Scotland: Smith Commission

Lord Higgins Excerpts

Thursday 27th November 2014 Lords Chamber

[Lord Higgins (Con)]

My Lords, this important report brings forward further proposals implementing the three commitments made by the three main party leaders in the final days—some may think that they were somewhat chaotic or even rather panicky days—of the referendum campaign. Does my noble friend agree, though, that the crucial sentence in this report states that,

“rules will ensure that neither the Scottish nor UK Governments will lose or gain financially from the act of transferring a power”?

That is very important but, if that is so, where is the point in transferring some of the VAT revenue to Scotland if it will then be offset by a change in the block grant, which is the obvious implication of that sentence? The other important sentence states:

“The Barnett Formula will continue to be used to determine the remaining block grant”.

Lord Barnett himself said that that formula was defective. Indeed, if it continues in the way in which the report suggests, that will effectively solidify the situation embodied in the Barnett formula, which I believe is unfair for UK taxpayers. We ought not simply to solidify that position.

The Scots Parliament would be given power over income tax rates and allowances. Why should that be any different in Scotland from the UK if it has no implication for the allocation of resources? There is no real reason to believe that.

[Lord Wallace of Tankerness]

My Lords, my noble friend raises a number of important issues regarding the tax proposals in the heads of agreement. He is right to draw attention to the fact that there should be no detriment as a result of the decision to devolve further power. What is intended is that at the point of transfer, the value of the tax receipts that have been transferred will be deducted from the block grant. Thereafter, it is a matter for the Scottish Parliament to determine the tax rates and how the books are balanced. Under the Azores judgment in the European Court of Justice we cannot do anything other than that. With regard to VAT, it is obviously in the interest of the Scottish Government to propose policies that will raise the buoyancy of the Scottish economy so that VAT receipts would be greater. Likewise—depending on how well their policies go—the more economic activity, the greater the income tax receipts that they will receive. Of course, the counter is also the same: if they screw it up, the tax receipts are liable to be less and there will be consequences for that, which is an important point of accountability.

Scotland: Devolution

Lord Higgins Excerpts

Wednesday 29th October 2014 Lords Chamber

[Lord Higgins (Con)]

My Lords, 50 years ago, referendums were virtually unknown. Since then they have become increasingly fashionable. This is very often prompted by the argument that referendums are democratic. However, I have always felt that that is not really the case, at least not if you are trying to find the best form of democracy. Referendums tend to produce a situation that is really the dictatorship of the majority. I go along with Edmund Burke in taking the view that the better system is a representative system of parliamentary democracy, in which Members of Parliament are elected as representatives, not as delegates.

I therefore had considerable misgivings about the proposal for a Scottish referendum and I feel bound to say that my worries have been amply justified. We have avoided falling over the cliff to which many noble Lords have referred in terms of the vote going the wrong way but, at the same time, the referendum has made more acute many of the underlying problems which might otherwise have been dealt with in a more considered and leisurely manner. We now have to deal with a whole series of things and I feel it might have been better if we had not had the Scottish referendum at all.

That is water under the bridge but what has come out clearly in this debate is how acrimonious much of the debate in Scotland was. The situation was exacerbated by the panic ahead of the vote following the so-called vows by the party. As far as I can establish, these vows were made with absolutely no consultation whatever with their parties. It was further exacerbated by the immediate reaction of the Prime Minister following the vote, which set down a very tight timetable—a timetable reaffirmed by my noble friend the Leader of the House.

My noble friend did not deal at any great length with the ways in which the West Lothian question, which has been such a feature of this debate, would be dealt with. My own feeling is that it would be a serious mistake to try to deal with the problem by primary legislation. Making changes to the Standing Orders in the other place might be a better way of dealing with it. Perhaps the Speaker of the Commons could simply certify a Bill as being an English Bill, in the same way that he certifies whether a Bill is a money Bill. I suspect that the number of purely English Bills would be far fewer than one might think. Then there might be voluntary abstinence on the part of Scottish Members from voting on particular items where such matters were clearly dealt with in Scotland by the Scottish Parliament and so ought to be matters for English Members in the English Parliament. We should be very cautious about anything formal and certainly not establish such a thing as an English Parliament, which would undoubtedly lead to the break-up of the United Kingdom. The same problem would arise if we had two classes of Members of Parliament. That would also tend to lead to further fragmentation.

