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Bail out 'shows Union's strength' Bail out 'shows Union's strength'
(20 minutes later)
Prime Minister Gordon Brown has said the multi-billion pound bail out of two of Scotland's leading banks was testament to the strength of the Union. Prime Minister Gordon Brown has said the multi-billion pound bail-out of two of Scotland's leading banks was testament to the strength of the Union.
Speaking to BBC Scotland, Mr Brown said the £37bn rescue of the Royal Bank of Scotland, HBOS and Lloyds TSB showed the UK was "stronger together". Mr Brown said the £37bn rescue of Royal Bank of Scotland, HBOS and Lloyds TSB showed the UK was "stronger together".
He said the current economic crisis demonstrated smaller countries, such as Iceland were ill-equipped to cope. He said the current economic crisis demonstrated smaller countries, such as Iceland, were ill-equipped to cope.
Mr Brown said Scotland and the rest of the UK could support each other. Scotland's First Minister Alex Salmond accused Mr Brown of shattering the cross-party consensus on the bail-out.
He also took issue with the SNP's claim that an independent Scotland could emulate the success of smaller countries such as Ireland, Norway and Iceland - the so-called "Arc of Prosperity". Smaller countries
Mr Brown said recent events had shown these countries had not been adequately placed to deal with the turbulence in the financial markets. Speaking to BBC Scotland, Mr Brown took issue with the SNP's previous claims that an independent Scotland could emulate the success of Ireland, Norway and Iceland - the so-called "Arc of Prosperity".
He said recent events had shown these countries had not been adequately placed to deal with the turbulence in the financial markets.
While maintaining it was not the time for party politics, Mr Brown said: "We were able to act decisively with £37bn. That would not have been possible for a Scottish administration.While maintaining it was not the time for party politics, Mr Brown said: "We were able to act decisively with £37bn. That would not have been possible for a Scottish administration.
"We've seen the problems in Iceland, we've seen the problems in Ireland, we were able to put the whole strength of the United Kingdom's resources behind these two banks and I think it's important because I value the Scottish banking tradition, I think that everybody does.""We've seen the problems in Iceland, we've seen the problems in Ireland, we were able to put the whole strength of the United Kingdom's resources behind these two banks and I think it's important because I value the Scottish banking tradition, I think that everybody does."
The prime minister said that those running RBS and HBOS had made serious mistakes but the government was now working to stabilise the situation.The prime minister said that those running RBS and HBOS had made serious mistakes but the government was now working to stabilise the situation.
He said it was important that the institutions increased lending to businesses and those seeking mortgages.He said it was important that the institutions increased lending to businesses and those seeking mortgages.
He said: "We know that mistakes have been made, we know that there are failings that have to be addressed, we know that people have had to take responsibility for them. Equally however, we know the great strength of the values that were spread around the world by British banks, and particularly Scottish banks, over many, many years. And I believe we can rebuild these banks."He said: "We know that mistakes have been made, we know that there are failings that have to be addressed, we know that people have had to take responsibility for them. Equally however, we know the great strength of the values that were spread around the world by British banks, and particularly Scottish banks, over many, many years. And I believe we can rebuild these banks."
On the forthcoming Glenrothes by-election, the prime minister said he wanted to see the fall in fuel and food prices passed on to consumers. The prime minister's comments came as the Scottish Government held a special cabinet meeting on the economy.
But he refused to be drawn on whether he would campaign in person in the by-election, which takes place on 6 November. Mr Salmond said smaller countries such as Ireland and Norway had shown skill, resilience and success in surmounting their problems.