Chamber
Meeting of the Parliament 18 April 2012
18 Apr 2012 · S4 · Meeting of the Parliament
Item of business
Scotland Bill
What struck me from our discussions in the Scotland Bill Committee on having more powers over income tax and how that would operate is that, as the SNP gets the opportunity to be handed more powers, it always seems to find an opportunity to complain about the process, rather than grasping the nettle and taking the powers forward. I sometimes wonder whether, if Scotland voted for independence, the SNP would be lost because part of its way of operating would be gone—it would not have London to complain about any more, which has been a substantial part of its modus operandi.
It is to be welcomed that the borrowing powers in the Scotland Bill have been extended. It is a matter of fact that we live in economically difficult times. The benefit of giving the Scottish Parliament greater opportunity to borrow and therefore to invest in capital infrastructure is that we will be able to create more jobs at a time of economic downturn.
As Mr Crawford said, the bill deals with other issues such as the provision of additional powers on landfill tax and stamp duty. Further, I believe that the opportunity provided by the bill to use the Scottish cash reserve will help with transition issues. Since the creation of the Scottish Parliament, the end-year flexibility fund has always had a surplus. Creating a Scottish cash reserve and the ability to build up moneys will be to the advantage of the Scottish Government.
The bill also has additional powers over air weapons, drink-driving limits and speed limits. There are cross-party concerns about drink driving and the number of accidents on our roads in Scotland. The additional powers will help to tackle those issues.
I welcome, too, the substantial discussions that have taken place on the issue of the UK Supreme Court. The finished product in that regard makes the process more efficient in terms of appeals and it tidies up the Scotland Act 1998 in relation to acts of the Lord Advocate.
Fundamental to the transition to the new tax system is the no-detriment principle. I welcome the fact that discussions have taken place and that a constructive agreement has been reached, so that both Governments can be satisfied that, as we move through the transition period, Scotland’s financial position will not be disadvantaged.
Labour believes that the bill should have gone further on a number of matters. We would have liked the borrowing ability to be extended by a greater amount. We have consistently argued that air passenger duty should be devolved. The business community has promoted that, and being able to decide that duty here would be a greater economic tool in Scotland’s toolbox. There was cross-party agreement on the Scotland Bill Committee on greater devolution of the Crown estate. My colleague David Stewart will hold a members’ business debate on that tonight, which I have no doubt will give us an opportunity to explore some of the issues in more detail.
Supporting the LCM does not mean that we should not allow ourselves to examine the SNP’s record. We should not forget that John Swinney decried the initial proposals as a poison pill. In the aftermath of the 2011 election, the First Minister made—from the seat that Bruce Crawford is in now—his clarion call for the six demands. Those demands have melted away to a damp squib. Part of the reason for that is that the case that was presented by the Scottish Government lacked detail—indeed, it had all the detail of a poorly prepared student essay. That is why the proposals melted away.
I will look at some of the proposals in a bit more detail. The Scottish Government said clearly that it would use corporation tax powers to lower that tax, but it must say how it would prevent corporations such as Amazon from avoiding paying corporation tax and how it would avoid a race to the bottom.
There are fundamental issues for the SNP as a party. It tries to put itself forward as a low-tax party, but the other side of low taxes is public spending cuts. Perhaps we should not be surprised about that, because the SNP Government goes into the council elections while passing on 89 per cent of all the cuts from the UK Government.
It is to be welcomed that the borrowing powers in the Scotland Bill have been extended. It is a matter of fact that we live in economically difficult times. The benefit of giving the Scottish Parliament greater opportunity to borrow and therefore to invest in capital infrastructure is that we will be able to create more jobs at a time of economic downturn.
As Mr Crawford said, the bill deals with other issues such as the provision of additional powers on landfill tax and stamp duty. Further, I believe that the opportunity provided by the bill to use the Scottish cash reserve will help with transition issues. Since the creation of the Scottish Parliament, the end-year flexibility fund has always had a surplus. Creating a Scottish cash reserve and the ability to build up moneys will be to the advantage of the Scottish Government.
The bill also has additional powers over air weapons, drink-driving limits and speed limits. There are cross-party concerns about drink driving and the number of accidents on our roads in Scotland. The additional powers will help to tackle those issues.
I welcome, too, the substantial discussions that have taken place on the issue of the UK Supreme Court. The finished product in that regard makes the process more efficient in terms of appeals and it tidies up the Scotland Act 1998 in relation to acts of the Lord Advocate.
Fundamental to the transition to the new tax system is the no-detriment principle. I welcome the fact that discussions have taken place and that a constructive agreement has been reached, so that both Governments can be satisfied that, as we move through the transition period, Scotland’s financial position will not be disadvantaged.
Labour believes that the bill should have gone further on a number of matters. We would have liked the borrowing ability to be extended by a greater amount. We have consistently argued that air passenger duty should be devolved. The business community has promoted that, and being able to decide that duty here would be a greater economic tool in Scotland’s toolbox. There was cross-party agreement on the Scotland Bill Committee on greater devolution of the Crown estate. My colleague David Stewart will hold a members’ business debate on that tonight, which I have no doubt will give us an opportunity to explore some of the issues in more detail.
