Reform of the financial system is needed to deliver on independence vision
IN her column in yesterday’s paper (“May election must be about more than securing indy, we need a vision”), Lesley Riddoch called for a debate about the vision for Scotland and what sort of society we want. She goes on to discuss several elements of such a vision including how we recover from the Covid pandemic, the green transition, energy, tackling inequality, and land reform. She also talks about tax reform.
Unfortunately, like so much discussion about what we want Scotland to become through independence, there is no discussion about how we are going to actually deliver all these national aspirations. I have yet to detect anywhere within the independence movement any discussion about reform of the financial system we need to have in order to bring all these things about.
READ MORE: Lesley Riddoch: May election requires more vision than just ‘independence’
I am sure Lesley is an advocate for a Scottish currency but she makes no mention of this essential condition for delivering whatever vision we have for Scotland’s future. Whilst the reform of taxation will have an important role to play in helping shape the kind of society and economy we want, the fact is that taxes take money out of the economy. We also need to discuss how we put money into the economy and for what purposes.
Having our own currency means having our own central bank. The central bank exists to provide funding to the government to spend in the economy, and what money is spent on is a matter for democratic decision-making. But we also have to consider what the financial system looks like and how it works, because that controls how money flows into the economy. So what is the role of the private banking sector? Do we want to continue with a small number of large banks which are controlled by shareholder interests? What role should local banks and mutual banks have (eg credit unions)? What about a National Investment Bank?
We also need to consider what our pension funds do with our money. The pension funds in which Scottish citizens have their savings control vast amounts of capital. UK pension funds control capital which amounts to 123% of UK GDP – it seems very likely that Scottish citizens’ pension assets equate to a similar percentage of Scotland’s GDP. So what is being done with this capital? Is it being invested to provide capital to businesses that create the employment and the wealth we all depend on? No, it isn’t – most of it is “invested” in financial speculation. As a result financial markets have lost all relevance to the real economy.
If we want to have a serious discussion about how to deliver a vision for the future then we must have a serious debate about the future of our financial system.
Jim Osborne
Convenor of the Scottish Banking & Finance Group
I FEEL that when a article covers the issue of the tiresome repetitive “once in a lifetime” phrase, it confirms how seriously ineffective repudiation has been on the subject over many months (Once in a generation phrase misused, March 18).
Additionally, we are now past the mid-point of March and even despite conversation continuing to remain largely consigned to telephones and social media, we have absolutely no clarity from the Scottish Government on the position of the security of state pensions and also the subject of currency plans post-independence.
READ MORE: Tommy Sheppard says ‘once in a generation phrase’ misused in indyref2 debate
Similarly there is no current statement on the subject of the increase in nuclear munitions planned for Faslane or the proposed dumping of radioactive waste between Scotland and Northern Ireland.
Repudiation and assertion covers a wide remit of high-priority subjects. Might we hear something soon?
JD Moir
Aberdeen
Read More: Reform of the financial system is needed to deliver on independence vision