| Description | MALCOLM BRUCE (LORD BRUCE OF BENNACHIE) interview at his home, Grove Cottage, Grove Lane, Torphins, Aberdeenshire, on Friday 13th October 2017 and Friday 3rd November 2017. Interviewer Eric Crockart. Summary by Eric Crockart.
A total of four sessions were recorded (two on each interview date) on a Zoom H6 digital recorder. Interviewee and Interviewer wore Rode Lavalier lapel microphones. Interviewee is recorded on the left stereo channel, and interviewer is recorded on the right stereo channel. Indicative timings in the summary are given in (hour:minute:second) format.
SESSION 1.
(0:00:00) MALCOLM GRAY BRUCE, born 17th November 1944 in Birkenhead, Cheshire. Parents were born in Birkenhead. Both paternal grandparents born in Scotland, maternal grandmother born in Scotland, so always aware of strong Scottish connection. Did not come back to Scotland by accident but by choice. Mother eldest child of four, her father an agricultural merchant. Father was middle of three boys and a girl, his father a shipwright. My father went into Merchant Navy. Explains how his father took over his grandfather's business, then later in life sold it and bought a hotel. More family details. Malcolm had definite idea he was going to Scotland, went to university there. Did not get job in Scotland on graduating, so went south, but always with intention of coming back. Came back to Scotland in 1969, lived here ever since. Explains more about his attachment to Scotland - family background and also politics. Went to an English public school, recalls 1959 General Election "You've never had it so good" (makes a slip in attributing this to Harold Wilson...it was actually Harold Macmillan). Remembers thinking "We won", because being at an English public school he was a Tory, had not thought about politics. By 1962 when he went to Queens College, Dundee - which was then part of St Andrews University - he joined the Liberal Club. Explains why.
(0:04:31) Considered himself a Scot from an early age. But also definitely British, perfectly comfortable on both sides of the border, explains, including in context of calls for Scottish independence. Finds anti-Britishness offensive, Scots very involved in this union of three hundred years, we can't disown it.
(0:05:50) Goes through his school education experiences. Mother took him to primary school on first day, never took him there again. It was a mile and involved crossing three roads, he wasn't quite five, but that was accepted then, nobody thought anything of it. Went to prep school when he was about eight or nine, preparation for Common Entrance exam for English public school, which his father had decided he should go to. Goes into detail about what was involved. Went to boarding school, which he was not keen to do - Wrekin College in Wellington, Shropshire. Got his A-levels and got to university, but real snobbery about school which he found somewhat offensive, helped make him a Liberal. At that time still theoretically training boys to become administrators of the Empire, even though it was rapidly disappearing. School curriculum was old-fashioned, sport every day except Sunday. Goes into detail about his sport experiences, including explaining about "Eton Fives".
(0:13:55) Went to University of St Andrews in 1962 - explains process, and alternative universities that were considered. Applied initially to Edinburgh University to do English - accepted but with proviso that he would never get to do an Honours degree as he did not have Latin at A-level, so he rejected Edinburgh. St Andrews offered him a place in their then new Social Science faculty. But a few weeks before the course the university pointed out to him that his course was fully based at Queens College in Dundee. He was a bit disappointed about this at the time, explains a number of other students were as well.
(0:18:00) First year was not great. Explains he was in digs, could not get into student halls. But for next two years he was with four other male students in a rented house in Broughty Ferry, and then in final year, a university flat in centre of Dundee. Had a ball. St Andrews a bit of an ivory tower by the sea, Dundee an industrial city - an interesting mix. Got involved in politics and other student activities. Got a then-respectable 2:2 degree. Explains in detail how he came to do a degree in Political Science and Economics - involves internal politics of the institution.
(0:22:44)Talks about his politics at university, joined Liberal Club in his first week. Got involved also in debating society. Convenor of debates at that time was Elspeth Atwell (spelling?) who subsequently became a Liberal Democrat member of the European Parliament. Explains about Liberal Party in those days. Most successful event was when they arranged for Joe Grimond, then leader of the party, to speak at the university - standing room only. Recalls campaigning at by-election in 1963 when Alec Douglas-Home resigned his peerage and became Prime Minister. Speaks about other student activities he took part in, and people he knew. Set up Parliamentary debates which also involved George Robertson, later of the Labour Party. Malcolm was also features editor of the university newspaper.
(0:27:24) Did not know exactly what he wanted to do, interested in politics and current affairs, led him to believe he could be a commentator on political affairs, sought to pursue journalistic career once graduated. Speaks about Dundee during his student years 1962-66, in context this was in the years before the city was to lose out to Aberdeen in hosting the North Sea oil industry. Dundee at a low ebb at that time. Jute industry declining, very working class town, jobs disappearing, limited professional middle class. Describes slum areas. Very small university, only 1800 students in Dundee. Growing campaign for Queens College to become an independent university, which he opposed. More detail on this, and split of academic subjects between Dundee and St Andrews, and why he felt the way he did. Had battle to retain the student Rector position, won that argument.
