Monetary control can’t rest with London

In HIS interview on Radio Scotland on Friday, John Swinney, finance secretary in the SNP government, reiterated that, in the event of Scots rejecting membership of the euro, his administration would retain the pound sterling on a permanent basis.

When asked: “What kind of independence is that?” Mr Swinney claimed that control of taxes would give Scotland the independence to determine the levels of government spending and that we would not be tied to the spending policies of a Westminster government.

Thus, 70 years of SNP economic policy has just been tossed aside, not because the policy was wrong, but because the SNP no longer seeks independence.

If it is a fact – and it is – that London control of monetary policy and interest rates has frequently been the cause of Scotland’s poor growth rates relative to the rest of the United Kingdom, that London’s control of monetary policy has generally been to Scotland’s disadvantage, what has changed that suddenly makes acceptable London control of one of the major levers of Scotland’s economy?

The contradictions in Scottish National Party policy are now being laid bare, just at a time when clarity should be preparing Scots to vote for independence.

It is now admitted, even by the euro fantasists who have been denying it for years, that the currency union of the euro cannot work without central control of taxation.

But the SNP now argues that those who control the currency union of the pound sterling – the Westminster government – should agree to Scottish control of Scottish taxes, thereby creating the potential for the kind of chaos we are witnessing in the eurozone. Aye, in your dreams.

If Scotland agrees London should control Scotland’s monetary policy, interest rates will continue to be set to address England’s, not Scotland’s, economic problems. If interest rates are set too low for Scotland’s economic situation, taxes will have to be set accordingly in order to avoid inflationary pressure – witness Ireland’s entry to the euro.

If interest rates are too high, taxes will again have to be set accordingly in order to avoid restricting economic growth – witness years of Scotland’s economic history.

When finance secretary John Swinney was asked: “What kind of independence is that?” an honest answer would have been: “It isn’t independence.”

Jim Fairlie

Heathcote Road

Crieff

Maria Fyfe asking the SNP to describe exactly what they propose with “independence” (Letters, 21 October), is akin to asking a Labour MP (which she once was) to explain exactly what they propose by “socialism”.

In the first case, the SNP believes in it; in the second case, Labour deserted socialism in the 1990s under Blair and Brown. If in doubt, ask any trade union leader.

Douglas R Mayer

Thomson Crescent

Currie, Midlothian

I WAS surprised to read that so many people seem unaware of what independence means.

For the sake of those who seem unable to grasp the concept of sovereignty and independence, perhaps I should try to explain it. Sovereignty and independence mean that a government has total control over the internal and external affairs of that country, subject always to whatever treaties they sign with other bodies and states.

R Mill Irving

Station Road

Gifford, East Lothian

WHAT is the point of any potential second question in any future referendum on Scottish independence?

If we vote for independence then the response to any second question is immaterial. If we do not vote for independence and remain within the UK then any changes to the devolution settlement will require to be negotiated with representatives of all of the countries within the Union.

We cannot both keep the Union and also dictate by fiat our financial settlement within it. In illustration, Angus MacNeil may be correct that 68 per cent of Scots want North Sea oil revenues devolved; however, David Cameron is also correct to point out that a responsible UK government would never agree to that.

Peter Muirhead

Duncrag

Kilmacolm

With the announcement by First Minister Alex Salmond at the start of the SNP conference in Inverness, that “God’s legacy” will help us to independence (your report, 21 October) whatever are the electorate going to be treated to next?

A speech about the divine right of kings maybe?

Neil McKinnon

Glenalmond

Perth