I turn quickly to the implications of the devolution of further tax-raising powers to the Scottish Parliament. In particular, I hope that the Smith commission will look very carefully at how the system will work if tax is devolved more to Scotland and there is then a situation where the Chancellor of the Exchequer has to deal with the consequences. We want a clear mechanism. I presume the Scottish situation would have to be clarified first and the Chancellor would then decide how he ought to respond. I also have some doubts about the motivation for having greater tax paying and, in particular, income tax changes in Scotland. If it is merely to alter the various rates and allowances, it is not clear why the situation in Scotland should be so different that they need a different set of rates. The difference between the two countries is not so great as to argue for it. If there is to be more devolved control over taxation in Scotland, it may be that the Scottish Parliament and the Scottish people would feel that they would get some benefit from it. The Government’s White Paper makes it clear that whatever changes are made in the devolution of taxation to Scotland ought not to result in a change in the balance of the allocation of resources between the two countries. If this goes ahead, I feel that there will be considerable disappointment in Scotland at the effect that controlling income tax rates and allowances actually gives.

Finally, because time is running out, I turn to the question of the balance between the two economies and, in particular, the Barnett formula. My noble friend Lord Lang of Monkton, in his splendid speech, spelt out very clearly all the problems associated with the so-called Barnett formula and, in particular, the allocation of the block grant. The present situation is not fair on England and the block grant probably needs to be adjusted. This point came out to some extent in the course of the referendum campaign. One must wish the Smith commission well on a very difficult range of issues. It will have to decide how to reconcile the devolution of tax powers to Scotland with the overall macroeconomic management of the economy by the Chancellor of the Exchequer on behalf of the United Kingdom as a whole.

Marriage (Same Sex Couples) Bill

Lord Higgins Excerpts

Monday 8th July 2013 Lords Chamber

[Baroness Knight of Collingtree]

My Lords, in the first debate on the Bill, I warned that we were losing the right to have and live by a conscientious objection all the time. I gave a number of instances, one of which has been referred to today, which was the simple and widely known fact that all Catholic adoption agencies have had to close because they are not happy about putting a child in a home where there are two men or two ladies. I agree completely with what was said in the earlier debate about the monstrous way that we in this country and, I am afraid, other countries have treated homosexuals in the past. However, those who point out how wrong that was are saying, “But it’s only wrong up to a point. We can demand that other rules are made that aren’t fair”. More and more I come to the conclusion that one person’s human rights are the denial of another person’s human rights.

We agreed years ago—I think the first well known example occurred during the First World War—that people were able to have a conscientious objection to fighting. They were given other jobs, which were extremely important in the war effort, and that happened in the last war, too. We must guard and guide that trend. It is woefully and obviously wrong to say today that it is right that conscientious objections shall, in certain circumstances, be smothered. It has to be wrong. We must stand and defend those conscientious objections.

I am also very concerned about what the noble Baroness, Lady Williams, said. She pointed out, unless I misheard, that being a registrar was the first step to a whole career. The fact that apparently we can do nothing about these future circumstances must mean that many people will not be able to go into the career that perhaps they have planned for many years. I urge noble Lords to recognise that it is very dangerous for a free country to deny a person’s right to live by their conscience. We may not agree—it is not important at all—but everybody has a right to their conscience and to live by what it tells them. It is only fair to say that we must try to give the same human rights to everyone.

I know that the noble Lord, Lord Alli, is a fair man. I think that when he considers again his suggestion that just because you have a certain job you should be forced to act against your conscience, he will see that that is the wrong road to take. I support, with many congratulations, those noble Lords who put their names to this amendment, the aim of it and what will happen. I am quite sure that plenty of other registrars who do not hold the same view will be available, and couples who wish to be married will easily be able to be married by them.