(0:32:20) In 1966 graduated with MA in Economics and Political Science. Explains how he then moved into journalism, applied to various newspaper groups. Got offer from the Liverpool Post, his local newspaper, but very poor pay. Average student trainee salary then about £1000-£1200, he was offered £700. But he could live at home, and was quite prestigious. He did not get a decent training. Malcolm wanted to go out and report. Did not mind doing some sub-editing, but after eight months was told he would be doing that for the rest of his three-year training. Anti-social hours at a young age. So he handed in his notice, had to work three months notice, now blacklisted from doing another newspaper job. During that time found another job in London, as a buyer with Boots the Chemist. Mentions others at Liverpool Post around that time, including John Sergeant who would later become a BBC Political Correspondent, Robin Oakley (spelling?) and Ray Connelly (spelling?).
(0:39:15)Worked for Boots from 1967-68. A terrific job as Section Buyer, glamorous. Explains in detail what it involved. He was buying ten million pounds wholesale goods a year, for which he was paid annual salary of £1200. Two problems - could not really afford to work for them for that sort of money, about to get married, and still hankering for Scotland. More detail on the job, and why it was so interesting. Had he worked for Boots at headquarters in Nottingham would have got £1400 a year. No acknowledgement that London was expensive to live in. Malcolm managed to persuade Chairman of Boots one day in the lift that the company needed to change the way toothpaste was merchandised, was given chance to set up pilot project to demonstrate this. Explains, after he left he thinks Boots stopped producing their own toothpaste entirely.
(0:44:24) Saw a job advertised in Glasgow with Goldberg's (worked there 1968-69), young executive wanted to join successful Glasgow-based fashion business. Malcolm offered a salary of two thousand pounds, a car and removal expenses - got him back into Scotland. Did not work out. Explains why. Then saw Strathclyde University offering a post-grad degree in Marketing. Applied and got in (1970-71). Towards end of course applied back to Boots, and also Beechams - was offered job by them as brand manager for Silvikrin products. Turned them down because did not want to go back to London. Saw this job advertised promoting economic development in the North-east of Scotland, thought it was interesting.
(0:49:18) Not sure why he thought he would be suitable for the role with the North East Scotland Development Authority (NESDA). It was fairly junior post. They were looking for someone with a degree, with experience of business, and able to do research and publications. Malcolm had a mixture of experience appropriate for that. He had been looking for a Central Belt job, but thought he would be in Aberdeen for three or four years, so he took it. No previous links to Aberdeen, had only been there once on a tourist visit. Explains in detail what NESDA was. Following report by professor of Political Economy Max Gaskin in late 1960s on future economic prospects of the area, NESDA set up by the five local authorities at the time - Moray and Nairn, Aberdeenshire County Council, Kincardineshire, Aberdeen City, and Banffshire. Gaskin Report said unless they found 16 thousand jobs over next five to ten years they would not be able to stabilise the area's population. Explains how local authorities responded. John Hutton appointed as first director, more explanation of set up of NESDA, total of eight people including Malcolm. NESDA's job to identify investment opportunity. Because people were leaving did not have high unemployment, falling population. Malcolm explains what his job involved. He arrived in September, oil industry was around then but just looking at prospects, but in November BP announced discovery of what turned out to be the Forties Field. Very quickly things started to get exciting. (Takes break)
(SESSION 1 ends at 0:56:36)
SESSION 2.
(0:00:00) First impressions of Aberdeen on arriving in 1971 to work for NESDA. Very excited about the job. Married with children by then. His then wife burst into tears on being told going to Aberdeen, seemed far away. Malcolm not so concerned, it was Scotland. Decent salary, better than what he had been offered in London. Working for the council, treated him well. Lived in flat in Culter at first, later bought house. Tells story of how he came to buy a house in Banchory. Builders had not sold a house in months. Told people who expressed surprise as could not go home for lunch, and Banchory to them was somewhere you went on a Sunday run (in the car). People in Aberdeen then did not commute, many people went home by bus for lunch. Moved to house in Banchory about summer of 1972.
(0:04:40) Had settled in. Found working in small NESDA office congenial, it was in Chamber of Commerce building in Union Terrace - city centre. Describes colleagues John Hutton, Jimmy Dinnes (spelling?), Elizabeth Walker. Quarterly newspaper called Northern Lights. Compiled data. Very quickly things started to bubble up with the oil and gad industry, after BP announcement (re what became Forties Field). Describes how they started to pull together data on the oil industry, and find out how many companies there were. Local people starting to say what is going on, so NESDA became a clearing house. Texans starting to blow into town with big talk. No one really knew what was going to happen, scale was not clear. Explains in detail how they dealt with all this. NESDA acted as a filter. Worked quite well. Advised people on other ways to get involved.
