Calman accuses SNP of 'misrepresentation'

Published on Wednesday 29 July 2009 21:58

SIR Kenneth Calman, whose commission recently issued its findings on the future of Scottish devolution, has accused SNP ministers of "fundamentally misrepresenting" it over claims it supported North Sea oil revenues being given to Scotland.

In a letter to finance secretary John Swinney, seen by The Scotsman, Sir Kenneth claims the Nationalist administration has "skewed" the conclusions of his commission on the matter.

"To do so is at best mistaken and at worst intentionally misleading," he writes.

Sir Kenneth's protest comes after Mr Swinney issued a press statement at the weekend in which he used the Calman Commission to bolster his case for oil tax to be diverted to Holyrood.

Mr Swinney declared that the commission had "recognised that Scotland is entitled to a fair share of our oil revenues".

The commission was set up by the three main unionist parties to review the powers of the Scottish Parliament.

The commission's report, presented earlier this summer, opposed devolution of oil revenues on the grounds that the fluctuating oil price would expose Scotland's budget to volatility.

In the letter to Mr Swinney, Sir Kenneth states: "The claim that the commission on Scottish devolution backs the creation of a Scottish oil fund or the devolution of North Sea revenues fundamentally misrepresents our position.

"We have been clear on this throughout and it is disappointing to have the commission's findings skewed in this way."

The SNP last night defended its interpretation of the commission's findings, which were based on a report on the Calman Commission by the economist Professor Anton Muscatelli, which concluded it was technically possible to assign a share of gas and oil to Scotland.

Nationalist ministers seized on this finding to declare that a "dam had been breached", with the principle of North Sea oil devolution finally "recognised".

However, Sir Kenneth appears to believe that SNP ministers have used that "recognition" to suggest that the commission supported an oil fund and oil tax being devolved.

In his letter to Mr Swinney, Sir Kenneth adds: "Our report also concluded that in most years Scotland's tax revenues had not contributed more to the UK than it received as a share of public spending, even including a geographic share of oil taxation." The letter concludes: "It is therefore wrong to suggest our conclusions represent unqualified support for the devolution of oil revenues or the creation of a Scottish oil fund."

The row comes as Mr Swinney presses the case today for a Scottish oil fund to be created.

Under the SNP's plans, oil revenues would no longer go straight to the Exchequer but would instead be invested in a fund for the long-term.

Last night, a Scottish Government spokesman said: "The Calman Commission's own expert group recognised oil and gas taxation from Scottish waters could be devolved to the Scottish Government. The expert group supported the principle of establishing an oil fund."