(13 years, 5 months ago)
Commons ChamberI am interested in what the Minister says about having the same rules across an economic single market. By that logic, is he arguing that this should be not a UK competence, but a European competence across the single market in which we all live?
I understand where the hon. Gentleman is coming from, and his party’s position in relation to matters European, which, as I understand it, would have Scotland as a member of the euro, which I steadfastly disagree with.
The Law Society of Scotland reported in its evidence to the commission that, because of the increased number of insolvencies of groups of companies, practitioners have for a number of years been having difficulties where parts of the group are subject to the English rules and part to the Scottish rules. The Calman commission was persuaded that a consistent approach should be taken to winding up rules, and the UK Government agree. The commission recognised that its first option for implementing its recommendation—UK legislation followed by a legislative consent motion—might not be achievable, so it suggested primary legislation amending the devolution settlement as an alternative means of securing the desired effect. The first option would not fully and effectively transfer legislative and Executive competence in this area, and that could result in continuing divergences in the rules. That would frustrate the objective expressed by the Calman commission, which is why we are adopting the second of the commission’s options and re-reserving the winding up of business associations in its entirety.
Schedule 2 is introduced by clause 12. Having just one Parliament responsible for the rules relating to winding up in Scotland will aid flexibility and responsiveness, and address problems that have been reported by insolvency office holders when the law changed in one jurisdiction but not the other. In fact, we are seizing the opportunity that the Bill provides to deliver for Scotland the benefits of modernisation changes, some of which have been in place in England and Wales—and for the existing reserved insolvency procedures in Scotland—for nearly two years. These changes lift administrative burdens by allowing insolvency office holders to make full use of advances in information technology made over the past quarter of a century to communicate with creditors, thus reducing the costs—for the benefit of creditors.
The changes were made to reserved insolvency procedures in Scotland in 2009 and 2010 by a combination of legislative reform orders and subordinate legislation, but because of the division of responsibility for rules between the UK and Scottish Parliaments the changes could not at that time be extended to windings up taking place in Scotland. That is an example of some of the unnecessary and confusing divergences that have developed between the two jurisdictions about which the Calman commission expressed concern. We are taking steps to address that concern and thereby ensure that creditors of windings up taking place in Scotland are able to enjoy similar benefits to those provided for creditors of windings up in England and Wales.
I wish to deal specifically with the points raised about registered social landlords. In that context, I fully agreed with the appraisal of the hon. Member for Linlithgow and East Falkirk (Michael Connarty) of the contribution of the hon. Member for Banff and Buchan (Dr Whiteford). I accept that she has legitimate concerns, which she raised in the Scottish Affairs Committee. As part of my appearance before that Committee, I undertook to meet representatives of the Scottish Federation of Housing Associations. I am pleased to report to this Committee, as I have done to the Scottish Affairs Committee, that that meeting has taken place and we were able to have a full discussion about these concerns.
The first and most important point is that no change to the Housing (Scotland) Act 2010 will be brought about by these measures. They will not change the provisions of that Act or the regime and regulator that were put in place; they will not change the insolvency processes envisaged by that Act. Part of the concern appeared to be about what happened if the insolvency procedures put in place by that Act did not work and had to be changed, and whether this House would be as responsive in dealing with those concerns as the Scottish Parliament. I know that the hon. Lady has a fundamental view about the balance between the former and the latter. However the experience of not just this Government, but the previous one, when the hon. Member for Glasgow North (Ann McKechin) was in the Scotland Office and the hon. Member for Rutherglen and Hamilton West (Tom Greatrex) was aiding her, suggests that the UK Government have demonstrated a willingness to support the legislative intentions of the Scottish Parliament. The Insolvency Service is held in particular regard for the measures it has brought forward to modernise insolvency practice in areas for which it has responsibility in Scotland and, indeed, in England and Wales. I am pleased to report that the Insolvency Service will meet the Scottish Federation of Housing Associations at the beginning of April to discuss any specific ongoing concerns that might still exist.
(13 years, 7 months ago)
Commons ChamberUnfortunately for the hon. Gentleman, he will have to pay the Scottish rate of income tax. Parliamentarians are obliged to pay it regardless of where their main home might be.
