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Inside Holyrood: Holyrood hamstrung as global cash crisis unfolds

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Published Date: 29 September 2008
THE last few weeks have been a frustrating time to be an MSP.
With the world's economy melting down, dragging a venerable Scottish institution – the Bank of Scotland – with it, Holyrood has found itself at the bottom of the international political food chain with little real power.

Added to that, another Sco
ttish-based FTSE100 company – British Energy – has been sold off with the blessing of the UK government to the French, leaving question marks over the long-term future of its East Kilbride headquarters.

With that in mind, this week sees committees begin the process of looking at the Scottish budget for 2009-10.

In such pressing times, a proper national parliament would want take measures to protect jobs and maybe kickstart the economy.

Few of these powers are available to MSPs, who are in the middle of a three-year budget settlement set by Westminster, and therefore can do little but tinker around the edges.

The only serious budget proposal to boost the economy is a 2p income tax cut put forward by the Lib Dems, which would mean £800 million slashed from the budget.

A sceptic might suggest the Lib Dems are making the proposal safe in the knowledge that nobody will take them up on the offer.

So if there were any MSPs around who did not think the Scottish Parliament needed more control over the Scottish economy, then they must have been disabused of that by now.

There are still valid doubts over whether an independent Scotland would be swamped in the current circumstances.

But given the turmoil and the clear competing interests with protecting jobs in Scotland and England, the case for the devolution settlement to be revamped cannot now be ignored.

It is too late for this particular crisis, but in the rebuilding that must surely follow, Holyrood will need a greater say in shaping Scotland's future.





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  • Last Updated: 28 September 2008 10:16 PM
  • Source: The Scotsman
  • Location: Edinburgh
 
1

Weegiewarbler,

still sailing 29/09/2008 00:56:39
A fairly balanced article - excellent.

And HBOS could have been nationalised with profits reinvested (at 6 bn / year) to assist Scotlands infrastructure.

We would likely not need to visit Quatar (oil production 1/3 that of Scotland) for funding.
(How can we do this btw without legal borowing power?)

Green power and no extravagant nuclear spending would have saved countless pounds.

IT IS TIME for Scotlands best interests to be placed first - if Westmister can do this - OK, but history shows otherwise.

We live in interesting times - how interesting will be up to the Scots of the next decade, and up to fair and balanced media.

We thank you for this one article in that vein at least.
2

frank mcbride,

lusitania 29/09/2008 01:54:50
#1, Weegie.

Borrowing, no problem. SFT - borrowing at sensible interest rates, unlike Andy Kerr's NuLab extortionate PFI/PPP.
3

Weegiewarbler,

Docked 29/09/2008 02:39:43
#2
Agreed.

It's simlpy about brokering the best deal possible with the least strings attached for the nation.

ANYONE who can't see that - or wishes to criticize without putting realistic alternatives on the table should be thoroughly ashamed of themselves.

We live by a simple motto - "don't bother pointing out the negatives if you've nothing positive to offer".
4

Tynietiger,

29/09/2008 08:55:24
What we need is independence with full fiscal powers.

Just look at Norway it has a Central Bank and NO BANKING CRISIS. It is not a universal global problems as Brown and Darling like to say to avoid the blame foe their lax regulations.
5

Rasco,

Inverness 29/09/2008 10:39:54
Is this really Mr Maddox writing this and the Scotsman printing it a balanced article and no slagging off the SNP for trying to get things for Scotland,what is Iain Grays take on this heard Kerrs mouthing but no answer to what he would do.
6

SEUMAS,

fearn 29/09/2008 17:06:56
Can't believe Mr Maddox wrote this, what is going on?
Do Greeks bear gifts after all?
7

Western Gael,

29/09/2008 18:15:10
I agree with the earlier posters – overall,a well-balanced article and not a word of the First Minister’s unfortunate plan to have the Oil Sheikhs buy Sovereign Bonds to help Scotland out of a bad fiscal patch. As I recall, the last time anyone tried that, it was the American Confederates selling war bonds to the BoE.
8

Brian Hill,

29/09/2008 23:43:53
Sounds a like a strong case for Fiscal Independence at the very least. Good article Mr Maddox.

 

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