30 11 09 referendum
Post on 10-Apr-2018
219 Views
Preview:
TRANSCRIPT
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 2/198
i
YOUR SCOTLAND YOUR VOICE
A NATIONAL CONVERSATION
I ASK EVERY SCOT TO PAUSE
AND REFLECT, NOT JUST ON
WHAT KIND OF COUNTRY WE
ARE, BUT ON THE KIND OF
COUNTRY WE COULD BE, THE
KIND OF COUNTRY WE SHOULD
BE. I AM COMMITTED TO A NEW
CHAPTER IN SCOTTISHPOLITICS, ONE IN WHICH THE
STORY AND THE SCRIPT IS
WRITTEN BY THE PEOPLE AND
NOT JUST BY THE POLITICIANS.ALEX SALMOND, FIRST MINISTER OF SCOTLAND, 14 AUGUST 2007
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 4/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
iii
No man has a right to fix the boundaryof the march of a nation; no man has a right to say to his country, “Thus farshalt thou go and no further”.Charles Stewart Parnell (1846-1891)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 5/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
iv
Deputy First Minister and Cabinet
Secretary for Health & Wellbeing
Scotland has a long and proud record ofinnovation and excellence in health andhealthcare, with internationally recognised
medical schools alongside world-renownedclinical and scientific research. Our NationalHealth Service is one of which we can similarlybe proud. By wisely using already wide rangingdevolved responsibilities for health andwellbeing on behalf of the people of Scotlandwe have changed the landscape of andpotential for improving health and healthinequalities. Huge strides have been made inreducing waiting times and our strategies toimprove coronary heart disease, stroke and
cancer services, among others, have broughtwith them significant improvements forpatients. What has been done is testament towhat can be achieved and I am certain thatwith full powers and responsibilities in anindependent nation we can and will achievemuch more.
“
”
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 6/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
v
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 8/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
vii
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 9/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
viii
The current constitutional settlement places limits onScotland’s ability to fully capitalise on the economicbenefits our education and skills system offers us. In
particular our employment and benefits system mustbe structured to help as many people as possible fromall parts of Scotland into sustainable employment. This
can be best achieved by placing the needs andexpectations of the people of Scotland at the heartof its design and operation.
“
”Cabinet Secretary for Education and
Lifelong Learning
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 10/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
ix
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 11/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
x
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 12/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
xi
Scotland’s laws and justice system areunique. They have been established for
centuries and been maintained through 300years of an incorporating union. Under
devolution with justice mainly devolved theycontinue to serve Scotland in a unique way
appropriate to our country and its people.
We have confidence in the people ofScotland and they can be proud of
Scotland’s achievements. We want theScottish Government to be able to gofurther in the interests of the Scottish
people. We want to be able to tackle allaspects of crime and its causes.
“
”
Cabinet Secretary for Justice
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 13/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
xii
Using our existing but limited powers,the Scottish Government has deliveredmuch progress for our rural communitiesbut there are numerous examples where
the influence of an independent countrywould have brought much greaterbenefits.
When I attend European negotiationsand witness the success of other similarsized nations, I appreciate more thanever how having our own voice in Europewould ensure the distinctive needs of ourfarmers, fishermen and our environmentwould be recognised.
“
”Cabinet Secretary for Rural Affairs and
the Environment
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 14/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
xiii
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 15/198
Minister for Parliamentary Business
We have legislated to remove theconfusion of combined polls anddeveloped proposals to clarify theconduct of Scottish elections.Responsibility is currently split betweenHolyrood and Westminster. GivingHolyrood the responsibility for all
elections in Scotland would bringaccountability closer to the voter andrestore confidence in the democraticprocess. We would lower the voting ageto 16 and introduce STV for all electionsso extending participation anddemocracy in Scotland.
A National Conversation – YOUR SCOTLAND, YOUR VOICE
xiv
“
”
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 16/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
xv
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 17/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
xvi
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 18/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
xvii
The National Conversation has demonstrated thatthere is a tremendous appetite for debate about
Scotland’s constitutional future. Across thecountry, people have considered and discussed a
range of constitutional choices, from expandeddevolution to independence. There are a wide
variety of options to reform our constitution, butmost people agree that the status quo is not
delivering for Scotland. As Minister for Culture,
External Affairs and the Constitution, I am
immensely proud of Scotland’s achievements sincedevolution, but I believe that independence
presents the best opportunity for Scotland toflourish. It would enable Scotland to thrive
internationally and culturally; Scotland wouldconduct itself on the world stage as an equal with
other sovereign states. It would also give Scotlandresponsibility for all the policy tools required to
promote sustainable economic growth.
“
”Minister for Culture, External
Affairs and the Constitution
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 19/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
xviii
CONTENTS
FOREWORD 1
1. THE NATIONAL CONVERSATION ON SCOTLAND’S FUTURE 3Introduction 3Current constitutional arrangements 3Options for the future 4
The National Conversation 5
2. THE OPTIONS FOR SCOTLAND’S FUTURE 15Introduction 15Current position 16Commission on Scottish Devolution 16Full devolution 17Independence 17
3. A WEALTHIER SCOTLAND 21Overview 21Economic and fiscal policy 23Business and enterprise 39Migration 50Broadcasting 53Conclusion 57
4. A FAIRER SCOTLAND 59Overview 59Welfare and benefits 60Housing and regeneration 64Equal opportunities 68Conclusion 69
5. A GREENER SCOTLAND 71
Overview 71Environment, agriculture and fisheries 72Transport 82Energy 85Conclusion 89
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 20/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
6. A HEALTHIER AND SMARTER SCOTLAND 91Overview 91Health 91Education and children 96Conclusion 97
7. A SAFER SCOTLAND 99Overview 99Criminal and civil justice 100Judiciary and the Courts 102Human rights and responsibilities 104Conclusion 105
8. A STRONGER SCOTLAND 107
Overview 107Scotland in the world today 108Scotland’s future role 108Conclusion 122
9. A MODERN SCOTLAND 125Overview 125Constitution and government 126Elections 131Conclusion 133
10. CHOOSING SCOTLAND’S FUTURE 135Introduction 135Involving the people 135A national referendum 136
The next step 139
ANNEX A NATIONAL CONVERSATION EVENTS 140
ANNEX B ORGANISATIONS CONTRIBUTING TO THE NATIONAL CONVERSATION 144
xix
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 21/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
xx
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 22/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
1
FOREWORD
The Rt Hon Alex Salmond MSP MP, First Minister of Scotland
Over the last two years more than 15,000 people have taken part in theNational Conversation on the future of Scotland: at public meetings, in printand online. There have been other significant contributions: from experts,academics, journalists and think tanks on a range of subjects such as fiscal
autonomy, energy and the environment, and Scotland in the world.
Two things are clear. First, that there is a demand in Scotland to considerand debate our national future. Second, that the current arrangements donot meet the ambitions of our nation. Ten years on from devolution, almostall agree that it is time to expand the responsibilities of our Parliament.
Ten years ago Donald Dewar said the Scottish Parliament was “a newvoice in the land, a voice to shape Scotland, a voice above all for thefuture”. He was right. But our Parliament is incomplete, unfinished. Its voice
is muted or silent in many areas vital to our nation.
I believe that Scotland cannot fully flourish until it takes responsibility for
itself: for its economy, taxes, and spending; for its rich and its poor; for itsnatural resources and its waste; for its old and its young; for its roads andits seas; for its place in the world, for peace and war, for ties of friendshipand common interest with the other nations of the earth.
These are the matters with which normal, independent countries dealevery day. They know the challenges and opportunities that come withthat independence, as well as the responsibility.
Scotland and its people are more than capable of doing so, too. We wouldbenefit from the opportunities. I believe it is time that Scotland reclaimedits place among the nations of Europe and the world. Other people havedifferent views. It is now time for the voice of the people to be heard – inthe referendum on Scotland’s future we intend to hold in November 2010.
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 23/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
2
I think the idea of a NationalConversation is hugely effective inbringing people within the democraticexperience.(Glasgow Summer Cabinet, 1 September 2009)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 24/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
INTRODUCTION
1.1 In September 1997 the people ofScotland decided in a referendum toestablish a Scottish Parliament,exercising their sovereign right to
determine the form of their owngovernment.1 In the samereferendum the people supportedtax varying powers for theParliament.2 On 1 July 1999 the
Scottish Parliament was formallyvested with its full responsibilities.
1.2 Ten years on from devolution, theNational Conversation has promptedextensive debate across Scotland onthe options for the future of thecountry: continuing with the currentsituation; extending theresponsibilities of the Scottish
Parliament and Government; andindependence for Scotland. A
referendum on the options forScotland’s future would give thepeople an opportunity to have theirsay.
CURRENT CONSTITUTIONAL
ARRANGEMENTS
1.3 The Scotland Act 1998 was the lastmajor change to the government ofScotland within the United Kingdom
(see Box 1). The Act devolved to aScottish Parliament and ScottishGovernment all matters not reservedspecifically to the United Kingdom:in practice domestic matters
administered previously by theScottish Office, such as health,education, justice, local governmentand agriculture and fisheries.3
1.4 The matters reserved to the UnitedKingdom included:
• matters seen as fundamental to thestate: the Head of State, citizenship,
foreign affairs, and defence andsecurity• matters regarded as needing a
common regime across the UnitedKingdom, such as employment andbusiness law, drug classification andfirearms control
• matters that the United KingdomGovernment thought should beorganised across Great Britain or
the United Kingdom, such aseconomic affairs, social security,and tax collection
3
CHAPTER 1
THE NATIONAL CONVERSATION
ON SCOTLAND’S FUTURE
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 25/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
1.5 Even the existing devolutionsettlement envisages changes inthese devolved responsibilities. Asonly specified areas are reserved,any new issues – such as climatechange – fall within devolvedresponsibility. The existing list ofreserved matters can be adjusted byorder with the agreement of theScottish and United KingdomParliaments, although there is no
statutory mechanism for the ScottishParliament to request action fromthe United Kingdom Parliament toalter the division of responsibilities.4
1.6 The Scottish Government has takensteps within its current responsibilities
to further its purpose of focussingthe Government and public serviceson creating a more successful
country, with opportunities for all ofScotland to flourish, throughincreasing sustainable economicgrowth. The Scottish Governmenthas also addressed the economicand financial crisis through theScottish Economic Recovery Plan,but the main policy responsibilities
remain with the United KingdomGovernment, notably the level of
public debt and spending over theshort term, advancing capitalexpenditure from future years, andthe overall tax regime. The ScottishGovernment has been constrained inthe fiscal stimulus package it canintroduce, and the actions taken bythe United Kingdom Government may
not be best suited to Scotland. Forexample, the resources allocated tothe temporary cut in Value Added Taxby the United Kingdom could have
been used to increase the level ofcapital investment, helping to supporta greater number of jobs in Scotland.
1.7 For devolution to be successful, theScottish Government needs to workclosely with the United KingdomGovernment, the other devolved
administrations and the EuropeanUnion. The governments haveworked well together on someissues: anti-terrorism measures; theswine flu outbreak; and ClimateChange Bills in both the Scottishand United Kingdom Parliaments.Regular meetings of the JointMinisterial Committees have beenre-established. However, relations
between the Scottish and UnitedKingdom Governments have beenless successful on other occasions:
negotiations for a Prisoner TransferAgreement with Libya; delay inamending the law on human rightscases under the Scotland Act;5
exclusion of Scottish Ministers fromthe United Kingdom delegation tothe Copenhagen Summit on ClimateChange; and the United Kingdom
Government’s refusal to be flexible infunding capital projects, notably the
Forth Road Bridge.
OPTIONS FOR THE FUTURE
1.8 The Scottish Government’s whitepaper Choosing Scotland’s Future,published in August 2007, identifiedthree principal options:
• the current devolution scheme, withthe possibility of further devolution on
individual matters as occasions arise
4
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 26/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
• a package of specific extensions todevolved responsibilities, includingfiscal autonomy, but short ofindependence. Such a package mightneed, or benefit from, the consent ofthe Scottish people in a referendum
• independence: Scotland wouldassume all the responsibilities andrights of a normal European state,including membership of theEuropean Union and other
international bodies, the ability todetermine economic policy,including the currency, and fullresponsibility for defence andsecurity.6
1.9 The Commission on Scottish
Devolution (see Box 2) was set up in2008 by the Scottish Parliament andthe United Kingdom Government.
Its terms of reference excludedconsideration of independence. Ithas proposed a package of changesto the devolution settlement. Themain elements are:
• devolution of an element of incometax
• devolution of some other minor taxes• limited borrowing ability for the
Scottish Government• devolution of responsibilities for
drink driving limits, airguns andspeed limits
• a formal role for Scottish Ministers inreserved policies on benefits andmarine conservation
• reserving to the United KingdomParliament and Government anumber of matters currentlydevolved (regulation of health
professionals, definition of charities)
The Commission also made anumber of recommendations aboutinter-Governmental and inter-Parliamentary working.
1.10 Your Scotland, Your Voice discussesin detail the advantages anddisadvantages of variousconstitutional options for Scotland’sfuture. As the package proposed by
the Commission on Scottish
Devolution falls short of fulldevolution, the paper discusses theopportunities provided by both theCommission’s proposals and moreextensive devolution, as well asindependence.
THE NATIONAL CONVERSATION
1.11 The National Conversation began in
August 2007 with the publication ofChoosing Scotland’s Future. Over5,300 people have attended morethan 50 National Conversationevents throughout Scotland. Some500,000 have viewed the website,
which provides video and audiorecords of meetings, access todocuments, Ministerial blogs and anopportunity to comment.7 TheNational Conversation has been a
unique programme of engagementwith the Scottish public which hasinvolved civic organisations, youngScots, black and minority ethniccommunities, and individuals from
all parts of the country. A full list ofNational Conversation events is atAnnex A, and a list of organisationsthat have participated is at Annex B.8
5
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 27/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Public events
1.12 The National Conversation has beenan open, inclusive process intendedto encourage debate, ideas andopinions. Events have been heldfrom Glasgow and Edinburgh toStornoway and Dumfries. National
Conversation events were part ofthe Scottish Cabinets held acrossScotland in the summers of 2008and 2009, with the First Minister, theCabinet, and other Ministers, on theplatform. There have also been 130National Conversation economy-based sessions with community andbusiness groups, attended by morethan 6,500 people across Scotland.
1.13 The events gave members of the
public the opportunity to presenttheir own views, ask ScottishMinisters about their vision ofScotland, and to ask questions onlocal, national and international
concerns. The events haveillustrated how the constitutionembraces everyday concerns suchas the economy, employment,energy, benefits, housing, education
and health. Quotes and commentsfrom these events appearthroughout this paper.
1.14 Civic Scotland has been a key partof the National Conversation. On26 March 2008, the First Ministerand the Cabinet hosted a meetingof over 120 representatives of civicsociety, acknowledging theimportance of Scotland’s civicinstitutions. National Conversation
events have been hosted by theScottish Council of VoluntaryOrganisations (SCVO), the Councilof Ethnic Minority VoluntaryOrganisations (CEMVO), Young Scotand the Scottish Youth Parliament,and churches and faith groups.
1.15 There have also been NationalConversation events outsideScotland. Ministers have debatedthese issues in London, Toronto andDublin. The First Minister hosted aNational Conversation seminar inBrussels, and the NationalConversation paper on Europeanand Foreign Affairs was laterlaunched there.
The National Conversation website
1.16 The National Conversation has
pioneered the use of new mediawithin the Scottish Government,with regular blogs from Ministersand the opportunity for individualsfrom across the political spectrumto debate directly with the ScottishGovernment and each other. So farthe National Conversation website
has received over 500,000 hits, andalmost 5,000 people havecontributed to the National
Conversation blogs from allperspectives and across the world.9
1.17 The website has also built up arecord of the National Conversationas it has progressed, with video andaudio records of meetings, transcripts
of speeches, records of commentsand questions and photographs.
6
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 28/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Along with an interactive timeline ofScotland’s constitutional story, thewebsite has become a forum fordebate, a resource for research andlasting evidence of the interestgenerated by the NationalConversation as it has developed.
National Conversation policy papers
1.18 As part of the NationalConversation, the ScottishGovernment has published a seriesof papers on different constitutionaloptions for reserved and devolved
policy areas. These papers include:
• Fiscal Autonomy in Scotland: Thecase for change and options for reform
• Europe and Foreign Affairs: Takingforward our National Conversation
• Opportunities for Broadcasting:Taking forward our National Conversation
• An Oil Fund for Scotland: Takingforward our National Conversation
• People and Communities: Takingforward our National Conversation
• Rural Affairs, the Environment and
Climate Change: Taking forward our National Conversation
Wider debate
1.19 The National Conversation is nottaking place in isolation.Constitutional reform is a major
issue across the United Kingdom,prompted in part by public concernabout the expenses system of theUnited Kingdom Parliament. TheUnited Kingdom Government’s
response has been to launch itsBuilding Britain’s Future initiative,the aim of which is to rebuild trust inpolitics, as well as to respond to therecent economic crisis.10 Other
organisations have launchedinitiatives in response to the expensesissue and the constitutional issuesraised, for example, the JosephRowntree Trusts’ POWER 2010
project.11
1.20 The United Kingdom Government hasalso continued its programme of workon the Governance of Britain, and istaking forward a ConstitutionalReform and Governance Bill whichwould place the civil service on astatutory footing, among othermeasures.12
1.21 In Wales, the All Wales Conventionpublished its report on 18 November2009 recommending a referendumon extending the legislativecompetence of the Welsh
Assembly.13 The Welsh AssemblyGovernment’s IndependentCommission on Funding and Financefor Wales (the Holtham Commission)also published its first report on
reforming funding of devolvedgovernment in Wales on 7 July 2009.14
7
Very useful, you areto be congratulated
for attempting to
encourage debate. Folks have been giventheir chance to speak.(Stirling National Conversation event, 13 May 2009)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 29/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
BOX 1: SCOTLAND’S CONSTITUTIONAL JOURNEY SINCE
THE TREATY OF UNION
1. The Treaty of Union between the independent kingdoms ofScotland and England came into force on 1 May 1707. TheTreaty created a unified Crown and a single Parliament forthe new kingdom of Great Britain. Its other main provisionscovered representation in the new Parliament and
reciprocal measures of taxation and trade, and it preservedvarious Scottish institutions, notably a separate legalsystem. Separate legislation guaranteed the position of theChurch of Scotland.
2. Some Scots challenged the Union from the outset,particularly as the advantages of free trade to English
colonies and free access to English markets – which tooktime to materialise – were offset by the higher Englishtaxes and duties now payable in Scotland.
3. Following the failure of the 1745 Jacobite rising, the issue
of Scotland’s place within the Union, and the stability ofthe succession to the throne, seemed settled. New
imperatives of industrial revolution and Empire moved tothe fore. Scotland played a full part in these Britishdevelopments, but its nationhood was preserved by theseparate institutions protected by the Treaty of Union.
8
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 30/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
4. In 1853, the National Association for the Vindication ofScottish Rights was formed. Although short-lived, thisindicated growing interest in Scotland’s position as aseparate political entity within the United Kingdom,motivated in part by the pressure for Home Rule in Ireland,and by the challenges of governing the expanding BritishEmpire.
5. The emergence of political interest in Home Rule forScotland was accompanied by changes in the arrangementsfor Scotland’s government, starting with the creation of theScottish Office in 1885 and the appointment of the firstSecretary for Scotland to represent Scottish interests in theUnited Kingdom Cabinet. This recognised that Scotland’sdistinctive culture, institutional and political identityrequired specific and full-time representation. However, noseparate national democratic assembly was developed.
6. Scottish Home Rule took on greater currency with theformation of a Scottish Home Rule Association in 1886.
In 1888 Keir Hardie adopted a Home Rule platform at theMid Lanark by-election, and Scotland’s constitutionalposition has remained a central political issue since then.Home Rule for Scotland was debated on many occasionsin the United Kingdom Parliament, and a number of Bills
were introduced. In 1913 a Home Rule Bill passed itsSecond Reading, but the First World War intervenedbefore further legislative steps could be taken.
7. Following the First World War, the political relevance of
Scottish Home Rule was maintained by various politicalparties and movements, and the Scottish National Party(SNP) was formed in 1934 from the National Party of
Scotland (formed in 1928) and the Scottish Party (formedin 1932). The SNP won its first parliamentary seat at theMotherwell by-election in 1945, but held it for only threemonths.
9
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 31/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
8. Unionism dominated in Scotland following the SecondWorld War, and in 1950 the Labour Party abandoned itssupport for Scottish Home Rule, although this remained animportant issue in Scotland. The Scottish CovenantAssociation helped sustain popular interest in a Scottishassembly, attracting two million signatures between 1949and 1950. However, the Association was not linked to anypolitical party and failed to secure its objectives directly.
9. Scottish Home Rule returned as a key issue with the SNP’svictory in the Hamilton by-election of 1967. Winnie Ewingwon the seat with 46% of the vote, marking the emergenceof the SNP as an electoral force and mainstream politicalparty.
10. Since the Hamilton by-election, each of the main politicalparties has, at different times, committed itself to newconstitutional arrangements for Scotland. In 1968 thedeclaration of Perth committed the Conservatives toScottish devolution in some form, and in 1970 the
Conservative government published Scotland’sGovernment, which recommended the creation of aScottish assembly. However, Conservative support forScottish devolution declined, and the party opposedlegislative devolution for Scotland through the 1980s and
1990s. Although the party campaigned for a “No” vote inthe referendum of 1997, the Conservatives at both Scottishand United Kingdom level have supported the ScottishParliament since it was established.
10
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 32/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
11. In 1969, the Labour Government commissioned a reportinto constitutional options for the United Kingdom. TheKilbrandon Commission did not report until 1973 by whichtime a Conservative government was in power. TheKilbrandon report recommended devolved assemblies forScotland and Wales, which led eventually to devolutionbeing put to the electorate in a referendum in 1979. Thelegislation required 40% of the total electorate to supportdevolution in the Scottish referendum; in the event only32.9% supported the assembly, although this represented51.6% of those who voted, and a majority of more than
77,000.
12. Following the election of the Conservative Government in1979, devolution, and the concept of the sovereignty of theScottish people, was taken forward first by the Campaignfor a Scottish Assembly, and then, from 1989, the ScottishConstitutional Convention. In 1988 the Campaign for a
Scottish Assembly published A Claim of Right for Scotland which asserted Scotland’s cultural and historical legacy in
putting forward its argument for a Scottish assembly. Thiswas followed in 1995 by Scotland’s Parliament, Scotland’sRight, the Scottish Constitutional Convention’s blueprintfor a Scottish assembly, which became the basis for thesettlement that was eventually enacted.
13. The Labour Party fought the 1997 general election on aplatform that included a commitment to a referendum onScottish devolution. The white paper Scotland’s Parliament was published in July 1997, and its proposals were the
basis for the pre-legislative referendum which was held on11 September 1997. Over 74% of those participatingsupported the creation of the Scottish Parliament, andover 63% tax varying powers for the Parliament. TheScottish Parliament that reconvened in 1999 was based on
the constitutional settlement in the subsequent ScotlandAct 1998.
11
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 33/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
BOX 2: THE COMMISSION ON SCOTTISH DEVOLUTION
1. On 6 December 2007, the Scottish Parliament passed amotion calling for the creation of an independently chairedcommission to review devolution in Scotland. Chaired bySir Kenneth Calman, the remit of the Commission onScottish Devolution was:
To review the provisions of the Scotland Act 1998 in thelight of experience and to recommend any changes to thepresent constitutional arrangements that would enable theScottish Parliament to serve the people of Scotland better,improve the financial accountability of the ScottishParliament, and continue to secure the position of Scotlandwithin the United Kingdom.
Members of the Commission were drawn from Scottishcivic society and the Labour, Liberal Democrat andConservative parties. The United Kingdom Governmentlargely provided the secretariat for the Commission. As the
Commission’s remit excluded independence, the ScottishGovernment declined to take part.
12
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 34/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
2. Over the course of its work, the Commission took evidencemainly in writing, although there were formal evidencesessions with members of representative organisations andtwelve public meetings to allow members of the public toengage with the Commission directly. The United KingdomGovernment provided written submissions to theCommission, while the Scottish Government providedfactual information. The Commission published its firstreport in December 2008 and its final report in June 2009.
3. The final report, Serving Scotland Better: Scotland and the United Kingdom in the 21st Century, made 63recommendations in four categories:
• strengthening financial accountability
• strengthening co-operation between the Scottish andUnited Kingdom Parliaments
• strengthening the devolution settlement• strengthening the Scottish Parliament
Following publication of the final report, a working group,consisting of members of the political parties involved in
the creation of the Commission, was established to takeforward the recommendations.
4. The Scottish Parliament debated the Commission’s finalreport on 25 June, passing a motion supporting itsrecommendations. The Scottish Government published itsformal response to the Commission’s recommendationson 9 November 2009.15 While not in favour of all the
conclusions of the report, the Scottish Government doessupport a number of recommendations and has set out amechanism for those proposals with widespreadagreement to be implemented as soon as possible.
13
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 35/198
14
A National Conversation – YOUR SCOTLAND, YOUR VOICE
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 36/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
INTRODUCTION
2.1 Devolution was never intended asa fixed arrangement: it was and isa process which should respond topolitical, economic and social
circumstances over time to ensurethat Scotland is well-positioned toaddress the challenges it faces andtake advantage of opportunities.Nor does devolution need to be
Scotland’s final constitutionaldestination.
2.2 The tenth anniversary of the ScottishParliament offers a suitable momentto consider these issues in depth,and invite the people to have theirsay on the next steps in Scotland’sconstitutional journey.
2.3 The National Conversation hasidentified many areas for furtherdevolution, as well as the argumentsaround independence. The NationalConversation has illustrated that theconstitutional debate raises issuesacross the whole range ofgovernment activity and Scottishlife, from economic policy,
taxation and benefits, foreign affairsand defence to human rights,broadcasting and responsibility forairguns and drink-drive limits. In theseand many other areas, decisions forScotland are not made by theScottish Parliament and the ScottishGovernment, but by their UnitedKingdom counterparts.
2.4 This paper covers many of the most
important policy areas which wouldbe affected by different constitutionalarrangements. However, it is notexhaustive: it focuses on those areaswhere new constitutional
arrangements, whether fulldevolution or independence, wouldprovide the greatest opportunitiesto develop Scotland-specificapproaches to particular issues.16
It also discusses significant areas ofScottish life which are already largelydevolved, such as health, educationand justice. The achievements inthese areas since devolution
illustrate the potential for Scotlandto tackle its problems and promoteits successes with the rightresponsibilities and opportunities.
15
CHAPTER 2
THE OPTIONS FOR
SCOTLAND’S FUTURE
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 37/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
2.5 The paper describes the opportunitiesthat increased responsibility wouldprovide for Scotland to developpolicies to address its issues. Theuse made of these opportunitieswould depend on the policy choicesof future Scottish Governments and
the make up of future Parliaments.The examples in the paper thereforeillustrate the benefits and challengesof these responsibilities, and are
neither a programme for governmentnor commitments to future action.
2.6 There are four broad options forScotland’s future:
• the status quo: Scotland retains itscurrent responsibilities with gradualevolution in response to particularevents or pressures
• implementing the recommendationsof the Commission on ScottishDevolution
• full devolution of the maximum
range of responsibilities to Scotlandwhile remaining in the UnitedKingdom (sometimes called
“devolution max”)• independence: Scotland has all
the rights and responsibilities ofa normal independent state
CURRENT POSITION
2.7 Under the Scotland Act, amendmentscan be made to the legislativecompetence of the Scottish
Parliament and the executiveresponsibilities of the Scottish
Government. While the devolvedresponsibility of the ScottishMinisters has been adjustedrelatively frequently, extension ofthe legislative competence of theScottish Parliament has been rarer.17
COMMISSION ON SCOTTISHDEVOLUTION
2.8 The Commission carried out areview of devolution, although itdid not consider the possibility ofindependence, and was preventedby its terms of reference from
examining some of the moresignificant options such as full fiscalautonomy.18 The Commissionnevertheless proposed a packageof alterations to the devolutionsettlement that embodied newprinciples, such as giving theScottish Government a limited abilityto borrow. It also recommendedways to improve the relationships
between the Scottish Governmentand Parliament and the UnitedKingdom Government and Parliament.
The advantages and drawbacks oftheir main recommendations arediscussed in detail later in the paper.
16
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 38/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
2.9 The Commission did not makerecommendations in a number ofimportant areas including economicissues, employment and companylaw, and foreign affairs. TheCommission’s recommendations onbenefits fell short of further
devolution, but recognised theinterest of the devolved governmentof Scotland in reserved policymaking. Devolved competence
could therefore be extended beyondthe recommendations of theCommission.
FULL DEVOLUTION
2.10 Under full devolution the existingdevolution framework would beretained, and Scotland would remainwithin the United Kingdom. TheUnited Kingdom Government andinstitutions would continue to haveresponsibility for many matters, forexample the currency and monetary
policy, and decisions on peace andwar. Full devolution would giveScotland more responsibility for
domestic matters, and would extendthe range of measures the ScottishGovernment and the ScottishParliament could take to encouragegreater sustainable economicgrowth. Nonetheless, there would becontinued interaction with matters
reserved to the United Kingdom, forexample foreign affairs, defence,macroeconomic policy, some
taxation and, possibly, social
protection and pensions. Existingareas of disagreement wouldcontinue. Improved inter-governmental relations, includingenforceable principles of parity ofesteem, would be required forScotland to get the most out of its
increased responsibility.
