Scotland: Devolution

Lord Foulkes of Cumnock Excerpts

Wednesday 29th October 2014 Lords Chamber

[Lord Lennie (Lab) (Maiden Speech)]

My Lords, I speak for the first time in your Lordships’ House and do so with a degree of humility, nervousness and some trepidation. My particular fear is that this piece of prompt technology will fail part the way through what I have to say. If it does, I have no doubt that someone will rush from somewhere to my aid, which has been my experience thus far in this House at every turn, or every wrong turn, that I have taken. I pay tribute to all the staff, officers and Members of this House on all sides who have been generous and kind, and have welcomed me here. I also thank my two supporters, my noble friend Lady Armstrong and my noble and learned friend Lord Falconer, who is unable to be here today—I will come to that in a minute—for doing me the great honour of introducing me to the House on Monday. Both have been my friends and political allies for many years and I hope will be for many more years to come.

With regard to my noble and learned friend Lord Falconer, I have an important leak to reveal to the House. A confidential source has revealed to me that he has been approached by a leading publisher to write a book. The working title is “The Ten Apples and Ten Cokes a Day Diet”.

[Lord Foulkes of Cumnock (Lab)]

I could do with that.

[Lord Lennie]

Noble Lords may have seen some pre-publicity about this in the Sunday Times this week. It was not just a puff piece—it was a strategically placed article. The plan is to publish this as a pre-Christmas stocking filler. The problem with the plan is, of course, that my noble and learned friend Lord Falconer, subject to his successful diet, can no longer fill a stocking, so the plans are somewhat in disarray as far as publication is concerned.

I start my comments about devolution. I am somewhat unusual in this House in that I have experience of an English region rejecting devolution of power. A decade ago, as my noble friend Lord Prescott has said, the north-east chose by a large margin not to accept my party’s kind offer of a regional assembly. At that time I was the Labour Party director in the north of England. It is often said that we are shaped by our experiences. Having to explain the north-east rejection to my noble friend Lord Prescott certainly helped shape me.

Despite that defeat, I believed then, and I believe now, that there is an appetite for devolution of government in order that we improve lives, or seek to improve lives, and increase opportunities across England. For devolution to succeed, however, we must understand the reasons for its past failure in terms of what happened in the north-east. There was a disconnect between politics and people. That fundamentally explained the rejection of the regional assembly. The opponents simply asked voters whether they wanted more politicians at more cost, meddling more in their lives. The answer was a resounding no, thank you very much.

I suspect that the climate for politics is less favourable today than it was then. I may be wrong, but that is my suspicion. For devolution to succeed, the distance and disconnect between politicians and voters has to be narrowed, not just here at Westminster but in councils too. After all, an out-of-touch political elite is equally offputting, whether clad in ermine or mayoral robes.

Devolution must not be something that politicians want to do to voters, but a change delivered with, by and for the people. Proposals bringing this devolution to English regions and cities must be judged not by how they solve the problems for political parties but by how they will make things better for citizens in every region of the country. There needs to be a convincing argument that devolution means government done at lower cost, with clear, tangible benefits to the electorate at large. That is a huge challenge.

How do we go about this? First, devolution in England needs to be considered purely on its own merits. Otherwise, voters will see English devolution proposals as the unforeseen or unintended consequence of the Scottish referendum. They will see politicians trying to apply a fix to a problem they themselves created.

Further, we need to be clear that English devolution and English votes for English laws—EVEL—are not the same issue. Today we have a hugely centralised English government; changing who votes on which legislation may be a good thing or a bad thing in reflecting an English will, but it devolves little power. It cuts no costs. It makes the delivery of government policy no more streamlined than before. If we want devolution, we surely have to look beyond the question of who votes in Westminster. That means that we must devolve the process of devolution. It is easy to say that you are in favour of devolution, but if your deeds undermine your words, you will fail to impress voters who you want to support your proposals.

