Scotland: Devolution Commission

Wednesday 22nd October 2014 Lords Chamber

Question

15:20

Asked by

[Lord Foulkes of Cumnock]

To ask Her Majesty’s Government what progress has been made by the devolution commission, chaired by Lord Smith of Kelvin; and when they expect it to report.

[The Advocate-General for Scotland (Lord Wallace of Tankerness) (LD)]

My Lords, the noble Lord, Lord Smith of Kelvin, has already done his work and is today chairing the commission’s first plenary session. All of Scotland’s five main parties are taking part in this process. There is a clear timetable for the work and an opportunity for people across Scotland to participate. The Smith commission will produce a heads of agreement report by 30 November this year.

[Lord Foulkes of Cumnock (Lab)]

My Lords, I am grateful to the Minister for his Answer. However, does he agree with me that the Smith commission should not operate on the basis of party horse trading but on principles, particularly the principle that each power devolved should be appropriate to be exercised at that level, and that Holyrood should be given tax-raising powers sufficient to enable it to raise enough money to cover the expenditure for which it is responsible?

[Lord Wallace of Tankerness]

My Lords, I agree with the noble Lord that this should not be a question of horse trading. Ahead of today’s meeting the noble Lord, Lord Smith, indicated that he believed that there would be a will among the parties to reach agreement. I do not think that it would be appropriate for the Government to dictate to the Smith commission what the principles should be, although I do think that the noble Lord makes an important point about principles. The one important, fundamental principle is that all five parties should work to strengthen the Scottish Parliament within the United Kingdom. On 18 September, the people of Scotland voted for Scotland to remain part of the United Kingdom, and that is a principle we cannot lose sight of.

[Lord Palmer (CB)]

My Lords, given that there is a rumour going around that Scottish MPs in the other place will not be able to vote on only English matters, might those of us in this House who live north of the border be affected by the same rule?

[Lord Wallace of Tankerness]

My Lords, as we heard the Reading Clerk read out a moment ago, and have heard numerous times, we are Peers of the United Kingdom. That puts us in a slightly different position from those who are elected to represent specifically Scottish constituencies.

[Lord Purvis of Tweed (LD)]

My Lords, it is, indeed, a historic day when all five major parties in Scotland meet round the table to discuss the way forward for Scotland. This will require those parties that have published proposals not only to form an agreement on the basis of principles but to compromise and, indeed, for some—not exclusively the Labour Party—to go beyond the proposals that they have already published. If that is the case, which we all hope that it will be, will the Government commit to promote actively the result of this to make sure that all families and voters in Scotland are aware of these home rule proposals for the long term? Will the Government also commit to meeting their deadline for bringing forward draft clauses to bring forward the conclusions of the Smith commission for legislation?

[Lord Wallace of Tankerness]

My Lords, on my noble friend’s latter point, the Government have indicated that they will bring forward draft clauses and, indeed, will do so by Burns Night, 25 January 2015. My noble friend makes an important point about the importance of ensuring that people in Scotland know what these proposals will be. We have sometimes undersold the very significant additional powers that have been made available to the Scottish Parliament under the Scotland Act 2012.

[Lord Wigley (PC)]

My Lords, does the noble and learned Lord accept the words of the Prime Minister at Question Time today when he confirmed that full fiscal autonomy and full control of Scottish taxes were within the options of the Smith commission? If that is so, how can it be achieved within a unitary state, and does it not beg the question that, inevitably, we must move towards a federal or quasi-federal structure?

[Lord Wallace of Tankerness]

The noble Lord knows what my party’s position on federalism has been for the last 100 years-plus. However, the important thing is that the noble Lord, Lord Smith of Kelvin, and his commission are allowed to get on with their work on the basis of the submissions made to them and do not feel in any way that they are being hidebound by the views of either the Scottish Government or the United Kingdom Government.