INDEPENDENCE
2.11 The Scottish Government’s favouredpolicy is independence, which wouldbring all the possibilities of fulldevolution with the additional
responsibilities that could not bedevolved within the United Kingdom,such as foreign affairs and defence.Under independence Scotlandwould be responsible for:
• the economy, including decisions on
the currency and the macroeconomicframework
• investment in education, enterpriseand infrastructure includingtransport and housing
• the environment, energy and
climate change• the taxation and benefits system• the full range of public services,
including benefits and health• foreign affairs, defence and security
matters• equality legislation and human rights• the constitution and government of
Scotland, including Parliament, thecourts, local government
17
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 39/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
2.12 Independence would complete theresponsibilities of the ScottishParliament and Government, whileallowing existing structures andservices to continue. Aspects of anindependent Scotland would befamiliar: services and entitlements
continuing to be delivered; pension
and benefits continuing to be paid ata similar level as now. Services suchas the NHS and education arealready largely devolved, and sowould continue in much the sameform as they do now. Over time, theScottish Government and ScottishParliament could develop andimplement Scotland-specific
solutions.
2.13 As an independent nation, Scotlandwould be similar to other sovereignnations across the world. In recentyears, many countries have gainedindependence, recognising that it isright that sovereign nations areresponsible for their own decisions,
while still working in partnership
with other nations. At the moment,Scotland is a nation within a largerstate, unable to speak for itself onall relevant matters. Independencewould give Scotland the responsibilityfor making decisions about its futureas part of an international,globalised environment, making afull contribution to the
interdependent world.
18
I found this event very interesting … it
was refreshing to see that the Scottish Government want the people of Scotland to decide its own future – the CalmanCommission, although it has some great ideas, is based on what three political
parties want.(Aberdeen Summer Cabinet, 18 August 2009)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 40/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
19
I can see no way forward for the countryother than full fiscal autonomy. But my
question is, would it be better to do thisand share some common resources as part
of the United Kingdom (e.g. armed forces,embassies around the world, etc). Or cana case be made that this would be betterdone independently?(National Conversation website, 18 November 2008)
How will independence benefit young people in Scotland?
(Inverness Summer Cabinet 5 August 2008)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 42/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
OVERVIEW
3.1 Sustainable economic development
improves the quality of life, healthand the environment to the benefitof all in society, while managing theresources of the planet for thefuture. It is one of the central goalsof governments around the world,and is the overarching purpose of
the Scottish Government.
3.2 A nation’s prosperity depends uponeveryone playing a part – as
workers, consumers, volunteers andbusiness people. A government’srole is to enable their success byinvesting in people and places, and
tackling unnecessary obstacles tosustainable economic growth. Thereare a number of mechanismsgovernments can use to promotegrowth including:
• encouraging economic developmentthrough effective fiscal andmonetary policy
• influencing economic, social andenvironmental objectives throughlegislation and regulation of labourand product markets
• investing directly in infrastructureand education
In the modern interdependent world,
these mechanisms are often co-ordinated internationally, mostnotably, in Scotland’s case, throughthe European Union.
3.3 Under the current arrangementsmany of the key mechanisms topromote economic growth arereserved to the United KingdomGovernment and other UnitedKingdom institutions. Some could be
devolved to Scotland within theUnited Kingdom (for example,aspects of the tax system, asrecommended by the Commission
on Scottish Devolution).
21
CHAPTER 3
A WEALTHIER SCOTLAND
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 43/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
3.4 With independence Scotland wouldhave full responsibility for promotingeconomic growth and improvingScotland’s long-term competitiveness,
including:
• designing a tax system to makeScotland a more attractive place forbusiness growth and investment
• choosing a macroeconomicframework, including the operationof fiscal policy, best suited to thecharacteristics of the Scottisheconomy
• encouraging research and investmentto spur growth in key sectors whereScotland has comparativeadvantages, for example in energy,food and drink, life sciences,financial services, creative industriesand sustainable tourism
• borrowing responsibly for investmentin key long-term projects, such asthe Forth Road Bridge
• representing Scottish interests
internationally: for example fishingpolicy in the European Union; duties
on whisky in the World TradeOrganization
• establishing a distinct populationstrategy, addressing thedemographic and skills challengesthat face the nation
22
What steps are being taken to mitigateScotland, in particular against the effectsof resource depletion? We are so dependent inevery way now, that huge changes are needed to empower and re-skill future generations tocreate a resilient, sustainable community with confident, capable people able to meet the verychallenging times they will face.(Oban National Conversation event, 5 October 2009)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 44/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
ECONOMIC AND FISCAL POLICY
Introduction
3.5 The Scottish Government aims to
create higher levels of sustainableeconomic growth and improvementsin productivity, labour marketparticipation and population, whilebuilding solidarity, cohesion andsustainability.19 An economic andfiscal framework that enhancesScotland’s long-term competitivenessand ability to respond swiftly anddecisively to short-term economic
pressures and circumstances is vitalto achieving sustainable economicgrowth.
3.6 For over a generation, the growth
rate of the Scottish economy hasbeen lower than that of the United
Kingdom and other comparableEuropean countries. In the 30 yearsto 2007, Scotland’s average annualGDP growth rate was 2.0% – lowerthan the United Kingdom economyas a whole (2.4%) and well behindIreland (5.3%), Norway (3.1%) andFinland (2.9%). As a result of being
locked into a low-growth cycle forso long, Scotland now trails many
comparable European countriesacross a range of economicindicators.20
Current responsibilities
3.7 The current devolutionarrangements give the ScottishGovernment responsibility for anumber of policy areas that affectScotland’s long-term economicperformance, such as education,
transport, planning and economicdevelopment. The GovernmentEconomic Strategy outlines howthese are used presently to improveScotland’s sustainable economicgrowth rate.21
3.8 However, key elements of economicpolicy, including taxation,macroeconomic policy, science andinnovation, social security,employment law and financial
regulation lie outside currentScottish responsibilities.
23
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 45/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Fiscal policy
3.9 The Scottish Parliament andGovernment are responsible for theallocation of much of public sectorexpenditure for Scotland: around£30 billion out of £50 billion.22
However, several key areas of
Scottish public spending are reserved,for example defence spending.
3.10 In contrast to its spendingautonomy, Scotland has very limitedresponsibility for raising money forpublic spending. Only three taxation
instruments are devolved toScotland: local taxation (currentlythe council tax); business rates; andthe Scottish Variable Rate which canvary the basic rate of income tax by
up to 3p.23 The vast majority of taxrevenue raised in Scotland is set andcollected at the United Kingdomlevel. For devolved matters, theUnited Kingdom Government then
determines how much of this shouldbe reallocated back to Scotlandthrough the Scottish Block Grantand the operation of the BarnettFormula (see Box 4 on the Barnett
Formula).
3.11 Scotland also has very limited abilityto borrow. The Scottish Governmentcan borrow only from the UnitedKingdom Treasury and for immediatecash-flow purposes. Unlike local
authorities, and indeed the NorthernIreland Executive and the vastmajority of other comparabledevolved governments, the ScottishGovernment cannot borrow forwider policy objectives, for exampleto meet pressures in an economicdownturn or to fund capital projectslike the new Forth crossing.24
Macroeconomic policy
3.12 A balanced and supportivemacroeconomic policy frameworkis key to fostering innovation,
investment and job creation and increating the right incentives,conditions and opportunities foreconomic growth.
3.13 There are two main instruments ofmacroeconomic policy:
• monetary policy: the use of interestrates, money supply and exchangerates to influence the level ofmoney, credit and inflation in theeconomy
• fiscal policy: the framework for themanagement of government
spending, revenue and borrowing
24
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 46/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
3.14 Monetary policy is fully reserved andconducted through the Bank ofEngland. The Bank of England setsinterest rates, conducts operationsin the money markets and managesthe United Kingdom’s foreignexchange reserves. Its monetarypolicy remit is to deliver pricestability, defined by the UnitedKingdom Government’s inflationtarget of 2%.25 The inflation target is
set for the United Kingdom economyas a whole, and does not allowvariations in prices, demand, oreconomic cycles within the UnitedKingdom.
3.15 Overall responsibility for the
operation of fiscal policy and thepublic finances is also reserved to
the United Kingdom Government.The United Kingdom Governmentdetermines the framework for theconduct of fiscal policy and isresponsible for the management ofnet borrowing, financial reservesand debt.
Industrial policy and regulatory
framework
3.16 Other important economic policieslevers are reserved to the United
Kingdom Government, whichremains largely responsible for theframework for economic regulationin Scotland. This includesresponsibility for energy policy,including the oil and gas sector,
competition policy, company law,economic regulation of utilities (forexample telecommunications),regulation of financial markets,consumer protection and productand trading standards; and policiesaffecting the labour market,including employment law andmigration. These significantresponsibilities have a considerablebearing on the performance and the
growth potential of the Scottisheconomy.
Scotland within the current framework
3.17 Scotland’s lack of financialresponsibility has real economicconsequences. Opportunities arelimited to set competitive policies,
particularly taxation, and to use thefull range of fiscal and economicpolicy levers to complement thespecific strengths of the Scottisheconomy and address any
weaknesses. Commitments to investin long-term infrastructure are alsoconstrained by fiscal rules which aredetermined and revised by theUnited Kingdom Government and
not the best interests of the Scottisheconomy.
3.18 In macroeconomic policy, theScottish economy is subject to arange of ‘one size fits all’ fiscalpolicies which are set according toconditions across the UnitedKingdom as a whole, and do not aim
25
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 47/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
to meet Scotland’s distinct needs.The ability to take short-termmeasures to stabilise the economy,through, for example, tax cuts orsignificant increases in publicinvestment is severely constrained.The Scottish Government also cannotopt out of United Kingdom-widepolicies where an alternative solutionmay provide a better outcome forScotland.26 In times of economic
difficulty, the Scottish economy isaffected by the policies of the UnitedKingdom Government, and theScottish Government is limited in themeaningful actions it can take at theright time to address particularchallenges faced in Scotland.
3.19 As set out in the Scottish Government
Fiscal Autonomy in Scotland: thecase for change and options for reform the current financialsettlement does not provide theScottish Parliament with theresponsibility or the necessarymechanisms to boost Scotland’slong-term competitiveness, or
respond to short-term economicshocks.27 It also fails to provide a
framework which maximisesefficiency, transparency oraccountability. For example, withinthe current fiscal framework, policyinitiatives which successfullyincrease economic growth in Scotlanddo not produce a correspondingincrease in the tax revenue available
to invest in Scottish public services.Any increase in tax yield would flowto the United Kingdom. The limited
tax-varying opportunities providelittle incentive to spend less than theblock grant and few opportunities tospend more. More generally, theScottish Government’s budget isdetermined principally by changes inspending on equivalent programmesin England set by the UnitedKingdom Government and is notdirectly linked to the demand forpublic services of the Scottish
population.
3.20 There is also no direct accountabilitybetween the taxes raised in Scotlandand spending by the ScottishGovernment. In 2007/08,approximately 89% of the Scottish
Government’s budget was financedby a block grant.28 The United
Kingdom Government retainsresponsibility for the size of theScottish budget through theallocation of this grant and theapplication of funding rules andguidelines.
3.21 Finally, fundamental decisions suchas choice of currency and the overallbalance of taxation lie outwith the
remit of the Scottish Parliament. TheScottish Government cannot adoptmacroeconomic policies to addressthe weaknesses of the currentUnited Kingdom framework, such
as the limitations of the financialregulation and fiscal frameworks.29
26
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 48/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Economic and fiscal recommendations of
the Commission on Scottish Devolution
Macroeconomic policy
3.22 The Commission recommended thatmacroeconomic policy remainreserved to the United KingdomGovernment, although there shouldbe greater discussion between theScottish and United KingdomGovernments on macroeconomicpolicy.30 The Commission did notpropose any changes to the currentarrangements for monetary policy,
the currency or financial regulation.
Fiscal policy
3.23 The Commission’s terms of
reference charged it with makingrecommendations to improve thefinancial responsibility of theScottish Parliament. The Commissionrecommended that a greater shareof the Scottish Parliament’s budgetshould come from devolved taxationby the Scottish Parliament and theUnited Kingdom Parliament sharingthe yield of income tax in Scotland.
The Commission proposed that theScottish Variable Rate should bereplaced by a single Scottish rate ofincome tax, applying to the basicand higher rates of income tax. Thebasic and higher rates of income taxlevied by the United KingdomGovernment in Scotland would bereduced by 10p. Half the estimatedincome tax yield from savings and
dividends in Scotland would also beassigned to the Scottish Government.
The block grant from the UnitedKingdom Government to theScottish Government should bereduced by an equivalent totalamount. It would then be for theScottish Parliament to supplementthe block grant by setting a Scottishincome tax and deciding theappropriate rate.
3.24 The Commission recommended thata number of minor taxes (airpassenger duty, landfill tax, stampduty land tax and the aggregateslevy) should be devolved to Scotland,and the Scottish Parliament shouldbe able to legislate, with theagreement of the United Kingdom
Parliament, for new taxes whichwould apply in Scotland. The
Commission’s final report arguesthat these recommendations wouldgive the Scottish Parliament realfinancial accountability, and strike abalance between accountability,equity and efficiency.
3.25 The Commission recommended thatthe Scottish Government should begiven limited autonomy to borrow
to fund capital investment. Underthe proposals, Scottish Ministerswould be able to borrow only fromthe United Kingdom Government,which would set the conditions and
amount, therefore deciding theScottish Government’s ability tomanage its finances and capitalinvestment programme.
27
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 49/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
3.26 The proposals embody importantprinciples:
• the Scottish Parliament should beaccountable for some income tax inScotland
• that this taxation should be linked tothe level of public spending in
Scotland• that the Scottish Parliament should be
able to levy specific taxes, directedat particular policy objectives
• that the Scottish Government shouldbe able to borrow to invest in capitalprogrammes
3.27 However, Scotland’s budget wouldbe a complex mix of a block grant,various devolved taxes, taxassignment, tax sharing and
reserved taxes. The United KingdomGovernment would still collectaround 80% of all Scottish taxrevenues. Key elements of fiscalpolicy, such as corporation tax, VAT,
national insurance contributions,capital gains taxation, North Searevenues and the key types ofenvironmental taxation, wouldremain reserved to the United
Kingdom Government. In addition,responsibility for key elements ofthe income tax system, such aspersonal allowances, tax thresholds,the tax rates on savings and
dividends, the opportunity toestablish tax breaks for particulargroups such as pensioners, the self-employed and young artists, wouldremain reserved. The ScottishGovernment would only be able to
apply relatively broad brush changesto the income tax system, and eventhen, constraints on funding priorservice commitments would limitthe practical opportunities to deliverreal policy autonomy. Targeted andpotentially redistributive measures,open to the United KingdomGovernment, through adjusting thestructure of the income tax regimeand its interaction with the wider
tax and welfare system would notbe possible. The Commission’srecommendations would notimprove financial clarity andtransparency in Scotland, orsignificantly increase the autonomyof the Scottish Parliament.31 Theblock grant – set at the discretion ofthe United Kingdom Government –
would remain the most importantfactor in determining Scotland’sbudget.
3.28 The particular taxation mechanismsproposed by the Commission couldpose a risk to Scotland’s public sectorand to its economic performance:
for example, the ScottishGovernment would be heavily reliant
upon one single source of taxationrather than the range of taxesavailable to most governments. Thiswould leave Scotland’s budget moreexposed than under the currentarrangements. There is also a riskthat the Scottish budget could besqueezed inadvertently following
technical or administrative changesto the income tax system by theUnited Kingdom Government.
28
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 50/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Full devolution32
3.29 More extensive reforms of fiscalpolicy and responsibility have beenproposed during the NationalConversation.33 Essentially thesepropose that there should be agreater linkage between the level of
public spending in Scotland and thetaxation decided in the country, andthat the Scottish Parliament shouldmake decisions over a wider rangeof taxes, for example inheritance taxor corporation tax. These modelswould increase the economic andother benefits of reform, andprovide flexibility beyond that ofthe relatively limited Commission
proposals. For example, ReformScotland has proposed that the
Scottish Government and the UnitedKingdom Government are eachresponsible for raising what theyspend, with taxes allocated to orshared between them.34
3.30 Full fiscal autonomy would makethe Scottish Parliament and ScottishGovernment responsible for raising,collecting and administering all (orthe vast majority of) revenues inScotland and the vast majority of
spending for Scotland. A remittanceor subvention from Scotland to theUnited Kingdom would be requiredto cover common United Kingdompublic goods and services, such asdefence and foreign affairs. Therange of services paid for in this waywould be subject to negotiation atthe time of any revised settlement.In essence, this framework would be
the maximum form of tax and policydevolution short of independence.
29
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 51/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
3.31 In practice, a number of factors arelikely to limit the policy flexibility ofa devolved Scottish Government
even under full devolution:
• intra-national rules and guidelines,
in particular, European Union lawsgoverning taxation policy bothbetween and within Member States
• rules/agreements with United
Kingdom Government to align theScottish Government’s devolvedpolicies to those of the UnitedKingdom
• continued reservations: keyaspects of economic policy – suchas financial regulation, employment
and competition law – may remainreserved
3.32 It would be difficult to devolvemonetary policy effectively whileScotland remained part of theUnited Kingdom as a common
currency is a feature of a unifiedstate. For example, if majorityopinion in Scotland favoured joiningthe Euro, that would not be possiblewithin the United Kingdom.
30
After independence would theScottish Government’s ambition be
for a high-tax, high-spend economy,or a low-tax, market-driven economy?(Dumfries Summer Cabinet, 29 July 2008)
How will Scotland’s taxes beaffected in independence?(Kirkcaldy National Conversation event, 16 May 2009)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 52/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Independence
Monetary policy
3.33 Under independence, Scotland wouldhave the opportunity to choose themonetary framework and currencythat best suited the needs of the
Scottish economy. A larger currencyunion can offer some protectionfrom financial market speculation,although countries forgo the abilityto tailor monetary policy to theirspecific economic circumstances.
Monetary union can also benefiteconomic integration and trade byeliminating exchange rate risk.
3.34 Scotland would continue to operate
within the sterling system until adecision to join the Euro by thepeople of Scotland in a referendumwhen the economic conditions
were right.
3.35 A monetary union necessarily limitsmonetary policy discretion andflexibility. Greater emphasis istherefore placed on fiscal policy to
address the Scottish economy.
Fiscal policy
3.36 With independence, the ScottishParliament would be fully responsiblefor fiscal policy in Scotland,
including the collection of all taxesand government expenditures.35
The Scottish Government would be
able to borrow freely in internationalcapital markets, subject to marketconstraints.36 Ensuring thesustainability of public expenditurewould be Scotland’s ownresponsibility, as would managingthe national budget over the short
and long-term. It would, however, befor an independent Scotland todecide the taxation to be levied, the
level of government borrowing andthe level of public expenditure.
31
Where would an independent Scotland borrow from?(Kirkcaldy National Conversation event, 16 May 2009)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 53/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
3.37 Public sector borrowing and net debtare two of the most important andvaluable tools of macroeconomicpolicy. This debt must be managed toensure affordability and sustainability.
A Scottish Government would havethe opportunity to establish crediblefiscal rules to guide policy, drawingon the lessons and experiences ofother countries. Recent events, andin particular, the suspension of theUnited Kingdom fiscal framework,offer some important insights.
3.38 Independence would allow the
Scottish Government to enhanceScotland’s long-term competitivenessand better protect the economyduring downturns.37 This could beachieved, for example, through thecreation of a Fiscal Commissionsuggested by the Council ofEconomic Advisers.38 The fiscal
framework under independencecould make Scotland moreattractive for business by simplifying
the tax system and reducingcorporation tax. Independencewould also increase Scotland’sability to respond to changes in theeconomy through policies targeteddirectly at the Scottish economy, forexample investment in capital, bothphysical and human, and research
and development.
Financial regulation
3.39 Currently regulation of financial
markets is reserved and isconducted through a tripartite
agreement between the Treasury,the Bank of England and theFinancial Services Authorityalthough European regulations areof growing importance.39
3.40Independence would provideopportunities to:
• create a culture to ensure the
success of Scottish financialservices in the future• ensure market and financial stability
for the Scottish economy and fiscalpolicy
• maximise political accountability• influence European Union and
international policy from a Scottishperspective
• build on Scotland’s strengths asa financial centre
• attract new institutions to themarket
32
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 54/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
3.41 On independence, Scotland wouldneed to choose institutionalmechanisms for financial servicessupervision, to ensure an efficientlyfunctioning market, financial stabilityand consumer protection This couldbe done through partnershiparrangements with the rest of theUnited Kingdom or through its ownfinancial regulator, like Ireland. Thesystem chosen would need to reflect
the lessons of the current financialcrisis, for example greaterinternational co-operation inregulation of the financial servicesindustry. An independent Scotlandcould play a significant role inEuropean and internationaldevelopments and build its reputationas a global financial centre.
3.42 Independence would provideopportunities for new institutionssuch as a stock exchange. TheGlasgow Stock Exchange mergedwith the London Stock Exchange in1973, and subsequent attempts tocreate a Scottish Stock Exchangehave failed. A Scottish StockExchange in an independentScotland could help Scottishcompanies float, and provide an
alternative approach to accessingprivate capital to assist growth.
33
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 55/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
BOX 3: SCOTLAND’S PUBLIC FINANCES
1. There has been considerable debateabout Scotland’s fiscal position andthe contribution made by taxrevenues from North Sea oil and gasproduction.
2. Professor Alex Kemp and LindaStephen from the University of
Aberdeen have estimated Scotland’sgeographical share of oil and gasproduction using the principle of themedian line, that is, that all points onthe dividing line are the samedistance from the Scottish and restof the United Kingdom coastline.Analysis based on this research hassuggested that for most of the1980s, Scotland’s estimated fiscal
balance was in substantial surplus,driven in part by the significant
growth in North Sea revenues, at atime when the United Kingdom as awhole was building up substantialdebt.40 Analysis also suggests thatScotland’s estimated fiscal positiondeteriorated through the 1990s.However, since 2001/02, Scotland’spublic finances have recovered and
its fiscal balance, including anillustrative share of North Sea
revenue, is estimated to have been
broadly in line with that of the
United Kingdom and in the last threeyears measured the current budgetbalance has bettered it.
3. The most recent GovernmentExpenditure and Revenue Scotland(GERS) demonstrates that Scottishpublic finances ran current budgetsurpluses in each of the three yearsto 2007/08 worth a cumulative£2.3 billion, when an illustrative
geographical share of North Searevenue is included.41 In comparison,the United Kingdom ran a currentbudget deficit in each of these yearswhich was cumulatively worth£24 billion. Scotland’s overall fiscalbalance in 2007/08, which is theestimated current budget balanceplus net capital investment, was adeficit of £3.8 billion (2.7% of Gross
Domestic Product), similar to thosefor other OECD countries.42
4. GERS takes the currentconstitutional and fiscal frameworkas given. Under alternativeframeworks, Scotland’s fiscalposition would depend on the policy
choices of the government of theday and the economic climate.
34
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 56/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
BOX 4: THE BARNETT FORMULA
1. The Barnett Formula is used by theUnited Kingdom Government todetermine variations to the budgetsof the Scottish Government, WelshAssembly Government and NorthernIreland Executive. It was firstintroduced for Scotland in 1978 andhas remained largely unchangedsince, although since devolution it hasbeen routinely subject to marginal
adjustments to reflect populationchanges. These are given effectthrough the Statement of FundingPolicy between HM Treasury and thedevolved administrations, which isre-issued after each spending review.
2. Under the formula, increases ordecreases in the ScottishGovernment’s budget are determined
by increases or decreases in spendingin Whitehall Departments’ spendingon programmes which are devolvedto Scotland, calculated using relativepopulation shares.43 These increasesor decreases in Scottish, Welsh andIrish budgets are known as Barnett
consequentials. This means that thetotal level of public spending inScotland is largely determined byhistoric spending baselines, adjusted
by reference to decisions onspending elsewhere in the UnitedKingdom and not linked to currenteconomic conditions, the preferencesor needs of the Scottish people. Theformula also means that the Scottish
budget depends on unilateraldecisions by the United KingdomGovernment on spending in England.For example, the implementation of
efficiency savings across the UnitedKingdom Government, andreductions in Department of Healthbaselines in England in the 2009
Budget, resulted in the Scottish
budget being cut by £500 million in2010/11.
3. The United Kingdom Governmentcan also unilaterally decide not topass to Scotland consequentialincreases from United Kingdomexpenditure in a devolved policyarea (known as “formula bypass”).For example, Scotland did not receiveconsequentials from the capital
expenditure on urban renewalassociated with the London Olympicsor from the increase in prisonexpenditure in England in 2007,following the recommendations ofLord Carter’s review of prisons.44
4. There have been recent proposals toreform the method of funding thedevolved administrations. TheScottish Government report Fiscal
Autonomy in Scotland set out theshortcomings of the Barnett Formulaas a funding mechanism, and theoptions for full fiscal autonomy forScotland. The Commission onScottish Devolution and the House
of Lords Select Committee on theBarnett Formula both recommendedthat the current formula should bereviewed. The Welsh Assembly
Government’s IndependentCommission on Funding and Financefor Wales (the Holtham Commission)made similar recommendations.However, no consensus has beenreached on how an alternative system
would operate, and the UnitedKingdom Government has indicatedthat it does not accept the need forreform, although the Joint Ministerial
Committee (Domestic) is currentlyexamining whether an adjudicationprocedure could be established toresolve areas of controversy.
35
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 57/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
BOX 5: LESSONS FROM THE CURRENT
GLOBAL ECONOMIC SITUATION
1. The causes and the impact of theglobal economic slowdown haveraised important, wider questions
about the setting of economic policyin advanced economies. This isforcing a reappraisal of policy andinstitutional frameworks in severalareas, including the role of the state;the scope of financial regulation; the
objectives of monetary and fiscalpolicy; and the arrangements forinternational economic and financialcoordination.
Monetary policy
2. Independent central banks have
been generally charged withmeeting inflation targets, mainly
through interest rates. Some havebroader objectives: the UnitedStates Federal Reserve promotesemployment, stable prices andmoderate long-term interest rates.
3. Recent events in the globaleconomy have led to an element ofreappraisal of the objectives ofmonetary policy. One of the maincauses of the economic downturnwas imbalances in the globaleconomy. Finance from countrieswith high savings rates and currentaccount surpluses, such as Chinaand oil-producing states, flowed into
developed economies including theUnited Kingdom and the UnitedStates, leading to low interest ratesand a boom in credit, house prices,equity prices and trade deficits.
4. A number of commentators have
questioned why such imbalanceswere allowed to develop over such along period of time. This is based onthe argument that central banksshould target a broader measure ofinflation when setting interest rates,by including asset prices or keyelements of the macro economy
such as the balance of payments.45
However, central banks mightrequire additional policy instruments
to achieve dual objective ofpreventing asset price bubbles aswell as controlling inflation. MervynKing, Governor of the Bank ofEngland, has emphasised that usingone policy instrument to meet twoobjectives would involve a trade-off
between achieving both objectives.46
5. In time, the severity of the credit
crunch may lead to a re-casting ofthe objectives of monetary policy toplace greater emphasis on financialmarket and asset price stability.
Fiscal policy
6. The economic crisis has placedsignificant pressure on public sector
finances, and illustrated problems
with previous frameworks formanaging fiscal policy.
7. A common criticism of some previousfiscal rules, such as those of theEuropean Union, is that they lacked
firm theoretical foundations and settargets that were largely arbitrary.Other fiscal rules, such as those forthe United Kingdom, while groundedin economic theory, were open to
interpretation and failed to ensure
36
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 58/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
fiscal restraint and saving during
periods of stronger economic growth.For example, between 2001 and2008, the United Kingdom economygrew 15% but public sector net debtalmost doubled to £593 billion.47 In2008 the United Kingdom was forcedto abandon its two fiscal rules,replacing them with a temporary
operating rule.
8. In light of these criticisms, a number
of options for fiscal reform havebeen put forward:
• fiscal rules that are legally binding.This approach is taken in manyAmerican states, but its rigidityraises wider social and economicchallenges
• greater flexibility when setting fiscalrules. The European Union’s revised
Stability and Growth Pact nowplaces greater emphasis on theeconomic cycle and the underlyinghealth of the public finances
• greater independent oversight toassess compliance with the rules andprovide projections for the publicfinances. The Council of EconomicAdvisers has recently advocatedsupport for such a Fiscal Commission.
Financial regulation
9. Regulation in the United Kingdomdid not keep pace with innovation inthe financial markets. Hence the
disruption in sectors of the financialservices market that were poorly orunregulated, including hedge fundsand derivatives. Exposure in thesecomplex instruments led to major
losses for banks and damaged
confidence throughout the financialsystem. Regulators did not identifythe systemic risks caused by lossesin one organisation spreading toothers across the globe, andeventually the real economy.