(0:09:48) Describes going in at 8.30 in the morning and there was a queue of people down the street wanting to see them, and still a queue at 6.30 in the evening. Then beginning of things like the Houston-Aberdeen link, the offshore technology conference which the P&J and NESDA jointly organised to take people across there, which they still do. Also first Offshore Scotland exhibition, which developed into Offshore Europe. Pretty exciting, journalists started arriving from all over the world. NESDA's job to produce best case they could. Important thing was NESDA was the crossroads of everything, tiny organisation. Pays tribute to Maitland Mackie senior who was the chair of NESDA. He was convenor of Aberdeenshire County Council. Interesting political undercurrents - explains this in context of his time in Dundee, and also how it led him into more active political engagement. Friction between the City and the Shire over implications of the oil industry and how they should respond. Explains. City were quite hostile to it, Shire were the opposite, saw it as an opportunity. City was more tightly drawn then, so County had land on the outskirts of the city which they could do things with. Dundee saw a bit of an opportunity. Conoco said they were going to headquarter in Dundee, BP split it - that made Aberdeen realise they had to be much more committed. Maitland Mackie never wavered, had a Texan wife which may have helped. Visiting Americans loved him, he made sure they had good dinners but also good information.
(0:14:42) They said once they started escalating activities they would need to bring a lot of people in. So Aberdeenshire bought 500 wooden houses from Norway and put them up in Kemnay, while city were havering, showed real commitment. Explains how NESDA expedited all this activity, by making sure people got as much information as possible. Reveals one question he got routinely asked was how many months of the year Aberdeen was free of ice. But although no ice problems, weather problems - they brought their stuff in from the Gulf of Mexico, got smashed to bits in the North Sea. Lots of silly things going on. House prices started going up, developers wanted to come in and build houses. Before that building was small scale, new idea to build hundreds of houses. NESDA started to do forecasting, by asking the companies, and estimating how many people would be coming into the area, and employment prospects. Piece of practical research. Produced first forecast predicting in five years industry would employ five thousand people directly, and five thousand in spin-off services. And could go to ten thousand in years beyond.
(0:19:13) Can remember a tv company doing a broadcast in the Town House with leading figures, about 1973-74. Can remember Prof Donald Mackay denouncing their forecasts - we had produced a report saying Aberdeen set to become Europe's Offshore Oil capital, potential of ten thousand jobs. Prof Mackay produced his own report two years later, predicting almost same thing, but by then Malcolm says the figures were escalating beyond that. Mentions Jimmy Simpson, his semi derelict warehouse at the harbour, and inquiries from oil industry, that led to him setting up Aberdeen Service Company, later ASCO. Other things followed on from that. Explains. Issues with the airport, the heliport, and the sea port. Recalls on one occasion that the harbour board decided to meet the needs of the industry, would have to do away with the tidal gates, which allowed deeper draught ships access to the harbour despite state of the tide. Oil industry wanted round the clock access and their boats did not require the deep water. Removal of gates meant need to reinforce the quays. Explains in detail what was involved. But board were told the return would not be enough for the investment, which surprised them, so they phoned Malcolm asking for help in making their case. He phoned all the oil operators, supply boat contractors etc to try to get a range of movements. Was able to put together a brief report saying what was likely, on back of that the board made their case and got the loan. Thinks they had to guarantee the loan would be paid back in ten years, thinks they paid it back in six months. It was that time when everything was buzzing and unpredictable, people did get their fingers burned, but more often things were above expectation rather than below.
(0:27:42) Addresses question of why Dundee, with better harbour facilities, did not become the hub of the North Sea oil industry. Two things - proximity. Dundee did not lose it all. It may be threat of Dundee was a healthy thing. NESDA board structure - Maitland Mackie was the chair, someone from the city whom he can't remember was vice chair, not very constructive. But managed to persuade John Smith, who was the (Lord) Provost, to become the deputy chair - now Lord Kirkhill. He got it, immediately had a chair and vice-chair who were on the same page, had to make sure Aberdeen did not waste it. The key movers and shakers realised we had the advantage, but we had to secure it, otherwise we would lose. Aberdeen had advantage of having more professional business people - Dundee a declining industrial city, and had relatively lower base of business. These people understood the opportunity of oil. Another interesting twist. John Davies former head of the CBI was appointed by the government as minister of technology. Malcolm took a phone call from his office saying the minister had to answer a Parliamentary question that afternoon about the number of North Sea jobs and the prospects over the next few years, and they had been told Malcolm might be able to answer that question. Malcolm queried the fact that since the government were issuing the licences (for exploration), surprised they did not get reports back. He gave them the information, but thought if the government did not know what was going on he might as well get himself elected. Tells story of how (former Conservative Prime Minister) Ted Heath came to the NESDA offices after losing the 1974 election, we answered all his questions. Malcolm had already been a Liberal candidate. As Ted Heath was leaving, Malcolm declared he had been a Liberal candidate, but offered opinion that if Heath had made the visit six months earlier he might still have been Prime Minister. Told him he had fought election over three-day week and the miners' issue at a time when world oil prices were escalating, and he could have made a settlement without disrupting his pay policy.
