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Thread: Full Fiscal Autonomy FFA

  1. #1

    Default Full Fiscal Autonomy FFA

    Seemingly, Scotland's Deputy First MinisterJohn Swinney has backed his party's bid to have Full Fiscal Autonomy (FFA)included in the Scotland Bill.
    As he put it, "The moral of the story is where we can exercise distinctiveeconomic policies in Scotland, we can transform the economic performance ofthis country, and for me that is what fiscal autonomy is all about."
    Ok…that good………. the SNP want FFA, they should get it, then the shoutingis over ( bar for another independence referendum ) and we can see how we all get on and the sooner the better. Make a kirk or a mill of it, either way we willt hen see what / why economic policies they introduce and if they will transform the Scottish economy ( ok Swinney has no details or given no real details on an economic growth strategy but I assume that he must have or why shout for FFA ) . No one will ever know if the SNP with FFA can transform economic performance unless they actually get FFA, then we will all see, good economic performance /management will cement the SNP as the party of Scotland, a poor performance,involving cuts / mis management / poor economic growth, will be entirely down to them ( no Westminster to blame ) and like any other party if they are not successful, they will pay the price through the ballot box. So on those grounds I support FFA for Scotland....but Id like some more specific details, so if anyone knows, jump into this thread and give an indication of what the SNP plan
    Last edited by rob murray; 12-Jun-15 at 10:45.

  2. #2
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    That is absolutely what is meant by full fiscal autonomy Rob - to have all the levers that enable Scotland to grow its own economy in the best way for Scotland. The Smith Commission does not allow that. It is right to say that we have had some control over tax for some considerable time and not used that control but there are good reasons why we haven't done that. Mainly because we could only raise the basic rate of income tax only which would impact on the lowest paid in society and leave those on higher wages with no extra responsibility. That is contrary to what the SNP have talked about for the last ten years. That was one of the problems with Labour's offer of tax powers before the referendum - they would allow Scotland to increase taxes but not decrease them. If we are to have control over taxation then that has to BE control - rates, bands, and the ablity to vary it as is necessary.

    Full Fiscal Autonomy isnt like Independence - It depends on all sorts of things which at first thought would not seem to be important in FFA. For example, in order to properly have control of the welfare budget we will also need control of Scottish Jobcentreplus offices. Without that we cant influence how benefits are delivered for example or how sanctions are implemented which will impact on Welfare spending. With independence EVERYTHING is passed over on a specific date and with FFA there needs to be an understanding of how spending and budgets are impacted by everything else. And those other things will also need to be passed for control to the Scottish Government. That may take some time to negotiate and work out.

    You talk about cuts. The thing about cuts is that with FFA the Scottish Government can make decisions on where those cuts are to be implemented - just like the tax increases I was talking about before, but that also depends on having more influence over other things like the amount that Scotland is charged for UK wide projects. As an example of this we can look at the projects that Scotland is obliged to contribute today - lets say Crossrail. Cross Rail is a project based in London, affecting London and yet Scotland has to contribute to that project. There are others too - I dont have an issue with Scotland contributing to the repairs to the Houses of Parliament for example but i dont think that we shoud be contributing to things like Cross rail or HS2 when they dont impact at all on Scotland. These things will need to be negotiated and a new protocol decided upon where Scotland has some control rather than no control. If we arent spending on those sorts of projects then we have more money to spend in Scotland to help us to avoid cuts. If we have full fiscal autonomy then this issue needs to be up for negotiation which it is not at the moment.

    These are a couple of examples which show that FFA is more complicated that simply handing over the purse and saying "here you go - you do the shopping" and more complicated that Independence would have been. We are not getting Independence any time soon - that is clear and before anyone jumps on me and suggests that i am moaning and complaining and whining about it I am not. I am simply recognising that FFA is different than Independence and that we all need to understand that when discussing FFA because these are the things that prevent FFA happening overnight.

    I think we will need to see the details of the amendment before we can talk specifics so I look forward to next week. We do however already have the SNP manifesto from the General Elecction which sets out what the SNP wants to achieve for Scotland and is a good place to start if you are looking for specifics. If the amendment is passed next week then we should see that reflected in the Manifesto for Holyrood and so build on the 2015 manifesto to get more of the specifics that you are looking for. This amendment if passed is just the start of what will be a very long process
    Last edited by squidge; 12-Jun-15 at 11:05.

