Scottish Parliament debate: Scottish Parliament (Further Powers)

Linda spoke in the debate on 9 December.

“Back in June I noted that, although Calman mooted further borrowing powers, such powers would be ineffective. As Professors Andrew Hughes Hallett and Drew Scott argued—as have others since—the Calman proposals in that regard would result in financial instability. Because of an overreliance on one taxation stream and an inability to borrow to smooth variations in income, the Scottish Government could be forced to cut costs or raise taxes during a downturn, thus inflicting even more damage on the Scottish economy.

“Jim Murphy’s white paper proposes maintaining Scotland’s current borrowing ability, but his successors would still be the only bankers in town. He talks about a new borrowing power, but it would have to be financed from raising taxes, not from revenue, and the limits would still be set by the Treasury, lumping Scotland in as just another Government department. Scotland’s local authorities and quangos would also be in the borrowing envelope that would be set by the Treasury, so there would be no scope for movement—the proposal is a financial straitjacket.

“As per the minister’s motion, I urge that, “where there is consensus”, Calman’s recommendations should be implemented without delay. My response to Conservative colleagues on our right with regard to the proposals on taxation, borrowing and financial powers is that members of this institution should—jointly, across the Parliament—consider financial powers that would benefit Scotland in the transition to independence.”

Read the full text of Linda’s speech at http://www.scottish.parliament.uk/business/officialReports/meetingsParliament/or-09/sor1209-02.htm#Col21978.