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Council of Economic Advisers
03/10/2008
The Council of Economic Advisers (CEA) has given its support to the Scottish Government-led alliance's efforts to maximise the benefit of the proposed Lloyds TSB/HBOS merger and minimise any potential negative impacts on Scotland.
At their fourth meeting, held today at Dumfries House in Ayrshire, the CEA issued a joint statement:
"The Council of Economic Advisers recognises that the proposed take-over of HBOS by Lloyds TSB has the potential to have a significant impact on the Scottish economy.
"The Bank of Scotland represents well over 300 years of banking history. It is an iconic brand, a cornerstone of the Scottish financial sector and a major contributor to the wider social and economic wellbeing of the nation.
"The Council therefore supports the alliance that is being led by the Scottish Government - and that is supported by the other political parties, the business community, trade unions and civic groups - to maximise the benefit of the merger and minimise any potential negative impacts to Scotland.
"The Council acknowledges the significant strength of the financial services sector in Scotland and the compelling business and competitive arguments to locate key decision-making elements of the merged organisation in Scotland.
"The objectives of the Scottish Government-led alliance were set out in Parliament by the First Minister on September 24. They include:
- maximising jobs in Scotland
- maximising decision-making functions
- mitigating and managing any potential adverse impacts on the Scottish economy and society
- protecting Scotland's leading position in financial services
"The Council recognises the importance of meeting each of these objectives, of promoting Scotland's economic interests through this period of uncertainty and of recognising Scotland's strengths and clear areas of comparative advantage.
"The Council supports the Government-led Scottish business case that has been put to the Lloyds TSB and HBOS negotiating teams, and works toward getting the best possible outcome for Scotland."