  3. #3

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    Quote Originally Posted by squidge View Post
    That is absolutely what is meant by full fiscal autonomy Rob - to have all the levers that enable Scotland to grow its own economy in the best way for Scotland. The Smith Commission does not allow that. It is right to say that we have had some control over tax for some considerable time and not used that control but there are good reasons why we haven't done that. Mainly because we could only raise the basic rate of income tax only which would impact on the lowest paid in society and leave those on higher wages with no extra responsibility. That is contrary to what the SNP have talked about for the last ten years. That was one of the problems with Labour's offer of tax powers before the referendum - they would allow Scotland to increase taxes but not decrease them. If we are to have control over taxation then that has to BE control - rates, bands, and the ablity to vary it as is necessary : NO NEED TO GO INTO SMITH COMMISSION...i HAVE STATED BRING ON ffa NOW

    Full Fiscal Autonomy isnt like Independence - It depends on all sorts of things which at first thought would not seem to be important in FFA. For example, in order to properly have control of the welfare budget we will also need control of Scottish Jobcentreplus offices. Without that we cant influence how benefits are delivered for example or how sanctions are implemented which will impact on Welfare spending. With independence EVERYTHING is passed over on a specific date and with FFA there needs to be an understanding of how spending and budgets are impacted by everything else. And those other things will also need to be passed for control to the Scottish Government. That may take some time to negotiate and work out. OK DIDNT UNDERSTAND HAT THANKS FOR CLARIFICATION

    You talk about cuts. IM NOT TALKING ABOUT CUTS, LETS BE ABSOLUTELY CLEAR ON THAT : SWINNEY HAS SAID THE FFA WILL ENHANCE ECONOMIC PERFROMANCE IN SCOTLAND, A BETTER ECONOMY = MORE TAX REVENUE / MONEY TO INVEST ( IN RENEWABLES ) MORE PEOPLE EMPLOYED. LESS NEED FOR BENFITS / WELFARE...READ THE POST IM TALKING ABOUT HOW FFA CAN DELIVER ECONOMIC GROWTH AND PROSPERITY The thing about cuts is that with FFA the Scottish Government can make decisions on where those cuts are to be implemented - just like the tax increases I was talking about before, but that also depends on having more influence over other things like the amount that Scotland is charged for UK wide projects. As an example of this we can look at the projects that Scotland is obliged to contribute today - lets say Crossrail. Cross Rail is a project based in London, affecting London and yet Scotland has to contribute to that project. There are others too - I dont have an issue with Scotland contributing to the repairs to the Houses of Parliament for example WHY WASTE MONEY ON THIS ? but i dont think that we shoud be contributing to things like Cross rail or HS2 when they dont impact at all on Scotland. AGREED These things will need to be negotiated and a new protocol decided upon where Scotland has some control rather than no control. If we arent spending on those sorts of projects then we have more money to spend in Scotland to help us to avoid cuts THE KEY ISSUE IM ON ABOUT IS ECONOMIC GROWTH GET THAT RIGHT AND THERE IS NO NEED FOR CUTS BY CREATING A HIGH VALUE HIGH WAGE, LOW TAX ECONOMY FAIR TO ALL. If we have full fiscal autonomy then this issue needs to be up for negotiation which it is not at the moment. OK THANKS FOR CLARIFICATION

    These are a couple of examples which show that FFA is more complicated that simply handing over the purse and saying "here you go - you do the shopping" and more complicated that Independence would have been. We are not getting Independence any time soon - that is clear and before anyone jumps on me and suggests that i am moaning and complaining and whining about it I am not. I am simply recognising that FFA is different than Independence and that we all need to understand that when discussing FFA because these are the things that prevent FFA happening overnight. OK BUT ECONOMIC GROWTH CAN START NOW..WHAT AREAS OF THE ECONOMY ARE TARGETED AND WHY ? AS CLINTON PUT IT IN 1992 RUNNING FOR ELECTIO AND DESPITE ALL ODDS WINNING...."ITS THE ECONOMY STUPID" ( NOT INFERRING YOUR STUPID THIS WAS HIS CAMPAIGN SLOGAN )

