William Bain
Main Page: William Bain (Labour - Glasgow North East)Department Debates - View all William Bain's debates with the Scotland Office
(12 years ago)
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David Mundell
I am sure that that is a matter on which the hon. Gentleman and many others hold a view but on which the Government do not.
The Select Committee on Scottish Affairs has produced an interesting report on the future of the Crown Estate in Scotland. Obviously, the Government welcome the assiduous work carried out in preparing the report. I am surprised that its Chairman, the hon. Member for Glasgow South West (Mr Davidson), who usually plays a robust part in these deliberations, is not present. I had anticipated his having something to say about his report. However, the Government will consider it in due course. I understand that it has been debated in the Scottish Parliament, where the devolution of Crown Estate activities directly to local communities found support, at least among opposition parties there.
On that basis, I hope that the House will agree with the Lords amendments.
Mr William Bain (Glasgow North East) (Lab)
As we begin debating the Lords amendments, I hope the House will consider it appropriate for the Opposition to mark the significance of what is likely to be our final consideration of the Scotland Bill. If it receives Royal Assent in the coming days, the Bill will represent the largest devolution of financial powers to Scotland in 300 years; will make decisions on spending and taxation more transparently accountable to the Scottish Parliament than at any time since 1999; and create new borrowing powers with the potential to boost economic growth significantly.
This enhancement of devolution is the culmination of a four-year process of cross-party and cross-societal constitutional reform through the Calman commission, which was established by Wendy Alexander and other pro-devolution party leaders in Scotland. Its outcome was accepted in a White Paper by my right hon. Friend the Member for East Renfrewshire (Mr Murphy); was assisted by my hon. Friends the Members for Glasgow North (Ann McKechin) and for Rutherglen and Hamilton West (Tom Greatrex) in various capacities; and has been implemented with cross-party support by the coalition Government.
It is also welcome that the Scottish Government have finally indicated their assent, if not warm-hearted approval, for the Bill, after a significantly longer and more circuitous journey to reach that position than that undergone by Scotland’s other political parties.
The Secretary of State for Scotland (Michael Moore)
I would like to pay tribute to the hon. Gentleman, his colleague the shadow Secretary of State, the hon. Members for Glasgow North (Ann McKechin) and for Rutherglen and Hamilton West (Tom Greatrex) and those from all parties in the House and elsewhere who have helped to make this Bill what it is today. I hope that the hon. Member for Glasgow North East (Mr Bain) will agree that this is a good model for how parties should work together to produce consensus and plan, and then devolve significant powers to Scotland.
Mr Frank Roy
Will my hon. Friend confirm that, in effect, this really is devo-max?
Mr Bain
It is intriguing. We have several descriptions: “indy-lite”, “devo-plus”, “devo-max”. Various formulations for additional powers have been put out for public discussion. I think this is “devo-positive”. It will give the Scottish Parliament additional democratic legitimacy by enabling it to raise about 35% of what it spends—far more than at present—but without the race to the bottom with other countries or parts of the United Kingdom on tax rates, including corporate tax rates, which would be very damaging for growth.
Ian Murray (Edinburgh South) (Lab)
Lots of adjectives have been attached to the word “devo” with regards to the debate about the constitutional settlement in Scotland. Given that the Scottish National party supported it, then did not support it, then supported it again, then did not support it, then supported it again, could this be “devo-hokey cokey”?
Stewart Hosie
The hon. Gentleman’s introductory remarks are interesting. Can we take it, given that he is speaking from the Opposition Front Bench, that the position of the British Labour party is no devolution of corporation tax to Scotland, under any circumstances, even if the evidence tells us that the power it might give would be incredibly beneficial for jobs and working people?
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I might be able to help. I know that Mr Bain will come straight back to the amendments and that we will not drift any further.
Mr Bain
I am sure that if the hon. Gentleman wishes to make that intervention again when we discuss the implementation of tax powers, Mr Deputy Speaker, you might view it in order for me to address it then.
