Demands for the Scottish executive to have direct control over North Sea oil and gas revenues have been rejected by the cabinet in London. David Cairns, the Scotland Office minister, told an oil industry conference in Aberdeen yesterday that the government "unequivocally" opposed proposals from the Scottish nationalist administration for control over oil and gas to be devolved to Edinburgh.Mr Cairns said shifting responsibility to Edinburgh would "introduce needless uncertainty into an £11bn industry which supports half a million jobs". This was "not an option for the UK government".
But Mr Cairns was criticised by Alex Salmond, the first minister and SNP leader, and Nicol Stephen, the Scottish Liberal Democrat leader, who is working closely with Labour's new leader in Scotland, Wendy Alexander, on building a pro-union alliance to outflank the SNP executive.
The Lib Dems have been buoyed by Ms Alexander's public support for increasing the financial powers of the Scottish parliament.But Mr Stephen said Mr Cairns's remarks had in effect killed off Lib Dem hopes that their more modest plan for a greater Scottish share of oil and gas revenues, which are in long-term decline and fell in June by 13%, could become part of the pro-union alliance's agenda.
He accused the minister of creating an undignified brawl with Mr Salmond and discouraging public debate.
"Making the Scottish government responsible for raising much of the money which it spends is an important part in making it more accountable to the public," he said.
Mr Salmond told a breakfast meeting at the conference yesterday that the minister was guilty of "knee-jerk negativity".
Via: The Guardian
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