Ambulance shift changes create jobs

Changes to ambulance staff working hours will result in the creation of 150 new jobs in the Scottish service, the Health Secretary has told MSPs.

Nicola Sturgeon confirmed that a deal has been struck with Scottish Ambulance Service (SAS) workers to resolve the issue of rest breaks.

Up until now, ambulance crews took unpaid rest breaks, during which the control room did not contact them.

But recent controversies - such as the death of Mandy Mathieson, 33, who had a cardiac arrest in Tomintoul, Moray, in 2010 - brought the policy into focus.

Health Secretary Nicola Sturgeon confirmed that a
new staffing deal has been struck with ambulance crews

An ambulance technician was on a meal break and did not attend the emergency even though he was stationed near her home.

Ms Sturgeon outlined details of the new deal, agreed by SAS management and trade unions earlier this week, when she delivered a statement to MSPs in Holyrood today.

She said: "I am pleased to say that a long term solution - that protects patient safety and also supports ambulance service staff - has been agreed."

However, Labour's health spokeswoman Jackie Baillie raised concerns that the deal may still have implications for patient safety, and called for an "urgent independent review" of the way emergency ambulance calls are categorised.

Under the new plans, staff will move to a 37.5-hour paid week inclusive of rest periods, and will be required to attend emergency calls throughout their shift period.

Previously staff were rostered for 40 hours per week, paid for 37.5 hours and entitled to 2.5 hours of unpaid rest periods. Ms Sturgeon said the Scottish Government would invest £5 million in providing 150 front-line jobs to support the changes.

SCOTLAND REFERENDUM 'MUST BE FAIR'

Scottish ministers do not have the power to hold a vote on the break up of the union, Michael Moore said today as he announced a public consultation on staging a referendum.

The Scottish Secretary told the Commons the rules in any vote must be "demonstrably above board", adding that the "referendum is legal, fair and decisive".

The Electoral Commission, or an independent body like it, should be involved in staging the vote, he said, adding that Scotland's future should not be decided "in secret, behind closed doors nor by wrangling in the courts".

He said the public consultation would ask the Scots when a referendum should be held, what questions should be asked and who should be entitled to vote.

Mr Moore said: "As a Scot, I think it is vital that the Scottish people make a clear decision about our future with the United Kingdom, a decision made in Scotland by the people of Scotland.

"But at present there is a lack of clarity about the referendum, its outcome, and what the implications of that outcome would be, all of which creates economic uncertainty. That is bad for jobs and investment.

"Since last year's election, we have been asking the Scottish Government to set out its plans for a referendum but so far it has not done so. In particular, it has not said anything more about its legal power to deliver a referendum. This is not an issue that can be ducked.

"To legislate for a referendum on independence the Scottish parliament must have the legal power to do so. It is the Government's clear view that the Scottish parliament does not have that legal power."

Mr Moore said the Government would "not stand in the way of a referendum on independence" but neither would it "stand on the sidelines and let uncertainty continue".

Describing the union as the "most successful partnership of nations in history", he said that the Scotland Act 1998 was clear in setting out that it was not up to ministers north of the border to legislate on a referendum.

He said any referendum bill drawn up in Holyrood could be challenged in court and it was the belief in Westminster that the Scottish Government would lose.

But, he said, ministers in Whitehall wanted to work with the Scottish Government "to provide an answer".

"This is not about the mandates of Scotland's two governments or who calls the shots," he said. "It is about empowering the people of Scotland to participate in a legal referendum.

"That means that the UK Government is willing to give the Scottish parliament the powers to hold a referendum which they otherwise cannot do legally."

But this concession would not come without Scottish ministers ceding some powers over the staging of any referendum, he said.

Mr Moore told MPs: "The referendum should be overseen by those who have neutrality and the proven expertise to inspire confidence in the fairness of the process, such as the Electoral Commission."

He added: "The future of Scotland must not be worked out in secret, behind closed doors nor determined by wrangling in the courts. It is my task to ensure that this referendum is made in Scotland, by the people of Scotland, for the future of Scotland."