On the specific amendments, we support the provisions that make clearer the circumstances and criteria for Scottish Ministers to make orders in relation to the conduct of Scottish parliamentary elections. Those powers will be largely devolved to the Scottish Parliament under clause 3. We also agree with amendments 7 and 8, which resolve any remaining drafting ambiguities in relation to the change in the legal name of the Scottish Executive to “the Scottish Government” in clause 15. We also have no difficulty with amendments 10 and 11, which amend clause 22 to alter the Crown Estate commissioner’s name to
“Crown Estate Commissioner with special responsibility for Scotland”
to denote the special status that one of the Crown Estate commissioners will have, should the Bill become law.
In short, then, the Opposition support the amendments.
Mr Bain
This group of amendments is a result of agreement between the UK and Scottish Governments on the legislative consent motion passed last week by the Scottish Parliament, giving its assent to the transfer of powers prospectively made by the Bill.
Lords amendment 2 would remove clause 7, which creates new arrangements for the partial suspension of a Bill passed by the Scottish Parliament, subject to a reference made by the Advocate-General for Scotland, the Attorney-General or the Lord Advocate to the Supreme Court under section 33 of the Scotland Act 1998. The Scottish Government said that that could delay the overall implementation of affected Bills, and have thus invited this House to consider the merits of the existing arrangements. We consider that the existing judicial processes have worked sufficiently well in ensuring that the Scottish Parliament legislates within its powers, and that any incompatibilities found to arise by the Supreme Court in Bills pre-Assent or Acts post-Assent can be dealt with by amending legislation at Holyrood. We are therefore minded to accept the amendment.
Lords amendment 5 would remove clause 12, which re-reserves to the UK Parliament certain aspects of insolvency law in Scotland—on the winding-up of companies, the effect on diligence, prior transactions and the insolvency of social landlords. Personal insolvency and receiverships remain entirely devolved to Holyrood, and administrations and company voluntary agreements remain a responsibility of this Parliament as they affect Scotland. Lords amendment 26 would remove schedule 2, which makes the consequential changes to insolvency law required if clause 12 remains part of the Bill.
Lords amendment 6 would remove clause 13, which re-reserves the regulation of the medical professions in Scotland to the UK Parliament. On Lords amendments 5 and 6, we note that the Scottish Parliament indicates in its legislative consent motion that it will aim to make regulation in both matters in a way that is consistent with regulation across the United Kingdom. Given that commitment, we see no reason to oppose either amendment.
Lords amendment 17 would remove clause 27, which permits Ministers in the UK Government to make a single order in relation to the implementation of international obligations applicable across the United Kingdom, whether they extend into devolved competences or not. A similar approach already exists in relation to EU obligations. The Scottish Government have made commitments on the continued implementation of non-EU international obligations. Given that, and given also the power of direction available to the UK Government in such matters under section 58 of the 1998 Act, we would not oppose Lords amendment 17.
Lords amendment 18 would add, after clause 37, a significant new clause creating a new obligation on both the UK and Scottish Governments to make an annual report to their respective Parliaments on the progress made toward implementing the new tax and borrowing powers devolved to the Scottish Parliament by the Bill. We are aware that the Office for Budget Responsibility has already begun to make estimates of Scottish revenues from the tax responsibilities to be devolved, and has published, alongside its economic and fiscal outlook, estimates for this fiscal year and each successive year. In particular, it estimates revenues from the prospective Scottish rate of income tax at £4.4 billion this financial year, rising to £5.6 billion by 2016-17; revenues from stamp duty land tax at £328 million this financial year, rising to £536 million by 2016-17; and revenues from landfill tax at £123 million this financial year, rising to £157 million by 2016-17.
Fiona O'Donnell (East Lothian) (Lab)
The money derived from the landfill tax is currently ring-fenced in the UK, bringing back direct environmental benefits to communities. Does my hon. Friend know whether the Scottish Government will continue that approach?
Mr Bain
My hon. Friend raises a pertinent point, because although we hear demands for powers made by certain parties, no purpose is ever given for the devolution of those powers. It is a staggering omission that we know absolutely nothing about the future of stamp duty land tax, given that it is due to be devolved to Holyrood in just a few short years. We have heard about the lack of evidence provided for the devolution of other taxes, with the Institute for Fiscal Studies setting out convincing evidence in its “Green Budget” a few months ago that devolving corporation tax would involve a race to the bottom and be a very risky endeavour indeed.
