MICHAEL Russell has launched a blistering attack on the UK Government and its “lunatic prospect” of a No-Deal exit from the European Union.
The Constitution Secretary told MSPs that when he last addressed them on the readiness of the transition period, it was “scarcely believable” that with just 23 days to go we knew nothing about how the UK would trade with the EU post-Brexit.
However, yesterday he said: “Now, with a mere eight days to go and still no outcome I would say that my reaction – and that of almost everybody else – is that we are now in the realm of the unbelievable.”
Russell said time had run out for Westminster to approve legislation before Christmas and for Holyrood to consider the necessary legislative consent to aspects of any deal, although in practical terms the earliest that can happen is next Wednesday.
“The evidence of the last few days tells us not only that the pressure of the pandemic is increasing again, but also that the UK Government’s refusal to extend transition – despite all the pleas – was utterly foolish, reckless, arrogant and very damaging,” he said.
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“In addition the last 48 hours remind us of the dependence of our supply chains and our way of life on the closest of trading links with the EU and show that any action which disrupts that has severe consequences.”
He said if there is no deal, disruption would resume, adding: “That is one of the many reasons why a No Deal is a lunatic prospect and anyone who asserts in any part of these islands will ‘prosper mightily’ in such circumstances is either woefully ignorant or deliberately deceiving.
“For a prime minister to do so beggars belief.”
The Constitution Secretary said that even with a deal – and the lowest of deals was all that could be achieved because of the UK’s red lines – there will be disruption to our trade and a major change in our status and relationship with other countries.
Deal or low deal would see “a diminution in our safety and protection” as we would be outside the Schengen system, meaning Police Scotland “will be less able to combat criminality at speed” and we would find it harder to ensure foreign criminals face justice in Scotland with our loss of the European Arrest Warrant.
Food prices will rise and range and availability could be affected, particularly in the early days after December 31; it will be harder for Scots to live and work in the EU because of new visa requirements and there will be a shortage of labour in some key Scottish sectors, which will worsen as the growing season starts. There will also be, said Russell, an inevitable drop in our GDP: “Even in the very best case scenario of a basic trade agreement outcome, our modelling shows that Scottish GDP is estimated to be 6.1% lower by 2030 compared to continued EU membership. This equates to a cost to each person in Scotland of an equivalent to £1600.
“A catastrophic exit on [World Trade Organisation] WTO terms only, could lead to a loss of up to 8.5% of GDP in Scotland by 2030 compared to continued EU membership – equivalent to £2300 per person. My definition of ‘prospering mightily’ does not include losing £2300 for every man, woman and child in Scotland.”
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Russell said Scottish Government resilience arrangements were in place to deal with the risks of Brexit, Covid-19 and winter weather and the focus was now on protecting people, imports and essential exports, and minimising economic impact.
They had also tried to engage constructively with the UK Government, but he warned: “Regardless of whether we exit transition with a low deal or No Deal, jobs and living standards will be hit hard.
“And there are many things that we still simply do not know, though they will change in eight days’ time ... Scotland did not vote for any of this and it is with profound and deep regret that we find ourselves in this position today of all days and at this difficult time of all times.
“The solution for Scotland, of course, is to choose its own future as an independent nation within the EU and we can decide on making that choice in less than five months at the Holyrood election.”
Russell said the Scottish Government would redouble its efforts to make sure that all our neighbours understood our desire to aspire to a better future and work towards achieving it.
He added: “There are still difficult times ahead but we believe we are as best prepared for them as we can be and that despite the present darkness we should look forward with anticipation and confidence to our future.”
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