Chamber
Meeting of the Parliament 17 December 2013
17 Dec 2013 · S4 · Meeting of the Parliament
Item of business
Landfill Tax (Scotland) Bill
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 progressed.
As we know, the Landfill Tax (Scotland) Bill will encourage and promote high levels of recycling and simplify the landfill tax system by making it more straightforward and easy to understand. As Scotland continues to build on the success of recycling and climate change policies, the amount of waste going to landfill will decrease, which is to be expected as we work towards achieving our climate change targets.
In evidence to the Finance Committee, the Cabinet Secretary for Finance, Employment and Sustainable Growth, John Swinney, said:
“My expectation is that, in the coming period, we will see a long-term reduction in the revenue from landfill tax. We accept that the success and effectiveness of recycling policies, which are part and parcel of the Scottish Government’s wider approach to achieving the emissions reductions that are required under climate change legislation, will result in a reduction in receipts from landfill tax. Clearly, we will need to deal with that as a Government.”—[Official Report, Finance Committee, 19 June 2013; c 2835.]
The bill also includes provisions for the taxation of illegal dumping, strengthening business opportunities for landfill operators to dispose of materials properly and effectively in accordance with the wider regulatory infrastructure. It will also bring all the activity into the Government’s wider environmental agenda for more sustainable waste disposal, while deterring criminal activity.
Although the Scottish Government has not made a specific estimate of the expected tax receipts from landfill in 2015-16, the Finance Committee recognises the significant difference between the predictions and projections for landfill tax receipts in Scotland, which we discussed in detail at stage 1.
In October, the Cabinet Secretary for Rural Affairs and the Environment launched “Zero Waste—Safeguarding Scotland’s Resources: Blueprint for a More Resource Efficient and Circular Economy”. That plan builds on the success of Scotland’s zero waste plan, identifying actions to shift the focus on to waste prevention and resource efficiency, thereby improving productivity and competitiveness. The strategy sets out how
“In a circular economy, we keep products and materials in use for as long as possible, extract the maximum value from them whilst in use, then recover and regenerate new products and materials at the end of each service life.”
The action plan aims to reduce waste in Scotland by 15 per cent over the next decade to improve competitiveness.
This bill will help Scotland meet its world-leading targets on climate change by establishing a tax system that supports the use of taxes and charges in environmental policy. That approach will compensate for environmental impact and encourage recycling by aligning tax with the aims of the zero waste plan, promoting high levels of recycling and diverting material resources from landfill into more sustainable forms of use.
The bill will also help businesses by ensuring that market distortions caused by illegal operations do not undermine legitimate business ventures, and it will simplify and streamline the administration and collection of landfill taxes by establishing a system that is simple, efficient and easy for landfill operators to understand and comply with. Collection and enforcement will align with the principles of better regulation. A tax credit scheme is incorporated that provides an incentive to operators of landfill sites to contribute financially to projects that meet environmental and social objectives.
15:48
As we know, the Landfill Tax (Scotland) Bill will encourage and promote high levels of recycling and simplify the landfill tax system by making it more straightforward and easy to understand. As Scotland continues to build on the success of recycling and climate change policies, the amount of waste going to landfill will decrease, which is to be expected as we work towards achieving our climate change targets.
In evidence to the Finance Committee, the Cabinet Secretary for Finance, Employment and Sustainable Growth, John Swinney, said:
“My expectation is that, in the coming period, we will see a long-term reduction in the revenue from landfill tax. We accept that the success and effectiveness of recycling policies, which are part and parcel of the Scottish Government’s wider approach to achieving the emissions reductions that are required under climate change legislation, will result in a reduction in receipts from landfill tax. Clearly, we will need to deal with that as a Government.”—[Official Report, Finance Committee, 19 June 2013; c 2835.]
The bill also includes provisions for the taxation of illegal dumping, strengthening business opportunities for landfill operators to dispose of materials properly and effectively in accordance with the wider regulatory infrastructure. It will also bring all the activity into the Government’s wider environmental agenda for more sustainable waste disposal, while deterring criminal activity.
Although the Scottish Government has not made a specific estimate of the expected tax receipts from landfill in 2015-16, the Finance Committee recognises the significant difference between the predictions and projections for landfill tax receipts in Scotland, which we discussed in detail at stage 1.
In October, the Cabinet Secretary for Rural Affairs and the Environment launched “Zero Waste—Safeguarding Scotland’s Resources: Blueprint for a More Resource Efficient and Circular Economy”. That plan builds on the success of Scotland’s zero waste plan, identifying actions to shift the focus on to waste prevention and resource efficiency, thereby improving productivity and competitiveness. The strategy sets out how
“In a circular economy, we keep products and materials in use for as long as possible, extract the maximum value from them whilst in use, then recover and regenerate new products and materials at the end of each service life.”
The action plan aims to reduce waste in Scotland by 15 per cent over the next decade to improve competitiveness.
This bill will help Scotland meet its world-leading targets on climate change by establishing a tax system that supports the use of taxes and charges in environmental policy. That approach will compensate for environmental impact and encourage recycling by aligning tax with the aims of the zero waste plan, promoting high levels of recycling and diverting material resources from landfill into more sustainable forms of use.
The bill will also help businesses by ensuring that market distortions caused by illegal operations do not undermine legitimate business ventures, and it will simplify and streamline the administration and collection of landfill taxes by establishing a system that is simple, efficient and easy for landfill operators to understand and comply with. Collection and enforcement will align with the principles of better regulation. A tax credit scheme is incorporated that provides an incentive to operators of landfill sites to contribute financially to projects that meet environmental and social objectives.
15:48
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. ...