draft Scotland Act 1998 (Specification of Devolved Tax) (Wild fisheries) Order 2017
(6 years, 11 months ago)
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The Deputy Leader of the House of Commons (Michael Ellis)
I beg to move,
That the Committee has considered the draft Scotland Act 1998 (Specification of Devolved Tax) (Wild Fisheries) Order 2017.
The purpose of the draft order is to provide the Scottish Government with a limited and specific power to raise a levy on wild freshwater fisheries for the purposes of the management, conservation and sustainable development of those fisheries. The order stems from reforms being undertaken by Scottish Ministers to ensure that effective measures are in place to manage and conserve wild fisheries in Scotland.
An independent review of wild fisheries in Scotland was commissioned by the Scottish Government in 2014. Among the recommendations of the review was that the Scottish Government should have the power to adopt appropriate management tools, including the flexibility to change the way in which income is raised for fisheries management, which is currently done through a fisheries assessment levy applied to salmon fisheries at a local level.
The draft order will give Scottish Ministers the power to make regulations imposing a levy on the owners, occupiers or users of wild fisheries, or the owners or occupiers of the right to fish in wild fisheries. The Scottish Government intend to use the power by introducing provisions related to their wild fisheries (Scotland) Bill, which will provide Scottish Ministers with the flexibility to set, collect and retain fishery assessment levies in circumstances where they do not approve the fishery management plan developed at a local level.
The levies in question are considered by Her Majesty’s Treasury to be taxes, and therefore outside the legislative competence of the Scottish Parliament. In order to introduce a Bill into the Scottish Parliament with provisions on tax, the Scottish Government require an amendment to be made to part 4A of the Scotland Act 1998. An Order in Council under section 80B of the Act is the mechanism through which Her Majesty may by Order in Council amend part 4A so as to specify an additional devolved tax.
Her Majesty’s Government of the United Kingdom have agreed to the devolution of the power to raise a levy on the basis that it will only be applied to a levy in respect of the conservation and management of freshwater fisheries. The devolution of such levy powers to the Scottish Parliament and Scottish Ministers is not thought to have a significant impact on businesses in other parts of the United Kingdom, but is considered to be conducive to the United Kingdom Government meeting their international conservation commitments.
I therefore commend the draft order to the Committee.
Sir Nicholas Soames (Mid Sussex) (Con)
I rise briefly only to ask the Minister this detail: have the Government assessed whether the new tax is likely to improve the situation of the conservation and management of salmon fisheries?
Michael Ellis
The matter has been considered carefully and the levy is considered to be conducive to the conservation and management of freshwater fisheries, yes.
Mr Alister Jack (Dumfries and Galloway) (Con)
How does the draft order fall into place with the Tweed Act and cross-border levy collection?
Michael Ellis
As far as the River Tweed is concerned, where it crosses over the border into England, this order will not apply; it will apply to the River Tweed in Scotland. Where the river crosses the border will be the demarcation point for the order.
Lesley Laird (Kirkcaldy and Cowdenbeath) (Lab)
The order before us today is required to help enable the Scottish Government to implement their plans to modernise the management framework of Scotland’s salmon and freshwater fisheries. Recently, the Scottish Government commissioned an independent review of wild fisheries in Scotland, which concluded in 2014. One of the review’s recommendations was that the Scottish Government should be afforded the power to adopt appropriate management tools. Any such power would include the flexibility to change the way in which income is raised for fisheries management; it is currently raised through a fisheries assessment levy.
The draft order will give the Scottish Parliament legislative competence to allow Scottish Ministers the power to make regulations imposing a tax on the owners or occupiers of wild, freshwater fisheries of any species, or owners or occupiers of the right to fish for Atlantic salmon in Atlantic salmon fisheries. The Scottish Government have indicated that it is their intention to use that power by introducing provisions to their wild fisheries Bill that will allow Scottish Ministers to set, collect and retain fishery assessment levies in circumstances in which Scottish Ministers do not approve a district salmon fishery board fishery management plan.
The levies proposed by the wild fisheries review on both businesses and individual anglers are considered by HM Treasury to be taxes and so outside the legislative competence of the Scottish Parliament. In order to introduce a wild fisheries Bill with tax provisions into the Scottish Parliament, the Scottish Government require an amendment to be made to part 4A of the 1998 Act. The amendment will deliver funding flexibility in Scotland and enable the Scottish Government to address changing and potentially unforeseen pressures in the future. For that reason, the Labour party will support the order.
