'Yes movement must adopt a new line on currency'

There are those who say Yes DIY should not let Noes set the agenda, but that ignores the sad fact that the media are overwhelmingly against independence and will have their own agenda, with the currency issue front and centre.

To its credit, one local Yes organisation has decided to confront the currency matter head on. Yes Edinburgh North and Leith (YENL) is a large, highly active independence supporting group formed in early 2013.

The group told The National: “We are very proud to say that our area voted Yes in 2014, including some parts that polled at more than 65 per cent in favour of independence. We have focused our time since on trying to ‘act like we own the place’, plotting, planning and preparing for next time.”

At its March 2018 meeting, YENL members agreed that it would further their campaign aims if they took a position regarding what currency an independent Scotland should use.

They told the Yes DIY hub: “Following a lively and informed discussion on the different options (such as a Scottish currency, sterlingisation and the euro), the meeting voted unanimously in support of setting up a Scottish currency. Following the democratic principles of our movement, so well set out by Yes Kelty in the Indy Pledge, a draft statement was circulated online for further comment.”

Here’s an excerpt from the final position statement: “Yes Edinburgh North and Leith believes that the economy and prosperity of Scotland are best served by creating its own currency, supported by a Scottish central bank. It urges the Scottish Government, after a vote for independence, to oversee the transition, as soon as practically possible, to a Scottish currency, preferably on the first day of independence.

“For both economic and campaigning reasons we believe it is crucial we have a simple, clear answer to the simple, yet vital question: ‘What currency will we use?’. Many voices have argued that the 2014 referendum campaign was severely damaged by stating that an independent Scotland would continue to use sterling.

“In the mind of the voter, however, this belongs to Britain, leaving a key plank of our economic case in the hands of our opponents. Their refusal to agree undermined the credibility of our campaign – perhaps fatally. It is vital we do not repeat these mistakes and must campaign on a currency position that is economically justifiable, is understood to be under our control to deliver, supports the notion of self-determination hence representing the normal position for an independent country. A Scottish currency is the only option that meets these three criteria.

“We were very concerned to read in The National that the Growth Commission’s preferred position involves a period of sterlingisation before moving to a Scottish currency only after a series of economic tests have been satisfied. While perhaps designed to make its economic plans look prudent, it serves to increase the complexity surrounding the currency question and will increase uncertainty in the minds of the voters.

“By campaigning on a three-part currency solution, we are inviting prolonged and difficult questions. An answer to a question that leads to many more questions, is a poor answer. This lack of clarity will be easily capitalised on by our opponents to seed even greater uncertainty and undermine voter confidence in an independent Scotland.

“We argue that for Scotland to truly function and flourish as an independent state, it needs at its disposal, the full range of monetary and fiscal levers. Many of these, such as setting interest rates and determining money supply, are dependent on it having its own currency and central bank.

“A Scottish currency is the only option that provides us with the freedom to set our own macroeconomic policies that both support our desired economic direction and respond to potential challenges and opportunities.”

YENL says it wants to stimulate debate. Looks like it just has.