Ian Murray
My hon. Friend is being incredibly generous in giving way again. Is it not the case that the setting of corporation tax was devolved to Northern Ireland simply to allow it to equalise its rate with the rate on the other side of the land border to the south? Indeed, the First Minister of Scotland’s speech at the Institute of Directors yesterday, in which he said that he would use the taxation powers only to equalise the rates, highlights why corporation tax should not be devolved to Scotland.
Mr Bain
The other implication of devolving corporation tax for it to be reduced to the levels that apply in the Republic of Ireland is that £2.6 billion would be lost from the Scottish block as a result. That would not be in the interests of economic growth, services, health or education in Scotland. As PricewaterhouseCoopers said in its report to Scottish Parliament’s Bill Committee on the Bill, the cut in corporation tax was only the 16th or 17th highest reason for companies investing in the Republic of Ireland, while most of the investment in the Republic of Ireland occurred when corporation taxes were not at the reduced level. The case for devolving corporation tax has therefore not been made. As we have seen in the past few days, with confusion over income tax policy and no rule on what debt levels a separate Scottish state would have, the First Minister’s plans for separation seem to be dissolving into yet another omnishambles.
Stewart Hosie
As we are debating this matter, can we have confirmation that the British Labour party is now completely opposed to the devolution of corporation tax to Scotland, even if the evidence was that it would benefit Scotland through economic growth and jobs for ordinary working people? Is that correct?
Mr Bain
Let me, as a member of the Scottish Labour party, tell a member of the London Scottish National party that our commission will look at the evidence on all fiscal matters. However, strong evidence has already been presented that goes against the devolution of corporation tax. No convincing evidence has been presented by either the Scottish Government or the Scottish National party to show how simply basing a policy on corporation tax would produce additional jobs and growth.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. The length of the hon. Lady’s intervention is stretching even my patience a little. We are not speculating about such matters; we are only discussing an amendment at this stage.
Mr Bain
Thank you, Mr Deputy Speaker. The hon. Lady tempts me to make future tax policy. However, the point she makes is that corporation tax is better levied and raised at UK level, and that is what we shall be defending in the debates on these amendments and the debates in the coming months.
The agreement between the UK Government and the Scottish Government provides that borrowing limits will be reviewed regularly, ahead of UK spending reviews by the Joint Exchequer Committee, and a consultation will be initiated on the Scottish Government being able to issue bonds. The annual reports will allow Members of this House and the Scottish Parliament both to scrutinise the detailed arrangements made by Her Majesty’s Revenue and Customs and the Scottish Government in the run-up to implementation and the first five years following the commencement of operation of the new fiscal powers, and to permit any remaining issues—such as the precise interpretation of the definition of a Scottish taxpayer, as raised by my hon. Friend the Member for Glasgow North (Ann McKechin) in Committee—to be resolved before the tax powers become active in April 2015. It is also our view that the reports will provide an opportunity to scrutinise arrangements made at Holyrood on the workings or replacement of stamp duty land tax. We welcome the new commitments on giving consideration to bond issuance by the Scottish Government, and the additional capacity that such borrowing powers will provide to the Scottish Government to make capital and infrastructure investments, which are vital for Scotland’s economic competitiveness.
The requirement to make annual reports will also show the strength of the financial powers being devolved by the Bill. The Scottish Consolidated Fund will have sufficient balance to ensure cash flow on the devolution of these new tax powers and to manage any excessive in-year volatility of tax receipts. It will also meet differences between forecast and out-turn receipts on income tax allocated to the Scottish Government at the beginning of the relevant fiscal year.
Mr Frank Roy
Presumably the safeguards that my hon. Friend just spoke about will not be there if Scotland separates from the United Kingdom. Is that the case?
Mr Bain
Indeed, one of the benefits of being part of the United Kingdom is that we enjoy a fiscal union in which there are significant fiscal transfers from the UK level to Scotland. The evidence published in January 2010 by my right hon. Friend the Member for East Renfrewshire (Mr Murphy), when he was Secretary of State for Scotland, indicated that in the 20 years running up to 2008, fiscal transfers of about £75 billion had taken place. That is the Union dividend; that is the benefit that Scotland has obtained from remaining part of the United Kingdom, and we will defend that in the debates in the coming months.