    I think we will need to see the details of the amendment before we can talk specifics so I look forward to next week. We do however already have the SNP manifesto from the General Elecction which sets out what the SNP wants to achieve for Scotland and is a good place to start if you are looking for specifics. CAN YOU SUMMARISE THEM PLEASE I DONT HAVE THE MANIFESTO If the amendment is passed next week then we should see that reflected in the Manifesto for Holyrood and so build on the 2015 manifesto to get more of the specifics that you are looking for. This amendment if passed is just the start of what will be a very long process
    ACCEPTED THAT SOME ISSUES YOU OUT LINE ARE GOING TO BE COMPLICATED, BUT NONETHELESS YOU CANNOT TAKE YOUR EYE OF THE BALL, THE COUNTRY HAS TO BE GOVERNED / ECONOMIC GROWTH HAS TO BE CREATED AND MANAGED A BALANCE HAS TO BE STRUCK HERE AS IT SOUNDS LIKE THERE IS GONNA BE A HELL OF A LOT OF TIME INVOLVED IN DISENTANGLING, TIME THAT MUST BE SPENT ON THE ECONOMY

    Many thanks an interesting and for me informed post, if you could summarise economic growth plans for me, even in bullet points that will be even better alleviate my fears that as I say disentangling etc is going to eat up precious time

  4. #4
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    I have sports day today Rob so it will be tonight but I will respond to your post. Probably after I get two over excited littlies to bed

  5. #5

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    OK Ive had a quick squint at the SNP manifesto...all 16 pages http://www.snp.org/sites/default/fil...o_290x280x.pdf so didnt take long, only reference to economic growth I can see is below

    A focus on job creation

    We will support targeted reductions to employer’s National
    Insurance contributions to support job creation and theextension of the Living Wage.
    We will support an increase in the Employment Allowance
    from £2,000 per business per year to £6,000 per business
    peryear, reducing the cost of creating and maintaining jobs.
    In the meantime, we will prioritise devolution of powers
    over employment policy, including the minimum wage,
    welfare, business taxes, national insurance and equality
    policy - the powers we need to create jobs, grow revenues
    andlift people out of poverty.

    Thats all...not much substance here, whats so ever : reduce employer NI costs, fine, but unless an employer has a need for staff ( ie through demand growth ) this wont create jobs, ditto employment allowance, there needs to a demand for a firms goods/ services before people can be taken on.
    "including the minimum wage,welfare, business taxes, national insurance ( these last 2 are repeated ) and equality policy ( we have laws on equality so whats this about ? ) - the powers we need to create jobs, grow revenues and lift people out of poverty". All what I would call aspirational, I was looking for stuff like targeting export markets and supporting companies through incentives to get out there, generous R and D incentives, supporting business start up ( ie low rates, wage subsidies, tax holidays...incentives to get people to start businesses which will create wealth and employ people ) None of that is there, the supposition is that low NI employer conts, employment allowances, business taxes by themselves will create jobs....they wont, governments dont create jobs, they can influence the creation of jobs ( ie what is in the manifesto is bog standard stuff based on the latter premise ) but people ultimatly create jobs and job creation is based on gowrth / high demand levels. I was surprised to see nothing along the lines of " our desire is to support the creation of a high value, high wage, low tax economy capable of competing in global markets"...thats what will lift people out of poverty.

    Sorry but their is no detail nor any specifics in what is a very bland document.


  6. #6

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    Quote Originally Posted by squidge View Post
    I have sports day today Rob so it will be tonight but I will respond to your post. Probably after I get two over excited littlies to bed
    CHeers I have a lot of info on renewables for you will need to post to you / or send by e mail if you can PM me your preferance

  7. #7

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    Some interesting manifesto facts : most coverage to economic growth / issues Liberal Democrats, worst SNP, lenghtiest is Labour least content is SNP : now in the absence of anything detailed in the SNP manifesto ( come on Squidge explain that to me ! ) , and seeing theyve got the power and we all want to see progress why dont they just adopt / nick Lib Dem proposals which are by far and away the best of all 4 parties ( Greens I never looked at..) LD's actually shocked me, absolute spot on detail..I must confess to never actually having read the major manifestos, but come on SNP = 16 pages / 200 words on economic related matters...do they think people are too thick to take in more ? So once again SNP supporters, can you fill in the blanks for me, bring on FFA...never mind the "complexities inherent in FFA...........wheres the economic strategy / wheres the detail, cos theres none in the manifesto ?

