Scotland Bill Debate

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Department: Scotland Office
Monday 9th November 2015

(8 years, 12 months ago)

Commons Chamber
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Joanna Cherry Portrait Joanna Cherry (Edinburgh South West) (SNP)
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In contrast with the previous speech, which was an ill-informed diatribe criticising the Scottish Government, I rise to address the Bill before us today. I am going to use what precious time I have to speak in favour of amendment 204.

Amendment 204 would introduce a subsection to clause 11 that would remove the Human Rights Act 1998 from the list of protected provisions in schedule 4 to the Scotland Act 1998. This would have the effect of removing the Human Rights Act from the list of enactments that cannot be modified by the Scottish Parliament. If the Scottish Parliament was able to modify the Human Rights Act, that would allow the Scottish Government and the Scottish Parliament fully to establish a human rights regime in Scotland regardless of whether the Act was repealed by the UK Parliament in London.

The UK Government, which have no mandate in Scotland, have repeatedly made clear their intention to repeal the Human Rights Act and to replace it with a Bill of Rights. They have made it clear that they scorn European and international norms on human rights and the jurisdiction of the European Court of Human Rights. They have made it clear that they want to replace the Human Rights Act with a watered-down version of the rights and protections that everybody in the UK currently enjoys. We saw that very much trailed in The Sunday Times yesterday.

We in Scotland do not wish to have the terms of the debate on human rights in Scotland dictated by the UK Parliament, because in Scotland we have a very different agenda. There is no mandate in Scotland for repeal of the Human Rights Act. Preserving the Human Rights Act was an issue during the campaigns in both the independence referendum and the general election. The SNP has consistently opposed repeal, and as my right hon. Friend the Member for Moray (Angus Robertson) said, we won the general election in Scotland. Indeed, including Labour’s and the Liberal Democrats’ sole representatives in Scotland, 58 out of 59 Scottish MPs oppose repeal.

Wayne David Portrait Wayne David (Caerphilly) (Lab)
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Will the hon. and learned Lady give way?

Joanna Cherry Portrait Joanna Cherry
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I think I will make some progress, if the hon. Gentleman does not mind.

Last year, the Scottish Parliament voted by 100 to 10 to endorse the Human Rights Act, and civic society in Scotland, from the Scottish Trades Union Congress to the Church of Scotland, also opposes repeal. Nevertheless, this UK Government have repeatedly confirmed that they intend to go ahead with repeal and that it will apply equally in Scotland as in England, Wales and Northern Ireland.

In Scotland, we are concerned by repeated statements from Ministers of this Government suggesting they believe they could repeal the Act without consulting the Scottish Parliament. Their argument seems to be that they would not need a legislative consent motion, but that is incorrect. Human rights are not a reserved matter under the devolution settlement. Schedule 4 to the Scotland Act 1998 protects the Human Rights Act against modification by the Scottish Parliament, but human rights per se are not a reserved matter. They are not listed as such among the reserved matters in schedule 5 to the 1998 Act. It was part of the late Donald Dewar’s scheme that all matters would be devolved unless specifically reserved, and human rights are not specifically reserved.

Moreover, human rights and the European convention on human rights are written into the Scotland Act, meaning that the Scottish Parliament and Scottish Ministers cannot pass legislation that is incompatible with the convention.

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Joanna Cherry Portrait Joanna Cherry
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It is hard to take that seriously. Since we have been in the House, we have, through the judicious questioning of Ministers, established that one of their main concerns about the Human Rights Act is the fear they should have to take account of—that is all the Act says—the decisions of the Strasbourg Court. Given that they fear having to take account of European and international norms, I can only assume they want to replace the Act with a considerably watered-down version of the ECHR and the Act. That is merely a logical deduction.

I wonder if I might give way to the hon. Member for Caerphilly (Wayne David), on the Labour Front Bench, who wished to intervene earlier.

Wayne David Portrait Wayne David
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It was only about five minutes ago, but I thank the hon. and learned Lady very much indeed. I agree with her comments about the Human Rights Act, but would she accept that what she says about Scotland also applies to Wales and to Northern Ireland especially?

Joanna Cherry Portrait Joanna Cherry
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I do. As our First Minister has made clear, and as I have made clear in the House several times, we will do everything we can to preserve the Act for the whole of the UK. Were the Government to recognise that human rights are not a reserved matter and that therefore there has to be a legislative consent motion, we in Scotland could help friends across the House by refusing legislative consent for the repeal of the Act, which would be one way of keeping it for the whole of the UK.

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Ian Blackford Portrait Ian Blackford
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I want to make some progress.