Within the draft order drawn up in Westminster, a temporary extension of powers of the Scottish parliament would allow it to call a referendum on the single question of whether or not Scotland should remain part of the United Kingdom.

The "Section 30 order" would have to be approved by both Houses at Westminster and by the Scottish Parliament.

Officials said this method would allow a referendum to be staged within 12-18 months if all parties co-operate, but the question of whether a legal deadline should be included in the order will not be decided until after the consultation concludes on March 9.

Ministers said they want any poll to be held "sooner rather than later", to reduce uncertainty, which they believe is damaging the Scottish economy.

In a foreword to the consultation document, Prime Minister David Cameron and Deputy Prime Minister Nick Clegg made clear that they do not want the break-up of the Union, but said it was right that the people of Scotland should be allowed to vote on whether they want to remain part of the United Kingdom.

They wrote: "Ending Scotland's place within the United Kingdom is not the policy of the UK Government but we owe it to everyone in Scotland to ensure that the referendum is delivered in a legal, fair and decisive way."

The order proposed by the UK Government would require any referendum to be held under the terms of electoral laws passed at Westminster in 2000, under the oversight of the Electoral Commission.

There would be only one ballot paper offering voters a single choice between the two options of independence or remaining part of the UK. All those registered to vote in Scottish parliamentary elections would be entitled to vote, and the poll could not be held on the date of any other referendum.

Today shadow Scotland secretary Margaret Curran urged Mr Moore to provide assurances that the legal advice he had received was based on a "sound foundation that was robust and authoritative". To ensure transparency the advice should be made public, she added.

"Scottish Labour is clear that any question on separation must be a straight yes or no choice," Ms Curran said.

Ms Curran said the Electoral Commission was "best placed" to oversee the referendum.

And she told MPs: "As the First Minister said last May, the sooner the vote on the future of Scotland is held, the better. The economy of Scotland is flatlining.

"One in four young Scottish men are out of work. Today, we are told Scotland faces record levels of child and family poverty.

"What we cannot afford to do is spend the next four years obsessing about the process of a referendum. The time is now for the parties to work together, get on with the debate, get on with a decision on where Scotland's future lies.

"The Scottish people face an immense decision in this referendum. Scotland deserves better than politicians bickering on the process of this issue. We must now move as quickly as possible on to a debate about the substance that puts Scotland's people and Scottish interests first."

Rebutting, Mr Moore said: "The SNP secured an important victory last year and as part of that they set out a clear intention to have a referendum. What was less clear was how they would do that.

"Our view is that the legal position is that the Scottish Parliament does not have the power to conduct any kind of referendum.

"There is no legal authorisation for any referendum. We need to get that resolved.

"I think it is fair and reasonable we should have oversight of the process of the referendum by a body that has got widespread experience and has neutrality and is seen to be above and beyond the fray. The Electoral Commission, it seems to me, fits that bill. I look forward to hearing other people's reactions in the course of this consultation."

Mr Moore said the ministerial code made clear that this and previous governments should not have to publish specific legal advice received but urged Ms Curran to look carefully at the consultation document and the specific clauses within the Scotland Act 1998.

The SNP's leader in Westminster Angus Robertson (Moray) said: "Last year the Scottish National Party won an historic, landslide victory on a platform to hold a Scottish independence referendum in the second half of the parliament.

"The Conservative Party, the Liberal Democrats and the Labour Party opposed an independence referendum and each one of these parties lost heavily in the election.

"So why is it that this Westminster Government is trying to dictate terms about the referendum to the democratically elected Scottish Government which has a mandate on this issue?

"Why is this Westminster Government seeking to dictate the date of the referendum?

"Why is this Westminster Government seeking to dictate the questions on the ballot paper?

"And why is this Westminster Government seeking to exclude 16 and 17-year-olds from this important and historic referendum?"

Mr Moore replied: "I'm not sure how often I have to acknowledge the SNP's victory last year before you will hear me say it. I recognise the victory you had last year.