(0:35:03) Oil industry development was all going on and the government wasn't really taking much notice of it. One of the battles we had was getting the government to understand this was a major transformative thing. Talks about the fabrication yards and all the white elephants we opened up, government were very slow to respond, a lot of things could have been done a lot earlier. Reality is the industry success has been achieved not only largely without government help, but in spite of government. Malcolm says his time as an elected representative in Parliament, constantly fighting to get the government to understand the industry and address it. Aberdeen created its own critical mass. Explains this in detail, including coming across successful companies at industry award ceremonies that he had never heard of, because they were specialist. During this reveals that Texaco located their Tartan platform in the wrong place.
(0:39:40) Oil industry has provided on average about 20% of all UK fixed investment in the industrial sector for about 40 years. People have no real conception of how big a driver of the UK economy it has been. Balance of payments have benefitted. Addresses question of NESDA's set objectives - simple objective, to create enough jobs to stabilise the population. Goes on to explain in more detail what they realised about how to approach the task. Wanted to stress the quality of what we had to offer. Some of the things that did not happen - transport infrastructure (pause for break- recording continues). Recalls that government did allow extra rate support for five years - but not that big, and it was for only five years. At same time Shetland was negotiating a share of the revenue, Orkney followed suit, which we've never done here. In a sense that is fair enough, we are doing the support - the oil does not come ashore here. What we have not had is a sustained revenue base - explains. Malcolm has had constant battles with successive governments - element of public wealth and private poverty, explains why he thinks what happened is unfair.
(0:45:05) We're just building the Aberdeen western peripheral route nearly 50 years after we discovered the industry, and at a time when the peak and the expansion has come to an end. Have not upgraded the rail links. Airport is not too bad. Generally been frustrating, have to now think through the long term legacy. Going back to those early days, did have real local engagement. Unfair to say oil industry has not put in as much as it might - but compared with other oil centres, although Aberdeen calls itself Europe's Offshore Capital, does not feel like it walking down Union Street. It never has. Speculates as to why - Aberdeen University very slow to engage with oil industry. Malcolm blames almost everybody. Thinks NESDA was a piece of serendipity. Talks about the credit that should be given to John Hutton, a really good leader. NESDA had no money, but was the gatekeeper to those who had. Then the oil industry arrived, NESDA deserves credit for handling that as well as it did. Pays tribute to the role that local banks played, including John Davidson of the Royal Bank of Scotland. Recalls he used to host lunches on the top floor of the Union Street branch. He would bring movers and shakers together, informal networking. It was fortunate for the North-east that NESDA was there, although set up for other reasons, when oil industry arrived.
(0:51:47) If NESDA had not been there, would not have been the vehicle to get the City and the Shire to work as closely as they did. A sort of rivalry between the two would have characterised the response, which would have been less helpful. Explains how Aberdeen was a relatively congenial place to be posted to work for the oil industry. In beginning, in first year or so he worked for NESDA, lot of patronising by Americans, Texans coming in. Very quickly they realised the North Sea was a different kettle of fish, and they needed local knowledge. A lot of people came in to Aberdeen, not just Aberdonians, and seized it with both hands. Made city cosmopolitan. People said the oil industry was going to destroy the character of the North-east, thinks instead we have imposed some of the character of the North-east on the industry. Recalls Grampian Television made an hour long documentary to promote the area, which featured the oil industry among other attractions, the best of the locals absorb it and feel comfortable with it, Aberdeen is a fairly outward looking city in his opinion.
(0:56:27) Public perception of NESDA in those early days. Relatively well-known, perhaps not by average person in the street. People in the know aware of it. Refers again to queues round the door, clearing house for information. In that sense quite a high awareness. When local government reorganisation came along, changed things, Malcolm reassessed his position. Explains against background of being a Liberal candidate. 1975 reorganisation meant NESDA became a Grampian Regional Council body, staff had to reapply for their jobs. Malcolm applied for deputy's job, did not get it, but got his own job. Talks about another job at Aberdeen City Council which he was interested in, and what happened. Then about Ted Strachan, industry and energy correspondent of the Press & Journal, who had moved across to Noroil magazine, and how Malcolm came to work for Noroil. Then how they set up Aberdeen Petroleum Publishing.
(1:02:41) Describes in detail a typical working week at NESDA, things they did, and people.
(1:06:51) Describes in detail in that period 1971-75 what he thinks were NESDA's successes. Baker Oil Tools. Housing boom. Harbour development. Helping oil companies.
