Cashing in on oil fund
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THE strong performance of Norway’s oil fund shows the scale of the opportunity which was missed as a result of successive UK governments determined to squander North Sea oil resources.
Had the UK followed Norway’s example in establishing an oil fund to manage North Sea oil and gas income, the UK would be far better placed to grow its way out of recession by funding capital investments.
Norway’s Government Pension Fund Global began in 1996 with an initial investment of around $300 million but reports in the Financial Times place its value at $600bn. It now owns one per cent of all equities across the globe.
Originally expected to last around 30 years, experts now believe the fund could last a century or more.
In 2010, Nobel Prize-winning economist and former chief economist of the World Bank Joseph Stiglitz stated it was “imperative” an oil fund be established after the UK had “squandered” North Sea oil resources.
I agree with my colleagues the speed and the scale with which Norway’s oil fund has grown shows just how big an opportunity successive UK governments have let slip through their fingers. Had the oil and gas resources off our coasts been invested wisely, we would be far better placed to grow our way out of recession by funding capital investments.
Investing in capital projects is perhaps the single most effective thing that could be done to get the economy growing again, which is why SNP calls for the Treasury to invest in shovel-ready projects have been backed so widely by communities and businesses alike.
While the Treasury may have denied itself the resource of an oil fund to fall back on, it is still imperative George Osborne ends his stubborn obstruction and invests in infrastructure before the damage he is doing becomes irreparable. The Treasury may have failed in its responsibility to establish an oil fund but it would be utter negligence if it now failed to invest in shovel-ready projects.
Of course the growth of the Norwegian oil fund over a relatively short space of time shows it is not too late for Scotland to get started with its own oil fund but to do that we will need the normal powers of an independent country.
THE recently published report by watchdog Consumer Focus Scotland – “Effective parcel delivery in the online era – what consumers in Scotland need” – argues that thousands of people are being penalised by poor parcel delivery services.
Because of the inconvenient opening hours at local delivery offices, nearly one in three people have difficulties in obtaining parcels and over one in 10 do not have access to collection points.
The SNP believes rural and island areas are the worst affected, with many customers enduring high surcharges and refusals to deliver by operators.
We note the report recommends a revamping of the delivery service to offer universal provisions and protection against unfair surcharges by offering the choice of delivery to Royal Mail’s standard and a wider choice of convenient and interactive collection points. I can well understand that delivery problems were estimated to cost retailers £1.1 billion in the last quarter of 2011 and consider that Consumer Focus Scotland’s recommendations, if implemented, would help improve services and reduce this costly burden for us and many others across the country.
I HAVE given my support to a motion in our parliament highlighting a letter by the chair of the Scottish Youth Parliament, Grant Costello, and the president of NUS Scotland, Robin Parker, calling for the voting age to be lowered to 16 for the Scottish independence referendum and all subsequent elections.
I believe 16 and 17-year-olds should have the right to vote in all elections.
We are urging the UK Parliament to pass a section 30 order that would enfranchise those aged 16 and 17 for the independence referendum.
We also call on the UK Government to take immediate steps toward lowering the voting age for all future elections and referenda and to allow electoral registration officers sufficient time to overcome any obstacles that might occur when expanding the electoral roll that requires promptness in this process.
News this week the UK Government has not ruled out votes at 16 and 17 deserves one cheer. The principle is obvious but the power to decide these issues is once again retained at Westminster.
In 1893, New Zealand was the first country to give women the vote. It took the UK till 1918 to allow women over 30 the vote, those over 21 in 1928 and both men and women the vote at 18 in 1970.THIS week’s area committee meeting for Caithness and Sutherland is a welcome step towards much more local control of public policy.
It’s been all too easy in the past for administrators seeking savings to centralise all decisions to Inverness.
I applaud the move to make decisions locally. For one thing, it can be built into more responsive government.
The goal should be to see far fewer journeys made to Inverness by councillors and officials from the far north.Inevitably, driving is time you can’t work and taking the train is not always convenient.
The Highland Council is consulting on the need for savings. One of its first priorities needs to be less road use, that’s why video-conferencing has to be made fool proof for members and public alike in offices across our huge council area.
Rob.gibson.msp@scottish.parliament.uk
