Meeting of the Parliament 06 February 2024
Fergus Ewing, with his usual lawyerly background, makes a fair point about the potential for unintended consequences.
I was pleased to note that, in his letter to the committee last week, the minister reiterated his undertaking to ensure that the draft regulations that he intends to bring forward will be shared with us before stage 3. I welcome that assurance because, in my view, it is essential that the Parliament has the opportunity to see those regulations before voting on the bill in its final form—albeit that some of us might want to go even further than that when it comes to putting more detail in the bill.
That was the major reform in the bill. A number of other, minor changes are being introduced in addition, which, largely, we found uncontroversial. An important point that was made by witnesses was about the lack of capacity in the money advice sector to ensure that individuals who face serious financial challenges will have people to turn to for support. I encourage the Scottish Government to address that matter.
There was some discussion in the committee around the time limits for minimal asset process—MAP—bankruptcy. That simplified procedure applies where debtors have low income and very few assets. At present, it is possible to apply for MAP bankruptcy only once in 10 years, but some witnesses told us that that should be reduced to five years in line with full administration bankruptcy, thus making it easier for debtors in that category to get relief.
There was some opposition to that. The City of Edinburgh Council expressed concern that it might be used by people to write off council tax debts more easily, which reflects Daniel Johnson’s point. The Scottish Government should give that further consideration.
If I have time, Presiding Officer, I would like to cover three other points briefly.