Oral question asked in the House of Commons, by Gordon Banks (Labour). It was answered on Tuesday, 23 January 2007 on behalf of the Scotland Office.

Gas Production

Question: While such exploration is important, does my right hon. Friend agree that an economy built solely on the success or failure of fossil fuels is likely to result in an overall reduction in spending and economic activity?

Answer: My hon. Friend is right to say that oil in the North sea and elsewhere is a finite commodity. North sea production passed its peak in the first year of the Scottish Parliament back in 1999. I hear the claim that Norway should be a lodestar for us in using that finite commodity more effectively. Norway has about twice the UK’s oil reserves, yet Norwegians pay a higher top rate of tax, a higher basic rate of income tax, higher VAT, higher employers’ national insurance contributions and higher duties. That is something that the whole House should consider.

Secondary information