Robert Buckland
Main Page: Robert Buckland (Conservative - South Swindon)Department Debates - View all Robert Buckland's debates with the HM Treasury
(10 years, 3 months ago)
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Guy Opperman
I speak as a Brit, a mongrel Englishman, a lover of Scotland and an MP whose constituency borders Scotland. Were there to be Scottish independence, I have no doubt that tourism and trade would continue, but it would be naive not to accept that trade on a cross-border basis would unquestionably be affected. That is not some Conservative Member of Parliament speaking; that is the opinion of the chambers of commerce, local authorities and business groups I have spoken to on both sides of the border.
Some of the key questions have been raised by the hon. Member for Edinburgh South, but I have some others. On what basis would Scotland get to keep the pound? Would it be used informally, just as some Latin American countries, Greece and Montenegro use other currencies? Why should the Bank of England take notice of Scotland in setting monetary policy? Why should the Governor travel to Edinburgh and be interrogated by Scottish MPs in such an event? After independence, surely the Governor would owe his appointment entirely to a rest-of-UK appointment system? At that stage, would the First Minister come to London seeking an audience to negotiate? The arguments that have been put forward are, respectfully speaking, a farce.
I also suggest that, when one goes through Mark Carney’s speech and looks at the currency options, it would seem that the SNP proposes to keep the pound as part of a formal sterling currency union agreed with the rest of the UK. However, the SNP seems not to have contemplated the fact that that would involve giving up huge amounts, as Mark Carney made very clear, as well as requiring the agreement of all other parties. The SNP seeks independence but would require and accept greater control by a third party.
Mr Robert Buckland (South Swindon) (Con)
Does my hon. Friend agree that the phrase “sterling area” used in the Scottish Government White Paper is wholly misleading? The sterling area that used to exist with the Commonwealth and Ireland was all about pegging exchange rates; the SNP actually wants full currency union, with all the concomitant controls that that would require.
Guy Opperman
I entirely endorse my hon. Friend’s point. I looked at the Scottish Government White Paper, and it states that
“a monetary framework will require a fiscal sustainability agreement between Scotland and the rest of the UK”—
that is, if independence goes ahead—
“which will apply to both governments and cover overall net borrowing and debt. Given Scotland’s healthier financial position”,
after independence, presumably,
“we anticipate that Scotland will be in a strong position to deliver this.”
With respect, that is complete comedy.