Wings Over Scotland

If you’re anything like us, you’ll have been frustrated by most media coverage of the Rangers liquidation saga, and in particularly the failure of journalists to ask the questions that ordinary people are asking over and over again on Twitter and internet messageboards, or just shouting at the telly.

So we were hugely impressed when professional insolvency practitioner Maureen Leslie of MLM Solutions, who has recently appeared on both Newsnight Scotland and Reporting Scotland in connection with the Rangers case, held an online Q&A on the subject today (along with the company’s senior manager Allan McLeod), devoting over an hour of her valuable time to answering questions from clueless members of the public such as ourselves.

Below is an edited transcript of the proceedings (leaving out questions that were outwith MLM’s expertise). We haven’t changed the content of any questions or answers, but have corrected typos, occasionally made slight adjustments to wording for clarity, and grouped questions on the same aspects of the situation together. (Suspicious readers can view the original unedited webchat in full here.) We hope you’ll find it as informative and enlightening a resource as we do.

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First, a disclaimer-stroke-apology: Wings Over Scotland isn’t a football blog. But as we’ve said before, in our opinion the fate of (The) Rangers FC will have a far greater influence on the outcome of the Scottish independence referendum than anything Johann Lamont will ever say or do in her life (something which certainly applies to her current pitiable carping about BSkyB), so we have to look at the bigger picture, and today that means talking about Rangers again.

It’s fair to say that Walter Smith’s intervention in the affair yesterday morning really put a tiger among the turtledoves. Rangers fans unsure about giving Charles Green their full backing – but ultimately likely to bite the bullet and go along with him for want of any alternative – had a new straw of hope, and wasted no time in clutching at it, as the influential Rangers Supporters Trust immediately asked fans not to buy season tickets unless Green stood aside to make way for Smith’s consortium.

The move places another obstacle in front of Green turning his newco Rangers into a viable business, to add to the many challenging ones he already faced – particularly hanging onto the playing and coaching staff (including manager Ally McCoist, whose departure would surely scupper any chance of supporters getting behind Green) and successfully negotiating entry into the SPL. But unlike most of the media, which is this morning reporting the Smith group’s succession as all but inevitable, we’re not sure Green will be all that concerned.

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We’ve been having a little poke around in the insolvency laws today, and we have to inform Wings Over Scotland readers with shame and regret that we made a mistake in our Rangers Liquidation FAQ a couple of days ago. It turns out that it is in fact permissible for a new company to take over the name of an old one, so long as the old company was purchased in the process of liquidation, an exemption which would seem to clearly apply in the case of Rangers.

In the light of bizarre and intriguing recent developments, then, we’re faced with an interesting prospect: a new Rangers FC, playing next season under the old name, in the old colours, with the old history, in the SPL, at Ibrox Stadium, led by Walter Smith, with the current playing squad, completely free of debt and with a £20m bank balance from season ticket sales. (After paying back the bargain-basement purchase price.)

One can only imagine the tone of triumph from the Govan club’s friendly supporters.

The Big Tax Case would be irrelevant, buried with the oldco, as would the SFA investigation into dual contracts and the punishment for bringing the game into disrepute. Tens of millions of pounds owed to the taxpayer would simply disappear in a puff of smoke, as would the millions owed to other football clubs, to Ticketus, and to hundreds of smaller creditors for whom the money could (and now will) be the difference between their business surviving and dying.

The new Rangers wouldn’t be eligible to play in European competitions for three years, but business would otherwise carry on exactly as it did last season without interruption. It doesn’t seem much of a punishment for 10 to 20 years of deliberate, blatant, industrial-scale cheating, robbing other clubs of tens of millions of pounds and driving the Scottish game to the brink of destruction in the process, does it?

The above is, of course, a best/worst-case scenario according to which side of the debate you’re on. Even if the new Rangers could secure an 8-4 Yes vote to their entry into the SPL, the SFA could apply conditions and sanctions, as could the other clubs in return for their vote. But the new Rangers could always renege on any promises it made (eg in respect of agreeing to a change in SPL voting rules or sharing TV money), and it could challenge any SFA conditions in the civil-law courts, were the SFA to be so toothless as to let them get away with doing it previously.

