ALBA led by Alex Salmond have today published their policy that an independent Scotland should negotiate from a position of zero debt inherited from the UK.
Publication of the policy will ensure that the final days of the election campaign stay focused on the question of Scottish independence with Salmond urging the SNP to back ALBA’s negotiating position on a clean break settlement. Previously ALBA has published positions on an independent Scotland’s European policy and the scale of the investment required for economic reconstruction.
In a major shift from 2014, ALBA say that the post pandemic financial markets mean that Scotland should not take a share of UK debt as part of “building a new nation”. Nor should Scotland seek an equivalent share of non territorial assets through a sterling currency union.
The paper published today by ALBA candidate, and world leading economist Dr Jim Walker, also sets out that, as a goodwill gesture, an independent Scotland should not seek reparations from the UK Government for the severe economic damage wreaked by Brexit.
The position puts clear tartan water between ALBA’s plans for independence and those set out in the SNP Growth Commission that proposed an independent Scotland should pay an annual “solidarity” payment of around £5.3bn to be transferred to the UK as a price for Scotland’s independence. Nicola Sturgeon has since accepted that the proposals of the growth Commission are out of date.
ALBA say that the economic negotiating position of Scottish independence is no longer equivalent to 2014 because through the age of austerity and the pandemic the overwhelming bulk of Treasury borrowing has been via the Bank of England printing money, through quantitative easing. This means that the public sector debt position balances between Bank of England assets and Treasury liabilities.
Urging the SNP to back ALBA’s position Salmond said that “ in order that Scotland’s recovery is in Scotland’s hands it is vital that Scotland now has the full range of financial recovery powers that only independence provides. “
ALBA, who want to help deliver a Supermajority for independence in Thursday’s elections, have set out urgent priorities that can be funded by the Scottish Parliament to help make an immediate intervention to reduce poverty in Scotland as the country recovers from pandemic.
However, Salmond highlights that for major economic and infrastructure programmes the devolved Scottish Parliament simply doesn’t have the powers to fund them on the scale required to reconstruct the economy.
ALBA state that their call for a no shared assets and no shared debt position would mean that Scotland could utilise its resources to embark on a massive economic recovery programme “free from the shackles of UK debt, or even worse still paying billions of pounds to the UK Government in some bizarre annual subvention.”
ALBA have set out that a new Scottish Currency should be set up as soon as possible after Scotland becomes independent although sterling, as an internationally tradeable currency, could still be freely used to denominate assets and liabilities.
Commenting Alex Salmond said:
“Austerity and Coronavirus has changed the economic world and changed it utterly. Thus the independence platform must adjust to the new realities. They bring with them many new challenges but also great economic opportunities.
“If the people of Scotland back ALBA on Thursday, in the first week we will lay a motion instructing the Scottish Government to commence independence negotiations with the UK Government. Then the Scottish Parliament can get on with the job of delivering independence.
To do so we will need a refreshed independence platform. This paper is yet another contribution from ALBA to that vital debate.”
Dr Jim Walker topped the Asiamoney poll for 11 years in succession. Commenting on ALBA’s no shared assets and no shared debt position he said:
“It is now time that the economic benefits of independence were recast for the post-Brexit age. The success of small economies in the modern world – and there are many examples – depends on high human capital and access to global markets. Scotland should have both. Currently, both are in jeopardy.
“Thus the debate on national independence is not a substitute for concentrating on sustained economic recovery. It is a prerequisite.
“ Our policy set out today is ALBA’s proposal and one which we would urge the newly elected Scottish Government to adopt in the independence negotiations which we will ask parliament to instruct them to commence with the UK Government. Scotland’s position will be immeasurably stronger if we negotiate inclusively as a Parliament with a #Supermajority for independence not as a single political party”.
This is the most sensible policy re separation of assets of Scotland from the UK, given our present situation. Walking away from jointly-held UK assets will weigh lighter on the scale than trying to uphold part of the debt – which would always be allocated by Westminster, anyway. From the debt and deficit already allocated to Scotland, we can see just how onerous they are, given that we are only around 8-10% of the UK population. Between us, the three Celtic parts of the UK hold almost 100% of the national deficit and a massive part of the national debt that, in no way, reflects their share of the power structures that amass and allocate these debts and deficits.
Most of Scotland’s assets are here, in our people, in our land, in our seas, in our environment, etc. If RBS leaves Scotland, as it probably will, this will also be a blessing in disguise. Not for employees, obviously, but if we create a National Bank of Scotland out of the remnants left here and re-employ the staff, the loss will be minimised. RBS – although now a subsidiary of NatWest – is too big for us to bail out if the banking sector goes belly up again. Most of its business now – over 90% – is done in, and from, England, so we have to accept that it will go in the event of independence – and possibly even before then, the day things are going, with Scotland slowly being denuded of moveable assets and our public administrative structures being packed with English-based civil servants who are not being sent north to negotiate independence, but to ensure that our public institutions are in thrall to Westminster rather than Holyrood.
The SNP? “They remained supine in the face of terrible wrongdoing” – instead: SNP 1. and Alba 2. to act and protest against such morally weak indolences! 🏴