Where has all our oil money gone? By Jo Edwards The 1970′s, the era of the ‘pivot of change’, may have been a time of growing political awareness, women’s liberation and social progression; but it was also a time when two countries faced their own potential for pivotal change with a fast emerging oil and gas sector. Today – one is now one of the strongest economies in the world with $726 bn in assets, and the other, a country hit by suffocating austerity, increasing poverty and a national debt that now sits at over £1 trillion. With similar population sizes, natural resources, and geographical location – where did it all go so right for Norway, and so wrong for the UK? The Norwegian Government Pension Fund – Global, or what is known as the largest sovereign wealth fund in the world was established in 1990 to deposit the surplus of the oil sector in anticipation of increased pension costs and a future without oil. Ever since, Norway has been thriving both socially and politically, its population safe in the knowledge that instead of freezing to death for fear of unpaid heating bills; they will be looked after come retirement age. Across the sea, having been downtrodden for several decades after the second world war, the UK also waxed lyrical about our oil and gas reserves in an equally alluring way. We were to finally become self sufficient in energy, with the money generated used to modernise and maximise our economy and bring us all prosperity in line with our European counterparts. Instead however, the UK squandered it all. A statement recently admitted by Alistair Darling, the leader of the pro Unionist No campaign, on a BBC Hardtalk interview. As the 1970′s also saw the emergence of neoliberalism – ravenously adopted by Margaret Thatcher and the Conservative Party; UK government after UK government watched on as the Treasury creamed off billions from a pot that should have belonged to the Scottish people. Not to mention as a compounder to the theft, the public’s hard earned money continues to pay for this reckless, corrupt and nepotistic behaviour of the Westminster privileged elites. Instead, the unit of the Norwegian Central Bank which oversees their oil fund has adopted a stringent framework for adding to its value since its creation, carefully investing in companies worldwide basing its decisions on principles of financial sustainability – with the well being of the fund always the top priority. Norway, unlike the UK, sought to minimise political agenda and corporate influence from within its walls, and as a result, now holds an unprecedented level of transparency. Just as companies such as Walmart, Lockheed Martin and Boeing have been given the boot due to questions surrounding human rights abuses – the UK invites their like with cosy dinners and tax breaks at the cost of the British people. And Norway has not stopped there in the protection of its investment. Voicing concern further, it is reducing its bond holdings in alarm at the actions of western central banks and their rampant money printing – instead choosing to diversify to emerging markets that aren’t laden with debt. A sound investment portfolio some might say when the fund is predicted to keep on growing. But what of the oil? Chancellor George Osborne and the Office of Budget and Responsibility continue to downgrade North Sea oil production, which could even be entertained as a valid argument for weak UK economic recovery if the Norwegians didn’t see it coming decades ago. What cannot be endorsed however is the continued denial that, as Tony Benn the former Labour Energy Minister stated on BBC’s Truth, Lies, Oil and Scotland – it was these very oil revenues that saved the UK economy from bankruptcy for 30 years. But as Scottish Finance Secretary John Swinney has previously stated, Westminster’s own Department of Energy and Climate Change seems to disagree, instead forecasting predictions that are much more positive. Could it be then as Jim Eadie SNP MSP puts it, the UK government is just afraid of losing their “short term cash cow” for a failing Westminster Treasury? Whatever argument seems more believable, the fact remains that any oil and gas wealth in an independent Scotland’s future could be used to benefit economies around the globe if the Norwegian model is anything to go by. Not only could it help to safeguard the futures of the Scottish people, but also propagate a new wave of ethical business practices that are sorely needed in these bleak times of corporate favouritism at the hands of the ordinary people. And this would benefit everyone, not just those within an independent Scotland. What is a definite however is that we will never find out if Westminster is allowed to continue sucking this wealth into its own coffers for its own means until it really does run dry.
Posted on: Fri, 13 Sep 2013 07:58:42 +0000
Trending Topics
Recently Viewed Topics
© 2015