause of the crash to be ascertained.

There have been calls for the relevant Super Puma model to be grounded but this always presents problems and should be determined by the experts at the AIB.

Clearly there was a catastrophic failure presumably during a manoeuvre when the aircraft was changing height or direction. The sooner we know the cause, the better for everyone's peace of mind.

Everyone realises the vital role of helicopters in servicing our rigs and platforms. Nothing should be done commercially or for any other reason to compromise safety.

There are many years of oil and gas production ahead of us in an increasingly challenging climate. Technology will reduce the number of people required offshore but technical expertise will always be required.

The North Sea environment is inherently dangerous on the surface of the sea, under it, aboard rigs, platforms and support vessels with moving heavy equipment or in transferring from the field to the beach and back. Absolute safety can never be guaranteed.

This tragedy shows nothing involved in the offshore industry is ever just routine. We owe it to all those involved to respect that.

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Dunfermline - another blow to Scotland's financial services

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The demise of the Dunfermline Building Society and the take-over of its core business by the Nationwide after a Treasury-backed Bank of England rescue package is yet another blow at the Scottish financial services industry.

Just like the Lloyds takeover of Halifax/Bank of Scotland the final deal was concluded in haste with complaints that an alternative bid by Scottish Friendly Assurance was not given a fair chance.

On the face of it it seems that Nationwide deal was approved because its ability to absorb the Dunfermline Building Society was stronger with assurances that the branch network and customer base would be maintained.

The question arises as to why a small traditional building society like the Dunfermline strayed into the area of risky commercial debt on the scale that it did. Certainly the angry protestations of the society's chairman would have been more credible if he could have explained that.

Nevertheless it is sad that on top of the demise of HBOS and the tarnishing of Royal Bank of Scotland the reputation of Scottish financial institutions for traditional caution and probity has been damaged.

Let us hope that in time some of our solid institutions may be able to redress the balance with sound operations.

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G20 challenges face rich and poor alike

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The arrival of the G20 in town was quite some circus with world leader's jostling for position in the family photographs and wives running a separate fashion and media programme.

Gordon Brown obviously revelled in it, especially in his clearly friendly relationship with Barack Obama who is reputed to regard our Prime Minister with some respect and David Cameron as lightweight.

Some things were agreed and Gordon Brown gained the predictable poll bounce. The most important agreements were the boost to the IMF's finances and the recognition that there needs to be more international regulation and transparency of financial institutions.

Ironically when my committee (the International Development Committee) met the IMF less than a couple of years ago they were running out of money 'for lack of enough financial crises'. Be careful what you wish for.

Last week the President of the World Bank, Bob Zoellick, was also in town and came to meet members of the committee. He told us that anyone approaching the crisis needed to do so with humility as we had got a lot wrong and nobody could predict the direction the crisis would take.

He predicted there would be a series of waves and the effect on developing countries would be the reverse of developed countries i.e. that the decline in the real economy would lead to undermining of banks.

The effect would be a setback in achieving the Millennium Development Goals and more people falling back into poverty. The key to addressing this was to fund safety nets for vulnerable developing countries and to secure a trade deal that would benefit developed and developing countries alike.

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Forth Bridge - we need action not squabbles

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The battle over funding for the proposed replacement to the Forth Bridge is of interest to us in the North East as the cost of any replacement threatens to squeeze out all other investment across Scotland for years.

Accordingly we need a clearer explanation on why Scottish Ministers have been so sniffy of offers to discuss financing arrangements for the bridge with UK ministers.

I understand that some of the discussion is effectively the Treasury telling Scottish Ministers how to manage their money better but it cannot be acceptable that such a large financial commitment should bring other capital spending to a standstill.

Certainly in the North East we have a number of requirements including Crossrail and key road improvements not to mention schools and health clinics.

We don't want to listen to arguments between ministers. We are looking for results.

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North East couple's French success

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I was interested to read a report on the business success of a North East couple who moved to France four years ago. Lynne and Jonathan Millar left Kennethmont in 2005 to fulfil a dream of living abroad.

I and my family have visited them twice at their café, gallery and B&B in Le Dorat in south west France. They have transformed an ancient building, previously an antique shop, into a lively gathering place in a little town near Limoges.

Their rooms are comfortable and good value; the café and gallery is delightful and the couple have clearly made friends with a mix of local and expats alike.

If you are in the area I can strongly recommend a visit to La Petite Fontaine in Le Dorat. You'll enjoy a pleasant mixture of France and Scotland.

ENDS