10. The United Kingdom regulatorysystem did not prevent: businessesbecoming overextended throughexcessive leverage and risk taking;
over-reliance on wholesale funding;overdependence on risky products;and poor decisions over acquisitions.The United Kingdom Government
has outlined proposed changes tothe current regulatory framework ina White Paper.48
11. A further lesson from the currentcrisis has been how to regulate and,
if necessary, support multinationalinstitutions, which whileheadquartered in one area, operateacross jurisdictions. In the case ofcertain institutions, support hasbeen international. For example,the Belgian, Dutch and LuxembourgGovernments provided joint supportfor Fortis Bank.49 The G20 Summit inApril 2009 agreed to establish a
Financial Stability Board to extendregulation and oversight to allsystemically important financialinstitutions and to strengtheninternational regulation. In June2009 the European Council agreedto establish a European System ofFinancial Supervisors and a newEuropean Systemic Risk Board toimplement the international model.
37
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 59/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
38
SOVEREIGN WEALTH FUND
3.43 An independent Scotland could
create a sovereign wealth fund,based on Scotland’s oil and gasreserves, to provide an effectivemechanism to insulate the economyin times of economic instability andinvest for long-term sustainability.Since 1980/81 approximately 90% ofUnited Kingdom oil and gasrevenues have been generated froman area that could be classified as
comprising Scotland's geographicalshare of the current United KingdomContinental Shelf. Substantial NorthSea oil and gas reserves are yet tobe extracted, and their value is likelyto increase. The management ofNorth Sea reserves would thereforebe an important element ofScotland’s public finances under arevised fiscal framework.50
3.44 Under the current constitutionalsettlement, all revenues from NorthSea oil and gas production go to theUnited Kingdom Government andhave been used to fund governmentexpenditure or to lower taxation. Analternative approach is demonstrated
by the Shetland Islands. Since the1970s, Shetland Islands Council hasbeen able to levy a royalty overevery barrel of oil landed at SullomVoe and invested the revenue in anoil fund. The fund is now estimatedto be worth £180 million.51
3.45 A Scottish sovereign wealth fund
would invest a proportion ofthe revenues from oil and gasproduction over the long term,creating a permanent source ofrevenue. The fund would supportmacroeconomic stabilisation andaddress unexpected short-termspending pressures, safeguardingScotland’s fiscal position. The fundcould invest in low carbon sources
of energy production, providingScotland with new sustainablesources of energy.
3.46 The Commission on ScottishDevolution considered devolution ofsome element of oil and gas revenuesto the Scottish Government, but,
based largely on fluctuations in oiland gas prices, concluded that this
would expose the Scottish budgetto possible revenue fluctuations.52
However, the Commission’sIndependent Expert Groupsuggested that the creation of an oilfund can enhance intergenerationalequity, protect a country’s capitalstock over time and mitigate the
volatility of oil revenues.53
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 60/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
39
BUSINESS AND ENTERPRISE
Current position
3.47 Current devolved responsibilitiesare used to support enterprise and
business in Scotland,
54
and tosupport the Scottish EconomicRecovery Plan.
3.48 However, many of the key policyareas that contribute to enterprise
and business remain reserved, forexample company law, corporateinsolvency, competition andconsumers,55 health and safety
and employment rights. Underthese arrangements, Scotland'sgrowth has remained behind thatof the United Kingdom in nine outof the past 10 years.56
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 61/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Enterprise and business
recommendations of the Commission
on Scottish Devolution
3.49 The Commission concluded that aseparate macroeconomic policy forScotland would affect what theysaw as the benefits of the economic
Union.57 The Commission did nottherefore propose any alterations tothe Scottish Parliament and theScottish Government’s responsibilitiesaffecting business and enterprise.
3.50 The Commission did not recognise
or discuss the historic under-performance of the Scottish economycompared to the United Kingdom asa whole, nor the Europeandimension to economic Union, which
guarantees the free flow of goods,services and people betweenScotland, the rest of the UnitedKingdom and other member states.
3.51 The Commission did makerecommendations on related issues:health and safety and insolvency.
Health and safety
3.52 The Commission recommended acloser relationship between theHealth and Safety Executive (HSE)in Scotland and the ScottishParliament.58 The Commission foundno reason in principle why health
and safety (or elements ofenforcement) could not be devolved,but recommended that the currentreservation should continue.
3.53 This recommendation recognisedthe importance of devolved matters
to health and safety in Scotland andwould give some opportunity forScottish interests and factors toinfluence HSE policy and operations.However, devolution beyond the
Commission’s proposal wouldprovide clearer enforcement andremove boundaries to improveconsistency.
40
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 62/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Insolvency
3.54 The Commission’s solerecommendation was that the UnitedKingdom Insolvency Service, withinput from the Scottish Government,should be responsible for the rulesfor insolvency practitioners on both
sides of the border.59
3.55 As the Commission recognised,devolved Scots law governs muchof the substance and procedurefor insolvency in Scotland. Byincorporating these matters into
United Kingdom legislation, thisrecommendation would increasecomplexity and work against thepurpose of devolution.
41
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 63/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
3.56 There are a number of important areas of business andenterprise policy that could be devolved beyond therecommendations of the Commission on Scottish Devolution:employment60 and competition law; regulation of companies;and health and safety. The Scottish Parliament and Governmentcould be given responsibility in these areas to make Scotland anattractive environment for business and to promote sustainableeconomic growth.
42
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 64/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Corporation tax
3.57 A major policy lever that could bedevolved is corporation tax. Thetax burden on small businesses inScotland has been substantiallyreduced within existing devolvedcompetence through the Small
Business Bonus Scheme. A morecompetitive corporation tax couldboost the economy, includingforeign investment, research anddevelopment, and the siting ofcorporate headquarters. Corporationtax could be adjusted for small andmedium sized companies, greatertax allowances could be given fortargeted activities and the
administrative process could besimplified. The United Kingdom
(and hence Scotland) has the eighthhighest corporation rate in theEuropean Union; a number ofEuropean countries of comparablesize to Scotland have alreadyintroduced significantly morecompetitive corporation tax rates.Within a full devolution framework,
the Basque Country has used itsresponsibility for corporation tax to
introduce a lower statutory rate to
the rest of Spain, and to put in placemore competitive allowances forparticular growth enhancingactivities, such as investment inresearch and development.(see Box 7 on the Basque Country).
Independence
3.58 Under independence Scotland
would have responsibility for thefull range of policies to encourageenterprise and business growth,and the opportunity to address thefactors which have contributed tothe economic under-performanceof the last 30 years.
3.59 Scotland would continue to besubject to international rules, suchas European Union directives oncompetition and tax harmonisation.However, Scotland would act as anindependent state in its relationshipwith the international economic,financial and business community,and would have a full voice inEurope.
43
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 65/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Competition and consumers
3.60Recent research indicates a lack ofcompetition in markets in Scotland,with high prices relative to theUnited Kingdom in areas liketransport, utilities, catering andleisure services.61 Independence
would allow future developments incompetition and consumer policy tobe based on Scottish political, socialand economic interests, for examplesecuring or sustaining comparativeadvantage. Responsibility forcompetition in Scottish markets,combined with an enterpriseoriented fiscal policy, would:
• encourage businesses to improvetheir internal efficiency and reduce
costs• incentivise early adoption of new
technology and other forms ofinnovation
• increase the international
competitiveness of Scottishbusinesses and products
3.61 Scotland’s geography raises issuesfor consumers in the islands or in
rural areas, who enjoy far fewerchoices in the products and services
they use.62 Consumer policy in anindependent Scotland could bedeveloped in the context of a setof key principles such as access,choice, safety, information, fairness,representation, redress, andeducation.
International trade
3.62 Scotland has long been an outward-looking trading nation, with strongglobal connections. Scottishbusiness organisations work acrossthe globe to increase internationaltrade revenue through exports. They
also seek to increase investment inScotland and promote Scotlandinternationally as a vibrant place tolive, work and do business with.
3.63 Scotland’s biggest trading partner isthe rest of the United Kingdom, with
trade worth £26.1 billion in 2007.63
On independence Scotland and therest of the United Kingdom wouldretain common interests and tiesthrough shared history, geography
and trade links. As a full member ofthe European Union, Scotland wouldcontinue to have access to itsmarkets. Independence wouldenhance the opportunities for
Scotland’s wider international tradeand investment, underpinned byforeign and fiscal policies dedicatedto Scotland’s political, social andeconomic interests. For example,
Scotland’s overseas representationis likely to focus on business andenterprise, rather than the projectionof power.
44
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 66/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Tax collection
3.64 The overall tax burden is centralto the competitiveness of the tax
system, but the costs ofcompliance are also important.
A study commissioned by HMRevenue and Customs in 2006estimated that administration ofUnited Kingdom corporation taxcost business £608 million, 70% ofwhich was from Small to MediumEnterprises.64
3.65 A simpler tax system in Scotlandwould reduce costs for businesses
and government, reduce incentivesfor tax avoidance and non-
compliance, and potentiallyincrease revenue.65 Reportingof statutory accounts and taxcalculations could be unified forsmaller companies. The smallestcompanies might be assessed fortax on cash flow rather thanaccounting profit. Business leaders
could be directly involved in thedesign of revised tax, regulation
and enterprise systems forScotland, avoiding the uncertaintysurrounding recent UnitedKingdom announcements oncapital gains tax.
45
e event in elrose wa attended by a good crosection of the communityand the open format leto informative discussion.
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 67/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
BOX 6: SCOTLAND’S ECONOMY
1. Scotland has a diverse and open knowledge-based economythat provides employment for around 2.5 million people andgenerates total annual economic output of over £100 billion.66 Inaddition, Scotland’s offshore natural resources, including oil andgas, generated an estimated annual output of over £30 billion in2008.67
2. Scotland’s economy has adapted well in recent decades to theforces of globalisation, and the structure of Scotland’s economyhas changed significantly. In common with many industrialisedcountries, the manufacturing sector has declined and the servicesector has grown. In 1981, 479,000 people in Scotland wereemployed in the manufacturing sector; this had fallen to 220,000
in 2007. In contrast, between 1981 and 2007, employment in theservice sector rose by 587,000, more than compensating for thefall in manufacturing employment.68 The service sector nowaccounts for around 75% of employment in Scotland.69 Scottishfirms also continue to maintain and develop global competitive
strengths in the manufacturing and engineering sectors throughinnovation and commercialisation of research.
3. The Scottish economy remains diversified with a number ofsectors contributing to output, employment and exports.Scotland’s goods and services are exported across the globe.Beyond the United Kingdom, the European Union and NorthAmerica are the main export markets for Scottish firms.70
4. To expand Scotland’s areas of international comparative
advantage, the Government Economic Strategy recommendsbuilding critical mass in a number of key sectors with high growthpotential and the capacity to boost sustainable economic growth.The Scottish Government continues to support enterprises acrossScotland in other sectors where action can be taken to overcomeweaknesses in markets, and where particular businesses can makea significant contribution to the Scottish economy.
46
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 68/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
5. The energy sector makes a substantial contribution to Scotland’seconomy. In 2007, the energy sector employed directly 40,700 people,accounting for 23% of the total people employed in the energy sector inthe United Kingdom.71 Scotland’s oil and gas industry, based in Aberdeen,is one of the world’s largest energy hubs, and is home to major Europeanheadquarters of global companies like BP and Shell. The industry body,Oil and Gas UK, estimates that in total the sector supports around195,000 jobs in Scotland through its impacts on the supply chain, exportactivities and employee expenditure throughout the economy. Since1976/77, production from North Sea oil and gas fields has generatedmore than £269 billion (2008 prices) in direct tax receipts to the United
Kingdom Government.
6. In addition to the oil and gas sector, Scotland has considerable potentialto develop renewable energy and low-carbon energy production,contributing to Scotland’s targets to reduce climate change emissions.The sector is expanding rapidly in terms of new capacity and output,with electricity generation from renewable sources reaching 20% of
gross consumption in 2007. The sector is estimated to employ 4,000 –6,000 people, and there is scope for significant expansion over the next
decade.72 Scotland’s natural advantages, coupled with investment in newtechnologies, means that it is well-placed to be a major European centrefor the production and export of renewable energy.
7. The financial services industry has a long history in Scotland, and it
remains an important part of the economy. Edinburgh is one of Europe’slargest financial services centres, and many of the world’s major financialorganisations have offices there. The industry employed directly 91,500people in 2007.73 Global turmoil in financial markets experienced since2007 has created a challenging environment, but Scotland’s strengths in
financial services remain despite the pressure on the banking sector.Several financial services companies in Scotland continue to makeannouncements of expansion and investment plans.
8. Food and drink (including agriculture and fisheries) is a key sector in theScottish economy. The contribution to economic output from food anddrink manufacturing was £3.2 billion, of which over half was from themanufacture of beverages.74 The spirits sector within drinksmanufacturing, especially whisky, forms an important part of the sector’scontribution to the Scottish economy in terms of value added and exportpotential. Agriculture and fishing provide further economic contributionalong with the wider food and drink supply chain.75
47
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 69/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
9. Tourism provides an important source of expenditure in Scotland’seconomy, and helps generate economic activity in some of the morerural and fragile areas of Scotland, sustaining communitieseconomically and socially. Around 14.6 million tourists visited Scotlandin 2008, and total expenditure on tourist trips stood at £4 billion. 76
10. The creative industries make an important contribution to Scotland’seconomy. Scotland’s creativity has a strong international reputation.Scottish art, film, fashion, music and literature is recognisedthroughout the world, as are the design and computer gaming
industries. Creative industries have grown over the past 10 years inScotland, and they are estimated to contribute £2.4 billion toeconomic output and account for 5% of Scotland’s total exports.77
11. The Life Sciences sector in Scotland is diverse, encompassing a rangeof industries including biotechnology and pharmaceutical companies,contract research organisations (CROs), medical device anddiagnostic companies, along with specialist suppliers and supportorganisations. This sector employs over 30,000 people directly and
indirectly in more than 600 organisations, with an annual turnoverexceeding £3 billion and economic output of £1.3 billion.78
12. Scotland’s strong academic base is evidenced by the size, scope andinternational standing of Scottish higher education institutions, withfour (Edinburgh, Glasgow, St Andrews and Aberdeen) among theworld’s top 150 universities.79 Directly employing some 35,159 full-timeequivalent staff and teaching some 224,855 students, Scottishuniversities had a total turnover of £2.48 billion in 2007/08. 80 Scotlandhas the highest ratio of cited research papers to Gross Domestic
Product in the world and the impact of Scottish research is rankedsecond in the world, behind only Switzerland.81 Scottish universities
attracted 33,520 international students in 2006/07, at 14.6% of thestudent body third in the Organisation for Economic Cooperation andDevelopment behind Australia and the United Kingdom.82
13. Scotland has a diverse economy which plays a dynamic role in themodern global economy. Scotland has responded to shifting globalpatterns to ensure that its workforce has the right skills and that its
business infrastructure remains competitive.
48
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 71/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
MIGRATION
Current position
3.66 Demographic change presentsScotland with challenges of growingthe population and addressing thestructure of the Scottish population,in particular those of working age.
Population growth is a key driver ofeconomic performance and Scotlandhas a population growth target tomatch average European populationgrowth over the period from 2007to 2017.84 The average age of theScottish population is predicted toincrease, with the working agepopulation decreasing and a greaterratio of pensioners to persons of
working age.
85
3.67 The Scottish population is projected
to decline in the mid-2040s, with theworking age population projected todecline after 2020. The structure ofthe Scottish population is projectedto change more rapidly, with olderpeople accounting for a relativelyhigher share of the Scottishpopulation.86 The dependency ratio
– the ratio of persons aged under 16or over pensionable age to those of
working age – is projected to risefrom around 60 per 100 in 2008 to68 per 100 in 2033.
3.68 Immigration is currently reservedto the United Kingdom Parliament.For migrants from outside theEuropean Economic Area, there isa points-based managed migration
system which takes account ofqualifications, age, salary, andlanguage skills. For skilled migrantsthere is also a shortage occupationlist. Some elements of the system
reflect Scotland-specificcircumstances, such as recognitionof Higher National Diplomas as aqualifying criterion, and a separateScottish shortage occupation list.
However, the points based systemoperates at a United Kingdom level,with no substantial regionalvariations, which makes attractingthe required number of migrants to
Scotland more challenging, asScotland has different populationneeds from most other parts of theUnited Kingdom.
50
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 72/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
51
We really applaud and support the United Kingdom Home Office’s points based system forimmigration. But it is very unfortunate that it isnot taking into consideration the regionaldifferences in immigration attractions in England versus Scotland. Why not do a regional variation?(Edinburgh CEMVO event, 22 April 2009)
Migration recommendations of the
Commission on Scottish Devolution
3.69 The Commission recommendedretaining the current reservation ofimmigration, but that activeconsideration should be given to
agreeing sustainable variations toreflect the particular skills and
demographic needs of Scotland. TheCommission concluded that freedomof movement and employabilityargued for one system throughoutthe United Kingdom. However, themajority of submissions theCommission received on this issuecalled for greater flexibility and
more responsibility for Scotlandwithin an overall United Kingdom
framework. Sub-state migrationpolicies have been establishedsuccessfully in a number of countries,including Australia and Canada.
3.70 The Commission’s recommendation is
a variation on existing arrangements,which allow Scotland to contribute to
overall United Kingdom immigrationpolicy, but give it no formal role. TheCommission would not give Scotlandresponsibility for its migrationrequirements for either economic ordemographic reasons, as these wouldbe subject to policy imperatives inother parts of the United Kingdom.Experience elsewhere shows that
greater responsibility for Scotland todetermine its own migration policyneed not have the impact on the restof the United Kingdom suggested bythe Commission.
Independence
3.71 An independent Scotland would haveresponsibility for its own migration
policy and its borders. Scotlandfaces different issues from the otherparts of the United Kingdom, andmigration policy could be tailored toaddress the economic challenges ofdemographic change. Immigration
could also help address skillsshortages in Scotland’s labour market.
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 73/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
52
3.72 Many nations use migration policiesto address demographic problems,as well as addressing skillsshortages. Both Canada andAustralia give priority to potentialimmigrants with particular skills andexperience. Quebec has its own
immigration policies, establishedunder the Canada-Quebec Accord
on Immigration, which requires,amongst other things, thatimmigrants can speak French orEnglish. A Scottish migrationscheme could both place particularimportance on required skills andgive priority to immigrants whoassist in meeting the demographic
challenges, for example youngpeople or families with children.
3.73 Citizens of European Union memberstates are entitled to freedom ofmovement within the single market.As a full member of the EuropeanUnion, Scottish borders wouldremain open to European Union
nationals, just as Scots are free tomove throughout the EuropeanUnion.
3.74 Scotland’s immigration systemshould also support the country’scommitment to human rights. Likeimmigration, asylum policy iscurrently the responsibility of theUnited Kingdom. On independence,Scotland could take into account
economic and demographic needs,as well as human rights and justice,
when considering asylumapplications. Responsibility for theimmigration and asylum systemwould allow Scotland to providegreater security to asylum seekersawaiting the outcome of theirapplication and ensure a fairerand more humane asylum system.
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 74/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
53
BROADCASTING
3.75 Broadcasting is a key part ofnational life, expressing Scottishculture to domestic and internationalaudiences. The broadcasting
industry also makes an important
contribution to the economy.
Current position
3.76 Broadcasting is a reserved matter.All decisions about broadcastingwhich affect Scotland are taken bythe United Kingdom, includingrelated matters such as thetelevision licence fee, broadcasting
spectrums, funding and regulation.
3.77 In 2008, only 3.7% of the BBC’snetwork television programmeswere made in Scotland, while STV isnow obliged to produce only 1.5 hoursof non-news programming per week,a reduction from three hours priorto January 2009. The ScottishBroadcasting Commission expressedstrong concerns about the state of
public service broadcasting inScotland, and identified a number ofareas where viewers felt that thereshould be a better choice ofprogramming relevant to Scotland.87
Broadcasting recommendations of the
Commission on Scottish Devolution
3.78 The Commission made onerecommendation relating tobroadcasting: that the appointmentof the Scottish member of the BBC
Trust should be the responsibility ofScottish Ministers, subject to thenormal public appointments process.This recommendation could be
implemented immediately withoutthe need for legislation. Although itwould not directly affectbroadcasting in Scotland, theproposal would give the ScottishGovernment influence over parts of
the broadcasting framework with aparticularly Scottish element.
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 75/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
54
Full devolution
3.79 Further devolution would provideopportunities for Scotland to haveresponsibility for different parts ofits broadcasting framework, whileremaining within the overall UnitedKingdom framework, including the
BBC and Ofcom. Examples of such
an arrangement include Catalonia,which is responsible for Catalanbroadcasting, while the Spanishgovernment is responsible forSpain-wide broadcasting.88
3.80 Additional responsibilities couldinclude: new public servicebroadcasting bodies, such as theScottish digital networkrecommended by the Scottish
Broadcasting Commission; ensuringthat Scottish culture and interestswere better represented throughtelevision and radio programming;responsibility for appointments of
board members of MG Alba (theorganisation responsible for theoutput of BBC Alba). Under furtherdevolution Ofcom could be chargedwith taking the lead in setting
commercial, public service networksnations and regions obligations toScotland and ensuring they were met.
3.81 The majority of funding for public
service broadcasting in the UnitedKingdom comes from the TV licencefee (for the BBC) and advertising.The United Kingdom also providesfunding of £98 million for S4C inWales from general taxationrevenues, in addition to theprogramming subsidy provided by
broadcasters which is worthapproximately £25 million. Further
devolution should be accompaniedby a negotiated arrangement forfunding public service broadcastingin Scotland. Scotland could, forexample, be allocated a share of TVlicence revenues and revenuesgenerated from licensing broadcastersand other telecommunicationsoperators to use spectrum.
Why is broadcasting a reserved issue? I askspecifically because I am interested in Gaelicbroadcasting where the broadcasting side isreserved and the Gaelic side is devolved. This causes some odd situations.
(Dundee Summer Cabinet, 30 June 2009)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 76/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
55
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 77/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Independence
3.82 Independence would mean fullresponsibility for broadcasting inScotland. Impartiality and politicalindependence of broadcasters,including a national public servicebroadcaster (based initially on the
existing staff and assets of BBCScotland), would remain a keyprinciple. There would be variousoptions available for the funding of aScottish national broadcaster. Thiswould ensure that an independentScotland had a high-quality,impartial national public servicebroadcaster which reflected Scottishlife, culture and interests.
3.83 An independent Scotland should not
lose the range and quality ofbroadcasting options receivedcurrently, and indeed should seek anenhanced broadcasting service. Forexample, Scotland should continue to
access BBC and other broadcastersfrom the United Kingdom and thereshould be no obstacles to Freeview,satellite and cable services beingavailable in Scotland on a similar
basis to now.
3.84 Independence would allow a
regulatory system that prioritisedissues of particular importance forScotland, such as making availableadditional spectrum for newchannels. A Scottish broadcastingregulator would also safeguard thequality and impartiality of Scottishpublic service broadcasters withinEuropean regulations.
3.85 Independence would also providethe opportunity to rationalisechannel 3 licensing arrangements.Following a merger between theBorder and Tyne Tees local newsservice, viewers in the South ofScotland now receive ‘local’ eveningnews programmes which arebroadcast from Gateshead.89
Independence would make it easierto establish licensing arrangements
which would better serve Scottishviewers, including a singlenationwide licence, or the creationof further licences to allow moreregional broadcasting.
Broadcasting industry
3.86 The Scottish broadcasting industry
employs 2,400 people and is wortharound £111 million to Scotland’seconomy. Independence wouldprovide opportunities to developthe industry further. The Scottish
Government could take a range ofsteps to attract inward investment,as have countries like Ireland andCanada. It is likely that this would inturn generate further investment in
the Scottish broadcasting industry,including further spending onprogramming. Additional investmentof this kind would bring improvedchoice for Scottish viewers and
would allow broadcasting, alongwith the other creative industries, tomake a significant contribution toeconomic growth in an independentScotland.
56
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 78/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
CONCLUSION
3.87 Addressing Scotland’s historicunderperformance, and encouragingsustainable economic growth is oneof the key challenges that face thenation. A number of different policyareas contribute to this goal, butmany of the major mechanisms opento independent states – economic
and fiscal policy, monetary policy,
international trade – are currentlyreserved to the United KingdomGovernment.
3.88 Some of these matters couldbe devolved within the UnitedKingdom, for example aspects ofthe taxation system or employmentlaw. However, any level ofdevolution would leave Scotlandwithin the overall macro-economicpolicies of the United Kingdom and
its international position on
economic matters, especially in theEuropean Union.
3.89 Independence would give Scotlandfull responsibility for its owneconomic performance, and for all
the policy mechanisms to encouragethe optimum level of development.
57
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 80/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
OVERVIEW
4.1 Scotland has a strong traditionof striving for a fairer and moreinclusive society, combining equalityof opportunity to thrive and excel,with support for those in need.
4.2 There are a number of important
areas of government policy thatshould build on those traditionalScottish values. Welfare supportand benefits should be responsive tothe specific needs of individuals andthe country: its economy, housing,
geography and demographics.People should be supported backinto work, and those who cannotwork should not be abandoned toa lifetime of poverty and struggle.Those who suffer from disadvantageor discrimination should beprotected.
4.3 Under the current devolutionsettlement, the major systemsfor providing social justice – thetaxation and benefits systems –are reserved to the United Kingdom,as is the legislation to protect and
promote equalities.
4.4 The Commission on ScottishDevolution recognised the closerelationship between devolvedpolicy, for example on poverty andhousing, and the reserved benefits
system. The Commissionrecommended a formal but very
limited role for the ScottishParliament and Government inthese matters. Devolution of greaterresponsibility for benefits wouldallow more integrated policy totackle poverty in Scotland, butwould also require devolution oftaxation, and full financial
responsibility for Scotland.
4.5 With independence Scotland wouldbe responsible for addressing all ofthese issues, and for designing andimplementing a taxation andbenefits system integrated withother policies on skills, education
and family support to address issuesof poverty and exclusion. Scotlandwould also be responsible forensuring that all its citizens aretreated fairly and equally, and enjoy
the full protection of the law.
59
CHAPTER 4
A FAIRER SCOTLAND
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 81/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
WELFARE AND BENEFITS
Social inclusion and poverty in Scotland
4.6 Around one in six people in Scotlandare living in relative poverty – that is,their income is so far from the normthat they face difficulties
participating effectively in society.This means that around 840,000Scots live in poverty, including200,000 children and 200,000
pensioners.90 Poverty levels inScotland are better than the UnitedKingdom as a whole, but the UnitedKingdom is above the average forother European Union countries forchild and pensioner poverty.91
Inequalities in health, education andemployment opportunities arepassed from one generation toanother: children who grow up in
poverty are more likely to havechildren who suffer from poverty,repeating the cycle.92
Current position
4.7 Scotland is responsible for anumber of services which influenceemployment prospects and lifechances, including education,training, skills, healthcare andchildcare. However, the majormechanisms for addressing poverty– social security benefits, tax credits,the minimum wage and employment
support – are reserved to the UnitedKingdom Government.
4.8 In important areas Scotland cannotdesign or deliver policies to addressits social needs. For example,Scotland cannot determine eligibilityfor, nor set the levels of, benefits,and cannot supplement existingUnited Kingdom schemes for
particular social objectives – for
example supporting students orproviding child care – without therecipient risking the loss of existingUnited Kingdom benefits or taxcredits. Equally, Scotland cannot optout of changes by the UnitedKingdom Government which are notappropriate for Scotland, forexample broad market areas forHousing Benefit not suitable for
Scottish conditions.93 Scotland isalso constrained in developingdevolved policies where there areconnections with the reservedbenefit system, for example localgovernment taxation. The UnitedKingdom Government withdrewAttendance Allowance from thosereceiving free personal care, adding£30 million a year to the costs borne
by the Scottish Government.
60
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 82/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Welfare recommendations of the
Commission on Scottish Devolution
4.9 The Commission concluded that the
welfare system should continue to bereserved, as it ensures common socialcitizenship throughout Great Britain,and the complexity of the social
security system could lead todifficulties in devolving any oneelement.
4.10 The Commission recommended:
• Scottish Ministers, with the agreementof the Scottish Parliament, should be
able to propose amendments to theHousing Benefit and Council TaxBenefit systems in Scotland connectedto devolved policy
• a formal consultation role should bebuilt into the commissioning processfor welfare to work programmes totake into account the views of theScottish Government
• the Deprived Areas Fund should be
devolved to the Scottish Parliament• the United Kingdom Government
should explore devolving thediscretionary elements of the Social
Fund
61
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 83/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
4.11 These recommendations recognisethe close link between devolvedpolicies and the reserved benefitssystem, and embody an importantprinciple: that the ScottishGovernment has a legitimate interestin the development and delivery ofthese policies in Scotland. However,the recommendations do not giveScotland a substantive role indecision making. There is no
obligation on the part of the UnitedKingdom Government to acceptScottish proposals, even when thesehave been agreed by the ScottishParliament.
4.12 Devolution of the Deprived Areas
Fund would enable Scotland to planand spend in a more integrated and
strategic fashion, but there is nocommitment to a Deprived AreasFund beyond 2011. Similarly,devolving elements of the SocialFund would present opportunitiesto align the funding better withScottish priorities.
