Scottish Government access to a multi-million pound fund generated by a levy on fossil fuels is “vitally important” to Dundee cashing in on its potential as a hub for renewable energy, it was claimed last night.
Dundee East MP Stewart Hosie was speaking as he called on Westminster to release the fossil fuel levy at the SNP spring conference in Aviemore.
The levy, which is paid by suppliers of electricity from non-renewable energy sources, has trebled in value in Scotland since 2007 and sits at £176 million.
But under the current treasury rules any money taken from the fund is deducted from Scotland’s overall budget.
Mr Hosie, the SNP’s treasury spokesman at Westminster, said the rules must be changed to allow the country, and Dundee in particular, to pursue the opportunities of renewable energy.
“Scotland won the natural lottery once with North Sea oil and we now have the potential to lead the world again with renewables,” he said.
“Aberdeen is the oil and gas capital of Europe and has a wealth of knowledge and a world-renowned skills base.
“The Scottish Government is committed to ensuring these resources are maximised and Scotland is positioned to lead the renewable revolution.
“However, Scotland’s energy infrastructure must be developed and the cash which could be used to do this is currently being withheld by the UK Treasury.”
Mr Hosie added Dundee can cash in on the renewables industry and create “green collar” jobs for the city.
“Dundee is ideally placed to capitalise,” he said.
“Everyone concerned about the future prosperity of the city should be pulling together to make sure this happens.
“It is vitally important as it will reduce our dependence on fossil fuels, it is good for the environment and, in terms of Scotland and Dundee in particular, it will create jobs and help the economy.”
At the conference yesterday a motion was passed calling on the UK Government to allow the Scottish Government to access the Scottish portion of the fossil fuel levy without a cut in departmental budgets.
“The fund of almost £176m could be used to kick start the first wave of infrastructure upgrades identified in the National Renewables Infrastructure Plan,” said Mr Hosie.
“It must be released.
“The more SNP MPs Scotland returns at the forthcoming general election, the louder the voice speaking up for Scotland’s energy sector will be.
“SNP MPs will champion Scotland’s communities and clean, green energy which will underpin the long-term prosperity of the Scottish economy.”
The National Renewables Infrastructure Plan rated Dundee and Leith as the top two possible hubs for the emerging offshore wind energy sector in Scotland.
Dundee scored highly for its deep-water port, market interest in the city and having advanced investment plans for necessary infrastructure projects to attract firms, but was marked down for a lack of sites where manufacturing operations could be located.