Scottish Independence: Uncertainty ‘harmful to Scotland plc’

BUSINESS leaders have called for an end to the uncertainty surrounding the independence referendum, warning that a prolonged “hiatus” hanging over Scotland’s future will be unhelpful to firms as they plan for growth.

In a series of responses to the UK government’s consultation on the proposed 2014 vote, published yesterday, senior business figures repeated calls to ensure both the terms of the referendum and the vote itself are clarified as quickly as possible.

It comes in the week that Prime Minister David Cameron confirmed he is content to stick by the SNP Government’s preferred plan of the autumn of 2014 referendum, more than two years away.

In its submission, the FTSE 100 company Weir Group said that “an environment where uncertainty exists may delay or alter important business decisions, potentially damaging the competitive position of Scottish businesses”.

The company said that, in order to ensure certainty, the UK and Scottish governments should agree “as soon as possible” on making the referendum legally binding, and that the vote itself should take place “as soon as is practical”.

The engineering giant also said it supported both governments’ preference for a single question on independence.

Other submissions, however, said there could be a second question asking people whether they wanted to devolve more powers to Edinburgh.

Weir’s call for clarity was supported by other submissions, published yesterday.

The Aberdeen and Grampian Chamber of Commerce urged both governments to achieve an agreement “as soon as practical”. The huge oil exploration body Total E&P UK group said that any changes to Scotland’s fiscal and regulatory regime “does of course have an influence on our evaluation process.”

It added: “The uncertainty over what those changes could, potentially be and when they might come into force is best avoided and extending that period of uncertainty over several years is not particularly helpful.”

Ice-cream maker Maitland Mackie said: “There is a developing debilitating hiatus in decision taking in most sectors of our Scottish (and global) society, both at the collective organisational and personal level.”

The calls follow a submission by Scottish and Southern Energy, published earlier this year, which warned there was now “additional uncertainty” about the country’s future.

This, it said, “represents increased risk” which the company will now be taking into account “in making financial investment decisions”.

UK ministers last night stepped up calls, based on the responses, to ensure that the referendum asks a simple in-out question on independence.

First Minister Alex Salmond has said this is his “preference”, but has left open the possibility of having a question on devo-max, if public opinion suggests there is demand for it.

The Secretary of State for Scotland Michael Moore said last night: “Both governments can take satisfaction from the quality of the arguments supporting our shared preference for a single question.

“A range of business leaders, academics and members of the public make a very persuasive case for asking one clear question.”

He added: “I have indicated that the timing of the referendum should not be a barrier to us agreeing the referendum process and moving on to the real debate.

“I hope the First Minister will agree that we should get on with sorting this.”

His comments come a day after Mr Cameron said he too was content to keep to the SNP Government’s preferred timetable of a vote in 2014.

Academics responding to the UK government’s consultation said that to avoid any legal doubt over the referendum, Westminster should pass a “Section 30” order giving Holyrood the power to hold a legally binding referendum.

But agreement over the referendum now hinges on whether both sides can agree on the key issue about whether one or two questions should be asked.

The two governments also disagree over whether 16- and 17-year-olds should be allowed to take part. Opinion in the UK government’s own consultation responses appeared split.

A Scottish Government spokesman said last night: “We have regular discussions with the UK government and have always said we have no objection to Westminster extending a ‘Section 30’ power to the Scottish Parliament in relation to the referendum – but it must be on the basis of no strings being attached.

“We are now proceeding with our referendum consultation being independently analysed, and will publish by the end of the summer,” he added.