Letter: Scotland's future deserves more respect

The attempt by David McLetchie (Letters, 24 January) once again to misrepresent our position and discredit our research is as misguided as it is predictable. It is a smoke-screen to distract attention from the real matter in hand - namely scrutiny of the deeply flawed financial provisions of the Scotland Bill.

Nowhere in our paper do we make the assertion that fiscal decentralisation will, per se, improve the underlying rate of growth of the economy.

We do claim that fiscal decentralisation can be expected to improve economic performance. We have consistently made this point throughout and most economists support this contention.

An analogy might help Mr McLetchie grasp the distinction at the core of his confusion. An increase in GDP can be compared to a performance bonus.

Your earnings have grown, but the underlying growth rate in your salary (the "rate of growth" of the economy) remains the same.

Of course, if you keep on getting bonuses because you are consistently performing better your earnings will continue to rise at a faster rate. But this is not guaranteed.

We urge Mr McLetchie and his colleagues on the Scotland Bill Committee now to bring to an end their fixation on fiscal autonomy and instead turn to the issue in hand which is scrutinising the economic implications of the Scotland Bill.

We appeal to them to read our evidence, and that from other experts, with an open mind. If they do so then we are certain they will recognise the deep flaws in the proposed legislation and hopefully take steps to rectify these.

We can assure Mr McLetchie that the only "hole" we are concerned about is that into which the Scottish economy is likely to plummet if the provisions of this bill become law.

(Prof) Andrew Hughes Hallett

University of St Andrews and George Mason University

Washington

(Prof) Drew Scott

University of Edinburgh

Edinburgh