Borrowing essential to create jobs

SNP MSP Shirley-Anne Somerville has welcomed the SNP Spring Conference's overwhelming support for a resolution to help boost job creation in Scotland by extending responsibility for borrowing to the Scottish Government. The motion recognises the lack of borrowing powers Scotland has and calls for the negotiation of an amendment to the Scotland Act to allow greater fiscal autonomy for Scotland .

Commenting Ms Somerville said:

"In these troubled times we need as many levers as possible to help boost jobs and investment in Scotland. That is why the responsibility for the Scottish Parliament to borrow is even more important in these times.

"Scotland has what it takes to get through the recession and needs the tools to do so. There is a compelling case for greater fiscal autonomy for the Scottish Parliament and opposition to borrowing powers has little to no grounds to stand on.

"With Labour having joined the campaign for more borrowing powers for the Scottish Government the case is now overwhelming and there is little reason for further delay in extending this responsibility to Scotland in these troubled economic times.

"With today's motion on fiscal autonomy it will be interesting to see positive engagement from Labour on the wider issue.

"The Scottish Government must have the responsibility to take the right decisions to reflate the economy according to our own distinct circumstances.

"The examples of Northern Ireland and local councils having the power to borrow shows that the case against borrowing powers is fundamentally weak

"Scotland needs additional borrowing responsibilities to allow greater flexibility for the Scottish Government in these difficult economic times."

Notes:

1. The motion as passed is as follows:

FISCAL BORROWING POWERS

Conference notes the restraints a lack of fiscal borrowing powers has on the ability of the Scottish Government to take forward ambitious capital projects that would both be a boost to employment and the economy in the current economic climate and deliver the essential infrastructure Scotland needs to thrive; notes particularly that the Scottish Government's plans to spread the cost of the essential new Forth crossing over 20 years have not been agreed by the UK Government; recognises that Scotland's local authorities, the Northern Ireland Assembly, and Network Rail have borrowing powers; considers that this is one of a number of constraints that prevents Scotland from realising its full potential; and calls upon the Scottish and UK Governments to negotiate an amendment to the Scotland Act to allow greater fiscal autonomy for Scotland.