"I'm surprised you have such a problem with the law. I'm sure an independent Scotland would want to be ruled by the rule of law. I think it is in all our interests to ensure that the legal basis of any referendum is clear. I'm saying to you it is not there, it is not possible to have a legal referendum.

"It doesn't matter whether it's advisory, whether you call it legally binding. A referendum has to be legal and the authority is not there.

"What I'm offering to you, to the First Minister and all of his party, is a way by which all of us in Scotland can get on with this decision, without needing to have the decision made by the courts rather than by people going to the ballot box.

"We are consulting. We are asking people across Scotland, and elsewhere if they have an opinion, to tell us what they think of our proposals. We want to do this together between the two Governments.

"As far as the date is concerned, there is no date in the consultation paper.

"As far as the ballot paper is concerned, I heard the Deputy First Minister say yesterday she preferred having a single question. I think it is quite useful to get on with what she wants to do and what the rest of us want to do.

"On the issue of the franchise, what we are suggesting is that the franchise that was the right basis on which the First Minister and all of his colleagues in the Scottish Parliament were elected should be the same franchise used to determine this historic decision.

"As far as 16 and 17-year-olds participating is concerned it's an entirely fair debate about their role in the electoral system generally but it shouldn't be focused on a single electoral event to suit one party or another. Let's just get on with the debate on the fairness of terms."


©Press Association 2012Publish Post

54% OF SCOTS 'WANT TO STAY IN UK'

More than half of Scottish voters want to remain in the United Kingdom, according to a poll released today.

Some 54% of people in Scotland questioned by Ipsos Mori for the thinktank British Future said they wanted to stay in the Union, against just 29% who backed independence.

The poll, released as the Government set out its position on the terms of any referendum on independence, also showed similar majorities in both England and Wales in favour of Scotland staying in the UK.

According to the survey, voters north of the border are slightly more enthusiastic about preserving the Union than people in England or Wales.

Some 48% of those questioned in England backed the Union, against 27% who supported independence for Scotland. In Wales, 41% wanted Scotland to stay in the UK, while 29% said it should become independent.

Support for the Union was stronger among older people, with six out of 10 over-55s wanting Scotland to stay in the UK, compared to four out of 10 of those aged 16-44.

Independence for Scotland was more popular among men (32%) than women (23%).

And middle-class professionals were more likely to want to keep the Union (53%) than those in lower skilled posts (46%) or unskilled jobs (44%).

:: Ipsos Mori interviewed 2,320 people across Great Britain between November 30 and December 6, including 497 in Scotland.


©PA 2012

APPEAL ON SUPERMARKET ALCOHOL SALES

Scotland should consider removing alcohol sales from supermarkets in an effort to reduce drink-related health problems, a leading doctor told politicians today.

Dr Peter Rice, chairman of the Royal College of Psychiatrists in Scotland and a consultant addictions psychiatrist at NHS Tayside, said it would be "desirable" to follow the example of countries such as Canada and New Zealand, where sales can be controlled in special government-run retail stores.

He made the suggestion to MSPs investigating the Scottish Government's plan to set a minimum price for alcohol, which is expected to be passed at Holyrood.

Dr Rice, who supports the policy, said: "The United Kingdom is unusual in that all of our alcohol is sold alongside all of our groceries.

"The UK has been very out of step with the rest of the world over the last 20 years.

"I was asked in New Zealand, 'why is vodka sold in supermarkets in the United Kingdom?' I'd never thought about that question before."

He said state-operated boards in parts of Canada and the US lead to the "democratic control" of the alcohol market.

"I think that would be a very desirable thing for us to have in this country," he added.

Dr Rice, who said the concept might be unlikely to win support, continued: "We should not lose sight of the fact that other countries do this sort of thing perfectly successfully, whereas we have a very free and de-regulated market for alcohol."

He made the comments to Holyrood's Health and Sport Committee, which is scrutinising the Scottish Government's Alcohol (Minimum Pricing) Bill.