Labour Members need to start learning the lesson that Scotland rejected them for a reason. They had better start to get on side with us and the people of Scotland. Tonight is a chance for the House to understand that Scotland expects powers for the Scottish Parliament to be delivered so that Scotland’s destiny can be put in Scotland’s hands. That will not happen by voting for a Bill that leaves us with a hand tied behind our backs while a Tory Government do their worst to the poor and disadvantaged in our society.

Our amendments allow us to deliver on the interests of our people. We need a Parliament that will allow us to stand up for the people of Scotland and recognise that the people are sovereign. Let me finish by quoting Charles Stewart Parnell:

“No man has the right to fix the boundary to a march of a nation. No man has the right to say thus far shalt thou go and no further.”

It is in that context that we need powers to determine in Scotland when and if we want to have a referendum. It is in that context that the House should listen to the elected Members of the people of Scotland.

Wayne David Portrait Wayne David
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The acid test of this Bill is whether it delivers on the vow and the recommendations of the Smith commission. Objectively, assuming that all the Government amendments are agreed, we believe that the Bill goes a long way to delivering on the Smith commission. That is not to say that the Government have delivered on absolutely everything. They clearly have not, and I have to say that it is a sad reflection on this Government that they have come to this point kicking and screaming. Since the beginning of the Smith commission’s report in November 2014, the Government have had a long and painful journey.

Nowhere is the Government’s change of heart more clear than in respect of Government new clause 12. It was constantly argued by Opposition Members in Committee that the Scottish Parliament and the Scottish Government ought to be described as “a permanent part” of the United Kingdom’s constitutional arrangements. We argued that the phrase “recognised as permanent” was less than what was recommended by the Smith commission and that, as the Scottish Parliament’s Devolution (Further Powers) Committee correctly argued, the use of the phrase “recognised as permanent” had the effect of weakening the Smith recommendations. I am pleased that the Government have listened.

Some might think that this is all about constitutional navel-gazing, but it is an extremely important point that the Scottish Parliament be placed on a firm constitutional footing and that the sovereignty of the Parliament rests with the people of Scotland. I have, however, a question for the Secretary of State on the issue of the UK’s parliamentary sovereignty.

We all know that a classic theory of UK parliamentary sovereignty is stated in Dicey’s “Introduction to the Law of the Constitution”. According to this classic theory, Parliament can make a law on any subject it pleases, and there are no fundamental laws that restrict its powers. The Government’s new clause 12, I would suggest, is a departure from that theory, which I welcome. Does the Secretary of State agree that in passing new clause 12 we are making modest but significant constitutional history?

New clause 13 is about the functions exercised by Scottish Ministers in respect of elections. It is essentially technical, but on the issue of elections, I refer briefly to amendments 37 and 43. Of course, a vital part of any democracy is free and open elections, and we support Government new clause 13 and Government amendments 35 to 43. I am glad that the Government have recognised the need to devolve some of the responsibilities of the Electoral Commission. It is surely only appropriate that the Political Parties, Elections and Referendums Act 2000 is amended so that the functions of the Electoral Commission are devolved for elections to the Scottish Parliament.

I note that the Government have introduced the significant amendment 43, which deals with the so-called “Digital Service”. As I understand it, this relates to the ability to register online to vote. Given the introduction of individual elector registration, this is very important. I ask the Minister for clarification on two points. First, although there is reference in the Bill to Scottish Ministers making regulations subject to the negative procedure, it is repeated in amendment 43, so I would appreciate it if the Government could explain what exactly this negative procedure is and how it will work?

Secondly, with regard to the online registration system, could there be confusion about which electors are able to vote in which elections? The Scottish Parliament has rightly decided to introduce votes for 16 and 17-year-olds at all Scottish elections, but these individuals will be denied the vote in Westminster elections. Is there not a danger of widespread confusion, particularly if the online registration technology is being used for both Westminster and Scottish elections?

If I am pleased that the Government have listened to the debate, particularly as far as new clause 12 is concerned, I am disappointed that they have not brought forward an amendment on the Sewel convention and its workings. We argued in Committee, as did SNP Members, that we were concerned about the narrow interpretation of the Sewel convention, which concerned the more general devolved competence. Moreover, there is the imprecision of the word “normally”. As I said in the Committee of the whole House:

“How long is a piece of string?”—[Official Report, 15 June 2015; Vol. 597, c. 99.]

The word “normally” is legally imprecise, which is why amendments 7, 8, 9 and 10, to remove the offending word, were tabled by the right hon. Member for Orkney and Shetland (Mr Carmichael), who sadly cannot be with us today.