Full devolution
4.13 Full devolution would allow Scotlandto develop a benefits system guidedby a number of key principles to
eradicate poverty and reduce incomeinequalities:94
• a fair and transparent benefitssystem, sympathetic to thechallenges faced by people living inpoverty and providing confidence in
the security of their income
• benefits, tax credits and employmentsupport systems working inharmony to support those who canmove from poverty through work,with financial benefits for workingthat are significant and sustained
• transitional support into employmentshould be transparent, responsive,quick and effective, so successfulemployment is not undermined by
financial uncertainty• for those that cannot work, benefits
must provide a standard of livingwhich supports dignity, freedom andsocial unity
4.14 It would be possible for Scotland todevelop a devolved benefits system
within the United Kingdom. InNorthern Ireland social security,
child support and pensions aredevolved and there is a separateNational Insurance Fund.
4.15 However, for full devolution of the
benefits system, there would needto be appropriate levels of fiscalautonomy in Scotland. It would bedifficult for Scotland to takeresponsibility for the levels of and
eligibility for benefits without beingresponsible for any resulting costs,or being able to take advantage ofany savings. In turn, this wouldrequire Scotland to have substantial
responsibility for raising its owntaxes and designing a system to meetboth welfare and wider economicneeds.95 This seems unlikely whilethe United Kingdom has a one-size-fits-all welfare system.96
62
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 84/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Independence
How do you propose to fund pensions, nationalinsurance, benefits etcon independence?(Haddington National Conversation event, 28 September
2009)
4.16 Independence would give Scotlandresponsibility for the taxation andbenefits system. On independencebenefits, tax credits and the statepension would continue to be paidas now in an independent Scotland.It would be for future Scottishadministrations to deliver
improvements to the system,designed for Scottish needs.
4.17 In both 2006/07 and 2007/08, asmaller percentage of governmentrevenue was spent on welfare inScotland than in the United Kingdom
as a whole: spending on socialprotection accounted for 34% oftotal government revenue in the
United Kingdom, but 33% inScotland, including a geographicshare of North Sea revenues.97
4.18 A range of factors would affect thedesign and delivery of a taxationand benefits system for anindependent Scotland, including theoverall effect on the economy; thebalance between reasonable
taxation and minimum standards
of care and guarantees of income;incentives to earn and work; and thecost to public finances. These all needto be balanced with the economiccircumstances and the priorities andneeds of the nation at any givenpoint. For example, the support thatmight be offered to home ownersduring a recession might differ fromthat offered at other times.
4.19 The welfare system of an independentScotland could also be guided by thekey principles to eradicate poverty.For example, a new system ofbenefits would avoid poverty traps,where little or no financial benefit isgained from employment because
means-tested benefits arewithdrawn. Those attending training
courses or doing voluntary work toimprove their employment prospectswould not be penalised by losingbenefits. Reductions in benefits toreflect people’s improvedcircumstances would be set to matchpolicy objectives, and integrated withthe overall taxation system.
4.20The welfare system could be
integrated and different forms ofsupport be made complementary.For example, free child care orpersonal care would not result in theloss of a corresponding cash benefit.
Similar decisions could be made onpayments for a particular purpose –for example to support childrenbeing cared for by relatives – whichcurrently result in the loss of otherpayments to support income.98
63
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 85/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
4.21 An independent Scotland coulddevelop its own flexible approachesto social issues, such as preparingpeople to return to work, or bringingtogether local and national servicesto meet the different needs ofdifferent individuals. A one-size-fits-all rule-based system cannot takeaccount of the diversity ofindividuals’ wishes and needs. Forexample for some lone parents a
voluntary approach to removingbarriers to employment may wellbe more appropriate than currentUnited Kingdom proposals forobligatory skills training whenchildren reach a certain age.
4.22 A key element of the welfare systemis that people are able to understand
easily what benefits they are entitledto, and how to access the supportavailable. Greater integration in anindependent system would improvepeople’s confidence and theirunderstanding of their entitlement.This would address the current levelof take up, estimated at 78-88% for
income support; 61-70% for pensioncredit; 80-87% for housing benefit;
62-68% for council tax benefit; and52-60% for job-seekers allowance.99
HOUSING AND REGENERATION
Current responsibilities
4.23 Many responsibilities for housing and
regeneration policy are devolved,including funding, land-use planning,tenancy rights, housing quality,property law and regulation oflandlords. Significant progress hasbeen made since devolution,including homelessness legislation,measures to improve the conditionof housing stock in the social andprivate sectors, and introducing the
first national mortgage supportscheme for homeowners at risk fromrepossession. Scotland’s housingdiffers from the rest of the UnitedKingdom: there is still less private
housing and a higher proportion ofsocially rented stock; housing hasbeen more affordable than theUnited Kingdom average and thehousing market less volatile;
Scotland’s climate affects approachesto energy efficiency and fuelpoverty; and there is a differentlegal system.
64
What would the Scottish Government doto address carers’ problems financially,were we to have independence?(Melrose Summer Cabinet, 28 July 2009)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 86/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
65
4.24However, important policymechanisms such as inheritance tax,Stamp Duty and social securitysystem are reserved to the UnitedKingdom. The distinctive features ofthe Scottish housing landscapemean that an approach which maybe appropriate in other parts of the
United Kingdom will not necessarilydeliver for Scotland.
Housing recommendations of the
Commission on Scottish Devolution
4.25 The Commission recommended:
• that Stamp Duty Land Tax should bedevolved to the Scottish Parliament,with a corresponding reduction inthe block grant
• Scottish Ministers, with the
agreement of the ScottishParliament, should have scope topropose new arrangements for
Housing Benefit and Council TaxBenefit when these are connectedto devolved policy changes
Stamp Duty
4.26 Responsibility for Stamp Duty wouldbe a useful addition to Scottishhousing and economic policy.Applying Stamp Duty rates toindividual properties within bulk
purchases could encourageinstitutional investment in the private
rented sector. Stamp Duty could beused to achieve wider objectives suchas incentivising energy efficiency.Stamp Duty holidays could relievestressed markets. However, if onlylimited taxes are devolved, it wouldnot be possible to adjust other taxesor borrow to compensate should the
base of those taxes fluctuate, asStamp Duty has recently.
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 87/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Housing benefit
4.27 The wide array of social securitybenefits and tax credits availablein the United Kingdom areinterdependent. Housing benefit is apassport to other benefits such asincome support. Changes to any
element of housing benefit are likelyto impact the coherence and thecost of the overall benefits system.The role recommended for Scotlandmay be more apparent than real.
Independence
4.28 As in other areas, housing andregeneration policy would benefitmost from the increased fiscal andeconomic responsibilities that
independence - or full devolution -would bring to Scotland. Housing,
particularly the social rented sector,also relies heavily on HousingBenefit to fund initiatives andresponsibility for this would assistintegrated and focused decisionmaking in Scotland.
Taxation
4.29 Scotland has experienced a lack ofhousing, particularly affordablehousing. One fiscal mechanism thatmight address this issue in ruralareas is Inheritance Tax. Thebeneficiaries of a will often need to
sell quickly to pay the InheritanceTax, moving stock from the rentalmarket and reducing options forthose who cannot or do not want tobuy. This problem affects Scotlanddisproportionately because of thehigh proportion of rural areascompared to the rest of the UnitedKingdom. Responsibility forInheritance Tax and other taxes
would allow Scotland to addressthis issue.
Funding housing policy
4.30There are two distinct streams ofhousing policy being implementedin Scotland, one set at a UnitedKingdom level through the benefitssystem and one set at a Scottishlevel. For example, the ScottishGovernment subsidises the social
housing sector by providingdevelopment grants to build newlow-cost homes for rent. Housing
benefit currently meets about two-thirds of the total rents in the sector,or £1 billion a year. Any significantchanges to housing benefit affectboth tenants and the devolvedpolicy on investment in socialhousing in Scotland. As housingbenefit decisions are taken forthe United Kingdom as a whole,Scotland has little influence on
the overall balance betweenthese sources of funding.
66
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 88/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
67
With some of the worst housing stock in Europe,and targets that we have committed to in terms
of achieving zero-carbon homes by 2016, what is the Scottish Government’s role in achieving zero-carbon development?(Dumfries Summer Cabinet, 29 July 2008)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 89/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
EQUAL OPPORTUNITIES
Current position
4.31 Equal opportunities is largelyreserved to Westminster. There are
two exceptions which enableScottish Ministers to:
• encourage equal opportunities• place duties on Scottish public
bodies, and cross-border bodieswith responsibility for devolved
matters, requiring them to makearrangements to ensure they are
operating within the law
4.32 Since devolution, Scottish Ministershave used these responsibilities toadvance equality in Scotland. It hasalso been possible to pursue
different policies within the contextof the legal framework. For example,equality provisions have beenincorporated into Scottish legislation
on housing, education and localgovernment. The Scottish Parliamenthas introduced legislation on hatecrime. The Scottish Government’spolicy on improving communityrelations with asylum seekers differs
from that of the United KingdomGovernment. Scottish Ministers haveplaced a duty on Scottish publicauthorities to report on equal pay.
4.33 The Equality and Human RightsCommission is a United Kingdom
body operating in Scotland with aScotland Committee and ScottishCommissioner. It is a statutory bodywith responsibility for equality andhuman rights, but only reservedhuman rights matters in Scotland.The Scottish Human RightsCommission has responsibility fordevolved human rights matters.
Equality recommendations of the
Commission on Scottish Devolution
4.34The Commission did not recommendnew arrangements. However, theCommission’s recommendation thatthe Scottish and United KingdomParliaments discuss and agreecommon social rights couldpotentially include reference toequality.
Full devolution
4.35 Evidence to the Commissionadvocated devolution of equalopportunities, as responsibility forequality legislation should not beseparate from key devolved policies
such as health, education, housing,family law, mental health, localgovernment and justice. There areparticular differences in Scotland’sdemographics and geography andits experience of discrimination andinequality, such as sectarianism.
68
How can the government truly facilitatean equal, equitable Scotland in which racialequality is maintained?(Edinburgh CEMVO National Conversation event, 22 April 2009)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 90/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Devolution of equal opportunitieswould allow legislation on equality
as it applied to devolved matters.Equality legislation passed inScotland would not apply toreserved matters such asemployment, and consideration
would need to be given to areaswhere there are reserved anddevolved responsibilities, suchas transport.
Independence
4.36 Scotland is an increasingly diversenation and its people have differing
needs and experiences. Takingresponsibility for equal opportunitieswithin an independent Scotlandwould allow equality legislation tobe promoted and enforced. Equalitylegislation would be developed in theScottish policy context and to ensure
coherence with legislation in otherareas such as health, education andhousing. In an independent Scotland,
it would be possible to establishclear lines of accountability, and todetermine distinct mechanisms forsecuring, promotion and enforcementof equal opportunities.
4.37 To follow international best practice
in equal opportunities Scotlandwould continue current UnitedKingdom commitments to Europeanlegislation and a range of Internationalconventions such as the UN
Convention on the Elimination ofDiscrimination against Women(CEDAW) and the UN Conventionon the Rights of Disabled People.With independence, Scotland couldimplement the requirements of these
conventions taking account of theScottish context.
CONCLUSION
4.38 Under the current devolutionsettlement the major tools topromote a socially just society remainreserved to the United Kingdom.While it would be possible todevolve to Scotland responsibility
for aspects of the benefits system,or a role in United Kingdom policies,full devolution would requireScotland to take responsibility for itsfinances and its taxation system toensure an integrated approach tothose requiring support. Therecommendations of the Commissionon Scottish Devolution fall far short ofthis level of competence for Scotland.
4.39 With independence Scotland could
address the needs of all in society,combining reliable and transparentsupport from benefits with
opportunities for training, supportfor housing and child care, andtaxation incentives integrated withinan overall system that did not imposefinancial barriers to those returningto work. Scotland could also ensurethat it took account of the diverse
needs of its population, promotedequality and addressed the barrierswhich prevent people from playing a
full role in society, that its mostvulnerable groups, and thosesuffering discrimination, receivedprotection and that internationalstandards for equality were upheld.
69
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 92/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
OVERVIEW
5.1 Scotland’s natural heritage enhancesthe lives of the people of Scotlandand supports tourism, agriculture,
fishing and aquaculture. The firstdecade of devolution has seenlegislation on climate change,improving the environment and
tackling flooding. Scotland hasdeveloped an approach to nationalparks, land reform and natureconservation designed for Scottishcircumstances, and distinct fromapproaches in the rest of the United
Kingdom.
5.2 Scotland could play a leading role inaddressing the challenge of climate
change and meeting Europeantargets for renewable energythrough its potential in wind, tide
and wave power. Scotland’sremaining reserves of oil and gassupport an infrastructure andtechnical expertise that could play aleading role in the development offuture low-carbon technologies, aswell as providing capital to invest in
developing renewables technology.
5.3 Major policy areas of energy,transport regulation and wasteremain reserved. Many
environmental, agriculture andfishing matters are the subject ofinternational, particularly EuropeanUnion agreement, where Scotland
has no voice outwith the policies ofthe United Kingdom Government.
5.4 Further devolution could provideScotland with mechanisms todevelop its potential, for exampleresponsibility for regulation of themarine environment could allowScotland to encourage offshorerenewables and carbon capture and
storage technology. However, theneed to work internationally, and thecentral role of the European Union in
environmental matters, means thatonly independence would allowScotland to make a full contributionand make the best use of itsexperience and potential.
71
CHAPTER 5
A GREENER SCOTLAND
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 93/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
ENVIRONMENT, AGRICULTURE
AND FISHERIES
Current position
5.5 Scotland has extensive devolvedresponsibilities for its naturalenvironment, natural resources,fisheries, and rural communities.100
Important areas in which theScottish Parliament and the ScottishGovernment have exercised theseresponsibilities include:
• climate change• marine issues• fisheries and aquaculture• agriculture• waste
5.6 Many environmental issues –including fisheries, agriculture,pollution and climate change –are subject to decisions made ininternational bodies, including theEuropean Union and the UnitedNations. The European Union alsoprovides access to a commonmarket for Scottish farmers,fishermen and businesses, as well
as funding opportunities to ruralcommunities, and regulations sothat food is safe to eat.
5.7 The Scottish Parliament andGovernment are responsible forimplementing European Union
decisions within devolved areas,but Scotland is represented at theEuropean Union as part of theUnited Kingdom. This can lead to
anomalous situations. For example,Scotland is among the largest seafishing nations in Europe and theScottish fleet is responsible forlanding 66% of the total UnitedKingdom volume of fish. Scotland isalso the European Union’s largestproducer of farmed Atlantic salmonand is a globally significant salmonproducing country in its own right.
The Scottish Parliament andGovernment are already responsiblefor both sea fishing and aquaculture.However, the United KingdomGovernment still takes the lead inEuropean Union negotiations onthese matters.
Climate change
5.8 The Climate Change (Scotland) Act2009 is the most ambitious climatechange legislation anywhere in theworld. The Climate Change DeliveryPlan sets out what needs to be done
now and in the medium and long-term to achieve the necessaryemissions reductions. Scotlandcannot deliver its emissions targetsby acting alone. For example,
targets for the European UnionEmissions Trading Scheme, thelargest carbon trading scheme inthe world, are set at European Unionlevel. The main responsibilities for
energy policy and regulation arereserved to the United KingdomGovernment, as are fiscal levers totackle climate change, includingVehicle Excise Duty, Fuel Duty,and Landfill Tax.
72
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 94/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Marine issues
5.9 Responsibilities for Scotland’scoasts and seas are divided betweenScottish Ministers and the UnitedKingdom Government, with differentrules within and beyond 12 nauticalmiles. Fishing is fully devolved out
to 200 nautical miles. Regulating oiland gas and shipping is reservedeven within inshore waters. TheCrown Estate, a reserved body,determines the use of the seabed,and coastguard services are run bythe Maritime and CoastguardAgency, an executive agency of theUnited Kingdom Government.Scotland has executive (but not
legislative) responsibility for marinerenewables. Legislative and
executive competence for marinenature conservation and installationsat sea are devolved, but only out to12 nautical miles. Despite recentagreements the underlyingfragmented nature of responsibilitiesdoes pose a risk to the successfulmanagement of marine issues, for
example supporting the emergingwind and tidal energy industry in
Scottish waters.101
Fisheries
5.10 The Scottish Government managesfish stock quotas and the activities ofthe Scottish fleet, including numberof days spent at sea, wherever theyfish within European Union limits. Itcan also regulate inshore fisheries by
all United Kingdom vessels withinthe 12 nautical mile territorial waterlimit around Scotland. Theregistration of fishing vessels is areserved function. Scotland hasbeen at the forefront of measures tosupport fish stock sustainabilitythrough, for example, theconservation credits scheme.102
However, quota management and
licensing cannot readily be adaptedto Scottish needs as long as they are
tied into a one-size-fits-all approachto United Kingdom fisheriesmanagement.
73
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 95/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Waste
5.11 Scottish recycling rates areincreasing, and Scotland has met itsshare of the 2010 European Union
Landfill Directive target 18 monthsahead of schedule. However,regulation of the design and contentof packaging is reserved, whichprevents Scotland taking its ownsteps to prevent and reduce wasteby designing in reusability andrecyclability.
Environmental recommendations of the
Commission on Scottish Devolution
5.12 The Commission made a number of
recommendations relating to theenvironment.
Environmental taxation
5.13 The Commission recommended that
Landfill Tax and the AggregatesLevy are devolved. Landfill Tax is atax on the disposal of waste and theAggregates Levy is a tax on the
commercial extraction of rock, sandand gravel. Devolution of thesetaxes would allow Scotland greateropportunities to design integratedwaste and other environmentalpolicies, for example by employing
both higher Landfill Tax and landfillbans which are being examined in aScotland-led project. However, keyenvironmental taxes, such as VehicleExcise Duty and Fuel Duty, would
remain reserved.
Marine and nature conservation
5.14 The Commission recommendedreview of the effectiveness oflegislative agreements between the
United Kingdom and ScottishGovernments on the marineenvironment, and that marine natureconservation should be devolved tothe Scottish Parliament at theearliest opportunity. This wouldallow fisheries and marineconservation to be managed in anintegrated way. However, regulatoryresponsibilities would remain
divided for marine planning, mineraldeposits and marine renewables.
Crown Estate
5.15 The Commission recommended thatthe United Kingdom Governmentshould consult Scottish Ministersand more actively exercise powersof direction under the Crown EstateAct 1961. The Commission alsoproposed that the appointment of aScottish Crown Estate Commissioner
should be made following formalconsultation with Scottish Ministers.
These recommendations would offerScotland a role in the managementof the seabed by the Crown Estate.However, the more significant issue– that revenues collected fromScottish coastal businesses by theCrown Estate bring very little visiblebenefit to Scotland – would remain.
74
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 96/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Animal health and welfare
5.16 The Commission recommended thatfunding for policy relating toendemic diseases in animals should
be devolved, while responsibility forfunding exotic disease outbreaksshould be retained at a UnitedKingdom level. At present, policy onanimal health, including response toexotic disease outbreaks isdevolved, but the budgets are heldby the United Kingdom Government.One of the lessons learnt fromScotland’s response to the foot and
mouth disease outbreak in 2007 wasthat the separation of policyresponsibility from financial
responsibility, as recommended bythe Commission, is unsustainable.103
Full devolution of the animal healthbudget would bring responsibilityfor that budget and animal welfarepolicy in line, and allow devolvedbudgets to support improvements
in animal health and welfare inScotland, to reduce animal diseaseand support increased sustainable
economic growth of the livestockfarming sector.
Food labelling
5.17 The Commission recommended thatregulations of food content andlabelling should be reserved, where
separate devolved arrangementswould place a burden on themanufacturing, distribution andsupply of foodstuffs to consumers.However, this recommendationwould separate responsibility forfood labelling from devolvedresponsibilities for health, nutritionand food policies. Food labelling inScotland is also governed by
European Union legislation andalready reflects the single Europeanmarket.
75
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 97/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Full devolution
Would there be scope for an independent Scotland to have a distinct policy on fuelduty that reflects theneeds of a ruraleconomy? I’m thinking
particularly inrelation to the farming, haulage and
fishing sectors that we have in the Borders.
(Jedburgh National Conversation Event, 29 April 2009)
5.18 Full devolution could bring benefitsto Scotland beyond those envisaged
by the Commission.
Fisheries
5.19 By agreement, quota managementand vessel licensing arrangementshave been overseen by the fourUnited Kingdom FisheriesAdministrations acting jointly. As
policy objectives and fleet structuresacross the United Kingdom havediverged, the current joint
management arrangements haveconstrained the ScottishGovernment’s ability to put in placearrangements tailored to Scottishcircumstances. Greater managementflexibility under full devolutionwould allow Scottish Ministers to
adapt fisheries managementmeasures to meet the specific needsof the Scottish industry. Such an
arrangement would avoiddisagreements between the ScottishGovernment and the UnitedKingdom Government on, forexample, quota management.
76
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 98/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
77
Rural and environmental taxation
5.20 The viability of rural areas andthe Scottish Government’s ability
to assist their economic recoverycould benefit from fiscalautonomy. For example,Scotland could tailor fuel andvehicle excise duties to takebetter account of Scottishcircumstances, balancing theneed to reduce emissions againstthe desire to support rural andremote communities. Specific tax
incentives could be given tolandowners who let whole farmsto new entrants to farming, or
relief from Stamp Duty Land Taxfor new entrants taking upleases. Such measures couldencourage new farmers andincrease enterprise in agriculture,food production and landmanagement in Scotland.
Independence
5.21 Independence would allowScotland to be a full member
of various internationalorganisations, including theEuropean Union. This wouldplace Scotland in a strongernegotiating position on ruraland environmental issues.
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 99/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
78
Relationship with the European Union
5.22 Currently the representation ofScottish interests in the European
Union relies entirely on thepolitical goodwill of the UnitedKingdom Government, withoutany external check or remedy.Where there are differences ofview on policy, for example onreform of the CommonAgricultural Policy (see Box 8) orgenetically modified crops orproducts, the United Kingdom
Government will vote contraryto Scottish preferences.Independence would giveScotland a full voice in Europe.
5.23 Similarly, independence wouldoffer Scotland, as a leadingfishing nation, the opportunity toargue directly for replacement ofthe current Common FisheriesPolicy, through, for example,promoting repatriation of seafisheries management to thecoastal Member States.
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 100/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
79
In my view the most cogent argument forindependence for Scotland is the need forseparate representation at the European Union.(Dundee Summer Cabinet, 30 June 2009)
Climate change
5.24 Scotland is a key player in energypolicy at both United Kingdom
and European Union levels. TheUnited Nations FrameworkConvention on Climate Change(UNFCCC) is the basis on whichinternational agreement onclimate change is negotiated. Themeeting in Copenhagen inDecember 2009 aims to deliver asuccessor to the UNFCCC KyotoProtocol. A new international
agreement would help Scotland
and Europe as a whole deliver
greater emissions reductions.An independent Scotland wouldmake its own contribution tosuch international agreements
(see Box 9).
5.25 The Scottish Government worksin constructive collaboration withthe United Kingdom Government,the Welsh Assembly Governmentand the Northern IrelandExecutive on climate change. Suchcollaborations could continue andexpand on independence, both
within this group, and within the
European Union.
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 102/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
BOX 9: INTERNATIONAL CLIMATE CHANGE NEGOTIATIONS
1. Scotland’s share of global emissions is small, and Scotland’smost important contribution at a global level is todemonstrate strong leadership and demonstrate that thepathway to a successful low carbon economy is achievable.
2. The Scottish Parliament has passed world-leading climatechange legislation, a key illustration of the positiveleadership and contribution Scotland can make to meetingglobal challenges. Scotland could be at the centre ofinternational discussions, such as the Copenhagen climatechange summit, supported by Scotland’s environmentalorganisations. However, Scotland’s official attendance atsuch events depends on the agreement of the United
Kingdom Government.
3. With independence, Scotland would be able to play a fullrole in a subject in which it has much to offer. The experienceof a nation with both oil and gas reserves, significant carboncapture and storage potential and the ability to developsubstantial renewable energy capacity would add to the
voices on this issue of global concern, to the benefit of thedebate on tackling climate change within Europe andacross the world.
81
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 103/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
TRANSPORT
Current position
5.26 The majority of transport functionsare devolved, and distinctiveScottish policies aim to create awell-connected, safe and reliabletransport system which underpins
business and economic growth.
5.27 A number of transport functionsremain reserved to the UnitedKingdom:
• roads: regulation of roads, vehiclesand drivers; national speed limits, andrenewable Transport Fuels Obligation
• rail: Great Britain-wide rail network
issues, standards and regulationframeworks, representation ofpassenger interests and complaints,and cross-border franchises
• marine: marine policy, regulationand security
• air: economic, security and safetyregulation, internationalrepresentation
5.28 The experience of enhanced raildevolution (see Box 10) demonstratesthe opportunities of devolvingresponsibility for transport policy,and focussing on Scottish needs.
Transport recommendations of the
Commission on Scottish Devolution
5.29 The Commission makes only onerecommendation affecting transportin Scotland. Among itsrecommendations on taxation(discussed in more detail at
paragraphs 3.22 – 3.28), theCommission proposed that AirPassenger Duty (APD) should bedevolved to the Scottish Parliament.Devolved APD could be reduced,
providing an incentive for airlines toexpand direct connections toScotland, benefitting the Scottisheconomy and reducing air travelconnections within the United
Kingdom. This is an example of thescope to use fiscal policy toencourage economic activity, andthe principle of the Commission’srecommendation could bring
benefits in other areas of taxation.
82
The result is a hotch potch which…is inhibiting transport integration in Scotland and the integration of transport in energyand climate change policies.(Scottish Association for Public Transport response to the National Conversation, September 2008)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 104/198
Independence
5.30 Independence - or full devolution -would offer allow Scotland tointegrate fully all transport policiesand initiatives.105 Scotland would alsohave responsibility for the overallpublic financial framework, which
could benefit transport throughborrowing and taxation policies.
Borrowing
5.31 Greater borrowing autonomy for theScottish Government would allowmore flexibility in the pace and
priorities of Scotland’s capitalexpenditure programme, andprovide an alternative source offinancing for major infrastructureprojects when required. Forexample, phasing the funding of thenew Forth crossing would allowexisting capital budgets to takeforward more projects at the sametime as bridge construction.
Transport taxes
5.32 Other taxes directly linked totransport could be devolved,
beyond the APD recommended bythe Commission on ScottishDevolution. Fuel duty, APD andvehicle excise duty accounted for
just 5% of Scottish tax revenue in2007/08, but they are importantpolicy instruments to influencebehaviour and achieve economic
objectives.
5.33 With responsibility for fuel duty,Scotland could press the EuropeanUnion for a derogation to apply alower rate of fuel duty in rural areas,
recognising accessibility and pricedisadvantages faced by Scotland’sremote and island communities. TheFrench government has introduced
a lower rate of duty in Corsica undera similar system. The UnitedKingdom Government has notpursued such a policy for Scotlandalthough the Commission onScottish Devolution acknowledged
the case for the Scottish and UnitedKingdom Governments ‘to pursue aderogation limited to the outlyingparts of the Highlands and Islands’.106
5.34 Responsibility for fuel duty wouldalso enable the Scottish Government
to respond to the pressures faced byScottish businesses due to Scotland’sgeographic position.
A National Conversation – YOUR SCOTLAND, YOUR VOICE
83
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 105/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
BOX 10: DEVOLUTION OF RAIL SERVICES
1. Until the Railways Act 2005 rail investment was decided at UnitedKingdom level, and Scottish projects competed for funding in aUnited Kingdom Government hierarchy. Since 2006 devolvedresponsibility for investment decisions has allowed the ScottishGovernment to target investment in the Scottish rail network to meetScottish objectives, from improving connectivity to meeting climate
change targets.
2. For example, in July 2007 the Scottish Government specified onbehalf of Scottish rail passengers and freight users industrydeliverables to secure the most positive outcomes for Scotland.Different priorities from the United Kingdom included a focus onfaster journey times to benefit business, resulting in substantialplanned investment in the Glasgow to Edinburgh line and from
Inverness and Aberdeen to the central belt.
84
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 106/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
ENERGY
Objectives of energy policy
5.35 Energy policy encompasses bothsupply of energy, and developingthe energy sector in Scotland’seconomy, including renewableenergy and climate change targets.
5.36 The Climate Change (Scotland) Act2009 introduced a statutory targetto reduce emissions in Scotland by
42% by 2020. 50% of Scottishelectricity consumption should comefrom renewable sources by 2020,with 31% by 2011, and, in line withEuropean Union-wide targets, 20%of all energy use should come fromrenewable sources by 2020.
5.37 Scotland has a competitiveadvantage in energy: natural and
geographic opportunities in windand wave and tidal generation; and
established expertise in the oil andgas and power generation industries.Scotland is estimated to have 25% ofEurope’s offshore wind resource,10% of Europe’s wave resource and25% of its tidal resource, whichwould make a significant
contribution to a low carbon futurefor Scotland and Europe. Energy willbe a key sector in Scotland’ssustainable economic growth overthe next 30 years and beyond.
