Labour backbenchers pressure PM to let energy secretary decide on Rosebank

The Labour Party is experiencing internal friction over the Rosebank oilfield in the North Sea. A group of backbenchers is urging Prime Minister Andy Burnham and Chancellor John Healey to leave the final decision to Energy Secretary Miatta Fahnbulleh.

Sources indicate Fahnbulleh is leaning toward refusing environmental permission for the project. This stance has created a visible split within the cabinet. Officials close to Healey say he supports the scheme, and some in government believe Burnham also favors moving it forward.

Backbenchers concerned about the environmental impact are lobbying their party whips and Downing Street. They want to ensure no other minister intervenes in the energy secretary's judgment. Catherine Fookes, a member of the energy select committee, stated that approving the field would damage the party's green credentials.

Fookes noted that a group of MPs is making it clear to leadership that this should be Fahnbulleh's decision. She added that the project would go against the thrust of the Labour manifesto. Another MP described the situation as politically explosive if Healey pushes the project through.

Aides to Fahnbulleh circulated a memo to MPs to address concerns that the energy secretary might be overruled. The memo stated that no decision has been made yet. It asserted that Fahnbulleh is the only decision maker and will consider all relevant factors in a quasi-judicial process.

Burnham has described his approach to North Sea drilling as pragmatic. He recently called the Jackdaw gasfield, which the government approved last week, a bridge to the future. On Wednesday, he told the House of Commons that using reserves can support a clean energy future.

Treasury officials revealed that tax revenues from Rosebank were already included in forecasts from the Office for Budget Revenue. The OBR projected that annual oil and gas production would decline by 14% per year without new fields. The forecast includes production from currently producing fields and new developments like Rosebank.

Treasury officials said including these revenues does not prevent the energy secretary from blocking the project. However, some Labour MPs argue the Treasury is using aggressive tactics to influence the energy department. One MP described the approach of Number 11 as macho bullshit.

Clive Lewis, a Labour MP, argued that the government cannot claim climate leadership while approving new oilfields based on penciled in tax receipts. He noted that these receipts are operator estimates rather than actual Treasury revenue. Areeba Hamid of Greenpeace UK said that approving new drilling leaves taxpayers on the hook for decommissioning costs for decades.

MPs expect a parliamentary rebellion on Rosebank. This differs from the Jackdaw field, where gas was approved for domestic consumption. Fookes stated that the case for Jackdaw was accepted quietly, but Rosebank is a distinct issue for the party.