Letter: National conversation on merits of fiscal autonomy

Does he have any grasp of the width and depth of Thomson's work in the context of seeking what could be best suited to our business, social, educational and fiscal policy?

Is he aware of the national conversation that is taking place right now outwith the CBI, but certainly within Scottish business and many of its leaders? A conversation which has established that fiscal responsibility is core to the very essence of rebuilding our shattered economy, modernising our health service, establishing first-class education, modernising Scottish infrastructure, which remains bottom of the European league, tackling our drugs and drink problems, social deprivation and ridding us of the negative psyche that see us linger in a blame culture.

Ben Thomson, as head of think-tank Reform Scotland, is among those who are leading this conversation as we in Scotland progress, become enlightened and informed on the changes we need to make to achieve prominence as a successful self-fulfilled country with a responsible attitude towards its people and the people of other nations. A conversation which recognises that any modern nation must have, before it can be globally successful, a philosophy amid its people that we will make whatever it is we have to do happen by being responsible for ourselves.

The prominence of the CBI in Scotland achieved by Mr McMillan is out of step with our emerging thinking and out of balance with his local membership. Is what we have read by Mr McMillan, then the general view of the CBI?

DAN MACDONALD

Chief executive Macdonald Estates, Shore House, Ferry Road, North Queensferry

Forced to choose between my doctor or my granny's opinion, I've always chosen well-informed advice before well meaning, but badly informed amateurs. Thus it was with great respect I saw CBI Scotland director Iain McMillan ask the question which no one, in or out of the Scottish Parliament, had ever thought of asking. Why does the Scottish Parliament believe the additional powers of the Scotland Bill will improve the Scottish economy when they haven't yet made full use of the extensive powers they already possess?

Their track record is not encouraging - the Scottish Parliament building, unwanted Edinburgh trams, etc, etc. Billions down the tubes. All the evidence is the Scottish economy will get worse if MSPs get more power. So, sparing us the generalisations, what exactly will they do to perform better? And, Calman says we are to ask what will it cost us?

Unlike the average MSP, the CBI understands the glaring truth about the Scottish economy, which is that there's no separate Scottish economy.

It's really quite simple: multinationals employ Scotland's big workforces; big companies provide the jobs.Mess them about and their jobs and their people simply move on. And, spelling it out, small businesses get even smaller, or disappear altogether.

Because he understands this, Mr McMillan's opinion of the Scotland Bill is the one I'd rely on, regardless of what granny thinks.

ROBERT VEITCH

Paisley Drive

Edinburgh

Iain McMillan criticising the SNP for its pro-independence policies, no surprises there then. In his annual review of the performance of the Scottish Government for 2010, was Mr McMillan speaking for the CBI in Scotland, or merely expressing his own political views?

In his review, Mr McMillan and the CBI call for the Scottish Government to allow the private sector to deliver more public services along with the use of public private partnership (PPP) for future major projects.

This is nothing short of economic suicide as previous PPP deals have proven a false economy, costing the tax payer millions (projected to cost 100 million 2011), draining resources from very tight budgets.

Then we go to the delivery of public services at a time when public sector employees are being handed pay cuts and new contracts in newly-established trusts; the CBI proposals would add to unemployment.

CATRIONA C CLARK

Hawthorn Drive

Banknock, Falkirk

Alex Orr expresses his disagreement (Letters, 1 January) with my recent comment in your pages that there is no proven positive correlation between the extent of a country's or sub-state's fiscal powers and its degree of economic success. He states that my comment is economically illiterate.

In support of his alternative view, Mr Orr cites the names of three businessmen and Professors Andrew Hughes Hallett and Drew Scott as also being in favour of full fiscal independence for Scotland. But that is not evidence, it is mere assertion and shows only that some others share his faith in this unproven ideology.

In their publication of last June, Scotland: A New Fiscal Settlement, Hughes Hallett and Scott referred to the limited extent of the available literature on this subject and wrote that "empirical evidence does suggest results that are rather mixed if not controversial".

In 2006, the Steel Commission stated that "the hard evidence on the link between fiscal decentralisation and efficiency and economic growth is hard to come by and can be ambiguous". In oral evidence to the Calman Commission in 2008, Professor Francois Vaillancourt suggested that the empirical literature could be summarised as saying "We don't know."

My comment was well founded. So, perhaps, instead of presenting nothing other than pure doctrine as fact, Mr Orr will in future provide your readers with proper and credible evidence in support of his case.

IAIN M McMILLAN

Director, CBI Scotland

Robertson Street, Glasgow