It has been an unfortunate week for Alex Salmond, who was reprimanded by both the Scottish Labour Party and the Treasury in the space of 24 hours.
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It has been an unfortunate week for Alex Salmond, who was reprimanded by both the Scottish Labour Party and the Treasury in the space of 24 hours.
After an especially savage grilling by leader of the Scottish Labour party Johann Lamont, Salmond claimed that it would be “entirely reasonable” for a separate Scotland to have the same influence that the UK Treasury does over the Bank of England’s monetary policy committee (MPC).
Watch the exchange at yesterday’s First Minister’s Questions:
The Scotsman reports:
Pressed by Ms Lamont to provide “details of that agreement” that would allow an independent Scotland influence over the Bank of England, Mr Salmond insisted it would be “entirely reasonable” for a separate Scotland to have the same influence the UK Treasury has over the MPC and that there was “nothing unusual about that” arrangement.
He told the Scottish Labour leader he had spoken to Sir Mervyn King, Governor of the Bank of England, in February, but he did not say what he had discussed with him.
He told MSPs that, in the event of Scotland becoming independent, it would “expect to be part of the appointments process” if it continued to use the pound.
But a spokesman for Mr Salmond was later unable to give examples of similar arrangements of other nations that share a currency having representatives on the body that sets interest rates.
• Cameron heads north, Salmond heads south and Mervyn’s living in the future 16 Feb 2012
• A separate Scotland will be worse off if it keeps the pound 10 Feb 2012
• Swinney on Scotland currency – more questions than he answers? 2 Feb 2012
Unfortunately for Salmond, the treasury were quick to rebuke his claims in a statement released yesterday:
“In that scenario, [an independent Scotland] would have no say over its own monetary policy as set by the Bank of England.”
Left Foot Forward have already reported on how an independent Scotland would be worse off keeping the pound:
The most crucial part to understand about sterlingisation is that a separate Scotland, without a currency board, will have no control whatsoever over monetary and exchange rate policy. Salmond has been mistakenly pushing the argument that goes along the lines of:
‘The Bank of England has had independent control over monetary policy since 1998 and therefore will continue to take Scotland into account.’
Not so. The Bank of England is currently obliged to regard the effects its decisions will have on Scotland. Without Scotland being part of the UK and with no currency board, this will not apply. In other words, decisions that have an impact on Scotland will be taken in another country that is focused on stabilising the national economy, not the Scottish one.
Instead of actually attaining independence, a separate Scotland will ironically tie itself to the rest of the UK through the importation of the effects of monetary policies conducted by the Bank of England.
Why is Salmond so desperate to push for an independent Scotland, or as he calls it “a sterling zone”, which would allow the Bank of England to disregard Scotland when creating monetary policy?
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62 Responses to “Lamont teams up with Treasury to reel in Salmond”
Stronger United
if you missed Johann Lamont absolutely take Alex Salmond apart here it is again: http://t.co/V9jdJeDC #ScottishLabour #sp4 #fmqs #SNPfail
Anonymous
I’m not the complacent one, who believes in the nuclear faeries.
And actually, no, Russia wasn’t held in breach when the USSR fragmented and neither would England. I’m not condescending to the Welsh and Irish either, the Union as a whole wouldn’t survive very long after a Scottish withdrawal.
Charles
Newsbot9
your powers of deduction are simply not good enough!
Tory troll!, wow
Now Brown And Blair, there are two Tory Trolls!, didn’t they love and extol the virtue’s of Maggie thatchers tory policy’s of the 70’s/80’s
Left wing or labourite, still the same, still support a party that took us to the brink of financial ruin!!
As for shit slinging, thats rich coming from someone who’s party do nothing but shit slinging and stirring then run away!
This party don’t even have a plan A, never mind a plan B?
Dear Leader?, thats a bit two faced is it not?
And so as we are clear, SNP supporter since the mid 80’s, not a great admirer of salmond but he’s doing a far better job than any other political leader or party has done for scotland in the last 50 years!
As i understand it, most politics is a scam!!
Charles
Ripping of Engurland!, your the one thats delusional!
Englands been ripping off scotland since the discovery of oil in the north sea!
Scotland would have been Independent if it wasn’t for that discovery, your English Parliament would have granted that in the 60’s till it learned of the financial benefit’s and have been plundering Scotland ever since!
You forget one thing about moving nuclear sites!, the cost of clean up!, put that into the equation.
And again with the Dear Leader!, this isn’t China, Salmond is not chairman Mao!
You accuse others of being trolls and being delusional when you your self are doing the exact same thing!, oh but wait, it’s the left wing way, hypocrisy!
Nugget!
Anonymous
Again, you don’t have the faintest idea. Not only about North Sea oil, or the Union, but about the costs Scotland would have to bear.
It’s the Scottish RIGHT like you who are driving the separation for your own reasons. And okay, I’ll just call him Big Brother Salmond.
You’re just another totalitarian trying for short-term advantage.