Scotland Bill

Michael Connarty Excerpts

Monday 7th March 2011 Commons Chamber

[Pete Wishart]

I am more than happy to acknowledge that Ron Gould was not right about everything, but I think most Members accepted the broad thrust of his report’s recommendations in respect of the structural problems that arose in the 2007 election. One of his recommendations was that all responsibilities for elections should lie in one House, and he gave the strongest possible hint that that should be the Scottish Parliament. Our new clause 5 proposes precisely that. It brings together all aspects of electoral administration and legislative competence and places them with the Scottish Parliament, which is where they should be. We believe that that is the case not only because about 140,000 people lost their votes in 2007, but because it is the normal way of things. Any self-respecting Parliament should be in charge of its electoral arrangements. With election to office comes accountability, and we strongly believe that all arrangements to do with elections should be the responsibility of the Parliament that has been elected on the basis of those arrangements.

I accept that the Bill’s proposals represent an improvement on current arrangements. I welcome the fact that it devolves certain administrative functions to Scottish Ministers—indeed, I welcome any transfer of powers to the Scottish Parliament—but it does not even devolve all aspects of electoral administration, as recommended by the Calman commission. That would still give the Secretary of State powers over voter registration, the rules on the composition of Parliament, the procedure for filling any regional seat vacancy during the life of the Parliament, and rules relating to disqualification.

Scottish Ministers would still need to approach the UK Government if primary legislation were required on the date of elections, for example, or even on the voting system, which is an issue that I know greatly exercises many Labour Back Benchers. The Scottish Parliament’s role would also be limited to approving or disapproving rules made by Scottish Ministers, and it would have no opportunity to shape them through its own primary legislation. Furthermore, the Bill would require that Scottish Ministers must consult the Secretary of State before making any of these rules.

[Michael Connarty (Linlithgow and East Falkirk) (Lab)]

The hon. Gentleman has said something that jarred with the logic of his argument. He is obviously speaking about an independent country that has its own Parliament when he says that the Parliament should decide the electoral system. Does he not accept that as this Westminster Parliament is sovereign, it is right that we decided the system—although I do not agree with it, in particular the additional Members who were added instead of bringing the numbers down to the figure proposed in the first Bill? Does he not accept that it is right that this sovereign Parliament should decide how people are elected to the devolved Parliament, as the reality is that we do not have an independent Parliament in Scotland?

[Pete Wishart]

Of course the hon. Gentleman and I differ as to how we would like this whole process to develop and the sort of Scotland we would like in the future, but my view is still very much that any self-respecting Parliament worthy of that name must be responsible for its own arrangements. That is just how things are done, and I believe the Scottish Parliament should have that responsibility.

--- Later in debate ---

[Mrs McGuire]

I am not into the Simon Cowell approach to voting. Some of our younger colleagues who entered the House at the last election might see that in the future, but I do not have as much confidence in voting by mobile phone as the hon. Gentleman may have. We must make it as easy and straightforward as possible for people in varying circumstances to cast their vote. That is why the extension of postal voting has been such a welcome addition.

We should consider seriously the way in which the House wants to see its elections and the count of those ballots conducted. I would be disappointed if we based all our analysis on the situation that arose four years ago. It was an unusual situation. There was a coincidence of circumstances which made the count difficult. If the Government are serious about achieving consensus on a major constitutional issue, I hope they will not just rely on the good will of electoral returning officers, but take account of the will of the House, which is, I hope, to count our ballots overnight for the Scottish Parliament elections.

[Michael Connarty]

It strikes me that all political parties are like Simon Cowell—they want the person they own to win whatever campaign they are involved in, so we have a vested interest, although I would not go as far as the hon. Member for Na h-Eileanan an Iar (Mr MacNeil) might go.

