(9 years, 11 months ago)
Lords ChamberMy Lords, picking up on that final point, it means what it says: if there is devolution of income tax, which we are proposing to implement, the UK Government—the Revenue and the Treasury—will not receive the income tax receipts from Scotland on earned income and therefore the block grant will be reduced accordingly. That will be indexed. Box 1 on page 29 of the Command Paper describes how this is intended to work in terms of what we have already passed with regard to the Scottish rate of income tax under the 2012 Act. The noble Lord will see how it is intended to work with regard to the proposal that Parliament has already passed, one that can proceed for income tax as a whole and, indeed, for other taxes.
With regard to the two-thirds majority, it is not such a novel procedure as my noble friend suggests, because, although I suspect that he opposes it, it was nevertheless passed by this House when it introduced the Fixed-term Parliaments Act early in this Parliament with regard to any early general elections that might be called in the other place. We are actually implementing what the noble Lord, Lord Smith of Kelvin, recommended, which is that for matters as fundamental as the franchise, the number of constituencies and the electoral system we will provide “an adequate check”, as he put it in his commission’s report, on the Scottish Parliament. After all, it is a unicameral Parliament and a Government of a single party should not ride roughshod over the interests of other parties on a simple majority and completely change the electoral system. That is why the commission believed that on matters as fundamental as that, given that that power is being transferred from this Parliament to the Scottish Parliament, there ought be an adequate safeguard—and that safeguard is a two-thirds super-majority.
My Lords, first, I welcome very much the announcement that a joint arrangement has been put in place between the UK Government and Scottish Government on the implementation of the welfare provisions because that is an area in which there could be real trouble ahead. I wonder whether a similar mechanism is already in place, or is likely to be in place soon, for the recommendations on improved working between the Scottish Government and the UK Government and between the Scottish Parliament and the UK Parliament. I should be interested to hear the Government’s response on that. Secondly, the power to vary taxation—not the power to retain it—falls quite far short of the spending power of the Scottish Parliament under these proposals. Given the current expectations and instability that exist in Scotland and throughout the union, do the Government really believe that this is a recipe for stability in the medium term?
My Lords, the noble Lord raises an important point about the other recommendations in the Smith commission report on better intergovernmental and interparliamentary relationships. This is something which the Calman commission looked at although, regrettably, nothing much seemed to come of it. At the meeting of the joint ministerial committee which took place in December, the Prime Minister and the First Minister discussed these matters and there was an agreement, as a start, on looking at how to improve the current memorandums of understanding to address that issue. On parliamentary matters, there was a recommendation that the Presiding Officer of the Scottish Parliament should have an early meeting, after these clauses were produced, with Mr Speaker. I am not sure whether that is in place but I endorse the view that there ought to be better parliamentary relationships, at least for better understanding and for less of the misunderstanding that can sometimes arise.
In answer to the second part of the question, this is an enduring settlement. As was reflected in the comments of the noble Lord, Lord McAvoy, from the Opposition Front Bench, 60% of government spending in Scotland will be the responsibility of the Parliament and 40% of the tax raised in Scotland will contribute to that spending. In each case, that is twice the OECD average for devolved administrations. We are building and creating an enduring settlement, but the noble Lord is right to say that it will require a lot of work and engagement between the respective Governments in terms of both the fiscal framework and the welfare provisions.
(10 years ago)
Lords ChamberMy Lords, while the fact that there is an agreement is certainly welcome, the content of the agreement will perhaps prove that allowing 11 weeks to make decisions of this nature is not necessarily the best strategy. I think that in the longer term everybody involved may come to regret putting all the eggs in the income tax basket rather than looking at a spread of taxes.
I want to ask two specific questions of the Advocate-General today. First, given that the assignation of VAT is not the devolution of a power to vary tax, will he, or the Secretary of State, publish the calculation that leads to the claim that 50% of taxation is now devolved to the Scottish Parliament? I cannot see how that calculation has been made. Secondly—partly endorsing the points made by my noble friend Lord McAvoy—the four additional points made by the noble Lord, Lord Smith, in his introduction to the report seem to be almost as important as the actual devolution of more powers. Will the Government give an unequivocal statement of support for those four additional points and do everything they can to support the Scottish Government, the Scottish Parliament and, indeed, Scottish civic society to ensure that they are implemented alongside the new powers that are now on the way?
My Lords, I hope that we will be able to set out some infographics—if that is the current “in” word—showing how the tax take of the Scottish Parliament will relate to spending, bearing in mind that the spending of the Scottish Parliament is going to go up as a result of these proposals. The denominator is an important factor in that. I listened to the noble Lord, Lord Smith of Kelvin, on the TV broadcast of his announcement this morning. I hope that nobody is going to ask me to remind them what the four points were, but, like the noble Lord, Lord McConnell, I thought that they were all very pertinent. They were points that had been made by many people in your Lordships’ House and by others. The one that sticks out in my mind—because it has been a theme in a number of our debates—is the importance of decentralisation generally: that to devolve power from Westminster to Edinburgh is only part of the story. There has to be further decentralisation within Scotland because the last seven years have seen considerable centralisation within Scotland.
