Alex Salmond’s £32 Billion in Oil Revenue: Citation needed
In his Scottish National Party leader’s speech at the annual conference in Aviemore, Alex Salmond stated that the Treasury receives £32bn a year revenue from North Sea oil revenues based on a price of $86 per barrel.
He contrasted Westminster’s financial “squeeze” with the £32 billion a year the Treasury receives from North Sea oil revenues now oil prices are around $86 a barrel. (Scotsman)
Bearing in mind that the official forecast for the current year is less than a third of that figure at £10.4bn - and that even that figure is double the £5.2bn figure for 2004-5 - can anyone provide me with a detailed citation and calculations for Mr Salmond’s £32 billion number?
Tags: alex salmond, oil revenue forecast, 32 billion[tags]alex salmond, oil revenue forecast, 32 billion[/tags]
Categories: News - Current Affairs, Politics, Scotland
Scotland’s very own ‘Artful Dodger’ is at it again. A big fish in a small pond is Mr Salmond who has perfected the art of attacking on issues that while big news north of the border mean not a lot down south. With many bigger fish to fry (that came out unintentionally) the Labour Govt. in London cannot be bothered with Shrek and his pronouncements. The trouble is the squeeze on Scottish Labour is coming from both north and south of the Border.
A reader has commented on the UK Edition of the WW that this is probably the Scotsman wrongly reporting Alex Salmonds speech.
I am checking then will update the article as appropriate.
See here.
Speaking on the BBC Im pretty sure Salmond said 10 billion. On Newsnight last Friday I believe.
North Sea Oil production is currently provides 1.5% of UK GDP and less than 2% of taxes. Current Oil production has fallen by a third in the last five years and currently stands at nearer £20 Billion.
Scotland - population 5 million/ GDP $130 billion
Wales - population 3 million/ GDP $48 billion
England - population 50 million/ GDP $1.7 trillion
Northern Ireland - population 1.7 million/ GDP $33 billion
As for Treasury Revenue from Oil it is estimated at £8.1 Billion for 2008, and is declining year on year. Oil is becoming far more difficult to extract, decommisioning costs are substantial and within a generation cars could be running on alternative fuel sources you can see the beginings today.
A further problem is that although oil is taxed at source this does not make up for all oil revenue, with a substantial percentage being taxes at the pumps in the country of consumption rather than the country of origin. The same is true for Whisky and many other products.
As for Scotlands Spending, it is currently £47.7 Billion compared to £36.3 Billion provided in Scottish Taxes and £8.1 Billion in North Sea Oil Revenue. Add to this the fact Scottish spending does not include UK wide provision such as Defence Spending and you start to get a realistic picture of the real problems an Independent Scotland would face.
Btw oil prices are currently £48.50 a barrel, and Govt revenues now stand at less than £7 Billion.
I am English and to be honest don’t mind helping Scotland through economic hardship, that is what a union is all about. We need to secure extra funding for Scotland under plans for state programmes, bring forward defence orders to keep Scottish shipyards going and help Scotland as much as possible.
I would hate to think if England suddenly found oil off the South Coast it would suddenly say thats it, it’s our oil where off out of the Union, and to be fair the Scots haven’d done that, although in terms of the Union we all gain far more than we lose and this is reflected in Scottish spending, which is above revenue.