Nothing, it seems, is done by government these days without at least one eye on the constitution. Just look at this morning’s decision on the Green Investment Bank.
Edinburgh had been lobbying for the UK Government’s eco-funding bank to come to the Scottish capital for years. Edinburgh has the biggest financial services sector outside London, it would be a perfect fit – the politicians claimed.
We learned today that they had been successful, that the Green Investment Bank will come to Edinburgh. But was it all down to their efforts or was there more involved in this decision than immediately meets the eye?
Yes, Edinburgh will get the new bank but it won’t get all of it. The headquarters of the bank will be in the Scottish capital but the transactional base will be in London. So the bank will be split with one base in Scotland and the other in England.
It may be unstated, but there is a clear unionist message to this - this is Scotland and England working together, this is a Union dividend, the bank will operate on both sides of the border as if it didn’t exist, which it doesn’t in financial terms. But there is also an implicit threat to this split-site plan too. The UK Government is saying (although it wouldn’t spell this out in as many words) vote for independence and it will be easy for us to close down the Edinburgh end and move the whole thing to London.
By having a part of the bank in London, the bank has a base in England which could take over as the entire bank, if need arose.
Expect to see more of this in coming months. This is how the UK Government is fighting back over independence.
It is letting it be known that the Green Investment Bank was in its gift. Those new jobs which will be created in Edinburgh are coming as a direct result of a UK Government decision.
But equally, it is saying, those jobs could disappear if Scots vote to leave the Union.
Labour MP for Edinburgh North and Leith, Mark Lazarowicz, came closer than anyone to talking about the real, political nature of the decision when he said: “This shows what we can do when we work together. Being part of the UK allows Scotland to win investment we would be less likely to if we separate."
Michael Moore, the Scottish Secretary, was slightly more oblique.
He said: “By basing the GIB’s corporate HQ, asset management and administrative functions in Edinburgh and its transaction team in London, we can harness expertise across the country to deliver a strong and successful GIB for the UK.”
Others were more appreciative and less political in public – even though in private they all realised what was really going on.
SNP MSP for Edinburgh Central, Marco Biagi, said: “This decision is a marker on Scotland’s recognition as a world leader in renewable energy and the Scottish Government’s agreement to use £103 million of Scotland’s fossil fuel levy to support the capitalisation of the Green Investment Bank. This is a good return on Scotland’s investment.
“Renewable energy is a long-term investment with long-term returns and I am proud that the SNP is so committed to utilising our natural resources as a means to a more prosperous Scotland.”
↧