Chamber
Meeting of the Parliament 17 December 2013
17 Dec 2013 · S4 · Meeting of the Parliament
Item of business
Landfill Tax (Scotland) Bill
I welcome the fact that we have reached the stage 3 debate on the Landfill Tax (Scotland) Bill, which is the second bill establishing devolved taxes in Scotland under the powers in the Scotland Act 2012. The bill sets out the provisions and rules for a Scottish landfill tax that will replace the United Kingdom system of landfill tax from April 2015.
The devolved taxes will be administered using powers that are set out in the third bill establishing devolved taxes, which was introduced last week—the Revenue Scotland and Tax Powers Bill. As I explained to Parliament in June 2012, the arrangements for collection of the landfill tax will be undertaken by revenue Scotland working in conjunction with the Scottish Environment Protection Agency. The new body will be established and its powers will be granted through the Revenue Scotland and Tax Powers Bill.
I turn to the purpose of the Landfill Tax (Scotland) Bill. I want to see resource efficiency at the heart of our economy. The zero-waste agenda in Scotland is moving thinking about how resources are used and reused from the margins to the mainstream. Our priority for the future is supporting innovation and new ways of doing business as we move towards a more circular economy.
Putting the value of resources at the heart of our economy is an important priority for the simple reason that we live in a changing world, which is placing new pressures on how we manage the resources of this planet. The pressures from human population growth are huge and growing. According to the 2012 revision of the official United Nations population estimates and projections, the world population of 7.2 billion in mid-2013 is projected to increase by almost 1 billion people in the next 12 years, reaching 8.1 billion in 2025, with further rises beyond that.
That population is becoming increasingly affluent and urban. That means that our demands for resources are changing. We can no longer afford to throw material away in landfill sites. The actions that we are already taking are helping businesses to save money, create jobs and deliver economic growth.
Scotland’s targets on climate change and waste are among the most stretching anywhere in Europe. We are leading by example. We have shown multimillion pound support for innovation in renewables and low-carbon technologies. On collaboration, Scotland recently became the world’s first national Government to join the Ellen MacArthur Foundation’s group of 100 global leaders committed to accelerating a more circular economy.
We believe that our open, collaborative, international approach to tackling resource issues will deliver real benefits for Scotland. It will bring new domestic industries in reprocessing and manufacturing and new supply chain opportunities for resource managers, and it could create up to 12,000 new low-carbon jobs and up to £1 billion of additional economic activity.
Before devolution, we recycled less than 5 per cent of our household waste. Today, the figure is more than 40 per cent. That increase in recycling has saved more than 4 million tonnes of carbon emissions since 2001.
We are seeing a similar transformation in food waste, as 1 million households in Scotland now have access to a food recycling service whereas five years ago there were no such services. Our waste regulations, which will come into force in two weeks’ time, will also drive a step change in how businesses recycle. That will be a significant source of change and will show how we have used the devolved powers to maximum effect, taking decisive action to guarantee high-quality recycling.
By passing the Landfill Tax (Scotland) Bill this afternoon, the Parliament will be helping Scotland to keep the momentum as we make our economy truly sustainable by making landfilling prohibitively expensive. That will help to mitigate climate change, support economic diversification and create jobs in the process. Those are all substantial and desirable economic aims.
The landfill tax can be seen as the first and the most successful of the green taxes, and it continues to change waste management practices. The Scottish Government has given careful consideration to proposals for the landfill tax, and our proposals broadly reflect the existing United Kingdom landfill tax provisions, which are well understood by the waste industry and which are working well.
The devolved taxes will be administered using powers that are set out in the third bill establishing devolved taxes, which was introduced last week—the Revenue Scotland and Tax Powers Bill. As I explained to Parliament in June 2012, the arrangements for collection of the landfill tax will be undertaken by revenue Scotland working in conjunction with the Scottish Environment Protection Agency. The new body will be established and its powers will be granted through the Revenue Scotland and Tax Powers Bill.
I turn to the purpose of the Landfill Tax (Scotland) Bill. I want to see resource efficiency at the heart of our economy. The zero-waste agenda in Scotland is moving thinking about how resources are used and reused from the margins to the mainstream. Our priority for the future is supporting innovation and new ways of doing business as we move towards a more circular economy.
Putting the value of resources at the heart of our economy is an important priority for the simple reason that we live in a changing world, which is placing new pressures on how we manage the resources of this planet. The pressures from human population growth are huge and growing. According to the 2012 revision of the official United Nations population estimates and projections, the world population of 7.2 billion in mid-2013 is projected to increase by almost 1 billion people in the next 12 years, reaching 8.1 billion in 2025, with further rises beyond that.
That population is becoming increasingly affluent and urban. That means that our demands for resources are changing. We can no longer afford to throw material away in landfill sites. The actions that we are already taking are helping businesses to save money, create jobs and deliver economic growth.
Scotland’s targets on climate change and waste are among the most stretching anywhere in Europe. We are leading by example. We have shown multimillion pound support for innovation in renewables and low-carbon technologies. On collaboration, Scotland recently became the world’s first national Government to join the Ellen MacArthur Foundation’s group of 100 global leaders committed to accelerating a more circular economy.
We believe that our open, collaborative, international approach to tackling resource issues will deliver real benefits for Scotland. It will bring new domestic industries in reprocessing and manufacturing and new supply chain opportunities for resource managers, and it could create up to 12,000 new low-carbon jobs and up to £1 billion of additional economic activity.
Before devolution, we recycled less than 5 per cent of our household waste. Today, the figure is more than 40 per cent. That increase in recycling has saved more than 4 million tonnes of carbon emissions since 2001.