(10 years, 1 month ago)
Lords ChamberMy Lords, the result of the Scottish referendum was clear enough to resolve the issue of Scotland’s place within the United Kingdom for at least a generation, but it was also close enough to make all of us in positions of responsibility, elected or otherwise, sit up and listen to the message that it sent. Probably the most used phrase in Scotland over recent months has, I suspect, also been used across many of the towns of the north of England and elsewhere in the UK: “They just don’t get it”. That is a telling reminder for us of the disconnect that exists today between the Government, Parliament and the people that they are there to serve. In recent years there have been bonuses paid that appear to have been completely unjustifiable, scandals covered up at the British Broadcasting Corporation, the ongoing scandal over many years of expenses for Members of Parliament, and the “jobs for the boys” culture that appears to exist in and around British institutions. The feeling that they—the metropolitan elite in one form or another—are in it for themselves ran deep in Scotland in August and September. Those voting yes were not all nationalists, but they did all want to kick the establishment and the established order.
Does my noble friend not agree that there have been some problems in Holyrood just as much as in Westminster?
Yes, but I do not think that the issue there in any way reflects the perception in the country, not just in Scotland, of what happens between people in positions of responsibility and in established institutions in London and the metropolitan centre.
It is a matter of real regret for me that the fantastic atmosphere, very similar to that described by my noble friend Lady Royall, that existed in Glasgow and the rest of Scotland in July during the Commonwealth Games dissipated so quickly and turned into such bitterness and bile. It is also a matter of regret for me that it took Dan Snow, Bob Geldof and others to positively express what was good about the United Kingdom and worth keeping, in a way that most of the politicians seemed unable to do. It is a matter of deep regret for me that so many of what I would describe as UK politicians seem unable to see and praise, even from time to time, the good that has happened in the devolved Assemblies and Parliaments since they were created. That resonates with the people because it adds to that perception of being out of touch and at a distance. It is also a matter of regret for me that, in an unnecessary panic, commitments were made about additional powers for the Scottish Parliament that will be a challenge to keep. However, we are where we are, and keep those commitments we must.
I believe very strongly that the Smith commission must drive its work based on the following principles: the principle of subsidiarity, by which decisions should be made at the most local level possible; the principle of mutual respect between the two Parliaments and between the two Governments; and the principle of fiscal responsibility, but also fiscal opportunity for the Scottish Parliament so that it can make decisions that might spark off entrepreneurial activity and other developments in Scotland, in addition to having responsibility for the expenditure that it has made so far and will make in the future. The Smith commission should absolutely commit itself to doing nothing that would damage the UK single market. It should also have firmly in its thoughts the need to redistribute across the UK from rich areas to those that have more needs.
I believe strongly that the unionist parties will need to move their current policy positions. A settlement based on any of the current submissions will not be sufficient to create stability and allow the debate in Scotland to move on to using powers rather than more powers. The final settlement will require somewhere between half and two-thirds of expenditure being the responsibility of the Scottish Parliament through tax-varying or tax-setting powers. I believe that those powers should be not just for income tax; they should be partly income-related, partly business-related and partly sales-related. There must be the power to vary rates of tax up and down but not to assign revenues. If these additional powers are to be devolved to Holyrood, Holyrood itself must reform to ensure that government and decisions there have more accountability, and more checks and balances, than they appear to have at the moment.
With regard to the situation in the UK, coming out of the referendum it is vital that the UK looks at votes for 16 and 17 year-olds. The issue of English consent—not necessarily English votes—for English laws will have to be addressed in due course. Reform of this House, based on more equal representation for the regions of this country, will be essential. Individual matters such as the recall of MPs and the future of the territorial Secretaries of State will need to be addressed. I would have preferred it if these issues had been addressed in a constitutional convention, and I hope that that option might still be on the table.
Finally, I really wish that the Prime Minister, instead of standing on the steps of No. 10 the day after the referendum, had come to Scotland and said thanks. It would have been the right thing to do: to come to Scotland and say to people, “We are grateful that you voted the right way and we will be back. We mean it. We meant it when we said that we would change and improve this relationship, and in future our Ministers, both government and opposition, will come to Scotland and other parts of the kingdom not just when there is a problem and a vote is taking place. We will come all year round and will engage with you, and we will govern for the whole United Kingdom”. If the Government would do that, the whole kingdom would be a happier place.
Perhaps the noble Lord would address this point. There is a feeling in Scotland that at least part of that accumulation of support for independence is due to increased confidence. That is partly because Scotland’s performance economically today compared to the rest of the United Kingdom is significantly better than when the Parliament was established. Population decline has been reversed and a number of other improvements in Scottish society have been made. That confidence is perhaps part of the reason why people feel they can take on the additional powers of independence.
