Fiscal fears

When two professors of economics (Letters, 27 August) suggest that the Scottish Government be given fiscal powers beyond Calman we must take notice. But quite frankly, their reasoning doesn't stack up.

Their chief objection, that the cost of filling in separate Scottish PAYE forms will "add another layer of red tape and costs" to the Scottish economy, is trifling when compared with the alternative.

If the Scottish Government obtains the kind of fiscal powers many Scottish politicians openly envisage (and the nationalist community craves) then a separate Scottish economy with a separate treasury and separate currency won't be far behind.

In such an event, bankruptcy of a Scottish central bank would damage an autonomous Scottish economy beyond redemption.

Given our recent experience the risk is not to be ignored and the effect of fiscal autonomy on the Irish and Icelandic people is there for all to see.

ROBERT VEITCH

Paisley Drive

Edinburgh