Supporting the LCM does not mean that we should not allow ourselves to examine the SNP’s record. We should not forget that John Swinney decried the initial proposals as a poison pill. In the aftermath of the 2011 election, the First Minister made—from the seat that Bruce Crawford is in now—his clarion call for the six demands. Those demands have melted away to a damp squib. Part of the reason for that is that the case that was presented by the Scottish Government lacked detail—indeed, it had all the detail of a poorly prepared student essay. That is why the proposals melted away.
I will look at some of the proposals in a bit more detail. The Scottish Government said clearly that it would use corporation tax powers to lower that tax, but it must say how it would prevent corporations such as Amazon from avoiding paying corporation tax and how it would avoid a race to the bottom.
There are fundamental issues for the SNP as a party. It tries to put itself forward as a low-tax party, but the other side of low taxes is public spending cuts. Perhaps we should not be surprised about that, because the SNP Government goes into the council elections while passing on 89 per cent of all the cuts from the UK Government.
In the same item of business
The Deputy Presiding Officer (John Scott)
Con
The next item of business is a debate on motion S4M-02625, in the name of Bruce Crawford, on the Scotland Bill, which is United Kingdom legislation. I invite...
The Cabinet Secretary for Parliamentary Business and Government Strategy (Bruce Crawford)
SNP
The Scottish Government is today inviting the Parliament to consent to the Scotland Bill, which was introduced into the UK Parliament on 30 November 2010. Th...
James Kelly (Rutherglen) (Lab)
Lab
Can the cabinet secretary remind us of the six proposals that the Government made after the last election and tell us how many of them have been included in ...
Bruce Crawford
SNP
Every party in the chamber has publicly said that Scotland should be granted more powers than are currently in the bill. However, we live in pretty strange t...
David McLetchie (Lothian) (Con)
Con
How many proposals?
Bruce Crawford
SNP
I have just dealt with that point. Those proposals included a role for this Parliament in commencing the finance provisions of the bill as well as the remova...
The Cabinet Secretary for Education and Lifelong Learning (Michael Russell)
SNP
Nae point.
Bruce Crawford
SNP
Yes, there is nae point.Following negotiations between the Governments, a number of legislative and non-legislative measures have now been agreed to improve ...
Willie Rennie (Mid Scotland and Fife) (LD)
LD
The minister did not mention alcohol duty. Is that because he is embarrassed by the fact that he did not present the proposals until after the committee had ...
Bruce Crawford
SNP
I will take no lectures from anybody who is associated with the UK Government on issues to do with alcohol. The member is following us everywhere as far as t...
James Kelly (Rutherglen) (Lab)
Lab
I welcome the opportunity to take part in this afternoon’s debate on the Scotland Bill. I confirm that the Labour Party will support the motion at decision t...
John Mason (Glasgow Shettleston) (SNP)
SNP
Mr Kelly talks about more responsibility, but does he believe that the bill provides the right level of responsibility, or does he think that we should have ...
James Kelly
Lab
What struck me from our discussions in the Scotland Bill Committee on having more powers over income tax and how that would operate is that, as the SNP gets ...
Bruce Crawford
SNP
Given what he says, will the member explain how, in Stirling Council, in my constituency, the Labour Party, in conjunction with the Tories, was able to put f...
James Kelly
Lab
Make no mistake, Mr Crawford—the SNP Government is passing on £658 million of cuts to local councils. We will remind the SNP of that from now until polling d...
David McLetchie (Lothian) (Con)
Con
Like James Kelly, I commend Linda Fabiani for her convenership of the Scotland Bill Committee. I very much enjoyed my participation in it, as I enjoyed my pa...
Linda Fabiani (East Kilbride) (SNP)
SNP
It is interesting that we have just heard two representatives of the anti-independence parties, but they have not said anything yet about what they would wis...
Willie Rennie
LD
I note all the things that the member has said, but I think that she fails to understand the point. We made a submission to the commission as part of a proce...
Linda Fabiani
SNP
Can I presume that it is the same with broadcasting—the Lib Dem Steel commission wanted greater accountability for that—and excise duty? In the Lib Dem submi...
Neil Findlay (Lothian) (Lab)
Lab
The Calman commission was established by the then Labour leader Wendy Alexander prior to the 2011 election, and the subsequent Scotland Bill that emerged fro...
Joan McAlpine (South Scotland) (SNP)
SNP
Will the member take an intervention?
Neil Findlay
Lab
Not at the moment.I state openly that I hope that the Scotland Bill will enable a move forward to genuinely progressive taxation that seeks to redistribute t...
Joan McAlpine
SNP
Will the member take an intervention now?
Neil Findlay
Lab
I will not take one now, because you are mentioned later in my speech, so you will probably want to come in then.The First Minister wanted powers over excise...
Joan McAlpine
SNP
You expressed your concern about welfare. I think that this Parliament is united—certainly Labour and the SNP are united—in agreement that the welfare change...
The Deputy Presiding Officer (Elaine Smith)
Lab
I remind all members to speak through the chair.
Neil Findlay
Lab
I do not think that you are in a very strong position to argue over what you want in the Scotland Bill, since you did not want it in the first place.Of cours...
Linda Fabiani
SNP
Will the member give way?
Nigel Don (Angus North and Mearns) (SNP)
SNP
Will the member give way?
Neil Findlay
Lab
No, thank you.We should not be surprised by the SNP’s budget day backtrack—not just on this bill, but on everything else that it wanted to ditch. Saying one ...