I accept the noble Lord’s point, but the same point could be made about Irish nationalism, which also becomes more intense at certain points when there is more self-confidence as a result of good economic performance. Indeed, in the period leading up to Ireland’s break with the United Kingdom, the First World War was a tremendous boon for Irish farmers and most people in Ireland were farmers. So I accept the point.
On the issue of the federalist moment, which so many have conjured up this evening, I have no intellectual objection to it and I understand its appeal, but I just want to express one point of scepticism. In 1910, all the major parties and all the major players had a serious interest in separatism, with Winston Churchill at the heart of it. Why? Because they could see the Irish home rule crisis about to come and they could see the threat of civil war. They could see the danger that the unwritten rules of the British constitution were going to be absolutely torn apart. Federalism was the wonderful, magical way in which all these contradictions could be resolved, everyone could be happily secured in their identity and the Irish could be given the substance of what they wanted. If we could not do it then, when the political class on all sides thought that this was the right way to go, are we likely to be able to do it now, when the pressures are nothing like so great? It may be so, but—this is not a judgment on the concept of federalism; it is a judgment on just what it requires to get people to move in that direction—I am not sure that we are quite there at this point.
The noble Lord, Lord Forsyth, has already made the point about the reduction of MPs in Westminster from the devolved regions being the obvious solution to the West Lothian question. When I met the McKay commission, I made exactly the same point as the noble Lord, Lord Lexden, that this was the approach adopted with respect to Ireland. It is the obvious and logical way of approaching that question. However, we are now in a situation where the McKay commission has decided to go a different way.
I just want to say a couple of words about that commission, because noble Lords are afraid of too speedy a reaction. Sir William McKay, a former Clerk of the House of Commons who deeply respects its traditions, has produced an answer to this difficulty that does not create two fundamentally different classes of MPs, which is the great danger at stake, but allows a greater register of English opinion. If we are in the situation where the West Lothian question will not go away—currently, it is the Conservative Party that is most active on this; in the 1960s, it was the Labour Party, which was furious that a Labour Government with a majority of only five or six had to put up with 12 Ulster Unionist MPs and Labour MPs could not ask questions about what was going on in County Antrim—today it is a different party that finds the West Lothian question hard to endure. However, if we are in a position where we have to act on this matter, a report of this sort may not have the answer but deserves some serious consideration.
Above all, the characteristic of that report, as we might expect from William McKay, is what the union requires to survive: it is dominated by the language of civility. That is the sine qua non for the survival of the UK as we approach these problems.
(10 years, 2 months ago)
Lords ChamberMy 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?
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.
(10 years, 2 months ago)
Lords ChamberI anticipated my noble friend’s question. We should not talk any longer about the divisiveness of 55% and 45% and should focus on ensuring that we deliver as best we can for the 100%.
My Lords, I want to add something about understanding the context of what happened in those last 10 days. I am deeply worried. I absolutely welcome the publication of the Command Paper today and fully congratulate everyone involved in the campaign. Many on the other side of the argument conducted themselves well—not everyone but most people. We are now in a situation where expectations have been raised almost exponentially by the vow given in the last 10 days of the campaign. None of the three main parties’ proposals published today meet that expectation. The discussions that take place over the next few weeks must be serious. They must look at the detail of what my noble friend Lord Robertson, the noble and learned Lord and I spent weeks, months and years in the mid-1990s looking at when trying to get tax and financial proposals right for the Scottish Parliament. Unless these discussions are meaningful and go deep into the detail, we will not reach a settlement that will stand the test of time, even if we also solve the other issues in the United Kingdom that have been mentioned by noble Lords. I ask the noble and learned Lord to urge all those involved to be very careful. Having raised the expectations, we do not want to bring them back down again and find ourselves in a never-ending debate and unable to move on to other issues.
My Lords, the noble Lord, Lord McConnell, is right to emphasise how much detailed work went into the constitutional convention proposals, in which he, I and the noble Lord, Lord Robertson, were involved, and the work in terms of the taxation proposals now embodied in the Scotland Act. It is now two and a half years since that Act was passed. That shows the time that it has taken to get them implemented and to get it right. I agree that we should be under no illusion about that. I do not think for a moment that the noble Lord, Lord Smith of Kelvin, is under any illusion as to the challenge he is facing.
On the final point made by the noble Lord, Lord McConnell, about getting on with the powers and using them, he and I did a couple of events during the referendum campaign where we said some of the things that the Scottish Parliament had done. I very much hope that a right and proper debate about the extent of powers will not be used as an excuse for not using the powers that are already there. They should be used to tackle many things in Scotland, including education, health, transport and policing, which are crying out to be addressed.
(10 years, 6 months ago)
Lords ChamberMy Lords, the report of the Select Committee on the Constitution on the constitutional implications of the referendum on Scottish independence is a welcome addition to our debate today and to the debate that will take place over the coming months in Scotland. The noble Lord, Lord Lang, has introduced that report with the clarity that we would expect from him, and the whole House will welcome his appointment as the chairman of the Constitution Committee, given his history and his commitment to the issues on which he has spoken today and on other occasions. This is an informative, thoughtful and stimulating report, and I agree with many of the recommendations contained within it. I believe that it provides a strong framework for preparation and a guide to the judgments that will be required following a possible yes vote in September. I hope that the Government will respond within the two-month timetable that has been requested by the Committee, because if there is a yes vote in Scotland in September, we will need cool heads and steady hands to deal with the situation that emerges.
