First minister Nicola Sturgeon this evening claimed she would move to full fiscal autonomy for Scotland as soon as possible despite her recognition that oil and gas revenues are set to fall by billions of pounds by the end of the decade.
The oil and gas industry, and its impact on the economy, proved to be the hot topic of the Scottish leaders debate held at Elphinstone Hall at Aberdeen University tonight, infront of a crowd of around 150 people.
Speaking were Ms Sturgeon, leader of the Scottish National Party, Liberal Democrat leader Willie Rennie, Conservative leader Ruth Davidson, Patrick Harvie, leader of the Scottish Greens and David Coburn, UKIP MEP.
After a question from the floor on how the parties would support the transition away from oil and gas, Ms Sturgeon said there had to be further moves towards renewables in Scotland.
She went on to say that oil revenues by 2020 – based on current barrel price – would be £3bn lower.
She added, however, that onshore revenues would be £15bn higher than by the same year.
When pressed, she said that she would vote for full fiscal economy for Scotland as soon as other parties would allow, despite the fall in oil income.
She came under fire from Labour leader Jim Murphy and Liberal Democrat leader Willie Rennie over her position.
Mr Murphy said: “After the difficult time that Aberdeen and the North East of Scotland has been through, the idea that we give up on pooling of resources and no longer have the basis of supporting from the UK…I don’t think makes sense. I think staying part of the UK does.”
He said that under a Labour mansion tax, Scotland would benefit from tens of millions of pounds in additional revenue despite just a third of 1% of the tax being generated north of the border.
Mr Murphy went on to day: “SNP say that next year they would vote for full fiscal economy.
“Her own advisers say it would leave a black hole, business leaders say it would leave a black hold and even trade unions say it would be a bad deal for Scotland.
“I would keep the Barnett formula, I would keep it today, tomorrow, forever.”
Liberal Democrat leader Willie Rennie said there would be “blind panic” in Scotland had the referendum result last September gone in favour of independence, given the falling oil price.
He said: “To have an economy largely dependent on volatile resource of the North Sea would have cost absolute chaos to pensioners, to the health service.
“Nicola Sturgeon has the nerve to continue to gun for the same policy that was trounced at last year’s election.”
Conservative leader Ruth Davidson said that Conservative coalition had supported the oil and gas industry with a £1.3bn package announced at the last budget.
She added: “During the referendum I challenged her Nicola Sturgeon on her price of $113 a barrel. She told me I was doing down Scotland and wasn’t being optimistic.
“But for me it not just about the pounds and the pence. We have a social union as well as a political debate.
“I want everyone to pay into the pot. I want pensioners in Kirkcaldy to get the same pension as someone in Cardiff.”
Ms Sturgeon rebutted her critics, saying that the Scottish economy was not dependent on oil.
She added: “There is not an oil producing country that are looking at the oil price and saying we’re not able to run our own economy.”
She pointed to Norway and it £500bn oil fund built up through revenues which had been “stewarded not squandered.”
Ms Sturgeon said her opponent saw Westminster as a “great protection” for public finances in Scotland, despite a further £12bn welfare cut in the pipeline.
She added: “This is a clear choice about taking responsibility of how we manage our own resources or leave ourselves at the mercy of continuing Westminster cuts.”
Green leader Patrick Harvie said the focus in the oil industry now had to be on skills development within the supply chain to insure that people were prepared for a future outwith the oil industry.
He said investment and incentives in further North Sea exploration would just take the industry into “deeper”difficults and could leave companies with wells they couldn’t afford to burn.
Mr Harvie added: “The next oil crisis could be the last oil crisis.”
Ms Sturgeon was also pressed further on claims that another Referendum on Scottish independence could be written into the SNP manifesto for the Holyrood elections next year.
She said she has placed a “triple lock” against Scottish independence – saying it must follow a change in public opinion, the election of a party proposing independence and another referendum.
But a further lock on another referendum appeared to slip in a short space of time after Scottish Conservative leader Ruth Davidson said she cannot envisage a scenario where Westminster would block it – just hours after UK Tory leader David Cameron said the issue “was settled”.
Ms Sturgeon said: “I am not planning or proposing another referendum. A vote for the SNP in this election is not another vote for a referendum.”
Ms Sturgeon referred again to a possible coalition with Labour in the event of a minority government following the May 7 vote.
But she warned Mr Murphy that she could force change to Labour’s policy on keeping Trident nuclear weapons.
Ms Sturgeon said: “I know that a lot of Labour MPs don’t want Trident. That would be a very good way in getting Scotland’s voice heard.”
