ECONOMISTS EXPOSE CALMAN FLAWS.

ECONOMISTS EXPOSE CALMAN FLAWS.

MEMBER OF CALMAN EXPERT GROUP CONDEMNS FINANCE PROPOSALS

SNP MSP Dr Alasdair Allan today highlighted criticisms by a group of economists, including a member of the Calman Commission’s Independent Expert Group, of the Commission's taxation proposals for failing to consider full fiscal autonomy and for recommending a system that will “do little to enhance accountability” and offers few advantages but “several disadvantages.”

Writing in the Scotsman a series of Scottish economists, including Andrew Hughes Hallett, a member of the Calman Commission’s Independent Expert Group, and two Professors from Glasgow University, where Sir Kenneth Calman is Chancellor, have condemned the Commission’s failure to consider fiscal autonomy as a “fundamental mistake” and state that “Only under fiscal autonomy can the accountability of the Scottish Parliament properly be entrenched.”

They described the Calman Commission’s proposals as “at best an opportunity missed and at worst a recipe for economic instability in the future.”

Dr Allan said;

“The SNP believe that Scotland needs full fiscal autonomy – including our 90 per cent share of North Sea revenues – and the Calman Commission, as these leading economists show, is totally wrong to reject financial responsibility for Scotland.

“It is the “fundamental mistake” at the heart of the financial proposals from Calman that they failed to address the issue of fiscal autonomy and ignored Scotland’s valuable oil and gas resources.

"The Calman Commission’s own expert group said that Scotland was entitled to a 90 per cent share of UK oil revenues and that there would be a benefit in having a Scottish oil fund, similar to the Norwegian fund now worth more than £200 billion. That 90 per cent share is worth around £30 billion over the next five years, at a time when the UK Government is planning to cut £500 million a year from Scotland’s budget.

“Even the proposals that have been brought forward appear ill thought through and lacking in detail.

“The SNP have a clearly defined policy – independence and equality for Scotland – and we are very confident that it will prevail in a referendum when the people have the opportunity to choose. That is the best and simplest solution for Scotland. Anything less risks being a messy fudge.”