Key Takeaways
- • Scottish Government admits Energy Secretary Stephen Gethins cannot deliver his pledge to establish an oil and gas wealth fund, because offshore oil and gas taxation is reserved to the UK Government.
- • Gethins announced at Holyrood on May 28 that a "future generations" fund for the oil and gas sector would be set up during the parliamentary session, with a target of 2031 reported by The Scottish Sun.
- • A Scottish Government spokeswoman said the fund "will be established if powers over offshore oil and gas taxation... are devolved to Scotland," while insisting Gethins "did not mis-speak."
- • Conservative and Reform UK politicians accused the SNP of economic incompetence and of making promises it lacks the powers to deliver.
- • The dispute follows the UK Government's approval of the Jackdaw gas field and Chancellor John Healey's plan for an Energy Wealth Fund, which SNP First Minister John Swinney wants ring-fenced for north-east Scotland.
Summary
The Scottish Government has acknowledged that Energy Secretary Stephen Gethins cannot fulfil his commitment to create an oil and gas wealth fund, according to The Scottish Sun. Gethins told MSPs at Holyrood on May 28, in his first major speech as Energy Secretary, that the government would "establish a future generations fund for the oil and gas sector" and a ScotWind Wealth Fund from offshore wind leasing during the parliamentary session. The speech was reported as targeting a fund by 2031. He made no reference to the need for the UK Government to devolve powers before the fund could be created.
When The Scottish Sun questioned the government on Sunday, a spokeswoman maintained that Gethins "did not mis-speak" and should be taken at his word. She also acknowledged that the promise could not be met under Holyrood's current powers, stating that a fund would be established only if powers over offshore oil and gas taxation, which are reserved to the UK Government, were devolved to Scotland.
The admission came after an SNP call this week for the UK Government to ring-fence a similar fund for north-east Scotland. Last week, following UK Government approval of the Jackdaw gas field, Chancellor John Healey said he would create an Energy Wealth Fund to "reinvest oil and gas revenues into the climate transition." First Minister John Swinney, whose party has long advocated a sovereign wealth fund drawn from North Sea revenues, said the fund should be ring-fenced for north-east Scotland.
Opposition parties seized on the issue. Conservative shadow Energy Secretary Andrew Bowie called it "SNP economic incompetence in its purest form," and said Gethins needed to explain himself. A Reform UK spokesman said Gethins "does not understand his own powers" and should apologise. Gethins, a former MP, was elected MSP for Dundee City East in May.
When The Scottish Sun questioned the government on Sunday, a spokeswoman maintained that Gethins "did not mis-speak" and should be taken at his word. She also acknowledged that the promise could not be met under Holyrood's current powers, stating that a fund would be established only if powers over offshore oil and gas taxation, which are reserved to the UK Government, were devolved to Scotland.
The admission came after an SNP call this week for the UK Government to ring-fence a similar fund for north-east Scotland. Last week, following UK Government approval of the Jackdaw gas field, Chancellor John Healey said he would create an Energy Wealth Fund to "reinvest oil and gas revenues into the climate transition." First Minister John Swinney, whose party has long advocated a sovereign wealth fund drawn from North Sea revenues, said the fund should be ring-fenced for north-east Scotland.
Opposition parties seized on the issue. Conservative shadow Energy Secretary Andrew Bowie called it "SNP economic incompetence in its purest form," and said Gethins needed to explain himself. A Reform UK spokesman said Gethins "does not understand his own powers" and should apologise. Gethins, a former MP, was elected MSP for Dundee City East in May.
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