The fuel strike will cost £50m a day
Opposition leaders said ministers had been “caught napping” by the strike at the Grangemouth refinery in Scotland, adding that the dispute had serious national consequences.
The industry body warned that the closure of the BP Forties pipeline – which supplies one third of the UK’s oil and gas – would cost £50 million a day and urged ministers to stop the country being “held to ransom”.
The dispute is between workers and the plant’s owner, Ineos, over the decision to close a final salary pension scheme to new workers.
It appeared no closer to being resolved yesterday and the Unite union, which represents about 800 of the striking workers, said that while there are no firm plans, “there will be the possibility of further strikes”.
John Hutton, the Business Secretary, said the Government had made “every effort” to try to prevent the action from taking place. Others, however, accused ministers of not doing enough to intervene.
Malcolm Webb, the chief executive of the industry body Oil and Gas UK, said: “Around 80 companies and their operations are now caught up in a situation which has nothing to do with them and which should have been avoided.”
Alan Duncan, the shadow business secretary, accused ministers of being late to react. “They should have seen this coming because it has enormous implications for supply lines in the UK,” he said.
“Crucially, it’s the continuity of supply that matters. The Government just didn’t see this coming – they’ve been caught napping.”
Alex Salmond, Scotland’s First Minister, said there was no crisis and dismissed talk of emergency powers being introduced – including the rationing of petrol.
Seven tankers carrying thousands of tonnes of fuel were heading for Scotland yesterday in a bid to keep the country moving during the 48-hour strike, which ends tomorrow.
Ministers said the ships would add to existing supplies and provide enough fuel to last well into next month. In the wake of panic buying, large amounts of petrol and diesel are also being delivered to forecourts from existing stocks at the Grangemouth refinery.
Mr Salmond said that only five of Scotland’s 956 filling stations had sold out of petrol and diesel on Saturday, while about 70 had some “difficulties” with stock.
The 48-hour strike began when about 100 workers walked out in near silence at 6am yesterday morning, brandishing red and white flags, after completing a night shift at the refinery.
It could take over a week for the plant to be fully operational again, but the Forties pipeline should be back on stream later this week.
Phil McNulty, a Unite official, said the union was ready to talk to Ineos but added that further talks would depend on management withdrawing its plans to end its final salary pension scheme.
Mark Lyons, a shop steward at the plant, told a rally outside the refinery yesterday that the union deeply regretted the effect on members of the public. He added: “This site has been here for 80 years and during that time we’ve never seen the likes of this morning. The last time this site was closed in any real measure was during the Second World War.”
However, Tom Crotty, the chief executive of Ineos, claimed the company had made “concession after concession” to the union but had received nothing in return.
Gordon Grant, the plant manager, said it was a “sad day”, adding: “This strike today is unnecessary. There was ample time for discussions, and the trade unions have called this strike today.”
Source: www.telegraph.co.uk
Tags: crisis, fuel costs, Scotland, strike, UK