Alex Salmond told SNP plans will ‘damage’ economy

Alex Salmond’s plan to hold a historic referendum on Scottish independence could create a lengthy period of uncertainty over the country’s future and damage the economy, business chiefs have warned.

In comments that will heap pressure on SNP ministers to spell out their intentions on the vote, Linda Urquhart, the chairman of CBI Scotland, told a dinner in Glasgow last night that there was concern among her members over the “possible damage” that could be caused by confusion over the timing, wording and legality of the proposed public poll.

She also called for Mr Salmond to present Scots with a simple “yes or no” question on independence, saying it was vital to ensure that the referendum produced a clear result on the country’s future, so the matter was settled once and for all.

SNP ministers must also co-operate with the UK government to ensure both governments were happy with the format to avoid a potential legal challenge, she added.

The comments provoked an intense political row last night, as SNP MPs accused CBI Scotland of mounting “politicised attacks” against the Nationalist case, and of failing to represent the views of Scottish businesses accurately.

But opposition parties said the comments piled the pressure on Mr Salmond to nail down exactly what question he wanted to put before voters, and when the referendum would take place.

Mr Salmond has so far said only that the poll will take place in the latter half of the parliament, which runs from 2011 to 2016, in keeping with comments he made during the election campaign in April.

He has also floated the idea of having a two-question referendum, saying he had “left open” the possibility that there could be two separate questions: one on independence, and one on fiscal autonomy.

However, he has warned that the definition of what has also been described as “devo-max” would first have to be set out properly.

On the referendum, Mrs Urquhart told CBI Scotland’s annual dinner in Glasgow: “Concern does exist in our membership about the possible damage that could be done to Scotland by the uncertainties arising from this commitment and its timing.

“This is not helpful, but with that timescale committed to, I believe that business will consider it all the more important for any referendum to deliver a clear result.

“Independence: yes or no – and no second questions which might produce an inconclusive result.”

She added: “The legality of any referendum must also be put beyond doubt – the constitution is a reserved matter so the Scottish and UK governments must work together to ensure legal certainty and a decisive result.”

UK ministers have said it is up to the Edinburgh administration to decide on the matter, although they have made it clear they too believe that a single question on independence should be proposed.

UK government sources believe that the second question is being mooted as a “back-stop” by the SNP, with current polls suggesting they will fail to win a majority of support for full independence.

While Mrs Urquhart did not express a view on independence itself, her comments come after CBI Scotland warned this summer that the case to move to a fiscally separate Scotland needed to be beefed up to convince Scottish firms that it would boost economic growth.

It is understood that the concerns about the referendum were raised at CBI Scotland national council meetings after the SNP’s victory in May.

One business source said: “There was considerable concern expressed among council members – we will of course work with whoever won at the election and the political issue isn’t a problem – but there was a great deal of concern because of the uncertainty over the next few years and also on the question of whether we’d get a multi-option referendum.”

CBI Scotland’s intervention suggests that Scotland is set to face a lengthy political row on “the question of the question”.

Last night, there was a furious response from the SNP to Mrs Urquhart’s comments.

SNP MP Stewart Hosie said: “This is not the first time CBI Scotland has blundered into the constitutional debate, and this latest intervention will fuel concerns that the CBI’s leadership has a political rather than a business agenda.

“Given the overwhelming mandate the SNP secured at the recent elections, with broad support from businesses big and small, there must be a question over whether CBI is even speaking for its membership, let alone the wider business community.” He added: “Frankly I’m not surprised that so many prominent businessmen distanced themselves from the organisation, given the politicised attacks we have seen over the years.”

SNP sources pointed to comments by entrepreneur Jim McColl who criticised CBI Scotland director Iain MacMillan in the summer, claiming that the organisation was “not representative of business in Scotland in general”. Mr MacMillan had warned about the consequences of full fiscal autonomy in Scotland.

A Scottish Government spokesman said the referendum would be held along similar lines to the devolution referendum in 1997, which had two questions, one on the creation of the parliament, and one on whether it should have tax-raising power.

He said: “A referendum in Scotland is clearly a matter for the Scottish Parliament and Government, and as promised, we will hold a referendum in the second half of this parliament, giving people the chance to choose their own future.

“The referendum will be run to the highest international standards, meeting the gold standard in terms of transparency and rules.

“We believe that the people of Scotland should have the right to vote in a single referendum agreed by the Scottish Parliament, on a published proposal, which is then implemented – exactly as was done for the two-question devolution referendum in 1997.”

However, opposition parties said SNP ministers must now clarify matters further.

Scottish Labour leader Iain Gray said: “It is ridiculous that Alex Salmond and the SNP can still claim, after four years, that they don’t even know what the question will be. This intervention by the chairman of CBI Scotland underlines that the longer this debate drags on, the greater the uncertainty for business and the potential risk to jobs and investment.”

David McLetchie MSP, the Scottish Conservatives’ constitution spokesman, said: “The SNP government spent four years as a minority government calling for a referendum. Now they have the means to achieve it, and instead they want to delay.

“CBI Scotland is right; we can ill afford years of uncertainty just to fit in with Alex Salmond’s politicking. We want a Scotland which is comfortable with its present and optimistic about its future – we cannot achieve that while the SNP’s separation referendum is dangled in front of us.”