My right hon. Friend the Member for Stirling (Mrs McGuire) was right about the myths regarding the errors of 2007, as if it was all down to the ineptitude of the Scotland Office at the time, or of the returning officers. It is clear that the complication in 2007 was the counting of two ballots for two different purposes on two different mandates, combined with the construction of a ballot paper that did not make sense to the elector and clearly, in the count that I watched at great length until I retired to bed at about 4 am, was not fully understood by the returning officer in my area.

[Mr MacNeil]

To be clear, by electronic voting I do not mean the Simon Cowell, light entertainment version, but the serious version used in many countries around the world.

[Michael Connarty]

I know a little about that, as my son lives in Australia, which has a totally electronically registered electorate who all must register and vote. He travels a great deal all over Australia with his job and finds absolutely no difficulty in voting, because he can pop into any electoral office in any town at any time up to three weeks before a ballot and cast his vote for the area in which he lives, so it is a very sensible system. It is surprising that we have not caught up with the technology. It would certainly be a great advantage if we did, as that might engage people much more in the ballot.

The idea that we had a problem because we counted overnight is wrong. Although those of us who soldiered on might not have been quite as excited by the process as my hon. Friend the hon. Member for Glasgow South West (Mr Davidson), it was clear to us that the muddle was created by there being two ballot papers. The other question relates to the training of returning officers, because I do not think that the returning officer I watched was competent enough to deal with the ballot, and some crazy errors occurred. For example, he did not tell a candidate who had lost in a council election going on at the same time that he had lost by one vote. The candidate did not discover that until the next day and so was not allowed a recount. Whether that was the result of incompetence, or just the fact that the returning officer was so fatigued that he wanted to get home to his bed and not have another recount in that crazy system running parallel to the Scottish election is another problem.

The hon. Member for Perth and North Perthshire (Pete Wishart) seemed to argue that at whichever level an election takes place—Scottish Parliament level or UK Parliament level—that level should have control over its own type of ballot. By that argument, local councils would be put in charge of their elections and allowed to decide all the things that have been argued for, including exactly who would be elected, how they would be elected and what the franchise would be. That is a nonsense. Presumably for Scottish Parliament elections it would be the First Minister who decides, certainly in the present Scottish Government, as only one person seems to make all the decisions in that Government. Those aspects must be determined by the level above that being elected. For example, the Scottish Parliament, quite correctly, controls the methodology for local elections, just as this sovereign Parliament, which set up the Scottish Parliament, should decide if it wishes to change that, possibly in negotiations. That is not saying that there is not a dialogue to be held, but the idea of putting it down does not make much sense.

Therefore, I support the amendment. As my right hon. Friend the Member for Stirling said, the important point is that when people put their ballot papers in the ballot box, they expect it to be transported securely to the place where they are to be counted. One of the reasons why that was set up for UK elections was to let people know that ballot boxes are not stored somewhere else where they might be tampered with, so there is no split between the process of voting and the process of counting. To push that back to the next day is to add to people’s cynicism about how elections are conducted and how the count comes out.

It is clear to me that the lesson we should learn from 2007 is that we should not have two counts on the same evening. Therefore, we should not have the two processes of electing representatives and choosing the method of election at the same time. That argues strongly against the Government’s proposal to have a referendum on a voting system on the same day as the Scottish elections, because that is asking people to postpone the count for the electoral amendment to the next day. It might be fine, because I think that it will be the great yawn of the century—I can just see people getting as excited as my hon. Friend the Member for Glasgow North about exactly what little deviation in the electoral system they will be allowed in the process of choosing which system to use.

[Mr Davidson]

Will my hon. Friend give way?

[Michael Connarty]

I have startled him into an intervention.

[Mr Davidson]

My constituency is Glasgow South West.

That was not a deviation. Was it not a major result? One of the country’s governing parties came not even second in a by-election, and not even third. If I remember correctly, it was not even fourth or fifth. [Laughter.] It is indeed laughable that it came sixth. I believe that it beat the Loonies, but only barely because there was some blurring at the edges. Is that not worth being excited about?

