First Minister Nicola Sturgeon has been urged to reveal the Scottish Government’s assessment of the tax cut needed to save the jobs of thousands of oil workers.
Scottish Labour leader Jim Murphy said the move was necessary given the “crisis” currently unfolding in the sector due to the dramatic fall in the price of a barrel of oil, which is currently less than $60.
It comes as renowned economist Prof Ronald MacDonald, of Glasgow University, said a fall to below $40 a barrel was “not unreasonable”.
Mr Murphy, in a letter to the First Minister, said: “The plummeting oil price, which at the time of writing has fallen to $55 a barrel, means companies are cutting jobs and wages, as well as holding back on future investment commitments.
“We need to understand how much extra government support would be needed if the oil price continued to fall.
“For example, if the oil price reaches around $40, as Professor Ronald MacDonald and others have suggested could happen, what is the value of the tax cut you believe is needed to save jobs?”
Mr Murphy said he was delighted that the government had agreed to share the analysis it holds on the issue.
He wrote: “I am pleased that this is an area where we are working together.
“You said you were keen to hear the ideas and solutions put forward by others.
“This is now clearly a crisis for many of those are directly affected by the tumbling oil price.
“In light of this I look forward to receiving the Scottish Government’s assessment as a matter of urgency.”