Full fiscal Autonomy - and all that stuff ...

Full fiscal autonomy (FFA) – or as SNP would now have it, full fiscal responsibility (FFR) is now the Westminster unionist politician’s favourite topic with which to bait SNP MPs. In this, they are ably assisted by the media, with The Daily Politics’ Andrew Neil and Jo Coburn acting as straight man/woman to the likes of a sneering, sniggering Michael Forsyth, as in this clip.

It never seems to have entered their heads to have a look at what it means, or more specifically, what it meant in the context of the independence referendum and what it means now in the context of a NO win on  September 18th 2014, the Smith Commission proposals and the SNP’s astonishing electoral triumph in the general election on May 7th 2015.

But why do the hard thinking and the hard work when it’s more fun to assist Westminster unionists - especially failed Scottish politicians who are now unelected Lords - to giggle and gurn, shouting “Cowardy custard! You wanted it in 2011 through to 2014 – you wanted it after The Vow. Had you won the Referendum, you claimed you would have been fully independent on March 24th 2016. Why don’t you want it now, immediately! When do you want it? Tell us, tell us …”

Let me do the work for them – unpaid and unsung as always – offering a service to democracy and to rich media pundits, sundry Lords and politicians, a gift from a simple old Scottish voter, a humble Glesca slum boy – pause to brush away a sentimental tear … (VOICE OFF: “Oh, **** off, Peter!”)

FULL FISCAL AUTONOMY

Independence confers full fiscal autonomy automatically – well, it would, wouldn’t it? But what is it?

Had we (the YES component of Scotland’s electorate) won the referendum, it would have come with everything else that full independence brings – full autonomy on every aspect of the governance of Scotland, with all the benefits and risks that independence brings.

The nub of the present argument and the childish Bullingdon Boys farce being enacted in a forum near you hinges on a key question – asked superficially but without any wish to receive a detailed answer. The question is -

What is the difference between full fiscal autonomy as it would have resulted from a YES vote in September 2014 and full fiscal autonomy in the June 2015 context of a historical NO vote and and SNP landslide on May 7th 2015?

What is it? It’s setting and raising our own taxes – all of them – and spending the money thus raised as we see fit.

In the context of the independence referendum - and the context of the Scottish, UK, European and global economy circa Sept 2014 - had we won a YES vote, negotiations – wide-ranging, complex negotiations on every aspect of Scotland independence, including fiscal autonomy would have commenced, with both rUk and Scottish negotiating teams, backed by experts and advisors from the civil service and academia, bargaining on a huge range on inter-locking and inter-dependent issues, defining the nature of the post-independence relationship between Scotland and rUK and, after a heads of agreement was reached in April/May 2016, then devising complex plans to implement that negotiated agreement.

By definition, those plans and their implementation processes (although realistically the Treasury and the Civil Service would have to some degree prepared the ground in parallel with the negotiations) could not have properly started until final agreement was reached in the spring of 2016. The full implementation of the plans would continue for possibly years after Independence Day 24th March 2016.

Of course, bang in the middle of those negotiations, we would have had the general election campaign of April/May 2015, with Parliament prorogued, no government, and major, unpredictable – and a badly predicted(!) outcome.

But we would have dealt with it. After all, countries declare UDI, gain independence by bloody or velvet  revolutions or other means,  still manage to survive - so we’d have been OK, even with the oil price collapse. We’d have had a currency union or we wouldn’t, and then have had our own currency under one of  the Fiscal Commission viable alternative options – plans B,C,D and E of blessed memory – which may well still be relevant after 2016!

What’s different now, in June 2015? Well, even to a boneheaded or disingenuous unionist anxious to make a superficial point, there are three key differences -

1. We lost the Referendum, and FFA would not be implemented in the context of Scotland being an independent nation.

2. It’s not 2011 or even 2014 – the economic situation and the global economy has changed – crude oil price have nosedived, a EU Referendum looms, with Brexit as possibility.

3. The general election result was predicted by no one, and Scotland is a dramatically different place politically than in September 2014.

In other words, Scotland, the UK, Europe and the world have changed, and only fools hang on to plans that events have made out-dated. So what does FFA mean in the June 2015 context?

FFA post-June 2015 – implementation and timeframe

Instead of getting the  block grant (the proportion of our taxes UK deigns to return to us) from the UK Exchequer as at present, the Scottish Parliament would receive all taxation levied in Scotland and be responsible for most of its spending in accordance with its own priorities.

Scotland would pay  to the UK government Scotland's share of the cost of providing defined UK-wide services, including defence spending and conduct of foreign affairs. In other words, it would be Scottish fiscal autonomy, but not full political independence. It would still be controlled by rUK in significant areas.

That would involve a negotiating agenda with significantly different priorities from the same negotiations as part of an independence mandate, as would have been the case in a different outcome to September 18th 2014 – and those negotiations would have had radically different dynamics even if the economic situation, the global economy and the price of crude oil had remained the same or risen.

So even if the new Tory government, with their shaky majority and divided party and confusion over Brexit, human rights and immigration policy, were to offer full fiscal autonomy tomorrow, there would have to be a lengthy period of negotiation about the exact nature of its terms and  implementation.