A first attempt at legislation fell in the last parliament before the SNP gained its overall majority of seats.

Dr Rice said support for the policy is "solid" among doctors.

"Right across the whole range of medical practice there has been a consensus that there needs to be some kind of price control, and particularly price controls that secure the floor price," he said.

"There's been interest from colleagues elsewhere in the UK and other countries about what's been happening in Scotland. Many of my medical colleagues are seeing what we're trying to do as a model to follow."

He added: "Scottish doctors are solidly behind this idea."

Health Secretary Nicola Sturgeon has not yet revealed where the minimum level will be set but has used 45p to illustrate the plan.

The formula would put the cost of a 700ml bottle of 37.5% ABV spirits at £11.82. A 500ml can of super-strength 9% beer would be £2.03.

Dr Rice said the 45p limit would now be out of date, suggesting the floor should be set closer to 60p per unit and potentially adjusted twice a year.

The committee heard support for minimum pricing from other panel members, including Anne Ludbrook, professor of health economics at the University of Aberdeen; Dr Evelyn Gillan, chief executive of Alcohol Focus Scotland; and Dr Jan Gil, reader at Queen Margaret University.

Benjamin Williamson, senior economist at the Centre for Economics and Business Research (CEBR), argued that the policy could cause problems.

He said: "The case for minimum pricing continues to be unproven.

"We don't think it's a targeted measure which specifically gets to grips with the problems of harmful drinking.

"Our research shows that it's moderate drinkers that are likely to be impacted because they are the most responsive to price.

"Harmful and hazardous drinkers are less sensitive to changes in price."

Dr Gillan twice drew attention to a CEBR report on the subject being sponsored by global drinks company SABMiller.

But Mr Williamson said: "We've been honest that SABMiller commissioned the report. We put it on page two of our report. The findings stand on their own."

Dr Gillan warned that cheap alcohol has led to increased levels of harm.

Referring to the experience of one liver consultant, she said: "The youngest cirrhosis disease case that he dealt with was 19. The youngest fatality he dealt with was 26.

"The most recent research that came out from the north east of England showed a huge increase in the number of people under 35 with liver cirrhosis.

"So, consultants are saying we've never seen this before. This is an epidemic."

end

HOLYROOD TO GET REFERENDUM POWERS

The Government will set out plans tomorrow to give Holyrood temporary powers for a legally binding referendum on Scottish independence as the row over the poll intensified.

Scottish Secretary Michael Moore will tell MPs the Coalition wants the vote to be held "sooner, rather than later" but he will not set a previously expected deadline of 18 months on the vote, Government sources confirmed tonight.

It follows warnings today by David Cameron that uncertainty about Scotland's future in the United Kingdom is having a damaging effect on its economy.

Chancellor George Osborne briefed the Cabinet this morning on the feedback he and the Prime Minister have received in private talks with major companies who said the prospect of a referendum on Scottish independence was having an impact on their decisions and may be deterring inward investment.

Mr Cameron insists the Government's plan would allow a "fair, legal and decisive" resolution to the uncertainty.

But his intervention was greeted with anger by the Scottish National Party administration in Edinburgh, which accused London of trying to interfere in a matter which should be settled north of the border.

SNP leader Alex Salmond is understood to favour a referendum in 2014 - possibly on the 700th anniversary of the battle of Bannockburn - and wants to retain control over the wording of the question on the ballot paper. He has not ruled out including a third "devo-max" option, which would see Scotland stay in the UK but gain more power over its own affairs.

Mr Cameron denied trying to "dictate" the terms of the referendum from Westminster, and insisted it will be for people in Scotland to decide whether they stay in the Union.

"I want the United Kingdom to stay together," the PM told Sky News. "It is a fantastically successful partnership. I think Scotland and England are better off in the United Kingdom.

"But we can't stand in the way of a part of the UK if it wants to ask the question 'Are we better off outside it?' We can't stand in the way of that, but what I think the Scottish people deserve is a fair, clear and decisive question.

