Aviemore 2008 was a good conference. From the opening session with Nick Clegg’s first speech to conference as leader, through to Malcolm Bruce’s closing note, looking at Scotland through the prism of history, those attending the conference were upbeat and cheerful. It seems that opposition is really suiting us.

It is on that last note, however, that things for me rather soured. When the Liberal Democrats gain power, we are going to have to deal with the country and world how it really is, not how we would like it. That reality has to be faced up to by some members of the party. Part of that responsibility will be the management of Britain’s energy resources. All of us support renewable energy. But what do we do with the finite resources that Britain already has?

On the final day of conference, Westminster PPC for Aberdeen South, Matthew Duncan, put forward a motion that stated in order to prolong the life of the oil industry in the United Kingdom, the supplementary 20% uplift on the standard rate of corporation tax on production should be lifted. The reason behind this is very simple: the oil (and gas) is running out. More investment is needed to prolong the life of industry, and the Labour tax regime is inhibiting this.

I can hear the howls of protest! Didn’t Shell make £14 billion profits last year? Yes, of course they did. That was global profits, not just made from the United Kingdom. Shouldn’t we leave the oil in the ground? It would be a valid argument if there were alternative power generation infrastructure in place by 2020 – and not just for electricity. That, however, is not the case.

The motion was accused of many things – from being drafted by the oil majors, and ignoring smaller companies, through to flying in the face of all the excellent environmental policies championed by this party. None of these criticisms are true.

The oil, gas (and coal) industry are going to have to be factored-in to the planning of Liberal Democrat energy policy. We all know these fuels are finite and their use added to global warming and climate change. The need for them is not going to disappear overnight, however. There are many available ways to manage the use of these fuels: reduced energy usage through more efficient cars, aircraft and building design; carbon taxes are another. Certainly more investment and maybe subsidy on renewable energy and micro-generation would be welcome.

Labour’s 20% uplift on the oil industry is not a carbon tax as it is not targeted on the uses of hydrocarbons. In order to keep the industry from withering in the UK, exploration needs to be kept active. Ironically, the high price of oil is also another factor for disinvestment in the UK. High oil prices mean that price inflation is running at about 20%. Looking for new fields in a very mature province like the North Sea is already more expensive than investing elsewhere in the world.

Matt Duncan’s motion was passed by 42-30. It was the correct result if we wish to build on the work done Vince Cable in establishing the party’s reputation for sound economic judgement.

The motion is available here. Follow the link for the conference agenda and it appears on page 29.

* Martin Veart is a party member in Aberdeen South.

Tomorrow, 3rd March 2008, marks the 20th anniversary of the official formation of the (Social &) Liberal Democrats, and Lib Dem Voice will be featuring a special article by Chris Rennard, the party’s chief executive. Today Martin Veart, a party member in Aberdeen South, describes how he came to join the Lib Dems…

One winter, the lights went out. Not just our lights, but all the lights. Even the street lights no longer shone orange through the window. My mother, who used to live without electricity when she was little, had an oil lamp. While all the other windows of all the other houses showed a few flickering candles, our living-room window glowed with a warm, rich cream light. Above, in the cold sky, the stars were so bright, so beautiful. Inside, the newly-fitted oil fire kept our house warm.

When the power was on, there were always a lot of men on the television news. They had placards and would be shouting, shoving and being shoved by policemen in their high, domed helmets. A white-haired man, Mr Heath, was often on the television making speeches. The news would speak about strikes and miners.

There was another man, Mr Wilson, who would also be on the news, telling the public (whoever they were – I didn’t understand that word) why Mr Heath was wrong. I didn’t like Mr Wilson. He didn’t look like a good man , with his funny-looking nose, his pipe, and the long mac he always wore. Mr Heath looked nice, smiling broadly and laughing when the news wasn’t bad. Besides, he was supposed to be a friend of Mr Chadd, the man who owned the department store where Mum shopped and that was good. Mum and Dad always voted for Mr Heath’s friend, Mr. Prior. He was another man with white hair and a kind face. At voting times he used to wear a big blue, round kind of badge.

Usually there were just the three of us but, sometimes, Dad would come home. He would bring presents. Dad always wrote to Mum and my big brother when he was away at sea but I was too little to get my own. But Mum would read her letters to me and I would collect the stamps. I had loads from Japan, Hong Kong, Brazil, places in Africa, even Vietnam and China. Anyway, Dad would be at home for a few months then back to sea. At least for a year, maybe more. I always cried when we saw Dad off on the train.

When Dad was at home, he used to do many nice things with us. Play in the garden, take us to places. It was real fun. We sometimes used to play cricket in the back garden but, when I was very little, I used to get scared by the big helicopter that would thunder over the house. It was blue and gray and black. It was carrying men out to sea. I asked Dad if he ever went by helicopter but he said no, he didn’t.

Dad had a friend, Mr Mitchell. Sometimes at night Mr Mitchell would come around and drink Dad’s whisky and talk. Mr Mitchell didn’t look nice and Mrs Mitchell seemed to be a very old lady, much older than Mum, Dad or even Mr Mitchell. One night, there was something else on the news. Soldiers with long guns. There were crowds, people being carried and a man waving a white handkerchief. They said people had been shot. The words “Bloody Sunday” started to be used. Read more »