Labour MPs press leadership to let Fahnbulleh decide Rosebank’s fate
Labour backbenchers are urging the party leadership not to intervene if Energy Secretary Miatta Fahnbulleh decides to refuse environmental permission for the Rosebank oilfield. They say approval could undermine Labour’s environmental commitments and have raised concerns about pressure from senior ministers, including Chancellor John Healey.
Fahnbulleh’s aides say she alone will decide after considering the relevant factors, and that no decision has been made. Prime Minister Andy Burnham has also said the decision is hers, though his comments about North Sea reserves and the recently approved Jackdaw gasfield have fuelled speculation that he supports Rosebank. The Treasury says Rosebank tax revenues, estimated at about £500m by the end of this parliament, have been included in forecasts since 2019; it says that does not prevent the field being blocked.
In short
- Labour MPs want Fahnbulleh to decide Rosebank’s fate without ministerial interference.
- Approval could conflict with Labour’s environmental commitments, MPs argue.
- Rosebank’s forecast tax revenues are about £500m by the end of this parliament.
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The case for
Supporters of leaving the decision to Fahnbulleh argue that environmental permission should be determined on its merits by the minister responsible, without political pressure from colleagues. Refusing Rosebank could uphold Labour’s environmental commitments and avoid locking in further oil production, while the Treasury says blocking it would not invalidate existing revenue forecasts.
The case against
Those wary of ruling out Rosebank argue that ministers should weigh environmental aims alongside energy security, economic effects and the public finances. The field’s projected tax contribution may be relevant to that balance, and supporters could see approval as consistent with permitting other North Sea developments, provided it meets the applicable environmental requirements.
Explained simply
Rosebank is a large oilfield west of Shetland, in the North Sea. Before it can be developed, it needs environmental permission from the government, which would allow work to proceed subject to any other required approvals.
Miatta Fahnbulleh is the Energy Secretary and has said she will make the decision after considering the relevant factors. Prime Minister Andy Burnham and Chancellor John Healey are senior figures in the government, while Labour backbenchers are MPs who are not ministers.
The issue brings together Labour’s environmental commitments and questions about future North Sea oil production and public finances. Rosebank’s expected tax revenue has been included in government forecasts, but that does not determine whether permission is granted.
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Originally published by The Guardian as “Angry Labour MPs urge leadership not to overrule energy secretary on Rosebank”.