HEALEY ADMITS OIL TAX COVER-UP The former Labour Chancellor, Denis Healey, has admitted his Government played down the value of Scotland’s oil reserves in the 1970s because of the threat of nationalism. Now Lord Healey of Riddlesden, the Labour peer said tax receipts from oil is the biggest factor behind Westminster opposition to both next year’s and the 1979 independence referendum. The 95-year-old also claimed the Westminster parties are “worried stiff” about Scots voting Yes in next year’s poll because of the valuable income from the North Sea. Meanwhile he joined former Conservative chancellor Nigel Lawson in backing a bid for the UK to quit the European Union. Lord Healey said the UK would “suffer enormously” without the billions of pounds of tax from North Sea oil. He said: “I think they [Westminster politicians] are concerned about Scotland taking the oil, I think they are worried stiff about it. I think we would suffer enormously if the income from Scottish oil stopped but if the Scots want it [independence], they should have it and we would just need to adjust. But I would think Scotland could survive perfectly well, economically, if it was independent. Yes, I would think so… with the oil.” In 1974 a leading Government economist, Professor Gavin McCrone, wrote a report which stated that Scotland would have had “embarrassingly” large tax surpluses as a result of the North Sea oil boom. Lord Healey’s Labour government decided to keep that document under wraps until it was eventually released in 2005. Reflecting on this time, Lord Healey said: “I think we did underplay the value of the oil to the country because of the threat of nationalism but that was mainly down to Thatcher. We didn’t actually see the rewards from oil in my period in office because we were investing in the infrastructure rather than getting the returns and, really, Thatcher wouldn’t have been able to carry out any of her policies without that additional five per cent on GDP from oil. Incredible good luck she had from that.” Asked if he had considered establishing a sovereign wealth fund with the oil revenues to invest in the country’s future when he was in office, he said: “It’s true that we should have invested the money in things we needed in Britain and I had thought about an oil fund, but it wasn’t my responsibility by then.” Alistair Darling, Head of the No campaign – “The question is not whether Scotland can survive as a separate state. Of course it could.” Ruth Davidson, Leader of the Scottish Tories – “I believe Scotland is big enough, rich enough and good enough to be an independent country.” Anas Sarwar, Deputy Leader of Scottish Labour – “Scotland would probably be a successful country if it was an independent country.” Iain Gray, former Scottish Labour Leader – “I do not think Scotland is too small, too poor or too stupid to stand on its own.” David McLetchie, late Scottish Conservative Leader – “An independent Scotland would be viable.” Michael Moore, Secretary of State for Scotland – “You’ll never hear me suggest that Scotland could not go its own way.” Professor Brian Ashcroft, CEO of Fraser of Allander Institute (Husband of Wendy Alexander) – “Against that option (more powers) full blown independence might be much better. With full blown independence you can do many more things. If you’re being forced to balance your books, then the logic is be independent. Don’t do it within the Union. So you heard it here first, me arguing for independence!” Denis Healy, former UK Chancellor, “I think they [Westminster politicians] are concerned about Scotland taking the oil, I think they are worried stiff about it…I would think Scotland could survive perfectly well, economically, if it was independent…I think we did underplay the value of the oil to the country [for political reasons]“. And finally an important contribution from the top. “Supporters of independence will always be able to cite examples of small, independent and thriving economies across Europe such as Finland, Switzerland and Norway. It would be wrong to suggest that Scotland could not be another such successful, independent country.” David Cameron, Prime Minister of the UK. Conclusion In certain instances the UK has worked well in the past for Scotland. Yet today there is a political divergence that makes continued centralised decision making from Westminster undesirable. It’s the political union that isn’t working. After independence trade and cultural ties will continue from a basis of equality. Scotland will then have full control over its future. Westminster also accepts that Scotland politically, socially, environmentally, geographically and culturally different to the rest of the UK, as dominated by the huge population block of London and the South East. It all boils down to two key questions. Is there any economic impediment to electing our own government and making decisions for Scotland in Scotland? This is a fairly clear and simple case given, that the No campaign fully agree that Scotland can be a successful independent nation. So if Scotland can be a successful independent country and there is no reason why not, then why wouldn’t we vote to become one?
Posted on: Tue, 19 Nov 2013 13:53:30 +0000
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