New clause 35, tabled by the right hon. Member for Moray (Angus Robertson), seeks to place the Sewel convention on a statutory footing. This was, of course, recommended by the Smith commission, and we are happy to support the new clause, if it is pressed to a vote. However, if we are supporting new clause 35, we are certainly not supporting new clause 36, also tabled by the right hon. Member for Moray. It deals with future referendums on Scottish independence. I note that in the right hon. Gentleman’s statement to the press over the weekend, he said:

“Whether or not Scotland has a referendum in the future should be up to the people—and in the hands of the Scottish Parliament—rather than the UK Government.”

Callum McCaig Portrait Callum McCaig (Aberdeen South) (SNP)
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Paragraph 18 of the Smith commission report states:

“It is agreed that nothing in this report prevents Scotland becoming an independent country in the future should the people of Scotland so choose.”

If the people of Scotland do not have the power to choose, how is that provision to stand the test of time?

Wayne David Portrait Wayne David
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I may be mistaken, but I thought the Scottish people had made a decision—a very firm and clear-cut decision. If there is a move towards having a referendum in the future—

Callum McCaig Portrait Callum McCaig
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Will the hon. Gentleman give way?

Wayne David Portrait Wayne David
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I give way a second time.

Callum McCaig Portrait Callum McCaig
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On the history of this issue, the referendum happened in September, and the Smith commission from which I have directly quoted, happened after that. All the parties decided that nothing should prevent Scotland from becoming independent, should the people so wish—yet that is exactly what these provisions are trying to do.

Wayne David Portrait Wayne David
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No one is seeking to deny the people of Scotland anything. I simply remind the hon. Gentleman that a prominent member of the SNP said that the result was gold-plated, and that the Scottish Parliament has the power at present to have a referendum. The amendment seeks to take away the caveats that are based on discussion and all the more reasonable for that.

Lord Austin of Dudley Portrait Ian Austin
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Does my hon. Friend agree that this obsession with organising another referendum proves the central point made by me and others in this afternoon’s debate—that the SNP is much more interested in breaking up Britain than in getting on and delivering for the people of Scotland by improving the health service, improving education and providing the homes that the people of Scotland need?

Wayne David Portrait Wayne David
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I could not agree more. In my book, devolution is not about divorce, separation or schism. It is not about balkanising Britain. It is about establishing a new partnership, so that the people of Britain can work together in a constructive and harmonious way.

Patrick Grady Portrait Patrick Grady (Glasgow North) (SNP)
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Will the hon. Gentleman give way?

Wayne David Portrait Wayne David
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I will, for the third time.

Patrick Grady Portrait Patrick Grady
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I may have misheard the hon. Gentleman, but it sounded as if he said that the Scottish Parliament had the power to call a referendum. The Scottish Parliament explicitly does not have the power to call a referendum, which is why we want to give it that power by means of our amendment.

Wayne David Portrait Wayne David
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What the amendment seeks to do is take away caveats that are essential in defining the partnership and the harmonious discussions that must take place. It is not simply a question of the Scottish Parliament deciding by itself what it wants to do.

Ian Blackford Portrait Ian Blackford
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Will the hon. Gentleman give way?

Wayne David Portrait Wayne David
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I will give away yet again.

Ian Blackford Portrait Ian Blackford
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I am grateful to the hon. Gentleman for being so gracious with his time. This is a very important point, because it comes down to the issue of whether the Scottish people, in electing a Government who want to have a referendum on independence, have the power to do so. If the House does not accept our amendment, that power will reside with Westminster, and not with the Scottish people or the Scottish Parliament. It has nothing to do with caveats.

Wayne David Portrait Wayne David
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I think that the obsession with having a referendum at all costs is very sad for the people of Scotland.

Tasmina Ahmed-Sheikh Portrait Ms Ahmed-Sheikh
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Will the hon. Gentleman give way?

Wayne David Portrait Wayne David
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No. I have given way four times already.

Sometimes SNP Members have to be told, and I am telling them now. The situation is as I have described it. We are not prepared to have a referendum, and we are not prepared to allow a constitutional debate to be hijacked by the referendum issue in an attempt to manoeuvre the situation and bring about a break-up of the United Kingdom. That is not what devolution is all about, and it is not what the Smith commission was all about. The Smith commission was all about people working together.

None Portrait Several hon. Members rose—
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Wayne David Portrait Wayne David
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I want to make a bit of progress now.

