Welcoming Bank of England Governor Mark Carney’s speech in Edinburgh today on currency union, Finance Secretary John Swinney said: “We welcome the Governor’s confirmation that the independent Bank of England will implement whatever monetary arrangements are put in place by the two Governments. As he made clear, he was not making the case for or against Scotland’s independence, which is for the people of Scotland to decide, or for or against a currency union, which will be a matter for agreement between the Scottish and UK Governments. “The benefits of a currency union are clear for both sides in terms of issues like promoting investment, eliminating transaction costs, reducing borrowing costs and facilitating the movement of labour and capital, and we welcome the Governor’s recognition of these benefits. “Mr Carney provides a serious and sensible analysis of how a currency union can work in practice, and every one of the points he cites in terms of the technical requirements have been examined in detail by the Fiscal Commission, headed by two Nobel laureates. We welcome the Bank’s commitment to further technical discussions with Scottish Government officials which will refine the work already undertaken, including the Fiscal Commission’s publication of their report on a macroeconomic framework for an independent Scotland, which encompasses proposals for a shared Sterling area. “Ultimately, as Mr Carney makes clear, a Sterling area is a matter for the two Governments to agree. Such a shared currency area is the common sense position as it is in the overwhelming economic interests of both Scotland and the rest of the UK. “An independent Scotland will control 100 per cent of our own revenues, compared to the seven per cent of our tax base we are currently responsible for under devolution. A shared currency will mean an independent Scotland having control of tax policy, employment policy, social security policy, oil and gas revenues, immigration policy and a range of other levers to suit our own circumstances, helping to grow our economy, create jobs and secure a more prosperous and fairer society.” Not everyone agrees with John Swinneys politics but his mastery of Scotlands finances for the last seven years shows hes head and shoulders above any UK Chancellor of the exchequer in living memory when it comes to managing a countrys economy.
Posted on: Wed, 29 Jan 2014 17:14:10 +0000
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