Oil revenues key to north road and rail investment
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HERE are two plain unvarnished truths about the Scottish economy. It’s in much better financial condition than the UK.
In each of the last 30 years the amount of tax generated per person in Scotland has been greater than in the rest of the UK. That’s why in my opinion Westminster’s mismanagement of the UK economy is a clear example of why we need independence.
Will you hear this explained in the national press and TV? Unlikely, as their editorial policies are often aimed at confusing you and shifting the story on to personalities rather than facts.
That’s why the poll in September 2014 deserves to be understood by all Scots who will have a chance to take part in this historic vote.
I’ll try to provide that information from time to time. What is my source? It is Scotland’s balance sheet and was produced from public statistics available to all. It was issued last week by the Scottish Government to interrupt the stream of misleading Westminster-inspired bulletins to make Scots feel bad about Scotland’s future.
When I meet constituents across these vast three counties, I’m asked where to get facts to show how we and our children will fare if we vote yes in 2014. I believe that more folks will have confidence as they see we more than pull our weight in the world.
Here is one really welcome headline from an unusual source – the Financial Times last Saturday. It reads “Investment Bonanza for North Sea Oil” and documents how output is set to rise by 470 million barrels in 2013 thanks to a boost from new fields after decade of decline.
The FT correspondent Guy Chazan also wrote about the unhelpful legacy of the Thatcher era with no sovereign wealth fund having been set up in the UK from the vast oil revenues in the 1980s. Instead it paid for high unemployment resulting from slash-and-burn Tory policies.
Oil economist Alex Kemp, of Aberdeen University, was also quoted as saying: “Norway has hoarded much of its oil wealth in the world’s biggest sovereign wealth fund, worth more than $700 billion today.”
NOW here are a few words about transport to and from the far north. People here rightly want to get to and from and round our area as easily as possible. What are constant are the moans that nothing seems to change.
Despite this, our air services to Wick show a recent upswing in industry-related arrivals. Oil, renewables and Dounreay all play their part.
Can we get more services? Can another airline be tempted to serve us? It’s down to numbers of passengers that need to fly. Probably our best hope of more or cheaper flights will require more energy developments to provide the backbone of regular passengers.
Air flights from abroad to Scotland are taxed through air passenger duty that the recent UK budget jacked up again. Tourism plays a part but far more visitors drive here or take the train with their bikes if they can book them on.
The far north line and the Kyle line needs maintenance and investment. Successive track managers from British Rail, through Railtrack to Network Rail have done the minimum to keep them open. I hear rail passenger numbers on Scotrail are up, but the commuters around Inverness are far more numerous than the end-to-enders I suspect.
Back in the 1980s, the 45-minute shortcut across the Dornoch Firth was vetoed by the Thatcher Government. We would have a very different prospect for rail users to Caithness and north Sutherland today had the link been made.
But today capital investment has been slashed by Westminster while the Scottish Executive until 2007 made big rail openings a play north of Carstairs and south of Stirling.
Small improvements on the Highland mainline help but higher speeds and better services to the far north are needed. Eleven services south from Inverness each weekday is a help. But we need a new signalling system, better rolling stock and speedier times. I have not given up that task.
Dr Beeching’s axe was avoided in the Highlands by the successful MacPuff campaign. That spirit is needed today.
Our A9 journeys to Inverness have been lengthened by Kessock Bridge repairs. The Cromarty Bridge, then the Dornoch road bridge will be repaired next. So rail commuting has become more popular. Certainly from Tain to Inverness, growing numbers of commuters are getting the rail message.
I hope to have good news on the Berriedale Braes plans very soon. It takes very hard work in cash-strapped times to get just £3 million to do the job once the final plans are in place.
Drivers with full cars would cut numbers and supermarket lorries should go by rail too. But the oil boom is arriving from the North Sea, so revenues should be applied in Scotland.
We need that Scottish oil fund invested for future generations and use the interest to build projects like faster rail and safer roads. Electric cars and hydrogen-powered cars will increase soon as charging points are built. We want to be mobile but the planet must not be made to pay the price.
Caithness has much to contribute to the wider economy, so we should be asking for a bigger share of the offshore revenues and get our hands on the Crown Estate Commission which is waiting with bated breath for the offshore wind farm revenues.
Let’s make sure they don’t disappear into the Treasury like the oil revenues did up until now.
rob.gibson.msp@scottish.parliament.uk
