This item was published during the term of a previous administration that ended in April 2007
Listen
Debate on financial powers of Parliament
04/12/2003
The great instability and upheaval caused by the
uncertainty of financial independence would be a
constitutional gamble too far, Finance and Public Services
Minister Andy Kerr said today in advance of a debate on the
financial powers of the Scottish Parliament.
He continued:
"The stability of Devolution and the solid foundations
put in place by the UK Government have seen investment in
public services increase sharply since 1999.
"This has led to more teachers, doctors, nurses, new and
improved schools and hospitals, and unprecedented
investment in vital transport links.
"Financial independence or fiscal autonomy, however,
would cut Scotland adrift from the rest of the UK and
destabilise the sound macro-economic environment Scots
families enjoy. Economic growth would be at risk with
businesses faced with different fiscal arrangements from
their main trading partner and reduced investment in skills
and transport.
"There is absolutely no doubt Scotland benefits greatly
from the stability and transparency of Devolution. We are
part of a strong and stable UK economy and we receive
additional money from the UK Treasury in recognition of the
particular problems faced in Scotland, like our poor health
and the higher costs of transport in our rural
communities.
"The cost of cutting us adrift from the rest of the UK
would be immense. It would mean drastic cuts in crucial
public services - less money invested in communities across
Scotland. It would be a constitutional gamble too far and
would cause untold chaos, upheaval and uncertainty.
"The people of Scotland who promote financial
independence are misleading businesses and the public. They
never say exactly would change and by how much. Who pays?
How would the books be balanced?
"Financial independence and fiscal autonomy claim to be
all things to all people - a panacea for all challenges. In
reality, going it alone would cause massive risk,
uncertainty and upheaval.
"That is not what the people of Scotland want or need.
It would deprive Scottish businesses of the stable
financial foundations provided by the common UK fiscal
regime we enjoy at the moment and it would deny the people
of Scotland the excellent public services and strong
communities they deserve."