Ed Miliband accused of ‘hypocrisy' over Lindsey refinery support
Both Alba and the SNP have hit out at the Energy Secretary after the UK Government confirmed their review of mechanisms for refineries to become eligible for the Energy-Intensive Industries Compensation Scheme.
Refineries are currently excluded from the scheme.
Scottish representatives have drawn comparisons between the UK Government's response to State Oil – the parent company of Prax Group, which owns the Lindsey refinery in North Lincolnshire – and Grangemouth.
More than 180 staff are employed by State Oil, while it is thought that around another 440 work at the Lindsey refinery.
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The Lindsey site is one of only five large oil refineries remaining in the UK after the recent closure of Grangemouth.
Just over 400 jobs were lost earlier this year when the oil refinery closed and transitioned into being an import terminal.
'The fact is the Labour Party promised there would be no cliff edge for the oil and gas industry, but this will be the second refinery to face closure on their watch with thousands of jobs being lost in our offshore industries thanks to the Labour Government's fiscal regime," the SNP energy spokesperson Graham Leadbitter said.
He added: "The UK Government was made aware of the difficulties months ago and so clearly we need to see a plan come forward as quickly as possible.
'Of course all options should be considered to keep Lindsey operating, but there was not even so much as an urgent statement for Grangemouth. It would appear that when it comes to British Steel and energy infrastructure south of the Border, Westminster can pull out all the stops.
"It's no wonder people in Scotland are left questioning why critical national infrastructure becomes more critical depending on its geography."
Alba party leader Kenny MacAskill, a former Scottish justice secretary, also responded to the reports, calling it "evidence of why independence is needed".
"Sympathies are with the workforce and UK Government support for the refinery is the right thing to do," MacAskill said, and added: "But it rings hollow for Grangemouth where no such action was taken. The hypocrisy of Ed Miliband is breath-taking."
He continued: "It's two-tier Ed not just two-tier Keir. Scottish refinery workers and communities are ignored whilst south of the Border they're supported. Yet again evidence of why independence is needed to control our own destiny and economy."
The UK Government has now called for an urgent investigation after the Prax Group collapsed into administration, putting hundreds of jobs at risk.
Energy minister Michael Shanks said the firm's collapse was 'deeply concerning' and that the company had left the UK Government with 'little time to act'.
He said the Government is demanding an investigation into the conduct of the company's directors and the circumstances surrounding its failure as well as confirming a review of the Energy-Intensive Industries Compensation Scheme.
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Prax Group is led by majority owner and chairman and chief executive Sanjeev Kumar Soosaipillai, who bought the Lindsey oil refinery from French firm Total in 2021.
Shanks said: 'There have been longstanding issues with this company and workers have been badly let down.
'The Secretary of State is today writing to the Insolvency Service to demand an immediate investigation into the conduct of the directors and the circumstances surrounding this insolvency.
'The Government will ensure supplies are maintained, protect our energy security, and do everything we can to support workers and the local community, including engaging with trade unions and industry bodies.'
He added: 'The Government believes that the business's leadership have a responsibility to the workers and the local community.
'We call on them to do the right thing and support the workers through this difficult period.'
More than 80 potential investors have come forward since the UK Government pledged £200m for the Grangemouth site.
The UK Government is also looking for another £600m from private investment in the area.
Trade union Unite said the Government needed to urgently intervene to help protect UK fuel supplies and jobs.
Unite general secretary Sharon Graham said: 'The Lindsey oil refinery is strategically important and the Government must intervene immediately to protect workers and fuel supplies.
'Unite has constantly warned the Government that its policies have placed the oil and gas industry on a cliff edge.'
Built in 1968, the Lindsey refinery can process around 113,000 barrels of oil a day.
Clare Boardman, joint administrator of State Oil and Prax, said: 'We appreciate that this is a very difficult and uncertain time for the employees and everyone involved and we will be on site to support them during this challenging period.
'We will be considering all options for the group, including the prospect of a sale for the group's upstream business and retail operations in the UK and Europe, all of which remain outside of insolvency.
'We thank the group's team members and other stakeholders for their continued support.'
Prax Group was not immediately available for comment.
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