Scottish independence referendum: Vote wrangle may hurt economy, says CBI chief
BUSINESS leaders say the independence referendum should be held early next year, warning that a continuing constitutional row could undermine efforts to kick-start the ailing economy.
First Minister Alex Salmond’s plan to keep the pound after independence, with interest rates controlled by London, could also damage Scotland, according to CBI Scotland director Iain McMillan.
CBI chiefs met Scottish Secretary Michael Moore in Edinburgh yesterday, as part of the UK government’s consultation on an independence referendum.
Afterwards, Mr McMillan said industry chiefs wanted a speedy vote. “The referendum should be held sooner rather than later,” he said.
“We’re fairly clear in our own minds that we live in very difficult economic circumstances at the moment. We see some firms closing down, we see people losing their jobs.
“We need our politicians from all our parties, from both jurisdictions, to focus their entire attention on getting people back to work and getting our economy back in good shape.
“If, increasingly, the politically debate is directed towards the referendum, then attention is not going to be directed to where it needs to be put.”
Mr McMillan said a Section 30 order, whereby Westminster allows Holyrood to legislate on the reserved issue, could be passed by both parliaments in London and Edinburgh “quite quickly”, allowing the Scottish Government to stage a legally binding vote.
“You would be looking at autumn this year as the earliest point at which legislation could be on the statute book for a referendum,” he said.
“It might be then into the spring of 2013, and I think business would be content with that, but if there’s a way of fast-tracking it – we don’t know if there will be or not – then that would be even better. Let’s get this question answered.”
But a spokesman for finance secretary John Swinney insisted the SNP government would stick to its promise to hold the referendum in the second half of this parliament.
“We will keep our election promise with the people of Scotland and hold the referendum in autumn 2014 – a timetable that industry leaders have indicated causes business no problems whatsoever,” he said.
Mr McMillan also warned that SNP plans to keep the pound after independence would put Scotland at a disadvantage, with monetary policy effectively being set by a foreign government.
He said: “Bear in mind, we’re seeing right across the eurozone at the moment the difficulties that arise to countries that are in the currency union, but not in fiscal union.
“This would be difficult for Scotland. We would be stuck with that fiscal policy and have to take full account of that. That is not fiscal autonomy.”
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Comments
There are 16 comments to this article
Page 1 of 2
Finnzz
Tuesday, January 17, 2012 at 05:58 PMMcMillan obviously fails to understand the idiocy of his statement regarding Scotland adopting Sterling. Scotland already uses the pound and Scotland has no influence over interest rates.
brianwci
Tuesday, January 17, 2012 at 03:51 PM#13 douglas-home rule said: "I cannot recall McMillan ever saying one positive thing about Scotland". That was my first thought too Douglas. People in his position are supposed to be talking their country up in order to attract potential new investors but Mr Mac spends all his time re-hashing this negative drivel which of course, the Hootsman is only too delighted to publish verbatim no doubt. VOTE YES.
Biscuit McVittie
Tuesday, January 17, 2012 at 01:41 PMBUSINESS leaders say the independence referendum should be held early next year- no it shouldn’t! It should be held on the anniversary of one of the greatest and most important battles in Scottish history. Of course I’m talking about the 70th anniversary of D-Day on the 6th of June when British armed forces along with their allies began the process of ending fascist rule on the mainland of Europe.
douglas-home rule
Tuesday, January 17, 2012 at 12:45 PMThe Britnats all were against a referendum in their manifestos- so whats your point CATS. I cannot recall McMillan ever saying one positive thing about Scotland.
crazytonic
Tuesday, January 17, 2012 at 12:20 PMI've read (though sadly I can't remember the source, so please forgive me), that the CBI in scotland represents a minority of Scottish businesses. Secondly, Channel four just released a study on business in scotland indicating that far from the prospect of independence and 'indecision' damaging investment north of the border, things have never looked better: http:blogs.channel4.comfactcheckfactcheck-does-scotland-look-bonnie-to-foreign-investors9080 While I'm aware that I am flawed by not providing a source for the CBI membership claim, maybe the CBI should provide evidence of their claims too!
Cats Lockhart
Tuesday, January 17, 2012 at 10:24 AMOh yes, the SNP 'promised' a referendum in the second half of this parliament at the election. Not in its manifesto, it didn't. And we were all supposed to be hanging on every word its people said during the campaign. What a farce.
Broon Bairn
Tuesday, January 17, 2012 at 10:23 AMThis is old parridge re-het. The CBI recently couldn't give an example of ANY company that has been put off by the independence debate in Scotland. On the contrary, there are quite a few firms who've recently invested here. What scaremongering claptrap!
Charlie McFarley
Tuesday, January 17, 2012 at 10:17 AMBit of rapid churnalism from the north british gazette? Same story regurgitated within a few hours. What's sauce for the goose.. more guff from the delusional Iain McMillan, looking like the shocking product of a threesome between Ian Lang, Margaret Thatcher and Liam Fox.
samcoldstream
Tuesday, January 17, 2012 at 09:59 AMWe have been hearing the same mantra for 50 years.
Family guy
Tuesday, January 17, 2012 at 09:02 AMMacMillan, the Daily Re-tard AKA the Mirror exposed your supine vitriol and pash. Now please ,you do NOT represent businesses in Scotland. That has been exposed too.
neoloon
Tuesday, January 17, 2012 at 08:33 AM"Scottish independence referendum: Vote wrangle may hurt economy, says CBI chief " Westminster and its unionist lackeys like the CBI will certainly make it so.
glassbenmhor
Tuesday, January 17, 2012 at 07:48 AMPhssssssssst........Phssssssssssst........Ian,be quiet............there's a goog chap
Auld Twa
Tuesday, January 17, 2012 at 07:27 AMMr McMillan should worry more about the current situation as we are almost on the point of recession in this uniion. Independence would allow the Scottish Government to invest in jobs not yachts.
Hector the Lessor
Tuesday, January 17, 2012 at 06:24 AMCheez with the whole of Europe and the UK going down the tubes they are worried about the result of a vote on Scottish Independence. I reckon I have sussed it out. Alex Salmond is going to give the Independence vote to the Confederation of Scottish Industry, and the rest of the guys are worried. Only kidding.
footdee
Tuesday, January 17, 2012 at 01:01 AMPredictable stuff from Mcmillan and friends------------------lets see whats really happening-------------- "BRITAIN is in line for a £5.5billion tax boom and thousands of new jobs as investors flock to tap new oil fields in the North Sea. -------------- A rise in oil prices to around $100 a barrel has led energy explorers to ramp up investment into drilling for minerals after 10 years of decline in production. -------------------------- Investment in the industry is set to hit an all-time high this year, with developers rushing to benefit from the higher charges which the fuel is currently commanding. Large mineral firms including BP, Total, RWE Dea, BG Group, and GDF Suez have spearheaded the move, spending billions developing seven of the biggest discoveries in UK waters in recent years. ----------------------- There are also several vast untapped reserves due to enter production imminently, including those in the West of Shetlands, Central North Sea and Southern Gas Basin. This revival in drilling for oil in British waters will bring billions of pounds into the beleaguered economy as operators will have to pay tax to the Treasury.
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