Economic ignorance

Published on Tuesday 30 September 2008 21:32

Andy Kerr's remarks that sovereign wealth funds have less buying power as a result of the credit crunch (Burning Issue, 29 September) shows his blatant ignorance of world economics.

As a former finance minister of an oil-producing nation, Mr Kerr should know better than most the huge benefits oil has brought to the countries blessed with black gold in their territories.

To quote the McCrone report, hidden by senior Scottish Labour Party figures, oil has made several countries "rich beyond their wildest dreams". That is, all oil-producing countries except Scotland.

If Mr Kerr and his colleagues were not so eager to hide Scotland's oil wealth and to tell Scots that an independent nation would be bound for failure, he might realise that it should be a Scottish oil fund investing in infrastructure rather than offering opportunities to other oil funds.

Instead of continuing to champion the Private Finance Initiative, therefore encouraging a further debt splurge (at a time of exorbitant credit costs), Mr Kerr would be advised to consider working with the First Minister to encourage a wide and diverse range of investors to Scotland.

CALUM MACKENZIE

Littlejohn Avenue

Edinburgh