Scotland: Independence

Lord McConnell of Glenscorrodale Excerpts

Wednesday 29th January 2014 Lords Chamber

[Lord Wallace of Tankerness]

My Lords, as I indicated in my original Answer, there would be a process of negotiation. Obviously, laws passed by this Parliament set out the arrangements for elections and it would be a matter for Parliament to change the arrangements if it so wished. I take the first point of my noble friend’s Question. I think I say for colleagues on all sides of the House that, while we support the integrity of the United Kingdom, we should be making every effort to ensure that the eventuality of a yes vote in the independence referendum simply does not arise.

[Lord McConnell of Glenscorrodale (Lab)]

My Lords, one issue that those Members of Parliament might have to address in that eventuality would be the position in relation to the currency. Does the noble and learned Lord welcome the very thoughtful and balanced contribution to the debate on the currency in Scotland made today by the Governor of the Bank of England? Will he join me in urging others who head up our great national institutions, whether in Scotland or throughout the UK, to contribute in a similar fashion to ensure that the complexities of the decisions that are required afterwards are fully understood and that the people in Scotland have all the information they need to make the right decision?

[Lord Wallace of Tankerness]

My Lords, as the Chancellor of the Exchequer has previously said, the current arrangements of a full monetary, fiscal and political union bring benefits to all parts of the United Kingdom. I certainly have noted that the Governor of the Bank of England today has highlighted the principal difficulties of entering into a currency union—losing national sovereignty, the practical risks of financial instability and having to provide fiscal support to bail out a foreign country. That is why we have consistently said that, in the event of independence, a currency union is highly unlikely to be agreed so the Scottish Government need a plan B. I agree with the noble Lord, Lord McConnell, that people who, from experience, have an important contribution to make should make it. Indeed, this month, Better Together has published a very good pamphlet which quotes many people showing how untenable the position of the Scottish Government is on the issue of the currency.