I also congratulate the noble and learned Lord, Lord Wallace, the Advocate-General for Scotland, on his opening speech, which was, as we would expect from him, a positive case for the United Kingdom in these times. No one is more trusted, in my view, on home rule and devolution in Scotland than the noble and learned Lord, Lord Wallace. I am delighted that he is leading our debate today, and I hope that he plays a more prominent role in the campaign over the summer months.
I want to confine my remarks to three particular issues: first, the campaign; secondly, the choice; and, thirdly, the future. There are just under 100 days to go before the referendum on Scottish independence. I take no pleasure in seeing the prediction that I made come true—I may even have made it in your Lordships’ House—that, as the day came closer, the gap between the two sides in public opinion would come closer, too. Today, I am certain that we will hear speeches across your Lordships’ House that will be almost unanimously opposed to the principle and practice of Scottish independence, but at this early stage in the debate I want to say that there are good people on both sides of this debate in Scotland today. We should not allow the bad behaviour of some to diminish the passionately held views of others, who seek answers to the problems that they see in a complex world. All of Scotland deserves a better and higher level of debate than we have seen thus far.
About 250 years ago, Voltaire described Scotland as the place where, across Europe, we all look for our ideas of civilisation—dear knows what he would think today if he had followed this debate over the past few months. I urge the leaders of the yes campaign to do two things in particular: first, to make a real effort to stamp out the culture of bullying and intimidation that exists not just on the internet but in Scottish public life today; and, secondly, to discuss seriously the legitimate concerns people have about the option of Scottish independence and to answer questions more factually and accurately than perhaps has been the case so far.
Those who are in favour of Scotland’s membership of the United Kingdom need to raise their game, too. In a university abroad about six months ago, I judged a debate between two teams of students, one defending Scotland’s membership of the United Kingdom and one promoting Scottish independence. Those in favour of Scotland’s membership of the United Kingdom had read all the evidence and papers—many of them produced by Her Majesty’s Government—and become so convinced of the case that they went to the pub at lunchtime, became complacent and, despite having all the arguments, lost the debate comprehensively to those who were more focused, determined and clearer about their aspirations for the future of Scotland.
In the spirit of friendship to the campaign, I want to say three things. First, united campaigns win over divided campaigns. The lessons of 1979 and 1997 in Scotland are that divided campaigns do not succeed and united campaigns win. Secondly, if the Better Together campaign to retain Scotland’s membership inside the United Kingdom is to win, it is vital that it broadens its engagement with people outside the traditional groups of political leaders who currently dominate the campaign. It must engage with those who, through the 1980s and 1990s, fought for Scottish home rule and devolution and then participated in making it successful in the early years of the new Scottish Parliament. Thirdly, and most importantly, it needs to outline a positive vision for the future of Scotland inside the United Kingdom, campaigning not to protect the union and the established order but for a new order—a reformed United Kingdom with a new Scotland actively participating within it. The choice is not between the old United Kingdom and some more autonomy for Scotland but between home rule or devolution for Scotland as it exists today within the United Kingdom and independence or a separate state. We need to clarify that choice over these coming months, not detract from it.
The United Kingdom is the most successful voluntary political union in the history of the world. Within that, Scotland has managed to secure a level of autonomy that has seen Scotland as a nation improve and develop since 1999. We have seen decades of population decline reversed. We have seen two economic shocks—not one—where the UK helped and made all the difference. The first was in the early years of devolution, when electronics manufacturing—which the noble Lord, Lord Lang, did so much to bring to Scotland in the 1980s and 1990s—moved east and left Scotland with a real crisis of employment and economic growth. We have also seen improvements in Scotland’s health—for too long it was the sick country of Europe—and a vibrancy in our culture. There have been significant, huge improvements in things such as recycling and renewables because of devolved government attention.
That is the case for devolution and home rule within the United Kingdom; it is the case for a modern Scotland inside a United Kingdom that is more diverse and celebrates that diversity. If the case is made over the coming months not for a United Kingdom that is a single state but for a United Kingdom that is made up of a whole range of cultures, histories, traditions and futures pulling together in the national interest, then I believe that the people of Scotland will make a positive choice to stay and build a better United Kingdom for future generations—one that can protect our environment, protect our security and deal with economic shocks but seize economic opportunities, too; one that can enhance our quality of life, build a fairer society and do so as part of a community of nations.
(10 years, 10 months ago)
Lords ChamberMy Lords, I thank the noble Lord, Lord Lang of Monkton, for securing this debate and for the very comprehensive way in which he introduced it. He and I have disagreed on many occasions over the past 30 years but he has always been consistent and honourable in his contribution to the public debate in Scotland and throughout the UK, and we saw that approach again today.
