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| Calls for £2bn Aberdeen city deal to secure oil and gas future | Calls for £2bn Aberdeen city deal to secure oil and gas future |
| (about 2 hours later) | |
| Politicians in Aberdeen have used an oil and gas summit to urge ministers to back a £2bn finance deal for the city. | |
| Aberdeen City Council leader, Jenny Laing, wants a combination of government grants and borrowing powers to secure the region's economic future. | Aberdeen City Council leader, Jenny Laing, wants a combination of government grants and borrowing powers to secure the region's economic future. |
| She said that for too long Scotland's oil and gas sector had been seen as a "cash cow" and with the fall in oil prices it was now time for "pay back". | She said that for too long Scotland's oil and gas sector had been seen as a "cash cow" and with the fall in oil prices it was now time for "pay back". |
| First Minister Nicola Sturgeon said she would look at the plan. | First Minister Nicola Sturgeon said she would look at the plan. |
| She told BBC Radio Scotland's Good Morning Scotland programme that her officials were already in discussion about the city council's proposals and she was "keen to continue to take that forward". | She told BBC Radio Scotland's Good Morning Scotland programme that her officials were already in discussion about the city council's proposals and she was "keen to continue to take that forward". |
| Ms Sturgeon added: "Hopefully today one of the outcomes of this summit will be an agreement between ourselves, the UK government, the city council, and of course Aberdeenshire Council - who have an involvement in this as well." | Ms Sturgeon added: "Hopefully today one of the outcomes of this summit will be an agreement between ourselves, the UK government, the city council, and of course Aberdeenshire Council - who have an involvement in this as well." |
| The summit, which has been organised by Aberdeen City Council, was being attended by local and national politicians as well as industry and union representatives. | |
| Ms Sturgeon and the UK government's Scottish Secretary Alistair Carmichael were among the participants. | |
| The get-together was called amid warnings the industry was in crisis. | The get-together was called amid warnings the industry was in crisis. |
| A barrel of Brent crude has more than halved in price since its peak of $115 last summer. On Friday it was standing at less than $53 a barrel. | A barrel of Brent crude has more than halved in price since its peak of $115 last summer. On Friday it was standing at less than $53 a barrel. |
| Long-term | Long-term |
| Speaking ahead of the summit, Labour Councillor Laing said: "I think we have to bear in mind the numbers of jobs that are connected with the oil industry - 450,000 throughout the UK. | Speaking ahead of the summit, Labour Councillor Laing said: "I think we have to bear in mind the numbers of jobs that are connected with the oil industry - 450,000 throughout the UK. |
| "We also have to accept the amount of money that is brought back into the Treasury as a result of this industry. | "We also have to accept the amount of money that is brought back into the Treasury as a result of this industry. |
| "I think its only right and proper that we look at ways in which to sustain that for the long-term future for those employed in the industry, and also regions like ours that are extremely dependent on them for our buoyancy." | "I think its only right and proper that we look at ways in which to sustain that for the long-term future for those employed in the industry, and also regions like ours that are extremely dependent on them for our buoyancy." |
| In August last year, Glasgow City Council and a number of neighbouring authorities entered into an agreement with the Holyrood and Westminster governments which would results in the funding of major infrastructure projects. | In August last year, Glasgow City Council and a number of neighbouring authorities entered into an agreement with the Holyrood and Westminster governments which would results in the funding of major infrastructure projects. |
| The deal involved the UK and Scottish governments each giving £500m in grant funding and a further £130m being raised by the local councils in the region. | The deal involved the UK and Scottish governments each giving £500m in grant funding and a further £130m being raised by the local councils in the region. |
| Councillor Laing is hopeful a similar deal can be done for the city of Aberdeen and Aberdeenshire. | Councillor Laing is hopeful a similar deal can be done for the city of Aberdeen and Aberdeenshire. |
| The summit heard Industry body Oil and Gas UK call for "meaningful action" from government in order to tackle major challenges facing North Sea operators. | |
| Chief executive Malcolm Webb believes "an unpredictable and harmful business environment" has put the sector "at great risk". | Chief executive Malcolm Webb believes "an unpredictable and harmful business environment" has put the sector "at great risk". |
| The body wants urgent tax cuts amid falling oil prices and rising costs. | The body wants urgent tax cuts amid falling oil prices and rising costs. |
| It also wants a new oil and gas regulator in place as soon as possible. | It also wants a new oil and gas regulator in place as soon as possible. |
| Tax burden | Tax burden |
| The UK Treasury said it was working with industry leaders "as a matter of priority" to address the challenges the industry faces. | The UK Treasury said it was working with industry leaders "as a matter of priority" to address the challenges the industry faces. |
| Mr Carmichael said the government expected to build on its actions when Chancellor George Osborne delivers his Budget next month. | Mr Carmichael said the government expected to build on its actions when Chancellor George Osborne delivers his Budget next month. |
| The minister added: "We have done a great deal to support firms working in and around the North Sea such as the cut in the Supplementary Charge which came into effect at the beginning of this year. | The minister added: "We have done a great deal to support firms working in and around the North Sea such as the cut in the Supplementary Charge which came into effect at the beginning of this year. |
| "We are also consulting on investment allowances and implementing the Wood Review recommendations in full. | "We are also consulting on investment allowances and implementing the Wood Review recommendations in full. |
| "Our aim is to make sure we get the most from the North Sea by encouraging the investment and innovation needed to meet the challenges of volatile prices and operating in a mature basin. | "Our aim is to make sure we get the most from the North Sea by encouraging the investment and innovation needed to meet the challenges of volatile prices and operating in a mature basin. |
| "As the UK's economic recovery strengthens, our direction of travel will be to reduce the tax burden for companies in the North Sea to encourage that investment." | "As the UK's economic recovery strengthens, our direction of travel will be to reduce the tax burden for companies in the North Sea to encourage that investment." |