    1 Laboursmanifesto 86 pages : Relative to theeconomy : Building an economy that works forworking people... 16 pages of detail
    http://www.labour.org.uk/page/-/BritainCanBeBetter-TheLabourPartyManifesto2015.pdf
    2 ScottishConservative manifesto : 74 pages Relative to the economy : 4 pages on A strong economy to help you andyour family, jobs for all 6 pages 10pages in total
    http://www.scottishconservatives.com/wordpress/wp-content/uploads/2015/04/Scottish-Manifesto_GE15.pdf
    3 SNP manifesto:16 pages : Relative to the economy : about 200 words
    http://www.snp.org/sites/default/files/page/file/04_16d_snp_election_manifesto_290x280x.pdf
    4 Libdem manifesto 83 pages : relative to the economy : 26 pages covering below
    Growth and jobs
    Growing 1,000 extra businesses withinvestment from Regional Development Banks
    Making Scotland the most digitallyconnected region in Europe
    Making Scotland the world leader inscience and research
    Helping create the conditions to growScotland’s exports
    Supporting and developing Scotland as acountry that treasures innovation and creativity
    Reforming procurement to ensure Scottishcompanies can compete for work
    Cutting regulation by a quarter to helpbusinesses grow
    Giving unemployed young people thechance of work experience, internship, apprenticeship or volunteering
    Growing a healthy rural economy

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    Thanks for the links Rob it always is helpful when one is able to refer directly to what the assorted interested Parties actually say themselves, as opposed to others interpretations.
    One of the greatest criticisms of the SNPs quest for FFA is the lack of detail in what they propose to actually do with it this has come from many quarters not just political sides.
    The interesting big problem is the £7.6 Billion black hole that would be one of the first hurdles that would significantly make implementing any radical reforms difficult.
    You're quite correct when you state that governments do not create jobs and the problem as I see it is if Scotland does become a higher wage economy than the rest of the Uk employers will look more favourably on keeping things south of the border the same would be true if tax rates are changed, unless they are more favourable.
    Running a two speed economy is fraught with difficulties for Multi Nationals and Corporate entities who employ staff across the whole of the UK economy.
    How do the SNP propose to make the Scottish Economy more attractive to investors if the cost of running a business and employing staff is higher than elsewhere in the UK, how do you attract the best staff if they are faced with higher tax levies than elsewhere or how do you keep them here if they are earning less because of taxation. The devil is always in the detail and unfortunately the SNP manifesto is very light in detail when it comes to the macro economic changes that are required to make the country more profitable.

    When it comes to railway inter connectivity I can see the rational by the UK govt to link large northern cities with London or investing in London City links, considering the size and density of population within those cities it is more cost effective to Link them than providing a costly link to Edinburgh or Glasgow say,which has to cover substantially more distance for less population.

    The reality for Scotland is harsh but simple when it comes to railways insufficient population and large geographic areas. The means the cost and return for each mile of rail track laid is less viable the further north you go.
    Last edited by BetterTogether; 12-Jun-15 at 15:35.

  9. #9

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    FFA
    Ifthe fact that Scots have “paid more taxper head of population every year for the past 34 years.” meanswe’re hard done by within the UK, then FFA will fix that because we’ll get tokeep it all ( tax revenues ) .
    Ifwe really do “send more to Westminster than we get back” then FFA would puta stop to that immediately, because we wouldn’t be sending any of our taxes toWestminster so can keep it all ( minus shared costs : defence etc ) .
    Ifthe statement “Independence would have made Scotland £8.3bn better off over the last 5years” has any meaning then FFA would allow us to keep our hands onthat excess wealth in the future
    If“Scotland’s GDP per head is £2,300 higher than the UK as whole”meaning “Scotland is the 14th richest country in the world” translatesinto practical economic advantage, then FFA will allow the people of Scotlandto enjoy those riches without them be leached away by Westminster
    If“Oil is just a bonus” then the oil price decline shouldn’treally matter a jot
    Ifthese economic claims made by the SNP during the Independence Referendum andrecent election are true, then FFA should be a highly attractiveproposition for Scotland. Factor in a high growth economy and hell mend it, wewill in a very good position.
    BringFFA on and also tell us the details of the growth strategy.



