Committee
Delegated Powers and Law Reform Committee 05 January 2016
05 Jan 2016 · S4 · Delegated Powers and Law Reform Committee
Item of business
Bankruptcy (Scotland) Bill: Stage 1
The bill is a consolidation bill, so its purpose is to bring the law into one document. Its purpose also relates to the wider purpose of our bankruptcy law in reflecting a balance between the interests of debtors and those of creditors. Having the provisions in one document will do a couple of things. First, as I have said, it will provide much-needed simplicity for people who need to refer to the law. Secondly, the fact that we are devoting quite a lot of time and effort to the task demonstrates the importance that the Scottish Government attaches to bankruptcy law and to making it accessible. If that were a fringe activity, we would not be here—we would not be legislating as we are. When I was in private practice, I spent countless hours poring over the Bankruptcy (Scotland) Act 1985, which, as I recall, followed from a royal commission. When the Bankruptcy (Scotland) Act 1993 came in, things became a little more complicated. Fortunately, I had escaped from private practice by the time the Bankruptcy and Diligence etc (Scotland) Act 2007 came in, which was followed by the Home Owner and Debtor Protection (Scotland) Act 2010 and, bringing up the rear, the BADAS act, as it is known on the streets. To have so many pieces of legislation that, between them, constitute the law in Scotland relating to bankruptcy makes no sense at all. Providing simplicity and accessibility of the law for everybody in Scotland—not only practitioners, but users—is inherently a good and sensible thing.
In the same item of business
The Convener
SNP
Item 2 is the Bankruptcy (Scotland) Bill. This item of business is for the committee to consider the drafters’ response to the committee’s questions on matte...
The Convener
SNP
Thank you. That takes us to agenda item 3—also the Bankruptcy (Scotland) Bill, on which we will take oral evidence. It is a great pleasure to welcome the M...
The Minister for Business, Energy and Tourism (Fergus Ewing)
SNP
Thank you very much, convener, and a good new year to you and everyone else who is gathered here this morning. I will make a few brief opening remarks, jus...
The Convener
SNP
Thank you very much, minister. You have outlined the rationale for the consolidation. I am sure that John Scott, who will start our questions, will want to k...
John Scott (Ayr) (Con)
Con
Good morning, minister. I wish you and your officials a good new year. How does the bill relate to the Scottish Government’s wider policy objectives on bank...
Fergus Ewing
SNP
The bill is a consolidation bill, so its purpose is to bring the law into one document. Its purpose also relates to the wider purpose of our bankruptcy law i...
John Scott
Con
Excellent. Thank you very much.
Richard Baker (North East Scotland) (Lab)
Lab
Good morning, minister. We have heard about the difficulties that users of the current bankruptcy legislation face, given the wide-ranging reforms that have...
Fergus Ewing
SNP
I think that we have proceeded in the correct way. It was necessary for us to introduce the Bankruptcy and Debt (Advice) (Scotland) Bill—it was sensible that...
Gregor Clark (Scottish Law Commission)
There comes a point when you have to decide to go for it. In recent years, there have been a lot of changes in this area of law. I am surprised that practiti...
Richard Baker
Lab
Thank you, Mr Clark. To follow up that matter, the minister explained the reasoning behind the approach that he had taken and the consequential approach on l...
Fergus Ewing
SNP
All the changes in the 2014 act were, as I understand it, brought into force by April 2015.
Graham Fisher (Scottish Government)
Yes—that is right. The 2014 act was brought into force on 1 April 2015.
Fergus Ewing
SNP
Therefore, given that the intention is that the bill, when enacted, will commence in April next year, there will be sufficient time for insolvency practition...
Alex Reid (Accountant in Bankruptcy)
The consolidation legislation’s commencement is anticipated for November this year rather than April next year. There will have been a significant period for...
Richard Baker
Lab
Thank you. The committee has also heard from officials about what was described as a “marginal hole” that would be created in the law of England and Wales sh...
Fergus Ewing
SNP
I have been briefed about some of the issues, but I am not aware of where we currently stand in relation to practice. With the convener’s permission, Mr Fish...
The Convener
SNP
Yes.
Graham Fisher
We are in on-going discussions with the UK Government to try to agree the detail of the section 104 order. That is proceeding in line with the timetables tha...
Richard Baker
Lab
Thank you. I think that we would like to be reassured that the section 104 order is on track. However, as you have described the situation, that appears to b...
Stewart Stevenson (Banffshire and Buchan Coast) (SNP)
SNP
Mr Fisher referred to “a lot of departments”—the Westminster departments that will be impacted by the bill. I am sure that there is goodwill and willingness ...
Graham Fisher
I think that I mentioned before in evidence that the intention is very much that there will not be a gap in timing and that the section 104 order will take e...
Stewart Stevenson
SNP
Do forgive me, because although I am absolutely certain that what you say is correct today, schedules are schedules and implementation is another matter. I r...
Graham Fisher
Yes. You are right that in the event of discontinuity such as that to which you referred happening—which I do not think is a significant possibility—it would...
Richard Baker
Lab
This is my final question. The committee heard at its evidence session on 17 November about the Scottish Government’s plans to lay a package of secondary leg...
Fergus Ewing
SNP
I can tell you that we work closely with stakeholders, including the money advice sector, ICAS and bodies such as R3 Association of Business Recovery Profess...
Alex Reid
We will be working on bringing in subordinate legislation along with the consolidation legislation. Within that there will be the opportunity to consolidate ...
Richard Baker
Lab
Thank you.
John Mason (Glasgow Shettleston) (SNP)
SNP
There have clearly been quite a lot of significant changes in bankruptcy law in recent years, which is why we have reached the point of consolidation. Minist...
Fergus Ewing
SNP
The basis for reaching the conclusion that it is unlikely that there will be changes that are as significant in the next few years as those that have been ma...