Date lodged: 16 March 2017
To ask the Scottish Government what its response is to the research by the Robert Gordon University Oil and Gas Institute that suggests that Brexit might cost the oil and gas supply chain £200 million extra per year in tariffs and export taxes.
Answered by: Paul Wheelhouse 30 March 2017
The findings from the Robert Gordon University Oil and Gas Institute on the impact of Brexit highlight the significant value of Scotland being a member of the European Single Market and the potential damage to Scotland’s economy from exiting the European Union.
The report highlights that the oil and gas supply chain, which has seen revenues fall by around 30% during the industry downturn, could face up to £200 million in additional costs per year to access international markets as a result of Brexit. This will negatively impact upon the industry’s efforts to fulfil the Oil and Gas Authority’s vision to double the share of the global supply chain market taken by Scottish and the rest of the UK supply chain enterprises. The report also makes clear the challenges posed to the sector by restricting the movement of people as the oil and gas industry relies heavily on access to international skills and capabilities.
Scottish Government analysis highlights the potential costs of leaving the European Union and implies that by 2030 output in the Scottish economy could be up to
£11.2 billion lower compared to forecast GDP in the absence of Brexit.
In ‘Scotland’s Place in Europe’ the Scottish Government put forward proposals for mitigating the impact on Scotland of the UK’s exit from the EU by ensuring continued membership of the European Single Market.