Page last updated at 15:34 GMT, Monday, 13 October 2008 16:34 UK

In quotes: Scottish reaction

Reaction from across Scotland to the news that the Royal Bank of Scotland and HBOS have been bailed out by the government.

SIR GEORGE MATHEWSON, FORMER RBS CHAIRMAN

"I obviously welcome the stability introduced to the banking system but it is deeply regrettable that we have, effectively, government ownership of a large part of the banking system.

"I think the banks will recover but we have to understand that this was fundamentally caused by the exporting of silly lending decisions in America, which we have to remember was done in a culture of lending money to people who have no real chance of paying it back.

"I am confident the banks will pick up eventually but we are looking at a dire economic situation just now.

"Right now, this is the direst and worst day for a long time. It is difficult to take a view from within the darkness."

DEREK SIMPSON, UNITE JOINT GENERAL SECRETARY

"The government has shown strong leadership and decisiveness in a time of great uncertainty.

"The measures announced today must be bound to undertakings by the banks of no job losses, no repossessions and an end to the bonus culture.

"Thatcher buried Keynesian economics and the current crisis shows just how wrong she was.

"Government intervention is not only necessary in the financial services but intervention on a wider scale is necessary to protect jobs and the economy in a recession."

ANDY WILLOX, FEDERATION OF SMALL BUSINESSES

"It would be foolish to make a snap judgement about what impact it might have on the real Scottish economy.

"However, the bailout's provisions to ensure that small firms get 2007 levels of access to finance, if only from Lloyds TSB/ HBoS and the Royal Bank of Scotland, sound like a positive step.

"It is crucial in these tough times that small businesses have access to fair overdraft and loan rates.

"It is vitally important that now that government has a stake in the banks, that they use their influence to ensure that small firms get treated with the proper respect they deserve and that SMEs can begin to trade our way out of these troubling times and beyond."

RON SMITH, EDINBURGH SOLICITORS PROPERTY CENTRE

"I would like the banks to reintroduce some liquidity into the market place, things like mortgages and terms for small businesses.

"I would look to them being more extrovert in their views, seeing as they have been examining their navals in the last few months.

"I am not generally pleased that the situation has got to this but I commend the government for its decision. It did what it had to do.

"But like every taxpayer, I am concerned about the potential level of borrowing and the knock-on effect on other spending programmes."

JAMES LAKIE, VISITSCOTLAND

"Despite the bail-out Scotland is in the fortunate position that it has an extremely strong brand.

"Looking behind the images, people world-wide recognise a set of values underpinning the brand.

"Scotland is associated with pride, innovation, integrity and proficiency.

"These values reflect not only what people see in their 'mind's eye' when thinking of Scotland, but what they know about the country's history, culture and - most of all - people."

ALLAN LUNDMARK, HOMES FOR SCOTLAND

"If we are to arrest the dramatic decline in new home output in Scotland, it is essential that we have a robust financial system providing the mortgage products that people need in order to transform their aspirations into reality.

"We need immediate action to generate some momentum back into the housing market so that the industry can begin the process of recovery."

HELEN ROBERTSON, DUNFERMLINE BUILDING SOCIETY

"Although we are a mutual society and not a plc lender, we have seen at first hand just how difficult the market has been since the beginning of the year.

"Therefore any measures that can hopefully generate stability and rejuvenate public confidence can only be seen as a positive benefit to the Scottish financial sector and to the wider UK sector as a whole."

LUCY MCTERNAN, SCVO

"A large proportion of the Scottish voluntary sector holds deposits with either RBS or HBOS and many organisations will be relieved to hear that their money has now been made more secure.

"Those larger voluntary organisations and charities with investments in the stock market will now be watching the FTSE with bated breath.

"Meanwhile, with the prospect of a recession imminent, it is clear that the voluntary sector's services are needed now more than ever."

OWEN DUDLEY EDWARDS, HISTORIAN

"The government was very wrong to have so few controls on the financial excesses of the banks and to allow this lunatic adventurism that existed in the financial sector in the past.

"Today's move is very a good one. The bail-out is a sensible step forward and it may save many people from economic and psychological ruin.

"Gordon Brown ought to remember that he rose as a socialist and people believed in him as a socialist so he should be a socialist and stop being a capitalist."

MICHELLE MONE, SCOTTISH BUSINESSWOMAN
"It really is anyone's guess as to where we'll be in six months time.

"Nobody can predict during these unprecedented times - certainly not until the financial uncertainty is brought under control.

"However, it is at these times that we all need to focus on the core activities of our business and redouble our efforts to survive and thrive."

MAITLAND MACKIE, MACKIES OF SCOTLAND CHAIRMAN

"Sustaining a strong banking and financial sector in Edinburgh is very important to the Scottish economy.

"Like many, we had got a touch concerned about our cash reserves held therein.

"The massive bail-out offered by the UK Government is very, very welcome.

"It also illustrates the strategic importance of being a solid part of a strong United Kingdom.

"A wee independent Scotland, putting it euphemistically, would have had a tough time."

DAVID ALEXANDER, ALEXANDERS LETTING AGENCY

"Another day of turmoil. Who would have thought this a couple of months ago?

"Hopefully, this will now bring this thing to a satisfactory resolution.

"The part-nationalisation of the banks will see us move forward. People will get a bit of confidence back and the banks will start lending to each other again."


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