Like the noble Lord, I welcome the noble Baroness, Lady Goldie, to the House, and I look forward to her maiden speech. We fought a hotly contested election in 2007, when she was leader of the Scottish Conservatives and I was leader of Scottish Labour. Both she and her predecessor—the late David McLetchie, who fought nobly for devolution over many years and was a very able Member of the Scottish Parliament and leader of the Scottish Conservatives—made a real contribution to the success of devolution in those early years. I am very pleased to see her join us in this Chamber.
I cast my first vote in 1979—a yes vote for what was then called the Scottish Assembly. I remember the occasion even now, and the disappointment that I felt as an 18 year-old in casting my first vote and not succeeding in achieving devolution for Scotland at that time. I have consistently believed all my adult life that a strong, devolved Parliament within the United Kingdom for Scotland—a Parliament that was autonomous in its decision-making, had real legislative powers and provided a voice for Scotland—not only dealt with the anomalies in our British system of government but provided the best way forward for Scotland and the United Kingdom in government and in action.
In September, Scotland will vote on a different proposition. Much as I disagree with the timing and many of the rules under which the vote is taking place, I hope that it is decisive and binding for this generation, and that we can move on. As I said yesterday at Questions, I really welcome yesterday’s intervention from Mark Carney, the Governor of the Bank of England. I hope that the way in which he laid out the facts and the analysis that he wished to present will be repeated by others over the coming months. We need to move from the divisive, rather negative debate that has taken place in Scotland over recent months and years to a really well informed, high-level debate over these six months that allows people to make the right choice, and then to make a choice that we can all believe in afterwards.
I could probably speak for seven hours about this topic, but today I have seven minutes and I will stick to two points in particular. First, the choice in September is not between an independent Scotland and an unreformed, old United Kingdom. It is a choice between an independent Scotland and a reformed United Kingdom, a United Kingdom that has not just devolution in Wales and Northern Ireland and not just major reforms to many of the cities of England, but a strong, devolved and autonomous Parliament in Scotland. Despite the disagreements and reservations that I have about the policy direction of the Parliament over the past six years or so—the way in which certain decisions have been made for reasons of political posturing, such as the disgraceful decision to return Megrahi to Libya—I still absolutely believe that devolution is not only right for Scotland but has been good for Scotland, and that devolution throughout the UK has been good for the UK.
As I always expected, devolution has allowed Scotland at times to go down its own road in relation to policy and legislation. Where that has happened, yes, there have been differences between Scotland and the rest of the UK, but by and large those choices have resulted in improvements for the people of Scotland, in health, education and, particularly, the economy. When I took over as First Minister back in 2001, Scotland’s economic performance was lagging well behind the rest of the United Kingdom, and our employment position was much worse than the rest of the United Kingdom. Over a period of years, with the right policies in place, we made a difference to turn that situation around.
Secondly, the Parliament has been an opportunity for national leadership. On issues of sectarianism, for example, or on the important issue this year for Scotland of the Commonwealth Games, we have seen the country come together. The Parliament has provided a focus for people to come together in the national interest to change circumstances or to provide new opportunities.
Thirdly—this is particularly important—the Parliament in Scotland has provided an opportunity to be more creative, to try out new ideas to tackle long-term Scottish problems. I will give two examples. The first is the population decline that we experienced decade after decade. With the support of the Home Office and the Government back in the early part of the past decade, we took a different approach to in-migration. With that and other measures, we have actually seen a reversal of that long-term decline and, for many years now, year after year, an increase in Scotland’s population. The second example is in relation to the ban on smoking in public places. I know that many noble Lords were involved in that debate. The UK Government were all over the place on this issue but in Scotland we took a decision to go ahead. We have been proven to be right and that policy was then translated elsewhere in the UK. Without a Parliament in Scotland that decision would not have worked. Experiments in Scotland in the past, such as the poll tax, had not worked. That experiment did. It worked because the Parliament had the support of the people and an opportunity to show national leadership.
I think that it is very important that when we have this debate this year, we do not only address the long-term issues identified by the noble Lord, Lord Lang, today. There is also a need for the whole system of government in the UK—this Parliament in London and the other Parliaments and Assemblies of the UK—to debate what this new United Kingdom looks like, not just in relation to powers that move between different levels of government at different times, but in relation to how government is conducted here in London. What is the relationship between government at the centre and government in the devolved Assemblies and Parliaments? We must have a debate this year that ensures that people in Scotland are choosing between independence on the one side and that reformed, devolved United Kingdom, on the other, which provides real hope and the best of both worlds for Scotland.
(10 years, 10 months ago)
Lords ChamberMy Lords, as I indicated in my original Answer, there would be a process of negotiation. Obviously, laws passed by this Parliament set out the arrangements for elections and it would be a matter for Parliament to change the arrangements if it so wished. I take the first point of my noble friend’s Question. I think I say for colleagues on all sides of the House that, while we support the integrity of the United Kingdom, we should be making every effort to ensure that the eventuality of a yes vote in the independence referendum simply does not arise.
