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First minister quizzed on oil revenues fall

First minister quizzed on oil revenues fall

Alex Salmond has come under pressure to explain how an independent Scotland would cope with a fall in oil revenues.

Labour, Conservative and Liberal Democrat leaders repeatedly asked if he would cut services or raise taxes during first minister’s questions yesterday.

Despite the barrage, Mr Salmond refused to answer directly, preferring to concentrate on what he saw as Scotland’s economic strengths.

Official figures showed Scotland’s geographical share of oil and gas taxes fell by more than 40% last year, pushing the country further into the red.

Scottish Labour leader Johann Lamont said the £4.5billion drop in North Sea revenues was equal to the education budget, while the £12billion deficit equalled all health spending.

“If Scotland were independent, how would the first minister cope with this revenue drop? By cutting services or raising taxes?” she asked.

Mr Salmond insisted the electorate should focus on the figures over the longer term, rather than a single year’s fall.

“Johann Lamont knows that over the last five years or indeed over the last 30 years, then the answer is that Scotland has been in the stronger fiscal position relative to the UK,” he said.

“Our case for independence is that by marshalling the great natural and the great human resources of Scotland then we can build a fair and just society in this country.”

Lib Dem leader Willie Rennie accused Mr Salmond of arguing in January that the economic figures for the past five years should be ignored – and now claiming they are the only ones that count.

“Last year the SNP paraded numbers for a single isolated year, today the first minister says that only an idiot would do such a thing,” he said.

“He used to say ‘look at the facts’. Now all that he has are excuses.”