Joan McAlpine: Alaskan dividend might oil wheels of independence
Scotland could learn lessons from US state where entrepreneurial spirit flourishes and citizens cash in on annual payout
THERE are two responses to the news that nearly two-thirds of Scots would embrace independence if it guaranteed them an extra £500 a year. The glass half empty response is summarised by the lukewarm nationalist tweeter who suggested it was “a bit grubby”.
So much for being one of Europe’s oldest nations, Bannockurn and all that. Never mind the land of invention, which gave the world golf, whisky, betablockers and television. Push aside the rich culture, the language of Burns, the oral tradition and Auld Lang Syne. Don’t fret over the need to preserve the health service and build a fairer society. Scotland’s sovereignty, once bought and sold for English gold, is only worth the price of a cheap package deal to Tenerife.
The glass half full response is very different. Scots are pragmatic as well as proud. We value our distinctive identity. We are not so in love with Britishness as Michael Moore and David Mundell insist. We like the idea of Scotland doing it for herself, but our confidence has been eroded over the years.
The Social Attitudes Survey found that Scots were much more likely to back independence if incomes remained the same – far more than supported remaining in the UK. But the figure leapt to 60 per cent in support of independence when it was suggested that we might be better off by £500 – a tangible sum for the average family in these troubled times. A flippant response might be to show them the money. When you include our geographical share of North Sea oil revenues, Scotland has been in surplus for four of the past five years – a fiscal position only enjoyed by Norway and Switzerland. The official Government Expenditure and Revenue Statistics (GERS) show that Scotland pays 9.4 per cent of UK tax with 8.4 per cent of the UK’s population. This amounts to £1,000 extra for every man, woman and child in Scotland. An independent Scotland would be the sixth-richest nation in the OECD, while the UK currently languishes at 16.
But you cannot underestimate the challenge convincing ordinary folk that these stats will have an impact on their own lives. But say you translate it into an offer of £500, perhaps paid on St Andrew’s Day in time for Christmas? I hear cries of foul from the unionist camp. Squeals of bribes to break up the Union.
It’s not quite as outrageous, or wacky, as it sounds, however. The oil-rich US state of Alaska gives every citizen an annual dividend from its oil fund. This year each received a cheque for $1,174 (about £750) – it has been more and less than that since payouts began 30 years ago. You get the sum for every person in the household, which must be a disincentive to family planning – just look at Sarah Palin’s brood – but as this is the largest and least populated state in the union, baby booms are not a problem.
Alaska doesn’t claw the dividend back in hidden ways – there is no state income tax or sales tax. The fund has grown from $734,000 when it was created in 1977 to approximately $38 billion in October 2011. It’s not as big as Norway’s whopping $525bn, the largest in the world and accounting for 1 per cent of global equity.
The Norwegians do not pay dividends and still tax their population, as such its people can look forward to generous pensions while the rest of the West work into their dotage.
Alaska’s fund sprang from a cynicism about politicians. There was a feeling that the state had squandered money from licensing the oilfields in the Sixties. Giving the same dividend to every individual, regardless of their wealth, might not seem progressive. But the poorer you are, the greater proportion of your income you get back; it’s a poll tax in reverse. Those who are already well off are encouraged to give part of their bonus to charity, and social enterprises have flourished in Alaska as a consequence.
Whether such a scheme would have the same appeal here remains to be seen. You could argue that Scotland is less of a buccaneering society than Alaska – we look at Mrs Palin astride her bearskin rug and shudder.
Most of us would acknowledge the importance of balance – quality public services are essential. However, as the council tax freeze, abolition of tuition fees and free prescriptions demonstrates, Scottish voters also like it when politicians give them control of their own money. For decades we were told what was good for us by a Labourist administrative class. It was paternalistic, bureaucratic and often wasteful.
Certainly, we want a fairer distribution of national resources – and the news yesterday that the UK is one of the most unequal countries in the OECD just gives us another reason not to love the current constitutional settlement.
