26/08/2014 Scotland 2014


26/08/2014

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It's the night after the night before.

:00:00.:00:00.

So did the big debate change how anyone intends to vote?

:00:00.:00:26.

Nearly a million viewers in Scotland tuned in last night to watch

:00:27.:00:29.

Alex Salmond and Alistair Darling shouting at each other, often both

:00:30.:00:31.

We'll have our own, very civilised, debate with the directors of both

:00:32.:00:41.

The richest 1% of Scots pay 20% of income tax.

:00:42.:00:47.

Would they stay and pay their share in an independent Scotland?

:00:48.:00:51.

While over 100 Scottish business leaders have signed

:00:52.:00:53.

a letter saying the business case for independence has not been made.

:00:54.:00:56.

Is big business an asset for Better Together?

:00:57.:01:05.

Yes campaigners can't keep the smiles off their faces today

:01:06.:01:07.

as their man has been generally acknowledged to be the victor

:01:08.:01:10.

But there is a difference between winning an argument

:01:11.:01:13.

Do they now have enough momentum to overcome what is still

:01:14.:01:18.

a significant gap in the polls in just over three weeks time?

:01:19.:01:29.

Was it a good morning for Alistair Darling and the Better Together

:01:30.:01:35.

campaign? He woke up to be remind -- reminded the Alex Salmond had been

:01:36.:01:37.

declared the winner of last lap's debate in a poll of around 500

:01:38.:01:47.

people. And there stands the victor. The same poll also said the debate

:01:48.:01:52.

had no bearing on how people would vote, so was all the build-up to

:01:53.:01:56.

last night and the showdown just theatre? Stop playing games! You

:01:57.:02:04.

must have a plan B! If we win the referendum, would you... Alex, Alex,

:02:05.:02:11.

nobody can hear. A lot of people were listening. By tomorrow morning,

:02:12.:02:17.

there is registered by post will be able to start casting their vote.

:02:18.:02:21.

This is the largest retirement village in Scotland, and there is it

:02:22.:02:25.

to call each high number of postal voters here but with their ballot

:02:26.:02:29.

papers being sent out today, they could be amongst some of the first

:02:30.:02:33.

people in Scotland to say yes or no to independence. I thought it was at

:02:34.:02:46.

bark or more a debate. -- I thought it was a debacle. You couldn't hear

:02:47.:02:52.

what they were saying. I don't think a debate like that is going to

:02:53.:03:03.

change people 's minds. The things discussed were not on a good level,

:03:04.:03:07.

in my opinion. Do these things matter when you make up your mind? I

:03:08.:03:13.

am still undecided, to be honest. Totally undecided. And last night

:03:14.:03:21.

didn't help me make a decision. How many changed your mind as a result

:03:22.:03:25.

of the debate? Absolutely no one. OK. Hands were on show here in

:03:26.:03:33.

Lanarkshire. These younger voters were glued to the debate. Who thinks

:03:34.:03:38.

that the debate last night will have influenced the vote in general? Are

:03:39.:03:45.

younger people more influenced by it? Definitely. TV is so... The

:03:46.:03:54.

16-year-old would watch a TV debate. You'd rather what ship on TV than

:03:55.:04:02.

read about it. -- you'd rather watch it on TV. What about social media?

:04:03.:04:08.

It is a huge platform for it. It is good for propaganda and young

:04:09.:04:16.

people. Facebook is flooded from end is flooded with things right now.

:04:17.:04:23.

This professor has been studying the trends. I have seen a couple of

:04:24.:04:28.

trends saying, yes, that is me decided right now, but people on the

:04:29.:04:32.

whole people on Twitter or people who had made their mind up already.

:04:33.:04:38.

Where are the undecided people? And how are the campaign is going to

:04:39.:04:45.

reach them? We have Blair Jenkins and Blair

:04:46.:04:51.