We are seeing a similar transformation in food waste, as 1 million households in Scotland now have access to a food recycling service whereas five years ago there were no such services. Our waste regulations, which will come into force in two weeks’ time, will also drive a step change in how businesses recycle. That will be a significant source of change and will show how we have used the devolved powers to maximum effect, taking decisive action to guarantee high-quality recycling.
By passing the Landfill Tax (Scotland) Bill this afternoon, the Parliament will be helping Scotland to keep the momentum as we make our economy truly sustainable by making landfilling prohibitively expensive. That will help to mitigate climate change, support economic diversification and create jobs in the process. Those are all substantial and desirable economic aims.
The landfill tax can be seen as the first and the most successful of the green taxes, and it continues to change waste management practices. The Scottish Government has given careful consideration to proposals for the landfill tax, and our proposals broadly reflect the existing United Kingdom landfill tax provisions, which are well understood by the waste industry and which are working well.
In the same item of business
The Deputy Presiding Officer (Elaine Smith)
Lab
The next item of business is a debate on motion S4M-08609, in the name of John Swinney, on the Landfill Tax (Scotland) Bill. I invite members who wish to spe...
The Cabinet Secretary for Finance, Employment and Sustainable Growth (John Swinney)
SNP
I welcome the fact that we have reached the stage 3 debate on the Landfill Tax (Scotland) Bill, which is the second bill establishing devolved taxes in Scotl...
Bruce Crawford (Stirling) (SNP)
SNP
I put on record my thanks to the Government for the way in which it has engaged with me on a matter concerning my constituents in Blanefield. We are grateful...
John Swinney
SNP
I welcome Mr Crawford’s comments. He has advanced the interests of his constituents in the Blanefield area using all means available to him through the legis...
The Deputy Presiding Officer
Lab
There is no time in hand. I call Iain Gray. You have a maximum of seven minutes, but I would like you to take less than that if possible.15:26
Iain Gray (East Lothian) (Lab)
Lab
In the stage 1 debate, I referred to the landfill tax as a new tax. In his closing speech in that debate, the cabinet secretary corrected me—it is, of course...
The Minister for Environment and Climate Change (Paul Wheelhouse)
SNP
Would the member accept that even in the worst-case scenario that is set out in “Low Carbon Scotland: Meeting our Emissions Reduction Targets 2013-2027. The ...
Iain Gray
Lab
I think that the minister has more confidence in RPP2 than I do, but let us see what happens as time unfolds.That said, on diversion from landfill and increa...
The Deputy Presiding Officer
Lab
I now call Gavin Brown, who has five minutes or less.15:33
Gavin Brown (Lothian) (Con)
Con
I think that the bill commands broad support across the chamber. It was a pretty good bill at stage 1 and it has been strengthened marginally during the stag...
The Deputy Presiding Officer
Lab
You are in your final minute.
Gavin Brown
Con
However, it is worth while to think more carefully about the ultimate policy objective of that. Is it simply to tax the same level of investigations as we cu...
The Deputy Presiding Officer
Lab
I am afraid that you must close.
Gavin Brown
Con
It is worth while to reflect on that. We will certainly support the bill this evening.
The Deputy Presiding Officer
Lab
We turn to the open debate. I am afraid that I can only give speeches of three minutes to four members. I apologise to the fifth member, whom I will not be a...
John Mason (Glasgow Shettleston) (SNP)
SNP
It is always good to welcome a new tax, although I take the point that the landfill tax is, in fact, a replacement tax and that it is probable that many peop...
Michael McMahon (Uddingston and Bellshill) (Lab)
Lab
Like the land and buildings transaction tax, the Landfill Tax (Scotland) Bill has been very technical, but it has had a remarkably straightforward and consen...
Kenneth Gibson (Cunninghame North) (SNP)
SNP
As convener of the lead committee, I first thank the clerks, officials and witnesses who helped the Finance Committee in its deliberations as the bill progre...
Malcolm Chisholm (Edinburgh Northern and Leith) (Lab)
Lab
An important argument in favour of increasing levels of fiscal devolution is that it can incentivise economic activity that brings more revenues to this Parl...
The Deputy Presiding Officer
Lab
I apologise to Jean Urquhart, whom I have been unable to call. Gavin Brown, you can have a maximum of four minutes.15:51
Gavin Brown
Con
This has been a pretty good, if short, debate, which did not differ enormously from the debate at stage 1. That reflects the fact that very little has change...
The Deputy Presiding Officer
Lab
I call Iain Gray. I apologise that I can give you only five minutes.15:55
Iain Gray
Lab
This has been a short but interesting debate. It has also been a bit of a Donald Rumsfeld debate because a lot of known unknowns have been discussed. We do n...
John Mason
SNP
I wonder whether the member will accept my main point, which was that we can put more faith in John Swinney than we can in George Osborne.
Iain Gray
Lab
The degree to which we have to put faith in Mr Swinney is exactly the point to which I am coming. I thought that Mr Mason was rising to apologise to the cabi...
John Swinney
SNP
It is a mark of the fact that there has been no real division on the substance of the debate that Mr Mason has been harangued by Mr Brown and Mr Gray. We sho...
Gavin Brown
Con
Does the cabinet secretary accept that one reason for having a three-year lead time was so that we could look at the twice-yearly estimates until a position ...
John Swinney
SNP
It is a lot more stable now because the original estimate was complete baloney. If the member goes back to the December 2012 forecast, he will see that liter...
Mike MacKenzie (Highlands and Islands) (SNP)
SNP
I wonder whether that would encourage us to take other OBR forecasts, for instance for oil and gas revenues, with a very large pinch of salt.
John Swinney
SNP
We have to take care on a lot of those issues. Mr MacKenzie knows that the Scottish Government has a different view from the OBR on oil and gas predictions. ...