Committee
Local Government and Transport Committee, 27 Mar 2007
27 Mar 2007 · S2 · Local Government and Transport Committee
Item of business
Subordinate Legislation
Business Improvement Districts (Scotland) Regulations 2007 (SSI 2007/202)
Thank you for this opportunity to say a few words in the light of the motion that has been lodged. We regard the regulations as being very important, so the opportunity is welcome. I apologise if I have delayed the committee this afternoon. The request for me to come here was obviously at short notice, and other things had already been pencilled in.The Business Improvement Districts (Scotland) Regulations 2007 provide much of the detail on how business improvement districts will operate in Scotland from 1 April 2007. The procedures that are set out in the regulations are similar to those that already operate in England, where a significant number of BIDs are now operating—thankfully, they are operating quite successfully. The changes that we have made for the regulations for Scotland take account of comments that were made by business organisations and others who responded to our earlier consultations.The regulations are lengthy and detailed. Their main purpose is to complement part 9 of the Planning etc (Scotland) Act 2006 and the BID ballot arrangements, which were approved by Parliament; and the section 104 order on the BIDs levy—that is, section 104 of the Scotland Act 1998—which is currently awaiting approval at Westminster.There are two main themes in the regulations. The first is broadly to provide for the procedures that were proposed by the BIDs working and steering groups, which included broad cross-sections of stakeholder bodies from across the public and private sectors. The regulations have been the subject of wide consultation.The second theme is to provide appropriate safeguards for the Executive and local authorities to protect the integrity of business improvement districts in Scotland. To that end, the regulations cover the following areas. First, they cover the information that the BID proposer, working in conjunction with the local authority, needs to gather and process to create a robust BID proposal. The local authority is also required to assist the BID proposer by providing information—most notably about existing and planned baseline services and about those who are liable to vote. The regulations cover the rules that govern the BID ballot, renewal ballots and alteration ballots. They also cover the safeguards that will be put in place to ensure the propriety of BIDs, which involves protection of the interests of people in BID areas, the appeals procedures and the declaration of a ballot as void, where necessary. Furthermore, the regulations cover the BID revenue account and how it is to be maintained. Those are the main aspects of what is, as I have already said, a lengthy and complex document. If the committee has any questions, we will do our best to answer them.
In the same item of business
The Convener:
Lab
I reconvene the meeting.Agenda item 4 is another item of subordinate legislation. The committee will debate and reach a decision on motion S2M-5784, in the n...
The Minister for Finance and Public Service Reform (Mr Tom McCabe):
Lab
Thank you for this opportunity to say a few words in the light of the motion that has been lodged. We regard the regulations as being very important, so the ...
Fergus Ewing:
SNP
Will the BID proposal that is put to each business that is eligible to take part in the vote include, first, how much it will cost in total to implement the ...
Nikola Plunkett (Scottish Executive Finance and Central Services Department):
Do you mean the proposal that they vote on?
Fergus Ewing:
SNP
Pardon?
Nikola Plunkett:
That is in the schedules.
Fergus Ewing:
SNP
I quote from schedule 1, on the "Content of BID Proposals". Paragraph 1(1) says that"a BID proposal shall include"the items that are listed in subparagraphs ...
Mr McCabe:
Lab
I understood that we had covered those points in the regulations. Even if we have not, my reaction in such a situation would be simply to say that I had no w...
Fergus Ewing:
SNP
So, if I were a business, I would not know how much the levy would be that I was being asked to—
Mr McCabe:
Lab
I never said that. As I understand it, we have already covered that point in the regulations.
Nikola Plunkett:
I refer Fergus Ewing to regulation 5.
The Convener:
Lab
Paragraph 1(1)(d) of schedule 1 says that there will be"a statement providing details of any additional financial contributions or additional actions for the...
Colin Gilchrist (Scottish Executive Legal and Parliamentary Services):
Regulation 5(2)(a) provides that the bid proposer requires to send to the local authority and the billing body a summary of the consultation that had been un...
Mr McCabe:
Lab
Some members are unclear about which part of the instrument we are reading from.
The Convener:
Lab
I was referring to schedule 1. Mr Gilchrist was referring to section 5(2)(a) on page 4.
Fergus Ewing:
SNP
Regulation 5, on page 3, states:"BID proposals … shall include the matters mentioned in Schedule 1"and schedule 1 states that"a BID proposal shall include"th...
Mr McCabe:
Lab
I disagree. Reference has already been made to different parts of the regulations, which clearly show that that is a requirement. Requirements in the section...
Colin Gilchrist:
Article 4 of the section 104 order, which was laid at Westminster on 9 March, provides that the details of the imposition, amount and calculation of the BID ...
Fergus Ewing:
SNP
Do we have that document?
Nikola Plunkett:
No. It is United Kingdom legislation.
Fergus Ewing:
SNP
Are you saying that the effect of the section 104 order—which we do not have before us and to which the minister has not previously alluded—will require the ...
Colin Gilchrist:
That is correct. Article 4(3) of the levy order provides that "The calculation of BID levy for any chargeable period shall be specified in the BID proposals ...
Fergus Ewing:
SNP
Why are there parallel arrangements governing the implementation of BIDs in Scotland?
Mr McCabe:
Lab
I take exception to Mr Ewing's inference that we have never referred to a section 104 order. Committee members are well aware that an integral part of the pa...
Fergus Ewing:
SNP
With respect, I remain to be convinced. Given that that information is not referred to in the instrument, I am not convinced that it will have to be provided...
The Convener:
Lab
I am happy for you to continue.
Fergus Ewing:
SNP
Thank you. My question arises from the evidence that the committee heard at our meeting on 6 March, when Miss Plunkett, Mr Gilchrist and the minister said th...
Mr McCabe:
Lab
I am sorry, will you repeat your question?
Fergus Ewing:
SNP
On 6 March, Mr Gilchrist said:"The amount of the levy is allocated between the owner and the ratepayer."—Official Report, Local Government and Transport Comm...
Colin Gilchrist:
The BID proposal must provide for the allocation of the levy between the owner and the ratepayer. The BID proposer must assess the respective benefits of the...