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Salmond meets Lloyds TSB bosses | |
(about 3 hours later) | |
The first minister has been meeting Lloyds TSB bosses in a bid to safeguard Scottish jobs in its proposed merger with HBOS. | |
Alex Salmond said he would present the "strong case" for maintaining jobs in Scotland during the meeting at Lloyds TSB's headquarters in London. | |
About 17,000 HBOS jobs are based in Scotland. The banking group has its headquarters at the Mound in Edinburgh. | About 17,000 HBOS jobs are based in Scotland. The banking group has its headquarters at the Mound in Edinburgh. |
However, fears have been raised many jobs could go if the merger proceeds. | However, fears have been raised many jobs could go if the merger proceeds. |
Mr Salmond told the recent SNP conference that the £37bn given to three of Britain's biggest banks, including Royal Bank of Scotland, had thrown up the question of whether this money was available to Lloyds TSB and HBOS separately. | Mr Salmond told the recent SNP conference that the £37bn given to three of Britain's biggest banks, including Royal Bank of Scotland, had thrown up the question of whether this money was available to Lloyds TSB and HBOS separately. |
We've got to be sure that under any circumstances we get the best possible deal for Scotland Alex SalmondFirst Minister | |
The Scottish Government has written to the Treasury on the issue but has yet to receive a reply. | The Scottish Government has written to the Treasury on the issue but has yet to receive a reply. |
Speaking to BBC Radio's Good Morning Scotland programme, Mr Salmond said he would be making a presentation on the case for Scotland at the meeting and arguing that, if the takeover succeeds, Scotland would be the best place for them to do business. | |
He added: "Our priority is to protect jobs and decision making in the Scottish financial sector. | He added: "Our priority is to protect jobs and decision making in the Scottish financial sector. |
"Scotland has very substantial cost advantages to do high quality financial sector business. Our presentation will include testimonials from some of the key international companies who moved here from London, and will detail the better and more effective cost ratios of 30-40% that they have established." | "Scotland has very substantial cost advantages to do high quality financial sector business. Our presentation will include testimonials from some of the key international companies who moved here from London, and will detail the better and more effective cost ratios of 30-40% that they have established." |
Mr Salmond stated again that his preference would be for HBOS to remain independent, as it had been "hard-wired" into Scottish society for decades. | Mr Salmond stated again that his preference would be for HBOS to remain independent, as it had been "hard-wired" into Scottish society for decades. |
However, he conceded that the Scottish Government had to be ready to meet any other circumstances that arose. | |
He said: "If the merger is a likely outcome, if not the only possible outcome, then we've got to be sure that under any circumstances we get the best possible deal for Scotland." | He said: "If the merger is a likely outcome, if not the only possible outcome, then we've got to be sure that under any circumstances we get the best possible deal for Scotland." |
Cash injection | |
The £12.2bn merger of Lloyds TSB and HBOS has met opposition in some quarters in Scotland. SNP backbencher Alex Neil has campaigned against the deal, saying it would cost thousands of Scottish jobs. | |
The Scottish Liberal Democrats accused Mr Salmond of "throwing in the towel" and accepting the takeover of HBOS by Lloyds TSB as a fait accompli. | |
The Scottish Parliament will debate a Lib Dem motion on Thursday calling for HBOS to instead be maintained as an independent financial institution. | |
What Alex Salmond is doing is mixing up his role as SNP leader and his role as first minister Tavish ScottScottish Lib Dem leader | |
They argue that the circumstances under which the merger was agreed have now been fundamentally altered by the government's subsequent injection of tens of millions of pounds of taxpayers' money to recapitalise banks including Lloyds TSB and HBOS. | |
Tavish Scott, the leader of Scottish Lib Dems, said: "I can't understand why Salmond is throwing in the towel and assuming the takeover is going to go ahead. | |
"He shouldn't be here talking to Lloyds TSB. He should be talking to the chancellor. | |
"What Alex Salmond is doing is mixing up his role as SNP leader and his role as first minister. His principle duty is to be engaging with the UK Government and saying, given the taxpayer investment in the banking sector, why should this merger go ahead?" | |
Labour's finance spokesman Andy Kerr said Mr Salmond should announce at the meeting that he is scrapping the Scottish Government's local income tax policy. | Labour's finance spokesman Andy Kerr said Mr Salmond should announce at the meeting that he is scrapping the Scottish Government's local income tax policy. |
"CBI Scotland and other business organisations have said that the local income tax would undermine the chances of attracting corporate headquarters to Scotland and the first minister should recognise that," Mr Kerr said. | "CBI Scotland and other business organisations have said that the local income tax would undermine the chances of attracting corporate headquarters to Scotland and the first minister should recognise that," Mr Kerr said. |