Douglas Chapman (Dunfermline and West Fife) (SNP)
Scottish National party Members certainly welcome the changes and the return of powers to the Scottish Parliament. I know that this matter has been negotiated and long discussed between the various Governments.
Stewardship of all resources is taken very seriously by the Scottish Government, and in no area more so than fisheries. As other talks continue, we obviously also want to see the repatriation of, for example, North sea fishing stocks and the Seafish levy, and we want a phased discard scheme to be introduced. However, those issues are for another day. Will the Minister comment on when he thinks the powers will in fact be transferred?
Michael Ellis
On the first point, I of course welcome the position of the Scottish National party in welcoming this order. The order will come into force the day after Her Majesty approves it in Council. It can only go before Her Majesty in Council when it has gone through the legislative processes of this House, so a date has not been fixed for that, but it is not anticipated to be particularly far in the future. The activation of the order would be the day after Her Majesty approved it in Council, should Her Majesty do so.
On the exact legal ramifications relating to the River Tweed, I have said that the levies attracted by the Scottish Government will of course only apply within the jurisdiction of the Scottish Government. I can say no more than that at this point, but if there are any questions in particular about the exact specifics, we can certainly write to my hon. Friend.
Michael Ellis
As I have said, I am happy to write to my hon. Friend with more detail about that matter, but that is all the information I have on this order at the moment.
Question put and agreed to.
Draft Government Resources and Accounts Act 2000 (Audit of Public Bodies) Order 2017
(6 years, 11 months ago)
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The Exchequer Secretary to the Treasury (Andrew Jones)
I beg to move,
That the Committee has considered the draft Government Resources and Accounts Act 2000 (Audit of Public Bodies) Order 2017.
The draft order was laid before the House on 11 September this year under the Government Resources and Accounts Act 2000. It requires eight new public bodies to be audited by the Comptroller and Auditor General. Two of those—the Ebbsfleet Development Corporation and the housing ombudsman—are central bodies, while the remaining six are constituted as companies. The eight bodies all agree to the amendment, as it moves them to the same basis as all other public bodies. The draft order also removes from auditing 61 public bodies and companies because they have ceased operation and are therefore no longer subject to public audit.
In conclusion, the proposals in the draft order confirm the Government’s commitment to achieve consistency in the public audit arrangements for public bodies, which provides a net gain for both Parliament and the public. This is part of a regular process of updating the list of bodies to be audited, which was last updated in 2012. I commend the draft order to the Committee.
Peter Dowd (Bootle) (Lab)
It is a pleasure to serve under your chairmanship, Mr Paisley, and to speak this afternoon. As the Exchequer Secretary said, this measure tidies up the process of public audit for a number of public bodies that no longer exist and brings new bodies into purview. I understand that the Potato Council is one of the victims that has been peeled off to form part of the Agriculture and Horticulture Development Board.
Graham Stuart (Beverley and Holderness) (Con)
You’ve got a chip on your shoulder.
Peter Dowd
I did keep my eyes peeled for this particular issue. I notice there is also one spec-tater in the Gallery.
The Opposition support the order and measures of this nature, but I want to reiterate the importance of transparency and value for money in all our public bodies. The National Audit Office says that its work led to audited savings of £1.21 billion in 2015, which it estimated was its highest level of financial savings to the taxpayer to date, equivalent to £19 saved for every £1 spent. We have to ensure that public auditors have the independence and resources to carry out their job effectively, therefore guaranteeing strong governance.
However, the NAO’s own statement of accounts says that in real terms its net resources are expected to decline by 15% between 2012-13 and 2019-20. While the NAO has made impressive progress in becoming cost-efficient, can the Minister confirm that in future it will receive the level of resources it needs to continue with its high standards of public audit? I hope that was crisp enough for you, Mr Paisley.
Andrew Jones
Given that the list of bodies includes the Home-Grown Cereals Authority, the Milk Development Council and the Meat and Livestock Commission, we should be grateful that we have not had more hideous puns from the shadow Minister. I am grateful for the Opposition’s support for the order, and I of course recognise that the work of the auditor teams up and down the country is very valuable. They do indeed have the resources they need, and we have a very positive financial settlement for them.
Sir Greg Knight (East Yorkshire) (Con)
Can the Minister tell the Committee whether the measure applies to Scotland and Northern Ireland? Would it make any difference if one of the bodies mentioned in article 4 were to move to Scotland or Northern Ireland?
Andrew Jones
This is a UK-wide measure; it is a UK body. I commend the draft order to the Committee.
Question put and agreed to.