Object not inheriting transform from parent

I'm making a Space Invaders clone as a learning exercise (Unity beginner here).

When I press fire I want a shot to appear at the player's position of course (I haven't got to making the shot travel yet). At the moment when I press fire the 'playerShot' appears in the centre of the screen, not where the player is.

What am I doing wrong? The script is attached to the player object and so it should inherit the default position and rotation of the player shouldn't it?

The only idea I had was maybe it's an issue because I'm using Orthello2D? I was thinking of making my objects sprites rather than rigid bodies because I thought that would be more efficient. Am I wrong?

Code below. Any help much appreciated.

using UnityEngine; using System.Collections;

public class player : MonoBehaviour {

 //Figure used to change speed of left/right movement
 public float moveSpeed = 400.0f;
 public GameObject playerShot;

 
 // Use this for initialization
 void Start () {
 
 }
 
 // Update is called once per frame
 void Update () {
     
     //Setting variables and defining basic left/right player movement
     float h = Input.GetAxis("Horizontal") * Time.deltaTime * moveSpeed;
     transform.Translate(h, 0, 0);    
     
     //Fire mechanism

     if (Input.GetButtonUp("Fire1")){
         OTSprite newPlayerShot = Instantiate (playerShot, transform.position, transform.rotation) as OTSprite;    
     }
 }

}