[Michael Connarty]

Obviously, my hon. Friend is the Member for Glasgow South West, and I do apologise to my hon. Friend the Member for Glasgow North (Ann McKechin), who has offices across the corridor from me. I should really remember that.

A change to AV would not have helped the Liberal Democrats in that election, and any such change will probably not help them in the future, either. The point that I am trying to make is a very serious one, however. To have two different ballots, a referendum on a voting system and a vote for an elected chamber, is to mix up the purpose and focus of the electorate on that day, but that might be the reason behind it all. The possibility of not coming sixth and getting a few votes as the minor party in the coalition might be the reason for holding the two ballots on the same day, but that certainly argues for splitting the process. In the proposals before us, we say that the count for the Scottish Parliament should take place overnight, which is quite correct—and basically no one really cares what happens to the referendum.

--- Later in debate ---

[Pete Wishart]

Doing things differently in Scotland from the rest of the United Kingdom is what we call devolution, and I say to the hon. Member for The Cotswolds (Geoffrey Clifton-Brown) that we make no apologies for representing our constituencies and communities. If this is the legislation that our communities want, it is up to us as their elected Members to secure it.

I strongly welcome the clause and I congratulate the Calman parties on introducing it. It is one of the few examples in the Bill of a real and positive transfer of powers from the Scotland Office to Scottish Ministers, in recognition of the very significant and different issues in Scotland. The hon. Member for The Cotswolds mentioned the tragic incident in 2005 when young Andrew Morton lost his life at the hands of someone with an airgun. It was not the tabloid press but his parents who started a remarkable campaign to bring the issue to public attention, and they were supported in that cause by politicians, civic groups and everyone who took an interest in the subject.

[Michael Connarty]

I worry when a Scottish National party Member accepts the kind of smear on Scotland that the hon. Member for The Cotswolds (Geoffrey Clifton-Brown) made. If we look at the press in England, we see there has been a succession of shootings and killings using handguns, not airguns, in and around the cities of England. The seriousness of the issue of deaths being caused by those carrying firearms is much greater in England than in Scotland, so let us not get things out of perspective.

[Pete Wishart]

I will come to the issue of firearms, which is central to our amendment, in order that we can, in Scotland, have responsibility for firearms, as well as for air weapons, which are, as we all acknowledge, a significant problem in our community. It is important that we have legislative responsibility for all such weapons in Scotland so that we can make our own laws, not just in regard to airguns, but in regard to all serious weapons.

A fantastic campaign led to calls for Scotland to secure legislative competence for airguns, which we are doing today. It led to the Cabinet Secretary for Justice, Kenny MacAskill, writing to Jacqui Smith several years ago to ask that Scotland be considered as a pilot area for the licensing of airguns, and subsequently to a summit of all stakeholders to consider the problem in Scotland and propose a way of dealing with it. Many interesting issues were explored at that firearms summit. The Scottish Government went as far as publishing the necessary parliamentary order to transfer the power quickly so that they could start to deal with the issue in Scotland.

Why do we want legislative competence? I have explained why we think the situation in Scotland is different and why Scotland needs the power, but what we can do with it? This might satisfy the hon. Member for The Cotswolds about our intentions: it is not about trying to stop sporting events or getting in the way of the Commonwealth games. That is nonsense. They will go ahead. Many constituents of mine enjoy and participate in events with all manner of rifles and I have no problem with that.

The power would allow us to examine the issue seriously. The intention is to put together a Scottish firearms consultative panel involving all the key stakeholders to establish a range of views on the issue. One of its first tasks would be to develop and consider the merits of a pilot licensing scheme for air weapons. This would enable the Scottish Government to test the practicalities of air weapon licensing. It would also test whether air weapon licensing can operate effectively without wider reform of the firearms legislation. A pilot could take place in one or more areas in Scotland.

