No negotiations have taken place between the Bank of England and Scottish Government about a currency union, John Swinney has admitted.
The Finance Secretary was pressed by Conservative MSP Murdo Fraser after the bank last week took the rare step of proactively issuing a public statement disputing comments made by the Perth and North Perthshire MSP in a press release.
Mr Swinney did insist that “technical discussions” are under way but relented under pressure in Holyrood’s debating chamber that a different spin could have been picked up from his previous intervention.
He said: “If, by my choice of words last week, I gave the impression that the Bank of England has been involved in negotiating a currency union, I say to Parliament that that was not my intention.
“I have referred to the technical discussions in parliament on countless occasions. Technical and factual discussions have taken place between the Scottish Government and the Bank of England.”
The Scottish Government press release had declared “technical discussions” on “our proposal for a currency union” had taken place between officials and the bank.
Mr Swinney told MSPs: “Following agreement in March 2012 from Mervyn King and as set out to the Scottish Parliament, a number of technical and factual discussions have taken place with the Bank of England.
“Following the first meeting between the First Minister and governor (Mark) Carney in January of this year, it was agreed that the technical discussions inaugurated by his predecessor Lord King … would continue.”
Mr Swinney said the “factual and technical discussions were to inform the work of the Scottish Government’s Fiscal Commission Working Group, set up to develop an economic framework for an independent Scotland.”
After the topic question session, Mr Fraser said: “I cannot understand why it has taken six full days for the finance secretary to set the record straight on such a critical matter.
“It is indicative of the Scottish Government’s scant credibility on this issue that John Swinney has admitted he misrepresented the position in relation to the Bank of England discussions.
“It should not have taken nearly a week for the SNP to embark on this humiliating climbdown.
“When it can’t even get its story straight on what talks it has had with the Bank of England, how can the public be expected to believe anything it says on currency?”