He is, officially, a pensioner.

At 66, though, Walter Smith retains a vim and vigour, perhaps enhanced by the realisation that he has escaped the madness of fitba', and Rangers in particular.

There is one moment in a breezy, bright conversation that Smith's countenance darkens ever so slightly. ''You felt it, there is no doubt about that,'' he says. The subject under discussion is the Old Firm fixture.

Smith, assistant to Graeme Souness at Rangers from 1986 to 1991, then manager from 1991-98, has a long history with the most draining of contests and assures both Ronny Deila, the Celtic manager, and Kenny McDowall, the caretaker manager at Rangers, that they will feel its effect.

''You don't need any laxatives in an Old Firm game,'' Smith observed. "It is the same for both managers. It is their first game in charge. Kenny at least knows what it is like, he has experienced it from a coaching perspective. So, for him, it will not be a major surprise.

"'For a lot of the people at Celtic, it will be the first time. For a lot of people at Rangers it will be the first time that they have played an Old Firm game so it will be interesting to see how they handle it.''

How did Smith handle it?

''I used to love it at time up when we won," he said. "I can't say that it was one of those games that you really looked forward to taking part in. You felt it, there is no doubt about that. It doesn't matter what anyone says, players are lucky to go out on the pitch and play. But from a managerial point of view, in my career there was nothing like it.''

Smith sampled the Everton- Liverpoool match as a manager at Goodison Park and the Manchester United clashes versus Manchester City and Liverpool as an assistant to Sir Alex Ferguson.

''The Old Firm game has an edge to it that is missing in these matches" he said."I can't say that I miss them. On the other hand, I say they are necessary. They are necessary for everyone else except maybe the two managers.''

He described the fixture a ''frenzy'' and what has "unsavoury elements" but he does not shrink at answering two central questions.

The first is over the importance of an Old Firm match to the health or otherwise of Scottish football.

''Scottish football needs it, it needs a Rangers v Celtic game," he said. "It gets that profile focused onto Scottish football again, which we are struggling to achieve at European level at present.

"If Rangers had been faced with playing Celtic four times a season for the last three seasons we might not have seen the same circumstances occurring at Rangers as they have done. Things would have been sorted a lot quicker if they had remained in the Premiership and had to play the Old Firm game four times a season. A few Old Firm defeats focus you, and certainly focus the Rangers support."

That fan base has been torn and tested over the past four years. Smith acknowledged that there was the threat that Rangers could face yet another season outside the top division with Hearts, despite a defeat on Saturday, still 13 points clear in the Championship.

''First and foremost, it will be more damaging to Rangers," he said of any eventuality that saw promotion beyond the Ibrox side.

But he added: '' Scottish football has managed for the last three years, although Peter Lawwell [chief executive] did state that Celtic had lost a lot of money. It has been a bad thing for Scotland that Rangers have gone out [the league]. The likes of Aberdeen, Dundee United and others will say that you are seeing a challenge from them. But you are seeing a challenge from them in a domestic circumstance.

"Our clubs continue to get knocked out in the first round in Europe every year. It has been left to Celtic to carry the whole of Scotland in a European context and that is a context where we have to show that our football can stand up to scrutiny.''

He added of the Scottish game: "It still needs Rangers to get back to what we would know as a Rangers team and a Rangers club. The sooner that happens, the better for Scotland. "

The second question is whether Rangers can win on Sunday. Smith, typically, has a take on that which involves both gut instinct and tactical nous.

"I don't think the game itself will be as straightforward as everyone is saying,'' he said.

He said of the club he managed and where he sat briefly as chairman: "Their better performances this season have been against Premiership teams."

Rangers have defeated Inverness Caledonian Thistle, Kilmarnock and St Johnstone in cup competition this season

Smith, a regular attender at Ibrox with his grandchildren, said there was a reason between for the disparity between the performances against the top flight teams and those in the Championship.

"The first division teams take care and make sure they are tight and Rangers are maybe lacking a bit in terms of creation of opportunities and I think that is where the problems lie," he said.

"Playing for Rangers is not easy. The boys that are at Rangers are finding that out. The lack of creation is something that Rangers have had to try to overcome over the season."

He pointed out that Celtic would be on the front foot against their rivals but this could suit the Ibrox side who have no need to seek ways to break down a packed defence.

"It might be tighter than a lot of people imagine," he said.