Oil Fund

– in the Scottish Parliament at on 4 September 2013.

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Photo of Drew Smith Drew Smith Labour

5. To ask the Scottish Government in what year it anticipates an oil fund could be set up in an independent Scotland. (S4O-02326)

Photo of John Swinney John Swinney Scottish National Party

The fiscal commission working group is developing a fiscal framework to ensure that, from the outset, an independent Scotland will have in place a mechanism to manage year-on-year changes in oil and gas revenues and to ensure that, when appropriate, a proportion of those receipts is invested for the long-term benefit of the people of Scotland. The fiscal commission working group will in the coming weeks publish a report on the operation of an oil stabilisation and savings fund.

Photo of Drew Smith Drew Smith Labour

I thank the cabinet secretary for that answer—although he did not provide us with a better answer than the Deputy First Minister managed on Radio Scotland yesterday.

Does the cabinet secretary at least accept that tax revenues from the North Sea cannot be spent twice in an independent Scotland, any more than they can be in any other country? Given the conflicting views that have so far been expressed by Scottish ministers on the matter, will he tell us now whether he plans to take money from public services to pay into an oil fund while Scotland remains in deficit?

Photo of John Swinney John Swinney Scottish National Party

The Scottish Government’s position on an oil fund has been absolutely consistent, and it is that we can contribute to an oil fund only when the circumstances and opportunities enable us to do so.

The illustration that I give to Mr Smith is about the last year for which information is available. That information shows that, in 2011-12, Scotland had a relative financial surplus of £4.4 billion. To translate that into other language—for the benefit of Mr Smith—that means that Scotland was in a stronger position, in terms of our public finances, than the rest of the UK. That opens up choices for Scotland to spend more of that differential advantage, to invest more in an oil fund or to reduce the level to which we borrow. However, those opportunities will arise only if we are able to exercise the control that would enable Scotland to take those decisions and to have the responsibility for doing so. Of course, we cannot do that under the current constitutional settlement and will not, if Mr Smith has his way, be able to do it in the foreseeable future.

Scotland has experienced a wasted opportunity because of the way in which our oil revenues have been mismanaged since the 1970s by UK Governments. This is the opportunity for Scotland to take control of those issues and to ensure that we have the ability to invest the wealth of Scotland to create the most secure possible future for the people of Scotland. That will arise only out of independence.

Photo of Stewart Stevenson Stewart Stevenson Scottish National Party

Does the cabinet secretary agree that Alistair Darling was being honest when he was interviewed on the BBC’s “Hardtalk” on 19 August and conceded that UK Governments have wasted oil revenues by not investing in an oil fund? Will the cabinet secretary note that, in that interview, Alistair Darling admitted that there was no question but that Scotland can be successfully independent?

Photo of John Swinney John Swinney Scottish National Party

Alistair Darling’s comments are an interesting departure from all that he presided over when he was a minister in the United Kingdom Government. His admission that Scotland has the ability, the capability and the resources to be independent is a welcome concession at such a late date. Given the fact that he has been part of the regime that has so wasted Scotland’s oil resources, his admission that he now sees the advantages of an oil fund is also welcome. Of course, he is not alone—many other commentators have recognised exactly the point that Mr Darling has now made—but it is welcome when we have some conversions in the arguments that our political opponents put forward.