We must reach beyond politics and ensure that whatever we put before the English voters commands public support from a broad consensus of civic society, who can then seek to reassure those who are suspicious of politics—and I believe that they are currently the many, not the few.

Finally, I would like to say that I chose the title of Longsands Tynemouth. It was featured in a photograph in the Times last Friday; your Lordships may have seen it. It is where I live; it is worth a visit; and if you go there, go to the wonderful beach bar, Crusoe’s. It is where I spend much of my family time.

My home region, the north-east, is engaged and energetic and sceptical of easy promises. Those are qualities that I shall endeavour to replicate to the best of my ability. It is an honour beyond measure to be one of those of all parties and none who will speak up for my region in your Lordships’ House.

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[Lord McConnell of Glenscorrodale (Lab)]

My 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.

[Lord Foulkes of Cumnock]

Does my noble friend not agree that there have been some problems in Holyrood just as much as in Westminster?

[Lord McConnell of Glenscorrodale]

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.

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[Lord Foulkes of Cumnock]

My Lords, I am pleased to follow the noble Lord, Lord Dobbs, in spite of what he said. I hope that he will forgive me if I return to the opening speech by the noble Baroness, the Leader of the House, for whom I have the greatest of respect. I fear that in parts of her speech she gave away the fact that Whitehall seems to have learnt nothing from the referendum. I do not think that she and Whitehall realise how near to disaster we were. We were at the edge of a precipice and we nearly went over it. We only avoided it because, thankfully, the silent majority in Scotland saw what was at the bottom of the precipice and came back and voted no. Otherwise we would have gone over that precipice, with all of the United Kingdom’s institutions behind us, into total disaster. We really need to learn from that. This was a vote against separation, it was not a vote for the status quo. Paradoxically, the losing side are energised by what has happened and we, the winners—2 million of us—have been forced to come back, like King Edward, to think again. If we do not come up with a sensible, credible and, above all, stable alternative, we will be back to the precipice sooner rather than later. We must find a long-term solution.

I will look carefully at two aspects. First, on Scotland and the Smith commission, I agree with my noble friend Lord McConnell. Its decisions I hope will be based on principles and not on party horse-trading. Two key principles are that the powers to be devolved should be devolved for a purpose, that is sensible and appropriate to be carried out at the Scottish level, benefiting the Scots but not harming citizens of the United Kingdom; and that we need not what the nationalists call full fiscal economy, but what I call fiscal responsibility. As others have said, we should devise a way for them to be responsible for raising the money that they spend. That will not be easy. Some have pointed to the difficulties and others have pointed to the way forward. Surely with all the expertise that we have in the Treasury and elsewhere, something can be worked out. I look forward to the third Scotland Act. This is becoming a Shakespearean drama—but I must not go down that line or we will end up with “Macbeth”, and we all know how that ended: not very well.

We must also look at the English democratic deficit. Not the West Lothian question; the English democratic deficit. I remind noble Lords that before devolution, when we had peculiarly Scottish legislation decided here at Westminster, it was voted on for nearly 300 years by a large majority of English MPs. If we can thole that for 300 years, surely the English can thole the problem for a few months or years more. To try to solve it by changes to the Standing Orders—as others have said, creating two classes of MPs—is the wrong way of going about it. Others have said, and noble Lords have heard me say time and again in this Chamber, that we need a coherent and comprehensive look at our constitution through a convention or a royal commission. I think that we should move towards a federal, or quasi-federal, system. I said this when the Liberals were being quiet about their policy. I am not saying that there should be an English Parliament, or English regions, or a bit of both; that is for the commission to decide, as it consults widely and listens to people.

