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Dude, Where's My North Sea Oil Money?

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http://www.theguardian.com/commentisfree/2014/jan/13/north-sea-oil-money-uk-norwegians-fund

Last Wednesday, every single Norwegian became a millionaire – without having to lift a lillefinger. They owe the windfall to their coastline, and a huge dollop of good sense. Since 1990, Norway has been squirreling away its cash from North Sea oil and gas into a rainy-day fund. It's now big enough to see Noah through all 40 of those drizzly days and nights. Last week, the balance hit a million krone for everyone in Norway. Norwegians can't take a hammer to the piggy bank, amassed strictly to provide for future generations. And converted into pounds, the 5.11 trillion krone becomes a mere £100,000 for every man, woman and child. Still, the oljefondet (the government pension fund of Norway) owns over 1% of the world's stocks, a big chunk of Regent Street and some of the most prime property in Paris: a pretty decent whipround for just five million people.

Wish it could have been you with a hundred-grand bonus? Here's the really nauseating part: it should have been. Britain had its share of North Sea oil, described by one PM as "God's gift" to the economy. We pumped hundreds of billions out of the water off the coast of Scotland. Only unlike the Norwegians, we've got almost nothing to show for it. Our oil cash was magicked into tax cuts for the well-off, then micturated against the walls of a thousand pricey car dealerships and estate agents.

All this was kick-started by Margaret Thatcher, the woman who David Cameron claims saved the country. The party she led still touts itself as the bunch you can trust with the nation's money. But that isn't the evidence from the North Sea. That debacle shows the Conservatives as being as profligate as sailors on shore leave.

Stupid Norwegians that money is for the bankers and the 1%. I'm sure someone will come along and help relieve them of this terrible burden.

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Maggie had to pay for an oversized military, pretending she was running an imperial great power.

She had to pay welfare to all those workers in industry she deemed not cost effective, like chucking them on the dole was a cost saver.

Any history on oil companies donating to party coffers ? Wouldn't surprise me.

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Maggie had to pay for an oversized military, pretending she was running an imperial great power.

I heard on the radio this morning, someone was suggesting that the army ration bullets (during training ), to save move.

The UK was once a great power ( and considering some of the things they did is nothing much to be proud of ) and now it's not.

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Given the interest repayments on our debt are larger than the entire defence budget, which is itself less than 10% of government spending, the idea that the military is to blame is a gigantic poisson rouge.

Though no doubt people of a lefty bent would like to blame the ~7% of government they don't approve of, rather than the ~93% that they do.

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Given the interest repayments on our debt are larger than the entire defence budget, which is itself less than 10% of government spending, the idea that the military is to blame is a gigantic poisson rouge.

Though no doubt people of a lefty bent would like to blame the ~7% of government they don't approve of, rather than the ~93% that they do.

You're right in a way, the defence budget spending is not the problem....it's ALL the government spending is the problem.

Too much scope for waste, too much scope for VI, too much scope for vested corruption etc etc etc.

The solution, tiny government, single rate of tax ( and only 1 tax ), subsidence benefits.

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One of the huge advantages Germany and Japan had after war were the very strict limits to their military spending. Even a saving of 2% per annum adds up to an awful lot of investment over 20 years.

The sooner we cut our cloth and stop pretending the better.

Japan.

http://en.wikipedia.org/wiki/Hy%C5%ABga-class_helicopter_destroyer

http://en.wikipedia.org/wiki/Izumo-class_helicopter_destroyer

And yet have 3 operational helicopter carriers with a 4th planned.

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You're right in a way, the defence budget spending is not the problem....it's ALL the government spending is the problem.

Too much scope for waste, too much scope for VI, too much scope for vested corruption etc etc etc.

The solution, tiny government, single rate of tax ( and only 1 tax ), subsidence benefits.

Not maybe such a smart move.

China, Japan and Taiwan are in dispute about some small islands in the Pacific. It could become a shooting war at any time.

If it does in much the same way globalisation has had an impact on World trade so will that conflict spread.

The history of mankind tells us we are overdue for a big war. Logic demands that at some unspecified point in the future there will be one.

European debt crises, shortage of oil/gas/coal other energy, lack of water resources in the Middle East, Iran and the move to nuclear weapons. These are just a few of the current reasons there are many others over the horizon we cannot yet see.

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Only now. If you hadn't noticed, in the years their spending was restricted and they invested in exports their economy became much larger than ours.

And they are probably spending less than us as a share of GDP.

And 50% of the tax take goes on interest repayments which equals approx 25% of overall govt expenditure.

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I really cannot see how the UK will ever change whilst there is an environment that results in politicians reacting with short term solutions to populist headlines that keep the sheeple happy for 5 minutes but continue to do long term damage.

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I really cannot see how the UK will ever change whilst there is an environment that results in politicians reacting with short term solutions to populist headlines that keep the sheeple happy for 5 minutes but continue to do long term damage.

Quite - one sure way to go to hell in a hand cart

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I heard on the radio this morning, someone was suggesting that the army ration bullets (during training ), to save move.

The UK was once a great power ( and considering some of the things they did is nothing much to be proud of ) and now it's not.

Uk still has the 3rd highest defence spend in the world, which is bizarre when you think about it. Who are we supposed to be defending against?

That money could be put to much better use funding education, low tax economic zones and such to help industry, which would employ the same working class that get recruited into the army.