As I was saying, the new powers will give Scottish Ministers and the Scottish Parliament a much more significant stake in the performance of the Scottish economy. The level of the Scottish rate will be Scotland’s to decide, and those who set the rates will answer directly to those affected by them. Power will rest with the Scottish people. In addition to income tax, the Scotland Bill will devolve to the Scottish Parliament responsibility for stamp duty land tax and landfill tax. That will complement its policy responsibilities for housing, planning and the environment. The Bill will also allow the Scottish Parliament to propose new devolved taxes, to sit alongside the other powers. However, the fiscal powers are not limited just to tax; they extend to borrowing powers, too. The Bill will allow Scottish Ministers to borrow up to £500 million for current spending when tax receipts fall short of those forecast.
Will the Secretary of State confirm that the UK Government are currently negotiating with the Northern Irish Government about the devolution of corporation tax powers to Northern Ireland? Why would a UK Government consider that appropriate for Northern Ireland but not for Scotland?
I would not characterise those discussions as negotiations per se, but people have certainly been raising possibilities in connection with what taxes might be suitable for other parts of the United Kingdom. As I have said, our proposals in the Bill are founded on careful consideration, and on impressive and important academic research that made it clear that if we wish to preserve the United Kingdom—I understand that the hon. Gentleman does not—we should ensure that, in increasing accountability in Scotland, we focus on income tax rather than corporation tax, and I am satisfied with that.
The hon. Gentleman is making an important point about the aspirations of the Scottish people. He also made an important point about the financial position. Is he arguing that £800 million—or a similar figure, whatever it might be—was spent in Scotland over the past decade and that, had the provisions of the Bill already been in place, it would not have been spent in Scotland? If that is his argument, where did that money come from?
As my hon. Friend has just said, it came from Scottish taxpayers. I am grateful to the hon. Lady for asking that question, because that is exactly what would have happened: we would have been deprived of that budget if these proposals had been in place. That is why we are saying that they are so dangerous, and why they should be considered once again.
When the 1998 Scotland Bill went through, the then Labour Government were prepared to accept only one amendment. It related to the devolution of the regulation of stage hypnotists. I am sure that stage hypnotists were delighted that they were going to be regulated from Scotland. As we take this Bill through the House, let us try to do a bit better than that. The fact that we are having this debate at all shows that we are on a journey down the road of constitutional reform. We will be having the debate in the run-up to May this year, and I know where I want it to conclude. We have the opportunity to strengthen the Bill.
(13 years, 7 months ago)
Commons ChamberFirst, I agree with my hon. Friend about the importance of Aberdeen and the regional economy not just for Scotland but for the UK as a whole. He is right to emphasise that. I met senior business leaders in Aberdeen only a few weeks ago, and we discussed how they could develop growth. Broadband is an important part of that, and he will be aware of our plans to speed up the introduction of superfast broadband. I would be delighted to meet him to discuss the matter further.
I associate myself and my colleagues with the condolences in relation to Phil Gallie’s death.
Does the Secretary of State understand that thousands of individuals and businesses the length and breadth of Scotland are suffering because of rocketing fuel prices?
I recognise that the increase in fuel prices is a real challenge for individuals and businesses, which is why the Government are looking carefully at ways in which we can tackle that issue, including proposals for a fuel duty stabiliser.
Two years ago the Liberal Democrats promised a rural fuel duty derogation. What specific action have the UK Government taken with the European authorities to secure that? Specifically, has a formal request been made to the European Commission to make it possible?
Referring to the hon. Gentleman’s earlier point, it is important for Scotland and the whole UK to get a fuel duty regime that reflects the challenges that exist, particularly in rural parts of the country. On the derogation specifically, he will be aware that the Government are working very hard to ensure that we can get the right processes in place in Europe, so that we get the pilot up and running as quickly as possible.
(13 years, 8 months ago)
Commons ChamberMy hon. Friend makes some interesting observations. I can confirm that the Scotland Bill, if enacted, will provide exactly what he asks for. It will empower the Scottish Parliament, increase its financial accountability and secure Scotland’s place in the United Kingdom.
