SNP transition fund spends £43m on just 110 jobs for oil workers

Times

17 hours ago

A fund designed to protect North Sea oil and gas workers from the SNP's net zero drive created just 110 new jobs despite spending £43 million, a new report has found.
An analysis of the first two years of the Scottish government's Just Transition Fund, which is set to cost taxpayers half a billion pounds over a decade, found that it had 'safeguarded' only another 120 further existing roles.
The policy, announced by Nicola Sturgeon in 2021, was intended to ensure that new green jobs are created for workers whose livelihoods depend on fossil fuel industries.
A report commissioned by the Scottish government found the scheme, which backed 24 projects such as a 'sustainable' whisky distillery, an eco-tourism firm and new tidal energy research projects, could be 'a successful catalyst for economic and environmental change'.
However, critics claimed that it had delivered only a 'paltry return' after the SNP repeatedly vowed that it would ensure that North Sea workers do not end up on the scrapheap as part of its plans to wind down the oil and gas industry and replace it with clean energy industries.
The North Sea oil and gas industry is estimated to directly employ around 30,000 people and supports a further 100,000 indirectly.
The Scottish government has said it wants to hit net zero by 2045 — five years ahead of the rest of the UK — and is sticking to the target despite repeatedly failing to hit, and then scrapping, interim targets.
The analysis, carried out by the research firm Blake Stevenson Ltd, found that 47 jobs had been created through the Social Enterprise Just Transition Fund, which include positions in 'green skills training'.
A handful of others were created through a nature restoration project based around the River Findhorn and an 'adventure tourism' firm.
However, the report warned that many of the roles were 'temporary, project-based, or contingent on further investment' and 'may not transition into lasting opportunities'.
Douglas Lumsden, the Scottish Tory net zero spokesman, said: 'This paltry return will do nothing to allay the fears of tens of thousands of highly skilled workers in Scotland's oil and gas sector.
'They know the SNP and Labour are taking a wrecking ball to their industry and this report confirms they have not got a clue how to properly protect jobs for the future.
'Taxpayers will be rightly thinking their money has typically been squandered by the SNP who must urgently shift from their current reckless approach if we are to achieve an affordable transition.'
The fund was created as a counter to claims that the SNP's net zero policies, which were enthusiastically championed under Sturgeon, would cost thousands of jobs and cause devastation to the north east economy.
The SNP has repeatedly claimed that it will ensure the push to net zero does not mean that communities suffer in the same way as others did under deindustrialisation under Margaret Thatcher in the 1980s.
When the just transition fund was announced, ministers said they would target investment to help create 'good, green jobs' to replace those that would be lost in the North East and Moray.
According to the report, the fund has also helped to leverage £30 million in private sector investment and £4.7 million from the public sector or charities.
It claimed that initiatives funded by the scheme were also responsible for the training of 750 people.
The report said that while the fund 'has been a successful catalyst for economic and environmental change' in the area, 'several administrative and logistical challenges have emerged'.
These include uncertainty over long-term funding, confusion over the application process and a lack of clarity over funding criteria.
The report said: 'Many projects remain in early stages, making it difficult to fully assess employment outcomes, carbon savings, and long-term economic benefits.'
Gillian Martin, the climate action secretary, said: 'This independent report demonstrates our Just Transition Fund is a catalyst for economic growth. With £75 million allocated to the fund since 2022, the expert report makes clear it has supported job creation and re-skilling, empowered communities, catalysed private investment and initiated innovation in green technologies.
'Thanks to the Just Transition Fund, more than 230 jobs have been created and safeguarded, 750 training places opened up and over £34 million in additional investment secured in its first two years. These are the initial impacts of the fund and we are confident that job numbers, investment leveraged and other key outputs will increase as projects continue.
'This is just one example of how this government is supporting Scotland's valued and highly skilled oil and gas workers, who are at the very heart of the just transition to net zero — despite the fact that decisions on offshore oil and gas licensing, consenting and the associated fiscal regime, are all matters that are currently reserved to the UK government.'