(1:09:57) Talks about the effect of oil development on North-east council areas further away from Aberdeen. Some success in Huntly. Peterhead became base in its own right. No point pushing industry where it did not want to go. Ripple in a pond effect. Castles and other old buildings renovated. Always conscious we were North East Development Authority, not Aberdeen Development Authority, but you have to go with the flow.
(1:13:32) Describes in detail the influence of NESDA's first director John Hutton. Calm, quiet and thoughtful. Found appropriate role for everybody. Not a great orator, but a sound grasp of what was needed. A good boss.
(1:16:15) Underestimation of oil and gas reserves in early days, how did NESDA see that changing? NESDA needed to present the case and the facts, but realised the case was pretty big. Dilemma NESDA had was promoting but not over-exaggerating. Frustration of government and other people not appreciating how big it really was, a UK-wide business, probably a million people employed at its peak. Refers to his party being in coalition government in 2010 - first time in government since 1922 - and in first budget a windfall tax was imposed on the industry, despite both Liberal Democrat and Conservative party manifestoes promising no change. No consultation, Malcolm publicly opposed this, the tax immediately stopped investment. Government prediction of two and a half billion pound increase in revenue turned into a similar loss. Net loss of five billion. Recalls that getting support from fellow MPs to challenge this was extremely difficult. Often thinks the fishing industry gets more attention, despite contributing far less to the UK economy. Blames fat cat attitude towards the oil industry. Mentions visit to Aberdeen by Vince Cable, current leader of the Liberal Democrats at time of interview, but then the government Energy and Business Secretary. He was surprised at the scale of the oil industry operation, said it was bigger than aerospace industry. Compares this with situation when Malcolm was at NESDA, says it has not changed.
(SESSION 2 ends at 1:23:45.)
SESSION 3.
(0:00:00) Clarifies that the visit to Aberdeen by his Liberal Democrat colleague Vince Cable, mentioned at the end of Session 2, probably took place in the summer of 2012. Explains in detail why it was important to impress on Cable the significance of the oil industry in UK terms, particularly at a time when the coalition government had imposed a windfall tax on the industry, causing it damage and thus losing the Exchequer money. Compares this to similar government approach to the Whisky Industry. Expresses astonishment at how governments fail to learn from their previous mistakes.
(0:03:38) Only a handful of 650 MPs in UK had real understanding of the North Sea oil industry. Explains, including background to the windfall tax change, and how Malcolm expressed his anger - then got government to act by setting up a task force. Positive outcomes, including creation of the oil and gas agency. But Treasury lost billions, lost jobs, lost investment. Relationship with industry was rebuilt, but then the oil price collapsed.
(0:06:57) Not first time for windfall tax - says there have been more tax changes to the oil and gas regime than in any other country in the world. Expounds on this in detail. Significance of London and Wimbledon.
(0:09:47) Returns to speaking about his career, starting in 1975 when he was coming to the end of his time with the North East Scotland Development Authority (NESDA). Thinks he left NESDA about mid-1975. Talks about job he applied for with Aberdeen City Council, and what he considers was the odd interview process, when a candidate who did not turn up was later permitted to be interviewed separately. Talks about the difficulty he perceived of being taken on for a job by any council because he was known to be a political candidate. Ted Strachan, who had been industrial and energy correspondent for the Press & Journal newspaper in Aberdeen, had left to become UK editor of a Norwegian magazine called Noroil. He suggested Malcolm be brought in as a commercial director, to help promote the magazine. They set up a little office in Aberdeen, did that for a few years. Meantime, invited to stand as Liberal candidate for West Aberdeenshire constituency. Balancing work with campaigning, explains in detail. Because Noroil sometimes suffered difficulties getting its editions out, Ted and Malcolm decided it would be better to set up their own organisation, Aberdeen Petroleum Publishing (in 1981). Main aim to produce weekly newsletter for the industry, also set up a contacts directory for the industry. Explains about this, and publication (in 1982) of first Scottish Petroleum Annual - to which the interviewer also pays tribute.
(0:16:00) Talks more about the weekly newsletter. Explains how they called the operators every week, finding out about drilling success and progress. More detail on how this was done, and the service they provided to many firms in the industry. Main competitor the Financial Times (FT). Thinks they got to stage where they complemented the FT, who did the London City end of things, while they did the sharp end. You need both, but FT had more resources. Explains how their small business operation was financed, had to sign over their houses. Tells how at one point their accountant told them they were technically insolvent. Malcolm was only two years into this operation when he was elected in 1983 as an MP (for the Gordon Constituency). Explains more about the change from Noroil to Aberdeen Petroleum Publishing, and what both produced in terms of material.