Of course they have no intention of doing any such thing, and while it’s tempting to call their bluff and say “We’ll have it, right now, thank you ..”, that would be a nonsensical response, and just about as infantile as the wee Laird o’ Drumlean’s schoolboy posturing on Daily Politics today.

So away and birl in yer kilt, Michael Forsyth, and if ye birl fast enough, yer wee heid might wind up in that portion of yer anatomy where it’s best fitted tae be,  oot o’ mischief’s way …

Team56 make their presence felt at Westminster

What if ……?

We won a landslide victory, gaining 56 seat out of 59 , almost 95% of the Westminster Scottish seats. The three main unionist parties are each reduced to a token single member in the Commons. This is unprecedented, and the benefits are very tangible indeed.

Westminster benefits of having 56 SNP MPs

Scottish National Party will chair the UK Parliament’s Energy and Climate Change Select Committee and Scottish Affairs Select Committee. However, there were earlier indications that Tories and Labour will attempt to abolish the Scottish Affairs Committee.

The party will be entitled to £6 million over the next Parliament because it took so many seats in the election. It will receive between £1 and £1.2 million from the Treasury each year in what is known as short money.

“The GE2015 landslide vote is not a mandate for a referendum” NICOLA

If more than 50% of the electorate voting for a party committed to independence get 94.9% of the seats for their country is not a virtual mandate for independence, what would be?

(I covered some possibilities in my May 1st blog before the election.)

Nicola's argument, quite deliberately, rather dances round this key point, by saying that some very significant event or events - e.g. BREXIT - the exit of UK from the EU - would be required to reactivate the question of a referendum. She rests her assertion on the related facts that 

1) the manifesto did not commit to a referendum and did not make independence a core issue, and

2) a proportion of the electorate voting SNP (unknown) must have included voters who voted NO in the 2014 referendum and still firmly wish to remain part of UK. 

That group had every right to vote in the belief that, although they were voting for a party whose core long-term objective is independence, the Scottish electorate firmly rejected independence on September 18th 2014 and the SNP accepted that democratic result, and both the former and the current First Ministers had expressed personal views that there would be no referendum in a generation, however one defines that. But those views were personal, albeit widely shared, and they could not bind the people of Scotland, as both Nicola and Alex Salmond have subsequently stated.

NICOLA “The People decide”

Although Nicola is right to say that, democratically, the people decide on independence in a referendum, their ability to do so only comes if the independence party they support explicitly commits to independence during the lifetime of the Scottish Parliament - if elected - in their manifesto before the 2016 election. (The People, in practice, decide very little, except at the ballot box, and once in a while, during revolutions!)

In other words, if  Nicola and the Party place such a commitment in the 2016 Holyrood manifesto and win decisively, the aggregate case for an independence referendum would be well-nigh unanswerable.

She won't, because whatever these figure say about a mandate to call a referendum, there is no certainty that she would win. Alex Salmond,  a risk-taker and a gambler, took the political gamble in the 2011 manifesto - and was right to do so. The risk is huge – another NO vote would kill independence aspirations stone dead – or lead to something that no one would care to predict …

We came close to winning. But Nicola is not a political gambler: she will only take carefully judged risks with a high chance of success in the light of the previous failure. She will seek to get more powers, something close to federalism, and will postpone independence till Scotland is independent in all but defence and foreign affairs.

The $64,000 question is - will the SNP’s massive membership permit the Party to exclude such a commitment from the 2016 manifesto or will they pass branch resolutions demanding one?

Nicola's authority and popularity are at their very peak right now, but another mood may develop which, while retaining respect for her and her authority, begins to lose the fan/celebrity awe – a mood in which members are prepared to constructively flex  branch muscles, and democratically question strategy.  That, after all, is how party democracy is supposed to operate.

Will it happen? Who knows? Despite the massive membership, as any Branch Chair or Secretary knows, at any given time only a small minority of members are actively committed to attending branch meetings and influencing branch democracy. But in the SNP, on key decisions, the entire branch can vote online or by post, as for example on the selection of candidates for election.

Additionally and perhaps crucially, there are still campaigning organisations out there committed to independence who are not necessarily SNP supporters or members, e.g. Radical Independence, Common Weal, the Scottish Socialist Party, and party politically unaligned activists and voters, and also supporters and members of nominally unionist parties who nonetheless may support full independence or devomax or federalism within UK.

Depending how event unfold in the next 11 months, and dependent on how Scottish Labour – and its ousted MPs – re-group and re-define themselves, all sorts of possibilities exist.

And of course, there are the trades unions, the STUC and campaigning groups within them, not to mention a number of groups who campaigned for YES banner under a variety of identities.

What we have is an unprecedented and varied mass movement - a mass engagement of the Scottish electorate, with its own hydra-headed structure, united by a core desire for political change in Scotland, but with significantly different views of what it should be and how it should be brought about.

Those who wonder how it will behave in the post-referendum, post-GE2015 phase we are in now, in the 11-month lead-up to the 2016 Parliamentary election might find illumination – or cause for alarm – in Eric Hoffer’s unique 1951 book The True Believer

Interesting times …