"We have to have legal clarity over who is responsible for this decision. Is it the Westminster Parliament or is it the Scottish Parliament? We will be setting out the legal position and trying to find a way through."

The Scotland Act of 1998, which ushered in devolution, reserved constitutional matters for the Westminster Parliament, and it is thought that a referendum called by Holyrood could be open to legal challenge.

Advice received by ministers on the legal implications of a referendum will be published alongside the Government's proposals in the next few days.

Mr Cameron said: "We are not going to dictate on this. We have first of all got to resolve this legal uncertainty and then try to work with the Scottish Government and make sure there is a fair, clear and decisive outcome."

Scotland's Deputy First Minister Nicola Sturgeon denounced the move as "a blatant attempt to interfere in the decision that is really one for the Scottish Government in terms of the timing of the referendum and for the Scottish people in terms of the outcome".

She added: "We were elected on the basis of our commitment to have a referendum in the second half of this parliamentary term. This is about Westminster seeking to interfere."

A spokesman for Mr Salmond said that any attempt by Westminster politicians to dictate the terms or format of the referendum would only fuel demands for independence.

"The more the UK Government interferes with this process, then the stronger support for independence will become, and we've seen that trend under way since the election," said the spokesman.

"The days of Westminster determining what happens in Scotland are over.

"We'll bring forward our proposals, we'll stick to what we said we would do in the election."

Mr Cameron warned that delay in resolving the independence issue was damaging to Scotland's economy.

"If Alex Salmond wants a referendum on independence, why do we wait until 2014?" he asked.

"This is very damaging for Scotland because all the time businesses are asking 'Is Scotland going to stay part of the UK? Are they going to stay together? Should I invest?'

"We are beginning to see companies asking those questions so I think it is rational to put to the Scottish people, would it be better to have a more fair and decisive question put earlier?"

Scottish Labour leader Johann Lamont said: "We want the referendum to be held as quickly as possible and we want it to be run in Scotland."

If the Prime Minister's proposals "help there to be a quick, clear and decisive referendum result, we would welcome them", she added.

A spokesman for the Scotland Office said: "The statement will be about how the UK Government can facilitate a legal, fair and decisive referendum."


©AP

UNCERTAINTY 'HARMING SCOTS ECONOMY'

Uncertainty about Scotland's future in the United Kingdom is having a damaging effect on its economy, David Cameron has warned.

Chancellor George Osborne briefed the Cabinet on the feedback he and the Prime Minister have received in private talks with major companies who said the prospect of a referendum on Scottish independence was having an impact on their decisions and may be deterring inward investment.

The Government is expected to publish proposals within days, which could involve offering the Scottish Parliament a legally binding poll, to be held within 18 months, on the yes-or-no question of whether Scotland should remain part of the UK.

Mr Cameron declined to spell out the details of his plan, but said it would allow a "fair, legal and decisive" resolution to the uncertainty.

But his intervention was greeted with anger by the Scottish National Party administration in Edinburgh, which accused London of trying to interfere in a matter which should be settled north of the border.

SNP leader Alex Salmond is understood to favour a referendum in 2014 - possibly on the 700th anniversary of the battle of Bannockburn - and wants to retain control over the wording of the question on the ballot paper. He has not ruled out including a third "devo-max" option, which would see Scotland stay in the UK but gain more power over its own affairs.

Mr Cameron denied trying to "dictate" the terms of the referendum from Westminster, and insisted it will be for people in Scotland to decide whether they stay in the Union.

"I want the United Kingdom to stay together," the PM told Sky News. "It is a fantastically successful partnership. I think Scotland and England are better off in the United Kingdom.

"But we can't stand in the way of a part of the UK if it wants to ask the question 'Are we better off outside it?' We can't stand in the way of that, but what I think the Scottish people deserve is a fair, clear and decisive question.

"We have to have legal clarity over who is responsible for this decision. Is it the Westminster Parliament or is it the Scottish Parliament? We will be setting out the legal position and trying to find a way through."

