The Courier & Advertiser (Perth and Perthshire Edition)
Growth Commission too conservative on economy – Kerevan
A new economic plan for Scottish independence would leave the country “at the mercy” of banks, a former SNP MP has warned.
George Kerevan criticised the SNP Growth Commission’s proposals for tackling the deficit and keeping the pound as he addressed members at the party’s spring conference in Aberdeen.
He drew applause from delegates as he described its report as “too conservative”, and questioned what its independence plans would deliver for the poorest Scots.
First Minister Nicola Sturgeon says the report sets out an alternative to Westminster’s “austerity”. However, the document, published last month, has been criticised by some Yes supporters.
Its recommendations include keeping Sterling without a formal currency union after Scotland leaves the UK.
A separate Scottish currency could be set up after a period of about a decade, but only if six key economic tests were met, the commission said.
The move would see the Bank of England continue to set interest rates and other monetary policy in the years after independence.
The commission said it would take 10 years to get Scotland’s deficit rate under control, while an independent Scotland would take up to 25 years to match the economic performance of other small countries such as Denmark, Sweden, Norway and New Zealand.
There are no plans to formally debate the commission’s findings on the floor of the conference.
However, speaking at a fringe event organised by the Institute of Economic Affairs, Mr Kerevan said he had “some doubts” over the proposals put forward by the commission, chaired by Andrew Wilson, a former SNP MSP.
He said: “My view is let’s get independence, let’s use it.”
On currency Mr Kerevan added: “If we don’t have our own currency we are at the mercy of the banks. And it is the banks and the banking system in the UK, this warped banking system, that is one of the real causes of our under performance, our under investment.”