Currency Resolution for SNP Conference.

We in the Scottish Currency Group invite anyone in the SNP and any MPs, MSPs, Branches and CAs that have not already done so, to support the following resolution for the October SNP Conference. This will have the effect of disposing of any reference to ‘Tests’ and will re-affirm the April 2019 view of Conference that we must complete the preparations and be ready to introduce our own currency as soon as practicable after Independence Day. It is simply a matter of fact that the exact date, how long a one-to-one period there should be, and how fast we transition to a floating currency will be decided by the post-Independence government (which might not be SNP, of course, as there is almost certain to be an election around Independence Day). As the supporting statement says, we have worded things as we have so that what is essential does get done: establishing the Scottish Reserve Bank (www.reservebank.scot), designing and printing bank notes, setting up the S£ payments network, etc) so that the post-Independence government is able to introduce the S£ and not end up in a Slovak style chaotic emergency currency introduction. The wording will, we hope, get the SNP Leadership on board and put an end to any further discussion of sterlingisation, or using the ‘just use the English pound for decades in the campaign. The SCG has absolutely not changed its view that ‘as soon as practicable’ means a few months, and we shall be continuing to make that clear, especially after the Indy Vote is won. We have no doubt that the macro-economic realities of actual Independence will ensure those future Ministers push the button to launch the new currency within those few months after Independence.

CURRENCY IN AN INDEPENDENT SCOTLAND

Conference notes that significant changes have occurred since the Sustainable Growth Commission report was prepared and resolutions on its currency proposals debated by Conference: specifically, Scotland’s exclusion from the European Single Market following Brexit; and the massive government spending response to stabilise the economy during the Covid pandemic, only available to states with their own currency.

Conference further notes that, while acknowledging the need for responsible economic management, there are compelling advantages to Scotland having its own currency after independence: in particular, giving the government of Scotland as much freedom as possible in formulating economic policy; avoiding any reliance on borrowing in a foreign currency; and applying to re-join the EU should that be the wish of the people of Scotland.

Conference believes that changing circumstances, and the clear advantages from Scotland issuing its own currency justify a further refinement of the Party’s policy on currency, so that a post-independence Government would be able to introduce a new Scottish currency as soon as practicable following formal independence.

Conference therefore calls on the Scottish Government to commit to taking all measures needed to permit the introduction of a Scottish currency, including the establishment of a Scottish Central Bank during the transition period between a Yes vote and formal independence; while leaving the timing and detailed implementation of a Scottish currency to the post-independence Government of Scotland.

ends.

We will be doing a public launch of ‘The Road to the Scottish Currency’ report in the next month or two. Glossy printed copies have already been provided to the MPs, MSPs, Ministers and senior civil servants. The public version will add another section with a Q&A that will answer all the common questions that have come up in the more than 50 talks we have done on the Scottish Currency. Such as ‘What happens to my mortgage?’

SUPPORTING STATEMENT

This resolution revisits Party policy on currency arrangements after independence. It endorses existing policy that Scotland should adopt a separate currency as soon as practicable after independence, while recognising that the post-independence Governments of Scotland will be in the best position to take decisions on policy implementation according to future circumstances.

The resolution therefore emphasises that post-independence Governments should have unconstrained discretion to take decisions both on the timing of the introduction of the new currency and on the exchange rate policy to be followed (including whether the currency should be ‘pegged’ to another currency for an initial period or allowed to ‘float’ on the foreign exchange market). This formulation reflects the conclusions of the Scottish Currency Group’s report ‘The Road to the Scottish Currency’ and can accommodate different views which have emerged within the independence movement.

To ensure that all options are available to the post-independence Government, a Scottish Central Bank should be established during the period between the independence referendum and the formal declaration of independence. This will give it maximum flexibility to decide when conditions are appropriate for the introduction of a new currency, taking account of the economic position at the time.

While the resolution notes that having a separate currency will enable an independent Scotland to apply to re-join the EU, it does not pre-empt decisions on European policy (including whether membership of EU or EFTA should be pursued).

MY COMMENTS

This is going to be a important topic in the period ahead. It is crucial the SNP get this right. The sooner it is widely understood that Scotland, in line with many other countries, plan to operate our own currency the much more difficult it becomes to conflate this issue as happened in 2014. Unionists will have the much more difficult task of explaining why a rich nation like Scotland cannot achieve what numerous other countries, with far fewer resources have been able to achieve with some ease. The debate becomes why not, rather than us seeking to convince people that some unwanted deal with England is the better option.

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11 thoughts on “Currency Resolution for SNP Conference.

  1. It will get rejected by the Cult Leader and then adopted next year as her idea. However She cannot let the “little people” think they can vote on such issues. Who knows where that could lead!
    Give them a Selfie not a vote.

    Liked by 11 people

  2. Yes, it should, but I will eat my hat if they do. Nicola has shown many times that if it’s not her idea, it’s going nowhere. She is not a team player and although I’d love to be proved wrong, I’m extremely sceptical. I don’t think we’ll get anywhere while she and her cosy pals are in charge.

