An independent Scotland will negotiate to claw back “substantial” historic oil revenues in order to ensure it can maintain decommissioning tax credits promised by the UK Government, an expert has claimed.
Uisdean Vass, an Aberdeen-based oil and gas partner with UK law firm Bond Dickinson, said that the Scottish Government has pledged to honour the decommissioning tax credit obligations of the UK Government in the case of a Yes vote in the upcoming independence referendum.
But he added that the cost burden of North Sea decommissioning will be “massive”.
“Given that the great majority of tax revenues from the old fields will have gone to support the Union pre-independence, the Scottish Government will seek to negotiate a substantial contribution from the remaining UK for credit relating to production in the UK era,” said Mr Vass.
The Scottish Government confirmed it will seek “commensurate contribution” from the estimated £300billion of tax receipts the UK has accrued from North Sea oil.
SNP MSP Maureen Watt said: “Decommissioning the North Sea’s oil and gas infrastructure is the next huge oil and gas opportunity for Scotland, with the expenditure made over the decades to 2040 and estimated at around £900million to £1.2billion per annum over the next few years.
“After independence responsibility for decommissioning tax relief will be negotiated between the Westminster and Scottish Governments.
“Westminster has accrued around £300billion in tax receipts from Scotland’s oil and gas, and therefore the Scottish Government will seek a commensurate contribution to the costs of decommissioning from Westminster.”
A Better Together spokesman said: “The UK Government has set aside £20billion for the clean-up of the North Sea meaning the cost per person across the UK is £380.
“However, if Scotland leaves the UK, the costs would fall on Scots alone, increasing it to £3,800 per person.
“This is more evidence that independence isn’t a price worth pay-ing.”
Aberdeen-based Mr Vass, who is speaking at a series of international events to discuss the impacts of a possible Yes vote later this month, also said he was “fairly confident” the majority of the North Sea would become part of what would be the Scottish Continental Shelf if Scotland votes for independence.
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