Committee
Enterprise and Culture Committee, 07 Mar 2007
07 Mar 2007 · S2 · Enterprise and Culture Committee
Item of business
Subordinate Legislation
Debt Arrangement Scheme (Scotland) Amendment Regulations 2007 (draft)
Whatever happens, there will be a new Executive in place, and nothing I say can commit it to a decision. Theoretically, the new Executive could abandon the commitment that I have given to introduce debt relief, as well as the freezing of interest charges in the debt arrangement scheme, because those measures are introduced by regulation. In the 2002 act, we took powers only to enable ministers to do that.Free advice has been raised. We have to work in the marketplace that exists. In the absence of free money advisers, it is difficult to impose duties on people to make available information that does not exist. The regulations are not intended in any way to restrict the supply of free money advisers in the marketplace. We need to increase the number of advisers to get people into the DAS. It is a virtuous circle—if we increase the number of advisers, we should increase the number of people who access the DAS.Citizens Advice Scotland's submission seems to mix up two things. As members know, we will introduce low income, low asset regulations that will give people in that category the opportunity, for the first time, to access debt relief. They are likely to be clients with £50 a month of disposable income rather than people whom we would encourage to enter debt arrangement schemes so that they have the option of getting out of debt without having recourse to bankruptcy or another more punitive form of diligence. The example that Citizens Advice Scotland chose was not the best it could have chosen of the type of client whom we would expect to benefit from debt interest relief.There is a sliding scale of debtors with disposable income. We need to consider where debt relief, as well as debt interest freezing, will kick in. I hope that that will be done over the next year.
In the same item of business
The Convener:
SNP
I invite the minister to speak to the regulations.
Allan Wilson:
Lab
When I commended the Bankruptcy and Diligence etc (Scotland) Bill to Parliament on 24 May 2006, I made a commitment to introduce at stage 2 an element of deb...
The Convener:
SNP
Thank you. I know that Christine May has some questions.
Christine May (Central Fife) (Lab):
Lab
The minister will be aware that Citizens Advice Scotland has given committee members a briefing. For the purposes of clarification, I will briefly go through...
The Convener:
SNP
I will take all members' questions now, so that the minister can answer them together.
Shiona Baird (North East Scotland) (Green):
Green
Christine May has covered the main issue that I wanted to raise—the removal of the requirement to provide free advice. That would be counterproductive. If th...
Allan Wilson:
Lab
The short answer to all three of Christine May's questions is yes. The caveat to my answer is that a new Administration will be in place after 3 May.
The Convener:
SNP
Is that a forecast?
Allan Wilson:
Lab
No—I think you will find that it is a certainty.
Christine May:
Lab
Is anyone betting on it?
Allan Wilson:
Lab
Whatever happens, there will be a new Executive in place, and nothing I say can commit it to a decision. Theoretically, the new Executive could abandon the c...
The Convener:
SNP
The minister has covered all the issues that have been raised.
Motion moved,
That the Enterprise and Culture Committee recommends that the draft Debt Arrangement Scheme (Scotland) Amendment Regulations 2007 be approved.—Allan Wilson.
Motion agreed to.