Our strong view, as I said to the hon. Member for Linlithgow and East Falkirk (Michael Connarty), is that air weapons are only part of the story when it comes to dangerous weapons in Scotland. At the firearms summit in 2008 there was clear agreement that the current firearms legislation is not fit for purpose. Something must be done to improve the situation. It needs to be comprehensively reviewed. I accept that a review is taking place and we will wait to see its conclusions, but we need action. If that cannot happen at UK level, and if the legislation is not satisfactory, we insist that firearms legislation control be handed to the Scottish Government so that we can make our own decisions about this critical issue.

--- Later in debate ---

[Pete Wishart]

Indeed, we do support the clause as it stands. I know that the right hon. Gentleman is an astute follower of what happens in the Scottish Parliament, so he will have heard Kenny MacAskill and other colleagues saying on several occasions that what we require in Scotland is full control over all firearms legislation. That was the outcome of the summit held back in 2008 and that is what we seek to achieve this evening. We can achieve it. All we need to do is get the Committee to support us on amendment 3 this evening.

[Michael Connarty]

Will the hon. Gentleman explain how that would operate? I deal with firearms quite a lot in my constituency. I would like to hear what the difference would be if legislative control were transferred. The regime is very strictly run by the police, and the laws encompass everyone in the UK.

[Pete Wishart]

I am about to come to that. Let me explain first what we are trying to achieve with the amendment, and I will then deal with the hon. Gentleman’s wider point. He may intervene again if he feels that he is not getting a satisfactory response.

Our amendment deletes a small section that states that power over the control of “specially dangerous” weapons remains with the Secretary of State. It ensures that the Scottish Parliament will have the power to legislate for all air weapons, including the “specially dangerous” weapons that require a firearms certificate. The Bill as it stands includes a power for the Secretary of State to designate “specially dangerous” air weapons, which would then fall under the reserved regime that applies to all other firearms. In that case, the power would lie with the UK Government and Ministers and would not be subject to any approval from Scottish Ministers or the Scottish Parliament.

We therefore propose that the relevant power be exercised with the consent of the Scottish Parliament, even if it is not transferred. We believe that this is important because there are different and distinct issues relating to firearms in Scotland. I do not want to mention specifically all the tragedies that have taken place. We have only to recall Dunblane several years ago to recognise the very real issues that we have in Scotland involving firearms. It would be much more sensible for all firearms to be under one control in one central point. Scottish police forces have taken great interest in our plea and they would be interested in developing and exercising it.

We want to avoid complication. Our amendment would devolve legislative competence for all air weapons to the Scottish Parliament. I intend to press the amendment to a Division because it is important. This is one of the few opportunities that we will get to improve the Bill significantly and ensure that all weapons are included in it. It is a small measure designed to improve the Bill, as we said we would, and I urge the entire Committee to support it.

--- Later in debate ---

[Michael Connarty]

I approach the issue from a slightly different position. I support clause 11, because it is sensible to route such decisions to the Scottish Government, and amendments 17 and 18, which I hope the Government will take on board. Strangely, in a Committee of the whole House, Members do not necessarily receive from the Government the moderate responses that they would if they were in Committee off the Floor of the House and outwith the view of the television cameras. Often, Ministers see the sense in amendments and accept them, but this is a much more public arena, so we might not get from the Government Front Bencher tonight the sensible response that we would have had if we had been off the Floor of the House. That is one of the problems of this theatre, as some people regard the Chamber.

I have had to handle many matters to do with guns—to do with normal firearms—because there is quite a large shooting fraternity in my constituency. My constituency is mostly urban, but it has a rural hinterland where people shoot in clubs, to get rid of vermin, which is what farmers consider rabbits to be, and they go further north to shoot deer. It is an urban environment, and with reference to the remarks of my good Friend the Member for Kilmarnock and Loudoun (Cathy Jamieson), strangely, where somebody lives does not necessarily determine whether it is right for them to have a weapon of any kind; the question is what they are going to use it for, whether it is properly secured and whether they are properly licensed, controlled and monitored by the police.

