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| Salmond adviser Kay: Independence 'offers little gain' | |
| (about 7 hours later) | |
| Scotland would "gain little" by full independence, a key economic adviser to First Minister Alex Salmond has warned. | |
| Professor John Kay said that while the move would "clearly be economically viable", increased financial power within the Union was more likely. | Professor John Kay said that while the move would "clearly be economically viable", increased financial power within the Union was more likely. |
| The Scottish government will hold an independence referendum in the second half of the new Scottish Parliament. | The Scottish government will hold an independence referendum in the second half of the new Scottish Parliament. |
| The SNP said Prof Kay was appointed to the council of economic advisers on the basis of his expertise and record. | |
| The Scottish budget is currently funded through a block grant from Westminster. | The Scottish budget is currently funded through a block grant from Westminster. |
| But Mr Salmond has used the SNP's landslide election win to call for more financial powers for Holyrood - namely increased borrowing powers, corporation tax, excise duties and control over the Crown Estate. | But Mr Salmond has used the SNP's landslide election win to call for more financial powers for Holyrood - namely increased borrowing powers, corporation tax, excise duties and control over the Crown Estate. |
| Prof Kay, who was appointed to Mr Salmond's council of economic advisers (CEA) after it was created during the last parliament, said independence would bring political and economic complications. | Prof Kay, who was appointed to Mr Salmond's council of economic advisers (CEA) after it was created during the last parliament, said independence would bring political and economic complications. |
| Writing in the Scotland on Sunday newspaper, he stated: "The reality is that Scotland would gain little by full independence. | Writing in the Scotland on Sunday newspaper, he stated: "The reality is that Scotland would gain little by full independence. |
| "In the modern world, economic sovereignty for small nations is inescapably limited, and political sovereignty is largely symbolic. | "In the modern world, economic sovereignty for small nations is inescapably limited, and political sovereignty is largely symbolic. |
| "There is very little possible autonomy for Scotland which is not potentially available to it as part of the United Kingdom." | "There is very little possible autonomy for Scotland which is not potentially available to it as part of the United Kingdom." |
| Prof Kay argued that, while Scotland was the most prosperous part of the UK outside southeast England, there were "wide disparities" within its economy. | Prof Kay argued that, while Scotland was the most prosperous part of the UK outside southeast England, there were "wide disparities" within its economy. |
| "An independent Scotland would clearly be economically viable," he wrote, adding: "But whether Scotland, the remainder of the UK - or both - would be better off after separation is much less certain. | "An independent Scotland would clearly be economically viable," he wrote, adding: "But whether Scotland, the remainder of the UK - or both - would be better off after separation is much less certain. |
| "In the short run, that would depend on transfers and subsidies to the Scottish government from the rest of the UK. | "In the short run, that would depend on transfers and subsidies to the Scottish government from the rest of the UK. |
| "In the long run, the issue is whether independence would promote economic dynamism in Scotland - or lead it to sink into the partisan petty corruption that, for so long, characterised Scottish politics." | "In the long run, the issue is whether independence would promote economic dynamism in Scotland - or lead it to sink into the partisan petty corruption that, for so long, characterised Scottish politics." |
| Prof Kay went on to argue the SNP's claim on revenue from the vast wealth of North Sea oil was "not straightforward", adding that offshore wind power was "inherently unprofitable". | Prof Kay went on to argue the SNP's claim on revenue from the vast wealth of North Sea oil was "not straightforward", adding that offshore wind power was "inherently unprofitable". |
| "Standard principles of territorial allocation would give much of the North Sea and its tax revenues to Scotland," he said. | "Standard principles of territorial allocation would give much of the North Sea and its tax revenues to Scotland," he said. |
| "Yet the historic privileges of the monarch mean that offshore energy is largely a UK resource." | "Yet the historic privileges of the monarch mean that offshore energy is largely a UK resource." |
| The economist said there was "virtually no chance" that a referendum would support independence, saying the likely outcome would be greater fiscal autonomy. | The economist said there was "virtually no chance" that a referendum would support independence, saying the likely outcome would be greater fiscal autonomy. |
| "Scotland can get many of the advantages claimed for independence if it negotiates for more autonomy, while still staying part of the Union," said Prof Kay. | "Scotland can get many of the advantages claimed for independence if it negotiates for more autonomy, while still staying part of the Union," said Prof Kay. |
| Independence 'perfectly viable' | Independence 'perfectly viable' |
| A spokesman for the first minister, said: "John Kay, along with the other members of the CEA who served in the last session, was appointed on the basis of his record as a globally respected economist, not because of any party political affiliations. | A spokesman for the first minister, said: "John Kay, along with the other members of the CEA who served in the last session, was appointed on the basis of his record as a globally respected economist, not because of any party political affiliations. |
| "The CEA was made up of a mix of economists, some of whom, like John Kay, believe in financial autonomy for Scotland, and others who support independence. | "The CEA was made up of a mix of economists, some of whom, like John Kay, believe in financial autonomy for Scotland, and others who support independence. |
| "The one thing they all agree on is the need for Scotland to gain substantially more economic powers, and, as John Kay himself says, an independent Scotland is a perfectly viable economic prospect." | "The one thing they all agree on is the need for Scotland to gain substantially more economic powers, and, as John Kay himself says, an independent Scotland is a perfectly viable economic prospect." |
| The UK government has said it would not stand in the way of a referendum, but Prime Minister David Cameron has pledged to campaign strongly against independence. | The UK government has said it would not stand in the way of a referendum, but Prime Minister David Cameron has pledged to campaign strongly against independence. |