Self-rule vote delay is threat to Far North jobs, claims MP
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UNCERTAINTY over Scotland’s future in the Union is threatening investment in the Far North renewables sector, according to the local MP.
John Thurso is concerned about a report that has warned renewables companies to be wary of investing in the country when independence is on the cards.
The publication, by a Citigroup Global Markets analyst, warned potential investors the Scottish Government’s two main policies – a referendum on independence and major investment to develop the renewable energy sector – seem incompatible.
The Caithness, Sutherland and Easter Ross MP is calling for the question of independence to be asked now.
“If the SNP delay the referendum until 2014, as they have threatened to, Scotland and the Far North, in particular, could lose out on significant inward investment as investors await the result,” he said.
“The SNP are perfectly within their rights to hold a referendum after their victory in May – they have already had four years to develop their plans, they have held their ‘big conversation’ and introduced a draft bill. This report makes it clear that we can’t afford any more delay – they should ask the question now.”
The report argued the consumer base in Scotland is simply not large enough to sustain the estimated £4 billion annual subsidy the renewables sector would need in order to meet Scottish Government targets.
It, therefore, warned energy companies against any more significant capital investment until the issue of independence has been addressed.
The report concludes investors should exercise “extreme caution in committing further capital to Scotland”. It highlights SSE and ScottishPower as possibly being already overexposed to the risks of having assets stranded in an independent Scotland and cut off from the Union’s revenue stream.
“The Far North is at the forefront of renewable energy development and well placed to attract inward investment,” said John Thurso.
“This shillyshallying by the SNP is a direct threat to future jobs and investment in the local economy. Investors need to know one way or the other or they are simply not going to invest.”
The Scottish Government plans to hold a referendum in 2013 or 2014. If it wins, it would have a mandate to negotiate terms for Scotland to secede from the UK.
This could take place as early as 2016
Local SNP MSP Rob Gibson yesterday disputed John Thurso’s views.
He argued the question of independence “certainly does not” threaten the renewables industry in the Far North.
“John Thurso, Cameron [David, Prime Minister], and Citigroup are trying to talk Scotland out of independence,” he told the Courier.
“There are plenty of people willing to invest at the moment and they should stop trying to put others off.
“When you see the large companies that already have or are investing in Scotland and the best training being structured around the University of Strathclyde then you can see we are in the best position in Europe.”