[Lord McConnell of Glenscorrodale (Lab)]

My Lords, one of the more unfortunate developments in Scotland over the last two years has been the headlong rush to discuss more powers for the Scottish Parliament before discussing what to do with the additional powers in the 2012 Act. But given that situation, it is now vital that we have a sustainable settlement for the longer term. That will need all five parties to move from their current positions and the new commission to agree on the basis of principle. Have the Government set as an objective for the commission a sustainable, long-term settlement for tax powers in Scotland that will then allow the parties to get on and talk about what to do with the powers rather than about how many powers they have?

[Lord Wallace of Tankerness]

I thoroughly agree with the noble Lord with regard to the importance of the use of the powers. I like to think that the Administration of which he and I were part made very good use of our powers. That is important. It is also important that that is sustainable in the longer term to ensure not only that Scotland’s place within the United Kingdom is maintained but that it will be a balanced settlement, which we are ultimately striving for, that is fair to people in England, Wales and Northern Ireland.

[Lord Trimble (Con)]

My Lords, how within the commission will there be a provision to enable the British national interest to be reflected?

[Lord Wallace of Tankerness]

My Lords, as I indicated to the noble Lord, Lord McConnell, any agreement must be sustainable for the longer term and fair to other parts of the United Kingdom. I do not want to be tempted down the road of second-guessing the Smith commission but I have made it very clear that the one principle that cannot be challenged is that the people of Scotland voted to remain part of the United Kingdom. That principle must be upheld in any proposals that the commission comes forward with.

[Lord McAvoy (Lab)]

My Lords, as the Minister said, we should not second-guess the Smith commission. The details will come. However, does he agree that all parties must enter the process in good faith and want a conclusion to the process that respects the result of the referendum, which was decisive, and is in the best interest of the people of Scotland?

[Lord Wallace of Tankerness]

My Lords, obviously everyone wants the outcome to be consistent with the referendum outcome and in the interests of the people of Scotland. The noble Lord, Lord Smith, has already met the individual parties and said that he believes there is a will among them to reach agreement. I hope so and that it will be done in good faith.

[Lord Grocott (Lab)]

Was the Minister actually saying, in answer to an earlier question, that while it would be fine to create two categories of MP by withdrawing voting rights on certain matters from MPs from Scotland, there would be no question whatever of having two categories of Peer—a matter in which he would have a direct interest? That sounds to me suspiciously like wanting to have your cake and eat it. Surely, the only way that one can sustain a position of equality across the United Kingdom is to say no to any suggestion that there should be two categories of voting rights, either for MPs in the House of Commons or Peers here. Starting to have two categories of Member would be to take a very dangerous route towards the break-up of the United Kingdom.

[Lord Wallace of Tankerness]

My Lords, I think I was answering very directly the question asked by the noble Lord, Lord Palmer. I made the self-evident point that there was a difference between people elected to represent a territorial part of the country and Peers of the United Kingdom. However, the so-called West Lothian question is a live issue that has been around for far longer than even Mr Tam Dalyell. A number of proposals have been put forward, including comprehensive proposals from the McKay commission. I know that my right honourable friend Kenneth Clarke chaired a commission for the Conservative Party, and my right honourable friend David Laws has put forward ideas on behalf of my own party. It is important that these issues are addressed. The Prime Minister set up a committee under the chairmanship of William Hague to look at this issue, among other things, and I very much hope that it can proceed on a cross-party basis, if possible.

[Lord Cormack (Con)]

My Lords, is it not important that Mr Hague’s committee does not come to premature conclusions? What the noble Lord, Lord Grocott, said about categories of Members of Parliament and of this House is exactly right. What is at risk is the future unity of the United Kingdom, and any short-cut solution on the basis of the glib “English votes for English laws” will not necessarily safeguard the long-term interests of this country.

[Lord Wallace of Tankerness]

My Lords, I think that I am on safe ground in otherwise difficult territory in saying that the one thing that everyone is united upon is the importance of the United Kingdom. Proposals on any part of constitutional reform must be looked at on the basis of whether they will sustain the United Kingdom. There would be no point, having gone through the trauma of a referendum and having established Scotland’s place and integrity within the United Kingdom, going about constitutional proposals that start unpicking the ties that bind us.