My Lords, one issue that those Members of Parliament might have to address in that eventuality would be the position in relation to the currency. Does the noble and learned Lord welcome the very thoughtful and balanced contribution to the debate on the currency in Scotland made today by the Governor of the Bank of England? Will he join me in urging others who head up our great national institutions, whether in Scotland or throughout the UK, to contribute in a similar fashion to ensure that the complexities of the decisions that are required afterwards are fully understood and that the people in Scotland have all the information they need to make the right decision?
My Lords, as the Chancellor of the Exchequer has previously said, the current arrangements of a full monetary, fiscal and political union bring benefits to all parts of the United Kingdom. I certainly have noted that the Governor of the Bank of England today has highlighted the principal difficulties of entering into a currency union—losing national sovereignty, the practical risks of financial instability and having to provide fiscal support to bail out a foreign country. That is why we have consistently said that, in the event of independence, a currency union is highly unlikely to be agreed so the Scottish Government need a plan B. I agree with the noble Lord, Lord McConnell, that people who, from experience, have an important contribution to make should make it. Indeed, this month, Better Together has published a very good pamphlet which quotes many people showing how untenable the position of the Scottish Government is on the issue of the currency.
(11 years, 9 months ago)
Lords ChamberMy Lords, in this particular case, I believe that tributes to South Lanarkshire Council are deserved. I am aware that it took those steps. I think that I am right in saying that South Lanarkshire Council also plays an important role in the Scotland-Malawi Partnership. The University of Edinburgh calculated that up to £30 million in terms of expertise, time and money is contributed by those who are partners in the Scotland-Malawi Partnership.
My Lords, is the Minister aware of the current membership of the Scotland-Malawi Partnership, which is more than 600 individuals and organisations, embodying the mutual respect that was so much embodied by Dr Livingstone back in the 19th century? Given Dr Livingstone’s campaign against the slave trade, will the Government take the opportunity this year to redouble their efforts internationally regarding the 2.5 million individuals around the world who are reckoned to be in slavery or prostitution as a result of people trafficking?
My Lords, I take the opportunity to note the contribution that the noble Lord, Lord McConnell, has made to the Scotland-Malawi Partnership. I know his personal commitment to this. I take and endorse his point that a proper tribute to Dr Livingstone’s campaigns against slavery would be for us to continue and indeed increase our efforts to tackle human trafficking. I attended a very useful meeting with a number of representatives in Scotland representing the UK Government on the day last year when we marked our commitment internationally to tackle human trafficking. That would be a worthy memorial to Dr Livingstone’s efforts.
(11 years, 11 months ago)
Lords ChamberMy Lords, when the noble and learned Lord, Lord Wallace of Tankerness, was Deputy First Minister of Scotland and I was First Minister of Scotland, there were probably times when he felt as if he was defending me against a murder charge, as described by the noble Lord, Lord Forsyth, earlier. I, too, appreciated the eloquence with which the noble and learned Lord introduced our debate this afternoon and his appreciation of devolution. I am also aware that we discuss these issues against hundreds of years of history—this month, in suppers all over the world, we will celebrate that century in which Scotland joined the union, and led the world in literature, science, engineering, philosophy and, of course, also in poetry. However, today, we debate only this order; not the outcome of a referendum and not the overall pros and cons of independence or separation.
I start my brief remarks by saying that I have believed passionately, since that 1979 referendum on devolution, that a devolved Scottish Parliament, inside the United Kingdom, is the best form of government for Scotland. I believe in shared sovereignty, which I believe we have. I also believe that despite the mistakes that have been made and will be made in the future by Scotland’s Parliament—just as this Parliament makes mistakes—Scotland is a better place today for having that devolved Parliament than it was 14 years ago.
However, we are not debating that principle today, nor the principle of independence, but the organisation of a referendum and the legal authority for it. In the 1990s and, after devolution, in the first decade of this century, I vehemently opposed the idea that there should be a referendum on independence because I believed that the uncertainty that it would create would be harmful for Scotland. However, we are in new circumstances and it is absolutely right that we now have that vote, which will decide Scotland’s future. It is time to make that decision, following the outcome of the Scottish elections last year and given the political situation in which we now find ourselves. I supported the Prime Minister last January in his announcement that he wished to see the Scottish Parliament have the legal authority to conduct a referendum and that he was prepared to enter into negotiations to secure that outcome. I supported that position enthusiastically. I thought it was the right thing to do on principle and in practice—a binding referendum is good for everyone.
However, in my view, that referendum has to be based on transparent financing and fair rules, and should have been held without delay. I made a submission to that effect to both the UK Government and the Scottish Government last March. In particular, I say again—I hope the Electoral Commission is listening—that I advocated that we should not have a single question. It is not that we should have two different questions on two different topics but that the question itself—I think the noble Lord, Lord Steel, has made this same point—should be two distinct statements, from which voters are allowed to choose: either Scotland as an independent country or Scotland as a member of the United Kingdom.
