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Separate Scottish oil tax rejected
 A UK government commission looking at devolution and financial accountability in Scotland including whether some of the North Sea oil and gas revenues should be spent by the Scottish Parliament is thought to have rejected the idea because oil prices have varied too much for financial planning.
The Calman Commission chaired by Sir Kenneth Calman which is due to report later this month, has been examining whether or not Scottish Ministers should be allowed to borrow money independently of the House of Commons in Westminster, London.
Also the Commission has also been facing a key second question: “Natural Resources and Scottish Devolution” which is about devolving a share of North Sea oil and gas revenue to the Scottish Parliament at Holyrood.
An expert group headed by an expert - Professor Anton Muscatelli at Edinburgh's Heriot Watt University - which is advising the commission has concluded that because oil prices are so volatile, financial planning problems would be too “acute” for the Scottish Parliament and so it has rejected even partial control of North Sea taxes being given to Scotland, the Times newspaper reports today
The Commission is due to publish its final report on 15 June.
Sir Kenneth Calman has said: “Invitations to the event are now going out, and we very much look forward to presenting a package of recommendations that we believe will strengthen Scottish devolution within the Union, improve the financial accountability of the Scottish Parliament, provide a better framework for intergovernmental relations and strengthen the Parliament as an institution.
A paper prepared by an expert financial group for the Commission and seen by Offshore247.com concludes: “Devolving rather than assigning oil and gas taxation policies to the Scottish parliament would add complexity as separate taxation regimes applying in Scottish and the rest of the UK's water would produce transitional and other problems.”
It goes on: “While these would be justified for an independent Scotland the cost may be unduly high for a devolved government situation. Only if there is substantial difference in taxation policies between the two Governments would this be appropriate.”
And the report's conclusions continue, saying: “The assignment of a Scottish share of these revenues would have major implications for the funding of the Scottish budget. It would expose the Scottish Parliament to significant revenue variations, given the inherent volatility of oil and gas taxation revenues. Oil and gas taxation revenues from the UKCS will also diminish over time given the finite nature of the resource.”
Furthermore the report suggests the possibility of establishing an oil fund – similar to that in Norway – which could be used to maintain the nation's capital stock when oil prices are high.
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Shell to pay out over Nigeria caseOil giant Royal Dutch Shell PLC is to pay out £9.7m ($15.5m) to settle a lawsuit over its alleged complicity in the 1995 execution of several Nigerian environmental activists, the UK Press Association and British media reported.
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