2. (Coatbridge and Chryston)
(SNP):
To ask the Scottish Government what
Scotland’s onshore and offshore revenues were in 2017-18, and how
these compared with the previous year. (S5O-02300)
The Cabinet Secretary for Finance, Economy and Fair Work
(Derek Mackay):
According to the latest figures, overall revenue in
Scotland reached £60 billion in 2017-18—up more than £3 billion
on the previous year—and included a £1 billion increase in
offshore revenue. That growth underlines the fact that we have
a productive and growing economy, despite the United Kingdom
Government’s London-centric economic policies. With the limited
economic powers that are currently at our disposal, the actions
that we are taking to promote sustainable economic development
are helping to ensure that the key economic indicators are
moving in the right direction.
:
One important point about the GERS figures and what they
mean for an independent Scotland that should be reiterated
comes directly from the Fraser of Allander institute, which
said:
“If the very purpose of independence is to
take different choices about the type of economy and society
that we live in, then a set of accounts based upon the world
today will tell us little about the long-term finances of an
independent Scotland.”
Does the cabinet secretary agree
that, with independence, the Scottish Government could design
policies that would be tailored to Scotland and not UK
Government circumstances?
:
Of course we could. That is the essence of what the
growth commission said about how, with control of people,
productivity and participation, we could make a substantial
difference to Scotland’s economy. If we had all the levers of
control, we could make different choices about, for example, UK
Government expenditure in Scotland on defence, and not invest
in Trident nuclear missiles on the Clyde. That is one
substantial example of how we could make different choices from
those that the UK Government makes about how it spends
resources in Scotland.
We could do better if we had control
of more economic levers to grow our economy.
(North East Scotland) (Con):
Offshore revenues might be up but, last year, they were
at their second-lowest level ever, after the 2013 independence
white paper told us that an independent Scotland would be
dependent on estimated oil revenues of around £7 billion a year
by now. How does that prediction compare to the real figures of
today?
:
In fairness, nobody—no economist—predicted the
international downturn in the oil and gas sector that affected
the UK and Scotland. It has been a major contributor to the
subdued performance of the Scottish economy.
Recognising that point, is it not to
be welcomed that there are signs of growth and recovery for
jobs, income and revenues from the North Sea sector? Is it not
worthy of some reflection that North Sea revenues have
contributed £333 billion to the chancellor’s coffers? We should
continue to support the sector to ensure the growth in the
offshore industry and the onshore supply chain. Onshore
revenues have increased by a substantial £2 billion during the
past year.
(Cunninghame North)
(SNP):
I think that the cabinet secretary has already touched on
this, but can he advise members how much revenue has accrued to
the UK Treasury at current prices from the Scottish sector of
the North Sea since oil and gas were first discovered?
:
I can confirm that the figure of
£333 billion accruing to the UK Treasury that I have just given
is at today’s prices. That is a substantial contribution to the
Chancellor. Of course, should we choose to seek it, there are
as many barrels of oil and gas still to come, if we make the
right interventions in tax, exploration and innovation.
All that is part of a wider economic
strategy to grow our offshore and onshore economies.