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    The future for power generation in Scotland is another interesting subject. Although much is being made of renewables, they are currently unable to power the country if a high pressure system sets in during winter, non turning wind turbines do not generate electricity. With Longannet due to be decommissioned soon this creates a worrying gap in Scottish Power supply. The obvious solution would be Nuclear but the SNP are vehemently opposed to this form of power so how do they intend to plug the growing gap between power generated and power required in the coming years

  11. #11

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    Quote Originally Posted by BetterTogether View Post
    Thanks for the links Rob it always is helpful when one is able to refer directly to what the assorted interested Parties actually say themselves, as opposed to others interpretations. One of the greatest criticisms of the SNPs quest for FFA is the lack of detail in what they propose to actually do with it this has come from many quarters not just political sides. The interesting big problem is the £7.6 Billion black hole that would be one of the first hurdles that would significantly make implementing any radical reforms difficult. You're quite correct when you state that governments do not create jobs and the problem as I see it is if Scotland does become a higher wage economy than the rest of the Uk employers will look more favourably on keeping things south of the border the same would be true if tax rates are changed, unless they are more favourable. Running a two speed economy is fraught with difficulties for Multi Nationals and Corporate entities who employ staff across the whole of the UK economy. How do the SNP propose to make the Scottish Economy more attractive to investors if the cost of running a business and employing staff is higher than elsewhere in the UK, how do you attract the best staff if they are faced with higher tax levies than elsewhere or how do you keep them here if they are earning less because of taxation. The devil is always in the detail and unfortunately the SNP manifesto is very light in detail when it comes to the macro economic changes that are required to make the country more profitable.
    I was gob smacked when I read it, I mean 16 pages !!!! Lib Dems proposed a substantial articulate economic strategy, mores the pity their coalition has killed them off. George Galloways arguement against going it alone was based soley on economics, ie england as wwll as being our largest trading partner is also our largest competitor, and it is inevitable that, given the limited pool of resources in Scotland never mind the aspiration to introduce living wages / highre wages etc that there would be a race to the bottom...ie all we will be able to attract is light low wage srcew driver jobs ( amazon being a good example ) , and if we are competing with ENgland then there inevitably would be a race to the bottom...ie work will go where wages are lowest, taxes are low and where the best incentives are. Again you make a sound pint on cross nation multi nationals / corporates...they would run a mile from dealing with a 2 speed economy, hard facts. However I am now hell bent on the SNP gaining FFA, and delivering what they "vowed" economic growth...I just need some assurance on the specifics surely some one out there can give a steer ?

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    Quote Originally Posted by rob murray View Post
    FFA Ifthe fact that Scots have “paid more taxper head of population every year for the past 34 years.” meanswe’re hard done by within the UK, then FFA will fix that because we’ll get tokeep it all ( tax revenues ) .Ifwe really do “send more to Westminster than we get back” then FFA would puta stop to that immediately, because we wouldn’t be sending any of our taxes toWestminster so can keep it all ( minus shared costs : defence etc ) .Ifthe statement “Independence would have made Scotland £8.3bn better off over the last 5years” has any meaning then FFA would allow us to keep our hands onthat excess wealth in the futureIf“Scotland’s GDP per head is £2,300 higher than the UK as whole”meaning “Scotland is the 14th richest country in the world” translatesinto practical economic advantage, then FFA will allow the people of Scotlandto enjoy those riches without them be leached away by WestminsterIf“Oil is just a bonus” then the oil price decline shouldn’treally matter a jotIfthese economic claims made by the SNP during the Independence Referendum andrecent election are true, then FFA should be a highly attractiveproposition for Scotland. Factor in a high growth economy and hell mend it, wewill in a very good position.BringFFA on and also tell us the details of the growth strategy.
    I really would like to see how those figures are arrived at, given that for each worker the tax levy is the same UK wide so it isn't coming from the man in the street, business taxes are also the same across the country. Now I do realise Oil Revenue is probably where the difference is coming from but that's a declining commodity so I'm not sure that it would provide such a large difference in years to come.