Current position
5.38 The major policy responsibilities forenergy are reserved, including theregulation of energy markets,regulation and taxation of the oiland gas sector and the promotion ofScottish interests at European Union
level. Grid access is also reserved,and the current grid charging systemworks against the development ofclean, renewable energy in Scotland.
85
Nuclear, tidal, wind, clean-coal are, in varying proportions, ingredients for energy. The Scottish Government is against nuclear energy, so is thereany confident assurance that other remaining sources are adequate tomeet present and future demands, and within reasonable timescales?(Melrose Summer Cabinet, 28 July 2009)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 107/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
5.39 Scottish responsibilities in relation toenergy are limited to the promotionof renewable energy and energyefficiency.107 Through the planningsystem, the Scottish Governmentcan also influence decisions relatingto investment and the energy mix.
Energy recommendations of the
Commission on Scottish Devolution
5.40The Commission did not recommendany improvements to the currentresponsibilities for energy, either toencourage development of Scotland’s
renewables or to maximise thebenefits of oil and gas to Scotland.
Oil and Gas
5.41 The Commission established anIndependent Expert Group toexamine the issue of North Seataxation and revenue. This reportedthat there would be economicopportunities from devolvingresponsibility for North Sea taxation,although there could also bechallenges.108 The Expert Group also
identified the benefits of a Scottish
oil fund. However, the Commissionitself concluded that oil and gasrevenues should remain reservedand did not recommend a Scottishoil fund.
Other Energy Matters
5.42 The Commission consideredelectricity generation and supplyissues and made no recommendationsin this area. On transmissioncharging, the Commission noted
that this was an issue for many ofthose who gave evidence, but didnot consider the subject was withinits remit.
Full devolution
5.43 There are a number of areas of energypolicy which could be devolved,despite the conclusions of theCommission on Scottish Devolution.
Renewables
5.44The Scottish renewables targetrequires the right infrastructure,including harbours, test facilities, heatnetworks and upgrades to the grid.These require co-operative workingacross the public and private
sectors, and major investment. TheFossil Fuel Levy fund is collected inScotland to promote renewable
energy, and currently stands at£174 million. A decision by theUnited Kingdom Government meansthat this fund cannot be invested inrenewables without a correspondingreduction on the Scottish blockgrant. A devolved Fossil Fuel Levy
fund could be invested to encouragethe renewable energy sector inScotland, helping to meet renewablestargets in Scotland and across theUnited Kingdom.
86
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 108/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Carbon Capture and Storage
5.45 Carbon Capture and Storage (CSS)is a technology in which Scotlandhas a number of significantadvantages including academicexpertise, considerable offshorestorage capacity and the potential
to utilise the skills and infrastructureof our existing oil and gas andpower engineering sectors. Thereare a number of outstandingpotential CCS projects which couldbe developed in Scotland. Givinggreater powers to Scotland, such asensuring that funding raised fromthe proposed United KingdomGovernment levy on generation to
fund CCS projects is allocateddirectly to Scotland, would provide
an opportunity to assist thedevelopment of such projects andensure that Scotland can be seen asa leader in the development of thisemerging sector. In addition, CCS iscurrently regulated by a number ofbodies including Scottish Ministers,the United Kingdom Government,
and the Crown Estate. Devolving alloffshore licensing, including oil and
gas licensing, to Scotland wouldcreate a seamless regulatoryframework for low carbon-basedenergy activity in the Scottishoffshore area.
Oil and gas taxation
5.46 Oil and gas remain an importantsector in the Scottish economy.With further devolution the Scottishgovernment could encouragedevelopment in a number of keyareas:
• improving depletion rates and
promoting enhanced oil recovery• worldwide marketing of Scottishoil services expertise
• sustainable use and decommissioning
of the oil and gas infrastructure(including for CCS)
• encouraging diversification of skillsfrom the sector into low carbonopportunities such as CCS andmarine renewables
• better use of fiscal revenues,
including a sovereign wealth fund
5.47 The taxation regime is an importantfactor in maximising investment andproduction in the sector. The currenttaxation regime is made up of threeparts: petroleum revenue tax:charged at 50% on profits fromfields approved before March 1993(when the tax was abolished for new
fields); corporation tax: nowcharged at an effective rate of 50%;and license fees paid by operatorsto the United Kingdom Governmentto explore and extract oil and gasfrom specified areas.
87
As energy security issues climb to the topof the geopolitical security agenda, howwill this impact on Scotland’s energysecurity in the coming decade?(Dumfries Summer Cabinet, 29 July 2008)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 109/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
5.48 It is in Scotland’s interests to developan oil and gas taxation regime that
balances revenues, environmentalobjectives on decommissioning andre-use of the infrastructure, andincentives for continued developmentand exploration in the North Sea.
Remaining reserves may have awholesale value of between£650 billion and £1.1 trillion. Fulldevolution of the North Sea taxregime would allow the Scottish
Government to work with industryto develop a fiscal regime that metthese objectives and ensured anappropriate level of taxation on avaluable and non-renewable resource.
Independence
5.49 Independence would give Scotlandthe advantages of full devolution andbring responsibility for importantareas such as energy regulation andengagement with the EuropeanUnion.
Energy regulation
5.50 Under independence, energy marketregulation would address Scotland’s
specific needs in transmission ofenergy, encouraging renewables andenergy efficiency, promoting tradewith the rest of the United Kingdomand further afield within EuropeanUnion rules. The Commission onScottish Devolution considered the
issue of electricity supply andconcluded the current model of a
United Kingdom-wide market was thebest way ahead to ensure security of
supply and allow consumers accessto a competitive and modern energymarket, as well as ensuring thatobligations and targets are met.However, there are a number of
examples where independentcountries can operate a commonelectricity transmission anddistribution system, such as thepooling arrangements that exist
between a number of Nordiccountries.109 A single electricitymarket now exists between theRepublic of Ireland and NorthernIreland, demonstrating thatagreements and co-operationbetween individual countries onenergy market regulation is possible.
5.51 Under the current United Kingdomsystem, there are higher chargesfor connection and use of the UnitedKingdom electricity grid forgenerators furthest from the mainUnited Kingdom centres of demand,favouring generation in the south
of England. Scottish generatorsproduce 12% of United Kingdomgeneration, but account for 40%of the transmission costs, or about£100 million per year more thantheir proportionate share. This is areserved matter, and Scotlandcannot reform this regime eventhough it discriminates againstScottish generators and acts against
the delivery of renewable energytargets. With independence Scotland
88
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 111/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
90
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 112/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
OVERVIEW
6.1 Scotland has a long history ofdistinctive education, children’sservices and health systems withinthe United Kingdom. Devolution has
shown the potential that greaterautonomy gives Scotland to bringimprovements to these systems,while preserving their traditionalfeatures. Free personal care for the
elderly and the ban on smoking inpublic places have been landmarkachievements of the ScottishParliament. Scotland’s health servicehas maintained its integrated
structure while reducing waitingtimes, and public health legislationhas been modernised. In education,the Curriculum for Excellence hasmodernised the schools system,
while legislation has given greaterrights to those requiring particularsupport for learning.
6.2 Independence would allow healthand education to build on theachievements of devolution,integrating the support offeredwith important reserved matters,particularly the benefit and taxation
system, and contributing to tacklingwider issues of poverty, ill healthand economic inactivity in Scottishsociety.
HEALTH
Current responsibilities
6.3 From its inception, and in particularsince devolution, the NHS inScotland has been largelyindependent from the rest of theUnited Kingdom, and shaped bydifferent patterns of need andgeography. Such differences have
defined the provision of free healthcare in Scotland, and the NHS inScotland today is markedly different
from that in England and Wales.Scotland has a long-standingintegrated healthcare system.General Practitioners refer patientsto a treatment centre within theirown Board area or elsewhere if therequired service is not provided
locally. There is no competition, orinternal market, operating across theNHS in Scotland.
91
CHAPTER 6
A HEALTHIER AND
SMARTER SCOTLAND
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 113/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
6.4 Responsibility for the provision ofhealth care is almost entirelydevolved and there have beensignificant achievements over thelast ten years: a reduction in waitingtimes through more efficient ways ofworking; better workforce planning;more investment in new diagnosticequipment; the development of thesingle patient record. Prescriptioncharges are being phased out to
ensure that all patients have accessto the prescriptions they require.Public health legislation has beenmodernised through the PublicHealth etc. (Scotland) Act 2008.Scotland led in the United Kingdomwith legislation to ban smoking inpublic places.
6.5 The NHS in Scotland contributesdirectly to other policy objectives:growth in the Scottish economythrough investment in medical andlife sciences technology, andcontinuous improvement in itshealthcare services; developing ahighly skilled workforce with
increasing productivity levels; andimproving the health and wellbeing
of the working age population.
6.6 Relatively few areas related tohealth are reserved. Those whichare include: regulation of the main
health professions; misuse of drugs;medicines, medical supplies andpoisons; embryology, surrogacyand genetics; and abortion.111
Health recommendations of the
Commission on Scottish Devolution
6.7 The Commission made onerecommendation directly affectinghealth matters: that regulation of allhealth professions should bereserved. The Scotland Act reserves
to the United Kingdom regulation ofhealth professions which existedwhen the Act was passed.Regulation of any new healthprofession has been devolved. If theregulation of all professions wasreserved there would be noguarantee that the differences inScotland’s health structures andsystems would be taken into
account, as there would be nostatutory imperative for the United
Kingdom Government to seekagreement to its regulatory regimes.
What further stepsare planned to developour Health Service as
a public service inwhich healthcareworkers United Kingdom-wide would be proud to work?(Paisley National Conversation event, 14 September 2009)
92
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 114/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Full devolution
6.8 Scotland already has responsibilityto provide health care responsiveand relevant to the needs of peoplein Scotland, and free at the point ofdelivery. However, Scotland doesnot have responsibility in areas that
could be used to help reduce thenegative health effects of smokingand alcohol misuse. For example,alcohol misuse is one of the mostserious health problems facingScotland, and it also has significantsocial and economic consequences.Responsibility for some keymechanisms to address this issue –such as taxation levels on alcohol
and the advertising of alcohol –remains reserved to the United
Kingdom.
Independence
6.9 With devolution Scotland hasdemonstrated its innovativeapproach to public health and to thedelivery of healthcare. Scotland hasmaintained a high quality servicebased on a traditional national model,
and avoiding market led innovationsthat have been introducedelsewhere in the NHS. Independence
would ensure that Scotland had fullresponsibility for the entirety of itshealth system, including the fewhealth policy areas reserved to theUnited Kingdom, and, wider policyareas which could support healthpolicies in the economic and socialfields.
6.10 Under independence, cross-border co-operation in health could be enhanced.In some areas, co-operation has arisenout of necessity, requiring a sharing ofscarce resources or consistency ofapproach to complex issues; in others,it has arisen because of the benefitsco-operation has brought for both thepeople of Scotland, and the rest of theUnited Kingdom.
6.11 The allocation of organs for donationand transplantation is carried out on aUnited Kingdom-basis, which ensuresthe best match between donor andrecipient can be achieved. Thisarrangement could be maintained inan independent Scotland to ensure
equal access for every citizen in theUnited Kingdom who requires a
transplant. Likewise, there are UnitedKingdom-wide arrangements for thecommissioning of specialist healthservices for conditions or treatmentsthat are so rare or specialised that nosingle United Kingdom country couldsustain them alone. Similaragreements exist on a European
Union basis. These arrangements aremanaged on
behalf of Scotlandby the NationalServices Divisionof NHS NationalServices Scotland,to ensure that thepeople of Scotlandhave access to
such rare andspecialisedservices when theyneed them.
93
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 115/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
BOX 11: FREE PERSONAL CARE112
1. Free Personal and Nursing Care hasbeen one of the most high-profileScottish policies since devolution.
Over 50,000 vulnerable olderpeople in Scotland are currentlyreceiving assistance through the
scheme. Around 42,000 people arenow receiving personal care servicesat home at no charge allowing themto remain in their own homes andlive independently for longer. 9,600self-funders in care homes arereceiving a weekly payment of £153towards their personal care andaround 6,100 of these self-fundersare also receiving £69 per week
towards their nursing care costs. Thebalance has shifted from residentialcare to supporting people in theirown homes for long as possible.
2. The implementation of free personalcare illustrated a difficulty ofimplementing devolved policy which
interacts with the reserved benefitssystem. The United KingdomGovernment withdrew Attendance
Allowance from those people in carehomes receiving free personal care.The Scottish Government had toensure that these individuals are notdisadvantaged financially as a resultat a cost of £30 million a year.
94
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 116/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
95
BOX 12: SMOKING BAN
1. On 26 March 2006, Scotlandbecame the first part of the UnitedKingdom to introduce comprehensive
legislation to ban smoking inenclosed public places. The
legislation has been hailed not onlyas the most important piece ofpublic health legislation since theintroduction of the NHS but as adefining moment in devolution. Itis widely acknowledged that theleadership shown by the ScottishParliament encouraged smoking banselsewhere in the United Kingdom.
2. The legislation was preceded by aninnovative work programme to raiseawareness of the health risks of
passive smoking, research currentsmoking policies, gather international
evidence about the health andeconomic impact of smoking bans,and to test public opinion by a majorpublic consultation through anumber of routes. This provided awealth of evidence, including ofpublic support, on which to basethe ban.
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 117/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
EDUCATION AND CHILDREN
Current responsibilities
6.12 Scotland has long had its own
education system, with a distinctivecurriculum framework, qualificationsand examination system, andcompulsory periods of education.The quality of Scotland’s Universitiesis recognised internationally (seeBox 6). Scotland has its ownsystems of pre-school education,childcare, children’s services, achildren’s hearings system, social
work and youth work. Withdevolution in 1999, the ScottishParliament gained legislativeresponsibility for this educationsystem.
6.13 Successive Scottish Governments
have used devolved responsibilitiesto improve the Scottish educationsystem, including the Curriculum forExcellence, the biggest reform ofthe Scottish education system for ageneration. Legislative action has
been taken to strengthen the rightsof parents and young people withadditional support needs, andplanned provisions will update andstrengthen the consultationpractices and procedures forproposals that affect educationservices, such as the closure ofschools.
6.14 However, the current constitutionalsettlement places limits on theaction that can be taken in Scotlandto improve the lives of children andyoung people. In particular, thebenefits and tax credits system isnot responsive to Scotland’s specificneeds and is organised on a United
Kingdom-wide basis.
Children recommendations of theCommission on Scottish Devolution
6.15 The Commission made only onerecommendation concerningchildren services: that in dealingwith the children of asylum seekers,the relevant United Kingdom
96
H o w a r e w e g o i n g t o eq u i p o u r c h i l d r e n t o m e e t t h e c h a l l e n g es o f r e c ess i o n?
I s i n d e p e n d e n c e g o i n g t o b r i n g m o r e
o p p o r t u n i t i es f r o m t h e m?
( Ed in b urg h C E M
VO Na t iona l Co
n versa t ion e ven t, 2 2 Ap
r i l 200 9 )
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 118/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
authorities must recognise thestatutory responsibilities of Scottishauthorities for the well-being ofchildren in Scotland.
6.16 This recommendation reflects recentpractice. Scottish and UnitedKingdom Governments have regular
discussions about statutory duties topromote the well-being of childrenseeking asylum in Scotland. SinceJanuary 2009 all United KingdomBorders Agency staff andcontractors have been operatingunder a statutory Code of Practiceto keep children safe from harm, andwill be subject to a new statutoryduty from the autumn to safeguard
and promote the welfare of children.When children are detained at
Dungavel, an agreement existsbetween the Borders Agency andthe local authority to ensure thatchildren are given the help andsupport they need, though theScottish Government remainsopposed to any such detention ofchildren.
Independence
6.17 Independence - or full devolution -would allow children’s services to be
integrated with support through thetax credit and benefits system. Forexample, support with the costs ofchildcare (demand-side funding) isreserved to the United KingdomGovernment and is funded throughthe tax credit system, whilechildcare provision (support-side
spending) is devolved to theScottish Government. Parents findthis split of responsibilities confusingand there is widespread criticism ofthe way the tax credit system works.If the Scottish Government hadresponsibility for supply anddemand side funding for childcare itcould construct progressive supportfor the costs of childcare, which issimple and accessible for parents.
CONCLUSION
6.18 The achievements in health and
education since devolutiondemonstrate the potential forScotland to flourish when it has fullresponsibility and can develop andimplement policies to meet
particular Scottish priorities andneeds. Independence would allowScotland to bring a similar approachto all areas of government activity,as well as integrating existing health
and education services in widermechanisms to support and developthe people of Scotland.
97
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 119/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
98
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 120/198
OVERVIEW
7.1 Scotland requires a legal system thatsupports a safe and just society, andtackles societal issues like drug andalcohol misuse and violence,including domestic and sexual
violence. Human rights, liberties andequalities should underpin Scottish
society, ensuring justice andtolerance for everyone, andprotecting the rights of citizensagainst the state, and reflecting andprotecting the diversity of society,tackling issues of sectarianism anddiscrimination.
7.2 Scotland has a proud legal tradition,securing the basic rights of the
citizen within an effective justicesystem. Much of this system hasbeen devolved, but important areasremain reserved: laws to tackledrugs, firearms and terrorism; the
legal machinery for safeguardingthe human rights of Scottishcitizens; and important parts ofthe judicial system: aspects of theUnited Kingdom Supreme Court
and many tribunals.
7.3 The Commission on ScottishDevolution recognised that theprinciple of devolution would placeresponsibility for these matters inScotland, but only followed this
argument to its conclusion in theirrecommendations on airguns, drink
driving limits and speed limits. Thereis a separate criminal jurisdiction inScotland, and responsibility for thewhole body of criminal law couldnow be devolved to the ScottishParliament as the legislature forthat jurisdiction.
7.4 Independence would give Scotlandfull responsibility for its court
system, its approach to internationalobligations of law and rights, andallow Scotland to protect the humanrights of its citizens, guaranteeingtheir position within and against
the state.
CHAPTER 7
A SAFER SCOTLAND
A National Conversation – YOUR SCOTLAND, YOUR VOICE
99
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 121/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
CRIMINAL AND CIVIL JUSTICE
Current position
7.5 The Scottish legal system has long
been distinct from that in the rest ofthe United Kingdom. Its integrity andindependence were secured in theActs of Union, and administrativeresponsibility for running the justicesystem remained in Scotland.Devolution also gave Scotlandlegislative responsibility. TheScottish justice system has its owncourt system; different professional
legal bodies (the Law Society ofScotland and the Faculty ofAdvocates); its own legislation; itsown police forces; its ownindependent prosecution, headed by
the Lord Advocate; its own prisonand criminal justice social workservices.
7.6 Scotland has used its devolvedresponsibilities to tackle a range oflong-term societal problems, and toreform the system itself. Theseinitiatives demonstrate the principleof devolution: problems which are
endemic to Scotland are tackled inScotland, by a coherent legislative,policy and judicial framework to
tackle offenders, and reduceoffences.
7.7 Although the justice system inScotland is largely devolved, thereare several important areas whichare reserved to the United Kingdom:terrorism, legal safeguards forhuman rights, drugs, firearms,alcohol taxation, drink-driving limits,and some jurisdictions of the UnitedKingdom Supreme Court. If theScottish Parliament were responsiblefor these areas there would be a
more fully integrated justice system,with no gaps in the administration of
justice in Scotland.
Justice recommendations of the
Commission on Scottish Devolution
7.8 The Commission recommended thatScotland should be responsible for:
• the regulation of airguns
• licensing and control of controlledsubstances for the treatment ofaddiction
• drink-driving limits• the national speed limit in Scotland113
100
H o w i s t h i s g o v er nm e nt g oi n g t o m a k e S c ot l a n d
s a f e f or us t o li v e i n?(Kilmarnock National Con vers
ation e vent, 1 June 2009)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 123/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Firearms legislation
7.13 Responsibility for all firearmslegislation would allow the firearmsregime to be made consistent, easier
to understand and easier to enforce.The Scottish Parliament would bebetter able to protect communities
from illegal or irresponsible use offirearms, as it has with knives andother offensive weapons. A coherentfirearms policy for Scotland wouldmake it easier for legitimate firearmsusers to go about their activities,supporting the economic contribution
of shooting sports and relatedindustries. The risk of cross-bordertraffic in illegal firearms can be
addressed in the same way as it hasbeen for differences in the law onknife licensing and alcohol sales.
JUDICIARY AND THE COURTS
Current position
7.14 The Acts of Union guaranteedcontinued autonomy for Scotland’slegal system. Scots Law, and theprincipal institutions administering it,
have remained separate and distinctfor the last 300 years. The principaleffect of devolution was to give thenew Scottish Parliament
responsibility for maintaining a largeproportion of the statute law (Actsof Parliament) which the Courtsimplement. The major reservedmatters are some jurisdictions of thenew United Kingdom Supreme Court
and many reserved tribunals underthe auspices of the new UnitedKingdom Tribunals service.
7.15 The Supreme Court was establishedin October 2009 and its judges areappointed on the recommendationof the Prime Minister. It sits as aScottish Court to hear appeals fromcivil cases arising in Scotland, and
also hears criminal cases wherehuman rights are at issue, although
most final appeals relating tocriminal cases continue to be heardby Scottish courts. This split in thefinal jurisdiction on criminal mattersrisks inconsistency and confusion.The Supreme Court is required toinclude judges from each UnitedKingdom jurisdiction, but a clearmajority of its judges are from
102
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 124/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
England and Wales. It is not clear ifthe new arrangements will safeguardthe continued distinctiveness ofScotland's legal system or thecoherence of Scots law as a bodyof law.
7.16 The United Kingdom Tribunal
Service was created in 2008. Certaintribunals it administers sit inScotland as British institutions,handling cases that would otherwisebe heard by the Scottish Courts. Thecreation of the UK Tribunal Servicewas intended to rationalise the
system in England and Wales buthas in some cases added a furtherlayer to the framework for
administrative justice in Scotland.
7.17 Other reserved judicial mattersinclude the remuneration
arrangements for senior judges andthe appointment of Scotland’s mostsenior judges are still made on therecommendation of the PrimeMinister, on the nomination of theFirst Minister.
Courts recommendations of the
Commission on Scottish Devolution
7.18 The Commission considered thecomplexity of the tribunal system inScotland, and the development of asplit in the criminal law. On bothmatters, it found evidence of
concern, but the Commissionconcluded both to be beyond its
remit and madeno recommendations.115
Full devolution
7.19 Full devolution would allow theconcerns found by the Commissionon Scottish Devolution to be
addressed. In particular, the SupremeCourt could have a ScottishChamber, with a majority of judges
expert in Scots law and practice,which was the responsibility of theScottish Parliament. Such a Chambercould be properly integrated into theScottish legal system, addressing theconcerns about splits in the criminallaw. Devolution of all tribunals would
allow a Scottish tribunal service tobe established, integrated into theScottish court system and ensuring
greater efficiency. Full devolutionwould also allow Scotland tointroduce rational criteria, consistentlyapplied, to the allocation of
jurisdiction between the courts andtribunals.
Independence
7.20 The judicial branch is one of three
pillars of government in most states.An independent Scotland would
continue its tradition of a robust judiciary holding the executive andParliament to the law, as well asadministering and dispensingcriminal and civil justice in the normalway. Scotland would need to considerthe architecture of the court system,in particular whether there was aneed for a Scottish Supreme Court
on the United Kingdom model, or
103
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 125/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
whether existing Scottish courtstructures would suffice. Howeverthe functions of a supreme court ininterpreting the legal aspects of theconstitution would remain thefunction of the Scottish judiciary.
7.21 The Scottish legal system would
continue its traditional openness tothe positive influence of other
jurisdictions, particularly the Courtsof European institutions. Theprincipal difference would be thatScotland’s legal system woulddecide how to use these external
influences, including the rich jurisprudence of the rest of theUnited Kingdom and the
Commonwealth, rather than havingsome crucial decisions made by
judges from other jurisdictions.
HUMAN RIGHTS AND
RESPONSIBILITIES
Current position
7.22 The Human Rights Act 1998incorporated the EuropeanConvention on Human Rights intoUnited Kingdom domestic law byrequiring public authorities to act inaccordance with the Conventionrights. The Scotland Act providesthat Scottish Ministers cannot actincompatibly with any of thoserights and that the Scottish
Parliament cannot legislateincompatibly with those rights.
7.23 These statutes are reserved. TheUnited Kingdom Parliament stillclaims competence to legislate inways which are incompatible withthe European Convention on HumanRights and the human rights ofScottish citizens can therefore beencroached upon by Westminster
without reference to the ScottishParliament and Government. Greaterprotection has been given to thehuman rights of Scottish citizens insome devolved areas than has beenthe case in England and Wales, forexample on the retention offingerprints and DNA samples.However, the Scottish Parliamentand Government cannot protect
against threats to those rights if thematter is reserved, for example theintroduction of identity cards.
Human rights recommendations of the
Commission on Scottish Devolution
7.24 The Commission did not considerthe wider issue of human rights,their place in the governance of
Scotland, and the responsibility ofthe Scottish Parliament to protectthe human rights of its citizens fromlegislation in the United Kingdom
Parliament.
104
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 126/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Independence
7.25 With independence, Scotlandcould properly entrench the humanrights of Scottish citizens in the
constitutional framework of thenation. This approach would reflectinternational best practice, and the
international commitments Scotlandhas undertaken as part of the UnitedKingdom. Instead of regardinghuman rights as a burden on thegovernment, an independentScotland could take a positiveapproach to the place of rights in
its political and legal system,guaranteeing the position of theindividual against the state.
7.26 As an independent state, Scotlandwould generally inherit currentinternational obligations, and it
would be for the Government andParliament to consider how thesewere taken forward in the future,including, for example, the domesticprotection of the rights under the
jurisdiction of the European Court of
Human Rights. Independence wouldalso give Scotland the ability tochoose how to implementinternational obligations in areas
which are currently reserved in away sympathetic to local legaltraditions, and national concerns.
CONCLUSION
7.27 Scotland’s legal system has longbeen a distinctive feature of thenation. Devolution has provided the
opportunity to update andmodernise some of its features, anddirect the system to addressing
societal problems that has facedScotland. However, some of themost important of these – drugs,firearms, aspects of alcohol policy –remain reserved.
7.28 The recommendations of theCommission on Scottish Devolutionwould provide some furtherresponsibilities to Scotland, but not
in these central areas. The principleof devolution should apply to the
justice system as a whole, and givefull responsibility to the Scottish
Parliament as the law making bodyfor this jurisdiction.
7.29 Independence would also giveScotland responsibility for its whole
judicial system; and for the framework
of fundamental rights for its citizens.
105
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 127/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
106
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 128/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
107
OVERVIEW
8.1 A defining feature of anindependent state is its voiceon the world stage: in a wider
international organisation, such as
the European Union or the UnitedNations; or in bilateral discussionswith other nations, neighboursand trading partners. Influencingothers, representing the views andinterests of its people, is a key aimof governments across the worldin this global and interdependentage.
8.2 Scotland’s international relationshave three principal dimensions:
• relations with the European Union• relations with the wider
international community and
other international organisations• relations with the rest of the
United Kingdom
Given the European Union’s rolein many areas of government,
Scotland needs adequaterepresentation within theEuropean Union to negotiatedirectly for its own interests.
Scotland already has a distinct, iflimited, voice on the internationalstage, both as a nation in its ownright and as part of the UnitedKingdom. Scotland has close tieswith the rest of the United
Kingdom, from geography, fromsocial and historical bonds, andthrough institutions, such as themonarchy, and would maintainthese on independence.
CHAPTER 8
A STRONGER SCOTLAND
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 129/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
SCOTLAND IN THE WORLD TODAY
Current position
8.3 As a nation within the UnitedKingdom, Scotland has maintainedan international profile. People fromacross the globe have connectionsto Scotland; Scottish culture,
manufacturing and produce arewell-known throughout the world;and events such as Scotland Week
and Homecoming 2009 placeScotland, its heritage and itscontribution to the modern world onthe global stage. Since devolution,Scotland has developed a moreformal international role, for examplecontributing to international
development, particularly in Africa.
8.4 Under the current constitutionalsettlement, foreign affairs arereserved to the United Kingdom forformal international purposes, forexample membership of theEuropean Union. Scottish Ministerscan make representations on issuesof particular interest to Scotland
only through the United Kingdom
delegation. They can attendmeetings only with the agreementof the United Kingdom Government,and must adhere to the agreedUnited Kingdom position. Similararrangements apply to otherinternational negotiations whichaffect devolved matters, such the
Copenhagen conference on climatechange and the NuclearNon-Proliferation Treaty ReviewConference.
SCOTLAND’S FUTURE ROLE
External relations recommendations of
the Commission on Scottish Devolution
8.5 The Commission recognised the
importance of the European Unionto Scotland, and made severalrecommendations to strengthen therole of Scottish Ministers informulating the United Kingdom’sposition, both generally and whereparticular Scottish interests areinvolved. The Commission alsorecommended that there should be apresumption that Scottish Ministers
should be part of the United Kingdom
108
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 130/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
delegation when devolved issues arebeing discussed, and, similarly, thatthere should be a presumption,when practicable, that ScottishMinisters should be able to speak insupport of the United Kingdomposition.
8.6 These recommendations potentiallystrengthen the opportunity to reflectScottish concerns in Europe.However, Scottish Ministers wouldstill require the agreement of theUnited Kingdom Government to beable to speak, and would not be able
to deviate from the United Kingdomposition.
