The future of North Sea oil and gas continued to dominate the independence battle yesterday as politicians clashed over plans for a wealth fund.
Scottish Secretary Alistair Carmichael warned that an independent Scotland would have no hope of emulating Norway’s £500billion oil fund, claiming the SNP was trying to “fool” people into thinking it could do so.
The SNP responded, saying UK ministers were the ones trying to dupe Scots into thinking that the nation was the only place in the world where oil was a “burden and not a bonus”.
The war of words over North Sea resources erupted at the weekend as the UK and Scottish Cabinets both prepared to hold meetings in the Aberdeen area. First Minister Alex Salmond revealed plans to base an energy ministry in Europe’s oil capital after a “Yes” vote, and then attacked Westminster’s “thieves” for squandering the vast revenues.
Prime Minister David Cameron said while he was in Aberdeen the UK’s “broad shoulders” were required to manage the volatile asset, and he rubber-stamped plans to try to recover a further £200billion from under the seabed.
The focus shifted yesterday to SNP plans for an oil fund after independence. Mr Carmichael said: “An independent Scotland would only be able to emulate Norway in one way – by not using the UK pound. When it comes to an oil fund, we have heard a great deal of hot air in recent days about how Scotland has nothing to show for the oil revenues over the years, conveniently ignoring the investment and higher spending per head it has helped fund in Scotland.
“If an independent Scotland wants an oil fund, the first minister has to tell us whether he will cut public services by 8% or hike income and other taxes by 11%. There is no way around this – pretending otherwise is an attempt to fool the Scottish people.”
A spokesman for Scottish Energy Minister Fergus Ewing said: “Alistair Carmichael is teaming up with David Cameron to fool people into believing Scotland is the only country on Earth for which oil is a burden and not a terrific bonus. That is a ridiculous claim. Mr Carmichael is part of the Westminster establishment which has squandered Scotland’s oil wealth.”
Speaking at a chamber of commerce breakfast yesterday, tax expert Colin Pearson, of professional services firm EY, said both campaigns needed to produce a business plan for the sector. “There’s a credibility gap around the commitments that are being made and people are wondering, with all these spending pledges, where is that going to get paid for?” he said.
Warning on North Sea investment levels, Pages 30 and 31