SNP MSP Mark McDonald has condemned the UK Government after more than half of oil and gas operators surveyed said they believe the increase in supplementary tax on North Sea Oil has harmed industry investment.

Results of the 15th Aberdeen and Grampian Chamber of Commerce (AGCC) oil and gas survey showed George Osborne’s March budget decision has knocked confidence and is harming investment.

Mr McDonald, SNP MSP for North East Scotland, who led a member’s debate on North Sea taxation, believes the survey shows alternatives are needed to boost confidence in the sector.

He said: “This survey reinforces the fact this disgraceful tax hike has had a negative impact on Scotland’s oil industry.

“It comes only a few weeks after David Cameron visited Aberdeen and said the increase had not damaged the industry.

“The oil and gas operators clearly disagree with the Prime Minister which shows how out of touch he is with what is happening and affecting the Scottish oil industry.

“It also strengthens the First Minister’s call to establish a procedure for a statutory consultation period of a year before applying changes to oil and gas taxation.

“This would restore confidence in the sector – something that is clearly desperately needed.

“Whilst firms like BP are investing and a report last week showed there was still £376billion of value left in the North Sea this survey shows there could be much more.

“It is time for the UK Government to reverse the increase and instead help the industry regain confidence which will encourage growth.

“The SNP is working hard to attract investment in North Sea Oil but Westminster interference risks some fields being left underdeveloped. After 40 years of inept management by the UK Government, it is time Scotland was given a chance to control these natural resources."