13 June, 2007

SHETLAND MSP Tavish Scott has called on the new Scottish Executive to explain the impact on Shetland of its proposal to ban ship-to-ship oil transfers in the Firth of Forth.

Mr Scott's intervention comes after port chiefs in the islands raised concerns that an outright ban on such transfers in Scottish waters could have serious financial implications for the port of Sullom Voe.

The new SNP administration has initiated legislation that would prevent Forth Ports going ahead with its plans to attract oil transfer business to the Firth, north of Edinburgh.

In the past two years Shetland and Orkney's oil ports have positioned themselves to attract the lucrative ship to ship transfer business, as Russia transports increasing amounts of oil through the Baltic Sea before loading it onto larger vessels for further export.

The new SNP administration is now fulfilling one of its election promises by putting in place legislation that would control, and possibly ban, ship to ship transfers in the Firth of Forth.

However Mr Scott said it remained unclear what such legislation would mean for his constituency.

The Shetland MSP said he had only received a "holding reply" on the issue from environment secretary Richard Lochhead, and was worried he might be thinking of a "one size fits all" solution, which could cause "problems for Sullom Voe".

Mr Scott said: "Sullom Voe has a long track record of the safe handling of oil tankers. It has the pilots, tugs and shore facilities with the necessary experience. It can provide sheltered berths for ship-to-ship transfers as well as for transfers to and from the shore. And it has pollution control staff and equipment integrated into the harbour operation.

"The Russian oil transfers, which are currently proposed for the Firth of Forth, offer an attractive business opportunity for Sullom Voe. They could generate important income for the harbour, and for the tugs, and so allow the harbour to remain competitive when it comes to winning new business from the Atlantic oilfields.

"It is therefore vital that the legislation needed to deal with the Firth of Forth problem is drafted so that Sullom Voe is not caught up in it as well."

Mr Lochhead said last night: "As I said in response to the questions following my Statement to the
Parliament on 24 May, there are some areas in Scotland where ship to ship oil transfers already take place, and where it is perfectly acceptable for such operations to continue.

"It is not the Scottish Executive's intention that the planned legislation will have consequences for appropriate business activity in the Firth of Forth, or in any other area of Scottish waters.

A spokesman for the Scottish Executive added that Mr Lochhead would brief MSPs on his plans at a meeting tomorrow (Thursday).