Scotland 'at a crossroads for the future'

Published on Monday 30 November 2009 21:55

SCOTLAND is at a crossroads and must choose between one of four possible futures, Alex Salmond declared yesterday, as he laid out why he believes independence is the direction it should take.

In a 176-page white paper entitled Your Scotland, Your Voice, the SNP government published its case, arguing that a fully independent country, with the Queen as head of state, would be best placed to ensure the future prosperity and development of the country.

At the same time, it acknowledged the spread of views in Scotland over the country's constitutional future, and laid out no less than three other possible options – the status quo, a more powerful Scottish Parliament, and quasi- independence – or "Devo-Max".

In a nod to the party leadership's gradualist stance – which has seen the SNP seek to slowly move the argument for secession onwards – the paper concluded that while a more powerful parliament would be better, and quasi-independence better still, only independence would deliver the full range of powers necessary to boost the country.

The only option that the white paper conclusively dismissed as inadequate was the current devolved settlement, now into its 11th year of operation.

However, the means by which the Scottish Government attains public support for more powers, or independence, is left unanswered, with the white paper declaring only that a referendum bill would be brought forward in the early part of next year.

Labour, the Conservatives and the Liberal Democrats have all said that they will vote the bill down when it does so.

In the light of this, the white paper claims that a "multi-option" referendum – in which voters would be asked to choose between the status quo, independence and a more powerful parliament – "might be more likely to command the support" of the other parties in Holyrood.

However, it then goes on to acknowledge that "there is a problem in deciding what the other option should be". As a result, the Scottish Government says that it will give Labour, the Lib Dems and the Tories the chance to bring forward their own definition of "more powers", which it will then consider putting in a subsequent referendum.

However, the entire exercise appears doomed to failure as none of the opposition parties will agree to any formulation prior to the 2011 Holyrood elections.

The white paper begins by quoting Irish nationalist leader Charles Parnell. In his foreword, Mr Salmond argues that the current arrangements under which the Scottish Parliament is run "do not meet the ambitions of our nation". He goes on: "Ten years on from devolution, almost all agree that it is time to expand the responsibilities of our parliament."

He concludes: "I believe it is time that Scotland reclaimed its place among the nations of Europe and the world. Other people have different views. It is now time for the voice of the people to be heard, in the referendum on Scotland's future we intend to hold in November 2010."

The white paper does offer fresh insight into the SNP's idea of "Devo-Max", which it may fall back on to if Scots vote against independence in a referendum.

Under such a system, the Scottish Parliament would have complete autonomy over all taxation and benefits, while remaining part of the United Kingdom.

The white paper shows that the SNP envisages the Scottish Parliament having a say on any future occasion a UK prime minister decides to go to war. It argues that the Scottish, Welsh and Northern Irish parliaments should be consulted prior to the commitment of troops.

It also argues that, as a more powerful government, it could be given the right to represent the UK abroad under certain circumstances. However, one notable omission is that the white paper does not argue the case for such a strengthened Scottish Parliament to take over control of abortion legislation from Westminster.

OPTION ONE: INDEPENDENCE

ECONOMY

Ministers would have power over all monetary and fiscal levers. If the country joined the euro, however, interest rates would be set in Brussels. Ministers could borrow cash on international markets, although Scotland's credit rating would have to be first adjudged.

TAXATION

Almost the same as the fiscal autonomy model in that the Scottish Government would be responsible for the setting and collection of all taxes.

DEFENCE

Scotland would form its own army, navy and air force. The SNP favours the country staying out of Nato, and would also want the UK's nuclear deterrent to be removed from the Clyde. The SNP envisages Scotland sharing training, basing and procurement with the UK, although such an arrangement is disputed by the UK government.

FOREIGN AFFAIRS

The SNP argues it would have automatic membership of the EU and would, once becoming a full member, increase its number of MEPs. The newly formed country would also join the UN and the WTO. It was also establish its own diplomatic service.

HEALTH AND EDUCATION

Scotland would have full control over those areas which are still reserved; for example, abortion, embryology, drug classification, and genetics. On education, the SNP says that independence would allow the State to marry education services with the benefit system, simplifying matters for parents.

