5 June 2009
Commenting on the publication of evidence from the Independent Expert Group to the Commission on Scottish Devolution and the Natural Resource Taxation paper released today, the Secretary of State for Scotland Jim Murphy said:
"This authoritative analysis highlights the danger of exposing Scotland¿s public services to "the inherent volatility of oil and gas taxation revenues" particularly as these "will also diminish over time given the finite nature of the resource".
"Our industry is world-class but there is not an endless supply of oil and we have to plan for a future without it.
"A Scottish oil fund has long been held up as a solution to all of Scotland's economic issues. This paper gives the lie to that proposal and shows that is not a viable choice for Scotland, however devoutly those in some quarters might wish it to be true. I hope they will reconsider their position in the light of the hard facts presented today.
"I am the last person who wants to see Scotland's ambitions limited. Saying no to an oil fund is not talking Scotland down - it is making a sensible choice based on evidence and the strength of being in the union. The gap between reality and theory on this issue is huge. As a patriotic Scot I cannot agree with any point of view which could put Scotland's economic future at risk.
"The simple truth is that you can only spend oil revenues once. You can¿t spend them to offset an expenditure black hole while investing in an oil fund at the same time. The Scottish Government appears to be the only one in the world that believes it is possible to save and spend the same money simultaneously. Any family in Scotland could tell you that is simply not the case.
"Instead, the paper makes a compelling case for the stability and security of Scotland remaining in the UK. It also underlines the fact it is a bad idea to expose Scotland's economy to the slings and arrows of a volatile and declining commodity."