    Liked by 8 people

  3. There are two different audiences:

    Political, Economic and Business Communities:

    a) Certainty – important for business so be clear that it will be a Scottish currency.
    b) Monetary policy freedom – control of money supply (via central bank) and demand management (via interest rates)
    c) Trade – flexibility, especially with regards to Europe, is key so EFTA/EEA and EU both remain options

    Everyday Ordinary Folk:

    The Frequently Asked Q & A is important here covering mortgages, pensions and the like. It should also be made clear that Independent countries having their own currency is the norm (unless, sometimes, when in a trading bloc like the EU … which we are not, at least at the moment and which will be the case immediately post-Independence).

    I think it would also be useful just to point out that a country can use anything it want as currency. Everybody likes to ‘currency’ but when it comes down to it the money tokens have 3 main purposes:

    The first is as a medium of exchange. This facilitates both domestic transactions as well as external exchange (of imports and exports of both goods and services). Without currency we would revert to a system of barter which is hardly ideal and highly inefficient.

    The second use of money is as a store of value. People put money away for a rainy day i.e. savings and for future purchases. Assuming that inflation is under control then money/currency is an effective means of maintaining a stock of liquid funds which can be easily accessed as and when necessary.

    Thirdly money serves as a unit of account whereby the market value of goods and services can be valued and their relative worth compared.

    When establishing a currency it is the assets of the country namely its natural resources and the skills of its people that matters.

    Scotland has an abundance of fresh water, fossil fuel energy sources of oil and gas as well as renewable wind, wave and tidal power supplies. In addition it has a skilled pool of labour that has honed its ability over time to harness these resources. In general the workforce is educated, trained and ingenious as well as possessing a hard work ethic across all sectors of the economy.

    It is these characteristics that underpin the creditworthiness of a country and its currency.

    Other countries with less comparative advantages than Scotland have been able to set up a currency and create a central bank to manage monetary policy.

    THERE IS NO REASON WHY SCOTLAND CAN’T MANAGE IT.

    Liked by 9 people

  4. The Narrsisist must go for us to move forward on independence, I cant see anything but self preservation from Sturgeon. History will not be kind to her and rightly so. Dissolve the Union.

    Liked by 8 people

  5. Excellent resolution, pre-empts probably the only 2014 Project Fear scare story left. Of course we should have our own currency, I always thought so. Yes sterling is as much our currency as England’s but does anyone really think England (as UK and rUK) will really not use this lever sicne they will control BoE and monetary policy to scupper a newly independent Scotland

    Let’s see if this is booed off the stage by the Nicolytes though.

    Liked by 8 people

  6. Martin Keatings update

    Update on Peoples Action on Section 30

    Dear Peoples Action on Section 30 crew.

    I made you a promise back when the case was ongoing that this was not the end. I also made you a promise that we would re-evaluate as things moved forward.

    We took A LOT of criticism during the case, but with the First Ministers speech only a few days ago, it has now been proven that our position throughout the people’s action was 100% correct.

    Now we’re in the situation that the Scottish Government may very well be walking into a world of hurt, one party going up against the full resources of the UK treasury.

    Now is the point that I come back to you and put forward a proposition – two voices are better than one, and 11,000 are better than two.

    The process of the supreme court is such that it can allow third-party interventions in procedures. We’ve seen this before in the prorogation of parliament and Brexit cases.

    The only reason the court would not hear us in the past was due to standing, because the Scottish Government created the circumstances that the bill supposedly both existed and didn’t exist at the same time. That hurdle is now gone.

    None of the research or work we did is wasted. The Scottish Government will likely use a lot of it. However, we have an opportunity here to show the UK Supreme court that the free exercise of our democratic right to self-determination is not just some machination of a singular political party, but the will of the common person.

    On that basis, I am currently discussing the matter with our legal team as to whether we can finally have the people heard. I would be eager to hear your opinions on whether or not (with the extreme caveat that it would be based only on whether or not our counsel is sure we’d be heard) you would support our voice, our research and our arguments finally being heard as a third party interjection in the case which is about to call before the Supreme Court on whether or not it is constitutional for the Scottish Parliament to legislate on a second referendum.

    If your answer is no, then that will be the decision. But if your answer is yes, I will get to work with setting up a crowdfund on CrowdJustice and retaining counsel.

    You are welcome to express your views directly to me in an email to my personal address at MartinKeat@gmail.com

    Like

    1. I would urge caution. I am told it is a draft of a Bill that is being sent to the Supreme Court, the reason being that they could not get the Lord Advocate to agree it was legally competent, therefore making it impossible for it to be presented to the Presiding Officer in order to allow a full Bill to be created. It is highly unlikely the Supreme Court will considered a draft. This may well be an attempt to shift the blame from Nicola to the Supreme Court. I think you need the truth of this before involving yourself in further financial liability.

      Liked by 3 people

  7. Once again in these types of debates the key question in this case is – where is the money going to come from? There will be a net fiscal deficit, significant liabilities but where will the financial clout come from which prevents a run on the new Scottish Currency. If you have a Pension paid in UK £ is anyone seriously going to opt for. Scot punts. If you say you are going to force people to change it’s a huge vote loser.

    Like

    1. If you want answers to your negativity stay tuned. It’s a really weak position to seek to argue that uniquely Scotland cannot do what numerous countries, many smaller and poorer have managed to achieve satisfactorily. Desperate even. By the way I have run business and worked during the creation of a brand new currency and also a currency swop so I have some experience of this and I found both less than daunting.

      Liked by 3 people

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