(0:22:51) Aberdeen Petroleum Publishing was really just Ted and Malcolm and their wives initially, rented a two-room office in Huntly Street, Aberdeen. Explains in more detail about their aims, and how they went about selling their publications. Subscriptions up front, bit of a struggle. Inconvenient when Malcolm got elected in 1983, business had really just got established. Explains about changes to Parliamentary constituency boundaries resulting in creation of the Gordon constituency. Supposedly a safe Conservative seat. Malcolm was one of 17 Liberal MPs. Talks about his early time as an MP, and how he continued to try to balance this with work for Aberdeen Petroleum Publishing. Ted and he came to conclusion they should part company, Malcolm sold his share back.
(0:27:50) Explains about the newsletter and dealing with commercial information, no major problems with the oil companies. Ted and he were both well known names in the industry, so there was trust. Explains in detail how it worked, and what they were publishing information about. Malcolm was more keen on editing the information, Ted wanted to publish as much as possible. Never made massive returns, talks of rival services which made more money. Ted Strachan carried on the operation by himself after Malcolm left, and eventually sold it. Malcolm left operation in about 1984.
(0:31:50) Explains what happened to NESDA after he left the organisation in 1975. John Hutton left, Ronnie Sampson (spelling?) came in. Things changed. Malcolm's successor was Crawford Gordon, who then saw the opportunity and moved to BP. Other organisations started doing the work NESDA had done - explains. Comments on his disappointment in later years, with Scottish Development Agency, and later with the SNP government, when the local enterprise stimulation was centralised. Thinks this was big mistake, done for political reasons. Local people working with local entrepreneurs the best way. Thinks NESDA effectively became Grampian Enterprise, a hybrid council/government organisation. Malcolm thinks this was not so bad, because still had significant local dimension. Talks about how he involved himself in this as an MP. Talks about Lawsons of Dyce meat products plant, which went bust, and Jaeger knitwear factory in Huntly, how he encouraged local council to help, and what happened.
(0:38:13) Not really any equivalent to NESDA nowadays (2017). Talks about the different way it is done now, city regions concept. Coalition government of 2010. NESDA was really an information exchange. Talks about how becoming an MP in 1983 affected his interest in the oil industry. Asked then Liberal party leader David Steel if he could be oil and gas spokesman, but Steel wanted him as Scottish spokesman. Continued to make sure he kept connected to the industry during his 32 years as an MP. Explains what this involved, also the various jobs he did for the Liberals, then for the Liberal-SDP coalition. Mentions being proud of the work he did with Donald Dewar (Labour politician) in helping create the Scottish Parliament. Thinks his work with the Scottish Constitutional Convention meant he spent less time in his constituency - so nearly lost the Gordon seat in 1992. People in his constituency not so interested in home rule stuff as economics. Malcolm never lived in the constituency, ironically - explains why.
(0:46:08) Explains what it was like to address the House of Commons about oil industry matters as his party's energy spokesman in 1986-7. Informing them, telling them this was a major international industry, a huge achievement, needed to be treated with respect. Tax changes. Tabled debate in the House on helicopter safety after he became MP in 1983, RAF still using Aberdeen Airport, near misses with North Sea helicopters. But Isle of Scilly helicopter crash occurred before the debate took place, which meant his debate in July became front page news, although focussed on a commercial flight in SW England. Mentions importance of North Sea helicopters, Piper Alpha disaster. Did not want so many restrictions placed on the oil industry that it could not function, pays tribute to Lord Cullen's report on Piper Alpha disaster. Talks of co-operation with other local MPs with similar interests in North Sea, including Frank Doran (Labour), Conservatives more difficult, not very collegiate. Alex Salmond (SNP), and some of the East Anglian MPs. Mentions more recent members of the All Party group, including Anne Begg (Labour), tries to remember the name of the Conservative energy minister who stood down at the 2015 General Election. Talks about how as the industry became weaker in recent times, more understanding from government.
(0:52:48) Explains why he thinks the oil industry has less success influencing government than other big industries. Sensitive area - oil companies as matter of global policy do not support or engage with political parties financially. Have to deal with so many regimes around the world. Other sectors don't take same view, so sometimes buy influence. Oil industry could sometimes take better advice - explains. Talks in detail of period when BP were outsourcing jobs in the late 1980s or early 1990s. Malcolm says he was shut out when he tried to engage with BP, who next year made a loss. Industry has not always invested as well as it might have done. Speaks about Brent Spar incident in 1996. International campaign forced Shell to back off, they should have seen that coming. Malcolm thought he might have had a career giving advice at one point. Explains how he gave advice for free, and to whom.
