Scotland: Devolution

Lord McAvoy Excerpts

Wednesday 29th October 2014 Lords Chamber

[Lord McAvoy (Lab)]

My Lords, this has been a powerful debate, with some very powerful speeches made by some very powerful speakers. It would take me too long to go through every single one of them but particular mention must be made of the former Secretaries of State for Scotland, my noble friend Lady Liddell of Coatdyke and the noble Lord, Lord Forsyth of Drumlean, as well as of the noble Lord, Lord Lang of Monkton.

I share the view of a number of noble Lords that the most dangerous time was not before the referendum. I believe that the most dangerous time is now. If we do not handle this collectively, if we do not handle it properly in a collegiate way, it will lead to an inevitable separation and a separate Scotland. The word “Westminster” has become an epithet—an insult. This has been contributed to by Mr Farage and by Mr Salmond. There is a disengagement between the so-called establishment parties and the public. The noble Lord, Lord McConnell of Glenscorrodale, mentioned this disengagement in the context of Westminster and the Scottish Parliament. The paradox is that, in Scotland, more people turn out for Westminster elections than they do for Scottish Parliament elections, so there is a quandary there.

More powers are guaranteed for Scotland within the agreement. Although a lot of people do not like this or that power promised in the vow, as it has come to be known, if we do not deliver on it, we are guaranteed trouble. More powers for Scotland are guaranteed, regardless of what the SNP says. We guaranteed these collectively during the referendum campaign and we must deliver on that. My party has always led on devolution and we will engage with the Smith commission in a spirit of openness and partnership with the other political parties. As has been mentioned, it is a good thing for the Scottish National Party to be involved in that.

There are a couple of things that I have been confused about all night. There have been constant attacks on the Barnett formula, and it has been stated by some very knowledgeable people that it is not based on need. Since I came into politics, although I have not studied the Barnett formula—I would not want to be up all night—I have always been told that it is based on need, and in Scotland's case that it is based partly on the geographical nature and the large physical area of Scotland. There is a new gospel out, but I certainly believed that that was part of the calculation, along with the lower incomes in Scotland and social factors. The Barnett formula has been a great boon to Scotland, because it shares the resources of the United Kingdom with a poorer part of the country. However, I accept that there is concern about the democratic deficit, and I think that there is merit in that. I am not a mathematician but, surely, if the Scottish Parliament collects more of its own spending, there is a hope that the Barnett formula—but before I can finish, the gloom and doom merchant from Drumlean is shaking his head at me. He is starting to intimidate me. In the fullness of time, I hope that the Barnett formula can be a less important consideration in the overall look, especially in financial matters.

[Lord Thomas of Gresford]

The Barnett formula quite simply, as far as Wales is concerned, is a multiplication of departmental spending from the departments devolved to Wales by the population, which is 5.3% of the United Kingdom. That is where the money comes from; it has nothing at all to do with need.

[Lord McAvoy]

As I said, if you started to debate the ins and outs of the Barnett formula, we would be here a long time. I am being honest in telling your Lordships' House that my understanding of the formula since I came into politics was always that it was based on need.

I want to address the serious question of EVEL. If we get to the stage that there are two classes of Members of Parliament, it will come across as trying to take party advantage of a situation. The noble Lord, Lord Bew, mentioned the Northern Ireland situation. I do not recall the Labour Party in my time in the House of Commons making too much of the fact that there were Ulster Unionist MPs who more or less voted with the Conservatives, because my party and I took the view that that anomaly was worth carrying for the sake of the United Kingdom. I do not recall the noble Lords, Lord Forsyth of Drumlean or Lord Blencathra, or other Conservative Peers, mentioning the injustice of that situation all those years ago. So they seem to be a bit picky about it. There is a danger that that sort of seemingly political calculation by the Conservative Party could ruin its approach to the Smith commission.

My party supports a royal commission and a constitutional convention, because it is clear that we have to establish a mode of operation through the entire United Kingdom that will be settled, will last and endure and will be of value to all the people of the United Kingdom.