8.7 The Commission also made a
number of recommendationsdesigned to improve relationsbetween the Scottish Government
and the United KingdomGovernment within devolution.These included strengthening theJoint Ministerial Committee invarious ways, such as increasing thefrequency of its meetings andincreasing parliamentary scrutiny of
its proceedings. The Commission
also made several recommendationsto improve the relationship betweenthe Scottish Parliament and theUnited Kingdom Parliament. Theseincluded more formal channels ofcommunication, particularly wherelegislation involves both devolvedand reserved matters, and the
appearance of the First Minister andthe Secretary of State for Scotlandbefore relevant committees in theUnited Kingdom Parliament and theScottish Parliament respectively.116
8.8 Some of these recommendations
could improve the relationshipbetween the Scottish Governmentand the United KingdomGovernment, particularly those that
would genuinely improve theeffectiveness of the Joint MinisterialCommittee. It should be noted,however, that any improvements tothe relationship between theScottish Government and the United
Kingdom Government should ensurethat Ministers are held properlyaccountable to their own Parliamentfor the exercise of their respective
responsibilities.
109
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 131/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Full devolution
8.9 Scotland could not play a full role ininternational affairs withoutindependence. However, experiencefrom other countries shows that, evenwithin the current arrangements,Scotland’s international role could be
enhanced.
8.10 Devolved governments from bothBelgium and Spain have a right toattend meetings of the EuropeanUnion Council of Ministers whenmatters within their responsibilitiesare being considered. Similarly,representatives of the Germanregions – sitting in the upperchamber of the German parliament –have a key role in determining the
German position for European Uniondiscussions of matters within theirsole competence.
8.11 Full devolution could give similarrights of attendance at Council ofMinisters meetings to Scottish,Welsh and Northern Irish Ministers,instead of having to rely on thegoodwill of the United Kingdom
Government. Where devolvedinterests predominate, a Scottish
Minister could speak for the UnitedKingdom as a whole. This principleapplies to other internationalconferences and meetings, forinstance Scotland could also have aright of attendance at theInternational Climate ChangeNegotiations in Copenhagen.
Independence
Scotland in Europe
8.12 An independent Scotland would
continue membership of theEuropean Union, fulfilling theresponsibilities which membershipbrings, and maintaining its political,
economic and social links to Europe.As a nation within the UnitedKingdom, Scotland is alreadyactively involved in, and influencing,the European Union, is governed byEuropean Union law, and is
responsible for transposingEuropean Union law into Scots lawfor devolved subjects. However, aspart of the United Kingdom,Scotland is less fully involved inEuropean Union policy-making.Scotland derives a range of benefitsfrom being part of the EuropeanUnion, including access to the largestsingle market in the world. Full
membership of the European Unionwould allow Scotland to participatefully in European affairs, and ensurethat Scottish interests wererepresented. Settling the details of
European Union membership wouldtake place in parallel toindependence negotiations with theUnited Kingdom Government, andwould cover areas such as number ofMEPs and weight in the Council of
Ministers.
8.13 Scotland would represent its ownnational interests within the European
Union, in the same way as othermember states,117 influencing directlythe overall direction of European
110
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 132/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Union policy, as well as raisingScotland’s profile as a responsibleand active European nation.
8.14 As a full member of the EuropeanUnion, Scotland would have greaterrepresentation across the EuropeanUnion’s various institutions andbodies. Within the United Kingdom,
Scotland has six MEPs, butindependent countries of acomparable size to Scotland, suchas Denmark, have thirteen MEPs asrepresentation is calculated so that
there are proportionally fewer MEPsfor larger member states than forsmaller ones. An increase in thenumber of Scottish MEPs wouldwiden the range of committees on
which they could serve, furtherincreasing Scotland’s influence.Scottish Government Ministerswould sit on the Council of theEuropean Union, the organisation’s
principal decision-making body.
8.15 An independent Scotland would alsohave greater representation onother European Union bodies,including the Economic and Social
Committee and the Committee ofthe Regions. As a full member,Scotland would be eligible to serve
as President of the Council of theEuropean Union, which rotates ona six-monthly basis between allmembers. Scotland would havea strong and consistent voice inEurope to argue for its own nationalinterests, as well as representing
Scottish views on wider EuropeanUnion matters.
8.16 In an increasingly globalised world,membership of organisations such asthe United Nations, theCommonwealth, the World HealthOrganisation, the Organisationfor Economic Co-operation and
Development and the WorldTrade Organisation would cementScotland’s place in the international
community. Through theseorganisations, Scotland couldpromote its national interestsglobally, representing the viewsand interests of its people, andengaging with other states as anequal partner. Scotland would also
play a full role in considering andaddressing issues like peace and war,reconciliation and climate change.
As part of the United Kingdom,Scotland already has links to suchorganisations, but is not a full memberof most. Independence would enableScotland to play a full role in each ofthese organisations, with the samerights and responsibilities as all
other full members.
8.17 As part of the global community,an independent Scotland would
establish a diplomatic service, aswell as a government departmentto deal with international affairs.118
Scotland has already establishedits own offices in certain strategicoverseas locations (Brussels,
Washington DC and Beijing) torepresent key interests. ThroughScottish Development International,which promotes Scottish international
trade and inward investment, Scotlandalso has a presence in 21 otherlocations. Scotland would be well-
111
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 133/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
placed to build a strong diplomaticservice, promoting Scottish politicaland economic interests, as well asScottish culture, and offeringprotection to Scottish citizens. Thiswould be an important element ofScotland’s full role in theinternational community.
Scotland and the United Kingdom
8.18 On independence, relations betweenScotland and the rest of the UnitedKingdom would be conducted on anequal footing between two
sovereign governments. This shouldlead to an improved relationshipbetween the Scottish Governmentand the United KingdomGovernment, which is sometimes
strained by the devolutionsettlement, particularly around areasof contention. While areas ofdifference would exist – as iscommon between neighbouring
nations – independence wouldremove ambiguities and
disagreements over areas ofresponsibility, allowing thedevelopment of a strongerpartnership between the ScottishGovernment and the UnitedKingdom Government.
8.19 Independence would require
intergovernmental machinery tomanage a new relationship and togain maximum benefit from theScotland-United Kingdompartnership. Existing structures,such as the Joint MinisterialCommittee, should serve as a usefulmodel. Other existing bodies, suchas the British-Irish Council, wouldremain relevant after independence
(see Box 13).
8.20 A new partnership between theScottish Government and theUnited Kingdom Government wouldsupport cross-border institutionsand bodies which continue to exist
after independence. There wouldalso be benefits to Scotland and theUnited Kingdom retaining a strongpolitical relationship when dealingwith the European Union.
8.21 As equal sovereign states, Scotlandand the United Kingdom would be
able to work together in a strongpartnership on areas of mutualinterest and advantage. Anintergovernmental mechanismshould be created to help managethis relationship. This would helpensure that areas of commoninterests were reflected andadvanced in European Uniondecision-making.
112
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 134/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
113
BOX 13: BRITISH-IRISH COUNCIL
The British-Irish Council currently consists of: two sovereign states –the UK and Ireland; the three devolved administrations of Scotland,
Wales and Northern Ireland; and the three Crown Dependencies ofJersey, Guernsey and the Isle of Man. Arising out of the Agreementsunderpinning the peace process in Northern Ireland, the Council is aforum for finding and progressing areas of collaboration between allthe member administrations to develop policy solutions to commonchallenges. Each Member Administration has an equal voice at theCouncil, and decisions are taken by consensus. It would therefore makeno difference to the Council’s composition or operation if Scotland wereto become a sovereign state. It would continue as a valuable means ofexchanging experience and opinions, and agreeing future work to
benefit all the administrations represented. The Council provides a goodmodel for positive inter-governmental relationships in which mutualrespect is paramount, and Scotland will continue to support itsconsolidation. The next stage of this is to secure a standing Secretariat,which can then provide the Council with a secure base for its further
development.
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 135/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Who will qualify forcitizenship of Scotland should/when it becomes independent?(Written response to the National Conversation, August 2007)
8.22 Citizenship in an independentScotland will be based upon aninclusive model. Many people inScotland have ties to the rest of theUnited Kingdom, including familial,social and economic connections. Anindependent Scotland couldrecognise the complex sharedhistory of Scotland and the UnitedKingdom by offering shared or dual
citizenship. As a member of theEuropean Union, Scottish citizenswould have free access acrossEurope.
Scotland’s defence, security and
resilience
8.23 Scotland is currently unusual as anation in that it does not haveresponsibility for matters of nationaldefence. The Scottish Government,
unlike those in other nations, isunable to determine the levels ofspending on defence, or indeed howmuch of that spending occurs inScotland; it is unable to decide onwhether our young men and womenare sent to participate in conflictssuch as the Iraq war; and Scotland isunable to decide whether or notnuclear weapons are based on ourterritory. That is the defence status
quo for Scotland, with these issuesand others decided outwith Scotland.
8.24 A central function of government isto ensure the security of its citizensand to protect them, their propertyand way of life against threats.
Governments also plan and act toensure that society can withstandand react to major emergencies,whether natural or man-made.
114
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 136/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
115
8.25 Working to ensure the security of itscitizens and protect their prosperityand way of life against internal andexternal threats is a normal andnatural function of government andone carried out effectively by every
other nation state in the EuropeanUnion. Other partner nations havethe full range of responsibilities
including defence, security andresilience, each of which plays aninterlocking part in ensuring thesecurity of citizens.
8.26 The security of any state can bethreatened by hostile states,terrorism and serious organisedcrime. Security is also affected bytechnological change, climate
change, migration, competition forresources and international poverty.Societies also need to be resilient toother risks, such as extreme
weather, pandemic disease, utilitiesfailure, and industrial action.
8.27 These challenges require a range ofresponses: traditional policing ofserious crime; the use of intelligenceand technology to assess threats;planning for recovery from seriousincidents; and appropriate military
capabilities and partnerships. Suchpractical measures should becomplemented by core values, such
as respect for human rights and therule of law.
Current position
8.28 National security and defence arecurrently reserved, as areemergency powers.119 Other aspectsof security and resilience planning,such as policing and local authority
contingency planning, are devolved.In practice, there is considerable
overlap in these functions. Forexample, although national securityis reserved, Scottish Police forces,funded by and answerable to theScottish Parliament, implementmany aspects of counter-terrorismstrategy in Scotland. In the event of acatastrophic emergency in Scotland,the United Kingdom Governmentwould be able to impose emergency
regulations and a regional emergencyco-ordinator under reservedemergency powers but the planningwould rely on devolved agenciessuch as local authorities and NHShealth boards.
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 137/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
8.29 Almost all decisions about defenceand security are taken by the UnitedKingdom Government, with noformal role or consultation with theScottish Government or Parliament.Most prominently, decisions aboutthe deployment of United KingdomArmed Forces, for example toAfghanistan or Iraq, are solely forthe United Kingdom Government.Decisions about defence
procurement and defence facilitieswithin the United Kingdom can havea significant impact on Scotland’seconomy. Neither the ScottishParliament nor Government has anyformal role in these considerationsand there is no requirement for themto be consulted or even informed.The decision remains entirely within
the United Kingdom Government, asdo decisions on testing depleteduranium weapon systems in Scotland,and basing the United Kingdom’snuclear deterrent on the Clyde.
Commission on Scottish Devolution
8.30 The Commission concluded thatnational defence and security areirreducible functions of the State.120
The Commission was of the viewthat all parts of the United Kingdommust remain joined together for
defence and national security andthere should be “no risk of a lack ofclarity” over responsibility.
8.31 The Commission did not discuss theexisting relationship betweendefence, security and resilience, nor
the current overlap of reserved anddevolved policy responsibility,funding and agencies. It noted, inthe context of Inter-Governmentalrelations, that existing arrangements
for coordination in emergencieswere well developed and had beentested most recently in the outbreakof the Influenza A virus (sub-typeH1N1). However, the Commission
noted that these were pragmaticarrangements and that Ministersfrom devolved administrationsparticipated by invitation of theUnited Kingdom Government.121
The Commission made norecommendations to put thesearrangements on a more formalfooting for future clarity.
116
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 138/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Full devolution
8.32 National security and defence areseen as central to the functions of anation-state, and therefore difficultto devolve to Scotland within theUnited Kingdom.122 The experienceof other countries suggests that
defence policy would almostcertainly remain reserved to theUnited Kingdom Government.However, there are improvements tothe overall arrangements for defence,security and resilience that could bemade to enhance the effectivenessof current arrangements.
8.33 The reservation of emergencypowers could be removed, toemphasise the need for the United
Kingdom and devolvedadministrations to work together inemergencies. In practice, theScottish Parliament and Governmentwould have a role in the exercise of
the emergency powers, particularlyin devolved areas. To recognise this,the ability to make regulations couldbe exercisable by either Scottish orUnited Kingdom Ministers as
appropriate, on the model of sharedand community law powers underthe Scotland Act.123
8.34 Scottish Ministers could be given amore formal role on significantdecisions affecting Scotland, forexample the closure of a militarybase, particularly where thesedecisions have significant economicimpact, or the units support civilauthorities in Scotland (such assearch and rescue detachments andbomb disposal units). ScottishMinisters could be consulted on such
proposals, and disagreements couldbe taken to an inter-Governmentalmachinery, perhaps the JointMinisterial Committee.
8.35 Taking the country to war is themost serious decision the United
Kingdom Government can take.Under current proposals the United
Kingdom Parliament would gain aformal role in decisions to deployUnited Kingdom Armed Forcesoverseas.124 Extending this principleand consulting the other nationalParliaments and assemblies wouldrecognise the supreme importanceof such a decision to the United
Kingdom, and its constituent nations.
117
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 139/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Independence
8.36 Independence would give Scotlandfull responsibility for matters ofdefence, security and resilience, likeother nations. Independence wouldallow Scotland to decide anapproach to these issues that best
fits the national interest, based on
internationally accepted objectivesfor defence and security policy:
• to uphold national sovereignty andsecure the territorial integrity of thecountry
• to secure internal security in the
face of threats and risks• in partnership with other nations, to
help to prevent and resolve conflictsand war anywhere in the world
• in partnership with other nations, tofurther peaceful development in theworld with due respect for humanrights
8.37 There are a number of key tasks thatsimilar nations undertake to supportthese key objectives:
• securing territorial integrity• working with other nations to ensure
regional security
• developing partnerships with othernations to support peace, buildconfidence and stability in otherparts of Europe and the world
• supporting agencies responsible forcivil emergencies and security
• responding to domestic and
overseas threats to security• ensuring the nation is prepared to
deal with any domestic emergency• ensuring appropriate and
responsible care for veterans
There would be a range of choicesto be made for Scotland’sindependent defence and securitypolicy, including the size and cost of
Scotland’s defence capability,international defence alliances andits general approach to defence andinternational affairs.
118
What defence strategy would anindependent Scotland adopt?(Jedburgh National Conversation event, 29 April 2009)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 140/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
8.38 For example, Scotland could focus primarily onsecuring its territory, compared to the UnitedKingdom approach of also having the capacity to
conduct overseas wars. It could support UnitedNations peace keeping operations andinternational disaster relief with specialist units,such as medical or engineering corps as well asproviding expert civilian and military trainingsupport. It could continue to contribute to peace
enforcement operations, like those in the Balkans,and actively participate in the European Securityand Defence Policy of the European Union.
119
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 141/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
8.39 Each of these defence options has
opportunities and costs (although
current United Kingdom
Government defence spending in
Scotland is proportionately lower
than in the rest on the United
Kingdom – see Box 14), and there
are different models from similar
countries in Europe, and beyond.
Given the importance and
complexity of the issues involved, an
independent Scotland would require
a strategic defence review to
formulate and propose national
priorities for defence, and the longer
term objectives and structure of
Scotland’s armed forces. Similar
defence reviews have taken place at
a United Kingdom level.
8.40On accession to the Nuclear Non-Proliferation Treaty, an independent
Scotland would become a Non-
Nuclear Weapons State, taking on
the commitments of the treaty to
work for nuclear non-proliferation
and promote a nuclear weapon-free
world. The United Kingdom’s nuclear
deterrent would not continue to be
based in an independent Scotland
and a Scottish Government wouldneed to work in partnership with the
rest of the United Kingdom to
ensure an appropriate transition
and relocation.
8.41 An integrated approach to defence,
security and resilience would allow
an independent Scotland to protect
its own citizens, while further
developing the expertise and
capability to play a full part in
international efforts to address
terrorism, and other threats, and
respond to natural and man made
disasters, continuing the prominent
global role that Scots have played
over many years.
Alliances
8.42An independent Scotland would
have choices regarding its
membership of international
alliances. For example, countries
such as Norway and Denmark are
members of NATO whereas
countries such as Finland and
Ireland are not. Scotland, and this is
the stance favoured by the SNP,
could co-operate with internationalalliances such as NATO through its
Partnership for Peace programme
while not being a member.
8.43Whatever the outcome of a strategic
defence review, an independent
Scotland's closest allies would
remain its current partners in the
United Kingdom. Continued defence
co-operation on training, basing andprocurement arrangements would
benefit both Scotland and the other
nations of the United Kingdom.
120
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 142/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
121
BOX 14: DEFENCE SPENDING
1. The United Kingdom currently spends a higher proportion of GDP on defencethan almost any other European country (2.4%)125 although the level of UnitedKingdom Government defence spending which takes place Scotland is lower.This expenditure is used to achieve global reach, and conduct overseasdeployment (such as Iraq and Afghanistan) as well as maintaining the nucleardeterrent.
2. An independent Scotland, following defence models similar to other Europeancountries, could choose to focus on non-nuclear domestic defence and securityand specific overseas peace-keeping operations. Scottish-based defenceindustries could benefit from any joint procurement arrangement with the restof the United Kingdom, as well as wider export opportunities.
3. Defence spending is intended to benefit the whole of the United Kingdom,through providing security and stability, but defence spending also has apositive economic impact on the regions and countries where it takes place. Forexample, military procurement and defence facilities directly supportemployment, and the wider economy, in the regions they are based. However,
Scotland receives a proportionally lower direct economic benefit from UnitedKingdom Government defence spending than it might expect. Actual direct
Ministry of Defence expenditure in Scotland over the five years to 2006/07 wassome £4.3 billion less than the population based apportionment of defencespending to Scotland over the same period.126
4. Ministry of Defence employment in Scotland has fallen from 24,200 in 1997 to17,900 in 2009, a proportionately larger fall than across the Ministry’s activitiesoutside Scotland. Consequently, Scotland’s share of Ministry of Defence
personnel has fallen from 7.0% to 6.5% over this period. The number of jobs
supported by Ministry of Defence expenditure in Scotland has also fallen inrecent years. In 2007/08 Ministry of Defence expenditure supported 6,000 jobsin the Scottish economy, down from 10,000 in 2003/04. 127
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 143/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
CONCLUSION
8.44 Only independence would giveScotland a full voice in internationalorganisations, especially the EuropeanUnion, and responsibility for its ownsecurity and defence policy. This voicewould represent Scottish interests,
and ensure that Scotland fulfilled itspotential to contribute to debates oneconomic matters, energy, fisheries,the environment and on matters ofpeace and war.
122
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 144/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
123
H o w w i l l a n i n d e p e n d e nt S c ot t i s h G o v er nm e nt r e l a t e t o ot h er g o v er nm e nt s
( a n d or g a n i s a t i o ns) a cr oss t h e c urr e nt
U n i t e d K i n g d om?(Dundee Summer Cabine t, 30
June 2009)
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 145/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
124
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 146/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
OVERVIEW
9.1 Devolution has given Scotland amodern democratic Parliament,open and accessible to the people,and elected on a proportional basis.Coalition and minority governmentshave held office successfully,demonstrating the adaptability ofthe Scottish political parties to new
ways of working together andgoverning.
9.2 The Scottish Parliament andGovernment have taken a range ofdecisions that have affected eachand every citizen of Scotland, and
have demonstrated that Scotlandcan govern itself effectively. TheScottish Parliament and the ScottishGovernment have both becomecentral parts of Scottish life. Peoplein Scotland routinely trust these
institutions more than theirWestminster counterparts, and lookto them to make the decisions whichaffect Scotland.128
9.3 Democracy in Scotland isunderpinned by key principles suchas power sharing and participation,which make Scottish governancedistinct from the rest of the United
Kingdom. The Scottish Parliamentprovides genuine access for the
people, through the legislative
process and the Petitions Committee,which make the Parliament
responsive, and helps maintainaccountability. The ScottishGovernment has pioneered innovativeconsultation on significant policymaking. Both have demonstrated acommitment to engaging with thewhole of Scotland by takingparliamentary committees and theScottish Cabinet out of Edinburghand around the country.
9.4 These features of today’s Scotlandindicate the direction for anindependent Scotland: a moderncountry where the democraticprocess provides transparency andaccountability. Independence forScotland would bring these
advantages to the whole range ofgovernment activity, including all thekey issues currently dealt with by
the United Kingdom Parliament andGovernment in their traditional way.
9.5 Responsibility for decision making
within Scotland is shared betweencentral and local government basedon mutual esteem and respect.Scotland should encourage a cultureof responsibility and independenceat all levels, with decisions being
taken at the right level to reflectspecific local needs, as well as thoseof the nation as a whole.
125
CHAPTER 9
A MODERN SCOTLAND
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 147/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
CONSTITUTION AND GOVERNMENT
The founding principles of the Scottish
Parliament
9.6 Those establishing the ScottishParliament deliberately set out tobuild a modern system of governance,particularly compared to the United
Kingdom. A Consultative SteeringGroup was set up to consider howthe Scottish Parliament wouldoperate,129 and indentified foundingprinciples to govern the relationshipbetween people, parliament and thestate in Scotland:
• power sharing• accountability• access and participation• equal opportunity
9.7 The Scottish Parliament has
successfully put into practice theprinciples on which it was founded:
• the petitions system makes theParliament accessible and improvesaccountability
• the legislative process gives civilsociety and individuals significant
opportunities to participate beforeand during the formal Parliamentaryprocesses
• both parliamentary committeesand the Scottish Cabinet take theprocess of government to all partsof the country
• participation and engagementis built into work of government,parliament, local government andwider public sector
9.8 The electoral system has alsoplayed an important role in openingup government in Scotland and insharing responsibility between theexecutive branch and the Parliamentitself. The proportional votingsystem has ensured that the Scottish
Parliament more closely reflects theviews of the people of Scotland, andthat parties have had to formParliamentary majorities in new
ways, either through coalition orthrough issue-by-issue negotiationsby a minority government. Theseadvantages have now beenintroduced to local governmentin Scotland.
126
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 148/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
127
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 149/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Current position
9.9 Aspects of the constitution,including the United KingdomParliament and the Union of theKingdoms of Scotland and England,
are reserved to the United Kingdominstitutions by the Scotland Act. Thesystem of government that has beensuccessfully built up over the lastten years is, therefore, subject toamendment – or even abolition –by the United Kingdom Parliament.
9.10 Also reserved are fundamental laws
which underlie the existence and
actions of the Scottish Parliamentand the Government, most obviouslymost of the Scotland Act and thelegal mechanisms for safeguardinghuman rights in Scotland. These canalso be altered by the UnitedKingdom to affect the competenceof the Scottish Parliament. Forexample, the Scottish Parliament
cannot legislate in a way
incompatible with human rights.However, while the United KingdomGovernment can be expected tocomply with its internationalobligations, legally the UnitedKingdom Parliament could amendthe mechanisms for protectinghuman rights, altering thefundamental relationship between
the legislature and the citizen. Thereare some safeguards, in that the
Scottish Parliament itself should beconsulted and agree to any variationin its responsibilities. However, thisis a constitutional convention, not arule of law, and relies on the UnitedKingdom Parliament exercisingself-restraint in its use of itsresponsibilities.
9.11 Legislation regarding localgovernment is already largelydevolved to Scotland. ScottishMinisters are elected to set thedirection of policy and the over-arching outcomes that the publicsector in Scotland is expected to
achieve. Local government hasresponsibility to develop serviceswhich deliver outcomes in ways thatreflect local priorities. The Scottishapproach to local government isbased on mutual respect andpartnership, based on key principles:
• central and local government are
equal partners at the centre of
governance in Scotland• local authorities are democraticallyconstituted bodies with autonomyto deliver in the best way that theysee fit for their local communities
• central and local government shouldwork together to develop policy andagree the financial settlementassociated with delivery of policy
priorities
128
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 150/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Constitutional recommendations of the
Commission on Scottish Devolution
9.12 One recommendation of theCommission is that the ScottishParliament could be permitted by
the United Kingdom Parliament tolegislate on a one-off basis inrelation to reserved matters. Thismechanism might improve theefficiency of the legislative processwhen Scottish legislation involvesreserved matters. At present,reserved issues have to be dealt withseparately by means of an order inthe United Kingdom Parliament.
There are potential advantages inbeing able to include such provisionsdirectly in Acts of the ScottishParliament.
9.13 However, the Commission does notdevelop this concept fully. A moreuseful proposal would be that theScottish Parliament decides when itshould acquire competence over anissue, recognising its position as theelected national assembly ofScotland. This would follow themodel of the 1931 Statute ofWestminster for the Dominions,
such as Canada and Australia.
Full devolution
9.14 Full devolution of constitutional
affairs would mean that the Scottish
Parliament was responsible for all ofits procedures and its owncompetence. The Parliament couldtherefore adjust its electoral system,or its membership, or its statutoryCommittee structure. Perhaps moreimportantly, it could decide toacquire competence over issuescurrently reserved to Westminster.
This could be either a unilateral
process, or the United KingdomParliament could agree to proposals,similar to the system under theGovernment of Wales Act 2006.With full devolution Scotland couldhave its own civil service, similar toNorthern Ireland.
129
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 151/198
9.15 Full devolution on this modelwould recognise the position of the
Scottish Parliament as the elected,democratic voice of a sovereignScottish people, enabled to
determine the best form ofgovernment for the nation. It mightbe that certain amendments to theresponsibilities of the Parliament, forexample on foreign affairs, requirenegotiation and agreement with theUnited Kingdom. A significant
package might need or benefit fromthe direct agreement of the peoplein a referendum.
9.16 Recognising the sovereignty of theScottish people with a devolvedParliament which can alter the
settlement itself would be compatiblewith Scotland remaining within theUnited Kingdom. Sovereignty wouldonly lead to independence if thepeople of Scotland wish.
Independence
9.17 An independent Scotland would
be responsible for its entireconstitution, from the Head of Stateto the rights of individual citizens,subject to international obligationssuch as European Unionmembership.
9.18 The current constitutionalarrangements, with the Queen as
Head of State of an independentScotland, a Scottish Parliament andGovernment modelled on the
existing institutions, and continuedmembership of the European Union,would provide a robust and testedconstitutional framework forScotland in the event of the transitionto independence. Some adjustmentswould be needed to the relationship
with existing United Kingdom bodieswhere new partnership arrangementswere agreed.
9.19 An independent Scotland couldconsider further progress, forexample removing the religiousdiscriminatory aspects of thesuccession to the throne, orformulating and agreeing a fullycodified and written constitution.These issues would be decided
within Scotland, either by the ScottishParliament, or, as at the moment formajor constitutional change, througha referendum.
A National Conversation – YOUR SCOTLAND, YOUR VOICE
130
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 152/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
ELECTIONS
Current position
9.20Responsibility for elections tothe House of Commons, the
European Parliament and theScottish Parliament is reserved;
responsibility for localgovernment elections isdevolved, although the franchisefor these elections is reserved.
9.21 There are now four differentvoting systems in use in Scotland.
First past the post for UnitedKingdom Parliamentary elections;
the additional member system(AMS) for elections to theScottish Parliament; singletransferrable vote (STV) forlocal government elections; anda closed party list system forelections to the EuropeanParliament.
131
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 153/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Election recommendations of the
Commission on Scottish Devolution
9.22 The Commission recommended thatthe responsibilities of the Secretaryof State for Scotland relating tothe administration of elections tothe Scottish Parliament should be
devolved, which would transferadministrative responsibility.
Legislation for Scottish electionswould continue to be theresponsibility of the United KingdomParliament and Government.
9.23 The Gould Report into the combinedlocal government and ScottishParliamentary elections of 2007
was clear that fragmentation ofresponsibility was a major factor inthe problems encountered.130 TheGould report concluded that theScottish Parliament should have full
responsibility for the ScottishParliamentary elections. TheCommission’s recommendationwould actually lead to furtherfragmentation of decision-makingrisking greater problems.
Full devolution
9.24 Full devolution of ScottishParliamentary elections would bringaccountability closer to the people
of Scotland. With full devolution ofresponsibility for elections, theScottish Parliament could considerthe most appropriate voting system– perhaps STV in line with Scottishlocal government elections – and thevoting age. The Scottish Parliamentcould also examine moreimaginative ways to increase voter
participation following its decisionto decouple local government andScottish Parliamentary elections.
Independence
9.25 The main electoral effect ofindependence would be that Scotlandno longer returned Members of
Parliament to Westminster. Scotlandwould no longer use the first pastthe post system for any of itselections, and would use onlyproportional voting systems.
