Royal Highland Show 2014: CAP and currency dominate independence debate

The two sides in the Scottish independence debate have locked horns on currency, market potential and the CAP, during a debate at the Royal Highland Show.

The no to independence, Better Together campaign began the debate at the Royal Highland Show with an attack on currency.

Tory MP for Orkney, Alistair Carmichael, said a split would mean Scotland lost the pound and with it a slice of the UK food market.

“The pound is a stable currency and gives us easy access to the UK market,” said Mr Carmichael.

“Scotland sells 70% of its beef, lamb and milk into that market. So we sell twice as much to the rest of the UK as we do to the rest of the world. Walk away from that at your peril.”

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Backing up his argument he quoted advice from the permanent secretary to the chancellor George Osborne, which warned against a currency union between the UK and an independent Scotland.

But rural affairs minister Richard Lochhead, for the Yes Scotland campaign, dismissed the argument saying Scotland would keep the pound after independence.

“Keeping the pound is in the interests of the whole of the UK. There would be a huge economic cost to businesses south of the border if we didn’t adopt a currency union. Westminster would not allow that to happen to businesses in England.”

Broadening the argument to Europe and Scotland’s likely accession to the EU Mr Lochhead said: “Staying as part of the UK leaves us without a voice in Europe.

“The UK government’s negotiations have left us with the lowest rate of CAP support in Europe.”

“Scotland sells 70% of its beef, lamb and milk into that market. So we sell twice as much to the rest of the UK as we do to the rest of the world. Walk away from that at your peril.”
Alistair Carmichael,Tory MP for Orkney

He added that he believed Brussels would allow a swift renegotiation for Scotland to take its place as an independent member state.

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“Europe needs us too. We produce 60% of the EU’s oil.

“A Scotland outside Europe would spell pandemonium for the other member states who could no longer fish in Scottish waters.”

“No” campaigner and Aberdeenshire farmer Peter Chapman joined the debate rejecting Mr Lochhead’s view on a swift return to Europe.

“It would take five to eight years for Scotland to negotiate its return. Even then there would be conditions attached by Brussels.

“One of those conditions would be to adopt the Euro,” said Mr Chapman.

He also speculated that Scotland would be forced to accept a CAP support rate for farmers set at 25% of the current amount alongside other newly acceded member states.

“It could 10 to 15 years before support returns to the full rate,” he said.