Scottish Bank Notes (Hansard, 8 July 1986)

§ Mr. Dennis Canavan (Falkirk, West)

I beg to move, That leave he given to bring in a Bill to make Scottish pound notes and other Scottish bank notes legal tender throughout the United Kingdom and to facilitate the issue and distribution of Scottish pound notes and other Scottish bank notes throughout the United Kingdom; and for related purposes. At present, three Scottish clearing banks—the Bank of Scotland, the Royal Bank of Scotland and the Clydesdale Bank — are allowed to issue their own bank notes in Scotland, but strictly speaking they are not classified as legal tender, even within Scotland. The only exception to this was during the two world wars earlier this century when, as an emergency measure, Scottish bank notes were classified as legal tender.

I still receive complaints from some Scottish visitors to England about the difficulty or embarrassment that they experience when they tender Scottish bank notes in a shop or a pub, or to a taxi driver, or elsewhere. At present, because of the law, there is no obligation to accept Scottish bank notes. My Bill would make them legal tender, not just in Scotland but throughout the United Kingdom. It would also enable the three Scottish banks to issue their pound notes and other bank notes throughout the United Kingdom. At present, for example, the Royal Bank of Scotland operates on both sides of the border, with branches down here, even in London. It has its own bank notes. The bank is allowed to issue them north of the border, but it is not allowed to issue them through its branches down here. My Bill would enable it to do so.

A few years ago my Bill would not have been all that popular, perhaps, down here. It might have added a little confusion. because at one time a larger number of Scottish hank notes was issued than is issued at present by those three banks. Also the Bank of England pound note was competing. However, since the Bank of England made what, to my mind, was the daft mistake of withdrawing its pound note completely in favour of the pound coin, my feeling is that many people down here are envious of what we in Scotland have—a choice between the pound coin and the pound note.

In Scotland, the pound note is far more popular than the pound coin. I submit that the reasons for this are obvious. If somebody changes a fiver or a tenner down here, he invariably receives a fistful of change. Sometimes it is very heavy change. Heavy, unwieldy coinage tends to make holes in men's pockets. Because the pound note is more popular than the pound coin north of the border, it is much easier for men to slip notes into their wallets or and for women to slip them into their handbags, or whatever.

§ Mr. Canavan

My hon. Friend is quite right.

The pound coin is particularly confusing for some old people because the pound coin does not even look like a pound. It looks like one of the old threepenny bits, without the sawn-off edges. Old people were confused enough about decimalisation. Now that there are no pound notes at all the pound coin adds to the confusion.

If Scottish pound notes and other Scottish bank notes could be issued here they would soon catch on and would 170 be as popular as they are north of the border. That was borne out by an experimental walkabout that I had through the streets of London this morning. I asked various people and traders what they thought about Scottish bank notes. I told them who I was and said that I was introducing this Bill, and virtually everybody that I spoke to supported my Bill. Even people who expressed a preference for the pound coin—and they were in the minority—agreed that there should be a choice between the coin and the note. I sensed that overseas visitors were completely confused and outraged by the lack of opportunity to have pound notes in England. I told them that they could come to Scotland and that there they would get as many pound notes as they wanted, provided they paid for them.

I know of no other currency in the world where the lowest denomination note is valued at £5. I am glad to see that the Economic Secretary to the Treasury is in the House to hear what I have to say, because the Treasury and the Bank of England made a gross mistake in abolishing the pound note. However, it is not too late to correct it. The Economic Secretary is of Scottish ancestry; I think he was born in Scotland. I hope that he will hear in mind the points tnat I am making and will try to facilitate the distribution and exchange of Scottish pound notes and other bank notes in England. I hope that he will also facilitate the passage of the Bill.

The universal popularity of my Bill is reflected in the breadth of the sponsorship. Sometimes when I wish to introduce a Bill I am almost on my knees looking for 12 sponsors. This time I have been so inundated with requests that I have even had to turn down my hon. Friend the Member for Bolsover (Mr. Skinner), who normally sponsors all my Bills. This time all the places were filled before he got in. When I read out the names, my hon. Friend will probably be grateful that he did not add his name to the list, because I have hon. Members from all parts of the House, from one extreme to the other, including a few moderates like myself.

The list contains hon. Members from Scotland, Wales and England and includes my hon. Friend the Member for Jarrow (Mr. Dixon), who is well known and well admired as a great supporter of all things Scottish. He tells me that when he used to return from his frequent forays across Hadrian's wall he had his pockets full of Scottish bank notes. To his dismay, he found that some of the Geordie money traders would offer him only 19s 6d for a Scottish pound. My Bill would help to eradicate that kind of unfair exchange and injustice, and would help people north and south of the border.

The Bill is not a retrograde nationalist measure; rather it is an attempt to give a degree of international recognition to something that is part of the Scottish heritage. It would be of considerable benefit to many of Scotland's friends in other parts of the United Kingdom. I ask the House to support it.