UK: Union

Lord Stephen Excerpts

Thursday 3rd November 2011 Lords Chamber

[Lord Stephen]

Does my noble and learned friend agree that rather than being for the UK Government it should be for Alex Salmond and the SNP to spend some of their own time and money explaining what full independence really means? For example, is it not time that Alex Salmond told us how many military bases would remain in Scotland? How would he split the Scottish pension system from the UK system? Would he create an entirely new tax and benefits system for Scotland; and if, as he says, he wishes to retain sterling as Scotland’s currency, would EU membership allow this? If it would, what powers would he intend to have to instruct Mervyn King and the Bank of England on monetary issues, or would he just leave that to George Osborne?

[Lord Wallace of Tankerness]

By asking that question, my noble friend makes it very clear that the First Minister of Scotland and his party have a host of questions to answer, not least on the currency because there are even those who think that if Scotland wished to join the European Union it would be obliged to adopt the euro. Andrew Hughes Hallett, who is on the First Minister’s Council of Economic Advisers, indicated that, as was reported earlier this week. It would be rather odd. Some countries, but not many, adopt the currency of a foreign country but have no powers. It just underlines what a weak position Scotland would be in.