Secure Jackdaw funds for Scotland, John Swinney urges Andy Burnham

First Minister John Swinney has asked Prime Minister Andy Burnham to ensure proceeds from the Jackdaw gas field benefit Scotland.

The UK Government has consented to production in the North Sea field and said it will reinvest tax revenues from oil and gas into renewables through a new Energy Wealth Fund.

In a letter to Burnham, Swinney asked for that fund to be “ring-fenced to be focussed on the north east of Scotland”.

He said the decision on the field presents an opportunity to “secure a lasting legacy from Scotland's remaining offshore oil and gas resources”.

Making the case for a Norway-style sovereign wealth fund, Swinney questioned why Chancellor John Healey put the initial commitment for the new investment pot at £2bn.

Swinney said this sum “seems to represent only around half of last year’s North Sea revenues”. He said he was “keen to understand” this and to find out how the fund will be managed and what it will be used for.

The FM said: “My clear view is that, given the distribution of North Sea oil and gas resources, any such fund should be prioritised for offshore renewable opportunities and be ring-fenced to be focussed on the north east of Scotland.”

The SNP and Scottish Government have called for the devolution of powers over energy, something the UK Government has shown no sign of movement on.

In his letter, Swinney said: “I am sure that you will agree that is essential that maximum public benefit be derived from finite natural resources, ensuring that the wealth they generate supports economic transformation for the long term.

“Successive UK Governments have failed to establish a dedicated sovereign wealth fund using North Sea oil and gas revenues. This has meant that the people of Scotland have not fully benefited from the wealth generated by our vast energy resources.

“The UK is one of the only states to discover oil and gas but not build a fund to deliver long-term benefit from it. Whilst I recognise that the North Sea basin is now geologically mature, it is also the case that we will continue to use its oil and gas for years and decades to come. Newly consented fields, such as Jackdaw, will generate substantial additional revenues over this period.”

Speaking at PMQs, Burnham said the previous Conservative government had “messed up” over Jackdaw, resulting in a court challenge which delayed a decision on its future.

He said production would improve domestic energy security in a “difficult time”.

Also in the Commons, Speaker Lindsay Hoyle issued an angry volley at energy minister Michael Shanks over the government’s decision to give the media, not MPs, first notice of the decision.

Hoyle called that “an immense discourtesy to the House”, saying of energy secretary Miatta Fahnbulleh: “I am sorry that Sky News is more important rather than the members of both sides. It is appalling treatment.”

Shanks said he respected Hoyle’s comments and would “take them back to the department”.