Scottish Labour today pointed out the ‘financial incompetence’ of the SNP’s plans to create an oil fund today.

The Scottish Government is publishing a discussion paper on creating an oil fund for Scotland despite none of the figures stacking up.

"An oil fund works on the basis of investing money after all public spending is paid. But even on the most generous assessment, there have only been 9 years in the last 27 when Scotland's finances were in surplus - and none since 1988.

"If Scotland had started an oil fund when Norway did, the total value of the fund today would be £0.

"That is because successive governments have spent more money on Scottish public services like schools, the NHS and transport than have been taken in oil taxes.

"It is sad that Mr Swinney has to use inaccurate information to justify spending taxpayers' money on another consultation that is utterly meaningless.

"North Sea oil production has been steadily decreasing for the last five years. The reality is that oil is a commodity finite in supply and volatile in price.

"To pay money into an oil fund now, John Swinney would actually have to voluntarily cut money from public services. In the teeth of recession, that is pretty desperate stuff."

30/07/2009