Scottish Labour Leader Iain Gray has been joined on the campaign trail today by Shadow Chancellor Ed Balls MP who has warned that Alex Salmond's 'obsession with an independence referendum' puts the recovery at risk and is 'one sure-fire way to put investors off' investing in Scotland.

The comments came as the pair met with mechanics and staff at a garage in Edinburgh to highlight Labour's plans to create 250,000 jobs over the next ten years and eradicate youth unemployment.

Scottish Labour Leader, Iain Gray, said:
 
"Ten thousand people joined the dole queue in the last year, families are feeling the squeeze, and youth unemployment is in crisis. Yet, the SNP still are completely fixated on wasting the next five years with a referendum on independence rather that fighting for what really matters.

"The SNP haven’t woken up to the fact that this election is being fought in the backdrop of a Tory government that is cutting too far and too fast.

"People want a government in Scotland that will focus on what really matters: jobs not a costly referendum that will freeze investment and damage Scotland."

Speaking as he campaigned with Iain Gray in Edinburgh, Shadow Chancellor Ed Balls MP said:

"Everyone knows that Scotland is a world leader in ideas and the enterprise of its people.

"However, like the rest of the UK, Scotland needs the right conditions for the economy to recover.

"Just as George Osborne cutting too deep and too fast has seen the economy stall and unemployment go up, so Alex Salmond’s obsession with an independence referendum also puts the recovery at risk.

"There are different ways to attract investment – but there is one sure-fire way to put investors off, and that is for the SNP to spend the next five years in the Scottish Parliament trying to split up the United Kingdom.

"Businesses won’t commit to Scotland, even with all of the talents of its people and advantages of locating here, if its First Minister is obsessed with making profound changes to the tax regime, the financial sector, the currency and Scotland’s relationship with its biggest market – the rest of the UK.

"As a shadow chancellor who wants to see a strong and prosperous economy, where people have good jobs and a bright future, I make these warnings seriously.

"No part of the UK can afford the instability and warning sign to investors that the SNP’s obsession with a referendum on independence would bring.

"In contrast to the SNP, with Labour Scotland would have five years of abolishing youth unemployment, supporting growth, tackling child poverty and investing in schools and safer streets, so I won’t let anyone tell me that Labour haven’t set out the differences with the SNP in this election."

26 April 2011