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Holyrood clash over sterling zone

Holyrood clash over sterling zone

First Minister Alex Salmond has been branded a “fool” who appears to have no plan B for what currency an independent Scotland would use if it failed to strike a deal over the pound.

Scottish Labour leader Johann Lamont made the remark yesterday following claims that the Scottish Government’s white paper on independence would not include a pledge to retain sterling in a currency union with the rest of the UK in the event of a Yes vote in next year’s referendum.

SNP ministers, who insisted the document, which will be published later this month, would set out the government’s “definitive” position on currency.

A spokesman for the first minister refused to say if plans for an alternative currency option would be set out to counter the possibility of the UK Government rejecting a currency union.

Mr Salmond told MSPs he believed that a currency union was the best option for Scotland and England.

“The essence of the argument for the sterling area is it is in Scotland’s interest because England is our biggest customer, and it is in England’s interest because Scotland is England’s second-biggest customer.

He said he shared the opinion of former chancellor Alistair Darling – leader of the pro-UK Better Together group – who said the arrangement was “logical and desirable”.

But Ms Lamont responded that Labour MP Mr Darling thought the first minister “must have a hidden fall-back option because no one but a fool would go into a negotiation if they haven’t got a plan B.”

She added: “It would seem we have a fool here who has no plan B. Colin McKay, Alex Salmond’s chief strategist, told a conference this week, ‘We can not assert we can achieve a currency union with the United Kingdom’. The first minister’s chief strategist is clear – no cast-iron guarantee can be given.

“Given this rare moment of candour, can he now tell us what his plan B is if he is unable to negotiate successfully a currency union with the rest of the United Kingdom?”

Mr Salmond said Ms Lamont should wait until the white paper was published.

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