More than 100 business leaders have voiced their skepticism over Scottish independence, arguing a clear case has yet to be made. The heads of UK’s largest businesses said the outcome of the September 18 referendum will affect generations to come.
In an open letter in the Scotsman newspaper 132 businessmen argue that
Scotland, which has a $250 billion economy and a population of
just over 5 million, is better off sticking with Britain’s $2.5
trillion economy and 63 million people.
“Uncertainty surrounds a number of vital issues including
currency, regulation, tax, pensions, EU membership and support
for our exports around the world – and uncertainty are bad for
business,” the letter, signed by a sizable number of
Scottish company heads, says.
The letter argues that Scotland’s recent success; record growth
in investment and high employment are both connected to
integration with the UK, and that separation would put progress
at risk.
“The United Kingdom gives business the strong platform we must
have to invest in jobs and industry. By all continuing to work
together, we can keep Scotland flourishing,” the business leaders
wrote.
The open letter was organized by Keith Cochrane the chief
executive of the Glasgow-based engineering firm Weir Group, who
joins a growing coterie of businesspeople publicly speaking out
on the issue, but in a personal capacity.
“Our conclusion is that the business case for independence
has not been made.”
On September 18 Scotland will vote “yes” or “no” to ending its
more than 300 year union with England.
A second televised debate was held on Monday between First
Minister of Scotland and leader of the Yes Scotland campaign Alex
Salmond and Alistair Darling who leads the Better Together
campaign.
Banks weigh in
The chairman of HSBC Holdings plc – the world’s second largest
bank – Scottish-born Douglas Flint, recently wrote a column in
the Daily Telegraph warning of the financial
dangers of Scotland’s independence
Flint warned of massive capital flight that could ensue after
Scotland is forced to leave sterling, which Flint describes as an
“anchor of financial stability.” HSBC is a British multinational
bank headquartered in London.
However, former Royal Bank of Scotland (RBS) chief Sir George
Mathewson said that independence is an “opportunity not a threat”
to business, and that most “Scottish” banks already have stronger
ties to London.
“Banks such as RBS and Lloyds Banking Group have strong Scottish
connections but they can scarcely be described as Scottish banks.
In reality they are run from London, and that is where they are
regulated. The customers, assets and ownership are global, even
if the holding company happens to be registered in Edinburgh,”
Mathewson wrote in a Financial Times op-ed.
In 2008, the British government bailed out RBS, as well as HBOS –
a direct subsidiary of Lloyds Banking Group – Scotland’s two
largest banks.
Mathewson estimates that the UK government already owns 80
percent of RBS after the bailout. Unconfirmed reports from
bankers at RBS have said it will switch headquarters to London in
the case of a “yes” vote.
If the referendum goes through, an independent Scotland would be
expected to settle its share of government debt and make any
necessary reimbursements, both decisions which would have to be
made by the new Edinburgh government.
Together- Lloyds Banking Group, Royal Bank of Scotland (RBS),
HSBC and Barclays – dominate the UK’s annual £10bn banking
sector.
RBS was founded in Edinburgh in 1727, and before the 2008 crisis,
was one of the largest banks in the world.
Whose oil is it?
CEOs from the UKs top oil companies, Anglo-Dutch multinational
Royal Dutch Shell and London-based BP, have both spoken out
against Scottish independence.
Scotland has claimed the nation of 5 million will benefit from
reclaiming North Sea oil and gas reserves, which Alex Salmond has
said would be worth £300,000 for every Scottish resident.
Ben van Beurden, the CEO of Royal Dutch Shell said he prefers Scotland remain part of the
United Kingdom due to the risk and uncertainty it would present
to the energy industry.
BP CEO Bob Dudley warned his company would face higher costs amid
currency uncertainty if the referendum were to pass.
The North Sea oil shelf lies under Scottish waters but is mostly
extracted and operated by UK companies. If Scotland were to gain
independence, Scottish oil and gas groups Cairn Energy, Dana
Petroleum, Britoil, and Wood Group might have a chance to
develop. The lucrative oil and gas industry is estimated to be
worth over £200 billion.
Article source: http://rt.com/business/183056-business-open-letter-scotland-independence/
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