Scottish independence referendum: Vote wrangle may hurt economy, says CBI chief

BUSINESS leaders say the independence referendum should be held early next year, warning that a continuing constitutional row could undermine efforts to kick-start the ailing economy.

First Minister Alex Salmond’s plan to keep the pound after independence, with interest rates controlled by London, could also damage Scotland, according to CBI Scotland director Iain McMillan.

CBI chiefs met Scottish Secretary Michael Moore in Edinburgh yesterday, as part of the UK government’s consultation on an independence referendum.

Afterwards, Mr McMillan said industry chiefs wanted a speedy vote. “The referendum should be held sooner rather than later,” he said.

“We’re fairly clear in our own minds that we live in very difficult economic circumstances at the moment. We see some firms closing down, we see people losing their jobs.

“We need our politicians from all our parties, from both jurisdictions, to focus their entire attention on getting people back to work and getting our economy back in good shape.

“If, increasingly, the politically debate is directed towards the referendum, then attention is not going to be directed to where it needs to be put.”

Mr McMillan said a Section 30 order, whereby Westminster allows Holyrood to legislate on the reserved issue, could be passed by both parliaments in London and Edinburgh “quite quickly”, allowing the Scottish Government to stage a legally binding vote.

“You would be looking at autumn this year as the earliest point at which legislation could be on the statute book for a referendum,” he said.

“It might be then into the spring of 2013, and I think business would be content with that, but if there’s a way of fast-tracking it – we don’t know if there will be or not – then that would be even better. Let’s get this question answered.”

But a spokesman for finance secretary John Swinney insisted the SNP government would stick to its promise to hold the referendum in the second half of this parliament.

“We will keep our election promise with the people of Scotland and hold the referendum in autumn 2014 – a timetable that industry leaders have indicated causes business no problems whatsoever,” he said.

Mr McMillan also warned that SNP plans to keep the pound after independence would put Scotland at a disadvantage, with monetary policy effectively being set by a foreign government.

He said: “Bear in mind, we’re seeing right across the eurozone at the moment the difficulties that arise to countries that are in the currency union, but not in fiscal union.

“This would be difficult for Scotland. We would be stuck with that fiscal policy and have to take full account of that. That is not fiscal autonomy.”