'We don't need two referendums' says Lord Steel

Published on Sunday 12 June 2011 18:56

FORMER Holyrood Presiding Officer Lord Steel has waded into the row between Westminster and Holyrood and said it would be "far better" to have only one referendum on Scottish independence.

The former Liberal leader and Lib Dem peer said having two votes on separatism was "unnecessary", after party colleague and Scottish Secretary Michael Moore said the electorate would need to vote in two referendums before Scotland could become independent.

Lord Steel also accused the SNP government of using "megaphone diplomacy" to target political opponents such as Mr Moore.

He said: "Technically, Michael Moore was correct, but it would be far better if we just had one referendum, with co-operation between the UK and Scottish governments.

"It would all be far better if the Scottish Government agreed with the UK government about what the questions being put will say.

"The Scottish Government reaction seems to be going in the direction of megaphone diplomacy, which is not the way to run government."

Finance secretary John Swinney welcomed Lord Steel's comments on the referendum question as "enormously helpful" and warned the UK government not to attempt to block the plebiscite plan.

He said: "The point on the referendum it that it has to flow from what the Prime Minister said, that the Scottish Government is free to get on with the referendum and that he will put no obstacle in the way."

Earlier, Prime Minister David Cameron warned Mr Salmond his planned independence referendum could face a legal challenge unless he co-operated with the UK government on the wording.

Mr Cameron is said to have told the SNP leader that he would not have a "blank cheque" in drafting the referendum wording.

Meanwhile, the Scottish Parliament is to be handed new powers to borrow money from the finance markets, in a move to be unveiled by the UK government today. It will enable the Scottish Government to sell bonds to raise cash for major building and infrastructure projects.

A statement is to be made to MPs on a series of changes to the Scotland Bill. These will include new powers to Holyrood to manage tax, and the bringing forward of up to 200 million this year for the new Forth road bridge.

However, the UK government is not giving in to Alex Salmond's demands to devolve corporation tax, excise duty and Crown Estate property.

SNP MSP John Wilson described the expected changes to the Scotland Bill as "extremely disappointing".

He said "Clearly, UK ministers are not listening to the Scottish Government and voters here about how best to take the Scotland Bill forward. It's extremely disappointing that the powers as outlined by Alex Salmond have not been granted."

However, a UK government source dismissed claims it was "not listening" and said changes to the Scotland Bill would strengthen Holyrood.

The source added: "The additional powers will strengthen the flexibility and accountability of Scottish ministers in addition to the already significant elements such as Scottish income tax contained in the Scotland Bill.

"The UK government is both listening and acting in improving devolution."