But while we value the collective, Scots are more individualistic than modern stereotypes suggest. Our record in scientific and technological discovery proves that. Our willingness to migrate, our mercantile and industrial successes of the Victorian era show a people with initiative.
An Alaskan-style windfall might stimulate these innate, entrepreneurial characteristics. We wouldn’t just flock to the shops, no matter how bad the retail sales figures are. The dividend could be used to start new businesses. After all, it looks as if liquidity will get worse if the eurozone implodes and further hurts bank lending.
I should emphasise that I offer up this idea in my capacity as a commentator, not a political representative. To my knowledge the Alaskan dividend has never been discussed inside the SNP. The party is focused on the Norwegian fund, which so shamefully exposes the way Scotland’s resources have been squandered by London.
But while the moral and economic case for emulating the Norwegians is strong, perhaps we can also draw some inspiration from the other end of the Arctic Circle.
As Chrissie Hynde once sang so seductively, there’s nothing quite like brass in pocket.
• Joan McAlpine is an SNP MSP for the south of Scotland
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Comments
There are 30 comments to this article
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pressure
Thursday, December 8, 2011 at 01:48 PMkind of misses the point that alaska is proud part of a union
Ron Greer
Wednesday, December 7, 2011 at 07:35 PMCaadfael Well fair enough, we could put that money into the pot and all the monies spent on administrating this part of the whole chaotic clanjamfray and all the other chaotic duplicative morass of benefits and give people a Senior Citizens Income sufficient not to need a winter fuel payment in the first place.
Caadfael
Wednesday, December 7, 2011 at 04:12 PM@ Ron and Norway, a good place to start would be to enlarge and enhance the Winter Fuel Allowance which North British Brown the Clown stole! That would mean the poor and the old could both heat AND eat!
Ron Greer
Wednesday, December 7, 2011 at 02:21 PM26 Norwaywalker. Aye, I 've done quite a a bit of travelling in Norway over the last 40 years. Inspiring isn't it? Especially that section between Egersund and Bergen with all the geo-climatic and topographical similarities to the Highlands, but with all the socio-economic outcomes being so different because of independence outwith the EU. Anyway back to the issue we have both commented on. The concept of a universal non means tested Citizens Income would embrace just about all you suggest. It should go directly into individual bank accounts thus doing two jobs at the one time. Those rich enough not to need it for subsistence could agree to leave it in limited access accounts with encouraging rates of interest. Those who do need it for subsistence would have more disposable income, the spending of which would stimulate the economy and create jobs through increased demand. The whole ennervating depressing process of the benefit application and indeed the whole dole culture would simply vanish.
norwaywalker
Wednesday, December 7, 2011 at 10:42 AMWestminster's method of reducing the UK's debt is so-called quatitative easing (QE) - which means "creating" money, so causing inflation so the debts can be paid back in deflated currency. That seems to be what we need to do. However, the present government gives that money directly to the banks where it is used for more gambling on the bond and currency markets, instead of being lent to small businesses to create real wealth and try to grow our way out of the crisis.------------------------------------------------------------------------------ A much better way of distributing the money might be to give it to the people as increased social security payments, pensions etc. Giving money to relatively poor people means that it will be put into circulation relatively rapidly instead of being squirreled away by the people who caused the crisis in the first place.
Ron Greer
Wednesday, December 7, 2011 at 09:18 AMAs an ex SNP member( now in the SDA) who has stayed in Alaska and had friends and colleagues staying with me in Scotland, over the years, I retain a certain empathy with Joan Mc Alpine's views on this. The principle of a citizen's dividend from a country's resources is an important one to consider. Infact the potential is so great, we should expand the potential to embrace a universal Citizens Income. This CI should replace all the main examples of the exercise of untying the Gordian Knot in the darkness of a Minoan Labyrinth using the inanities of a Byzantine administration: by this I mean all the main elements of the current benefits system, including the State Pension and JSA. The Unionist nay and doomsayers are already frothing at the mouth on reading this and are spitting venom and bile about 'affordability' ---well aren't you. Right then spit it out and I ll deal with you in the next post!
