Scotland Act 2016

Lord Selkirk of Douglas Excerpts

Wednesday 20th April 2016 Lords Chamber

[Lord Dunlop]

They are not very good at geography and I do not think that consistency is always a strong point with them either.

[Lord Selkirk of Douglas (Con)]

My Lords, can the Minister confirm that with the increased responsibility will go increased accountability? That must not be forgotten.

[Lord Dunlop]

At the heart of the Scotland Act 2016 is the transfer of responsibility to the Scottish Parliament, along with greater accountability, so the Scottish Parliament, which has always had great powers to spend money, now has responsibility for determining how that money is raised.

Scotland Bill

Lord Selkirk of Douglas Excerpts

Monday 21st March 2016 Lords Chamber

[Lord Wallace of Tankerness]

My Lords, like the noble and learned Lord, Lord McCluskey, I thought that the remarks made by the noble Lord, Lord Dunlop, in replying to the last amendment, when he thanked everybody, were more suitable for the Bill do now pass debate. However, although I did not take part in that discussion, I would not wish in any way to lessen the appreciation I express on behalf of my colleagues to those who have helped to get the Bill to its present state, not least the Bill team, with some of whom I have worked in the past and know of their exceptional quality and hard work. I particularly thank the Minister, who with his customary courtesy has gone out of his way to meet us, engage with us and discuss issues with us—regrettably, not always to any effect from my point of view, but no doubt from his point of view it has been very effective. That is very much appreciated.

Aspects of this process have not been at all satisfactory. The short period that we had in which to look at the fiscal framework was not satisfactory. The Bill could be in a better state than it is and perhaps more favourably reflect the spirit of the Smith commission. The House has not done much to respect, or even give proper consideration to, the points made by the Scottish Parliament’s committee that looked at the Bill. Those are matters of regret and do not augur well for having mutual respect and trying to improve the relationships between the institutions of the Westminster and Scottish Parliaments. But that is where we are.

This amendment addresses the Barnett formula. The Minister referred to the vow in his wind-up speech. I happen to believe that the referendum was won in spite of rather than because of it. However, it is important that we celebrate the fact that we won the referendum and are not facing independence day on Thursday of this week, with one dreads to think what consequences.

I note that, when I stood where the Minister stands now, the most difficult question I ever had to answer in one of these debates came from the noble Lord, Lord Turnbull, who referred to the vow. It says:

“We agree that the UK exists to ensure opportunity and security for all by sharing our resources equitably across all four nations to secure the defence, prosperity and welfare of every citizen”.

It goes on to refer to the,

“continuation of the Barnett allocation for resources”.

I was asked how I could square the equitable sharing of resources with the continuation of the Barnett formula. I struggled to find an answer. I will allow the Minister to find his.

[Lord Selkirk of Douglas (Con)]

My Lords, when the Calman commission sat, the most important principles that it was trying to support were equity and accountability; this echoes what the noble and learned Lord has just said. I remind the House that on 7 September 2004, the day the Scottish Parliament opened at Holyrood, the Reverend Charles Robertson, minister of the Canongate church, was first to speak during the regular time for reflection. He reminded us of the previous uses of the site for the newly-built Parliament. It had been a house of refuge, a soup kitchen for the destitute and Scotland’s largest independent geriatric hospital, not to mention the site of a profusion of well-known and much-loved breweries. Given this history, it is perhaps not surprising that, on that day, the then First Minister, the noble Lord, Lord McConnell, urged MSPs to “raise their game”.

This legislation—the amendment relates to the heart of it—will bring about major changes in the powers and competence of the Scottish Parliament as, for the first time, the majority of funds that the Scottish Government spend will come from revenues raised in Scotland. When the prevailing philosophy has been a culture of spend, spend, spend, popularity is relatively easily won. That will now change as tough decisions will have to be made on how services will be financed.

There seems to be some uncertainty about who observed:

“With great power comes great responsibility”.

