Committee
Devolution (Further Powers) Committee 22 January 2015
22 Jan 2015 · S4 · Devolution (Further Powers) Committee
Item of business
Smith Commission for Further Devolution of Powers to the Scottish Parliament
I note that in its submission the Institute of Directors talks about the oil and gas fiscal regime, which is topical—it generally is topical, but it is topical all the time in the north-east of Scotland. Ross Martin mentioned the 2011 situation. In the current situation, one way to protect against job losses is through the introduction of key fiscal measures. For example, exploration credits, which Norway introduced in 2005, have been mooted. In the submission, the Institute of Directors suggests “a Scottish input to the tax on oil receipts” and the oil and gas fiscal regime. Will you elaborate on how you would envisage the Scottish input working?
In the same item of business
The Convener (Bruce Crawford)
SNP
Good morning, ladies and gentlemen. I welcome our witnesses and those who have joined us in the public gallery as visitors. I ask that everyone ensure that t...
Ross Martin (Scottish Council for Development and Industry)
Good morning. I will give you a bit of context in relation to the impact of any changes, particularly changes to the tax system. My comments will probably ap...
Stuart Patrick (Glasgow Chamber of Commerce)
I have three points to throw in. First, our members broadly welcome the transfer of powers. The response has been similar to the SCDI’s view, which Ross Mart...
The Convener
SNP
No one likes increased taxes—we know that.
David Watt (Institute of Directors)
I will make a few general points. Business has already been very enthusiastic about this Parliament’s having some accountability for its income as well as fo...
Alan Watt (Civil Engineering Contractors Association)
One of the nice things about going last is that most of the things that I was going to say have been said. I have a slightly different perspective from the o...
The Convener
SNP
I think that all the submissions touched on the issue of borrowing powers. There is obviously a bit further to go regarding the arrangements that have to com...
Ross Martin
Over the piece—not just on borrowing, but on the whole array of powers—Scotland, not having previously had responsibility for revenue raising and that side o...
The Convener
SNP
This is a crucial issue for Alan Watt’s industry because it is heavily dependent on public expenditure on infrastructure through borrowing. Is there anything...
Alan Watt
No. I think that Ross Martin has summed it up well. 09:45
David Watt
I back up the point that some sort of Scottish OBR might be welcome. We do not want borrowing for the sake of borrowing. As with all other powers, we want it...
Stuart Patrick
We would welcome a discussion about the distinction between capital and revenue borrowing. From what our members say, I suspect that they feel comfortable wi...
Ross Martin
As well as borrowing, we can look at other ways of leveraging in external finance, particularly for infrastructure projects. In our submission, we raise the ...
The Convener
SNP
A couple of members have indicated that they have supplementary questions.
Tavish Scott (Shetland Islands) (LD)
LD
Thank you for your points on a tartan OBR, which I have been arguing for for a long time. The more you all say on that, the better, in the interest of indepe...
Stuart Patrick
I suppose that an interesting comparator would be the discussions about the transatlantic trade and investment partnership and the extent to which we are att...
Tavish Scott
LD
So you are talking about some mechanism that does not currently exist but which would give business the opportunity to comment on these matters when they wer...
Stuart Patrick
Exactly.
Tavish Scott
LD
Thank you.
Ross Martin
We have not gone as far as calling for the establishment of a tartan OBR, but we have made the point that there is an absolute need for that level of data. W...
The Convener
SNP
Mark McDonald has a supplementary on this area.
Mark McDonald (Aberdeen Donside) (SNP)
SNP
Professor David Heald from the University of Aberdeen has given evidence on some of the complexities that might arise as a result of the devolution of tax po...
David Watt
I do not want to criticise the Treasury publicly—
Stewart Maxwell (West Scotland) (SNP)
SNP
Go for it.
Tavish Scott
LD
Well, you are being led in that direction.
David Watt
As I have said, I genuinely think that, first and foremost, departments across the UK should be working together. As long as we are the United Kingdom, we sh...
Ross Martin
Although we are in uncharted waters as far as the reshaping of the UK is concerned, these waters are not uncharted in international terms. Indeed, there are ...
Stuart Patrick
Inevitably, differences are going to emerge over time. I can understand why, on the one hand, such an approach might be considered to be gaming, but, on the ...
The Convener
SNP
At this point, I formally welcome our guests from the Canadian Parliament, who have joined us to listen to what we are up to. Welcome to our deliberations.
Lewis Macdonald (North East Scotland) (Lab)
Lab
At the outset, the convener asked about your general take on the powers that will be devolved to the Scottish Parliament under the Smith agreement. I have a ...