Posts tagged ‘union and empire’

Nov 11, 2019

What is mine is mine and what is yours is also mine: Scotland in union

Flag of the Company of Scotland trading to Africa and the Indies

How England colonised Scotland.

A report out this week is critical of Westminster’s handling of the economy and its impact on Scotland – disastrous. It argues that Scotland’s potential for wealth is – big – but the actuality in a decidedly unequal union is – dodgy.

For fifty years we have watched as £zillions of revenue from oil and gas taken out of Scottish waters flows downhill to London to reduce the size of the national debt, support tax breaks and financial incentives for oil and gas multinationals, enable eye-wateringly costly building projects and infrastructure to boost the economy of London.

Tax revenue from the UK’s offshore industries, 90% of which lie off Scotland, could have been (should have been) designated as Scottish revenue. It wasn’t. Instead Westminster dreamed up a make-believe place which they called the UK Continental Shelf. This meant Scotland could not claim oil and gas fields as hers because they were situated in Wonderland aka the UK Continental Shelf.

At one fell swoop the enormous wealth that might have made such a difference to Scotland’s scattered, much of it rural, population – to the provision of health and social care, education, transport was whipped away. Imagine if anything like the money squandered on the bottomless pit that is London’s cross-rail project or HS2 had been invested around Scotland – proper roads and choice of transport in the Highlands – all you can do is imagine for it never happened. Wealth is what goes to southeast England, from Scotland.

Just to be sure that uppity Scots would not benefit from Britain’s offshore bonanza Labour Prime Minister, Tony Blair, picked up an HB pencil and drew a line through Scottish waters re-allocating a chunk to England – exemplifying that age-old practice of the coloniser to annexe territory wherever and whenever because they have the powers to do so. Westminster must have been gratified at how easy it was to achieve. That sort of thing used to cause wars.

It is one thing to allow fish taken from Scottish waters to be regarded as Scottish but not highly valuable oil and gas. No ifs no buts Westminster ignored protests from Scotland because despite the union of the UK being described as a union of equals it isn’t. The UK is England’s little empire. Scotland is a mere colony; there to provide the mother country with resources not to benefit directly from them.

Scotland’s waters

Imagine the scene – an office deep inside Westminster where a bourach of suited men with dandruff on their shoulders leaning in over a large table – highly polished by a migrant worker on minimum wage – concocting the means by which they could appropriate Scotland’s cash cow like a bunch of 20th century border reivers.

Of course the colony of Scotland was thrown a crumb in the form of per capita portion of the revenues but as England’s population is ten times that of Scotland you don’t have to be a financial wizard to realise which of the equal partners of the union got the lion’s share.

The plotters in London weren’t even very good at getting the best value out of hydrocarbons. A simple comparison with Norway which virtually mirrors the UK’s oil and gas industries reveals quite astonishingly that the Norwegians generated more than double the revenue of the UK on every single barrel of oil. These civil servants and politicians managed not only to screw Scotland but screw themselves into the bargain. Only just not as much.

Back in 2014 at the time of the independence referendum Scotland was in the unusual position of being a producer of one of the world’s most lucrative products and yet the message coming out from the Conservatives, Labour and Liberal Democrats was this was a bad thing for once oil was gone it was gone and then where would Scotland be? Same place England would be. And as the silent and largely forgotten partner in the precious union dependent on crumbs tossed northwards from London, that’s where. Since Scotland has a tendency to see Nordic countries as fellow-nations it is highly likely that had Scotland been in receipt of her own oil and gas revenues Scots would be cushioned from the worst times through a Norwegian type oil fund that could have eased the transfer from hydrocarbons to renewable.

There is no question that Westminster is responsible for severely damaging Scotland’s economy. If what came out of the North Sea had been plastic waste Westminster would have let it alone instructing Scotland to deal with its own problem but it wasn’t waste it was wealth. Like the EU farming funds meant for Scottish farmers Westminster grabbed oil and gas revenues for itself. That’s the thing about colonists, remember – what’s theirs is theirs and what is the colony’s is also theirs – if it is valuable.