McDougall in the studio today. Thank you for coming in. I'm sure you've

:04:52.:04:56.

been having a good day, Blair Jenkins, as Alex Salmond seems to

:04:57.:04:59.

have been the winner of the debate but it doesn't seem to have changed

:05:00.:05:03.

people 's voting intentions. When I am not in the studios, I'm out on

:05:04.:05:08.

the street, knocking on doors and talking to people. And talking to

:05:09.:05:11.

people today, people watched the debate, and all the momentum is

:05:12.:05:19.

towards us. We are very pleased with the response we are getting. The

:05:20.:05:24.

momentum was with us prior to the debate and events within the last 24

:05:25.:05:30.

hours have helped us. What happened with Alistair Darling last night? He

:05:31.:05:38.

needs a new song. I think what happened is that the sheltie Alex

:05:39.:05:42.

Salmond that we see week in and week out on TV turned up. The undecided

:05:43.:05:48.

voters hit the nail on the head - he can win shouting match, he does that

:05:49.:05:52.

regulate, but that is different to winning an argument. Persuasion is

:05:53.:05:58.

different to performance. People turned up, desperate for answers to

:05:59.:06:04.

the questions, and they didn't get them. When they started talking

:06:05.:06:10.

about the currency and independent Scotland, the audience actually

:06:11.:06:14.

groaned. You could hear Alex Salmond grown and the Nationalists grown. I

:06:15.:06:20.

accept the Nationalists don't care what currency we use. They will vote

:06:21.:06:25.

yes even if they believe we will be worse off, but for most of us, we

:06:26.:06:28.

want to know what currency is going to be funding our public services,

:06:29.:06:33.

what our pensions are going to be worth, and what we all pay for our

:06:34.:06:40.

weekly shopping. It matters. Blair Jenkins will tell us we should stop

:06:41.:06:44.

asking the question because he knows it is important. I don't think we

:06:45.:06:49.

saw much of Alistair Darling's debating skills. We got into big

:06:50.:06:54.

subjects last night, like the threat to public services, if they -- if

:06:55.:07:01.

there were to be a no vote. And the need to find new jobs. That is

:07:02.:07:08.

something people are talking to me about today. Let's talk about the

:07:09.:07:13.

job creating powers in Scotland. Even as Alex Salmond was talking

:07:14.:07:17.

about the NHS, you had to concede that health care is pretty much

:07:18.:07:20.

fully devolved from the Scottish bollard and he is in charge of it,

:07:21.:07:25.

not anybody in Westminster. No one is disputing health policy is

:07:26.:07:27.

devolved, but funding isn't devolved. The funding for Scottish

:07:28.:07:34.

Parliament and government is determined at Westminster. And as

:07:35.:07:40.

they are cutting in Westminster and as they intend to, and in Wales we

:07:41.:07:45.

have seen a cut in real terms in health spending, and we have to

:07:46.:07:52.

understand with a Tory government, who think that public services are

:07:53.:07:55.

an unnecessary expense, that will only go downhill. They talked about

:07:56.:08:04.

more powers for the Scottish Parliament if there was a no vote.

:08:05.:08:08.

Better Together will have to get it together in what is being offered. I

:08:09.:08:14.

find it extraordinary the whole case for independence rests on things

:08:15.:08:18.

that are already devolved. Alex Salmond asked what more job-creating

:08:19.:08:24.

powers will be devolved, but you might ask about what educating

:08:25.:08:29.

powers will be devolved. They have the power to create jobs. He

:08:30.:08:34.

pretended he didn't have any powers. This whole debate rests on to make

:08:35.:08:39.

things, seemingly, which are completely within the control of the

:08:40.:08:42.

Scottish Parliament. It was extraordinary that after three weeks

:08:43.:08:45.

since the debate where he didn't mention the NHS at all, where he had

:08:46.:08:50.

been trying to scare people about privatisation, he was forced to say

:08:51.:08:54.

that there is no way that Scotland could be. Private eye is the NHS

:08:55.:08:58.

because just that morning the doctor in the hospital in Newcastle who had

:08:59.:09:03.

started the whole SNP lies said it was just simply not true what he was

:09:04.:09:06.

saying and what Blair Jenkins's campaign was saying. People in

:09:07.:09:12.

