Investing in an Oil Fund
The call for investment in an Oil Fund is in itself A Good Idea, spreading the benefits from oil and gas exploitation over a number of years - effectively creating a Trust Fund for future generations, in the way pioneered by Shetland.
But - and isn't there always a but - it doesn't come without pain, and trying to paint it as pain-free is just silly and dishonest.
An oil fund would work by ring-fencing some of the tax yield into a savings fund.
Think of it this way - you put some of your pay into a deposit account for your children and grand-children.
Of course, this means that you have less money to spend today, which is fine if your income exceeds your expenditure. Of sustainable if you put money away when times were good.
To continue the analogy, at present your income is less than your expenditure and there are also sudden unexpected call on your savings - house repairs, the car needing replacing, a daughter's wedding - and you have been funding your lifestyle on the credit cards.
So would the SNP accept a cut in the money from Westminster if an Oil Fund was set-up; no, it actually wants an increase in public spending - effectively trying to get an increased overdraft to pay for day-to-day expenses because the credit card are maxed out.
Show us how good an idea it is, and set up a Scottish Oil Fund out of the current budgets - or be seen to be doing nothing more than posturing.
But - and isn't there always a but - it doesn't come without pain, and trying to paint it as pain-free is just silly and dishonest.
An oil fund would work by ring-fencing some of the tax yield into a savings fund.
Think of it this way - you put some of your pay into a deposit account for your children and grand-children.
Of course, this means that you have less money to spend today, which is fine if your income exceeds your expenditure. Of sustainable if you put money away when times were good.
To continue the analogy, at present your income is less than your expenditure and there are also sudden unexpected call on your savings - house repairs, the car needing replacing, a daughter's wedding - and you have been funding your lifestyle on the credit cards.
So would the SNP accept a cut in the money from Westminster if an Oil Fund was set-up; no, it actually wants an increase in public spending - effectively trying to get an increased overdraft to pay for day-to-day expenses because the credit card are maxed out.
Show us how good an idea it is, and set up a Scottish Oil Fund out of the current budgets - or be seen to be doing nothing more than posturing.
3 comments:
I'm curious.
What 'pain' did Shetland suffer?
"Of course, this means that you have less money to spend today"
Well yes, if you accept that the money you earn is ALL spend on things you choose.
I don't recall voting for an illegal war or indeed a new trident system. Did you?
"To continue the analogy,"
At present your income is more than your expenditure and there are sudden unexpected call on your savings - house repairs, the car needing replacing, a daughter's wedding - but unfortunately your other half has been been funding their secret lavish lifestyle on credit cards.
Yes, it's a difficult situation.
Do you confront your partner over their expenditure and highlight that it has impacted on the level of debt burden likely to be carried by your children...... knowing full well that honest confrontation may well lead to a divorce.
Or do you keep quiet and 'do whatever it takes' to get by on a wing and a prayer., knowing deep down inside that you sold your children down the river f on the back of your complicit deceit.
To complete the scenario, a lothario figure appears in the guise of an eton educated dashing city exec who promises your 'prudence' that they can make everyone else pay for her mistakes.
"So would the SNP accept a cut in the money from Westminster if an Oil Fund was set-up"
Your question is all over the place.
Let's start at the beginning.
Will Westminster transfer income from the Scottish Oil Fields to Holyrood?
Only then can anyone decide what to do with that income.
"Show us how good an idea it is, and set up a Scottish Oil Fund out of the current budgets - or be seen to be doing nothing more than posturing."
ha ha ha ha ha
Your a bit lost aren't you.
Another refreshingly honest piece, Angus.
The SNP will not get an increase in public spending, whether they know that or not is another question. Probably they do, deep down inside.
What would be a good ploy is to negotiate for an Oil Trust as a trade off for less public money...since they (the SNP) should know they are going to get less public money anyway they will at least get something out of a bad situation.
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