These powers to meet any differences between forecasts and actual receipts of income tax rise to a cumulative limit of £500 million and permit an annual increase in capital investment of up to £230 million per year, subject to a cumulative limit of £2.2 billion from the national loans fund, the Public Works Loans Board or commercial banks.
We welcome the fact that the Scottish Government have not persisted with their demands on the devolution in the Bill of corporation tax or excise duty, which would not be in the interests of the people of Scotland at this time. Finally, may I say that we offer our support for this amendment and the others in this group?
Mr Bain
Lords amendment 3 removes clause 10, and Lords amendment 4 inserts a new clause before clause 11 on the matter of provisions ceasing to be within the legislative competence of the Scottish Parliament.
Clause 10 would have permitted laws passed by the Scottish Parliament under a temporary transfer of powers—such as under a section 30 order—to remain in force after that transfer had come to an end. We note that the new clause widens the scope of the transfer, with the effect that any such laws, whether in the form of an Act of the Scottish Parliament or subordinate legislation, would have effect even where the competence of the Scottish Parliament to legislate had been removed, irrespective of whether this had been granted on a short or longer-term basis. We consider the new clause to remove any potential future ambiguities, and on that basis we are content to support Lords amendment 3.
Lords amendment 3 agreed to.
Lords amendments 4 to 8 agreed to.
Clause 17
The Lord Advocate: Convention rights and Community law
David Mundell
I beg to move, That this House agrees with Lords amendment 9.
David Mundell
I thank my right hon. and learned Friend for his comments. The proposals that form part of these amendments were part of the legislative consent motion that went before the Scottish Parliament and received unanimous support of that Parliament. Indeed, they were not opposed or spoken against by any Member of the Scottish National party, including the First Minister.
Lords amendment 20 would provide powers for compatibility issues to be referred to the High Court and the Supreme Court. That will enable such issues to be dealt with more quickly, where appropriate, which will be useful when a compatibility issue has implications for other cases. There are currently no time limits for appealing devolution issues in criminal proceedings to the Supreme Court. It is important that there is finality and certainty, especially for victims, in relation to criminal proceedings. Lords amendment 22 would impose time limits for seeking permission to appeal devolution issues from the High Court to the Supreme Court for devolution issues raised in Scottish criminal proceedings. The time limits are the same as those that will apply to compatibility issues.
Lords amendment 23 makes provision for a review to be arranged by the Secretary of State of the new compatibility issue procedure and of the introduction of time limits for certain devolution issue appeals. The review is to be carried out as soon as practicable after the provisions have been in force for three years. The review may be carried out earlier if that is considered appropriate. It will be wide ranging and will look at all aspects of the provisions and consider whether changes should be made. The UK Government and the Scottish Government have agreed that the review will be chaired by the Lord Justice General.
Lords amendments 24 and 25 make consequential amendments to clause 41.
Mr Bain
First, let me associate the official Opposition with the Minister’s remarks about Paul McBride. I also thank the right hon. and learned Member for North East Fife (Sir Menzies Campbell) for reminding the House of the importance of the Supreme Court in ensuring that institutions of government are exercised in accordance with the rule of law. That is a vital element of our constitution and one that must not go unheard in the House today.
Lords amendments 9 and 19 to 25 collectively omit clause 17 from the Bill and add new clauses before clauses 38 and 41 in respect of the relationship between the Supreme Court and the functions of the Lord Advocate in criminal prosecutions in Scotland, Acts of the Scottish Parliament thereby affected, and the role of the Advocate-General for Scotland.
Lords amendment 19 amends the Criminal Procedure (Scotland) Act 1995 to provide that the Advocate-General may take part as a party in criminal proceedings in Scotland in so far as they relate to a compatibility issue over the actions or omissions of a public authority relating to convention rights or EU law or over whether an Act of the Scottish Parliament or any provision thereof raises issues of compatibility with EU law or convention rights in Scottish criminal proceedings.
Lords amendment 20 makes further amendment to the 1995 Act to provide that when a compatibility issue arises in criminal proceedings in a court, other than any High Court of Justiciary proceeding heard before two or more judges, compatibility issues may be referred to the High Court of Justiciary. That may be required by the Lord Advocate or by the Advocate-General, if he is a party to the proceedings. In turn, the High Court of Justiciary may refer a compatibility issue to the Supreme Court, and may be required to do so by the Lord Advocate or by the Advocate-General, if he or she is a party to the proceedings.
