I understand some senior Tory MPs have been lobbying Cameron to ‘settle’ the Scottish question giving us Full Fiscal Autonomy FFA and ‘hell mend the consequences’ about the £7.5 Billion black hole or deficit.
Fighting talk indeed, were it not for the fact that any politician making reference to this ‘hole’ in the FFA clearly does not have a grasp or even a sticky finger on the concept. The hole in the FFA thing was a ‘just for fun’ exercise and not predicated on realistic economics, timescales and sort of ignored large areas of negotiation making the simplifying assumption that we, Scotland, will get what we are given.
However, in breaking cover with their ‘macho’ machinations they sort of let the cat out of the proverbial. This came in the form of the very interesting exclusions from FFA.
The first exclusion was the UK pension. But why would they want to hang on to that? Simple answer, THEY DON’T. But they must. Here’s the thing. Workers and other pension qualifiers such as spouses have paid into the national pension pot through their National Insurance Contribution. Unlike a private pension where you build up a sizable pot of money for your retirement then discover that Gordon Brown has sucked it dry so you take out the tiny bit left. No, the state pension is one where you contribute hard cash and get rewarded by a legal binding entitlement. Generally speaking, if you have accrued 30 years contributions you are entitled to a full State pension.
Now, if Westminster tells Scotland they are devolving State pensions to Holyrood then they have to come up with the cash relating to all the Scots entitlement. Put it another way, they simply don’t have that. Westminster annually borrows to keep the country afloat including paying out pensions. They could not begin to come up with the capital transfer required to support Scottish State Pension entitlement. Now some readers will be getting ahead of themselves and recognising that this was a massive showstopper in terms of Scottish Independence – AND YOU WOULD BE RIGHT. Westminster would have tanked immediately if Scotland voted for independence and Westminster had to cough up the Scottish portion of the State pension pot.
The other main exclusion is – yes you guessed – the oil and gas. I have said all along; we only want ONE thing, our OIL. Westminster uses the liquidity of our North Sea assets to borrow to run the country. There is no scenario, no barrel price and no amount of political pressure that would entice Westminster to release it’s stranglehold on our North Sea assets.
These are two example where Westminster would find it impossible to even contemplate Scottish Independence. They will gift us everything else, but they will never, could never, concede these two assets.
IF YOU WERE IN ANY DOUBT, CONTINUE TO READ BETWEEN THE LINE, WHERE THE TRUTH LURKS.
1 comment for “Fool Fiscal Autonomy”