ENERGY

SNP says it would be able to mould European energy policy by being at the top table of EU nations, as an oil producing nation. An independent country would also have control over energy market regulation.

LAW AND ORDER

Most of the justice system is already independent, but a few areas would come north; drug legislation – including the question of classification – would be controlled by Edinburgh. All firearms laws would pass to Scotland.

ENVIRONMENT

The SNP says independence would give it power to lobby the EU for a replacement of the Common Fisheries Policy, blamed for the controversial quota system. The Scottish Government would also represent the country at international talks on climate change, currently carried out by Westminster.

OPTION TWO: CALMAN

ECONOMY

Little change. One new power would be the authority to borrow money from the UK government for major capital projects, such as the new Forth road bridge.

TAXATION

MSPs would be responsible for about 20 per cent of all taxes raised in Scotland. Holyrood would have the power to set 10p of income tax, with the block grant reduced to compensate. MSPs would also have control over air passenger duty, landfill tax, stamp duty and aggregates levy. This is in addition to their current power to set business rates and the council tax.

HEALTH AND EDUCATION

A few minor changes in areas where Scotland is nearly independent already. Regulations on health professions would pass back to Westminster, and UK authorities should take more heed of Scottish authorities over children of asylum seekers.

ENERGY

Backs the status quo, in particular over North Sea oil revenues, which would continue to go to the Treasury.

LAW AND ORDER

Edinburgh would get sweeping new powers over drink-drive limits, airgun legislation, the speed limit, and would also gain more control over drug treatment. This could mean a ban on airguns north of the Border soon.

ENVIRONMENT, FISHERIES AND AGRICULTURE

Landfill tax and the tax on quarrying would be devolved, along with more marine conservation powers. Scottish ministers would have more say over the Crown Estate, which manages the inshore sea bed.

DEFENCE

No real change. Ministry of Defence would retain sole responsibility.

FOREIGN AFFAIRS

No real change, but there would be a "presumption" that Scottish ministers would have a say on any foreign affairs issue that directly impacted on their own devolved areas – fisheries is an obvious example.

WELFARE

Limited change, with some small welfare funds devolved to Holyrood.

BROADCASTING, SPORT AND CULTURE

Little change, but Scottish ministers would have the power to appoint a Scottish member for the BBC Trust.

OPTION THREE: DEVO-MAX

ECONOMY

Feasibly, reserved powers on employment law, financial regulation and social security could be devolved, says the SNP, handing ministers more levers to influence the economy.

TAXATION

Control of all taxes would be passed to Scotland, with a new Scottish exchequer responsible for collecting and spending the money it received, with no more block grant allocated by the Treasury.

DEFENCE

The SNP suggests that, under such a system, it should have more of a role in decisions over closing and opening military bases and be consulted before the UK goes to war.

FOREIGN AFFAIRS

The SNP claims a devo-max model would mean Scotland would have a stronger international presence – for example, by attending the EU Council of Ministers. Where Scottish interests predominate, it could speak for the UK, the SNP government argues.

HEALTH AND EDUCATION

The SNP claims that if it had more tax and regulation powers, it could do more to tackle Scotland's underlying problems by, for example, increasing the price of alcohol. There would be no changes on education under devo-max.

ENERGY

The SNP says that, under fiscal autonomy, North Sea oil funds would be devolved. Petroleum taxes would fall under the control of Edinburgh ministers. Levies and regulations on renewable energy and technology could be devolved.

ENVIRONMENT

The Scottish Government says the biggest change would be to hand over fisheries management to Edinburgh, so Scottish ministers negotiate with Europe on quotas directly. The SNP also says more tax powers would allow it to offer tax relief to rural firms.

WELFARE

All welfare payments would transfer to Holyrood. Benefits and social security rates would then be levied by MSPs.

CONSTITUTION

The SNP says that, under devo-max, Holyrood would be the principle voice of the Scottish people. The Scottish Civil Service would also be removed from the UK set-up.