(0:58:23) Talks in detail about 1988, year of Piper Alpha disaster, formation of the Liberal Democrat party, and Malcolm becoming first leader of the Scottish Lib-Dems. Explains about messy merger between the two political parties, Malcolm took a role in that. Explains background. Was approached to be party leader, but personal situation difficult at the time, so not for him. Instead Malcolm agreed to run the leadership campaign for the successful candidate, Paddy Ashdown. Explains about Scottish party leadership. More detail on Scottish Parliament blueprint. Refers to Tony Blair's 1997 landslide Labour win in General Election. Scottish Parliament was established in 1999. Big chunk of what Malcolm was about, but decided not to stand for the Scottish Parliament, explains why.
(1:05:30) Talks about how he first heard about the Piper Alpha disaster in 1988. Was on a Select Committee visit in Romania at the time. Decided as a local MP he should be engaged, but also should not be in the way. So decided not to go back immediately to UK. Had constituents who were involved. Had to ensure the lessons were learned. Talks about companies he was in contact with, what they thought of the disaster, and did about it. Explains difficulties he thinks are created by having a memorial for a big disaster, but not for people whose individual loss is just as tragic for their families. Really important thing is to look at what happened, why did things go wrong, what can we do right? Praises Lord Cullen's approach, making companies say how they intend to make things safe, and then having a government agency signing off on that.
(SESSION 3 ends at 1:05:30)
SESSION 4.
(0:00:00) Malcolm explains in detail how he sees the significance of the creation of the Offshore Supplies Office, and the British National Oil Corporation (BNOC), in the mid-1970s. Reasonable for the Labour government of the time to do this. But Malcolm critical of decision to set them both up in Glasgow, done because at the time the centre of gravity of the Labour Party in Scotland was in west central Scotland. Malcolm at the time made a cheeky comment that this was about as sensible as putting the HQ of the National Coal Board on Barra. But serious point was that the OSO needed to be close to the industry, and BNOC wasn't the industry. OSO did open an office in Aberdeen. Remembers first head of OSO was John D'Ancona. There were occasions Malcolm thought the OSO was pushing the industry in the wrong direction, but no real criticism in principle. Had some successes in getting some American companies to establish bigger bases, manufacturing facilities, mentions Baker Oil Tools. Biggest success story of oil was the Wood Group, starting as a family business in fishing industry. New young scion in Ian Wood. Now in 2017, with takeover of Amec Foster Wheeler, called just Wood, a FTSE 100 company. Ian Wood now probably our first home-grown oil billionaire. Comments on significance of this in context of OSO. OSO and Britoil eventually disappeared. Thinks the North Sea oil industry has put roots down. Thinks Aberdeen's universities have got themselves plugged in - recalls tetchy conversation about industry with former University of Aberdeen principal. That principal's view about fly-by-night industries did not prevail. Skills built up. Local authorities realise significance. Hundreds of companies engaged both locally and globally. Huge asset. Now need to ensure that whatever the government, it understands we have great export capacity, a global market, an internationally connected industry. To sustain that into future, need to optimise our own research and development and operational activities in UKCS as long as we can, to service the industry worldwide. Expounds upon this in detail. Looking to long term, as industry declines, but continuing opportunities.
(0:12:01) Critical mass achieved in North-east? Thinks it's achieved, but not yet secured. Explains why in detail. Hopeful that people in the industry will still see the North-east of Scotland as a good place to be based, even as the focus of the industry moves elsewhere. Good quality of life, culture, and leisure activities. Hugely helpful to have a company of the scale of Wood based here.
(0:17:10) Wood Group the exception? Have people from the North-east been entrepreneurial enough? Explains that when you go to oil industry awards ceremonies, the companies are often not household names, but don't need to be if their customers know who they are. But if you sell out to a company in Houston or Singapore, then over time that is where the focus will gravitate. Talks at length about the contribution the North-east has made to the character of the oil industry. Home grown businesses have benefitted from the industry. Malcolm fairly positive that most of it has been a good thing.
(0:22:26) Addresses the issues raised by the 1970s political satire "The Cheviot, the Stag and the Black, Black Oil", which equated the coming of the oil industry to what happened to communities in Scotland in the earlier Highland Clearances. Malcolm thinks local people can control their environment, if an industry comes in paying better wages, existing industries have to adapt. Some did, some didn't. Does not think the demise of the local paper industry was caused by the oil industry. Regards the "Cheviot" as an entertaining piece of socialist propaganda. But concedes the disruption to the local environment caused by the scramble to build fabrication yards for building oil platforms, yards which were only needed for a short time. Explains in detail his views about what happened, laments that Glasgow did not have the deep water facility and was on the wrong side of Scotland, unlike deep water shipyards on west coast of Norway. "Cheviot" also demonising the industry. Shetland and Orkney managed the industry, Aberdeen and the North-east differently managed it because of existing professional infrastructure. Refers again to NESDA and getting the balance right, most of the time he thinks it was right - but have to keep doing it.
