Tag: Europe

Alexander urged to ‘come clean’ on assets share

As we confidently predicted yesterday (!) (see ‘Fantastical’), John Swinney was quick to counter Danny Alexander’s pronouncements on how an independent Scotland’s economy would shape up. Sadly the Holyrood Finance Secretary’s response made no reference to the forthcoming Eurovision Song Contest …

Swinney

Finance Secretary John Swinney said any claims about Scotland’s finances from the UK Government must include details on Scotland’s share of UK assets worth nearly £1.3 trillion.

Mr Swinney said the Chief Secretary to the Treasury has recently admitted to the Scottish Parliament that Scotland will inherit a share of UK assets.

He said billions of pounds could be paid to an independent Scotland in cash as many of the assets paid for by Scottish tax-payers will be physically located in the rest of the UK.

Mr Swinney said: “Danny Alexander has said the UK Treasury is examining the finances of an independent Scotland.

“We already know Scotland is one of the wealthiest countries in the developed world and that over the past 5 years our public finances have been healthier than the UK’s to the tune of around £1,600 per person.

“To have a shred of credibility any Westminster analysis should also set out in detail the assets that will be due to Scotland in the event of a vote for independence in September.

“As part its campaign rhetoric we know the UK Government talks about Scotland’s share of the debt run up by successive Westminster Chancellors. It cannot be taken seriously if does not also talk about Scotland’s share of assets.”

“Scotland’s share of UK assets will be realised in a combination of ways – through physical assets, cash transfer and continued use of assets through shared service agreements.

“Assets located elsewhere in the UK will be included in negotiations, as Scotland has contributed to their value over a long period of time. For physical assets like these, the equitable outcome may be to provide Scotland with an appropriate cash share of their value.

“We note with interest preliminary analysis by academics suggesting that on defence alone Scotland may be entitled to draw upon a notional sum of nearly £5 billion for physical assets located elsewhere

“The apportionment of the UK national debt will be negotiated and agreed as part of the overall settlement on assets and liabilities.

“On any reasonable scenario, because national income per head is higher in Scotland than the UK, an independent Scotland will have a lower debt burden as a share of GDP than the UK.

“Both the Scottish and UK Governments have signed the Edinburgh Agreement which commits both governments to working together on matters of mutual interest, good communication and mutual respect.

“The two governments have also said they will work together constructively, whatever the result, so we can expect these matters to be worked out in that spirit of mutual respect and co-operation.”

BUCKS FIZZ: Not mentioned in Swinney speech
BUCKS FIZZ: Not mentioned in Swinney speech

 

‘Fantastical’ referendum myths must be debunked – Danny Alexander

HM Treasury

It is time to debunk the calculations and claims that have been put forward by the Scottish government in this referendum, Chief Secretary Danny Alexander will say in a keynote speech to business leaders in Edinburgh today (30 April). And while Europe is a clearly a relevant referendum issue, the Eurovision Song Contest gets a mention for the first time!

Speaking on the day of publication by HMRC of new oil revenue data and ahead of publication of the Westminster government’s most comprehensive analysis of the fiscal consequences of separation yet, the Chief Secretary will challenge some of the ‘myths’ perpetuated by nationalists and call on the Scottish Government to be honest with people about the cost of independence.

He will also call on the Scottish government – and Finance Secretary John Swinney – to publish revised and realistic forecasts of oil and gas revenues.

dannyAlexander

Danny Alexander (pictured above) will say:

“The nationalists’ assertions on Scotland’s finances are at best ill-informed and at worst, deeply misleading to Scottish voters. The fact is that their £1.5 trillion figure for the value of oil left in the North Sea doesn’t include any costs for getting the oil out of the ground and into the petrol pump.

“Over the whole 5 year period of the Scottish government’s Oil and gas bulletin [2012 to 2017], their most cautious forecast for Scottish oil and gas revenues is £41 billion. Yet the independent Office for Budget Responsibility forecasts that whole UK revenues will be just £25 billion over the same period. It doesn’t matter how deep you drill into the figures, they simply don’t add up. The indisputable point is that we are better off together.

“It is time for the Scottish government to confirm what we all know: that the White Paper was wrong, to correct the discredited Oil and gas bulletin and the errors at the heart of the White Paper. The Scottish government must confront the fact that it is promising tax revenues and public spending that it cannot deliver. It should revise its oil and gas forecasts or better yet, follow international best practice and follow an independent forecast like the OBR’s. It is the very least that the Scottish voters deserve.

On the ‘myths’ perpetuated about independence, Mr Alexander will say:

It’s perhaps true that the Referendum campaign here in Scotland hasn’t provided many laughs so far and given both the enormity – and the irreversibility – of the choice we face, that is perfectly understandable. But as the campaign continues, when it comes to some of the statements and assertions made by nationalists, you really do need a sense of humour.

On some of the basic financial assumptions made in the White paper, he will say that the nationalists ‘ignore the reality, that when the financial crisis hit, it was the government of the United Kingdom that stepped in to recapitalise RBS and HBOS and the taxpayers of the United Kingdom that extended £275 billion of total support to RBS alone’.

On currency, he will challenge the: “…continued, belligerent, assertion that Scotland could – and would – keep the pound. Alex Salmond has to face up to the fact that the rest of the UK does not have to – and would not want to – continue to share the credit card.”

And on UK institutions, he will say: “There is also the fantastical claim, made in the White Paper that an independent Scotland would share a third of the UK’s institutions and services despite the fact that this is completely unprecedented anywhere in the world. This is a claim we have to listen to whenever an institution crops up that the nationalists haven’t had time to think about.

“So it won’t surprise me if next Saturday night Alex Salmond declares that an independent Scotland will share the UK’s automatic place in the final of the Eurovision Song Contest!”

BROTHERHOOD of MAN: Eurovision no more?
BROTHERHOOD of MAN: Eurovision no more?

The Treasury’s forthcoming fiscal analysis will set out the benefits of the UK and the costs of independence. In the absence of any detailed costings from the Scottish government, Treasury economists have spent months analysing data and forecasts and consulting with independent bodies to calculate in detail the figures that illustrate the benefits of the UK and the cost of independence.

That analysis will be published in coming weeks – but John Swinney’s response to Danny Alexander’s assertions will come considerably quicker than that. Nil points is a fair guess! 

Letter: Eu turn if you want to

Dear Editor
What a game it is when the antics of the Tories’ anti-European Union campaign, supported by the UKIP party, is designed to
manipulate public opinion. In the absence of any real information on the EU  being readily available for the public, they feel confident of succeeding.
If you listen carefully you will find one main aim is to do away with the EU Social Policies; why? Is it because they wish to improve on them? if so  that can be done right now. I suspect this is not their intention at all. Listed below are some of the EU Social Policies for member states:
Health Protection and Workplace Safety.     
Equal Treatment for Men and  Women.
Protection for Children, Older People and Disabled  People.
Improved Working Conditions.  
Freedom of  Association and Collective Bargaining.
Social Security Protection. 
Fair Pay.  
Promotion of Employment as High Priority.
Why are they then so keen to opt out?  Do they disagree with any or all of these policies?
Be very aware of their call for our support in their campaign which if successful could inflict serious damage on our lives.
Tony Delahoy
(by email)