Scotland are interested in how we are going to grow our economy, and

:09:13.:09:16.

create more jobs for young people. Talking to people of my age and

:09:17.:09:21.

older... Did Alex Salmond tell people last night? I think we did

:09:22.:09:27.

last night. We can invest more in childcare which gets people back

:09:28.:09:31.

into the working economy. Create more jobs. We can incentivise

:09:32.:09:35.

companies to do more in terms of research and develop in. We can do

:09:36.:09:39.

lots of things but what people of my age and older are saying is that it

:09:40.:09:45.

is the younger generation, children and grandchildren, they are voting

:09:46.:09:50.

yes, which is moving older people. What a fantastic gift to bequeath to

:09:51.:09:55.

the younger generation, the gift of their own country. Who is moving in

:09:56.:09:59.

your own direction? The last two opinion polls which we have made, we

:10:00.:10:09.

have an organisation and political focus on reaching undecided voters.

:10:10.:10:15.

Again, the two examples he gave as a case for independence were childcare

:10:16.:10:20.

and business. Things which were devolved already! Thank you very

:10:21.:10:22.

much. Much of the talk around the

:10:23.:10:24.

referendum has been about inequality in Scotland and we've heard calls

:10:25.:10:27.

for a more even playing field. So how do Scotland's super

:10:28.:10:30.

rich see the debate? If an independent Scotland

:10:31.:10:32.

did try to raise taxes would Our economics correspondent Colletta

:10:33.:10:34.

Smith has been finding out. Butler. The world of Butler service

:10:35.:10:59.

isn't consigned to costume drama. To state in a hotel like this, you'd

:11:00.:11:04.

have to have a certain amount of expendable income anyway. So the

:11:05.:11:08.

people who requested a plus service and book a hotel based on its Butler

:11:09.:11:12.

service tend to be the super wealthy anyway. The role of the Butler is to

:11:13.:11:19.

assist the guest in order to make their experience here in Edinburgh

:11:20.:11:23.

the best it can be. That can be from helping them run their errands, to

:11:24.:11:28.

ironing their shirts and polishing their shoes, ready for them to use.

:11:29.:11:34.

We also quite recently had a guest who didn't have enough time to pick

:11:35.:11:39.

and pay for his engagement ring, so one of our Butler team had to go out

:11:40.:11:43.

and get his engagement ring. And, of course, there was a happy ending to

:11:44.:11:51.

that story because she said yes. Thank you. This kind of life of

:11:52.:12:00.

luxury is beyond the pay of most of us put the number of wealthy people

:12:01.:12:03.

living in Scotland, investing, spending and paying taxes, impacts

:12:04.:12:09.

the whole economy. At the moment, across the UK, the top 1% of earners

:12:10.:12:14.

are paying 20% of the income tax because they are paying at a much

:12:15.:12:18.

higher rate. Whatever your views on whether that is fair or not, it

:12:19.:12:24.

makes that 1%, the super rich, very important to the way Scotland would

:12:25.:12:27.

function as an independent country. Our clients are important to the

:12:28.:12:33.

committee because they are investing their savings in Scottish

:12:34.:12:38.

businesses. So, if life looks more profitable on the other side of the

:12:39.:12:42.

border, would it be easy for the super-rich to move themselves and

:12:43.:12:49.

their money? Yes, it is simple. Theoretically, money can move quite

:12:50.:12:54.

quickly. There are plenty of people at the top end of the earnings scale

:12:55.:12:58.

who are excited about the benefits of independence. Hello, come on in.

:12:59.:13:05.

This man runs an IT firm and his elegant mansion isn't too far away.

:13:06.:13:10.

