Chamber
Plenary, 24 May 2006
24 May 2006 · S2 · Plenary
Item of business
Bankruptcy and Diligence etc (Scotland) Bill: Stage 1
Not at the moment.
We have commented on land attachment in various contexts, including outwith the chamber. We think that the proposed threshold of £1,500 for the recoverable sum is too low. I have sympathy with the minister on this matter. I will not necessarily say what I think the level should be. This is not quite the wisdom of Solomon, but I think that £1,500 is too low and we need to review it. It could be too simplistic to propose that we take a percentage of someone's debt. How would that be calculated? What would we include and exclude? I ask the minister to review that provision and to speak to the interested parties, including CABx, to establish whether a consensus can be reached, not just among political parties but in the body politic, on what we think is a fair threshold.
The Enterprise and Culture Committee got it right with respect to land attachment. It would be inappropriate to use land attachment against principal or main dwelling-houses. We accept that there are some situations—albeit very few—in which people have significant equity, live in large houses and are flagrantly at it. Aggrieved creditors should have the opportunity to go to court in such instances. We should not, however, allow land attachment to be used as a threat at that stage. That could undermine—
We have commented on land attachment in various contexts, including outwith the chamber. We think that the proposed threshold of £1,500 for the recoverable sum is too low. I have sympathy with the minister on this matter. I will not necessarily say what I think the level should be. This is not quite the wisdom of Solomon, but I think that £1,500 is too low and we need to review it. It could be too simplistic to propose that we take a percentage of someone's debt. How would that be calculated? What would we include and exclude? I ask the minister to review that provision and to speak to the interested parties, including CABx, to establish whether a consensus can be reached, not just among political parties but in the body politic, on what we think is a fair threshold.
The Enterprise and Culture Committee got it right with respect to land attachment. It would be inappropriate to use land attachment against principal or main dwelling-houses. We accept that there are some situations—albeit very few—in which people have significant equity, live in large houses and are flagrantly at it. Aggrieved creditors should have the opportunity to go to court in such instances. We should not, however, allow land attachment to be used as a threat at that stage. That could undermine—
In the same item of business
The Deputy Presiding Officer (Trish Godman):
Lab
The next item of business is a debate on motion S2M-4269, in the name of Allan Wilson, on the general principles of the Bankruptcy and Diligence etc (Scotlan...
The Deputy Minister for Enterprise and Lifelong Learning (Allan Wilson):
Lab
Credit, as members will know, is essential in our modern economy. In the past 20 years, credit markets have been opened up and getting credit is easier and, ...
Murdo Fraser (Mid Scotland and Fife) (Con):
Con
One issue that the Enterprise and Culture Committee considered is the rising trend of personal bankruptcies. Reflecting on what has happened south of the bor...
Allan Wilson:
Lab
As Murdo Fraser knows, we have deliberated that issue and listened to that claim. I put it to the member that no direct evidence exists that the claim is tru...
John Swinburne (Central Scotland) (SSCUP):
SSCUP
Does the bill contain any measures to tackle what I call junk mail debt? Everyone is inundated with junk mail that promises instant access to £3,000 or £5,00...
Allan Wilson:
Lab
The short answer is no. The member is talking about the credit side of the credit-debt coin. As I have said, access to credit is good for individuals and the...
Fergus Ewing (Inverness East, Nairn and Lochaber) (SNP) rose—
SNP
Allan Wilson:
Lab
Sorry, but I have a lot to get through.I will make a quick comment about floating charges, although perhaps they are not on everybody's agenda. We are workin...
Fergus Ewing:
SNP
Will the minister take an intervention?
Allan Wilson:
Lab
I think that I am about to move to my conclusion.
The Deputy Presiding Officer:
Lab
You have some time in hand, minister.
Fergus Ewing:
SNP
I accept a great deal of what the minister is saying. However, the new land attachment will be a radical, new and powerful weapon in the hands of creditors. ...
Allan Wilson:
Lab
I am sure that Fergus Ewing's intention is not to scaremonger. However, I take his point. I am sure that, as with private creditors, public creditors will we...
Christine Grahame (South of Scotland) (SNP):
SNP
Will the minister give way?
Allan Wilson:
Lab
If the member does not mind, I will develop the point, which is important. We are aware of the issue. I say to Fergus Ewing that we want to ensure not only t...
Tommy Sheridan (Glasgow) (SSP):
SSP
Will the minister give way?
Allan Wilson:
Lab
I will give way in a minute.Of course, the bill includes safeguards with regard to the length of time that the process will take and, importantly, to the acc...
The Deputy Presiding Officer:
Lab
Very briefly please, Mr Sheridan.
Tommy Sheridan:
SSP
Can the minister tell the chamber what safeguard will be put in place to prevent creditors using land attachment to scare the living daylights out of debtors...
The Deputy Presiding Officer:
Lab
You should be winding up, minister.
Allan Wilson:
Lab
I am sure that Tommy Sheridan has no intention of scaring the living daylights out of the population by suggesting that the Executive would suggest such a th...
The Deputy Presiding Officer:
Lab
Yes.
Allan Wilson:
Lab
I thought that I should ask. I could go on but, to be fair, there is a time limit. I am happy to respond to members' questions throughout the debate. I take ...
Mr Kenny MacAskill (Lothians) (SNP):
SNP
I welcome the minister's speech, his view that the bill should be dealt with consensually and his statement that he will deal with it inclusively. I am also ...
Tommy Sheridan:
SSP
Will the member take an intervention?
Mr MacAskill:
SNP
Not at the moment.We have commented on land attachment in various contexts, including outwith the chamber. We think that the proposed threshold of £1,500 for...
Tommy Sheridan:
SSP
Will the member take an intervention?
Mr MacAskill:
SNP
I think that I am out of time.
The Deputy Presiding Officer:
Lab
Yes, the member is out of time.
Mr MacAskill:
SNP
That could compound the problems of debt with the ignominy of homelessness. As well as asking the minister to review the £1,500 threshold, we ask him to ensu...