Willie Rennie on Newsnight Scotland: You have to be cautious when you predict oil revenues

There’s been a bit of a stooshie over future North Sea oil revenues in the last week or so. First, as the BBC tells us, a leaked draft of a Scottish Government report said that volatility in projecting revenues created uncertainty and could lead to spending cuts. Now, Alex Salmond tells us that it’ll all be fine and there’ll be a great big oil boom just as Scotland becomes independent. The SNP projections for the first year of independence are pretty much double what the OBR predicts.

Scottish Liberal Democrat leader Willie Rennie went on Newsnight Scotland on Monday night to talk about how the SNP were all at sea over this. He said:

What is quite remarkable is that last week John Swinney says there was a high degree of uncertainty because of the volatility of the price of oil. Now Alex Salmond says there’s little doubt there was going to be an oil boom.

How can you go from uncertainty to little doubt in the space of a week? Oil revenues are uncertain and unpredictable and that’s why it’s right to be cautious.

The oil revenues we receive pay for hospitals, schools, universities. If you took the lowest and highest figures in recent years, there’s a difference of £11 billion. That’s the entire health budget in Scotland.

If you look at Norway, often cited by the SNP as a great example to follow, they take a very cautious approach to this.

You can watch his whole interview here.

* Caron Lindsay is Editor of Liberal Democrat Voice and blogs at Caron's Musings

Read more by or more about , , , , , or .
This entry was posted in News.
Bookmark the web address for this page or use the short url http://ldv.org.uk/33657 for Twitter and emails.
Advert

2 Comments

  • This debate of course links to the concept of a ‘natural Resources trap’. As Summarised in the EI Sourcebook (on Good-fit practice activities in the international oil, gas and mining industries) it is

    the paradox that exists in natural resource rich economies. It is well documented that the discovery of natural resources significantly reduces growth

    http://www.eisourcebook.org/561_CollierTheNaturalResourceTrap.html

  • Robin Bennett 14th Mar '13 - 12:22pm

    Willie ‘s responses on issues relevant to the referendum are becoming too two-dimensional. He could, while advancing the case for caution, have acknowledged that other forecasts are more optimistic than the OBR (as indicated by Professor Kemp, whose interview followed), and that, in the end, voters will be entitled to take a view.

Post a Comment

Lib Dem Voice welcomes comments from everyone but we ask you to be polite, to be on topic and to be who you say you are. You can read our comments policy in full here. Please respect it and all readers of the site.

If you are a member of the party, you can have the Lib Dem Logo appear next to your comments to show this. You must be registered for our forum and can then login on this public site with the same username and password.

Your email is never published. Required fields are marked *

*
*
Please complete the name of this site, Liberal Democrat ...?

Advert



Recent Comments

  • User AvatarATF 28th May - 10:49am
    @JohnTilley For comparison, on the TV news Nick was third - the broadcast I saw didn't include the SNP or DUP. Not saying this is...
  • User AvatarCaron Lindsay 28th May - 10:48am
    Craig, I'm not sure we have condoned what Alistair did. Certainly I'd say the Scottish Exec weren't entirely chuffed with his actions. However, we felt...
  • User AvatarJames Moore 28th May - 10:42am
    Disgraceful.
  • User AvatarCraig 28th May - 10:40am
    As a new member one of the things that has impressed me is how the party have stood by one of their own. While still...
  • User AvatarAdrian 28th May - 10:28am
    @James Hardy Fair enough. If you can point me to some reading material on what alternatives the Liberal Democrats propose I would appreciate it.
  • User AvatarSimon Horner 28th May - 10:28am
    I think the last time a single party got more than 50% of the vote was in 1900 when the Tories won. The Liberal and...
Thu 28th May 2015
Fri 29th May 2015
19:30
Sat 30th May 2015
Sun 31st May 2015
Mon 1st Jun 2015
Tue 2nd Jun 2015
Wed 3rd Jun 2015
Thu 4th Jun 2015
Fri 5th Jun 2015
Sat 6th Jun 2015
Mon 8th Jun 2015
19:30
Tue 9th Jun 2015
Wed 10th Jun 2015
Thu 11th Jun 2015
Fri 12th Jun 2015
Sat 13th Jun 2015
Wed 17th Jun 2015
Thu 18th Jun 2015
Sat 20th Jun 2015
Sun 21st Jun 2015
Thu 25th Jun 2015