I don't personally mind paying more tax. If that's what it takes to be

:13:11.:13:18.

able to create more opportunity because it isn't the percentage of

:13:19.:13:22.

the pie that is important to me. It is how big is the pie and how can I

:13:23.:13:28.

see is a piece of it? Others among the super-rich would mind paying

:13:29.:13:32.

more taxes. The rate at the moment, the 40%, I think is fair. I don't

:13:33.:13:41.

think there is much hope for increasing that, that would get

:13:42.:13:47.

people upset. Do you think it is likely a Scottish government would

:13:48.:13:51.

or could increase taxes at the higher end of the spectrum? I

:13:52.:13:54.

honestly believe that taxes can only go one way, up. So, you might be

:13:55.:14:00.

able to take corporation tax down, but overall, the tax take would have

:14:01.:14:07.

to go up in order for us to survive. The thing about changing income tax

:14:08.:14:11.

rates is that people are a lot more mobile than companies. It is easier

:14:12.:14:14.

for individuals to relocate across the border if there is a load income

:14:15.:14:19.

tax rate on the other side. A few years ago, we lived in the South of

:14:20.:14:24.

France rather than in the US or UK, and one of the reasons we chose that

:14:25.:14:29.

is that, actually, because of the tax structure down there, it was a

:14:30.:14:33.

more attractive regime for us. We also lived in the Bahamas. So, tax

:14:34.:14:39.

regimes can affect your decision-making, no doubt. The

:14:40.:14:42.

government in Scotland and the UK might need to compete to hang onto

:14:43.:14:48.

the super-rich. The weather might not even a greatest. My Australian

:14:49.:14:53.

wife occasionally complains about that too. On balance, it is a very

:14:54.:14:59.

good place to live. And if you can couple that with appropriate

:15:00.:15:05.

incentives for entrepreneurs, then I definitely believe you can attract

:15:06.:15:10.

people to Scotland. An independent Scottish government would have to

:15:11.:15:14.

tread a delicate line between making a system which serves the

:15:15.:15:18.

super-rich, and sticking to promises of creating a fairer Scotland. Those

:15:19.:15:22.

defined goals might not be so easy to smooth out.

:15:23.:15:26.

Joining me now from Southampton is Eben Wilson,

:15:27.:15:28.

And in the studio the Herald's political commentator

:15:29.:15:30.

Is, does the ease with which the super-rich can slip across a border

:15:31.:15:42.

into the rest of the UK mean that it would never dare put up income tax?

:15:43.:15:51.

Not at all. I think in an independent Scotland you will see

:15:52.:15:56.

tax broadly rising. Not to the extent of other economies such as

:15:57.:16:02.

Denmark Norway. That doesn't lead to an exodus of businessmen, if they

:16:03.:16:05.

were only interested in tax, they would all be living in Romania, for

:16:06.:16:12.

example. It just isn't like that. There are plenty of wealthy people

:16:13.:16:16.

in Norway, that is because the Norwegian economy is very productive

:16:17.:16:21.

and very dynamic. It is at these economies that are readily feature

:16:22.:16:27.

the top in the World Bank's list of countries where it is best to start

:16:28.:16:33.

a business. But the example you've used is slightly disingenuous,

:16:34.:16:39.

because what you would do is create a situation where it would be easy

:16:40.:16:44.

to domicile yourself in the United Kingdom. It would be the ease with

:16:45.:16:47.

which you could do it that would make it tempting. It depends on the

:16:48.:16:51.

type of tax regime both sides of the border. Norway has the lowest in the

:16:52.:17:08.

world, its GDP per head is high. It sailed through the banking crisis

:17:09.:17:12.

without any trouble at all. That is what smaller, more dynamic economies

:17:13.:17:22.

can achieve. Evan, you find yourself on the same side

:17:23.:17:22.

can achieve. Evan, you find yourself on the as the independence debate

:17:23.:17:27.

with a, both yes supporters, but you would both have a different view

:17:28.:17:32.

about taxation. Can it be lowered? Of course, you would just have to

:17:33.:17:39.

cut some spending. It is not that difficult to find spending you can

:17:40.:17:45.

cut in Scotland. The key is you are trying to release entrepreneurial

:17:46.:17:50.

energy. You want a small, middle and attract big corporations to make

:17:51.:17:53.

