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”
Anonymous
Ah yes, the FAR right view, where you can’t tell between the right and the center. And brink? Your Tories (sure, you’ll vote SNP long enough for independence…) are taking the Union OVER the border.
And what “party” is that? There hasn’t been one for me since 1978, but keep dreaming. And no, calling him Dear Leader is one faced – it’s a face mocking you.
And yes, he IS the best you have. He’s still not much good, given blunders like this one and his utter inability to give solid answers as to what independence would actually bring…he wants you to vote for a blank cheque.
Charles
I believe that it is you that does not have the faintest!
Google the McCrone report!
Either way on the viability of the oil, the english parliament would have giving Scotland it’s independence during the 60’s due to the fact Britian as a whole was broke due to the ww2!
When the oil was discovered that was a no go!.
Totalitarian!, Brother salmond!, what are you on!
Typical left wing BS!
As for separatists, is it wrong that most Scots want the running of there political clout based here in Scotland!, not run from Westminster by a party that we never voted for!
Get a grip man!
Anonymous
What am I on? That’d be “The Earth”.
And I see, in your land the polls don’t exist, The One True State is a mirage in the minds of the faithful which must not be shattered.
If you can’t take gentle mockery of your Grand Poobah, how the heck do you think you’ll be able to stand up for a state of your own?
The McCrone report most certainly did NOT recommend Scottish independence as you’re claiming either. You’re making things up like your fellow Tories.
Yes, Tories… The SNP is a coalition which only pretends to the left, and it’s increasingly threadbare. There hasn’t really been anything more than a factional split between the 1%, seeking their own advantage and using people like you as a tool.
Me, I focus on the true enemy. The 1% and their quislings. It’s a shame you’re among them, but it’s your choice. I never voted for the Tories myself, but instead of pushing for PR you’re trying to ensure other people are ruled by them for good. Very, VERY Tory.
Bruce Cowan
I see, so when’s the referendum of the dissolution of the UK in favour of a world government?
Charles
You make many a good point but many without proper foundation, especially on which side of the fence i reside!.
Ex labour, when Labour value’s were that of the common man!
Now SNP because i want Freedom for this country to do it’s own bidding!
As i understand it, Salmond will step down from office, breakup the Scottish Government and have new elections to decide who will lead Scotland once Independence has been established, that, as far as i am concerned, is not a Tory value!!
I may have mislead you into thinking i gleamed information from the McCrone report that independence was once thought about by the english parliament but that info was gleamed from some where else and is indeed on record!
So, i’m not making things up, how i stated and how you read were two different thing’s!
The simple fact is, when labour were in power at that time, it systematically screwed Scotland!!.
As have the tory’s, then labour now it’s the tory’s!
I’d rather take my chance’s with a government that is voted by ourselves!!
And if your referring to the fact that once Scotland achieve’s it’s goal, that you are left with the tory’s to rule you then that sir, is a fight you have to take on yourselves as we have!!
Your reference’s to quislings, 1% and using people as tools?, wtf?!
Are you referring to murdoch/salmond?