Page last updated at 10:31 GMT, Tuesday, 13 July 2010 11:31 UK

Debate on the off-shore energy industry

Investment in the off-shore energy infrastructure of north-eastern Scotland will pay dividends for the whole of the UK, MPs heard on 13 July 2010.

Opening the debate in Westminster Hall, the Liberal Democrat MP for Gordon, Malcom Bruce said that a reduction in projected growth of one percent would cost the Exchequer £74 per annum.

Malcolm Bruce was joined by Labour's Anne Begg in highlighting the lack of investment in the road and rail networks in the area.

Mr Bruce added that short-term tax benefits could cost the country in long-term investment opportunities, and that efforts must be taken to ensure that contracts related to the industry do not go to more competitive areas of Europe.

A report in May suggested that offshore renewable energy, such as wind and wave power could create 145,000 jobs.

Responding to the debate climate minister Charles Hendry said that the government was committed to developing the fossil fuel and hydrocarbon industries.

He added that the Treasury was in discussions with the Scottish Executive on how best to draw down funding from the fossil fuel levy to be reinvested in the area.

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