  13. #13

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    Quote Originally Posted by BetterTogether View Post
    The future for power generation in Scotland is another interesting subject. Although much is being made of renewables, they are currently unable to power the country if a high pressure system sets in during winter, non turning wind turbines do not generate electricity. With Longannet due to be decommissioned soon this creates a worrying gap in Scottish Power supply. The obvious solution would be Nuclear but the SNP are vehemently opposed to this form of power so how do they intend to plug the growing gap between power generated and power required in the coming years
    The SNP have loudly trumpeted renewable energy...remember Salmons claim that Scotland can be the Suadi Arabia of renewable energy......well there is an enormous opportuniy for Scotland here, not damn wind farms, but to lead the way in developing and commercialising real innovative wave / tidal devices and lead the world...and not one word not one damn word on this in their manifesto. I will leave renewables and why we need a coordinated government led strategy to another day though.

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    Well it would be lovely to be able to give you specifics on FFA but I don't actually think they currently exist each time John Swinney has been pressed to reveal detail he has tacitly avoided any detail. There is also a reality to England, Wales and Northern Ireland being Scotlands largest trading partner, that has to be taken into account. A lot of money is spent by rUK on Scottish products more than is exported to Europe so there's another Elephant in the room which makes FFA harder to implement.

  15. #15

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    Quote Originally Posted by BetterTogether View Post
    I really would like to see how those figures are arrived at, given that for each worker the tax levy is the same UK wide so it isn't coming from the man in the street, business taxes are also the same across the country. Now I do realise Oil Revenue is probably where the difference is coming from but that's a declining commodity so I'm not sure that it would provide such a large difference in years to come.
    Im accepeting these figures and taking them at face value, they originate from the SNP, as does the prouncement that FFA will tranform the economic performance of Scotland....just give me the details on how wheres the economic strategy......I dont care about the complexities of delivering FFA, as thats time wasted and diverted, I am holding the SNP to their word here, so accept the figures banded about, and accept that FFA will transform our economy, if it turns out thats the case then great, if it turns out that its all bull....then the SNP have to take 100% blame as its their words, their promises, they have the power, and have to be judged by their reults.

  16. #16

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    Quote Originally Posted by BetterTogether View Post
    Well it would be lovely to be able to give you specifics on FFA but I don't actually think they currently exist each time John Swinney has been pressed to reveal detail he has tacitly avoided any detail. There is also a reality to England, Wales and Northern Ireland being Scotlands largest trading partner, that has to be taken into account. A lot of money is spent by rUK on Scottish products more than is exported to Europe so there's another Elephant in the room which makes FFA harder to implement.
    Nah its the detail on the economic growth plans I want, FFA as Squidge points out is fraught with complexities, the process of getting FFA is going to take time, so that will eat into governing time and hold back economic progress, unless Cameron just says there you go and we sort out the detail as we go along.

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    Quote Originally Posted by rob murray View Post
    Im accepeting these figures and taking them at face value, they originate from the SNP, as does the prouncement that FFA will tranform the economic performance of Scotland....just give me the details on how wheres the economic strategy......I dont care about the complexities of delivering FFA, as thats time wasted and diverted, I am holding the SNP to their word here, so accept the figures banded about, and accept that FFA will transform our economy, if it turns out thats the case then great, if it turns out that its all bull....then the SNP have to take 100% blame as its their words, their promises, they have the power, and have to be judged by their reults.
    I concur fully!

  18. #18

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    Quote Originally Posted by BetterTogether View Post
    I concur fully!
    Would still like SNP supporters to come on here and start filling in the details though, there's little to nothing in their manifesto on economic macro management, given the desire for FFA, I would have thought people would be on here filling in the detail. I mean Im not being negative, as I said bring on FFA I accept the SNP's numbers that we are being leached by England etc.....just gimme the detail on how we achieve sustainable economic growth with FFA thats all I want.

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    I tend to agree it would be good to hear some detail on what they propose but given that John Swinney has so far failed to give any substantive detail, neither has Nicola Sturgeon or any other member of the SNP I find it difficult to believe that the broader points let alone finer detail will be delivered on e org prior to any official announcement.


    What we may get though is an awful lot of, what I think, what I'd do, what may possibly just might happen, non of which are the same as official details from the SNP themselves.

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    Here's a BBC report from yesterday, Kezia Dugdale has had her people do some independent research and claims that Oil would have to be $200 a barrel to pay for everything current oil price is $65 a barrel


    http://www.bbc.co.uk/news/uk-scotlan...itics-33092159

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