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Scottish independence: Minister John Swinney says oil fund would be 'prudent'

10 October 2013 Last updated at 11:17 BST

The Scottish government's Finance Secretary John Swinney believes that if debt in an independent Scotland was reducing it would be prudent to invest in an oil fund.

He was commenting after a report prepared last year, but only just released following a Freedom of Information request, warned that ministers would have to raise taxes or cut services if they wanted to invest in such a fund.

Mr Swinney told BBC Radio Scotland's Good Morning Scotland programme that the document reflected the Scottish government's "early thinking" on the matter.

He added: "If debt is reducing, is on a downward path, the level of debt is somewhere below probably 3%, then it is prudent and responsible to invest in an oil fund.

"People will have mortgages, which is debt, it is an obligation to pay back, at the same time many people will also be saving - if they have the money to put aside for their future - and that is exactly what we are trying to do as a country."