[Lord Higgins]

My Lords, the crucial point is that we have to take account of the fact that some individuals may be affected. What representations have been made on their behalf is not the point. We need to allow for the fact that some such individuals may have serious grounds of conscience. I turn to the point made by the noble Lord, Lord Pannick. He says that these people have a contract, as registrars, to carry out marriages. However, the crucial point is that the marriage that they are now asked to carry out is not what they understood marriage to mean when they signed the contract. We have to take account of the fact that we are changing the rules after they have accepted the job. On a purely transitional basis, there is an overwhelming case for us to agree this amendment.

[Lord Wills]

Before the noble Lord sits down, is he saying that it is completely unreasonable to expect a registrar, in this modern day and age, not to have foreseen that the current measure would come before Parliament at some point in the foreseeable future? Does he think that that is an unreasonable proposition?

[Lord Higgins]

I had already sat down. However, it seems to me that there is no reason to suppose that anyone would have anticipated this. When I led from the opposition Front Bench on same-sex partnerships, no one envisaged this; indeed, a number of people said that it was not going to happen.

[The Lord Bishop of Chester]

My Lords, as a bishop of the Church of England who is constrained by the church not to conduct same-sex marriages, the vision of the noble Lord, Lord Alli, has stimulated me briefly to rise to my feet. I suppose that I should declare an interest, given that I am a sort of registrar. Perhaps I am the only one here, as a bishop of the Church of England.

This is a modest amendment, as has been pointed out, but it has a certain symbolic importance. A lot turns on the status of the issues that we talk about, and that has dogged our debates throughout. The noble Lord, Lord Lester, asked why there is an exception in this case. However, the law does make exceptions in relation to the strongly held beliefs of a significant number of members of a religious body in relation to sexual orientation. The law allows religious bodies to have single-gender priesthoods or whatever. We have agreed exceptions in that area that we have not agreed in other areas, such as divorce. That is why the parallel between same-sex marriage and divorce—I think that the noble Lord, Lord Pannick, raised that point—does not quite follow. It depends on what one regards as the status of the different issues. For example, as I pointed out at Second Reading, historically the canons of the Church of England have never banned clergy from remarrying divorced people. A different status applies in this instance.

One of the problems is that a lot of people here feel—and I understand why—that this whole issue is a no-brainer, and that anyone who is opposed to same-sex marriage is almost de facto and de jure homophobic. That rather destroys the concept of reasonable debate. I find that that happens in the Church of England over the issue of women bishops: if you are opposed to that, somehow a glaze goes over people’s eyes and they cannot speak to you at all. As the noble Lord, Lord Deben, said, it is about having tolerance in the democracy in which we live. The issue is a small one.

As I understand it—though I speak as a fool in the presence of so many lawyers—the principle in this country is that we do not legislate retrospectively unless there is a compelling reason to do so. I do not think that a compelling reason to force existing registrars to conduct same-sex marriages has been demonstrated in our debate. In that spirit, I hope that we can accept the amendment.

--- Later in debate ---

Lord Wallace of Tankerness: It does say that. It states:

“In the Registration Service we leave beliefs at home and deliver neutrally”.

That is the point made by the noble Lord, Lord Peston. The registrars are free to express their beliefs. There is nothing in this legislation that curbs their ability to hold these beliefs and to express them. However, in the performance of the duties they do on behalf of the state, we are saying that they should not be able to do that in a way that discriminates. It would not be appropriate for us to put on the statute book legislation in which the state legitimises discrimination.

[Lord Higgins]

If it is true, as the Minister says, that the Panel of Registration says there are no registrars who want this, we will pass the amendment and it will have no effect. The question is whether there are some who we do not know about who would wish to exercise their views as far as conscience is concerned.

On the other point, that they have taken on a job and they then find that it has changed, surely, on a transitional basis—and I stress that—they ought to be able to say, “We are perfectly happy to go on with the original contract”.

[Baroness Farrington of Ribbleton]

Perhaps I may I remind noble Lords that this is Report. People should ask very brief factual questions and no one should speak after the Minister has spoken except the mover.