Some attribute it to Voltaire. In a debate in the other place in 1817, William Lamb, later Prime Minister Lord Melbourne, made an exhortation to the press. He begged leave to remind them of their,

“duty to apply to themselves a maxim which they never neglected to urge on the consideration of government—‘that the possession of great power necessarily implies great responsibility’”.—[Official Report, Commons, 27/6/1817; col. 1227.]

Similarly, on the same subject, Prime Minister Sir Winston Churchill said:

“The price of greatness is responsibility”.

What Churchill meant was that anyone who aspires to greatness must also be willing to shoulder the accompanying responsibilities. His advice still holds good today.

[Lord Dunlop]

My Lords, as the noble and learned Lord, Lord McCluskey, said, the Barnett formula has been the subject of significant debate during the passage of the Bill and has been raised in various statements and at other opportunities. I do not propose to go over well-worn ground, but I recognise the strong views that the formula evokes, particularly in this House. As has been said at other stages in the Bill’s progress, the retention of the Barnett formula is a manifesto commitment not just of the Government but of all three of the main UK parties. It will therefore continue to determine changes to the block grant resulting from changes in UK government departmental spending.

However, as my noble friend Lord Selkirk noted, the significance of the Barnett formula will be reduced, as over 50% of the Scottish Government’s budget will, in future, come from taxes raised in Scotland. As has been said before, the size of that budget will be determined increasingly by changes in Scottish taxes.

The amendments tabled by the noble and learned Lord call for a memorandum to be published within 30 days of the Scotland Act passing, providing additional detail on the future of the Barnett formula. We are already delivering the intent of these amendments. On Friday, the Chief Secretary to the Treasury placed in the Libraries of both Houses a supplementary technical annexe to the fiscal framework agreement. This sets out in detail how Barnett will operate in future, alongside the adjustments for new tax and welfare powers. Much of the detail of how Barnett operates is already published in the Statement of Funding Policy, which was last updated in November. The details of how the devolution settlement operates are also set out at each fiscal event.

In addition, we have listened to the views expressed in this House about transparency and reporting. The UK Government and the Scottish Government have agreed to report annually on the operation of the fiscal framework. Finally, in response to the House of Lords Economic Affairs Committee, the Treasury has undertaken to look at how the whole operation of the Barnett formula can be made more transparent. We on this side of the House fully expect scrutiny to continue beyond the passage of the Bill and therefore I urge the noble and learned Lord to withdraw his amendment.

Scotland’s Fiscal Framework

Lord Selkirk of Douglas Excerpts

Wednesday 24th February 2016 Lords Chamber

[Lord Dunlop]

I assure the noble Lord that we are very confident that the delivery of these powers will go ahead as intended.

[Lord Selkirk of Douglas (Con)]

In view of the fact that I asked the second Question yesterday, I feel entitled to give the Minister warm congratulations on his part in securing this agreement on the fiscal framework. Does not this pave the way for the debate in Scotland to move forwards and focus fully on how the new and extensive powers should be used?

[Lord Dunlop]

I thank my noble friend for his words. We are months away from elections to the Holyrood Parliament and, as I said earlier, the deal opens the way to make sure that that debate is on the right terms—about how each of the political parties competing in that election will use those powers, and not the perpetual debate about what those powers are.

Scotland Bill: Fiscal Framework

Lord Selkirk of Douglas Excerpts

Tuesday 23rd February 2016 Lords Chamber

Asked by

[Lord Selkirk of Douglas]

To ask Her Majesty’s Government what progress has been made on the Fiscal Framework that accompanies the Scotland Bill.

[The Parliamentary Under-Secretary of State, Scotland Office (Lord Dunlop) (Con)]

My Lords, significant progress has been made, not least over the course of the last week, in the discussions with the Scottish Government. As I told the House yesterday, although nothing is certain, a deal is within reach. Discussions between the two Governments are continuing this afternoon and are at an advanced stage. The UK Government remain focused and committed to delivering a fiscal framework that is fair to all parts of the UK. We all want to see the debate in Scotland move from what the powers of the Scottish Parliament are to how those powers can be used. The UK Government are confident that, used well, these powers can further help Scotland to prosper within our United Kingdom.

