Separate Scotland will be 'big loser' in defence deals

UK Political Editor

Friday 29 June 2012

AN independent Scotland would be a "big loser" in terms of defence contracts and jobs, Nick Harvey, the Armed Forces Minister, claimed yesterday.

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MICHAEL SETTLE UK POLITICAL EDITOR

His comments came as the House of Commons Defence Committee set out its terms of reference for an inquiry into the defence implications of independence – revealed by The Herald in February. Mr Harvey told House Magazine that "Scotland was good for defence and defence was good for Scotland".

At present, Scotland benefits from more than £1.8 billion a year in defence contracts with thousands working directly and indirectly in the shipbuilding industry. The Ministry of Defence alone employs around 20,000 people north of the Border.However, the Liberal Democrat minister stressed: "If Scotland goes its own way, it will be a big loser in defence because the footprint for Scottish defence would be far smaller than the UK defence footprint in Scotland is at present."He explained that while Scotland as part of the UK captured a "good chunk of the supply to the UK armed forces", once it became independent, it would be a foreign supplier.His fellow minister at the MoD, Peter Luff, said defence firms had told him they would move to England if Scotland became independent.However, Angus Robertson, the SNP's defence spokesman, readily maintains Westminster has "presided over a £5.6bn defence underspend and 10,500 defence job losses in Scotland over the last decade".Pete Wishart for the Nationalists said the Scottish Government was "very much in favour of continuing defence procurement co-operation regardless of the constitutional situation".However, Mr Harvey said the current co-operation on defence contracts would be illegal under EU competition rules if Scotland became independent.Meanwhile, the Defence Committee said its inquiry would look at: l Scotland's current contribution to the overall defence of the UK in terms of not only specific items but also relating to shared facilities and goals;l the implications for that joint defence should Scotland become independent, such as troop numbers;l the means and timescale of "any necessary separation" – whether and how any defence shortfall might be made good;l whether an independent Scotland might continue to contribute to defence goals shared with other parts of the UK and other countries andl the shape, size and role of Scottish defence forces following independence.The thorny issue of an independent Scotland's relationship to Nato is likely to be discussed. Scottish Government ministers look set to be invited as committee members tour Scotland to examine current defence facilities.

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Separate Scotland will be 'big loser' in defence deals

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