Scotland Act 1998 (Specification of Devolved Tax) (Wild Fisheries) Order 2017

Lord McAvoy Excerpts

Wednesday 29th November 2017 Grand Committee

[The Parliamentary Under-Secretary of State, Northern Ireland Office and Scotland Office (Lord Duncan of Springbank) (Con)]

My Lords, the reason for making this order, laid before the House on 14 September 2017, is to grant the Scottish Government a limited and specific power to raise a levy on wild freshwater fisheries for the purposes of the management, conservation and sustainable development of those fisheries. The order relates to reforms being undertaken by Scottish Ministers to support the management and conservation of wild fisheries in Scotland.

The Scottish Government commissioned an independent review of wild fisheries in Scotland in 2014. One of its conclusions was that the Scottish Government should have the power to adopt appropriate management tools, including the flexibility to change the way in which income is raised for fisheries management, currently done through a fisheries assessment levy applied to salmon fisheries at a local level. Consequently, the order will give Scottish Ministers the power to make regulations imposing a levy on the owners, occupiers or users of wild fisheries, or owners or occupiers of the right to fish in wild fisheries.

The Scottish Government intend to use this power by introducing related provisions to their Wild Fisheries (Scotland) Bill that will provide Scottish Ministers with the power to set, collect and retain fishery assessment levies in circumstances where they do not approve the fishery management plan developed at a local level. The levies in question are considered by Her Majesty’s Treasury to be taxes and are, therefore, outside the legislative competence of the Scottish Parliament.

In order to introduce a Bill into the Scottish Parliament with provisions on tax, the Scottish Government require an amendment to be made to Part 4A of the Scotland Act 1998. An Order in Council, under Section 80B of the 1998 Act, is the mechanism through which Her Majesty may amend Part 4A so as to specify an additional devolved tax.

We have agreed to devolve this power on the basis that it will be applied only to a levy in respect of the conservation and management of freshwater fisheries. This will not have a significant impact on businesses in other parts of the UK, but we consider that this measure will support the UK Government’s ability to meet their international conservation commitments. I beg to move.

[Lord McAvoy (Lab)]

My Lords, again, I thank the Minister for his full explanation of the order. As we have heard, it would provide legislative competence for the Scottish Parliament to bring forward provisions on specific taxes relating to wild fisheries in Scotland.

The order will amend Part 4A of the Scotland Act 1998 to provide that taxes on specified persons to fund expenditure on the conservation of freshwater fish and their habitats, and the management or regulation of wild fisheries, are to be devolved taxes. The Scottish Government commissioned an independent review of wild fisheries in 2014 to consider how this magnificent Scottish resource can be protected and managed sustainably into the future.

The order will allow for an intended wild fisheries Bill to be brought before the Scottish Parliament to include powers for the Scottish Government to raise levies on the owners, occupiers or users of wild fisheries if they deem it necessary in the future. These provisions have been approved by HM Treasury, the Department for Environment, Food and Rural Affairs, and members of the cross-party Environment, Climate Change and Land Reform Committee in the Scottish Parliament. We are content to support the order so that these issues can be scrutinised fully in the Scottish Parliament.

I ask the Minister: what consultation are his Government undertaking with Scottish Ministers to ensure that the package of reforms undertaken on these natural resources in Scotland either do not materially affect or are beneficial to wider conservation and natural planning efforts across the whole of the UK? We hope that the Scottish Government will work with members of all parties in Scotland to ensure a sustainable future for these natural resources and for communities right across Scotland.

[Lord Steel of Aikwood (LD)]

My Lords, I suppose I should begin, like everybody else, by sucking up to the Deputy Chairman and the Minister and saying how pleasant it is to be here with them. I do not remember this ever happening in this Room before, but the House of Lords exists to be pleasant and I am delighted to join in welcoming them here. In fact, a few moments ago the noble Lord, Lord Foulkes, made a quite gratuitous and kindly reference to me, no doubt anticipating that I might give him support if there were a vote. In fact, I would not have done, but nevertheless the atmosphere of pleasantry is something I am happy to continue.

I have a purely personal interest in this matter, in that I fish occasionally on the Tweed and more regularly on a loch in the Scottish Borders, which I will return to in a moment. I think the Minister will agree that this order is somewhat unusual in that it is predicated on a Scottish Parliament Bill that we have not yet seen. That makes it a little difficult to understand but none the less, in principle, we will support it. That is presumably why the Sewel convention does not apply in this case, because it is bestowing more powers on the Scottish Parliament under the Scotland Act. Like the noble Lord, Lord McAvoy, I would like to hear a little more about the consultation that the Minister has had with colleagues in the Scottish Government about how this is going to operate.

I have two questions about the order. The first relates to the amendment of Chapter 7 of the Scotland Act, on page 2 of the order. It states:

“This subsection applies to taxes on the … occupiers ... of the right to fish in wild fisheries”.


I operate a syndicate on a loch in the Scottish Borders. One of the members of the syndicate is the former sheriff, who will certainly be breathing down my neck if we do not get this right. Does that mean that when I pay, as I do, a handsome sum to His Grace the Duke of Buccleuch for the right to fish on his loch, that makes me an occupier of the right to fish in the waters? In other words, am I, in supporting this order, liable to find myself subject to taxation in future?

My second question is one that I anticipate my noble friend Lord Beith is about to ask. Fisheries in Scotland are governed under legislation that was passed way back in the 1950s. In the case of the Tweed, Scottish legislation covers the south bank; in other words, people operating in England are subject to Scots law in this peculiar circumstance. I wonder whether this order applies to them as well.