This is simply state organised abuse. You know the scenario where an abusive husband insists his abused wife stays with him because she keeps getting beaten up – and he’ll protect her. There’s an Eric Bogle song, Glasgow Lullaby about a woman who keeps taking a beating from her drunken man and never leaves –

Oh my God, it’s a weary, weary life
Who wid be a drinkin’ man’s wife
Who wid thole a’ this trouble and this strife
Who but a silly woman

Scotland is Westminster’s abused wife. She should tell it/him where to get off then take away its/his keys to the shared house. Scotland needs to just say no to Westminster. Scotland too poor to stand on her own? It’s the oldest trick in the bullies handbook. Demoralize, demean, intimidate, undermining confidence. Lie. You’re too stupid. Too weak. We’ll hurt you if you leave.

It is said that clarifying what counts as Scottish in the UK economic stakes is complicated. Well, not that complicated but I’ll simplify it.

Let’s take Scotland’s international trade. Scotland’s exports to the rest of the world are counted as Scottish. Or sometimes they are. If goods or services leave Scotland for England, Wales or Northern Ireland and then get jumbled up with other goods or services and are subsequently exported then whatever Scotland’s input is disappears and the export is recorded as a UK export. I have not been able to discover what an English-produced good sent to Scotland and then exported as part of some other product is designated.

Of course that applies to goods apart from oil and gas which are always listed under the UK. The same applies to services provided by offshore industries – these also get added to UK income not Scottish. Anyone living around northeast Scotland will know that over the past fifty years servicing oil and gas here and across the world has been a major source of work and income.

So what will happen in the coming months with another independence referendum on the horizon? The UK’s media will rediscover its Scottish granny once more and we’ll have wall-to-wall Britain rammed down our throats. Once again Scots will be warned and threatened and sneered at for their ingratitude at wanting their country to regain its soverign nation status. You won’t have oil and gas…and neither will England and rumpUK. You’re too wee…as if size matters.

Scotland’s land area covers 77,933 km2 and the population is about 5,424,000. The GDP is currently about $237.628 billion that works out per capita about $43,740. Compare that with other small nations – that just happen to be the wealthiest countries in Europe.

Switzerland is a bit like Scotland – lots of mountains and lochs (they call them lakes) and, like Scotland is a top tourist destination. It doesn’t have oil and gas and it isn’t a major source of wind and wave power. Its population is around 8,600,000 not too different from Scotland’s and its land area a sqeeny 41,285 km2. So far so similar only its per capita is about double that of Scotland at US$ 85,374.

How about Norway another small European country, even more like Scotland with mountains and lakes and it does have an oil and gas industry. It covers 385,207 km2  much of that mountainous with a population around Scotland’s at just over 5,000,000. It is almost Scotland’s double – double in that its wealthy per capita is more than double at US$ 97,226 and its GDP again double, running northwards of $400 billion.

Luxembourg is a tiny country of .2,586.4 km2 and its population just over 600,000. It has no oil and gas and is not exactly graced with mountains and lakes. It is the third richest country in Europe with a per capita income of US $ 116,560.

If the gloom mongers of Better Together are to be believed Lichtenstein would be an independent basket case  – too wee, no oil and gas. It is tiny at only 160 km2  and its population is the size of Airdie’s at around 37,000. It does have mountains and virtually no unemployment. Per capita income is an impressive US $ 143,000.

The richest country in Europe is minisculy, tiny – only 2.2 km2. Monaco has a population of around 40,000 and its per capita runs to US $ 168,000. Oh and it doesn’t have high mountain or oil and gas. And not only is it the richest country in Europe it is the richest country in the world.

Anyone who would deny Scotland’s right to become independent on the basis of size needs to be told again and again and again that size doesn’t matter – it’s what you do with it.

One of the reasons these small independent countries are so successful is that they aren’t tied into an unequal, though precious, union with England run from Westminster.