I hope that in this Bill we are giving to the Scottish Parliament the power to think about—in keeping the whole thing in perspective—what I would call regulation rather than prohibition. The hon. Member for The Cotswolds (Geoffrey Clifton-Brown) is partly concerned by the idea, whipped up by whomever, for whatever reasons and with the aid of whatever quality press, that we are talking about—and we do use the phrase—a ban on airguns in Scotland. I hope that that is not the case, and we are not talking about someone running such a campaign.

The problem with prohibition, which was very well exhibited in the USA when they tried to ban alcoholic drink, is that the banned item just goes underground. In that situation, weapons would not only be used but traded, and unfortunately a large number of illicit users might misuse them, so I hope that the Scottish Government are sensibly thinking about a regulatory regime for air weapons. People say that a licensing scheme will cost so much money that it will be easier or, certainly, cheaper to introduce a ban, but I hope that in Scotland there is a sense of perspective, so that the issue, when it is transferred, will be about regulation, not prohibition.

That is not at all to diminish the serious effects of the deranged misuse of such weapons. The hon. Member for Banff and Buchan (Dr Whiteford) was right to point out that a lot of damage is done by misuse, particularly to domestic animals in our communities. I am sure that it does not happen just in communities in Scotland, either, and that the hon. Member for The Cotswolds did not mean to smear the good name of urban communities in Scotland, because we know of the terrible catalogue of murders by people using guns—firearms, not airguns—in England. I am sure that airguns are misused a lot in communities in England.

[Geoffrey Clifton-Brown]

The hon. Gentleman has been a Member for a long time and, in fact, as long as I have. I did not in any way mean to smear the people of Scotland, as he has inferred from my remarks; that was not what I said at all. Does he, in turn, recognise that the vast majority of firearms offences and, indeed, airgun offences are carried out by unlicensed users? We can have in place whatever regime we like, but those offences will still occur from time to time.

[Michael Connarty]

I wish that we could expunge from the memories of the people of Scotland, particularly central Scotland, the fact that a licensed gun owner used guns that were then allowed to create the carnage at Dunblane. It is not wrong to say that by regulating and banning the possession of handguns we did something very positive. There are times when controls are needed. In the United States of America, people can buy what are basically machine guns over the counter; we cannot, thank goodness. This obviously has a lot to do with the person who misuses the weapon, but it is also about its availability in the first place.

I hope that whatever regime is introduced in Scotland will be strict. A regular firearm user who is a hunter recently came to see me about relicensing and could show me that they had a strongroom that was totally secure, which meant that access to their guns would be very difficult for anyone. Their licence was approved by the local police, and it was a very thorough operation. I do not know whether that operation could be replicated for airguns, but that would stop a lot of the illicit possession. It is much easier for the local community around the area to know that someone is misusing such a gun if they possess it without a licence, in a similar way as applies to the possession of ordinary guns. I hope that my hon. Friend the Member for Kilmarnock and Loudoun agrees with that.

I hope that the Minister is listening to the support for these small amendments, which are useful and helpful. With apologies to those who aspire to have this in Scotland because we are Scottish, there are some serious types of airguns that should be licensed universally on an all-UK basis. That will not undermine the ability of our communities to know that people who have unlicensed airguns can be immediately notified to the police to have those firearms removed.

[David Mundell]

I welcome you to the Chair, Mr Benton.

I can assure the hon. Member for Linlithgow and East Falkirk (Michael Connarty) that nothing that the Government put forward this evening is in any way determined by the fact that these proceedings are televised. I hope that we are bringing forward a reasoned response to important issues that have been raised in the debate on these amendments.

