This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/scotland/6079026.stm

The article has changed 6 times. There is an RSS feed of changes available.

Version 3 Version 4
McConnell warning on extra powers McConnell warning on extra powers
(about 2 hours later)
First Minister Jack McConnell is expected to warn that Holyrood will "subside into inertia" if MSPs continue to obsess about gaining new powers. First Minister Jack McConnell has warned that Holyrood will "subside into inertia" if MSPs continue to obsess about gaining new powers.
Delivering a lecture on Tuesday, he will strongly endorse the existing devolved settlement. Delivering a lecture on Tuesday, he said the existing devolved settlement gave the "best of both worlds".
However, two leading economists have argued that the Scottish Parliament must gain more control over tax.However, two leading economists have argued that the Scottish Parliament must gain more control over tax.
Their report comes in the wake of the SNP, the Conservatives and the Lib Dems lobbying for more tax-varying powers. And his comments were criticised by the SNP and the Conservatives, who said he was burying his head in the sand.
In an interview with BBC Scotland ahead of the lecture, Mr McConnell dismissed calls for more tax-varying powers as a "fad".In an interview with BBC Scotland ahead of the lecture, Mr McConnell dismissed calls for more tax-varying powers as a "fad".
To abandon devolution here in Scotland after just seven or eight years... would be to demonstrate quite shocking irresponsibility Jack McConnell First Minister
"My job as first minister and leader of the Labour Party in Scotland is to say what's right, and not necessarily is the current fad," he said."My job as first minister and leader of the Labour Party in Scotland is to say what's right, and not necessarily is the current fad," he said.
"I think that in Scotland today we can see the benefits of devolution, of home rule."I think that in Scotland today we can see the benefits of devolution, of home rule.
The tide of change has now engulfed the arguments for the status quo Jim Mather SNP enterprise spokesman "But we also know that in Scotland, we get a union dividend from our close working relationship with the rest of the United Kingdom."
"But we also know that in Scotland, we get a union dividend from our close working relationship with the rest of the United Kingdom," he said. Giving the annual JP Mackintosh lecture in Haddington, East Lothian, the first minister said the Scottish Parliament now had "a whole welter of powers" at its disposal.
Mr McConnell will argue in his speech at the annual JP Mackintosh lecture in Haddington, East Lothian, that devolution already has substantial powers related to the economy and public services. "It can't be other than sensible for us to make the fullest possible use of those powers before demanding lots more," he argued.
He will say that MSPs should focus on those things instead of persistently demanding more powers. "For if such demands become a persistent feature of Scottish politics, and there are those who want this to be so, then we'll sink all too quickly into a collective - and wholly self-imposed - inertia."
Mr McConnell believes that otherwise the devolution settlement will sink into political paralysis. 'Running scared'
But the case for more tax-varying powers was being made on Tuesday by Glasgow University economist, Professor Ronald MacDonald and an American colleague, Professor Paul Hallwood, of the University of Connecticut. He said Scotland was seven years into "a great enterprise, a great venture".
"To abandon devolution here in Scotland after just seven or eight years - to declare the game a bogey and to take ourselves off in a huff - would be to demonstrate quite shocking irresponsibility," said Mr McConnell.
SNP leader Alex Salmond said Labour was running scared of a debate on independence.
Jack McConnell is acting like a political ostrich, with his head buried in the sand Annabel GoldieConservative leader
"They are the wee fearties of Scottish politics," he claimed.
"Their unionism is backward-looking and inward-looking.
"Labour want Scots to believe the incredible proposition that we are the only country in the world that isn't capable of flourishing with independence."
Scottish Conservative leader Annabel Goldie said: "Jack McConnell is acting like a political ostrich, with his head buried in the sand.
"Scotland urgently needs fresh thinking and new ideas.
"We do not close our minds to new powers but argue that there should be a mature and reasoned debate about the way forward."
Last week a think-tank set up by the Conservatives called for Holyrood to be handed greater powers on tax-varying.
Control spending
The case for more tax-varying powers was made on Tuesday by Glasgow University economist, Professor Ronald MacDonald and an American colleague, Professor Paul Hallwood, of the University of Connecticut.
They said that, under the current block grant from Westminster, Holyrood had no incentive to grow the economy or control spending.They said that, under the current block grant from Westminster, Holyrood had no incentive to grow the economy or control spending.
'Better off without London' Their report, in the Fraser of Allander Institute Quarterly Economic Commentary, restates their case for more powers after an earlier paper this year came in for criticism.
The SNP believes there is enough evidence to claim that Labour is the only party which does not believe that Scotland should have control over its own revenues and spending.
Last week a think-tank set up by the Conservatives called for Holyrood to be handed greater powers on tax-raising.
A commission has recommended to the Lib Dems that Holyrood be responsible for raising the money it spends.A commission has recommended to the Lib Dems that Holyrood be responsible for raising the money it spends.
SNP enterprise spokesman Jim Mather said the paper by Prof MacDonald and Prof Hallwood heightened the case for independence.
The Scottish Executive gets block grant funding from Westminster
The academics' report in the Fraser of Allander Institute Quarterly Economic Commentary restates their case for more powers, after an earlier paper this year came in for criticism.
The paper criticised the current funding system for not serving Scotland's economic and financial interests.
Mr Mather said: "The tide of change has now engulfed the arguments for the status quo.
"More and more people believe that Scotland and Scottish families will be better off without London government holding their purse strings."
Think tank
Former Holyrood Presiding Officer Lord Steel said that a commission under his chairmanship had recommended to the Lib Dems that Holyrood be responsible for raising the money it spends.Former Holyrood Presiding Officer Lord Steel said that a commission under his chairmanship had recommended to the Lib Dems that Holyrood be responsible for raising the money it spends.
He said: "We were greatly influenced by the experience of Ireland in boosting their economy with taxation policies markedly different from those of Westminster."He said: "We were greatly influenced by the experience of Ireland in boosting their economy with taxation policies markedly different from those of Westminster."
The Conservative think tank on the issue included both Tory and non-Tory figures and was chaired by Douglas Osler, former HM senior chief inspector of education in Scotland.
Its report said: "Lowering tax rates would result in higher tax income and encourages investment and innovation."