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.