Scotland grow very fast. But she would end up with a similar problem,

:17:54.:18:02.

it is very easy to slip across the border in and out of an independent

:18:03.:18:08.

Scotland. We support tax competition, that is why you want

:18:09.:18:15.

it. It shows that tax competition leads to a squashing down of tax

:18:16.:18:20.

rates. Lower tax rates to create growth. We want to lower taxes to

:18:21.:18:27.

create jobs. The idea of business going across the border is

:18:28.:18:34.

ridiculous. Businesses go where the market is. That is where businesses

:18:35.:18:41.

go, but the... No, the point that was being made was that the

:18:42.:18:46.

individuals who run the businesses can find it very easy to run them

:18:47.:18:54.

anywhere. Not necessarily, businessmen are like anyone else,

:18:55.:18:57.

they like to live in a stable, positive society, they don't want to

:18:58.:19:02.

be sticking around tax havens. That is not the key issue, the key issue

:19:03.:19:07.

is where is the best environment for an economy to grow, for businesses

:19:08.:19:11.

to flourish, that doesn't necessarily coincide of low

:19:12.:19:16.

taxation. What would happen is that a businessman will go where they can

:19:17.:19:21.

feel that they are achieving things. The cash is what they -- the cash

:19:22.:19:29.

that they take on themselves is not what they are in business for. That

:19:30.:19:34.

is the environment we have two create. I think you are confusing

:19:35.:19:37.

the business activity and where capital can go. We can lose capital

:19:38.:19:44.

abroad, but that is a different issue. All rights... We will have to

:19:45.:19:49.

leave it there. Thank you very much. 131 Scottish business leaders have

:19:50.:19:53.

signed a letter speaking out against independence, which will appear

:19:54.:19:56.

in tomorrow morning's newspapers. They claim that the business case

:19:57.:19:57.

for independence has not been made and that uncertainty still surrounds

:19:58.:20:00.

a number of vital issues. Earlier I spoke to the

:20:01.:20:03.

BBC's Business Editor Kamal Ahmed. I began by asking him

:20:04.:20:06.

who are some of the bigger names who Well, this letter goes from the very

:20:07.:20:20.

largest businesses, Douglas Flint, the chiming of HSBC, Andrew

:20:21.:20:27.

McKenzie, the chief executive of a large mining company is another.

:20:28.:20:31.

Some are very famous household names, Audrey Baxter, the executive

:20:32.:20:39.

of Baxter food group. And Simon Thompson, the chief executive of

:20:40.:20:50.

cairn energy. It is significant because it is the number as well as

:20:51.:20:54.

the actual businesses that it represents. 133 business people have

:20:55.:20:59.

signed the letter and also a number of smaller businesses. A small

:21:00.:21:08.

engineering firm in the East End of Glasgow, for example. People are

:21:09.:21:12.

saying that businesses have concerns of independence, they are arguing

:21:13.:21:16.

that this goes on the largest of the smallest businesses. Is it likely to

:21:17.:21:30.

change anybody's mind? I think businesses are leading to Thursday

:21:31.:21:38.

night, where the CBI hold their annual dinner in Glasgow. The chief

:21:39.:21:47.

executive of BT group will be there, a well-known opponent of

:21:48.:21:52.

independence. The 'Yes' campaigners say they have many businesses which

:21:53.:21:56.

are pro-independence and that if Scotland did become a independent

:21:57.:22:02.

company that will be good for business. I imagine they are

:22:03.:22:08.

collecting their thoughts together and getting ready for that push

:22:09.:22:09.

before the dinner. Now let's have a look at the rest

:22:10.:22:15.

of the day's news. Joining me now are journalist Kirsty

:22:16.:22:18.