9.26 Scotland would also be free to choose
its system of electing Members ofthe European Parliament, which iscurrently decide by the United
Kingdom. The method chosen woulddepend on the number of MEPsScotland secures in negotiation,which is likely to be more than thecurrent six (Denmark, of comparablesize to Scotland, has 13 MEPs).
132
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 154/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
CONCLUSION
9.27 It has long been a part of Scottishconstitutional tradition that thepeople of Scotland should be able todecide their own constitutionalarrangements. However, the ScottishParliament does not currently have
the responsibility for determiningthe best way of governing thenation, as aspects of the constitutionare reserved to the United Kingdom.
9.28 The sovereignty of the people ofScotland could be recognised legallyand constitutionally within theUnited Kingdom if the ScottishParliament had full responsibilityfor determining its own functions
and role, as well as its structure andelections, consulting either or boththe Scottish people (by way ofreferendum) and the UnitedKingdom Parliament. There areprecedents for such a model.However, independence wouldprovide the Scottish people andtheir Parliament with the fullestresponsibility for their own
government.
133
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 155/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
134
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 156/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
INTRODUCTION
10.1 As a nation, Scotland can be proudof its achievements over the last10 years. The Scottish Parliamenthas introduced innovative and
successful reforms, making a realdifference to the lives of the peopleof Scotland. Two-thirds of thoseliving in Scotland now want theScottish Parliament to have more
responsibilities and 70% want it tohave the most influence over theway Scotland is run.131
10.2 This paper provides a vision of thefurther opportunities for Scotland ifthe Scottish Parliament’sresponsibilities were extended in
order to allow for independence. Thecurrent economic situation reinforces
the arguments for ensuring thatScotland can determine its owneconomic policies. The internationalsituation raises important andrelevant issues of peace and war. Thecrisis in British democracy shows thepotential for a better system ofgovernment for Scotland, which
might be an example for the rest ofthe United Kingdom.
10.3 The debate about the way forwardfor Scotland encompasses a wide
range of views and that range ofviews should be heard: and not justthe views of the political and civicestablishment – everyone inScotland should be given the
opportunity to have their say.
INVOLVING THE PEOPLE
10.4 Ensuring the public can participatein the democratic process is acentral tenet of modern Scottishsociety. The Claim of Right of 1989reaffirmed an ancient Scottishtradition which asserts that it is thepeople of Scotland that aresovereign.
10.5 During and after the restoration ofthe Scottish Parliament, the nationhas sought to be defined by a
more inclusive form of democracythan that which prevails in theUnited Kingdom Parliament.Indeed the founding principles ofthe Scottish Parliament includeaccess and participation, principles
that the Parliament has workedassiduously to embed into its dayto day work. The ScottishParliament is now one of the most
open and accessible Parliaments inthe world.
135
CHAPTER 10
CHOOSING SCOTLAND’S FUTURE
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 157/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
10.6 The Scottish Government issimilarly committed to encouragingthe participation of the people inshaping policy. This is evident thanin the way in which the ScottishGovernment has approached theissue of Scotland’s constitutionalfuture.
10.7 The National Conversation hasbeen an exercise in participativedemocracy. The whole process hasallowed the people of Scotland toexpress their views on the futuredirection of the nation, from publicevents held in all parts of Scotland,to publication of policy papers andan online portal where anyone
could leave comments and join inthe debate.
10.8 The next step is to ensure that thewhole of Scotland can give its viewon the extension of theresponsibilities of the Scottish
Parliament. The ScottishGovernment proposes that aReferendum should be held inScotland in 2010 to allow that viewto be heard.
A NATIONAL REFERENDUM
As the speakers said,it is the decision of the Scottish people asto what road theywant to take. It should not be
politicians who makethis decision!(Haddington National Conversation event, 28 September 2009)
10.9 The Scottish Government believes
that the future prosperity anddevelopment of Scotland is bestserved by becoming an independentcountry, a view shared in theScottish Parliament by the ScottishGreen Party. The ScottishGovernment favours a referendumwhich presents a clear choicebetween achieving that aspiration
and the current devolutionsettlement.
136
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 158/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
The Scottish Government’s
preferred option
10.10 Under independence Scotlandwould assume the rights andresponsibilities of a normalsovereign state. This would includeall decisions on economic and fiscal
affairs, currency, the constitution,foreign affairs, security and defence.Scotland would be recognised as astate by the international communityand be part of the European Unionas a full member state.
10.11 The opportunities and challengesof independence for specific policyareas have been described in thispaper and have been the subject ofdebate and discussion in Scotland
for many years. Those who favourthis vision of Scotland will be ableto indicate their support forScottish Ministers seeking toextend the responsibilities of the
Parliament to allow forindependence to be achieved.
Current devolution settlement
10.12 It is accepted that some votersdo not wish Scottish Ministers totake any steps to seek to extendthe responsibilities of the ScottishParliament.
10.13 Therefore there will be an
opportunity for those who do notsupport any extension of currentresponsibilities to express thatview in the referendum.
A multi-option referendum
10.14 However, despite the ScottishGovernment’s preference for asingle choice, it acknowledges thatthere is support within Scotland fora range of positions seeking avariety of increased responsibilities
for the Scottish Parliament. Duringthe National Conversation suchsupport has been heard at townhall meetings, and the NationalConversation policy papers haveincluded information on at leasttwo such options.
10.15 The Scottish Government alsoaccepts that a multi-optionreferendum might be more likelyto command the support of other
parties in the Scottish Parliament, ifthey are consistent with theirprevious positions on the matter,and it would enjoy a measure ofsupport within the country. The
Scottish Government can also seesome democratic advantage inposing more than one question.
10.16 However there is a problem in
deciding what the other optionshould be. It has been suggestedsince the Commission on Scottish
Devolution reported in June 2009that its recommendations shouldbe placed before the Scottishpeople. Those who sponsored theCommission have refused to allowthat to happen. In addition, theproposals not only fall short of beinga coherent package, but they alsofall short of the increase inresponsibilities that would normally
be seen as requiring referendum
137
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 159/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
consultation. Furthermore there issome doubt as to whether theparties who previously supportedthe Commission process are stillunanimously in favour of thefiscal proposals.
10.17 There is a further problem in
suggesting that the Commissionrecommendations form anoption in a referendum. As boththe Scottish and United KingdomGovernments support many of therecommendations, and as theScottish Government has publishedan approach which wouldimplement legislative changeswithin a matter of months,
providing the United KingdomGovernment agrees, many of the
proposals could be implementedwell before a referendum could beheld. The Scottish Government isalso working to attempt tofacilitate, with the United KingdomGovernment and the ScottishParliament, early progress on non-legislative Commission proposals
regarding Scottish ParliamentaryProcedures and inter-governmental
relations.
10.18 However, there is an alternativeset of proposals which wouldseek to extend the responsibilities
of the Scottish Parliament, short ofindependence. Contributions to theNational Conversation haveindicated support for a range ofproposals which reduce thereservations of policy areas underthe Scotland Act, but do not
eliminate them all. For example, thedevolution of broadcasting,taxation and benefits could formelements what has been called“Devolution Max”.
10.19 Unfortunately the variousproponents of this approach have
yet to bring it forward in a form inwhich it could provide the basis fora question in a multi-optionreferendum, although the inclusionof the concept in the NationalConversation policy papers, and inthis paper, will have helped thatprocess.
10.20The Referendum Bill will beintroduced into the ScottishParliament in early 2010. There
will therefore be an opportunityduring the Bill process for one ormore of the opposition parties inthe Scottish Parliament to bringforward such a proposal. If it were
brought forward, the ScottishGovernment would be preparedto consider it as a serious optionfor inclusion in a multi-optionreferendum. Accordingly the
Referendum Bill will be constructedso that the Scottish Parliament can,if it so chooses, offer the Scottishpeople the opportunity to vote fora proposal about further devolution
of other responsibilities to theScottish Parliament as part of amulti-option referendum, eventhough the Scottish Governmentdoes not favour this option andwill not campaign for it.
138
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 160/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
10.21 A referendum is essential becausethe Scottish Government believes
that this debate cannot be
restricted to the Scottish
Parliament. The National
Conversation has allowed the
people to articulate their views, and
it is now time for them to be invited
to express those views in a formal
way.
10.22 The Bill as introduced will provide
the detailed framework for holding
the referendum and will contain the
precise form of the ballot paper for
the choice described in paragraphs
10.10 – 10.13 above. The referendum
will be held on a similar model to
1997, but with additional provisions
to govern the scrutiny of the
process through an independent
commission, the levels of financethat can be spent during the
campaign, and the mechanism forthe count. The arrangements will
conform to or exceed the best
international practice.
THE NEXT STEP
10.23 The Scottish Government intends
to bring forward the Referendum
Bill early in 2010. The Scottish
Parliament will be invited to pass
the legislation.
139
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 161/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
ANNEX A
NATIONAL CONVERSATION EVENTS
DATE EVENT
14 August 2007 Launch of National Conversation and publication of ChoosingScotland’s Future by First Minister Alex Salmond
22 October 2007 Scottish Government summit: Scotland’s future without nuclearweapons
30 November 2007 First Minister delivered St Andrew’s Day lecture on nationaldays and the National Conversation
11 December 2007 Deputy First Minister Nicola Sturgeon gave evidence to theEurope and External Relations Committee of the ScottishParliament on the National Conversation
11 December 2007 First Minister delivered the Playfair lecture on Scotland, Europeand the National Conversation
4 February 2008 First Minister Alex Salmond opened Scotland in the World atthe University of Aberdeen
13 February 2008 First Minister Alex Salmond at Trinity College Dublin
26 March 2008 Phase 2 of the National Conversation launched with over 100representatives of Scotland’s civic institutions at the Universityof Edinburgh
1 April 2008 First Minister Alex Salmond at the University of Virginia in USA
23 April 2008 First Minister Alex Salmond continued the National
Conversation in Brussels
3 May 2008 Minister for Parliamentary Business Bruce Crawford addressedChurches without Walls conference
19 June 2008 Action of Churches in Scotland Together
20 June 2008 Minister for Parliamentary Business Bruce Crawford at Scottish
Council of Voluntary Organisations
29 July 2008 Scottish Cabinet in Dumfries
5 August 2008 Scottish Cabinet in Inverness
140
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 163/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
DATE EVENT
29 April 2009 Cabinet Secretary for Rural Affairs and the EnvironmentRichard Lochhead and Minister for Culture, External Affairs andthe Constitution Michael Russell in Jedburgh
13 May 2009 Cabinet Secretary for Education and Lifelong Learning FionaHyslop and Minister for Parliamentary Business Bruce Crawfordin Stirling
18 May 2009 Council of Ethnic Minority Voluntary Organisations in Dundee,
hosted by Cabinet Secretary for Finance and SustainableGrowth John Swinney and Minister for Parliamentary Business
Bruce Crawford
1 June 2009 Cabinet Secretary for Justice Kenny MacAskill and Minister forChildren and Early Years Adam Ingram in Kilmarnock
16 June 2009 Minister for Culture, External Affairs and the ConstitutionMichael Russell and Minister for Schools and Skills Keith Brownin Kirkcaldy
16 June 2009 First Minister Alex Salmond and Minister for Culture, External
Affairs and the Constitution Michael Russell in Livingston22 June 2009 Council of Ethnic Minority Voluntary Organisations in
Aberdeen, hosted by Minister for Housing and CommunitiesAlex Neill and Minister for Environment Roseanna Cunningham
23 June 2009 Council of Ethnic Minority Voluntary Organisations in Inverness,hosted by Minister for Housing and Communities Alex Neill andMinister for Environment Roseanna Cunningham
29-30 June 2009 Scottish Cabinet meeting in Dundee, followed by NationalConversation event
27-28 July 2009 Scottish Cabinet meeting in Melrose, followed by NationalConversation event
3-4 August 2009 Scottish Cabinet meeting in Stornoway, followed by NationalConversation event
17-18 August 2009 Scottish Cabinet meeting in Aberdeen, followed by NationalConversation event
31 August – Scottish Cabinet meeting in Glasgow, followed by National1 September 2009 Conversation Event
8 September 2009 Minister for Culture, External Affairs and the Constitution MichaelRussell launched Europe and Foreign Affairs paper in Brussels
142
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 164/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
DATE EVENT
14 September 2009 Cabinet Secretary for Education and Lifelong Learning FionaHyslop and Minister for Community Safety Fergus Ewing in Paisley
28 September 2009 Minister for Culture, External Affairs and the ConstitutionMichael Russell and Minister for Transport, Infrastructure andClimate Change Stewart Stevenson in Haddington
28 September 2009 Minister for Culture, External Affairs and the ConstitutionMichael Russell hosted Expressing and Exercising Scottish
Sovereignty seminar at the University of Edinburgh
30 September 2009 Council of Ethnic Minority Voluntary Organisations in Edinburgh,hosted by First Minister Alex Salmond
5 October 2009 Minister for Community Safety Fergus Ewing and Minister forTransport, Infrastructure and Climate Change StewartStevenson in Oban
19 October 2009 Cabinet Secretary for Health and Wellbeing Nicola Sturgeonand Minister for Schools and Skills Keith Brown in Hamilton
26 October 2009 Cabinet Secretary for Justice Kenneth MacAskill and Ministerfor Housing and Communities Alex Neill in Dalkeith
2 November 2009 Video conference with Minister for Culture, External Affairs andthe Constitution Michael Russell and Minister for Schools and
Skills via University of the Highlands and Islands network,linking Orkney, Shetland, Fort William, Thurso and Dingwall
9 November 2009 Cabinet Secretary for Finance and Sustainable Growth John Swinneyand Minister for Children and Early Years Adam Ingram in Ayr
9 November 2009 Minister for Culture, External Affairs and the ConstitutionMichael Russell delivered lecture on the debate aboutScotland’s constitutional future at Constitution Unit, UniversityCollege London
16 November 2009 Cabinet Secretary for Justice Kenneth MacAskill and Ministerfor Environment Roseanna Cunningham in Port Glasgow
19 November 2009 Minister for Children and Early Years Adam Ingram and Ministerfor Housing and Communities Alex Neill in Bishopbriggs
24 November 2009 Scottish Council on Deafness, Glasgow, with Deputy First
Minister Nicola Sturgeon
In addition, the Minister for Enterprise, Energy and Tourism held 130 NationalConversation economy-based events with a wide variety of groups throughoutScotland. 143
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 165/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
ANNEX B
ORGANISATIONS CONTRIBUTING TO
THE NATIONAL CONVERSATION
Many individuals and organisations have attended or been represented atNational Conversation events, including the following:
Aberdeen Airport
Aberdeen and Grampian Chamber of
CommerceAberdeen City Council
Aberdeen College
Aberdeen Council of Voluntary
Organisations
Aberdeen Greenspace
Aberdeen International Centre
Aberdeen Performing Arts
Aberdeen Tenants Association
Aberdeenshire CouncilAddaction
Adult Protection Committee
Afasic Scotland
All Saints Church Glasgow
Anderston Sanctuary Tenants &
Residents Association
Angus Council
Angus Housing Association
Apex ScotlandAppin Community Council
Arac
Ardler Village Trust
Ardlochrig Tenants and ResidentsAssociation
Ardrossan Community Council
Argyll & Bute Council
Argyll Technologies
Armadale Community Council
Armadale Community Education
AssociationArmour and Partners
Armstrong Landforce
Arran Adventure Company
Arran Ferry Committee
Arran Haulage
Arran High School
Arran Windpower Ltd
Ashley and Broomhill CC
Aspire 2getherAssociation of Scottish Community
Councils
Athelstaneford Parish Church
Auchtermuchty and StrathmigloCommunity Council
Autism Argyll
Autism Rights
Avich & Kilchrenan Community Council
Ayr Careers CentreAyrshire & Arran Alcohol and DrugAction Team
Ayrshire Housing
Baker Tilly Tax and Accounting Limited
Ballantrae Community Council
Banff and Buchan College
Banner Residents Association
BDA Council
144
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 166/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
BEAR Scotland
BEEM & East Lothian Resident & TenantsPanel
Befrienders
Belhelvie Community Council
Berwickshire Housing Association
Better Government for Older People
Black and Ethnic Minorities Infrastructurein Scotland (BEMIS)
Blackridge Community Council
Blairgowrie & East Perthshire TouristAssociation
Bon Accord Free Church of Scotland
Border Curling Development Group
Borders Common Riding Association
Borders Family History Society
Borders Independent Advocacy Service
Borders Sport and Leisure
Bower, Halkirk-Westerdale and WattenParishes
Boys Brigade
Braidhouse
British Deaf Association
Broomhill Community Council
Broxburn Academy Parents Council
Broxburn Family Centre
Brunton Court Tenants Group
Buccleuch Group
Burns Festival Trust
Cairn Valley & District CommunityCouncil
Calderwood Community Council
CalMac Ferries Ltd
Cameron Riddell Associates
Capability Scotland
Cardonald College
Cassillis Estate
Castle Tenants & Residents Association
Cathedral of St Mary's of Assumption
Catherine's Country Kitchen
Central Buchan
Centre for Stewardship
Certex Accounting
Chair Caderwood Community Council
Changing PlacesCherry Road Centre
Christ Church
Church of Scotland
Citizens Advice and Rights Fife
Citizens Advice Bureau
CL Research
Clackmannanshire Council
Clyde Gateway URC
Clyde Valley Community CouncilClydebank College
Coal Industry Social WelfareOrganisation
COAST
Comhairle nan Eilean Siar
Community Integrated Care
Community Learning and Development
Community Links
Convenor Orkney Islands Council
Cornbank Primary School
Cornerstone
Cowal Community Hospital
Craigengillan
Cranshaws, Ellemford & Longformacus
Cranston Nurseries Ltd
Crescent Moon Music Ltd
Crofters Commission
Currie & Brown United Kingdom Limited
145
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 168/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Glasgow Metropolitan College
Glasgow Works
Glenburn Surgery
Gordon & Westruther CommunityCouncil
Govan C Residents Association
Grampian Police
Grandparents Apart Self Help GroupKilmarnock
Guthrie Group Ltd
Hairmyres Hospital
Halliday Fraser
Hamilton Old Parish Church
Hamilton Park Racecourse
Hamilton Trinity Parish Church
Harlow Hadden Consulting Engineers
Harris Tweed Authority
Headtown
Hebrides Alpha Project
Highland Alternative Energy
Highland Council
Highland Theological College
Highlands and Islands Enterprise
Hillhouse
Hitrans
HMP Peterhead
HMP Kilmarnock
Homestart Glasgow
Horizon Housing Association
Housing Initiative for Arran Residents
Houston Community Council
Howood Community Council
Hunterhill Community Council
Iain More Associates
Inclusion Scotland
Institute of Directors
Institute of Local Television
Inverurie and District
Islands Book Trust
J Rutherford (Earlston) Ltd
Jedburgh Alliance
Jedburgh Community Trust
Jewel & Esk College
John Wheatley College
Justice and Peace ScotlandKeep Scotland Beautiful
Kelso Library
Kennoway Community Council
Kibble Education Centre
Kilmarnock College
Kinetic Group
King's Park Community Council
Kinross-shire Residents Association
Kirkcaldy High SchoolKirkcaldy West Community Council
Labour Party
Lanarkshire Chamber of Commerce
Langside College
Largo Area Community Council
Lauderdale Development Trust
Lead Scotland North
Lewis Sports Centre
Lilliesleaf Ashkirk & Midlem CommunityCouncil
Lilliesleaf Poultry
Living Streets Scotland
Loch Lomond and the Trossachs NationalPark
Lochaber GoPark
Longside & District Community Council
Lothian and Borders Fire & Rescue
Lothian and Borders Police
147
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 169/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Lothian NHS Board
Maclay Murray & Spens LLP
Mains of Tarryblake
Mann Judd Gordon
Manor, Stobo & Lyne Community Council
Maritime and Coastguard Agency
Maxwellton Court Tenant Association
Medical Research Council
Meldrum, Bourtie Daviot CommunityCouncil
Mellerstain Trust
Melville Housing Association
Methihill Primary School Parent Council
Methodist Church in Scotland
MG Alba
Midlothian & East Lothian Chamber ofCommerce
Midlothian Council
Midlothian Tenants Org
Midlothian Youth Platform
Molendinar Community Council
Momentum Scotland
Moray Council
Moray Firth Coastal partnership
Mossblown & St Quivox CommunityCouncil
Mountain Rescue Association
Museum nan Eilean
Napier University
National Trust for Scotland
Network of Community Councils
Newcastleton, Development, Tourism &Leisure Group
NHS Borders
NHS Fife
NHS Forth valley
NHS Grampian
NHS Greater Glasgow
NHS Highland Board
NHS Lanarkshire
NHS Orkney
NHS Shetland
NHS Tayside
NHS West Lothian
North Ayrshire CouncilNorth End First Responder
North Glasgow College
North Lanarkshire Council
Northern Lights Regional Network
Nungate Tenants Residents Association
Oban Community Council
Oban High School
Oil and Gas Academy
Old Aberdeen Community CouncilOLMC Parish Banff
Orkney College
Orkney Council
Outer Hebrides Fisheries Trust
Paisley South Housing Association
Paisley West Community Council
Parent Council West Calder High School
Partick United Residents Group
Partners in AdvocacyPearce Institute
Peebles Community Council
Peeblesshire Federation
Penicuik Town Hall
Penumbra Youth Project
Perth & Argyll Conservancy
Perth and Kinross Council
Perthshire Chamber of Commerce
148
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 170/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Peterhead North and Rattray
Peterhead South and Cruden
Planning Together
Portlethen & District Community Council
Positive Solutions
Positive Steps
Pöyry Energy (Aberdeen) Ltd
Prestwick and District Branch
Procurator Fiscal ServiceProspective Parliamentary Candidate
Queen Margaret University
Racial Equality Council
Rathbone United Kingdom
RBS
Re-Gen North
Renfrewshire Council
Renfrewshire CVS
Richmond Fellowship ScotlandRiddrie Tenant and Resident Association
Rosemount Flexi Centre
Roses Charitable Trust
Rothera Group
Royal Burgh of Selkirk and DistrictCommunity Council
Royal National Mod
Royal Scottish Geographical Society
Salvation Army
SAMH
Sandback Community Council
Sandwick Community Council
School Leaders Scotland
Scotland Transerv
Scottish Agricultural College
Scottish Agricultural College FarmBusiness Services
Scottish Association of Local SportsCouncils
Scottish Auto Cycle Union
Scottish Beef Cattle Association
Scottish Borders Chamber of Commerce
Scottish Borders Council
Scottish Borders Elder Voice
Scottish Borders EnvironmentPartnership
Scottish Borders Social EnterpriseChamber
Scottish Borders Tenants Organisation
Scottish Business in the Community
Scottish Council for Development andIndustry
Scottish Council of Jewish Communities
Scottish Council on Deafness
Scottish Crofting Foundation
Scottish Enterprise
Scottish Episcopal Church
Scottish Flood Forum
Scottish Genealogy Research
Scottish Health Council Borders
Scottish National Heritage
Scottish Natural Heritage
Scottish Pre-School Playgroup
Development Worker
Scottish Prison ServiceScottish Qualifications Authority
Scottish Tenant Farmers Association
Scottish Traditional Boat Festival
Scottish Water
Scottish Youth Parliament
Scottish Youth Theatre
Seabird Centre
Selkirk Regeneration Group
149
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 171/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
SEPA
SEStran
Shell
Shetland Islands Council
Shieldhall Tenants and ResidentsAssociation
Skills Development Scotland
Smithy Croft High School
Smithy House Associates
Soroba Young Family Group
South Ayrshire Council
South Lanarkshire Council
Springfield Community Council
SPT
SRPBA
SSPCA
St Benedicts Church
St John's Church
St John's Episcopal Church
St Mary's Church
St Patricks Church
St Philamena's Primary
Stirling Council
Stirling Smith Art Gallery and Museum
Stirling University
Stornoway Amenity Trust
Strathclyde Fire & Rescue
Strathclyde Forensics
Strathclyde Hospital
Strathclyde Police
Strichen and Tyre Church
Stirling Council
STUC
TACTRAN
Tarbert & Skipness Community Council
Tay Screen
Tenants & Residents Association ofKemnay
Tenants and Residents Association
The Bridge
The Cyrenians
Theatre Hebrides
Third Sector Hebrides
Thornfield House
Thurso Community Council
Tilhill Forestry Ltd
Todd Associates
Trade Union Council
Transition Arran
Traquair House
Trinity Church
Troon St Meddan's Parish Church
Trustee Reform Scotland
Tullibody, Cambus & GlenochilCommunity Council
Turriff and District Heritage Society
Turriff Community Council
Tweeddale Sports Council
Tyron Parish Hall Committee
University of the Highlands and IslandsLews Castle College
Unison
UNISON Lanarkshire Health Branch
Unite
University of Abertay
University of Dundee
University of Dundee
University of Strathclyde
University of the West of Scotland
University of Abertay
Uphall Community council
Video Goodwill
150
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 172/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
Visit Scotland
Voluntary Sector Strategy Group
Volunteer Centre West Lothian
Walking Support
Wallyford Community Council
West Church
West End Community Council
West Lochfyne Community Council
West Lothian CollegeWest Lothian Council
West Lothian Drug & Alcohol Service
West Lothian Drug Actions Team
West Lothian FSB
West Lothian LEADER Coordinator
West of Scotland Housing Association
Westburn Village Neighbourhood Council
Western Isles Health Board
Western Isles Library ServiceWesthill & Elrick Community Council
Westhill and District
Westhill Community Council
Whitehall Theatre
Willow Wood Community
Wireless Infrastructure Group
Word Fringe
Young Scot
The following organisations also madeformal written submissions to theNational Conversation:
British Energy
Ecas
Educational Institute of Scotland
Glasgow Caledonian University
Institute of Chartered Accountants of
ScotlandInstitute of Local Television
National Trust for Scotland
Reform Scotland
Scottish Association for Public Transport
Scottish Competition Law Forum
Scottish Consumer Council
Scottish Federation of HousingAssociations
Scottish Refugee CouncilStatistics Commission
University of Edinburgh
West Lothian Council
151
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 173/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
152
1 “We, gathered as the Scottish Constitutional
Convention, do hereby acknowledge the sovereign
right of the Scottish people to determine the form
of Government best suited to their needs, and do
hereby declare and pledge that in all our actions
and deliberations their interests shall be
paramount.” Owen Dudley Edwards, Claim of Right
for Scotland (Polygon, 1989).
2 The 1997 referendum offered three options to the
Scottish people: the status quo, a Parliament
without tax varying powers, and a Parliament with
tax varying powers. Scottish Parliament, “The Path
to Devolution”, http://www.scottish.parliament.uk/
vli/history/pathtodevolution/index.htm.
3 See Scottish Government, Choosing Scotland’s
Future: A National Conversation – Independence
and Responsibility in the Modern World (August
2007), paragraphs 1.5 – 1.13, chapter 2 and Annex A
http://www.scotland.gov.uk/Publications/2007/
08/13103747/0.
4 Department for Constitutional Affairs, Devolution
Guidance Note 10: Post-Devolution Primary
Legislation affecting Scotland (last updated
November 2005), http://www.dca.gov.uk/
constitution/devolution/guidance/dgn10.pdf.
5 See Scottish Government, “Move to close damages
loophole” 1 April 2009, http://www.scotland.
gov.uk/News/Releases/2009/04/01140512.
6 Scottish Government, Choosing Scotland’s Future
(August 2007), http://www.scotland.gov.uk/
Publications/2007/08/13103747/0.
7 http://www.anationalconversation.com.
8 Full details of the National Conversation are onthe National Conversation website:
www.anationalconversation.com.
9 http://www.scotland.gov.United Kingdom/
Topics/a-national-conversation/Tell-us/Blog.
10 HM Government, Building Britain’s Future,
http://www.hmg.gov.United Kingdom/
buildingbritainsfuture.aspx.
11 See POWER2010, http://www.power2010.org.uk/ .
12 Constitutional Reform and Government Bill House
of Commons,
http://www.publications.parliament.uk/pa/
cm200809/cmls://s/142/09142.i-iv.html.
13 http://allwalesconvention.org/?skip=1&lang=en.
14 Independent Commission for Funding and Finance
for Wales, Funding devolved government in Wales:
Barnett & beyond (July 2009), http://wales.gov.uk/
icffw/home/report/firstreport/?lang=en.
15 Scottish Government, The Scottish Government’s
Response to the Recommendations of the
Commission on Scottish Devolution (November
2009), http://www.scotland.gov.uk/
Publications/2009/11/09152544/0.
16 Further details on many subjects can be found in
the National Conversation policy papers listed at
paragraph 1.18, and on the National Conversation
website at http://www.scotland.gov.uk/Topics/
a-national-conversation.
17 Scottish Government, Choosing Scotland’s Future
(August 2007), 4-5, http://www.scotland.gov.uk/
Publications/2007/08/13103747/0.
18 See Commission on Scottish Devolution, The Future
of Scottish Devolution within the Union: A First
Report (December 2008), 60-64,
http://www.commissiononscottishdevolution.org.
uk/uploads/2008-12-01-vol-1-final--bm.pdf.
19 See Scottish Government, The Government
Economic Strategy (November 2007),
http://www.scotland.gov.uk/Publications/
2007/11/12115041/0.
