Smith Commission: Implementation

Lord Wallace of Tankerness Excerpts

Monday 8th June 2015 Lords Chamber

[Lord Dunlop]

My Lords, I am not sure exactly where the SNP stands now on full fiscal autonomy. Its position seems to change by the day but I am absolutely clear, and the Government are clear, that full fiscal autonomy would be bad for Scotland. By the end of this Parliament, it would leave a £10 billion funding gap that would have to be addressed by higher taxes or larger spending cuts in Scotland. The noble Lord is absolutely right that one of the benefits of being part of the UK is that which comes from pooling and sharing resources, so that public expenditure remains relatively stable when revenue flows such as oil and gas are so volatile.

[Lord Wallace of Tankerness (LD)]

My Lords, I welcome the fact that the Government are honouring their commitment to bring in a Bill to deliver the Smith commission proposals. However, does the Minister accept that when responding to the request of the First Minister of Wales for a constitutional convention before the referendum, the Prime Minister accepted that there would need to be an open, involved and comprehensive conversation about the kind of union we want to see and that, 15 years after the process of devolution started, we should consider the best way to go about doing so? What consideration are the Prime Minister and the Government giving to that very necessary constitutional convention?