Scott and novelist Peter May. Let's pick up, that debate, what did

:22:19.:22:28.

you make of it? I thought it was rummy. I don't think it will have

:22:29.:22:35.

changed many people's mind. The point is that either of them were

:22:36.:22:40.

making was lost in the cross talk, be speaking and shouting over one

:22:41.:22:43.

another. People are looking for clarity. The debates didn't produce

:22:44.:22:50.

that. We asked our viewers on Twitter what they made of the

:22:51.:22:52.

debate. Alex Salmond was criticised in the

:22:53.:23:17.

first event for being this passionate -- dispassionate. He

:23:18.:23:24.

certainly was. I came away feeling quite depressed after it, it was

:23:25.:23:29.

really just style over substance, there was no clarity. When you are

:23:30.:23:32.

following it on Twitter, the amount of frustration, they weren't

:23:33.:23:37.

answering the questions. This is modern Scotland, we have two middle

:23:38.:23:41.

aged men in suits shouting at each other, but is not the type of

:23:42.:23:46.

Scotland we want. It ended up clouding the issue is, Peter is

:23:47.:23:51.

right, it would change the issues. There is no clarity. Better Together

:23:52.:23:58.

have taken a different tack it tonight. The latest other party

:23:59.:24:02.

political broadcasts went out on TV a few hours ago. It is a mum in her

:24:03.:24:08.

kitchen, saying she hasn't made up her mind. Then she has an epiphany,

:24:09.:24:13.

which we can look at now. I've made up my mind, I will do what is best

:24:14.:24:18.

for Scotland. So, that'll be a 'No' from me. Time to get to work. We

:24:19.:24:27.

have all seen at the whole thing as many viewers will have. Is that more

:24:28.:24:33.

persuasive? It is a very different tone. It certainly is very

:24:34.:24:38.

different. I used to be a script editor for a Scottish soap, I'm

:24:39.:24:42.

afraid if that script had arrived at my desk, I would have sent it back

:24:43.:24:48.

for a rewrite. The transition from uncertainty to those in five seconds

:24:49.:24:52.

at the end. I don't think it is very convincing. But it will have been

:24:53.:24:55.

very carefully scripted, it will have been grouped, they know who

:24:56.:25:02.

they would have targeted, the precise vocabulary to get in.

:25:03.:25:07.

Presumably, it is uncertain women voters. Will it work? I think, when

:25:08.:25:15.

I first saw it, Peter and I were both disappointed in it. They use an

:25:16.:25:18.

actress, it would have had more power to use a normal person. It was

:25:19.:25:23.

very cleverly made. She is sitting in a messy kitchen, she is the

:25:24.:25:30.

Scottish version of the soccer mum. That is who the campaigns need to

:25:31.:25:37.

convince. She is saying she is not ready to take the jump. Yes, you

:25:38.:25:42.

possibly see yourself in her. There were images of the kids, the crowns

:25:43.:25:50.

on the table. Yes, I think that could hit home. 'Yes' Scotland will

:25:51.:25:58.

have their own out tomorrow. Let me pick up what I was discussing

:25:59.:26:02.

earlier, as letter from business leaders. Will that be more

:26:03.:26:09.

persuasive, do you think? Do people care what Germans think? --

:26:10.:26:20.

chairman. No, I don't think so. The focus, people have said, is small

:26:21.:26:27.

and medium businesses. When large businesses say they will move their

:26:28.:26:29.

headquarters, that can be a turn off. But if it is a smaller

:26:30.:26:35.

business, it will have some impact. People will make up their own minds

:26:36.:26:39.

for their own reasons. These things will add to it, but in terms of

:26:40.:26:43.

people thinking a definite 'No', I don't think so. I think, you have

:26:44.:26:50.

won a group coming out with a statement on one side, another with

:26:51.:26:56.

one on the other side... I'm sure it won't be long before an equal number

:26:57.:27:00.

of businessmen signed a letter supporting 'Yes'

:27:01.:27:41.

arguments in a different setting, that can be very persuasive. Thank

:27:42.:27:46.

you both for talking to us. That is all from us, I'll be back at the

:27:47.:27:51.

same time again tomorrow night. Until then, have a good evening.

:27:52.:27:53.

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