[Lord Selkirk of Douglas (Con)]

In light of the Statement being made by the First Minister in the Scottish Parliament at 2.30 pm today, which may still be going on, will the Minister continue with discussions, however difficult the circumstances may be? Will he keep in mind that this House wishes all parts of the United Kingdom to be treated with fairness and that, if there are to be increased powers, these have to be matched by increased accountability? Finally, I wish to say that I have known the Minister for 30 years as a person of great integrity and ability and I wish him every success in whatever discussions lie ahead.

[Lord Dunlop]

I thank my noble friend for his kind words. I am aware that Scotland’s First Minister is making a Statement in the Scottish Parliament as we speak. The Government will obviously take very careful note of what she says and we will continue to engage constructively until a deal is done. That is what people in Scotland and all parts of the United Kingdom expect us to do. I very much agree with my noble friend that any deal must be fair to Scotland and all parts of the United Kingdom. It is in the interests of all parts of the United Kingdom to have a Scottish Parliament that is more responsible and accountable to the taxpayers of Scotland. I think that, in this House, we can all agree that with power comes responsibility.

Scotland Bill

Lord Selkirk of Douglas Excerpts

Monday 22nd February 2016 Lords Chamber

[Lord Turnbull (CB)]

My Lords, I, too, share many of the concerns raised by the noble Lord, Lord Forsyth. We have reached a point where the House is being asked to approve that certain taxes and welfare measures should be devolved, but nothing is being said about the framework in which they are to be operated. I do not accept the proposition put forward by the noble Lord, Lord Hope, that we can divorce the two, nor do I accept that the precedent of the previous Scotland Act of leaving certain details to be settled after this stage is appropriate. What is at stake are billions and billions of pounds and the distribution of those between the different parts of the United Kingdom.

We have been told nothing about two vitally important elements of the fiscal agreement: the method for adjusting the Barnett formula to take account of the new distribution of taxes and the regime for borrowing and debt. We know that there is a dispute over two different methods of adjusting the block grant. Noble Lords will be pleased to know that I am not going to attempt to explain those now, but no Minister in this House or the other place has attempted to explain what the two approaches are and the merits of each. Despite that, and contrary to the assurances given, the completion of Committee stage has been scheduled to proceed. It is extraordinary that a major change in constitutional arrangements, both political and financial, is being sought without either House having a chance to see the detail of what is proposed or, importantly, to take a view on its effectiveness or fairness. It has been pointed out that this is not simply a bilateral matter between Scottish and UK Ministers: it has implications for the whole country.

The other place may be content to allow all this to glide by unremarked, but I believe that this House has higher standards. It has always prided itself on ensuring that matters of constitutional significance are properly scrutinised. At the moment, that is not happening.

If an agreement is reached in the next few days, even though it has been a case of “Mañana, mañana” so far, the Government need quickly to come up with a process that allows the Bill to be scrutinised before final assent is given to it. For example, if this is effectively delayed until Report, will the rules of Report be modified to adopt the rules of Committee—for example, with noble Lords being able to speak a second time? That has been done before, I think in the case of a financial services Bill. Alternatively, a separate consent Motion could be provided, which is something that the Holyrood Parliament itself intends. Something needs to be done because it is not acceptable to allow the Bill to be finalised and matters of this importance to be sorted out thereafter.

[Lord Selkirk of Douglas (Con)]

My Lords, I should mention first that I was an MSP for the first eight years of the Scottish Parliament. I want to make a series of small points. The first is that an agreement between the Government and the devolved Scots Administration should not be beyond the wit of humankind, even in difficult circumstances. I hope that the Minister will keep negotiating and that his efforts will be rewarded with success.

I thought that the noble Lord, Lord Forsyth of Drumlean, not only made a persuasive case but made a particularly important point when he suggested that an amendment could be made saying that the Act must not commence until the fiscal framework was in place. My understanding is that the Bill cannot be implemented in the absence of an agreement as it requires a consent Motion in the Scottish Parliament. Without an agreement, no consent Motion will be passed. I hope that the Minister will look very carefully at my noble friend’s proposal.

