Independent Scotland Will Have A Catastrophic Debt Burden, Warns Debt Solutions Company.
A massive debt of £65 billion awaits an independent Scotland and no ‘heroic’ assumptions’ would change that, warns Trust Deed Scotland Company.
United Kingdom (PRUnderground) September 28th, 2011
UK ministers have escalated their attacks on the SNP’s plans for independence and secession, with Danny Alexander, Chief Secretary to the Treasury, leading the way.
In a keynote speech at CBI Scotland’s annual dinner in Glasgow, Mr Alexander spoke to a room of business chiefs about the catastrophic debt that could have crippled Scotland had it split from the UK and been an independent country at the beginning of the recession in 2008. Mr Alexander added that North Sea oil revenues would not have saved the situation, despite assertions and ‘heroic assumptions’ to the contrary.
The SNP has made no secret of its dislike of the coalition’s deficit reduction strategy, claiming it risks obstructing healthy growth and prevents Scotland from investing in infrastructure projects that could kick-start the economy.
The UK government has made no secret of its concern about the financial future of Scotland once independent, however the SNP has no such concerns. In response to Mr Alexander’s speech the SNP accused him of damaging the case against independence with ‘ridiculous’ arguments, claiming that after independence the national debt would be lower than the European average with the North Sea oil reserves holding as much as £1 trillion of oil.
However, it’s not just Mr Alexander who has publicly voiced concerns about the future of independent Scotland. Last week Scottish Secretary Michael Moore has accused the SNP of not making it clear enough exactly how independent Scotland would operate. Speaking of how UK ministers want to pursue a respect agenda with Scotland, it would have to be a two way street in which both governments should “acknowledge one another’s legitimacy, respect one another’s mandates, and ensure they fulfil those mandates to the best of their abilities.”
A spokesperson for Trust Deed Scotland Company, Scottish Trust Deed, said: “Some of the plans for Scottish independence sound very exciting, but as of yet the SNP haven’t divulged any solid plans of action as to how they will be achieved. This makes people nervous, especially people who are in debt. The recession has made everything so uncertain, and further uncertainty can cause people to panic. People can see what Mr Salmond is trying to do but cannot see clearly how it will be done.”
There have been repeated calls for the SNP to clarify exactly how the break from the UK will address key issues, and in his speech last week Mr Moore laid out six key questions that Scotland needs answers to – and quickly – about the SNP’s proposed plans for independence.
“What regulation would be applied to our banks and financial services and who would enforce it?”
“Which currency would Scotland adopt and how could entry and influence be guaranteed?”
“How would membership of international organisations - including the EU - be assured?”
“What will be our defence posture and the configuration of our armed forces?”
“How many billions would we inherit in pension liabilities and who would pay for future pensions?”
“And above all - over all - how much would independence cost: what is the bottom line?”
The questions keep coming, the implications keep emerging and the imperative to answer keeps growing.
“Until the Scottish Government sets things out, the Scottish people are being asked to take a punt. But our future cannot be taken on trust; it’s just too important.”