That said, we are in a different place today, and I believe strongly in the principle of respect between the United Kingdom Government here in London and the Government in Edinburgh. That agreement has to involve our being willing today to criticise the outcome of these negotiations, but also respect the fact that the Prime Minister and the First Minister have shaken hands on the deal.
I do not want to go back over all the points that have been made but, as others have said, the outcome is that the delay in this referendum will cost Scotland jobs. No one should be in any doubt about that whatever. I have met companies in the United Kingdom, North America and elsewhere that are already delaying decisions about whether to invest in Scotland. They will delay even more between now and the autumn of 2014. The way in which the UK Government agreed to the Scottish Government putting this vote off until late 2014 was a grave error by both Governments that will cost the people of Scotland and the Scottish economy dearly, not just for the next 18 months but for years to come after that.
I do not want to repeat points that were made earlier, but on the rules, an additional point is that this referendum will be divisive enough in Scotland without having rules that are perceived by one side or the other to be unfair. One can already see prominent and reasonable people in public life tearing each other apart, with relationships and friendships breaking down. This will happen increasingly over the next 18 months. To add to that any perception that the referendum is unfair or conducted with unfair rules will, in the aftermath, leave a sour taste in the mouth that will take years to overcome in Scotland, and lead to a lack of acceptance of the outcome unless it is very decisive.
I understand the point that the Government are making. The principle of devolving the legislative authority means that we will devolve the detailed decision-making as well. However I do not think it was politically impossible to strike a deal openly and transparently between all concerned in advance of this legal authority being devolved, which would have secured more details here and now. For perhaps the very first time in the 30 or so years that I have known him, the noble Lord, Lord Forsyth, and I strongly agree on that point. I suspect we will not make a habit of it. I understand that he will not press his amendments, but at the same time I think he is wrong even to suggest that we should undermine the agreement that has been reached between the Prime Minister and the First Minister.
When I was First Minister I never really had a position on whether the detailed discussions that took place between me, the Prime Minister and his colleagues should become public or not. Therefore people are perhaps not aware of when we agreed or disagreed, and when agreements were implemented or not implemented. However, there is nothing worse for those who lead Parliaments than to be in a situation in which they strike deals with other leaders but are then undermined in their negotiating position and their ability to implement it. Whatever feelings there are towards this agreement, we need to respect the fact that a deal was done, they shook hands and we now have to get on with the debate. To undermine that would leave an impression of bad faith that would be damaging for the devolution settlement as well as for the referendum campaign itself.
We should endorse the order, but we should express very clearly to the Government that the next time they negotiate with the Scottish Government, they need to negotiate much harder. However, we also need to get on with this debate. We need to make the case that, after 300 or so years—in this month when we celebrate the amazing contribution that Scotland made to the union, which we joined back in the 18th century—it is time to celebrate that and have a positive campaign. That campaign should spell out the dangers but also the hope that exists if we retain our membership of the United Kingdom and do so decisively, putting this whole debate—this division that has plagued us for decades—behind us once and for all.
My Lords, perhaps I may make three brief points. I am disappointed on two counts. It is quite right that the noble Lord, Lord Forsyth, is not taking us through the Lobby, but after his inspiring and marvellous speech, it is a disappointment to me that I cannot go through the Lobby behind him to support him. It was one of the great speeches on an issue of huge importance to us all and it has been nobly supported on this side.
It is a slight disappointment and surprise to me that no one from the Constitution Committee of this House, which has produced the report on the agreement, has come to speak in the debate. The report is in the Printed Paper Office. I shall give way to the noble Lord, Lord Crickhowell, and it is wonderful to see him. I shall not delay him for more than a few seconds.
Many of us in this Chamber, and many who are not currently in the Chamber, attended a meeting this morning by courtesy of the noble Lord, Lord Astor of Hever, and the Minister for the Armed Forces. The meeting was about defence. It was an extremely useful meeting. Many noble Lords who are here in the Chamber made extraordinarily important points. I should like to highlight two of them. One was that it would be extremely helpful if similar meetings could take place with the other great departments of state on the other issues involved. The second was that it would be a very good thing if there was more identification of leadership from No. 10 and the Prime Minister on the Better Together campaign.
I should like to draw the attention of the House to the CBI document, The Scottish Government’s Independence White Paper, which came out this week. It lists questions on all the issues to which Members of this House would want to draw attention and provides an encyclopaedic examination for the SNP and Alex Salmond. I commend the document to the House because it covers all the questions to which we seek answers. I look forward very much to hearing the noble Lord, Lord Crickhowell.
I hope that the noble Lord, Lord Wigley, will accept that the only responsibility for this situation lies with the Scottish National Party itself. Many of us have argued that there should be representation in this Chamber. In particular, I have argued that Mr George Reid, the Presiding Officer who succeeded the noble Lord, Lord Steel, and who worked with me when I was First Minister, would be an excellent Member of this Chamber. However, because he rightly feels some loyalty to his former party and that party will not put him forward, he is not sitting here. That is wrong, but the responsibility for it lies entirely with the nationalist party, which will not make that decision.