[Lord Forsyth of Drumlean]

My proposal was that the Act should not commence until this House and the House of Commons had approved the fiscal framework. My noble friend is right that the only parliament that is going to be able to consider this Bill in the context of the fiscal framework is the Scottish Parliament, and that seems a bit odd to me.

[Lord Selkirk of Douglas]

My noble friend’s suggestion does not seem to have the disadvantages of the amendment, which I will come to in a moment, and I hope that it will be looked at sympathetically in some form because it could be an important step forward.

There is of course frustration in the Scottish Parliament about this. The convener of the Devolution Committee, Bruce Crawford MSP, recently stated there would be “a substantial impact” on the ability of the Scottish Parliament to go through the process of proper scrutiny. Obviously he was referring to what he regarded as unreasonable delays. He expects the teams from Holyrood and Westminster to appear before his committee tomorrow to give a full explanation of their position on a fiscal framework, whatever the circumstances. There is a strong group of 15 Tory MSPs in the Scottish Parliament. To the best of my knowledge they want the Bill to proceed, and they are the third largest group.

My concern is based on two factors. This could become a major issue in the forthcoming elections to the Scottish Parliament on 5 May. If there is no agreement, the Scottish electorate will most certainly want to know who to blame. If the Bill fails because the Scottish Government shrink from accountability then the SNP will have to take responsibility, but if the Bill fails because the noble Lord’s amendment delays it unreasonably then this House and unionist parties could become a lightning conductor for criticism.

My most important reservation is that the amendment could lead to a serious weakening of the United Kingdom. Noble Lords may wonder what the Scots really want. I think that the answer is given in three ways: in opinion polls, in the referendum and in the recent general election. My interpretation of the referendum was that there is a decisive majority in Scotland for the United Kingdom. That means that the Scots will want to keep the UK intact, which should be remembered and never forgotten. My interpretation of the general election results in Scotland was that it was a clear indication that a large majority of the Scottish people wish to have a Scottish Parliament with increased powers and responsibilities, and within a reasonable timescale. I do not wish this House to do anything that would give the SNP a major propaganda coup during an election because I am a passionate supporter of the United Kingdom.

There are three difficulties with the amendment. First, it could be used to prevent the promises made by the Prime Minister and other party leaders being fulfilled. That could easily enrage the Scottish electorate on the basis that promises should be kept. The second difficulty is that the timing is not totally convenient because the Scottish election campaign will pick up on this and it could become a major issue. The third and most important consideration is that the United Kingdom probably stands a very much better chance of long-term survival if we do not unreasonably delay this Bill. In short, it is the kind of amendment that could trigger the law of unintended consequences.

Finally, I had the privilege of working under my noble friend Lord Forsyth in the Scottish Office. I have no hesitation in saying that he was a very strong, powerful and highly effective Secretary of State, frequently coming up with extremely interesting and exciting new ideas. I will mention one of them as an example. He wished the Stone of Destiny to be returned to Scotland and he got his way: that was a tremendous achievement. The Stone of Destiny was put in a “Stonemobile”, and there was a terrific reception in Edinburgh Castle. Of course, the Scots were not going to be satisfied merely with a stone: they wanted more. I recall a story that when the Stone of Destiny was originally pinched from Westminster Abbey by some youngsters of a nationalist disposition, and the police were searching for it, a Scotsman from the back of beyond telephoned the police and said that he knew who the thief was. The police officer went round to see him and took out his notebook, and the old man said, “It was King Edward I”.

As I have said before, finding a really satisfactory way forward in this area is very much like walking a tightrope. The noble Lord, Lord Smith of Kelvin, put it very well when he said:

“The new powers set out in the Scotland Bill will lead to a transformation of the powers held by Holyrood and it would be a terrible shame if they were to fall away at this late stage”.

My noble friend Lord Forsyth of Drumlean has put forward an amendment that might be entirely logical, but the potential disadvantages, in my view, outweigh other considerations. Above all, we at all times have to keep in mind the essential need to protect, maintain and sustain the United Kingdom.