Maurice the Dolphin
Tuesday, December 6, 2011 at 03:35 PMAlaska? Can Joan McAlpine see Russia from there?
Harry Palmer
Tuesday, December 6, 2011 at 02:06 PMHaymaker are you not the little Cybernat or what! I make a reasonable argument and you bite back by calling me names. Ian Gray (wrong about most things) was at least right about you cybernats. You are bullies aint you? You could not bully me anyway. Go and get 4 of your cybernat pals come back and then it will be a fair fight. Heinz please do not insult Ms Sturgeon. I am not interested in ersonnel insults just reasonable debate. If you stick to reasonable debate the Nats lose every time
Heinz Doofensmirtz
Tuesday, December 6, 2011 at 01:20 PM19 The Haymaker ==================================================== You are not a million miles away. ==================================================== The provision of health and social support is being decimated by central scottish authority using tick box evaluations that give short term successes based upon the lies of self interest groups such as community health partnerships and frightened service delivery partners who provide fabricated evidence and outcomes for people which have no basis in reality.
Heinz Doofensmirtz
Tuesday, December 6, 2011 at 01:16 PM16 Harry Palmer ==================================================== Let's not forget dwarf assassin Nicola Turgid is announcing the scottish governments insidious destruction of all local authority social work services to add to removing education, police and local tax raising away from the democratically elected regions next week. ==================================================== We have not seen a centralised power grab and destruction of local democracy since Thatcher.
Heinz Doofensmirtz
Tuesday, December 6, 2011 at 01:11 PM"Scots are more individualistic than modern stereotypes suggest" ==================================================== I thought there was no new low of stupidity this writer could sink to...I was wrong. ==================================================== How can a mass of humanity be labelled as individuals. ==================================================== Brian: Please, please, please listen! I've got one or two things to say.................................................................................................... The Crowd: Tell us! Tell us both of them!......................................... Brian: Look, you've got it all wrong! You don't NEED to follow ME, You don't NEED to follow ANYBODY! You've got to think for your.. selves! You're ALL individuals!......................................................... The Crowd: Yes! We're all individuals!............................................. Brian: You're all different!................................................................. The Crowd: Yes, we ARE all different!............................................. Man in crowd: I'm not....................................................................... The Crowd: Sch! ================================================== So the new party message from Salmond's Office of Public Information is that we are all individuals....thanks for that.
The Haymaker
Tuesday, December 6, 2011 at 12:40 PM17 Harry Palmer You forgot to add that Alex Salmond will personally kill and remove the heart of the eldest child of each family in Scotland when we become independent. What an erse. Are you George Foulkes?
Mercutio
Tuesday, December 6, 2011 at 12:31 PM"Bye, bye England? SNP plans closer Scandinavian ties after independence"---------------------------------------------------------------- Article in the Independent yesterday by old Scotsman favourite Hamish Macdonnell attracts over 2000 comments.
Harry Palmer
Tuesday, December 6, 2011 at 11:10 AMOne good reason for us to stay in the UK. Scotland contriubutes around 8.5 Billion per annum to the National Insurance pot. We get back from that poy over 12.5 Billion. With an ageing population that is very good and very needed!
Harry Palmer
Tuesday, December 6, 2011 at 11:05 AMThe SNP are the party of false economies! Free prescription's Brilliant we saved and have more control of a Fiver! Never mind that we have had a cut in the number of short stay beds in hospitals in Scotland and a cut in the number of Nurses in NHS Scotland since 2009. Never mind we have a Fiver! Which we will need for new tyres and a new suspension for the car because the SNP Council Tax has given us roads with pothols six inches deep in partsof Edinburgh. Thank God tyres and new suspension for the car are really cheap in fact more than covered by the pound a week I'm saving on the Council Tax. The SNP look after us so well! Except the hundreds of Kids who now can't get into local community colleges becuase of the SNP false economy tax freezes! Oh say cant' you ECK..........
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