The press is reporting that the attitudes of several of the the other clubs in the top division is hardening against the notion of admitting the phoenix Rangers directly to the SPL. In the circumstances we can’t say we’re surprised.

It’s been remarkable watching the awkward reactions of Alex Salmond’s detractors to his appearance at the Leveson inquiry yesterday. Over two hours of questioning didn’t manage so much as a scratch on the First Minister, with even ardent Unionist hacks forced to admit that Salmond was “skooshing” the proceedings and describing it as an “effortless stroll” for the SNP leader. Even the Herald’s Iain Macwhirter, a normally-intelligent commentator recently driven half-demented by hatred for Murdoch, was forced to concede that Salmond had sailed through unharmed.

With opposition politicians and activists (and even some supposedly-loyal nationalists) having long been forecasting a humiliating inquisition for Salmond at the hands of Robert Jay, there’s currently a great deal of sour muttering and embarrassed shuffling of feet going on in Unionist ranks, personified on Newsnight Scotland last night by Labour’s unfortunate Paul Martin, who didn’t seem to quite know what to do with himself except mumble some vague waffle about there having been no conclusive proof that the Scottish Government maintaining cordial relations with one of Scotland’s largest private-sector employers would likely be beneficial to Scottish employment.

The depressing thing about the opposition’s reaction is its sheer petulance and intellectual bankruptcy, typified by a thoroughly dispiriting argument we had yesterday. It doesn’t matter how comprehensively, how often or by whom the SNP are cleared of any sort of wrongdoing, or how many rational, logical, sensible explanations for things are offered – Labour and the other opponents of independence simply turn a blind eye and a deaf ear, flatly refusing to accept any reality they don’t like and endlessly repeating their demands for “answers”, even though they’ve just been given them.

For the record and easy reference, though, we’ll quickly run through them again below.

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Since the disaster that befell our Super HypocrisOMeter 5000, we’ve been pretty careful with our equipment budget. But this week, after being caught on the hop by the unexpected early conclusion to the Rangers CVA saga, Wings Over Scotland has taken the plunge and invested in another electronic aid to help us stay that all-important one step ahead of the zeitgeist.

The SeeAhead Industries Predictamatic XF12 is the state of the art in digital foresight technology, and we put it straight to work to see if it could give us some advance knowledge of how Alex Salmond’s appearance at the Leveson Inquiry this afternoon will turn out. The contents of the Device Output Log can be seen below.

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The fallout from HMRC’s rejection of the Rangers CVA has, of course, only just begun. Journalists and bloggers, us included, will be spending a considerable amount of time speculating wildly about the likely outcome of the club’s now-inevitable liquidation. So let’s quickly take stock of what’s fact and what’s guesswork.

(Please bear in mind that Wings Over Scotland is not a lawyer, and that your house may be at risk if you don’t pay tax on it for 20 years.)

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Much as Scots have grown accustomed to trying to pretend otherwise, you'll probably have noticed that there's currently another international football tournament going on without us. This evening sees the first appearance in the European Championship of the England team, the only side competing in the entire competition who don't have a national anthem to call their own.

Over two decades of living in England hasn't changed this writer's feelings towards the country's international team much. I still want them to lose – not because I hate the English people, but precisely because I like them.

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Thursday night’s Question Time from Inverness saw Johann Lamont once again trot out the line that the independence referendum doesn’t offer Scotland its only realistic chance of escaping Tory government for the forseeable future. Once again, the Labour quasi-leader insisted (56m 50s) that the choice between independence and the Tories was a false one, and that her party provided a genuine ideological alternative to the right-wing neoliberal philosophy which has dominated UK politics since 1979.

Unfortunately, that’s a lie. And the really troubling thing about it is that it means NOBODY is speaking for the majority of the British population, which almost certainly means that no mainstream political party is interested in representing your views. Which, you might think, is a pretty odd way to be running a supposed democracy.