Westminster has been interfering with Scotland’s economy even before the precious union was a gleam in the eye of some speculators both Scottish and English. In the days when building empires was all the rage and Scots thought they might dabble in just such a thing the Company of Scotland trading to Africa and the Indies (and incidentally the Americas) was established. It ran from 1695 – 1707 and the more observant of you will have registered the end date.

This enterprise proved to be an adventure too far – at least for the English state. It was the brainchild of that entrepreneur, William Paterson, the Scot behind the Bank of England.

At the time Scotland shared a monarch with England – the result of the union of the crowns in 1603 – but was otherwise an independent state. However, Scotland was left in no doubt that with the transfer of its king to London so the crown’s interests also moved south. in fact Scotland was regarded as an irritant (not to be dependent upon to back England in its wars of which there were many) and gadzooks a potential economic rival to the East India Company and Royal African Company. Bold Scotland’s attempt to create its own empire – a colony in northeast Canada around what is now Nova Scotia and Cape Breton Island in 1621 foundered a decade later – a victim of England’s war with France.

Nova Scotia

Paterson’s scheme to colonise Darien, (Panama) in Central America to provide Scottish commerce with a secure harbour with access to both Atlantic and Pacific oceans found initial support within England as well as Scotland. However, as soon as the East India Company got wind of the plan it lobbied the King and the English parliament to scupper it. English investors took fright abandoning the whole sorry mess to Scots speculators. Those of you familiar with recent banking scandals will not be surprised that bankers and businessmen were equally duplicitous in the 17th century and to cut a long story short much of the money raised to fund the venture disappeared into various deep pockets.

See Darien and Navigation Acts: https://lenathehyena.wordpress.com/2017/11/03/theres-nothing-like-the-smell-of-xenophobia-in-the-morning

The Darien scheme had two enemies, aside from the climate, the Spanish who regarded the area as theirs and the English who regarded everything else as theirs. Scots ships were attacked and relations with England reached their lowest point.

Having an enemy on its border concerned the English court and parliament while within Scotland hardship increased not least through the loss of so much money wasted on Darien, lost commerce from confiscated cargoes on top of several seasons of poor harvests which hit the poorest hardest with severe food shortages. Scotland was on her knees.

England’s Navigation Acts crushed Scottish commerce by forcing all goods imported into England to be transported in English vessels. With the wind behind them England’s parliament at Westminster pressed for union with Scotland – to enable it the better to control the land to the north.

There was no democracy back in the 18th century and Scottish merchants who lost fortunes because of Darien and England’s aggressive maritime policy that denied Scotland access to its markets, were made an offer they felt they could not refuse. Come in with England and we’ll pay you compensation or else. This was union at the point of a sword – blackmail. England had the whip hand and used it to great effect. The ‘compensation’ was a carrot – and Scotland’s wealthy donkeys bit.

And so some of Scotland’s landed interests and city merchants accepted the 18th century equivalent of cashback. Cash paid as compensation for losses incurred through the actions of England and Spain. This cashback was called the Equivalent. Needless to say such an enticement came with strings attached. Scotland would have to agree to take on a share of England’s horribly large national debt and – wouldn’t you know – be taxed higher.

Once agreed the Equivalent cashback was distributed from the offices of the former Company of Scotland in Edinburgh and from the ashes a new company emerged imaginatively called the Equivalent Company. This group transformed itself into a banking organisation out of which the Royal Bank of Scotland materialised. And we know what that led to.

Scots were reassured that the proposed union with England would retain Scotland’s sovereignty. Of course that was a lie.

I have read but cannot confirm that a century earlier James VI, the guy who started all this union malarkey, or perhaps it was Sir Henry Savile in 1604, remarked that union between Scotland and England would end with the conquest of Scotland by England. He/he wasn’t wrong.

Ref – A Union for Empire: Political Thought and the British Union of 1707, John Robertson ed.,, CUP 2006