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    Commons to debate SNP Bill to Bring Home Oil and Gas
    Monday, 5th June, 2006

    Commons to debate SNP Bill to Bring Home Scotland's Oil and Gas

    SNP Leader, Alex Salmond MP, will open a debate in the House of Commons on Tuesday (6th June) on SNP proposals to repatriate oil and gas, and the revenues from the Scottish sector of the North Sea, to the Scottish Parliament.

    The SNP's Scotland (Oil and Gas Resources) Bill will be the first time a detailed proposal to bring home control of Scottish oil and gas has been debated in the House of Commons and marks the beginning of an SNP campaign, leading up to the Scottish election next year, to ensure the £1 billion a month in oil revenues benefit Scotland and the Scottish economy more directly.

    Commenting Mr Salmond said:

    "It is now over thirty years since the first oil was pumped from the Scottish sector of the North Sea. In that time more than 34 billion barrels of black gold have come ashore, bringing a revenue windfall for the United Kingdom of £203 billion.

    "It was the prospect of Scottish oil that enabled Britain to secure the IMF loan in the 1970's that saved the United Kingdom from bankruptcy. It was revenues from Scotland's oil and gas that paid for the millions thrown into unemployment by the Tory government's recessions.

    "And today, with oil revenues once again at the record high levels of the 1980's, Scotland's wealth is now filling the black hole in the British budget and saving Gordon Brown from the embarrassment of tax rises or spending cuts.

    "After all these years of British benefit, it is now Scotland's turn.

    "One of the clear practical benefits of this Bill would be to transfer responsibility for oil and gas to Scotland ­ and that would see dozens of energy department jobs moving from London to Aberdeen, where they clearly belong. That alone would mean a multi-million pound boost for the city.

    "But the benefits to Scotland as a whole would be significant. On the government's own figures, it would mean the transfer of an asset worth £170,000 for every man, woman and child in Scotland. It would end the annual £800 a head subsidy Scotland now pays to London because of our oil wealth.

    "We are now at the half-way point for Scotland's oil and gas production. Scotland will remain a net exporter of oil and gas for many years to come.

    "We will have the opportunity to deliver a stable tax regime and exploration incentives to protect the long-term future of the industry. With responsibility for oil, the Scottish Parliament could create a Scottish Oil Fund ­ so that the benefit of our win on the natural lottery is felt for longer and delivers a secure financial future for our country.

    "Britain cannot be trusted with the future of our precious oil and gas resource. For London, Scotland's oil is little more than a cash cow.

    "Independence will bring home control of Scotland's oil and gas­ but the Scottish Parliament needs the power now.

    "We must make sure that the second half of our oil windfall brings benefits to everyone living in Scotland so we can tackle the inequality that blights our society. The last thirty years of oil are gone and largely wasted. Let's make sure the next thirty see the transformation that Scotland deserves."

    Note: The Scotland (Oil and Gas) Bill will be introduced in the House of Commons as a ten-minute rule bill. The draft Bill is copied below.



    Scotland (Oil and Gas Resources) Bill 2006

    An Act to provide for the transfer to the Scottish Parliament of legislative authority over Scotland's oil and gas resources; to provide for revenues from the Scottish sector of the UK Continental Shelf to be paid into the Scottish Consolidated Fund; and for connected purposes.

    BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-

    PART I

    Transfer of legislative authority

    Amendments to the Scotland Act 1998

    1.

    (1) The Scottish Parliament shall have legislative authority over Scotland's oil and gas resources.


    (2) Matters within the devolved competence of the Scottish Parliament will include:-

    (a) the ownership of, exploration for and exploitation of deposits of oil and natural gas,

    (b) the subject-matter of section 1 of the Mineral Exploration and Investment Grants Act 1972 (contributions in connection with mineral exploration) so far as relating to exploration for oil and gas,

    (c) offshore installations and pipelines,

    (d) the subject-matter of the Pipe-lines Act 1962 (including section 5 (deemed planning permission)) so far as relating to pipelines within the meaning of section 65 of that Act,

    (e) the application of Scots law and the jurisdiction of the Scottish courts in relation to offshore activities,

    (f) pollution relating to oil and gas exploration and exploitation, but only outside controlled waters (within the meaning of section 30A(1) of the Control of Pollution Act 1974),

    (g) the subject-matter of Part II of the Food and Environment Protection Act 1985 so far as relating to oil and gas exploration and exploitation, but only in relation to activities outside such controlled waters,

    (h) restrictions on navigation, fishing and other activities in connection with offshore activities,

    (i) liquefaction of natural gas, and

    (j) the conveyance, shipping and supply of gas through pipes.


    (3) The enactments mentioned in Schedule 1 are repealed to the extent specified in that Schedule.


    PART II

    Payment of oil and gas revenues into the Scottish Consolidated Fund

    Treatment of revenues from Scottish sector of the UK Continental Shelf

    2.

    (1) Revenues accruing from the Scottish sector of the UK Continental Shelf shall be paid into the Scottish Consolidated Fund.


    (2) The Treasury shall designate by order that all receipts from taxes or royalties in the Scottish sector of the UK Continental Shelf including taxes on profits from oil and gas extraction are payable into the Fund.


    3.

    The Scottish Ministers may reimburse any Minister of the Crown or government department for administrative expenses incurred by virtue of this Part at any time after the passing of this Act by the Minister or department.


    Amendments to the Scotland Act 1998


    4.

    (1) Matters within the devolved competence of the Scottish Parliament will include taxes, allowances and royalties paid in relation to the Scottish sector of the UK Continental Shelf.


    (2) The enactments mentioned in Schedule 2 are amended to the extent specified in that Schedule.


    PART III

    Supplementary

    Interpretation


    5.

    (1) In this Act -

    "Scottish sector of the UK continental shelf" means the area of Scottish waters defined by the co-ordinates set out for the boundary in the Continental Shelf Jurisdiction Order (S.I./1968, 891).


    Transitional Provisions

    6.

    Subordinate legislation may make such provision as the person making the legislation considers necessary or expedient for transitory or transitional purposes in connection with the coming into force of any provision of this Act.


    Commencement

    7.

    This Act shall come into force on the date of Royal Assent


    8.

    This Act may be cited as the Scotland (Oil and Gas Resources) Act 2006


    S C H E D U L E S

    SCHEDULE 1

    REPEALS

    Chapter Short title Extent of repeal

    1998 c. 46. Scotland Act 1998.

    In Schedule 5, Part II, delete Section D2. Oil and gas


    SCHEDULE 2

    MODIFICATIONS OF ENACTMENTS

    Scotland Act 1998 (c.46)

    1.

    In Schedule 5, Part II, Section A1. of the Scotland Act 1998 (reservations), in exceptions add "Any taxes, allowances or royalties paid in relation to the Scottish sector of the UK Continental Shelf including Petroleum Revenue Tax and Corporation tax and the supplementary levy on taxable profits from oil and gas extraction".

    Author : SNP Press Office