Scotland’s First Minister Alex Salmond will be in Norway today to discuss a variety of policy issues, including the design and governance of Norway’s Government Pension Fund-Global. Apparently, Salmond wants a similar SWF for Scotland, and he is quoted in the Foreigner as saying:
“The Scottish Government is working to strengthen economic links with this successful European country and shares its vision of having an Oil Fund that utilises the resources we have now, to leave a sustainable lasting legacy for future generations. Norway’s oil fund is worth over £300 billion and a similar scheme for Scotland would help secure billions of pounds for our communities. More than £240 billion of tax revenue has come directly from Scottish waters over the past 30 years and it is only fair that Scots should reap the rewards of our rich energy resources. Investing a portion of North Sea revenues in an oil fund could provide greater stability, protect the economy and support the creation of a low carbon economy. I am keen for Scotland to learn from Norway and to experience the benefits of investing a share of energy revenues into a fund that provides a permanent source of wealth for our nation.”
I first reported talk of a ‘Scottish Oil Fund’ back in July 2009, but I hadn’t seen any real advances on the proposal since then (at least that warranted a post). Nonetheless, the Scots are apparently still hoping to set up an SWF: they feel (and with good reason) that the UK has failed to properly manage hundreds of billions of pounds in resource revenues over the past three decades. And so, they may be taking matters into their own hands through an SWF.
One has to assume that a new Scottish SWF would also fit perfectly into Salmond’s ongoing push for Scottish independence (he has called for a referendum on the issue and has also been described by his opponents as “obsessed with independence“). And, I should note, Scotland wouldn’t be alone in looking to set up a SWF for this purpose. Greenland had similar hopes about a mooted SWF. And then there is always the Palestine Investment Fund.
Anyway, I find it difficult to tell if Salmond’s Norway visit is based on real plans to set up a SWF, or if it’s just political posturing. Either way, it’s still interesting.
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