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A surprise development today, as the moribund and long-neglected LabourHame website sprang suddenly back to life with its fourth post in as many months. And what a stirring comeback it was, as the party’s Shadow Secretary Of State for Scotland Margaret Curran launched into a vitriolic diatribe awkwardly entitled “Absurd to claim a separate Scotland would continue to be part of Britain“.

(There was plenty of room left in the headline to turn the car-crash grammar into English, for example by prefixing it with the words “Why it’s”.)

The centrepiece of the article’s argument was Curran’s unequivocal assertion that “Britain is the country we live in, not the island it exists on”, which is a claim only slightly spoiled by being completely factually wrong in every respect. Rather than waste all afternoon explaining why, we’ll just quote the Wikipedia entry and let you get on with your day. If you’re really pressed for time, you can stop after the first sentence.

“Great Britain or Britain (Welsh: Prydain Fawr, Scottish Gaelic: Breatainn Mhòr, Cornish: Breten Veur) is an island situated to the northwest of Continental Europe. It is the ninth largest island in the world, the largest European island, and the largest of the British Isles. With a population of about 60.0 million people in mid-2009, it is the third most populous island in the world, after Java and Honshu. Great Britain is surrounded by over 1,000 smaller islands and islets. The island of Ireland lies to its west. Politically, Great Britain may also refer to the island itself together with a number of surrounding islands which comprise the territory of England, Scotland and Wales.

All of the island is territory of the sovereign state of the United Kingdom of Great Britain and Northern Ireland, and most of the United Kingdom’s territory is in Great Britain. Most of England, Scotland, and Wales are on the island of Great Britain, as are their respective capital cities: London, Edinburgh, and Cardiff.

The Kingdom of Great Britain resulted from the political union of the kingdoms of England and Scotland with the Acts of Union 1707 on 1 May 1707 under Queen Anne.”

You’d hope someone aiming to be the Secretary of State for a part of somewhere would at least have a grasp of the most rudimentary geopolitical facts about it, but nobody ever went broke underestimating the intelligence of Scottish Labour.

We would be lying if we said we were surprised by Johann Lamont’s line of attack at today’s First Minister’s Questions, but “dismayed, disappointed and depressed” would be a fair enough summary. With her finger as ever on the pulse of what really matters to the Scottish public, for some reason the Labour quasi-leader chose to repeat last week’s bewildering and incomprehensible assault about the Monetary Policy Committee (MPC) of the Bank of England. (Possibly because it garnered her some rare good press from the Unionist section of the Scottish media.)

The situation is in fact a straightforward one, which Lamont and Labour are doing their best to complicate and obfuscate in furtherance of their own agenda. The Bank of England – which despite the name is the central bank of the United Kingdom – is an independent body, and has been since Gordon Brown surrendered Government control of it in 1997. While the Treasury retains certain emergency powers, in all normal circumstances the Bank’s activities in respect of the UK’s monetary policy are determined by the MPC, which has no Government representatives on it.

(A minority of the committee’s members – four out of nine – are appointed by the Treasury, but are all external, non-political advisers.)

The SNP’s policy is that an independent Scotland would negotiate as part of the independence process a Scottish voice on the MPC (presumably an appointee along the same lines as those of the Treasury), given that Scotland currently “owns” 8% of the BoE. At present there is nobody on the Committee specifically tasked with representing the interests of Scotland, which is an entirely unsurprising and unsinister state of affairs – as a UK body, the Bank’s responsibility is to the UK as a whole, and at such times as Scotland’s interests might conflict with those of the wider UK, the Bank’s duty is clearly, quite properly, to act in the interests of the majority at all times.

Johann Lamont, and the Unionist cause in general, has gleefully seized on an uncharacteristically sloppy choice of words by Nicola Sturgeon during BBC Scotland’s “Big Debate” last month, in which she presented Scotland’s future representation on the MPC as axiomatic rather than merely a goal. Scottish representation on the Committee would in fact be the realistic and reasonable outcome of any independence negotiations, given both Scotland’s part-ownership of the bank and the simple realpolitik of the economics that would arise from the dissolution of the Union, but it’s clearly not a done deal and Sturgeon was careless to present it as one.