20 See Scottish Government, The Government
Economic Strategy (November 2007),
http://www.scotland.gov.uk/Publications/ 2007/11/12115041/0.
21 See Scottish Government, The Government
Economic Strategy (November 2007),
http://www.scotland.gov.uk/Publications/
2007/11/12115041/0.
22 Approximately 70% of total identifiable public
sector expenditure for Scotland in 2007/08 can be
loosely classified as ‘devolved expenditure’. See
Scottish Government, Government Expenditure
and Revenue Scotland 2007/08 (GERS 2007/08)(June 2009), Table 6.8, http://www.scotland.
gov.uk/Publications/2009/06/18101733/0.
ENDNOTES
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 174/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
153
23 It is estimated that a one pence change in the SVR
would be worth approximately plus or minus
£350 million in 2009/10 and £360 million in 2010/11.
HM Treasury Budget 2009, http:www.hm-treasury.
gov.uk/bud_bud_09_index.htm.
24 Scottish Government, Borrowing Powers:
Information to be shared with the Calman
Commission (March 2009), http://www.scotland.
gov.uk/Topics/a_national_conversation.
25 Bank of England, Monetary Policy Framework ,
http://www.bankofengland.co.uk/
monetarypolicy/framework.htm.
26 For example, the Scottish Government believes
that the £12 billion cost of reducing VAT to 15%announced by the Chancellor at the 2008 pre-
budget report, would have been better spent on
increasing net investment. Scottish Government
analysis has shown that the net effect in terms of
jobs would have been greater.
27 Scottish Government, Fiscal Autonomy in
Scotland: The case for change and options for
reform (February 2009),
http://www.scotland.gov.uk/Publications/
2009/02/23092643/0.
28 GERS 2007/08.
29 For example, the Norwegian Government
announced in January 2009 that it would use a
proportion of its oil wealth to fund a £2 billion
fiscal stimulus package. In contrast to other
countries, Norway has been able to implement
these measures without relying on large increases
in government borrowing. The Norwegian
Government projects that it will run a budget
surplus of 7.4 % of mainland GDP in 2009, higher
than any other country in Europe. See Scottish
Government, An Oil Fund for Scotland: Takingforward our National Conversation (July 2009), 26,
http://www.scotland.gov.uk/Publications/2009/
07/28112701/0.
30 Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom in
the 21st Century, Final Report (June 2009), 86-110,
http://www.commisionscottishdevolution.org.uk/ .
31 See Jim Cuthbert and Margaret Cuthbert, Open
Letter to the Calman Commission: Technical
Failings in the Calman Proposals on Income Tax,
16 July 2009, http://www.cuthbert1.pwp.
blueyonder.co.uk/ ; The Scotsman, “Long-term
planning is threatened by report”, 17 June 2009,
http://thescotsman.scotsman.com/opinion/
Longterm-planning-is-threatened-by.5371689.jp;
The Scotsman, “Calman panel member warns of
'disastrous' tax changes”, 21 June 2009,
http://news.scotsman.com/latestnews/Calman-
panel-member-warns-of.5386447.jp.
32 For a discussion of full devolution see Scottish
Government, Fiscal Autonomy in Scotland: The
case for change and options for reform (February
2009), http://www.scotland.gov.uk/ Publications/2009/02/23092643/0.
33 See, for example, Andrew Hughes-Hallett et al ,
Options for Scotland’s Future – the Economic
Dimension (David Hume Institute occasional paper
no. 80, November 2008), http://www.davidhume
institute.com/DHI%20Website/publications/hop/
HOP%2080.pdf, and Reform Scotland, Powers for
Growth (March 2008), http://www.reformscotland.
com/index.php/publication/view_details/17/ .
34 Reform Scotland,Fiscal Powers
(2nd edition)
(October 2009), http://www.reformscotland.com/
include/publications/fiscal_powers_2nd_edition.pdf.
35 See Scottish Government, Fiscal Autonomy: The
case for change and options for reform (February
2009), 25-31, http://www.scotland.gov.uk/
Publications/2009/02/23092643/0.
36 Scottish Government, Borrowing Powers:
Information to be shared with the Calman
Commission (March 2009), http://www.scotland.
gov.uk/Topics/a_national_conversation.
37 Paul Krugman, “Growth on the periphery: Second
winds for industrial regions?”, The Allander Series,
University of Strathclyde Business School (2003),
http://www.strath.ac.uk/media/departments/
economics/fairse/media_140850_en.pdf, and
C. Paul Hallwood and Ronald MacDonald,
The Political Economy of Financing Scottish
Government: Considering a New Constitutional
Settlement for Scotland (Studies in Fiscal
Federalism and State-Local Finance) (Edward
Elgar Publishing, 2009).
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 175/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
38 Council of Economic Advisers, minutes of Scottish
meeting, 2009, http://www.scotland.gov.uk/
Topics/Economy/Council-Economic-Advisers/
Meetings/2009-meetings/2009-meeting.
39 HM Treasury, Financial stability,
http://www.hm-treasury.gov.uk/
fin_finstability_index.htm.
40 Scottish Government, The Hypothetical Scottish
Shares of Revenues and Expenditures from the
United Kingdom Continental Shelf 2000-2013
(June 2008), http://www.scotland.gov.uk/
Publications/2008/06/UKContinentalShelfRevenue ,
and Alexander G. Kemp and Linda Stephen,
Expenditures and Revenues from the UKCS –
Estimating the hypothetical Scottish Shares 1970- 2005 (North Sea Study Occasional Paper no. 70,
Department of Economics, University of Aberdeen,
1999); The Economist , “History repeats itself”
20 June 2008.
41 When a geographical share of North Sea revenues
is included. See GERS 2007/08,
42 OECD Economic Outlook, Number 84, November
2008.
43 Scottish Government,Fiscal Autonomy in Scotland,(February 2009) http://www.scotland.gov.uk/
Publications/2009/02/23092643/0, 18; House of
Commons Library, The Barnett Formula, research
paper 07/91 (December 2007); Independent
Commission on Funding & Finance for Wales,
Funding devolved government in Wales: Barnett &
beyond (July 2009), http://wales.gov.uk/icffw/
home/report/firstreport/?lang=en; Hansard HC
vol. 497 col. 292283 (Secretary of State for
Scotland on Barnett formula, 14 October 2009),
http://www.publications.parliament.uk/pa/
cm200809/cmhansrd/cm091014/debtext/
91014-0002.htm#09101435000038; House ofLords, Select Committee on the Barnett Formula,
The Barnett Formula: Report with Evidence (July
2009), HL Paper 139, http://www.publications.
parliament.uk/pa/ld/ldbarnett.htm.
44 Ministry of Justice, Securing the Future: Proposals
for the efficient and sustainable use of custody in
England and Wales (December 2007),
http://www.justice.gov.uk/publications/securing-
the-future.htm.
45 The Economist, “Where economics went wrong”
16 July 2009.
46 Mervyn King, speech to the CBI Dinner, Nottingham,
20 January 2009, http://www.bankofengland.co.
uk/publications/speeches/2009/speech372.pdf.
47 Scottish Government, Quarterly Gross Domestic
Product for Scotland and the UK (updated
October 2009), http://www.scotland.gov.uk/
Topics/Statistics/Browse/Economy/GDP, and HM
Treasury, Public Finance Databank (updated
October 2009), http://www.hm-treasury.gov.uk/
psf_statistics.htm.
48 HM Treasury, Reforming financial markets (July
2009), http://www.hm-treasury.gov.UnitedKingdom/reforming_financial_markets.htm.
49 Bloomberg, “Fortis gets ¤11.2 billion rescue from
governments” 28 September 2009,
http://www.bloomberg.com/apps/news?pid=206
01087&sid=ahlKDjeO0Lik&refer=home.
50 See Scottish Government, An Oil Fund for
Scotland: Taking forward our National
Conversation (July 2009),
http://www.scotland.gov.uk/Publications/
2009/07/28112701/0.
51 Scottish Government, An Oil Fund for Scotland ,
(July 2009) 27,
http://www.scotland.gov.uk/Publications/2009/
07/28112701/0.
52 Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century , Final Report (June 2009),
94 – 96. http://www.commissionscottishdevolution.
org.uk/ .
53 Commission on Scottish Devolution, Evidence fromthe Independent Expert Group to the Commission
on Scottish Devolution: Natural Resource Taxation
and Scottish Devolution (June 2009), 12 – 13.
http://www.commissionscottishdevolution.
org.uk/ .
54 See Scottish Government, The Government
Economic Strategy (November 2007),
http://www.scotland.gov.uk/Publications/
2007/11/12115041/0.
154
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 176/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
55 See Scottish Consumer Council written response
to the National Conversation (February 2008),
http://www.scotland.gov.uk/Topics/a-national-
conversation/NC-contributions-inds-org.
56 Scottish Government, The Government Economic
Strategy (November 2007), section B.1 Growth
http://www.scotland.gov.uk/Publications/2007/
11/12115041/0.
57 Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century , Final Report (June 2009), 6.
http://www.commissionscottishdevolution.org.uk/ .
58 Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdomin the 21st Century , Final Report (June 2009),
173-174. http://www.commissionscottish
devolution.org.uk/ .
59 Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century , Final Report (June 2009), 209.
http://www.commissionscottishdevolution.org.uk/ .
60 See the Educational Institute of Scotland response
to the National Conversation (May 2008),
http://www.scotland.gov.uk/Topics/a-national-
conversation/NC-contributions-inds-org.
61 Brian Ashcroft and David Bell, The Key to
Economic Success in Scotland (Policy Institute,
2007), http://policyinstitute.info/research-
publications/economy/the-key-to-economic-
success-in-scotland.
62 See Scottish Consumer Council written response to
the National Conversation (February 2008) and
Scottish Competition Law Forum written response
to the National Conversation (September 2008),
http://www.scotland.gov.uk/Topics/a-national-conversation/NC-contributions-.hds-org.
63 Scottish Government, Scotland’s Global Connections
2007 (March 2009), http://www.scotland.gov.uk/
Topics/Statistics/Browse/Economy/Exports/
GCSData.
64 KPMG Government Services, Administrative
Burdens: HMRC Measurement Project (March 2006),
http://www.hmrc.gov.uk/better-regulation/
kpmg1.pdf.
65 CBI, United Kingdom Business Tax: A Compelling
Case for Change (2008), http://www.cbi.org.uk/
pdf/taxsection01.pdf.
66 Office for National Statistics, Labour Force Survey ,
http://www.statistics.gov.uk/Cci/nscl.asp?
ID=6621; GERS 2007/08.
67 GERS 2007/08.
68 Office for National Statistics, Workforce Jobs,
http://www.statistics.gov.uk/StatBase/
Analysis.asp?vlnk=132&More=Y.
69 Scottish Government, Annual Population Survey in
Scotland 2007: A Compendium of Labour Market
Statistics (June 2008),http://www.scotland.gov.uk/Publications/2008/
06/25095306/0.
70 Scottish Government, Scotland’s Global Connections
2007 (March 2009) ,
http://www.scotland.gov.uk/Topics/
Statistics/Browse/Economy/Exports/GCSData.
71 Scottish Government, Scottish Annual Business
Statistics 2007 (updated August 2009),
http://www.scotland.gov.uk/Topics/Statistics/
16170/4363.
72 Scottish Enterprise, Energy Baseline Study (2009).
73 Scottish Government, The Strategy for the
Financial Services Industry in Scotland, Annual
Report 2009 (May 2009), http://www.scotland.
gov.uk/Publications/2009/05/27091345/0.
74 Scottish Government, Scottish Annual Business
Statistics 2007 (updated August 2009) ,
http://www.scotland.gov.uk/
Topics/Statistics/16170/4363.
75 Scottish Government, Food and Drink Key Sector
Report (October 2009), http://www.scotland.
gov.uk/Publications/2009/10/23153824/0.
76 Visit Scotland, Tourism in Scotland 2008 (2009),
http://www.visitscotland.org/research_and_
statistics/national_facts_and_figures.htm.
155
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 177/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
77 Scottish Government, Scottish Annual Business
Statistics 2007 , http://www.scotland.gov.uk/
Topics/Statistics/16170/4363; Scottish
Government, Scottish Global Connections 2007
(March 2009),
http://www.scotland.gov.uk/Topics/Statistics/
Browse/Economy/Exports/GCSData. (Creative
industries cannot be precisely defined using
standard industrial codes. For details of approach
used to track the sector see Annex A1, Mapping
the Creative Industries to official data
classifications, http://www.culture.gov.uk/
images/research/Creative_Industries_Economic
_Estimates_Jan_09.pdf.)
78 Derived from Scottish Enterprise database of life
science companies, http://www.scottish-enterprise.com/life_sciences_sector.htm.
79 QS, The QS World University Rankings 2007,
http://www.topuniversities.com/university-
rankings/world-university-rankings/2009/results.
80 Higher Education Statistics Agency (HESA),
http://www.hesa.ac.uk/index.php.
81 Scottish Government, Metrics for the Scottish
Research Base (modified March 2009),
http://www.scotland.gov.uk/Topics/Business-
Industry/science/16607/research-1.
82 OECD Directorate for Education, Education at a
Glance 2009: OECD Indicators,
http://www.oecd.org/document/9/0,3343,en_
2649_39263238_41266761_1_1_1_1,00.html.
83 Standard and Poor's, “Spain's Basque Country
Affirmed At 'AAA' And Off CreditWatch On
Unique Fiscal Autonomy/Robust Finances;
Outlook Stable” (January 2009),
http://www.euskadi.net/r33-2734/eu/
contenidos/nota_prensa/standard_aaa/eu_st_aaa /adjuntos/03.Standard.pdf; Isabelle Joumard and
Aristomène Varoudakis, “Options for Reforming
the Spanish Tax System” OECD Economics
Department Working Papers 249, OECD Economics
Department (2000), http://ideas.repec.org/p/
oec/ecoaaa/249-en.html.
84 See Scottish Government, The Government
Economic Strategy (November 2007),
http://www.scotland.gov.uk/Publications/
2007/11/12115041/0.
85 For example, in 2007 there were 310 persons of
pensionable age to 1,000 persons of working. This
ratio is projected to increase to 399 by 2031.
General Register Office Scotland, Population
Projections Scotland: Population projections by
sex, age and administrative area (revised October
2008), http://www.gro-scotland.gov.uk/statistics/
publications-and-data/popproj/06pop-proj-
scottishareas/index.html.
86 General Register Office Scotland, Population
Projections Scotland (2008-based) (revised
October 2009), http://www.gro-scotland.gov.uk/
statistics/publications-and-data/popproj/
projected-population-of-scotland-2008-based/
index.html.
87 Scottish Broadcasting Commission, Platform for
Success: Final report of the Scottish Broadcasting
Commission (September 2008), 40-45,
http://www.scottishbroadcastingcommission.gov.
uk/about/Final-Report.
88 Scottish Government, Opportunities for
Broadcasting: Taking forward our National
Conversation (September 2009), 17.
http://www.scotland.gov.uk/Publications/2009/
09/23125613/0.
89 This subject was discussed at the National
Conversation event in Melrose on 28 July 2009.
See http://www.anationalconversation.com.
90 Scottish Government, Poverty and income
inequality in Scotland: 2007/08 (May 2009),
http://www.scotland.gov.uk/Publications/
2009/05/povertyfigures0708.
91 Department of Work and Pensions, Households
Below Average Income: An analysis of the income
distribution, 1994/95 – 2007/08 (May 2009),
http://research.dwp.gov.uk/asd/hbai/hbai2008/ pdf_files/full_hbai09.pdf; European Commission,
Employment and social policy indicators: Indicators
of the social inclusion strand (last updated April
2009), http://epp.eurostat.ec.europa.eu/portal/
page/portal/employment_and_social_policy_
indicators/omc_social_inclusion_and_social_prot
ection/social_inclusion_strand.
92 See, for example, Jonathan Bradshaw, ‘Child
Poverty and Child Outcomes’, Children and
Society, vol. 16, issue 2 (April 2002), 131-140;
Scottish Government, Estimating the Cost of Child Poverty in Scotland – Approaches and Evidence
156
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 178/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
(April 2008), http://www.scotland.gov.uk/
Publications/2008/01/28111819/0; and Prince’s
Trust, The Cost of Exclusion: Counting the cost of
youth disadvantage in the UK (April 2007),
http://www.princes-trust.org.uk/about_the_trust/ what_we_do/research/cost_of_exclusion.aspx.
93 See Scottish Federation of Housing Associations
written response to the National Conversation
(December 2008), http://www.scotland.gov.uk/
Topics/a-national-conversation/NC-contributions-
inds-org.
94 See Scottish Government, Achieving Our Potential:
a framework for tackling poverty and income
inequality in Scotland (November 2008),
http://www.scotland.gov.uk/Publications/2008/11 /20103815/0.
95 Scottish Government, Choosing Scotland’s Future
(August 2007), 13, http://www.scotland.gov.uk/
Resource/Doc/194791/0052321.pdf.
96 See, for example, Commission on Scottish
Devolution, Serving Scotland Better: Scotland and
the United Kingdom in the 21st Century , Final
Report (June 2009), 200-208.
http://www.commissionscottishdevolution.
org.uk/ .
97 GERS 2007/08. Estimate includes an illustrative
geographical share of North Sea revenues.
98 Scottish Government, Communities and People:
Taking Forward our National Conversation
(November 2009), http://www.scotland.gov.uk/
Topics/a-national-conversation.
99 Department for Work and Pensions, First Release:
Income Related Benefits Estimates of Take-Up in
2007-08 (June 2009) , http://www.dwp.gov.uk/
docs/ifd250609benefits.pdf.
100 See Scottish Government, Rural Affairs,
Environment and Climate Change: Taking Forward
our National Conversation (October 2009),
http://www.scotland.gov.uk/Resource/Doc/
288135/0088042.pdf.
101 See, for example, the National Trust for Scotland
written response to the national Conversation
(August 2008), http://www.scotland.gov.uk/
Topics/a-national-conversation/NC-contributions-
inds-org.
102 See, for example, Scottish Government, “Scheme
to help preserve cod stocks” 4 February 2008,
http://www.scotland.gov.uk/News/Releases/2008
/02/01144700; and Scottish Government, “Fish
conservation” 4 April 2008, http://www.scotland.
gov.uk/News/Releases/2008/04/04113754.
103 Scottish Government, FMD Review (Scotland)
2007 (June 2008), http://www.scotland.gov.
UnitedKingdom/Publications/2008/
06/23130049/21.
104 HM Treasury and DEFRA, A Vision for the Common
Agricultural Policy (December 2005),
http://www.defra.gov.uk/foodfarm/policy/
capreform/documents/vision-for-cap.pdf.
105 See Scottish Association for Public Transport
written response to the National Conversation
(October 2008), http://www.scotland.gov.uk/
Topics/a-national-conversation/NC-contributions-
inds-org.
106 Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century , Final Report (June 2009), 98.
http://www.commissionscottishdevolution.org.uk/ .
107 See Scottish Federation of Housing Associations
written response to the National Conversation
(December 2008), http://www.commission
scottishdevolution.org.uk/ .
108 Commission on Scottish Devolution, Evidence from
the Independent Expert Group to the Commission
on Scottish Devolution: Natural Resource Taxation
and Scottish Devolution (March 2006),
http://www.commissiononscottishdevolution.org.
uk/uploads/2009-06-06-ieg-natural-resource-
taxation-1.pdf.
109 For information on the Nordic energy market, seeNordic Energy, Ten Perspectives on Nordic Energy:
Final Report of the Nordic Energy Perspectives
Project (September 2006), http://www.nordic
energy.net/publications.cfm?id=3-0&path=10.
110 Scottish Government, Action Plan on European
Engagement , Appendix I – European Union Review
and Forward Look: Update on Key Areas for
Engagement, http://www.scotland.gov.United
Kingdom/Publications/2009/09/07093832/1.
157
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 179/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
158
111 Scotland Act 1998, schedule 5, section G2; section
J1-J5, http://www.opsi.gov.uk/Acts/acts1998/
ukpga_19980046_en_1; see also Scottish
Government, Choosing Scotland’s Future Annex A:
Reservations in the Scotland Act 1998,
http://www.scotland.gov.uk/Publications/
2007/08/13103747/0.
112 Scottish Government, Communities and People:
Taking Forward our National Conversation
(November 2009), http://www.scotland.
gov.uk/Topics/a-national-conversation/
NC-contributions-inds-org.
113 Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century , Final Report (June 2009),recommendation 5.13, 187 – 188; recommendation
5.14, 188 – 190; recommendation 5.15, 190 – 191; and
recommendation 5.16, 191 – 192,
http://www.commissionscottishdevolution.org.uk/ .
114 Scottish Parliament official report, 18 December
2008, http://www.scottish.parliament.uk/
business/officialReports/meetingsParliament/
or-08/sor1218-01.htm; Scottish Government,
Scotland’s Road Safety Framework to 2020
(June 2009), http://www.scotland.gov.uk/
Publications/2009/06/08103221/0.
115 Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century , Final Report (June 2009), 193,
http://www.commissionscottishdevolution.org.uk/ .
116 See Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century , Final Report (June 2009), Part 4:
Strengthening Co-operation,
http://www.commissionscottishdevolution.org.uk/ .
117 Scottish Government, Europe and Foreign Affairs:Taking forward our National Conversation
(September 2009), http://www.scotland.gov.
uk/Publications/2009/09/08143726/0.
118 See Scottish Government, Europe and Foreign
Affairs: Taking forward our National Conversation
(September 2009), Annex A – Membership of
International Organisations and Ministries of
Foreign Affairs,
http://www.scotland.gov.uk/Publications/2009/
09/08143726/0.
119 Scotland Act 1998, schedule 5, part I, s.9(1);
Scotland Act 1998, schedule 5, part II, section B8;
Scotland Act 1998, schedule 5, part II, section B10,
http://www.opsi.gov.uk/acts/acts1998/ukpga_
19980046_en_1.
120 Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century , Final Report (June 2009), 62,
http://www.commissionscottishdevolution.org.uk/ .
121 Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century , Final Report (June 2009), 124,
http://www.commissionscottishdevolution.org.uk/ .
122 See, for example, Scottish Government, ChoosingScotland’s Future (August 2007), 3, 8-9,
http://www.scotland.gov.uk/Publications/2007/
08/13103747/0.
123 Scotland Act 1998, ss. 56-57.
124 Ministry of Justice, Governance of Britain – War
Powers and Treaties: Limiting Executive Power
(October 2007 – March 2008),
http://www.justice.gov.uk/consultations/
cp2607.htm.
125 HM Treasury, Public Expenditure Statistical
Analyses 2009 (July 2009), Table 4.2, ‘Public
sector expenditure on services by function, 1987-
88 to 2009-09’, 66, http://www.hm-treasury.
gov.uk/pespub_pesa09.htm.
126 See Hansard HC Deb, 9 September 2009, c
2000W and HC Deb, 22 October 2009, c 1634W;
GERS 2006/07, Table 6.4: http://www.scotland.
gov.uk/Resource/Doc/228544/0061858.pdf.
127 Ministry of Defence, UK Defence Statistics 2009
(September 2009), Table 2.2, ‘Location of serviceand personnel in the United Kingdom’, 51,
http://www.dasa.mod.uk/modintranet/UKDS/
UKDS2009/pdf/UKDS2009.pdf.
128 Scottish Government, Scottish Social Attitudes
Survey 2007 Core Module Report 1: Attitudes to
Government in Scotland (May 2008),
http://www.scotland.gov.uk/Publications/
2008/05/16095134/13.
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 180/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
159
129 Scottish Office, Shaping Scotland’s Parliament:
Report of the Consultative Steering Group on the
Scottish Parliament (December 1998),
http://www.scotland.gov.United Kingdom/library/
documents-w5/rcsg-00.htm .
130 Electoral Commission, Scottish Elections 2007: The
independent review of the Scottish Parliament and
local government elections 3 July 2007 (October
2007), http://www.electoralcommission.org.uk/
document-summary?assetid=13223.
131 Scottish Government, Scottish Social Attitudes
Survey 2007 Core Module Report 1: Attitudes to
Government in Scotland (May 2008),
http://www.scotland.gov.uk/Publications/2008/
05/16095134/13.
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 181/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
160
Scotland is steadily and surely shrugging off itsunenviable reputation as the sick man of Europe.To do that has involved taking courageousdecisions and backing these up with necessarylegislation – such as leading the way in banningsmoking in enclosed public spaces; delivering free
personal care; and our current legislative proposalswhich include measures to further reduce smoking,such as banning cigarette vending machines, and totackle alcohol misuse through the introduction ofminimum pricing. I am absolutely certain that wecan and should continue to lead the way in takingappropriate measures to improve the health of thepeople of Scotland, now and in the future. Onlywith full independent powers and responsibilitieswill we able to do so. This includes control over
taxation and benefits which are vital if we are toreduce poverty and low income, and eliminate thehealth inequalities which plague Scotland. Suchpowers will enable us to more fully determine and
shape the continuing improvements we need ifScotland’s people are to live longer, healthier lives.
“
”Minister for Public Health and Sport
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 182/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
161
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 183/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
162
Minister for Housing and Communities
Scotland’s achievements for housing sincedevolution in 1999 are significant. I amproud to serve in a Government, which,alongside our partners in local governmentand beyond, is part of this dynamic shift.But current constitutional arrangements
mean that crucial barriers to our progressstill remain, with key issues like taxation,social security benefits and financial andbusiness regulation remaining reserved toWestminster. We need responsibility for allpolicy areas impacting on housing todeliver the homes and communities that
Scotland needs and deserves. Independencecan bring about this vital change.
“
”
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 184/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
163
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 185/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
164
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 186/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
165
The Scottish Government continues toencourage, nurture and build a supportive
business environment. We recognise thateffective businesses are the key to delivering
accelerated and sustainable economic
growth. With greater autonomy and in anindependent Scotland, we would have theopportunity to put in place new initiatives
such as lower corporation tax to givecompanies in Scotland a new competitive
edge and to attract new businesses toScotland. Constitutional reform would alsogive Scotland responsibility for developingour vast energy resources, including our oiland gas reserves and our huge potential in
renewables and carbon capture.
“
”Minister for Enterprise,
Energy and Tourism
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 187/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
166
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 188/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
167
Scotland’s ambitious and comprehensiveclimate change legislation establishes thiscountry as a global leader in developing a
low carbon economy. We recognise thecontribution that Scotland must make to
reverse the carbon polluting impacts of the
first industrial revolution and the economicopportunities for those who move quickly
into the next. We are doing all we can
within the powers available to us totransform our domestic performance and
to influence the conduct of internationalnegotiations. With the powers properly
available to an independent nation state,we would enhance our internationalcontribution and move more rapidly
towards the more successful and just lowcarbon economy we want to see.
“
”Minister for Transport,
Infrastructure, and Climate Change
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 189/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
168
Minister for Schools and Skills
To create the sort of country of which we can allbe proud to be a part, we need an educationsystem within which our children and youngpeople will be equipped to succeed personally,socially and economically in the modern world.This goes beyond education. For example, aspectsof the UK tax credit and benefits system impact
directly on the lives of some of Scotland’s mostvulnerable children and young people, such asthose with disabilities. Constitutional reform willallow us to fully align all of Scotland’s publicservice systems to work with the third sector,communities and parents to help enable currentand future generations to thrive.
“
”
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 190/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
169
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 191/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
170
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 192/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
171
Minister for Children
and Early Years
This Government has recently published the Early YearsFramework, making clear our commitment to supporting
children and their families.
While we are making progress in many areas, includingsetting out how we intend to improve accessibility and
flexibility of childcare, the Scottish Government haslimited leverage for change on the issue of affordability.
Under the current constitutional settlement, tax creditswhich support parents with the costs of childcare can be
complex and bureaucratic. Instead, we want to see asingle, accessible and progressive means of supporting
parents with the cost of childcare, appropriate to theneeds of the people of Scotland.
We do not want Scottish solutions undermined andobstructed by monolithic UK-wide systems, which are not
responsive to Scotland’s specific needs. We wantaccessible and affordable childcare, helping parents back
in to work and boosting our economy.
“
”
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 193/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
172
Minister for Community Safety
Scottish Governments have made largescale and radical reforms to the criminal
justice system to successfully address theserious challenges facing our communities.But there are important gaps in our powers
and responsibilities. These gaps hinder ourefforts to produce joined up policies whichfully address Scottish needs andcircumstances. Further constitutionalreform, especially in the areas such asfirearms and drink driving, would allow usto tackle these issues directly and at our
own hand.
“
”
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 194/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
173
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 195/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
174
Minister for En vironment
Our natural environment is part of S
cotland’s
unique and distinct character. It sust
ains
businesses and jobs, supports famil
ies and
communities, putsfood on our plates
and
offers huge potential for sustainable
economic
growth. We couldensure it contribu
tes this
and so much more if we didn’t have unhelpful
limits on our ambitions and actions.
“”
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 196/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
175
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 197/198
A National Conversation – YOUR SCOTLAND, YOUR VOICE
176
8/8/2019 30 11 09 Referendum
http://slidepdf.com/reader/full/30-11-09-referendum 198/198
For more information on the National Conversation please email joinin@anationalconversation.comor visit the National Conversation website at www.anationalconversation.com
The National Conversation2 E South Victoria QuayEdinburghEH6 6QQ
top related