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A new public body is required to identify UK oil and gas assets in need of temporary public investment to prevent platforms and pipelines being lost for good, according to Labour.

Scottish Labour leader Kezia Dugdale has proposed a new body called UK Offshore Investment Limited (UK OIL) to conduct an “open book” review with the Oil and Gas Authority to identify assets with long term viability and profitability and weather the storm caused by 40 dollars-a-barrel oil.

She called on Chancellor George Osborne to use this week’s Budget to “invest in the future of Scotland”.

“The low oil price means a continued risk to Scotland’s economy and to jobs across the country,” she said.

“The oil and gas industry, including workers, have been calling for more support for investment.

“Tax cuts will not go far enough – we need real support to ensure that North Sea assets are not lost because there is a lack of support for investment.

“We believe that the UK Government should step in and share the risk when times are tough.

“Our proposal for a new UK OIL agency would help to prevent assets, such as platforms and pipelines, being lost earlier than planned.

“Once these assets are gone they are gone for good, with all the benefits they bring to Scotland’s economy.

“We have to do all we can to stop that happening and then review investment once the oil price rises again.

“Our economy doesn’t need more austerity and on Wednesday the Chancellor should stop his race to cut to the bone. Because of George Osborne’s policies, the UK has experienced the slowest recovery from a recession in over a hundred years.

“Ordinary working people in Scotland have borne the brunt and our most vulnerable are facing even more cuts from the Tories. We can’t go on with more of the same.”

Labour’s shadow Chief Secretary to the Treasury Seema Malhotra said: “At tough times such as these, the UK Government should step in to support our oil and gas industry as an essential part of the UK and Scottish economy.

“We need to do all we can to protect jobs and to make sure that important assets in the North Sea are protected for the future and not decommissioned early.

“Labour would support investment in the industry to make sure that there is a bright future for the North Sea when oil prices begin to recover.”