Nevertheless, that does nothing to obscure the inherent disingenuousness and dishonesty of the point Lamont has spent two FMQ sessions clumsily attempting to make. The fact is that Scotland has no form of representation now on the MPC, and (more crucially) as we noted two paragraphs above, the MPC has no duty to consider the impact of its policies on Scotland specifically – indeed, if anything it has the opposite responsibility. So even in the worst-case scenario of failing to secure any representation, Scotland would be no worse off independent than it is now.

Equally crucially, and more pertinently to what passes for Lamont’s argument, the same thing applies to the Treasury. In all situations, the duty of the UK government is to the whole UK, not to any individual region of it. Regardless of the nationality of a Chancellor Of The Exchequer, if faced with a decision where the interests of Scotland and those of the wider UK were to be somehow mutually exclusive, it is ALWAYS that Chancellor’s duty to decide in favour of the UK.

Once again, there is nothing evil or wrong about this. For as long as Scotland chooses to remain inside the Union, its national interests will and must rightly be subordinate to, and subsumed within, those of the UK. Lamont’s insistence that Gordon Brown or Alistair Darling or any future Scottish-born UK Chancellor would ever abdicate their responsibilites and act against the interests of the UK simply because they happened to be born in Scotland is insulting both to the men in question and to the intelligence of the nation. (It also borders on racist, but we’ll let that slide for now.)

By definition, then, Scotland CANNOT possibly have less influence over its monetary or fiscal policy should it become independent than it does within the UK, because it currently has – and must have – none at all. It is, not for the first time, embarrassing to watch Lamont peddle this fatuous, mendacious drivel on behalf of the ever-shrinking proportion of the Scottish people who still vote Labour. They deserve better.

Ed Miliband, the nation was famously told a while back, “gets” Scotland. The Labour leader has done his damnedest to prove that assertion wrong ever since, first telling Scots that they were simply a stepping stone in getting Labour back into power at Westminster – helping the Scottish party to its disastrous defeat in 2011 as a result – and then not being able to remember the names of the Scottish Labour leadership candidates, despite there only being three of them, a few months later.

(To be strictly fair to Miliband, he did also show some perceptive insight in April 2011, noting that “I think people are really focusing on this question: who do you want standing up for Scotland against the Conservative-led Government in London?” just before the Scottish electorate delivered their crushingly unequivocal answer.)

“Definitely not Red” Ed’s latest brainwave to win over the reluctant voters of Her Majesty’s Great Empire Of Britain (Northern Administrative Region) is to tell Scots it’s not just up to them to decide whether Scotland becomes independent or not. Doubtless inspired by a ComRes poll in today’s Independent showing just 30% of English and Welsh voters want Scotland to leave the Union (far fewer than most previous surveys), Miliband will today tell a London audience that England “must have its say”. What isn’t clear is what he actually meant by that.

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At least, that’s the impression you’d get from today’s Guardian. Not one but two pieces by Severin Carrell are both illustrated with pictures of the Deputy FM this morning – one in front of a Saltire for good measure – with very little justification to be found in the text below.

The first piece, which is prominently displayed on the front page of the Guardian website doesn’t even feature a quote from the Health Secretary – she gets just a single passing mention in the fourth paragraph – while the second at least does include a couple, but not until seven paragraphs in.

You can’t avoid pictures of Sturgeon whichever of the paper’s four articles on the outbreak you choose – every single one has her image on either the story or itself or the “related” column, sometimes doubled up. It’s clear that the reader is meant to associate the outbreak with Sturgeon, and while it’s a slightly more nuanced approach than Carrell has adopted previously, there’s no mistaking the intent, especially when it’s backed up by innuendo from reliable Labour rent-a-quotes:

The first case of Legionnaires’ Disease in Edinburgh was identified on Sunday, and the 16 cooling towers thought to be responsible were discovered and sterilised on Sunday night and Monday morning, despite the public holiday. We’re not sure how much more rapidly Lord Foulkes imagines the Scottish Government could have acted, but with the help of friendly media the subtle smear will seep out anyway. The Scotsman’s first “SNP accused” headline can surely only be hours away.