I am pleased that the noble Lords, Lord Maclennan and Lord Hennessy, in their excellent contributions, said the same thing—if the three party leaders can come up with a vow overnight, surely they can come up with an agreement in a week to set up a constitutional commission. It could be up and running now. That would make the English feel happier that we are addressing the question and we are under way. I hope that each of us, in our own party, will try to twist the arms of our leaders. I have been twisting the arm of my noble friend Lady Royall—she made a brilliant speech, all of which I agree with—that the Labour Party should go ahead with this and encourage the other parties to go ahead with it as soon as possible.

Such a convention could and should also look at the reform of this place and move towards what Ed Miliband described at the party conference as,

“a senate of the nations and regions”—

SONAR. I like the French system of choosing the senate, where grands électeurs—all the elected representatives in each of the départements—choose their senators. There are many other suggestions that can be put to the constitutional commission.

No one supported the status quo in the referendum. I did not hear anyone argue in favour of that. Unless we heed the call and realise the disaster that has been avoided, we will find ourselves facing another referendum. I hope that I will not shock my noble friend Lady Liddell of Coatdyke, the Secretary of State emeritus, but if we do face that, and if there have been no changes at the United Kingdom level, even I would be tempted to vote yes in that referendum. That is an indication of the problem that we face. We should all be warned that we need to change. We need radical change. The status quo is not an option.

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[Lord Wallace of Tankerness]

I was coming on to the question of English votes for English laws. I do not believe that English votes for English laws is an answer to the whole question of devolution within England; I think that that point is accepted. As my noble friend Lord Tope said, it is not a question of if—it must be a question of how. Moving on to the point raised by the noble Lord, Lord Blencathra, and numerous contributors to the debate with regard to English votes for English laws, I was going to say, “Over the last few weeks,” but my noble friend Lord Macgregor reminded us that the issue was live when he entered the House of Commons in 1974 and my noble friend Lord Lexden reminded us that it was live when Mr Gladstone and Joseph Chamberlain were in the House of Commons. This matter has generated debate and questions for well over a century. The welcome transfer of powers to Scotland, Wales, Northern Ireland and the London Assembly, and the prospect of further devolution have created not just an anomaly but a complex one. The asymmetric devolution of powers to these bodies makes the issue of which MPs’ constituents are affected by which laws a highly varied one. It is not a simple question with an easy answer, but we nevertheless should seek an answer, as my noble friend Lord Macgregor said. It is a question of fairness.

Each of the three main UK parties in the United Kingdom Parliament has expressed its views on the West Lothian question. This House has considered the issue. We have had the views of the McKay commission and reports such that of the democracy taskforce. My right honourable friend David Laws has noted that a grand committee should be appointed proportionately to vet laws that will apply only in England, joined by Welsh MPs when matters affecting Wales are debated.

The noble Lord, Lord Elis-Thomas, mentioned that Bills have a territorial extent. I know that my own Office of the Advocate General looks at all Bills with regard to whether legislative consent Motions will be required in Scotland. It can be complex. The Marine and Coastal Access Bill in which I took part is an example that was referred to by my noble friend Lord Greaves. Although my noble friend Lord Blencathra said that it could be relatively easy, I remember when the legislation was going through the House of Commons with regard to the increase of tuition fees under the Labour Government. When that passed, I was the Minister with responsibility for higher education in Scotland and I knew full well that that had far-reaching consequences for Scotland, which led to the Further and Higher Education (Scotland) Act 2005. It is not always easy. This matter deserves careful consideration.

[Lord Foulkes of Cumnock]

The noble and learned Lord is absolutely right. Will he deal with the point that I raised that, for more than 300 years, until 1999, all Scottish legislation—on education, on health and on the legal system—was dealt with by this Parliament by a majority of English, Welsh and Northern Irish Members?

[Lord Wallace of Tankerness]

The noble Lord is right. That was one of the reasons we established the Scottish Parliament. It is a matter which I think ought to be addressed—and far better that it be addressed where there is cross-party working and consensus-forming. That was the basis on which we established the devolved Administrations, and I do hope we can work on a cross-party basis to address this important issue as well.