I hear what the noble Lord says. Indications that I have had from Mr George Reid may be slightly different from the interpretation that the noble Lord has given. However, I have no doubt whatever that there were those within nationalist Scotland—not necessarily even members of the SNP—who would have been willing to serve the interests of their country in this House. Be that as it may, the fact that they are not here and therefore cannot participate in this debate is unfortunate. That is why I am contributing, although I have no authority to speak on behalf of the SNP and I certainly would not presume to do so. It is not for someone from Wales to tell the Scottish people what is best for them; nor indeed is it for those from England or Northern Ireland to do so. The decision on whether Scotland should be an independent country lies with the people of Scotland and Scotland alone. I am glad that the draft order before us today arises from the Edinburgh agreement, whereby it will be the Scottish Parliament and not Westminster that determines the date, franchise, question, referendum rules and campaign spending limits. The proposed arrangements for the referendum will be initiated by the Scottish Parliament. The Electoral Commission will then have an opportunity to give its views, and those views will be duly considered by the Scottish Parliament before a final decision is taken. That is the implication of the Edinburgh agreement.
I noted one important point in today’s debate relating to Scottish servicemen based overseas. I know that there are SNP MPs and MEPs who are also actively aware of this and I very much hope that a resolution of the issue can be found.
As I understand it, the resolution in the Scottish Parliament supporting this order was passed unanimously by that Parliament. I also understand that every one of the Westminster parties supports the order. This shows how Governments can work together to achieve a sensible outcome, and I believe that it is to the credit of both the Government of Scotland and the Government of the UK that this has been achieved. It is an indication that Governments can, indeed, work together harmoniously. I have no doubt that if Scotland becomes an independent country as a result of the referendum, there will be equally harmonious co-operation between the Governments in London and Edinburgh thereafter. There has been talk today of litigation and judicial reviews but that sits a little uneasily with the type of co-operation that I have just described.
It is truly excellent that there should be such co-operation and that the referendum will be seen as “Made in Scotland”. That gives greater confidence that the outcome, whichever way it goes, will be acceptable to all the Scottish people as a democratic decision taken by the Scottish nation. I am sure that no one in this Chamber from outside Scotland would want to gainsay that or dispute the fact that this should be a decision for Scotland. To that extent, the noble Lord, Lord Reid, is quite correct that the referendum in Wales on providing further devolution is different from the question of independence and raises the question of whether referenda are really necessary for every small step of further devolution. That was not the case with the Scotland Act last year. There are, of course, implications for the rest of the United Kingdom, and no doubt these will be debated during the referendum campaign, as is right and proper. However, they are not issues that should delay the progress of the draft order before us today.
That is helpful. However, it is important to understand that there is a body of work that it ought to do, and is doing, before it publishes that advice.
The question has been raised about the franchise. As I indicated to my noble friend the Duke of Montrose, it is a matter of primary legislation for the Scottish Parliament. If it chooses to extend the franchise to 16 and 17 year-olds, issues will arise out of that; it will need to ensure that the proper protection is given to minors whose names would appear on a roll. That would be the responsibility of the Scottish Parliament in any legislation which it brings forward.
I do not believe that that is the thin end of the wedge. If only legislation passed by the Scottish Parliament was, we would have proportional representation by single transferable vote for English local authority elections, but I have not seen a great rush in the Westminster Parliament to follow the Scottish Parliament in that constitutional development
Several noble Lords, including the noble Lord, Lord Reid, my noble friends Lord Stephen and Lord Cormack, and the noble Baroness, Lady Liddell, posed an important question about the vote for service personnel. The position is that the members of the Armed Forces and their spouses or civil partners are entitled to vote in elections, provided that they are registered to vote either by means of a service declaration or as an ordinary voter. Members of the Armed Forces will be able to vote in the referendum if they are on the register in Scotland either as a result of an address in Scotland or a qualifying address showing a connection to Scotland, such as service accommodation in Scotland; an address in Scotland where they would be living if they were not in the services; or an address in Scotland where they have lived in the past. The same rules apply to spouses and civil partners of members of the Armed Forces.
On the specific point raised by the noble Baroness, Lady Liddell, service personnel who are overseas at the time of the referendum who would otherwise be eligible to vote will be able to vote by post or by proxy. I understand that the Electoral Commission and the Ministry of Defence run an annual electoral registration campaign to inform personnel and their families in units around the world about such voting matters. I will certainly talk to colleagues in the Ministry of Defence in the next round of prompting of information to ensure that they remind service personnel of the referendum.
My Lords, will the Minister check very carefully that that information campaign is timed to coincide with the period during which service personnel would require to register to qualify to vote in 2014? The timescales may well be such that they would miss deadlines. We would all appreciate an assurance that such checking will happen.
That is an important point, and I take it on board. It is also important to make clear that service declaration, to which I referred, is now valid for five years, following legislation that took effect in March 2010. Those who have already made a service declaration which gets them on to the Scottish register will have that for the five years after March 2010, so they will certainly have it for the time of the referendum.