Where the Scotland Bill makes a real difference to the lives of people in Scotland and to the Scottish economy, it will have the support of the SNP. During the passage of the legislation in this House, will the Secretary of State and his Tory colleagues accept improvements that will deliver additional powers that will give the Scottish economy a competitive advantage?
I welcome the hon. Gentleman’s initial comments. As he is aware, the Bill introduced yesterday and the Command Paper that goes with it are the result of the work not just of the Conservative party and the Liberal Democrats but of the Labour party and others across Scotland. I hope that we will get proper engagement. I am confident that the measures in the Bill get the balance right for Scotland. They are right for this time and I am sure that they will pass the test of time.
The Secretary of State knows that many of Scotland’s leading businessmen and women issued a statement this week, in which they said that there must be
“real economic levers to help sustain recovery and grow the economy.”
Will the Secretary of State and his Tory colleagues reconsider their plans and consider improvements to the legislation, such as devolving corporation tax to help business grow?
I listen carefully to a range of opinion from business and elsewhere about the future of Scotland’s—
(13 years, 10 months ago)
Commons ChamberMay I reassure the hon. Gentleman that his fears about political machinations are ill founded? I can confirm, however, that, in response to a request from the Scottish Government, flexibility was given to transfer some of the in-year savings from the current financial year to future years. It is for the Scottish Government to respond to, and make decisions on, such matters, and they are accountable for the spending choices they will make for the next four years.
The UK Government have known for months the social and economic consequences of defence cuts in Scotland, so will the Secretary of State confirm what specific resources were allocated as part of the comprehensive spending review to mitigate the effects of base closures?
I welcomed the opportunity to meet the hon. Gentleman in Moray last week. I recognise that the decisions taken in the defence review following an overall assessment of Britain’s national security needs have not been good for him and his constituents, and I appreciate that there is a lot of concern about the future. I repeat today what I said in Moray: I am happy to work with the hon. Gentleman to ensure we work through the consequences of this.
So, one week after the closure announcement, is the Secretary of State confirming to the House today that no specific resources have been put in place and that the UK Government are providing no support on the ground in places such as Moray?
My hon. Friend makes an extremely good point. My council does exactly the same thing: it shares a chief executive, and soon more of the management team, with a neighbouring council. All councils can look at that. Frankly, it is not just councils—police forces and other organisations can look at shared services to drive down costs, so that we make sure we focus on the front line. Those are some of the reforms we need, to make sure that at a time of tight budgets we keep the good services we want.
In a few weeks’ time, the Prime Minister will decide whether he will close RAF Lossiemouth, in addition to closing RAF Kinloss, which would lead to the biggest loss of jobs in Scotland since the Tories closed manufacturing industry in the 1980s. As a consequence, that would mean that Scotland would have fewer service personnel, fewer military bases, aircraft, vessels and Army battalions and less defence spending than all our independent Scandinavian neighbours of comparable size. Will the Prime Minister explain why he is concentrating defence spending in the south and cutting defence spending disproportionately in Scotland?
We are going ahead with the aircraft carriers, which are being built in Scotland. I have to say to the hon. Gentleman that if we had an independent Scotland, he would not be flying planes but flying by the seat of his pants.
(14 years, 1 month ago)
Commons ChamberAcross the United Kingdom we inherited a huge deficit in the public finances, which we have to tackle. If we do not, it will not be in just the private sector but the public sector where difficulties will arise.
Recent economic indicators show that the recession in Scotland has been shorter and shallower than in the rest of the UK, but the recovery is fragile. Does the Secretary of State therefore agree that the case for proper financial responsibility in Scotland to help drive economic growth makes sense?
I quite accept the underlying figures that the hon. Gentleman refers to, and the situation in Scotland and in the whole of the UK is indeed challenging. However, as far as future financial accountability and other issues in Scotland are concerned, we believe that the Calman proposals, which we will bring forward in this House, offer the best way forward.
Professor Andrew Hughes Hallett, who advised the Calman commission, says that proper fiscal responsibility could significantly add to Scotland’s GDP. Is the Secretary of State looking closely at the proposals for growth and not just at a funding mechanism, which will not achieve that?