The fact is that these are not dry constitutional issues, but issues that have an impact on everyday life, as is shown clearly by what is happening in Scotland in connection with the Trade Union Bill. Under the Sewel convention, a legislative consent motion is necessary for Westminster legislation to secure the consent of the Scottish Parliament if it is to apply in Scotland in a devolved area. According to a strict legal interpretation, this Bill seeks to amend the Trade Union and Labour Relations (Consolidation) Act 1992, and therefore, it is argued, does not encroach on areas of devolved competence. In practical terms, however, it will encroach very much on areas of devolved competence by imposing requirements on local authorities in Scotland.

We believe it is wrong that the UK Government are able to legislate for devolved authorities in this way. That is why all Labour-led councils in Scotland—and one led by the SNP— have agreed to a stance of non-compliance. The Westminster Government have not sought a legislative consent motion from the Scottish Parliament, but Labour will present such a motion in order to deny the Bill competence over Scotland’s devolved services.

I have mentioned local authorities. New clauses 7, 8 and 9, tabled by my hon. Friend the Member for Nottingham North (Mr Allen), make the point that true supporters of devolution believe that power should reside at the most appropriate level, as close to the people as possible. They recognise that there is a very real issue in Scotland, namely that, in the view of many, the Scottish Government are more concerned about exercising power itself than about empowering people in their local communities. Members of the SNP claim to be good Europeans, but I am afraid they show little practical support for the adoption of the European principle of bringing power closer to the people. They have a chance to put that right tonight.

As was noted when we discussed it in a Committee of the whole House, part 2 of the Bill devolves significant new powers to Scotland in relation to income tax and other taxes. The Scottish Parliament will have control over income tax rates and thresholds, and complete freedom when it comes to the levels at which those rates and thresholds are set. That is significant, as the estimated devolved income tax liabilities in 2013-14 amounted to nearly £11 billion. The collection and deployment of such a considerable sum confers—rightly—a substantial degree of responsibility on the Scottish Parliament. If they wish, a Scottish Government, whatever their political complexion, can increase or decrease that liability.

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Edward Leigh Portrait Sir Edward Leigh
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I refer the hon. Gentleman to his own new clause 1. Do I take it that because the Labour party wants an independent commission to examine the issue of full fiscal autonomy, it is increasingly open minded about the issue, and does the hon. Gentleman think that that would be one route towards getting rid of the grievance mentality among those in Scotland? If they had to take full responsibility for their decisions, it would be very difficult for them to blame a United Kingdom settlement.

Wayne David Portrait Wayne David
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We believe that the facts should be allowed to speak for themselves. In our view, the case has not been made and cannot be made, but what we want to see is a transparent, independent body that will reach that conclusion, and we are confident that it will do so. That is why we support the proposal for an independent commission.

Tasmina Ahmed-Sheikh Portrait Ms Ahmed-Sheikh
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Does the hon. Gentleman agree with the shadow Chancellor, who, earlier this year, walked through the Lobby with us to vote for full fiscal autonomy?

Wayne David Portrait Wayne David
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He did that for his own reasons, and for different reasons. What was obvious to me, and very telling, was the fact that the Tory right and the Scottish nationalists were at one. Representatives of English nationalism and Scottish nationalism went through the Lobby together in their hordes: the nationalists and the extreme right! That says it all, does it not?

Nick Thomas-Symonds Portrait Nick Thomas-Symonds (Torfaen) (Lab)
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I know that my hon. Friend, like me, is a student of history. He will know of the test set by that great socialist R. H. Tawney, who said of political institutions, “It is not about paragraphs in a constitution; it is about the practical effect that the institutions make.” Does my hon. Friend agree that it would be useful to know from SNP Members what, practically, they intend to do with their new powers?

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Wayne David Portrait Wayne David
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Yes, indeed. They are very strong on rhetoric, as we have heard this afternoon. They have had strong election results, but I suspect that that will not apply for much longer, because the Scottish people will rumble them when they dig beneath the rhetoric and find that there is very little substance there.

Edward Leigh Portrait Sir Edward Leigh
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Could it just be that the Tory right, as the hon. Gentleman describes it, and the present Labour shadow Chancellor both recognise that the one way to defeat nationalism is to have a real Parliament in Scotland with full power over what it taxes and spends and that at that stage the SNP will have to take responsibility for its own actions? It will become a grown-up political party and we will start to defeat it in Scotland.

Wayne David Portrait Wayne David
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One of the key reasons why we are broadly in support of what the Government are belatedly proposing is that we believe it will give new responsibilities to the Scottish Parliament to try to achieve substantial things on behalf of the Scottish people. I think there is a case to say that responsibility and power go together, and that is why these measures are a step forward.