I wanted, during this discussion, to clarify the SNP’s position, and I am sure that the hon. Member for Perth and North Perthshire (Pete Wishart) will understand why. I think that the logical explanation is that we now have devolution in the SNP, with a London SNP that is proposing an amendment to clause 11 and an Edinburgh SNP that is in agreement with it as it stands. In those circumstances, I find it extremely odd that the hon. Gentleman suggested that he was going to push this matter to a Division. He will have seen the Scottish Parliament’s Scotland Bill Committee report, which, in paragraphs 142 to 144, confirms that it was a unanimous view of that Committee that clause 11 should be supported. It states:

“We note that this excludes those air rifles, air guns or air pistols which are of a type declared by rules made by the Secretary of State under section 53 of the 1968 Act to be ‘specially dangerous’. These particular weapons are already banned and we see no reason why this would change.”

The Committee went on unanimously to recommend support for clause 11.

--- Later in debate ---

[David Mundell]

The Scottish Parliament will be able to enact a complete ban on air weapons that fall within the definition. The important point for colleagues such as my hon. Friend is that those who do not agree with that course of action will be able to argue their case in the Scottish Parliament. The hon. Member for Kilmarnock and Loudoun (Cathy Jamieson) set out a strong case on the basis of her considerable experience, respected views and strong beliefs. I felt that my hon. Friend also set out a strong view, although Opposition Members and indeed Members of my party in the Scottish Parliament might not subscribe to it. It is important that people who hold such views move the argument on to the Scottish Parliament if the clause is agreed to, because that is the appropriate place for the debate to take place.

[Michael Connarty]

Will the Minister clarify the other point that he made? If I understood him correctly, he said that the air weapons that are not covered by the Bill, which the SNP is trying to amend so that they have power over such weapons, are already banned. The only thing that could be done differently would be to unban them. The SNP is therefore asking for the power to unban weapons that are banned. Is that correct?

[David Mundell]

The hon. Gentleman makes a useful intervention. The division that took place in the Scotland Bill Committee in the Scottish Parliament, to which we have referred, was on exactly that point.

--- Later in debate ---

[Michael Connarty]

I am pleased to follow the hon. Member for Banff and Buchan (Dr Whiteford), who has both conflated a lot of issues that are of obvious concern to her party and not been quite open about what happened on the Scottish Parliament’s Bill Committee. We have heard what seems to be a strange argument: the SNP is for devolution unless it does not win the vote, because on a devolved committee the SNP moved an amendment and lost. Then the committee concluded that it was

“content to recommend to the Scottish Parliament that it should give its legislative consent to the provisions in the Scotland Bill relating to the re-reservation of insolvency, subject to provisions being drafted which will secure capacity for devolved legislation to affect the winding-up of Registered Social Landlords”.

On the one hand the hon. Lady is conflating lots of issues of obvious concern to her party, but on the other she is denying the democratic process when it goes against her in the devolved Parliament.

The third thing that the hon. Lady has done is make a case as though that case were not recognised by everyone, on all sides, in the evidence given to this Parliament. Hopefully, the Government are listening to that, and those on our Front Bench have stressed the same points. However, there is another fault that people show when trying to enthuse people—I think that the common phrase is “overegging the pudding”. There has not been a bankruptcy or insolvency of a registered social landlord in Scotland in 40 years, because of the way in which their arrangements are structured. I was active in the early days of the housing association movement as a leader of a council in Scotland. Across all the parties we created a structure that mainly secures registered social landlords from the problems experienced by those landlords who are thirsting for profit and therefore taking risks by borrowing and overextending themselves. Registered social landlords are to be commended because they tend not to get themselves into such situations, which is one of the reasons we set them up as we did.

Everyone takes seriously the point made by the Scottish Federation of Housing Associations, including those on our Front Bench and, I hope, the Government. Therefore, we should have the necessary safeguards to allow the points made by the SFHA to be taken on board. The SFHA is worried about the speed of action should there ever be a problem, and hopefully the final legislation will recognise that. However, we cannot conclude from this that we should therefore go against the recommendation of the Scottish Parliament’s Bill Committee and against common sense in having a system across the UK to address a problem that faces a lot of the corporate bodies and private organisations in the UK at the moment.

