SCOTLAND'S OIL RESOURCES FUEL BUDGET
SHOULD BE MAJOR PETROL CUT FROM ALL TIME RECORD NORTH SEA REVENUES MISSED OPPORTUNITY TO REVERSE CAPITAL SPENDING CUTS
Commenting on the UK Budget statement, Scotland's Finance Minister John
Swinney said:
"What is abundantly clear is that the Chancellor has used Scotland's North
Sea resources to fuel his Budget -- oil and gas revenues have hit an all
time record level, and are £4 billion up on the previous forecast -- and
has given far too little in return.
"Given that petrol prices have gone up by 16 pence a litre over the past
year alone, this windfall could and should be used to bring duty down not
by 1p but by 5 pence UK-wide -- or if they were applied in Scotland petrol
prices could come down by 50p.
"No wonder the Con/Dem coalition oppose financial responsibility for the
Scotland, and control of our own revenues.
"The Chancellor is wrong not to use this record bonanza to deliver
significantly lower fuel prices, rather than just applying a new levy for
a cut that is far too small.
"The Budget was also a major missed opportunity for the Chancellor to
reverse his swinging cuts in capital spending -- a 36 per cent cut in
Scotland over the spending period -- because the Scottish Government's
Economic Recovery Plan demonstrates that our investment in key
infrastructure projects is the driver of growth.
"While the Chancellor has had to downgrade his growth forecasts, in
Scotland we are building growth -- we are the only nation in the UK with
falling unemployment and rising employment. This Budget -- fuelled by
Scottish oil -- is a powerful illustration of why Scotland needs full
economic and financial responsibility, including borrowing powers, which
will be a major issue in the election campaign.
"We anticipated the Chancellor's announcement on Enterprise Zones, and
have already discussed the issue in government. If re-elected in May, the
SNP will establish four Enterprise Zones in Scotland -- we believe that the
geography and distinct circumstances of Scotland require us to have a
larger pro-rata number than England -- in addition to other innovative
measures we are delivering such as Tax Incremental Finance.
"We are already delivering major programmes to help small businesses and
first time buyers, and a record number of apprenticeships, and will at
least match the UK Government's announcements in these areas.
"We listened extremely carefully to the Chancellor's remarks about the
possibility of a lower Corporation Tax regime in Northern Ireland. We
agree with the Scottish Parliament's Scotland Bill Committee report that
if this happens in Northern Ireland, it should happen in Scotland too --
and financial responsibility is the guaranteed way to make this happen.
"It is extremely disappointing that the Chancellor failed to show any
determination to drive forward measures to tackle high strength, low
quality alcohol products -- confirming that the proper place for these
powers is the Scottish Parliament, and that we need to reintroduce minimum
pricing proposals in the next parliament.
"Also, the Chancellor was silent on Scotland's Fossil Fuel Levy -- we need
progress on this now, so that we can invest in infrastructure to support
the renewables technology of the future. The Green Investment Bank is a
separate issue, and if it is to be up and running in 2012 then the logical
home for it is Scotland -- a global renewables capital, with 10 times the
output of England on a pro-rata basis."
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xxx