Oral Answers to Questions

Mel Stride Excerpts

Wednesday 19th March 2014 Commons Chamber

[Mr Carmichael]

The best way to ensure that those jobs stay is to vote no on 18 September and ensure that Scotland remains part of the United Kingdom. In recent weeks we have seen a growing number of companies—Standard Life, Royal Bank of Scotland and Alliance Trust Ltd—explaining that, if Scotland was to become a foreign country, as good Scottish companies operating through the whole of the United Kingdom, they would be required to remove their headquarters from Scotland to the rest of the United Kingdom. That would not be good for Scotland’s economy.

[Mel Stride (Central Devon) (Con)]

5. What recent discussions he has had with the Scottish Government on the prospect of a currency union with an independent Scotland.

[Andrew Bridgen (North West Leicestershire) (Con)]

6. What recent discussions he has had with the Scottish Government on the prospect of a currency union with an independent Scotland.

[The Secretary of State for Scotland (Mr Alistair Carmichael)]

I have not had any discussions with the Scottish Government about the prospect of a currency union. The Chancellor, the Chief Secretary to the Treasury and the shadow Chancellor have all said that there will not be a currency union. The only way to keep the pound is to stay in the United Kingdom.

[Mel Stride]

Alex Salmond claims that an independent Scotland will still use the pound. Given that there is no likelihood of a currency union between the remainder of the United Kingdom and any future independent Scotland and that Scotland would therefore not have the backing of the lender-of-last-resort facility of the Bank of England, does my right hon. Friend agree that such a path is disastrous for Scotland—particularly its financial and banking sector?

[Mr Carmichael]

Indeed. If Scotland made herself a foreign country to the rest of the United Kingdom, there would be no question of the Bank of England and the taxpayers who underpin it continuing to stand behind banks headquartered in that foreign country. That simply does not happen. As we have already explained, a number of financial services and banking companies north of the border have rightly identified that as a risk to their continued future governance.