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Scottish independence: Welsh first minister 'would veto sterling zone' Scottish independence: Welsh first minister 'would veto sterling zone'
(35 minutes later)
The first minister of Wales has warned that he would try to veto any attempt to create a currency union with an independent Scotland.The first minister of Wales has warned that he would try to veto any attempt to create a currency union with an independent Scotland.
Carwyn Jones said any such union would represent a "messy" solution that could create instability and have a detrimental effect on Wales.Carwyn Jones said any such union would represent a "messy" solution that could create instability and have a detrimental effect on Wales.
Mr Jones said he would "want the right to have a say" on any future sterling zone if Scotland left the UK.Mr Jones said he would "want the right to have a say" on any future sterling zone if Scotland left the UK.
The SNP has said a currency union would benefit both parties.The SNP has said a currency union would benefit both parties.
Speaking at Edinburgh University, Mr Jones, who represents Labour, said: "I am not convinced that a shared currency would work from the Welsh perspective.Speaking at Edinburgh University, Mr Jones, who represents Labour, said: "I am not convinced that a shared currency would work from the Welsh perspective.
"If one part of the currency union decides to leave, then that's a matter for them."If one part of the currency union decides to leave, then that's a matter for them.
"But if an independent nation wants to join, then that is a matter for the people of Wales, Northern Ireland and England - and as the first minister of Wales, I would want the right to have a say.""But if an independent nation wants to join, then that is a matter for the people of Wales, Northern Ireland and England - and as the first minister of Wales, I would want the right to have a say."
But Scottish Finance Secretary John Swinney said it made "eminent economic and practical sense" to share a currency post-independence.
The SNP has said that in the event of a "Yes" vote in next September's independence referendum, Scotland would retain sterling as part of a currency union with the rest of the UK, arguing that it would be in the best interests of both countries.The SNP has said that in the event of a "Yes" vote in next September's independence referendum, Scotland would retain sterling as part of a currency union with the rest of the UK, arguing that it would be in the best interests of both countries.
However, Chancellor George Osborne has previously said the UK would be unlikely to support this approach.However, Chancellor George Osborne has previously said the UK would be unlikely to support this approach.
Asked on BBC Radio Scotland's Good Morning Scotland programme why he would not be in favour of a strong fiscal alliance with an independent Scotland, Mr Jones said: "I just don't know how this works.Asked on BBC Radio Scotland's Good Morning Scotland programme why he would not be in favour of a strong fiscal alliance with an independent Scotland, Mr Jones said: "I just don't know how this works.
"If you have a currency union, who decides on monetary policy? You've got two governments potentially with a view on that."If you have a currency union, who decides on monetary policy? You've got two governments potentially with a view on that.
"It's a very messy system from Wales's point of view. I'd be very, very worried about any currency system that involved the need to get agreement from different governments.""It's a very messy system from Wales's point of view. I'd be very, very worried about any currency system that involved the need to get agreement from different governments."
Export 'strength' 'Common-sense'
He predicted that this would "increase problems", for example if there were to be a financial crisis. He predicted that this would "increase problems", for example if there were to be another financial crisis.
But SNP MSP Linda Fabiani insisted a sterling area would be desirable for both Scotland and the UK following a "Yes" vote. But Mr Swinney insisted a sterling zone was the "common sense" approach for future trading between the two countries.
She added: "The chairman of the No campaign, Alistair Darling, described a sterling area between an independent Scotland and the rest of the UK as 'logical' and 'desirable', which indeed it is. Speaking to BBC Scotland, he said: "I don't understand the perspective that Carwyn Jones has set out.
"And Scotland's export strength, including North Sea oil - underlined by new export figures - would be to the huge benefit of the sterling area, including Wales. "It makes eminent economic and practical sense for us to share the same currency - that's the proposition at the heart of the sterling zone idea."
"Just last month Carwyn Jones claimed that he couldn't provide any examples of devolution working for Wales, so this sudden turnaround just a few short weeks later is simply not credible." In the event of a "Yes" vote, he said, the SNP would "expect the the UK government respect the currency position that we've set out".
Further devolutionFurther devolution
In his speech, Mr Jones called for changes to the way the three devolved governments in the UK - Wales, Scotland and Northern Ireland - are funded.In his speech, Mr Jones called for changes to the way the three devolved governments in the UK - Wales, Scotland and Northern Ireland - are funded.
He told Good Morning Scotland that Wales was currently underfunded by £300m.He told Good Morning Scotland that Wales was currently underfunded by £300m.
Earlier this week, the Treasury responded to the Silk Commission on the devolution of financial powers to Wales by announcing that Welsh ministers would get tax-varying powers, the full devolution of business rates and early access to borrowing powers.Earlier this week, the Treasury responded to the Silk Commission on the devolution of financial powers to Wales by announcing that Welsh ministers would get tax-varying powers, the full devolution of business rates and early access to borrowing powers.
Mr Jones told the audience in Edinburgh that the agreement showed that further devolution for Scotland could be possible if it chose to stay within the UK.Mr Jones told the audience in Edinburgh that the agreement showed that further devolution for Scotland could be possible if it chose to stay within the UK.
He said: "To my mind to be a unionist in the 21st Century is to be a devolutionist."He said: "To my mind to be a unionist in the 21st Century is to be a devolutionist."