[Lord Purvis of Tweed (LD)]

If the House will allow me to make a brief observation about the process, I will not detain it much longer. I believe that this Bill should proceed today to the clauses. It is a balanced judgment: the noble and learned Lord, Lord Hope, made a very valid point in saying that the amendments on the Order Paper would not have been meaningfully impacted upon even if there had been an agreement. However, the question is whether there would have been amendments in light of the agreement if it had been made in a timely manner. That means that the Minister needs to give a bit more information when he winds up this short debate on the amount of scrutiny that is going to be afforded to the fiscal agreement, not only in this House but in another place. Half a day of Report stage might not, I venture, be sufficient.

To paraphrase many whom I have heard over the past 24 hours, we need to progress with a heavy heart, because we are in unfortunate circumstances. They are unfortunate because there has been considerable press coverage, even though the Minister had said that this was a negotiation in private. However, the circumstances of these negotiations go far beyond the previous legislation to which he referred. The adjustment of the block grant will now require a permanent and significant constitutional mechanism given the very large extent of the powers that will be transferred to the Scottish Parliament, and it requires considerable scrutiny. Later on we will debate the adjustment, not only for fiscal powers but for welfare powers, and its financial implications. For the first time, the Scottish Government will have current revenue borrowing powers, which, similarly, are part of the negotiations. Most important, however, is that these discussions are pertinent not just to Scotland—the implications will be much wider for the constitutional arrangements we have across the whole of the United Kingdom.

Scotland Bill

Lord Selkirk of Douglas Excerpts

Tuesday 8th December 2015 Lords Chamber

[Baroness Liddell of Coatdyke (Lab)]

My Lords, we have spent more than two hours arguing more or less about the number of angels dancing on the head of a needle. Ultimately the power of this Parliament, and any Parliament, derives from the people. Sovereignty for any Parliament derives from the will of the people. If the will of the people changes then the legislation will change and the future of Parliaments will change.

I do not want to intrude on the personal grief on the government Benches because much of the argument has come from there, but we have to concentrate on trying to move on into how we can make this legislation more relevant to the complex society that we have. There has not been much evidence of that so far. I greatly regret the fact that I never studied law—well, I used to greatly regret that—but I have to say at the end of this afternoon, thank goodness.

[Lord Selkirk of Douglas (Con)]

My Lords, Amendment 2, moved by the noble Lord, Lord Forsyth, can be legitimately accepted by Ministers on the basis that it is a more accurate assessment of the present situation.

When I first became an advocate I was summoned by the Solicitor-General. I went up to him, not knowing what he was going to say, and he said he wanted to know whether I would become a parliamentary counsel. At that time I had not the faintest idea what a parliamentary counsel was so I said I would give him an answer as soon as possible. I then learned that a parliamentary counsel was merely a draftsman, and I fear that if I had given the wrong answer I might still be one of the draftsmen drafting the provisions of this Bill, rather than being given the privilege to comment on the best way forward.

There is no question but that the view generally taken is that the Scottish Parliament is there on a lasting basis and on the basis of permanency. There is no doubt whatever that this Parliament is sovereign and that one Parliament cannot bind future Parliaments. The results of the referendum and the general election both pointed in the direction of the maintenance and security of the United Kingdom, and also of greater powers for the Scottish Parliament. In some ways, we are having to walk a tightrope reconciling those two different aims. However, I believe there is room for manoeuvre, and this is a very small adjustment which the noble Lord, Lord Forsyth, is suggesting. Without losing anything of the political declaratory nature of the first provisions of the Bill, the amendment could legitimately be looked at and acceded to.

[Lord McAvoy]

My Lords, the Government in their wisdom accepted the Labour amendment in the other place to reflect the Bill as it is. We support that. We think that it was very wise of the Government to do so. It puts the permanency of these institutions beyond any doubt. We all know the law regarding ultimate sovereignty but nevertheless it would be foolish—I am repeating myself—to reject the symbolism of having that in the Bill, so for those reasons we oppose the amendment moved by the noble Lord, Lord Forsyth.