Lords amendment 20 makes it clear that the role of the Supreme Court is restricted to determining the compatibility issue, whereby the case is then remitted back to the High Court of Justiciary for determination in the light of the Supreme Court ruling on the compatibility issues. That amends the relationship between the two courts, and while it preserves the ability of the Supreme Court to make entirely authoritative and decisive rulings on questions of the compatibility of the decisions of the Lord Advocate in relation to Scottish criminal proceedings and the prosecution system, it also ensures that the High Court of Justiciary is the judicial forum in which any convictions required to be reduced in the light of such a compatibility ruling are reduced.
Lords amendment 22 introduces a new clause that creates a time limit for application to the High Court of Justiciary in some cases, and to the Supreme Court in more serious criminal cases, of 28 days following the initial decision or, in the latter case, against the refusal to give permission for a compatibility reference. However, as the Minister suggested, that time limit can be extended by either court on the ground of equity.
Sir Menzies Campbell
I am grateful to the hon. Gentleman for giving way, as I deduced that he was about to conclude. Is it not important to remember that the case of Cadder raised the issue of the right to legal representation and advice for someone in police custody, and that the case of Fraser raised the issue of the responsibility of the prosecuting authorities to make available to the defence all relevant evidence, perhaps to assist the defence in making a stronger case? Given that those are fundamental human rights issues is it not the case that the Supreme Court is exactly the place to determine compatibility?
Mr Bain
I entirely agree with the right hon. and learned Gentleman. One of the strengths of the devolution settlement is that it allows a court of the seniority of the Supreme Court to make these determinations. It would have been wholly irresponsible to remove these basic protections from people in criminal cases in the way that other politicians in the Scottish Parliament sought to achieve.
We are content with the amendments that have been made by the Lords and we will support them in the Chamber today.
Lords amendment 9 agreed to.
Lords amendments 10 and 11 agreed to.
Clause 25
Speed limits
David Mundell
I beg to move, That this House agrees with Lords amendment 12.
Mr Bain
Lords amendments 12 to 16 would amend clauses 25 and 26 to devolve completely to the Scottish Parliament all aspects in relation to speed limits on all roads in Scotland. They follow the recommendation of the Calman commission and resolve the ambiguities and uncertainties that might have ensued from a partial devolution of the national speed limit for Scotland in respect of certain vehicles or roads.
We are pleased to support the amendments, and I echo the right hon. Gentleman’s thanks to the officials and team in the Scotland Office for piloting this hugely significant Bill on such a relatively smooth course through not just this House, but the other place. It now has the approval of the Scottish Parliament, too—no mean feat. On that basis, we on the Opposition Benches wish the Bill a speedy journey on its passage into law in the coming days.
Iain Stewart
I am very happy to support this group of Lords amendments and, indeed, the provisions in the Bill.
I must confess that this is an issue on which I have changed my mind. On Second Reading, I had concerns about creating different speed limits north and south of the border. I did not say so from any great constitutional position; I was very much wearing a “road safety” hat. I serve on the Transport Committee, and road safety is an issue that we take with great seriousness. Indeed, we are conducting an inquiry into it.
Drivers can get lulled into a sense of security on a long journey, and for long-distance drivers in particular, going up the M6 and then the M74, I was concerned that if the speed limit changed suddenly at Longtown or Gretna, depending on which way they were going, it could result in some road safety issues. But as part of the Committee’s inquiry we have been looking at different speed limits in different parts of the country, through managed motorway limits and other road safety measures, and by considering the evidence I have been persuaded that it is not the issue I thought it might be, so I am happy to welcome the changes before us. Rather than having the United Kingdom Government responsible for some speed limits and the Scottish Government responsible for others, it makes sense to group them under the auspices of one Government.
My only additional point, which echoes that of the hon. Member for Edinburgh North and Leith (Mark Lazarowicz), is that if we reach a situation in which there are differing speed limits on either side of the border, we will need proper signage and, through the Highway Code and the driving test, to explain those differences properly so that there is proper education and awareness.
With that small caveat, I am happy to support the Lords amendments, and in the last few seconds before I am cut off in my prime, I too congratulate and thank the officials who put together the Bill.