(0:28:14) Thinks more should have been done at an earlier time regarding the transport infrastructure of Aberdeen. Explains why, mentions NESTRANS (the North East Scotland Strategic Transport Authority) and his involvement with it. Delay in putting together proposals. Commuter rail routes proposals. Mentions Beeching rail cuts of the 1960s, should have protected the rights of way. Malcolm has supported idea of re-opening the rail line to Ellon. Problem of single track line to south. Mentions it took 30 years to get new crossing of the River Don in Aberdeen, explains why, also about the ring road delay. Given massive investment in North Sea oil industry, does not think Aberdeen and North-east have been given a fair crack of the whip, local authorities fighting for investment. Remembers the term he was thinking of earlier was "The City Deal", supports that, should have happened years ago. Let's make Aberdeen look like it has had 40 years of oil, but Union Street does not look much different to 40 years ago, sad and neglected, no proper focus. We should have done more to have a vision for ourselves, explains in context of national, Scottish and local taxes. You would have thought more resource would have been put into making our city region more of a showpiece than it is.
(0:36:43) Explains in detail the circumstances in which he qualified as a barrister, after nearly losing his seat in 1992. Also explains why he never practiced as a barrister.
(0:39:59) Explains how much his knowledge of North Sea affairs played in his being appointed as his party's Shadow Secretary of State for Trade and Industry in 2004. Asked for the brief, could make use of his oil and gas experience. Future of Royal Mail and the Post Office, issues important to the rural parts of his constituency. Recalls how when he was the party's oil and gas spokesman as a candidate, before he was elected, wrote a couple of pamphlets on energy in the wake of the OPEC oil crisis in the 1970s, encouraging diversification into renewable energy. Critical of nuclear energy as uneconomic, and strangling every other form of energy investment. Says they were lying, claiming nuclear energy was cheap. Thinks nuclear power stations were not efficient or cost effective. Atomic Energy Authority (AEA) was given responsibility for all energy investment, so any alternative energy that looked like it might be competitive with nuclear power was quickly choked off. Britain was a world leader in wind energy in the 1980s, the government did not support it, and Denmark took over the lead. First commercial wind turbines were developed in Scotland. Mentions wave power, and solar panels. Malcolm not just an oil and gas specialist, all about energy mix. Criticises present Conservative government for cutting incentives to solar and wind power. Explains in detail about cross-over technology. Then became Treasury spokesman - proposed reforming Bank of England and making it into a United Kingdom reserve bank. Explains why. Also about his views on the Scottish Parliament and local government. Believes the SNP government have sucked power up from the rest of Scotland.
(0:46:49) Addresses idea of an "Energy Corridor" between Aberdeen and Peterhead - does not think a lot has happened in practice. Idea fine, but will only work with investment. Does not know if the impetus is there. Refers to time he started with NESDA before they knew oil industry would come, North-east has a problem persuading people this is a good place to be. Expounds on this in detail. Says it took him about 25 years of campaigning to get the dual carriageway completed between Aberdeen and Ellon, compares this with road transport developments in Central Belt which he questions the need for, including the new Queensferry Crossing over the Forth.
(0:50:57) Talks about being appointed to Her Majesty's Privy Council in 2006. Great honour, hangover from mediaeval times. Explains how it works. But does mean on occasion you get briefed by government ministers on sensitive issues, that may relate to your constituency. Hints that this may have sometimes allowed him to deal more effectively with issues relating to the North Sea oil industry. (Asks to take a short break)
(0:54:40) Comments on being knighted in 2012 and being appointed to the House of Lords in 2015, after deciding not to stand as a candidate in the 2015 General Election. Explains this allowed him to continue having a London life without having a London base. Explains what he contributes to in debates. In favour of reform of House of Lords, but thinks a revising second chamber is necessary, he certainly would not abolish it. Recently raised his concern about impact of Brexit (Britain leaving the European Union) on the Aberdeen area.
(1:00:30) Gives his views on what effect Brexit might have on Aberdeen and the North-east of Scotland. Likely to be disproportionate effect on Aberdeen. Potential difficulty of exporting our technology to the EU. Will only realise full effect of it in five or ten years.
(1:04:03) Summing up, would not say the coming of the oil industry saved Aberdeen and the North-east economically. Area has a natural resilience. It's difficult to know what we would have achieved without it. Gave us opportunity to create a much stronger, technically-geared economy, more global in outlook. Challenged by the Gaskin Report about where we were going to find 16,000 jobs, in the end we found 60,000. Despite being chaotic at times, think we responded reasonably well. Don't think we got the support from government that would have made it even better. Area has history of survival, picking the right horses, mentions its backing for his great namesake and ancestor Robert the Bruce. Aberdeen did have enough qualities to take advantage of oil opportunity, other places might not have done so well. Also provided something for the oil industry they did not know to expect. People who have made a career here, who never expected to be in Aberdeen, will put roots down for generations. That should be the legacy, make sure people want to stay here.
(SESSION 4 ends at 01:07.17) |