Scotland Bill

Lord Selkirk of Douglas Excerpts

Tuesday 24th November 2015 Lords Chamber

[Lord Selkirk of Douglas (Con)]

My Lords, it is a very great pleasure to congratulate my noble friend Lady McIntosh of Pickering. Her speech was excellent and we look forward to very many more. She and I have both been advocates at the Scots Bar, but unlike many parliamentarians she has been both an MEP and an MP. Our training as advocates helps us to think straight—I like to hope so, at any rate. She will find this House full of dedication and good humour and—usually—engaging in the pursuit of excellence. I wish her every success and happiness here in the years to come. I also congratulate the noble Lord, Lord Campbell of Pittenweem, on a characteristically memorable speech. It seems like only yesterday that I was his junior counsel in a thoroughly traumatic and tragic murder case. We are extremely glad to see him here and welcome his great experience, including as chancellor of St Andrews University, and his substantial expertise. His point about Scotland’s security will be an important marker in a debate which looks as if it will continue for a long time.

It will come as no surprise that I support the Bill and wish the Minister success with it. I do not think this House should try to halt its progress, as recommended by the Economic Affairs Committee. I fully appreciate the importance of the United Kingdom and Scottish Governments agreeing on a fair and workable fiscal framework in which to embed the new financial arrangements, but it should surely not prove beyond the wit of man and woman to reach such an agreement in the near future without any intervention from this House which would be both misinterpreted and badly received. When he winds up, it would be helpful if the Minister informed the House of his willingness to update it on the negotiations between the Treasury and the Scottish Government. I have a past interest in the first Scottish Parliament, since I served two terms as an MSP. I remember the excitement, enthusiasm and optimism of the opening day, which included a fly-past by Concorde and the Red Arrows.

[Lord Forsyth of Drumlean]

Does my noble friend really mean that he would like to see the Bill pass out of this Parliament, even if we have not got the fiscal framework and even if that resulted in Scotland being greatly disadvantaged?

[Lord Selkirk of Douglas]

My noble friend misunderstands the purpose of what I was saying. It would of course be 100% better if we had the fiscal framework before us. I hope the Minister will assure us that he will report back to the House on the progress of his discussions with the Scottish Government, because that is very important. However, if a Bill went through this Parliament on a subject which came under the devolved powers of the Scottish Parliament and that Parliament found it wholly unacceptable, it would not be implemented. I am not too concerned about the Minister asking for more time. He should be given the benefit of the doubt and supported. I hope he will come back with an agreement and that his confidence has not been misplaced.

I served as a member of the Calman commission which first reviewed the progress of devolution in the UK. It reported in 2009 and proposed an increase in the Parliament’s powers that is just beginning to come into force. We now have a Scotland Bill before us which gives extensive new powers to Holyrood promised in the famous vow. It is worth stressing that the noble Lord, Lord Smith of Kelvin, who chaired the all-party commission, is on record as stating that he believes that the promises in the vow have been met by the legislation proposed so far, as does Gordon Brown, who intervened so passionately during the referendum campaign. I very much hope that the new powers over setting a Scottish income tax and welfare spending will be available by 2017. This will mean that all parties in Scotland will have to publish their tax and spending plans in their manifestos for the election next May. For the very first time there should be no hiding place, especially for those who have taken refuge for years in simply blaming the United Kingdom Government for every financial problem. Accountability and transparency will be greatly enhanced and it is to be hoped that, instead of arguing endlessly about process, all Scotland’s politicians will have to convince the voters of the benefits of their policies.

One of the SNP’s former top advisers recently declared, in a powerful critique, that the economic plan for independence which it put forward last year is “broken beyond repair”, and that the Scottish Government currently have no credible alternative to Tory financial plans. For their part, however, unionists must not appear grudging and disgruntled at the progress of events since September 2014. There have been more than enough predictions of doom and gloom. Instead, I welcome the reality that the Scottish electorate will soon have the opportunity to make very important decisions about the kind of Scotland in which they wish to work, live and care for their families. I hope they will conclude that this legislation offers them a constitutional framework within which they can enjoy the best of both worlds: having one of the most powerful devolved Parliaments in the world, operating within the wider parameters of a very strong and extremely successful United Kingdom.