Oral Answers to Questions

David Mowat Excerpts

Wednesday 9th January 2013 Commons Chamber

[David Mundell]

The price of fuel at different petrol stations in different communities has been a matter of long-term concern, and that is why the OFT is conducting an inquiry into it. In my previous answer, I indicated that the results of that inquiry will be available in January, and they will make very interesting reading.

[David Mowat (Warrington South) (Con)]

3. What discussions he has had with ministerial colleagues and Ministers in the Scottish Government on the continued use of sterling in an independent Scotland.

[The Secretary of State for Scotland (Michael Moore)]

The United Kingdom Government are undertaking a programme of work to inform the debate ahead of the referendum. This involves looking at a range of issues including the importance of sterling to all parts of the United Kingdom. There have been no discussions with the Scottish Government about the use of sterling by an independent Scotland.

[David Mowat]

The decision to use sterling after separation means that the Bank of England will be the bank of last resort and the lender of last resort to Scotland. To avoid a repetition of what happened in the eurozone, the UK residual Government must have an oversight role in Scottish spending plans. Has this been sought, and on what time scale will it happen?

[Michael Moore]

There have been no such discussions. The important point is that sterling has served Scotland and the whole of the UK well for 300 years. We have seen in the eurozone the risk of having a formal monetary union without a fiscal union. A fiscally independent Scotland would create real complications in that regard. All this would have to be negotiated after the referendum vote, and it would take some persuading for people in the rest of the UK to take on the role that the Scottish National party wishes for it.