The Scotland Act of 1998, which ushered in devolution, reserved constitutional matters for the Westminster Parliament, and it is thought that a referendum called by Holyrood could be open to legal challenge.

Advice received by ministers on the legal implications of a referendum will be published alongside the Government's proposals in the next few days.

Mr Cameron said: "We are not going to dictate on this. We have first of all got to resolve this legal uncertainty and then try to work with the Scottish Government and make sure there is a fair, clear and decisive outcome."

Scotland's Deputy First Minister Nicola Sturgeon denounced the move as "a blatant attempt to interfere in the decision that is really one for the Scottish Government in terms of the timing of the referendum and for the Scottish people in terms of the outcome".

She added: "We were elected on the basis of our commitment to have a referendum in the second half of this parliamentary term. This is about Westminster seeking to interfere."

A spokesman for Mr Salmond said that any attempt by Westminster politicians to dictate the terms or format of the referendum would only fuel demands for independence.

"The more the UK Government interferes with this process, then the stronger support for independence will become, and we've seen that trend under way since the election," said the spokesman.

"The days of Westminster determining what happens in Scotland are over.

"We'll bring forward our proposals, we'll stick to what we said we would do in the election."

Mr Cameron warned that delay in resolving the independence issue was damaging to Scotland's economy.

"If Alex Salmond wants a referendum on independence, why do we wait until 2014?" he asked.

"This is very damaging for Scotland because all the time businesses are asking 'Is Scotland going to stay part of the UK? Are they going to stay together? Should I invest?'

"We are beginning to see companies asking those questions so I think it is rational to put to the Scottish people, would it be better to have a more fair and decisive question put earlier?"

Scottish Labour leader Johann Lamont said: "We want the referendum to be held as quickly as possible and we want it to be run in Scotland."

If the Prime Minister's proposals "help there to be a quick, clear and decisive referendum result, we would welcome them", she added.

A spokesman for Mr Salmond said: "The damage to Scotland's economy is coming from the disastrous policies of the Tory/Lib Dem Westminster Government - which is why the UK Government should be amending the Scotland Bill to give the Scottish Parliament the economic and financial powers so that we can boost growth, recovery, and jobs.

"We already know that the Chancellor has been lobbied by his own Tory Party colleagues in the north of England who are complaining about the level of inward investment that is coming to SNP-run Scotland, and want him to do something to stop it.

"Mr Osborne has not got a shred of evidence for his scaremongering about the referendum.

"In stark contrast, the reality is that business at home and abroad are voting with their feet with full confidence in Scotland's future by making huge investments here. In recent months, Avaloq, Dell, Gamesa, Amazon, Doosan Power Systems and Michelin, to name just a few, have invested in Scotland - and with the full financial and economic powers of independence we can achieve even more.

"Scotland's leading business person and entrepreneur, Jim McColl, has said that many people in business are convinced that a productive and prosperous future for Scotland depends on securing real economic powers for the parliament through constitutional change.

"And the director general of the Institute of Directors, Simon Walker, said he is 'relaxed' about the possibility of Scotland becoming independent."


PA 2012

UNCERTAINTY 'HARMING SCOTS ECONOMY'

Uncertainty about Scotland's future in the United Kingdom is having a damaging effect on its economy, David Cameron has warned.

Chancellor George Osborne briefed the Cabinet on the feedback he and the Prime Minister have received in private talks with major companies who said the prospect of a referendum on Scottish independence was having an impact on their decisions and may be deterring inward investment.

The Government is expected to publish proposals within days, which could involve offering the Scottish Parliament a legally binding poll, to be held within 18 months, on the yes-or-no question of whether Scotland should remain part of the UK.

Mr Cameron declined to spell out the details of his plan, but said it would allow a "fair, legal and decisive" resolution to the uncertainty.

But his intervention was greeted with anger by the Scottish National Party administration in Edinburgh, which accused London of trying to interfere in a matter which should be settled north of the border.

