A NORTH SEA oil report commissioned by the Scottish government ahead of September’s independence referendum has recommended lower tax rates in a more “stable, predictable and internationally competitive” regime.

Melfort Campbell, chairman of the Independent Expert Commission on Oil and Gas, said policy must “swiftly change from seeking to control access to a sought-after resource to one where investment has to be attracted by positive features.” 

The former CBI Scotland leader said: “We are seeing inadequate returns for operators, significantly reduced income for the Treasury and the loss of added value through the supply chain and into the wider economy.

“The UK continental shelf used to be like an exclusive nightclub with bouncers on the door only allowing celebrity VIPs access. 

“Now it is more akin to a trattoria with waiters touting for business on the pavement outside.”

SNP Energy Minister Fergus Ewing said that “basing policy on 'total value added' (including the value generated by the entire supply chain, both at home and exports) is central to fulfilling the North Sea’s potential.”

He welcomed the report’s backing for an earlier proposal from oil tycoon Sir Ian Wood to create “an arm’s-length regulator that will enhance the stewardship of our natural resources.”