East Coast Main Line

Debate between Mark Lazarowicz and Graeme Morrice

Tuesday 12th November 2013 Westminster Hall

[Mark Lazarowicz]

rose—

[Graeme Morrice]

rose—

Scottish Separation

Debate between Mark Lazarowicz and Graeme Morrice

Tuesday 10th July 2012 Westminster Hall

[Graeme Morrice]

In terms of setting interest rates and so on. The Chancellor still has a role in that regard —a role that a separate Scottish Government in an independent Scotland would not have. There would be no accountability, no influence and no say in that, and the UK Government have confirmed that officially.

Whichever way one looks at the matter, the SNP’s policy of retaining the pound sterling as a separate currency for Scotland is a proposal engulfed by uncertainty. At the same time, the SNP insists that a separate Scotland would be entitled to automatic membership of the European Union—a position that is in serious doubt, as highlighted by last year’s well documented Library standard note on “Scotland, independence and the EU”, which states:

“There is no precedent for a devolved part of an EU member state becoming independent and having to determine its membership of the EU as a separate entity, and the question has given rise to widely different views.”

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

Even assuming good will on both sides of the argument for an independent Scotland trying to renegotiate terms with the EU—I do not believe that there is any reason to assume hostility from other EU member states—the fact is that the EU is not, to put it kindly, the swiftest-moving institution. Is it not likely that even with the best will in the world the new arrangements would take a long time—years—to finalise, yet again leading to the continued uncertainty about which we heard earlier?

[Graeme Morrice]

I certainly agree with that proposition. Going back to the 1992 general election campaign, I recall that the SNP talked about independence within Europe. I note that it is not banging on about that now.

For the sake of argument, let us assume, although it is unlikely, that a separate Scotland would be permitted to join the EU immediately. We know with some certainty that such a position would require Scotland to commit to joining the euro at some point in the future, taking the nationalists back to the same risky and unpopular position that they have tried desperately to abandon. Again, it seems to be beyond doubt that the unknown risks posed by breaking up Britain are significant and that the uncertainty about which currency the country would use could not possibly be good for business or families in a separate Scotland.

I have tried to focus on a few of the numerous essential economic consequences of separation. I could have looked at many others, including whether the tax base of a separate Scotland could sustain a separate Scottish economy and what personal and business taxation rates would have to be levied, whether the Scottish Government could meet existing UK Government state and public sector pensions commitments, what the impact would be of turning our biggest trading partner into our biggest competitor, what the cost would be to our economy of losing UK Government shipbuilding contracts and what a separate Scottish Government could borrow. I am sure that other Members will want to address those and other questions in the time that remains.

I would like to go back to where I started and the wider debate on this subject. It has been fascinating to watch the twists and turns of the SNP over the past few months. It has demonstrably failed to answer a series of critical questions about the consequences of its plans to separate Scotland from the UK, despite that having been its raison d’être for more than 75 years. Those in the SNP leadership must wonder where they can go next, as they face up to the prospect of support for separation flatlining, no matter how far into the future they push the referendum.

Many in nationalist circles must also be asking themselves how their leaders have managed to squander the considerable political capital that they enjoyed just over one year ago. What remains clear is that the economic dimension to the separation debate is crucial, and there is an absolute responsibility on the UK and Scottish Governments to publish the best available information and projections of the potential economic consequences of breaking up the UK, as debate on that crucial question continues and intensifies. Ultimately, as long as economic evidence continues to show that Scottish families will be better off remaining in the UK, coupled with the wider social, cultural and political strength derived from our interdependence with the rest of the UK, Scotland’s place as an essential part of a strong United Kingdom will be secure for many years to come.

Finance Bill

Debate between Mark Lazarowicz and Graeme Morrice

Tuesday 3rd July 2012 Commons Chamber

[Graeme Morrice]

I agree, and I shall deal with that aspect of bank lending in due course. It is vital for people’s trust in British banks to be restored as quickly as possible.

[Mark Lazarowicz]

Is not one of the tragedies the fact that the hundreds of thousands of people who work in the financial services sector—many thousands of them in my constituency and that of my hon. Friend—are being let down by those who are receiving the big bonuses? I was shocked and horrified by what is being done in their name, because they are often the victims of the criticism and the policies in the banks which have led to today’s debate.

[Graeme Morrice]

I agree. Many of my constituents who work in the banking and financial services sector contact me regularly to express concern about what their employers are doing.