[Dr Whiteford]

This is an argument that has come directly from the Scottish Federation of Housing Associations, which is concerned about preventing such problems from occurring in the first place. It is the SFHA that is worried about the environment in which it currently operates. I know that we will shortly debate housing benefit in this House, but one of the SFHA’s concerns is that changes to housing benefit could have serious repercussions for cash flow. It is concerned that the financial position is not as secure as it might have been. That is why we have to take this issue seriously. I wish that I could share the hon. Gentleman’s optimism, but hoping that something might come forward is no way to go through the parliamentary process.

[Michael Connarty]

Allow me to recommend that optimism to the hon. Lady, who is new to the House. That optimism, which I have carried with me for 18 years, might stand her in good stead if she survives as long as I have in this place. They do say—I am quoting Gramsci, the socialist—that pessimism of the intellect should breed optimism of the will. She will certainly require that again and again if she sits on the SNP Benches in this place, I can tell her that.

I am deeply involved in fighting a case involving a bad insolvency in my constituency. In a sense, I have had to step over a line that I have drawn for myself since devolution, where I have had to say, “This is not a matter for me: I have a remit as a UK parliamentarian and my colleagues”—Members of the Scottish Parliament—“have a remit devolved to them.” I try to keep the two apart quite strictly. I try to encourage devolved organisations to write not to me but to my MSP colleagues, and to engage them properly in the process. I was involved in the scrutiny of bankruptcy in Scotland legislation here in Westminster between ’92 and ’97, and knew quite a lot about that. I therefore find the current environment frustrating, as many companies are facing serious challenges because of economic conditions and are having to go through the insolvency process.

Although the case I took on involves what is currently a devolved matter, I knew that re-reservation was being reconsidered, so my conscience was somewhat assuaged. The reality is that the insolvency process is not very pleasant. It is never pleasant for people to be bankrupted or to have their goods and chattels sold by a bankruptcy administrator who seems to be their friend until the moment when they sign the form, and who then turns out to be their enemy. In the case I am currently involved in, there is a house for sale. The insolvency administrator has allowed it to be vandalised, so quite a lot of the financial benefit to the creditors has been lost, and seems to be ignoring any offer from anyone to buy the property.

This issue should be a responsibility across all the Chambers, and I think it makes sense for the same rules to apply in Scotland as in the rest of the UK. The Bill’s provisions would bring them into line. We should all realise that it does not matter which side of the border people are living on or trading in, and that they must be dealt with properly by the insolvency laws and its practitioners. I have serious reservations about the way they are currently regulated. I look forward to this being returned to being a reserved matter so that I can fully engage in it.

[David Mundell]

Clause 12 implements the Calman commission recommendation that the UK Insolvency Service should be made responsible for laying down rules to be applied by insolvency practitioners on both sides of the border. The commission was persuaded by evidence from stakeholders, including the Law Society of Scotland and the Institute of Chartered Accountants of Scotland, that a consistent approach to winding up would bring significant benefits to insolvency practitioners, creditors and others dealing with insolvent companies in both England and Wales and in Scotland. Many windings up involve groups of companies that operate on both sides of the border, and it will be more efficient in terms of both time and money if the same winding-up rules are applied to each insolvent company in the group, except where Scottish common law dictates otherwise.

As a result of the proposals, the reorganisation of groups of companies will be more efficient and lead to increased returns for creditors and shareholders. Group reorganisations may involve subsidiaries being wound up, and a common approach to winding-up rules would help reduce the cost and complexity of group restructuring where constituent companies operate in both Scotland and in England and Wales. In its evidence to the Calman commission, the Institute of Chartered Accountants of Scotland, which regulates most of the insolvency operators working in Scotland, highlighted the benefit of consistent rules in promoting a more stable environment for corporate recovery and turnaround.