Scotland’s First Minister has admitted two-thirds of future oil revenues would not make it into the country’s coffers.
Alex Salmond came under fire for claiming the oil left in the North Sea is worth “£300,000 a head for every man, woman and child in Scotland in terms of the wholesale value”.
When questioned by The Courier on the issue, Mr Salmond said that, over the next 50 years, “we could see about 24 billion barrels of oil and gas recovered from the waters around Scotland, worth in the region of £1.5 trillion.”
He added: “Some of that goes in terms of the cost of exploration and development, some goes in terms of company profits, some goes in terms of revenues.
“Around a third comes to the Government in terms of revenues after the cost of exploration and production, etc.”
However, he insisted Scotland’s economy doesn’t rely on oil and gas, adding: “It’s not the basis of our economy it’s a bonus.”
Alistair Darling, chairman of the Better Together campaign group, called for the £300,000-a-head claim to be withdrawn.
He said: “Scots know that if something sounds too good to be true, it isn’t true. For Alex Salmond to treat us like fools by deliberately confusing the wholesale value of oil with the amount we would actually raise through tax is fundamentally dishonest.”
Mr Salmond also claimed a “giant hole” has been punctured in the UK independent forecaster’s reputation over oil revenue predictions after it emerged the Office for Budget Responsibility (OBR) based its most recent predictions on figures from Westminster’s Department of Energy and Climate Change (DECC).
He added: “The OBR should not be taking DECC figures because that removes the argument that they are somehow independent from Government.”
A UK Government insider told The Courier the OBR, whose revenue figures have consistently been lower than the Scottish Government’s, was free to choose whatever sources it liked.
The comments came as Mr Salmond visited Montrose Harbour to launch a paper which said the Scottish Government has no plans to increase taxes on the oil industry and committed to formal consultation before any changes are made to the fiscal regime.
An expert commission, chaired by leading industry figure Melfort Campbell, will be appointed next month to consider options for the implementation of the paper’s key principles.
Aberdeen University oil economist Professor Alex Kemp welcomed the paper and described UK Government predictions for remaining oil production as “very low”.
He added: “The Scottish Government’s commitment to formal consultation with the industry in advance of any reforms will provide the reassurance and predictability that the sector requires.”