15 August 2008
A leading think-tank in Scotland has called on the Scottish Government to provide more information on how its plans for an oil fund will boost the economy.
The Scottish National Party wants to invest North Sea oil revenues in a fund to pay for public services if the oil runs out. The Centre for Public Policy for Regions said ministers had not satisfactorily explained how they intended to finance it.
The CPPR, which is run by Glasgow and Strathclyde universities, said future public spending predicated on Scotland's North Sea tax revenues would require very careful planning.
According to the report, the UK's tax revenue from oil and gas is forecast to reach £9.9bn in 2008/09. It added: 'Applying its entire geographical share of North Sea tax revenues in recent years would greatly reduce Scotland's overall fiscal deficit – but it does not eliminate it.
'Although the North Sea as a source of tax revenues is growing in importance, it is incumbent on those seeking to utilise them more directly to explain what their contribution in the future is likely to be.'
A Scottish Government spokesman said its plans would finance a spending programme to counter deflation and invest in an oil fund for future generations.
PFaug2008
