Discrediting Unionist propaganda

Your report, “Come clean on independent Scotland’s credit rating, SNP is urged” (7 February), in which Johann Lamont and others are badgering the Scottish Government to address reports that credit agencies may downgrade an independent Scotland’s rating, is a further example of the agitation of the Unionist establishment to seek immediate answers to questions which cannot be answered definitively.

One could turn the question around and ask Ms Lamont and her Tory and Liberal Democrat friends what is to stop the credit agencies from downgrading the UK at any time.

Since she is on record as accepting a vote for independence, one could pose the question to her: what would a government led by her in an independent Scotland do to impress credit agencies against downgrading?

The transition to independence from the referendum result will be but a moment in time in the great scheme of things.

How well that transition is managed will dictate initial international responses and attitudes. These reactions will equally affect Scotland and the rump of the UK. It is in both their interests to act reasonably.

Once the dust settles, it will be the ability of future Scottish Governments of different political hues that will determine our economic standing. This is no different to any other country.

Is it not time that the press started to challenge the Unionists who have declared their acceptance of a vote for independence as to what type of constitution they would seek and what policies they would pursue once we are independent?

If they don’t start engaging in these issues now, how do they hope to influence events as the dynamic of independence gathers pace?

Graeme McCormick

Arden

By Loch Lomond

Far too much is being made of the hypothetical question of an independent Scotland’s credit rating. Today only 13 countries have the highest credit rating, and quite a few of those are under threat.

It’s ludicrous for the SNP to claim that Scotland could join this elite group, and disturbing that our government is so defensive that it can’t accept this.

It should point out that there’s nothing wrong with being in the same company as Austria, France and the United States, and in any case a credit rating is far from being the be-all and end-all of even the economic aspects of the independence argument, which ought to be about much more besides.

Andrew Anderson

Granton Road

Edinburgh

Your leader (7 February) on Scotland’s credit rating illustrates a serious point about Scottish self-government, namely the credibility of Scotland in economic terms.

It does not mention an important point and that is: what is going to happen to the credit rating of a Westminster government that is not reducing debt and has no growth? Could it lose its AAA rating? Staying in the Union could have Scotland dragged down by the irresponsible policies of Westminster.

Looking at other countries in Europe and elsewhere does not give a guide to Scotland’s rating. Norway, Finland, Denmark, the Republic of Ireland and Singapore are of similar population size and widely different economic conditions.

However, they do show a country of Scotland’s stature can exist in today’s world. Bigger countries such as Greece and Italy are heading through the floor.

The Scottish Government can alleviate this situation by laying out its plans for growth, stimulating the economy and its borrowing policy.

The crazy borrowing of the Westminster government from 2001 until 2010 (and continuing) has left a debt mountain, some of which would be transferred to the Scottish Government but could be offset by the value of the retention by Westminster of presently shared resources such as Trident and much of the rest of UK defence equipment.

The asset value of Scottish oil stocks placed against the debt should reassure the lending organisations.

The real bottom line would be that the Scottish Government needs a borrowing policy that keeps borrowing only for essential revenue-generating capital projects and holds borrowing to a very small part of GDP with repayment easily covered by income.

That sort of stability would attract better ratings because lenders are not influenced by party politics but by returns.

If Scotland can build a stable economy based on growth, innovation, manufacturing and the development of our renewable natural resources and backed by our present oil assets but planned to compensate for their gradual decline, then lenders are going to base their rates on realism rather than rhetoric.

Bruce D Skivington

Strath

Gairloch, Wester Ross