Hansard

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...