Gilts for all

The Scottish Government is to be granted the power to issue its own bonds (your report, 19 February) but only, it seems, on “international money markets”. Why?

In the past the Bank of England made sales of new gilt issues direct to the public at par. However, for some years now purchases have had to be made through a broker and often, as currently, at a premium. It is surmised that the Scottish Government would have to offer a high rate of interest on its bonds in the money markets.

If, on the other hand, it could sell direct to the public it could offer a lower rate which would still be superior to anything else available to savers.

No doubt bankers etc would complain this was taking the fillet steak out of their children’s mouths and there might well be other more serious drawbacks. Perhaps your expert contributors could comment.

S Beck

Craigleith Drive

Edinburgh