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CBI chief sends strong message on Scottish independence

In a speech at the CBI Scotland Annual Dinner last night, director-general of the CBI John Cridland, said many businesses on both sides of the border are not convinced on independence.

Speaking at the event in Glasgow, with George Osborne in attendance, Mr Cridland said we should focus on the things Scotland and England want to do together.

He said: “For business, uncertainty is the biggest bogeyman of all. We do not want any more of it than is absolutely necessary.

“Here in Scotland the debate over independence - however necessary or merited that debate may be - is adding a thick layer of uncertainty.

“Reading the coverage, you could be mistaken for thinking that the only three issues are: when the referendum will be held; who’ll be able to vote; and what the phrasing of the question will be.”

Mr Cridland suggested it was wrong to focus on the differences in the relationship between England and Scotland,

He added: “We want effective transport, both within and across our borders. But would the same incentives be there in a separate future to share the costs in delivering high-speed rail to Glasgow and Edinburgh, or getting more ‘M’ all the way up the A1?

“And if people want to enjoy the benefits of our single market, we need to articulate better what these are, and so what’s on the line.

“There’s a raft of common laws and regulations which make operating across the different constituent parts of the union more efficient. So with corporation tax rates, company law, consumer protection, pensions and employment contracts we need to consider whether we want to act in concert, or apart.”

He finished by saying: “CBI Scotland Council is not convinced of the business and economic case for Scotland seceding from the union, and judges that businesses - Scottish, English, British - would lose out from the fragmentation of our UK single market.”

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James McLeary

James McLeary

They come bearing half-truths
The CBI Director-General, John Cridland, has come north to tell Scotland we shouldn’t be independent. He has every right to do so.

But what he has no right to do is use half-truths as the basis for his scaremongering.

I hear that Mr Cridland will tell the CBI Annual Dinner in Glasgow tomorrow night that the “immediate effects [of independence] would be profound, and in the short term costly. When Slovakia separated from the Czech Republic, it cost the country four per cent of its GDP in the following year.“

But what Mr Cridland won’t tell us is what happened next. In the years since independence economic growth in Slovakia has averaged 3.5% each year, compared to 1.9% for Scotland. Their growth rate has been almost double that achieved here. And that extra growth has a direct benefit for ordinary Slovak families - benefits like higher wages, more jobs, higher standards of living. You might call it the Slovaks’ independence bonus.

And this excellent economic performance covers the period of the financial crisis when we have been told it was better for Scotland to be part of the bigger UK. In fact, the Slovak economy only contracted for 1 year during the crisis, compared to two years for the UK and for Scotland. And over the past two years of recovery they have enjoyed growth rates of 4.2% and 3.3% compared to 1.3% and 0.4% here. You won’t hear the CBI talking about that!

In case you thought this story only applies to Slovakia, don’t worry the beneficial effect of independence can be seen elsewhere across Europe.

Lets take the countries in the EU that became independent in the early 1990’s (Slovenia, Slovakia, the Czech Republic, Estonia, Latvia and Lithuania). Over the past 20 years, the average annual economic growth rate for these six newly independent nations has been 2.9% - thats our growth rate plus half as much again. And remember, more growth means more jobs and opportunities, higher family incomes and a better standard of living.

So don’t believe CBI Director-Generals when they tell you Scotland should be happy with our lot. More of the same may suit a CBI boss in London and Tory ministers at Westminster, but it is bad news for families across Scotland.

It is time for something different. There is a better way forward for Scotland. We too can claim our own independence bonus as we use our huge resources, our own tax base and our fantastic international reputation to drive forward our economy and deliver the fairer and wealthier nation we all know, in our hearts and in our minds, that Scotland should be.

— Stephen Noon

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