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Oil revenues to go in ‘future generations fund’ says Scots independence report

Friday May 25th, 2018

All future North Sea revenues should be set aside in a wealth fund, according to a new report setting out the economic case for Scottish independence (May 25th).8793_carbon

The SNP’s Growth Commission report, unveiled today by First Minister Nicola Sturgeon, said a new Fund for Future Generations should support the public sector.

It would also aim to exploit “inter-generational opportunities” in infrastructure, innovation and the development of future renewable energy schemes.

It suggests the fund could be managed through a Scottish Investment Bank, run by Scottish Enterprise.

According the report, the UK Government has received around £328 billion in revenue from North Sea production over the last 40 years.

It argues this fund would be different from the wealth fund established in Norway, worth around £750 billion, which is largely used to invest overseas.

The document said “the situation in Scotland is different and, therefore, the Fund for Future Generations should have a different role”.

The SNP said the value of the fund would depend on oil price.

According to the report, an independent Scotland should be able to “reap the long-term benefits” of oil revenues for years.

It argues that recent investment in the North Sea, coupled with rising oil prices, means the country could reap the benefits of oil revenues “if they are stewarded sensibly”.

Like revenues, oil and gas exports are also to be treated as a “bonus”, however adding oil and gas could increase Scotland’s export value by £90 billion.

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