SNP leader Alex Salmond is understood to favour a referendum in 2014 - possibly on the 700th anniversary of the battle of Bannockburn - and wants to retain control over the wording of the question on the ballot paper. He has not ruled out including a third "devo-max" option, which would see Scotland stay in the UK but gain more power over its own affairs.

Mr Cameron denied trying to "dictate" the terms of the referendum from Westminster, and insisted it will be for people in Scotland to decide whether they stay in the Union.

"I want the United Kingdom to stay together," the PM told Sky News. "It is a fantastically successful partnership. I think Scotland and England are better off in the United Kingdom.

"But we can't stand in the way of a part of the UK if it wants to ask the question 'Are we better off outside it?' We can't stand in the way of that, but what I think the Scottish people deserve is a fair, clear and decisive question.

"We have to have legal clarity over who is responsible for this decision. Is it the Westminster Parliament or is it the Scottish Parliament? We will be setting out the legal position and trying to find a way through."

The Scotland Act of 1998, which ushered in devolution, reserved constitutional matters for the Westminster Parliament, and it is thought that a referendum called by Holyrood could be open to legal challenge.

Advice received by ministers on the legal implications of a referendum will be published alongside the Government's proposals in the next few days.

Mr Cameron said: "We are not going to dictate on this. We have first of all got to resolve this legal uncertainty and then try to work with the Scottish Government and make sure there is a fair, clear and decisive outcome."

Scotland's Deputy First Minister Nicola Sturgeon denounced the move as "a blatant attempt to interfere in the decision that is really one for the Scottish Government in terms of the timing of the referendum and for the Scottish people in terms of the outcome".

She added: "We were elected on the basis of our commitment to have a referendum in the second half of this parliamentary term. This is about Westminster seeking to interfere."

A spokesman for Mr Salmond said that any attempt by Westminster politicians to dictate the terms or format of the referendum would only fuel demands for independence.

"The more the UK Government interferes with this process, then the stronger support for independence will become, and we've seen that trend under way since the election," said the spokesman.

"The days of Westminster determining what happens in Scotland are over.

"We'll bring forward our proposals, we'll stick to what we said we would do in the election."

Mr Cameron warned that delay in resolving the independence issue was damaging to Scotland's economy.

"If Alex Salmond wants a referendum on independence, why do we wait until 2014?" he asked.

"This is very damaging for Scotland because all the time businesses are asking 'Is Scotland going to stay part of the UK? Are they going to stay together? Should I invest?'

"We are beginning to see companies asking those questions so I think it is rational to put to the Scottish people, would it be better to have a more fair and decisive question put earlier?"

Scottish Labour leader Johann Lamont said: "We want the referendum to be held as quickly as possible and we want it to be run in Scotland."

If the Prime Minister's proposals "help there to be a quick, clear and decisive referendum result, we would welcome them", she added.

A spokesman for Mr Salmond said: "The damage to Scotland's economy is coming from the disastrous policies of the Tory/Lib Dem Westminster Government - which is why the UK Government should be amending the Scotland Bill to give the Scottish Parliament the economic and financial powers so that we can boost growth, recovery, and jobs.

"We already know that the Chancellor has been lobbied by his own Tory Party colleagues in the north of England who are complaining about the level of inward investment that is coming to SNP-run Scotland, and want him to do something to stop it.

"Mr Osborne has not got a shred of evidence for his scaremongering about the referendum.

"In stark contrast, the reality is that business at home and abroad are voting with their feet with full confidence in Scotland's future by making huge investments here. In recent months, Avaloq, Dell, Gamesa, Amazon, Doosan Power Systems and Michelin, to name just a few, have invested in Scotland - and with the full financial and economic powers of independence we can achieve even more.

"Scotland's leading business person and entrepreneur, Jim McColl, has said that many people in business are convinced that a productive and prosperous future for Scotland depends on securing real economic powers for the parliament through constitutional change.

"And the director general of the Institute of Directors, Simon Walker, said he is 'relaxed' about the possibility of Scotland becoming independent."


PA 2012