Murnaghan Interview with Nicola Sturgeon Scottish First Minister

ANY QUOTES USED MUST BE ATTRIBUTED TO MURNAGHAN, SKY NEWS

DERMOT MURNAGHAN: Now then, when the Smith Commission proposed new powers for the Scottish parliament last week, Scotland’s new First Minister, Nicola Sturgeon, said it wasn’t enough.  She criticised the report for falling short of the promises made by Westminster politicians just before the referendum.  The Chancellor, George Osborne, looks set to anger the SNP a bit more this week, he is expected to confirm plans to let Northern Ireland set its own rates of corporation tax even though that hasn’t been offered to Scotland.  Let’s talk right now with Nicola Sturgeon, she joins me from Glasgow, a very good morning to you and a very happy St. Andrew’s Day to you.

NICOLA STURGEON: Happy St Andrew’s Day to you too.

DM: That’s very nice of you.  You have already said you don’t think the Smith Commission goes far enough so let’s talk specifics, if Northern Ireland does get ability to vary its rates of corporation tax do you think that should apply to Scotland as well?

NICOLA STURGEON: Yes, I do.  I think if corporation tax is devolved to Northern Ireland, as there is an expectation that it will be this week, then there is no argument that says it shouldn’t also be devolved to Scotland.  Can I say about the Smith Commission firstly though, I do very much welcome what is in the Smith Commission report.  I think Lord Smith did an excellent job, it was no mean feat to bring five different political parties together and to get agreement on the recommendations that are included in his report so I very much welcome it as far as it goes and I look forward to being able to use the additional powers that it recommends to the benefit of people of Scotland but I do think there are some significant powers that are not in the Smith Commission report that we should have in Scotland.  Corporation tax, indeed a range of taxes, are one of them but also power over the minimum wage, greater powers over the social security system because what is really important is that we get our hands on the range of levers of power that allows us to grow our economy and tackle some of the deep seated inequalities that we have in Scotland.

DM: Just list those for us.  We have corporation tax, what about tax benefits, thresholds, even VAT?

NICOLA STURGEON: Well there is a proposal in the Smith Commission recommendation that a proportion of that revenue should be assigned to Scotland. I support independence for Scotland, I don't think that’s any secret but I also though accept that as long as we are part of the United Kingdom there are European rules that would make it difficult to devolve completely control over VAT but  what I do think is important is that we have a range of taxes under our control.  The Smith Commission recommends income tax to be devolved although interestingly it says that the personal allowance of income tax, which is one of the key levers you can use to lift people out of poverty, should remain reserved to Westminster.  My key reaction here is that the Smith Commission is welcome insofar as it goes, I think it’s the power of votes in Scotland in the referendum that have forced the pace to this stage.  I think now the Scottish people can decided if they want to, to use the power of their votes in the general election to up this offer and get more powers devolved to Scotland.

DM: Okay, I’ll talk about that a bit more in a moment or two but as we are discussing the economy, the thought occurs, is there a part of you that is thanking your lucky stars that you didn’t win that independence referendum because right now, given the state of the oil price, with analysts saying it is heading towards perhaps $60 a barrel and your calculations, the SNP’s calculations for Scottish independence were based on something around about $100, there would be a mighty black hole in your economic plans.  They’d already be, as you were planning to become independent, the financial institutions, the banks would already be planning to pull the rug on an independent Scotland.

NICOLA STURGEON: Well the oil price right now is the feature of factors around supply and demand and the global market.  The majority of independent forecasts suggest that oil prices will rise again next year, the projection is that oil prices will be over $100 a barrel next year and OPEC also forecasts rising oil prices so the outlook in the sector  are very, very positive ones.

DM: Those aren’t the forecasts that I’ve read, Ms Sturgeon, the forecasts are still heading down.

NICOLA STURGEON: Well I’m telling you what OPEC are forecasting but at the heart …

DM: You’re hoping.

NICOLA STURGEON: … the point I want to make is at the heart of the proposals we put forward for the stewarding of our oil revenues was the establishment of an oil fund.  We were suggesting that an independent Scotland, and indeed we think the UK should do this as well, is that we should steward our oil revenues in a way that is responsible, we should manage our public finances in a way that allows us over time to do what Norway has done over the past years which is save a proportion of those revenues for the benefit of future generations so our entire approach to what is a massive asset for the Scottish economy, our economy is not dependent on oil, it is a big advantage but we should steward that advantage in a more responsible way than the UK has done in the decades gone past.

DM: Now talk to me about the general election, more forecasts here but forecasts in favour of the SNP saying, what, you could have an extra 20 or 30 MPs in the Westminster parliament, many of those coming of course from the Labour party.  How would you leverage, as the word is, that kind of power to get the goal you want?

NICOLA STURGEON: Well firstly, if I may, I am not going to take any single vote for granted in the general election.  The SNP has to make its case to the people of Scotland and seek to persuade people to vote for us and we’ll be working very hard to do that but the key message at the heart of our general election campaign will be this one: the referendum showed very clearly that power over the future of Scotland lies with the Scottish people.  If we want to make sure that we build on the momentum of the referendum,  if we continue to move forward as a country, if we want to continue to see more powers devolved to the Scottish parliament then the best way to secure that is through the vote of the Scottish people voting SNP to give us significant influence in the House of Commons and …

DM: But move on then, you will have some SNP MPs in the Houses of Parliament, what will you do with them?  If you end up propping up a minority Miliband administration, Labour is in a very difficult position isn’t it because it can’t offer you more powers without ultimately jeopardising the Labour MPs that come from Scotland.

NICOLA STURGEON: It is not our job to prop up anybody, it is our job to win the best possible deal for Scotland and that’s what we will do.  I have said very clearly that an SNP group of MPs in the House of Commons would never put the Conservatives in to government, we would never be part of a government with the Conservatives in.  If Labour was dependent on the votes of SNP MPs then it would have to seriously up its game in terms of the powers it was promising to the Scottish people but the key message here is that Scotland, by sending a strong team of SNP MPs down to Westminster, can have a much, much stronger voice and a much greater influence.  So my message to people across Scotland is even if you have never voted in a Westminster election in the past, is that in May next year lend us your vote to make sure that Scotland’s voice is heard and that Scotland’s interests are protected.

DM: A quick question about Her Majesty the Queen, you’re meeting her later this week aren’t you, to be confirmed as First Minister of Scotland.  In your discussions with her will you have to mention the fact that at some point an independent Scotland might have to hold a referendum on becoming a republic?  There are plenty of people there, many within your own party, who think that an independent Scotland ultimately should be a republican Scotland.

NICOLA STURGEON: Well it’s not something I agree with and it’s not something I’ve planned but as I am sure you are very well aware, the discussions that I will have with Her Majesty will be entirely confidential but I’m very much looking forward to the opportunity to meet with her.

DM: Okay, Nicola Sturgeon, First Minister, thank you very much indeed, very good to talk to you.

NICOLA STURGEON:  Thank you.