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Uk still has the 3rd highest defence spend in the world, which is bizarre when you think about it. Who are we supposed to be defending against?

Anyone who would come and steal our valuable bricks

That money could be put to much better use funding education, low tax economic zones and such to help industry, which would employ the same working class that get recruited into the army.

Tragedy, isn't it.

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Anyone who would come and steal our valuable bricks

Tragedy, isn't it.

You're nearly right, but the commoners own most of the bricks via their proxy, the banks. What we spend money defending, is the right of some ancestral aristocracy to control the rents derived from land.

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Uk still has the 3rd highest defence spend in the world, which is bizarre when you think about it. Who are we supposed to be defending against?

That money could be put to much better use funding education, low tax economic zones and such to help industry, which would employ the same working class that get recruited into the army.

Except that the Army is being cut from 100,000 to about 82,000, so won't be recruiting all that many working class bods.

Admittedly the MoD wants to increase the Army Reserve from 19,000 to 30,000. However, being in the Army Reserve relies on people having an income to live on during the majority of the year when they're not soldiering. Unsurprisingly, they're having trouble recruiting the numbers they want.

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Here's what the SNP were saying back in the 70s:

2wf0pj4.jpg

Still, the oil's pretty much gone now, so it's safe to finally offer us a referendum about independence ...

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I really cannot see how the UK will ever change whilst there is an environment that results in politicians reacting with short term solutions to populist headlines that keep the sheeple happy for 5 minutes but continue to do long term damage.

Agreed. An island populated by selfish, lazy, short-termist, ignorant chancers.

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Here's what the SNP were saying back in the 70s:

2wf0pj4.jpg

Still, the oil's pretty much gone now, so it's safe to finally offer us a referendum about independence ...

At least get the history right. The age of big oil and gas discoveries in the North Sea really got going in the late 1960s and especially 1969-70, Scotland had a referendum on a devolved assembly in 1979. The order of events doesn't really fit that story.

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Dont worry!

Dave has promised not to repeat Thatcher's error. He's going to give 1% of all lifetime revenues from the Fracksters to the plebs to shut them up. The other 99% goes to his mates of course.

Can't say fairer that than eh?

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At least get the history right. The age of big oil and gas discoveries in the North Sea really got going in the late 1960s and especially 1969-70, Scotland had a referendum on a devolved assembly in 1979. The order of events doesn't really fit that story.

I think the word "rigged" is missing there somewhere.

Edit: hold on, you are of course right as far as Mrs Thatcher's concerned. The SNP was using the "It's Scotland's oil" slogan (and using more reasoned political argumentsbased on North Sea oil) well before she was elected, so that's perhaps not the best poster to have chosen. It's worth pointing out though that she was elected pretty much as a direct result of the political debacle following the failure of the independence referendum.

Edited by Scunnered

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Dont worry!

Dave has promised not to repeat Thatcher's error. He's going to give 1% of all lifetime revenues from the Fracksters to the plebs to shut them up. The other 99% goes to his mates of course.

Can't say fairer that than eh?

Yes why aren't the people in Lancashire agitating for a similar fund?

At the moment the offer to Lancs its just pittance, pay off the locals with some sea shells whilst the profits get siphoned away to London and abroad

Figures (could be dubious) from the Fracking lobby, after Total's recent decision, say there is well over 150 billion pounds worth of recoverable gas in north of england,most of it in lancashire . People there need to act fast or it will be a repeat of the North Sea

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Yes why aren't the people in Lancashire agitating for a similar fund?

At the moment the offer to Lancs its just pittance, pay off the locals with some sea shells whilst the profits get siphoned away to London and abroad

Figures (could be dubious) from the Fracking lobby, after Total's recent decision, say there is well over 150 billion pounds worth of recoverable gas in north of england,most of it in lancashire . People there need to act fast or it will be a repeat of the North Sea

Treasury has slashed funding to these councils.

Now they're dangling a teeny weeny carrot which might save a few jobs.

Some councils will jump at a few £££ now I guess.

I agree though. Why aren't these councils, and residents starting from the view that's if the Queen wants 99% of their mineral wealth she can come up and fight them for it else she can f*ck off. Brits must be the most docile peasants on the planet.

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Like a teenager with a new credit card our bloated government spent the north sea oil revenue before they even had it. Military spending is not the main problem, though.

Pensions 144.1 0.0 0.0 144.1

Health Care 129.5 0.0 0.2 129.7

Education 39.1 0.0 49.5 88.6

Defence 46.5 0.0 0.1 46.6

Welfare 57.2 0.0 55.4 112.5

Protection 15.1 0.0 16.6 31.7

Transport 11.0 0.0 8.1 19.1

General Government 9.3 0.0 5.0 14.3

Other Spending 46.9 0.0 36.0 82.9

Interest 49.5 0.0 0.3 49.8

Total Spending: 549.9

http://www.ukpublicspending.co.uk/year_spending_2014UKbn_13bc1n#ukgs302

Pensions cost about the same as education, military and welfare combined. Yet the incredibly generous, unfunded pensions are always exempt from cuts. Otherwise pensioners could not have three cruises per year at our expense.

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Interesting that HPCers are anti-rentier right up until the moment that some mineral wealth is found under the ground somewhere vaguely near where they happen to be living, then suddenly they have a natural right to a share of that wealth which people living a bit further away (but still within the same fiscal space) don't.

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