Salmond rejects UK tax plan

Scotland's First Minister Alex Salmond gestures to journalists during a news conference in Edinburgh, Scotland to publish the Scottish National Party's white paper for independence for Scotland, August 14, 2007. Scotland's governing party set out its plans on Tuesday for a referendum on independence but the main opposition parties vowed to block any move to end the 300-year-old union with England. REUTERS/David Moir (BRITAIN)

Salmond: The Scottish leader said the UK Government had treated Scotland's oil wealth in an incompetent and shabby fashion.

DAVID MOIR

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By Upstream Staff and News Wires

 04 April 2011 04:59 GMT

Scottish First Minister Alex Salmond has condemned a UK Government proposal to increase production taxes on North Sea producers as a UK company announced it was reconsidering a planned £700 million ($1.12 billion) investment in the area.

Salmond, the leader of the Scottish National Party, said the changes ran the risk of diverting investment away from the North Sea area.

"There is nothing wrong with making taxation responsive to profitability and high oil prices, but it has to be done in a planned fashion with appropriate incentives for marginal fields and infrastructure development,” he said in an announcement.

“The Treasury's only interest was mounting a smash and grab raid on Scotland’s resources to bankroll Westminster.

His announcement, made ahead of a Scottish Parliament election on 5 May, comes as British Gas…

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