Scotland: Independence — Question

Part of the debate – in the House of Lords at 3:07 pm on 29th January 2014.

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Photo of Lord Wallace of Tankerness Lord Wallace of Tankerness Lords Spokesperson (Attorney General's Office), The Advocate-General for Scotland, Deputy Leader of the House of Lords, Lords Spokesperson (Scotland Office), Liberal Democrat Leader in the House of Lords 3:07 pm, 29th January 2014

My Lords, as the Chancellor of the Exchequer has previously said, the current arrangements of a full monetary, fiscal and political union bring benefits to all parts of the United Kingdom. I certainly have noted that the Governor of the Bank of England today has highlighted the principal difficulties of entering into a currency union—losing national sovereignty, the practical risks of financial instability and having to provide fiscal support to bail out a foreign country. That is why we have consistently said that, in the event of independence, a currency union is highly unlikely to be agreed so the Scottish Government need a plan B. I agree with the noble Lord, Lord McConnell, that people who, from experience, have an important contribution to make should make it. Indeed, this month, Better Together has published a very good pamphlet which quotes many people showing how untenable the position of the Scottish Government is on the issue of the currency.