Lord Austin of Dudley Portrait Ian Austin
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A moment ago my hon. Friend expressed surprise that the SNP and the Tory right were voting together on full fiscal autonomy, but I am bemused about why he is surprised given that it was the SNP who brought down the Labour Government in the 1970s and ushered in 18 years of—[Interruption.] I do not know what the hon. Member for Ochil and South Perthshire (Ms Ahmed-Sheikh) is shouting for, given that she was until very recently a Tory herself. They ushered in 18 years of Thatcherism and all the problems about which they are now whingeing. [Interruption.]

Wayne David Portrait Wayne David
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All I would say is that it is quite clear that the truth hurts sometimes, does it not? They have been rumbled absolutely.

I will make a little progress in a slightly more sedate manner, if I may. Reference has been made to our new clause 1, which would establish an independent commission on full fiscal autonomy to scrutinise the potential impact on Scotland’s economy and public finances. It would require the Secretary of State for Scotland to establish an independent commission of external experts, appointed in consultation with the Treasury Committee and Scottish Affairs Committee, to publish a report by 31 March 2016 setting out an analysis, objectively and fairly, of the impact of the policy of full fiscal autonomy.

VAT is another important issue. Our amendments 27 to 29 would place an additional £5 billion of reserves under the direct control of the Scottish Parliament by assigning 100% of Scottish revenues from the standard and reduced rate of VAT to the Scottish Parliament, as opposed to 50%, for which the Bill currently allows. Of course, under EU regulations, which do not allow for differential rates of VAT in the same state, the actual setting of VAT would have to remain reserved. However, this is not an argument against assigning the revenues generated in Scotland to the Scottish Consolidated Fund. As was said on Report, given that the Scottish Government would have

“no control over VAT, why assign only half of it? Why not assign it all? The Scottish Government could then quite rightly benefit, if there was a benefit, from the entire rise in VAT in Scotland rather than just half of it and could take responsibility if there was a shortfall, not just for half the shortfall.”—[Official Report, 29 June 2015; Vol. 597, c. 1256.]

It was said that that would be a good thing. Those were not my comments, or indeed the comments of another Member of the Opposition; they were the comments of the hon. Member for Dundee East (Stewart Hosie), who also happens to be the SNP’s spokesperson on the economy. Oddly, given his full-blooded support for devolving 100% of VAT, the SNP has not actually got round to tabling an amendment that would produce this effect, and when the Labour party tabled an amendment proposing that, did the hon. Gentleman and his colleagues welcome it? No, they did not. Instead, they issued a press release in which the hon. Gentleman himself denounced it as a “gimmick”. Well, I do not think it is a gimmick and I am sure the people of Scotland do not think so either.

New clause 4 would review the impact of the new income tax powers on the operation of gift aid in Scotland to guard against unintended and negative consequences for charities. Gift aid is worth over £1 billion a year to charities and over £100 million in Scotland. Any threat to its smooth operation must, therefore, be closely guarded against. The problem that Labour’s new clauses seek to address is that gift aid is UK-wide, linked to tax paid, and predicated on a single tax structure. I would welcome in the Secretary of State’s response any assurances he can provide to charities in Scotland on the issue of gift aid.

New clause 11 would require the Secretary of State to lay before the House of Commons a full record, including minutes of meetings and correspondence at ministerial level, of discussions between the Secretary of State, the Treasury and Scottish Ministers relating to the non-budget expenditure to be voted by Parliament authorising the payment of grants to the Scottish Consolidated Fund for that financial year. We would of course be happy to work in partnership with the Scottish Parliament on such a report, although it is similarly in the gift of the Scottish Government to produce their own report, and I hope that they would share it with us as well. We would thereby have regular updates on the health of these negotiations, which currently take place to a large extent behind closed doors. The purpose of this new clause is to ensure transparency and accountability in the process leading to the annual settlement between the Treasury and Scottish Ministers of the block grant to the Scottish Consolidated Fund.

It is worth noting that the Scottish Parliament’s Finance Committee produced a report on intergovernmental relations in late June. It makes for interesting and important reading. It is generally critical of the state of intergovernmental relations, which are described as taking place “below the radar.” It is said that relations should be made

“more formal and more transparent.”

The Committee also recommended that consideration should be given to establishing an independent body to advise on the calculation of the block grant and an independent arbiter to resolve disputes on issues such as the block grant adjustment. The Labour party would certainly support any such moves to that effect, and it is in the interests of introducing greater accountability, transparency and formality to these negotiations that our new clause 11 has been tabled.

I am grateful for being allowed to speak in some detail about some of the amendments, but they are important; these are important issues. I hope that the House will give sympathetic consideration to the points I have made this evening.