Your Scotland Your Voice: a National Conversation

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IASKEVERYSCOTTOPAUSE ANDREFLECT,NOTJUSTON WHATKINDOFCOUNTRYWE ARE,BUTONTHEKINDOF COUNTRYWECOULDBE,THE KINDOFCOUNTRYWESHOULD BE.IAMCOMMITTEDTOANEW CHAPTERINSCOTTISH POLITICS,ONEINWHICHTHE STORYANDTHESCRIPTIS WRITTENBYTHEPEOPLEAND NOTJUSTBYTHEPOLITICIANS. ALEX SALMOND, FIRST MINISTER OF SCOTLAND, 14 AUGUST 2007

i A National Conversation – YOUR SCOTLAND, YOUR VOICE

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No man has a right to fix the boundary of the march of a nation; no man has a right to say to his country, “Thus far shalt thou go and no further”. Charles Stewart Parnell (1846-1891)

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Scotland has a long and proud record of innovation and excellence in health and healthcare, with internationally recognised medical schools alongside world-renowned “clinical and scientiﬁc research. Our National Health Service is one of which we can similarly be proud. By wisely using already wide ranging devolved responsibilities for health and wellbeing on behalf of the people of Scotland we have changed the landscape of and potential for improving health and health inequalities. Huge strides have been made in reducing waiting times and our strategies to improve coronary heart disease, stroke and cancer services, among others, have brought with them signiﬁcant improvements for patients. What has been done is testament to what can be achieved and I am certain that with full powers and responsibilities in an independent nation we can and will achieve much more.”

Deputy First Minister and Cabinet Secretary for Health & Wellbeing

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For far too long we have been at the mercy of ﬁnancial and economic decisions taken outside Scotland. Under the current framework, key economic policy levers, “including responsibility for supporting the economy during downturns and the operation of the tax system, are withheld from the Scottish Government. This cannot be in the best interests of the Scottish economy; not now and not for the long- term. Now is the time for change. In order for Scotland to achieve its full potential we must have greater responsibility for our own economy.” Cabinet Secretary for Finance and Sustainable Growth

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The current constitutional settlement places limits on Scotland’s ability to fully capitalise on the economic beneﬁts our education and skills system offers us. In particular our employment and beneﬁts system must “be structured to help as many people as possible from all parts of Scotland into sustainable employment. This can be best achieved by placing the needs and expectations of the people of Scotland at the heart of its design and operation.” Cabinet Secretary for Education and Lifelong Learning

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Scotland’s laws and justice system are unique. They have been established for centuries and been maintained through 300 years of an incorporating union. Under devolution“ with justice mainly devolved they continue to serve Scotland in a unique way appropriate to our country and its people. We have conﬁdence in the people of Scotland and they can be proud of Scotland’s achievements. We want the Scottish Government to be able to go further in the interests of the Scottish people. We want to be able to tackle all aspects of crime and its” causes.

Cabinet Secretary for Justice

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Using our existing but limited powers, the Scottish Government has delivered much progress for our rural communities but there are numerous examples where “the inﬂuence of an independent country would have brought much greater beneﬁts.

When I attend European negotiations and witness the success of other similar sized nations, I appreciate more than ever how having our own voice in Europe would ensure the distinctive needs of our farmers, ﬁshermen and our environment would be recognised.” Cabinet Secretary for Rural Aﬀairs and the Environment

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We have legislated to remove the confusion of combined polls and developed proposals to clarify the conduct of Scottish elections. “Responsibility is currently split between Holyrood and Westminster. Giving Holyrood the responsibility for all elections in Scotland would bring accountability closer to the voter and restore conﬁdence in the democratic process. We would lower the voting age to 16 and introduce STV for all elections so extending participation and democracy in Scotland.”

Minister for Parliamentary Business

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The National Conversation has demonstrated that there is a tremendous appetite for debate about Scotland’s constitutional future. Across the country, people have considered and discussed a “range of constitutional choices, from expanded devolution to independence. There are a wide variety of options to reform our constitution, but most 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 since devolution, but I believe that independence presents the best opportunity for Scotland to ﬂourish. It would enable Scotland to thrive internationally and culturally; Scotland would conduct itself on the world stage as an equal with other sovereign states. It would also give Scotland responsibility for all the policy tools required to promote sustainable economic growth. ”

Minister for Culture, External Aﬀairs and the Constitution

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CONTENTS

FOREWORD 1

1. THE NATIONAL CONVERSATION ON SCOTLAND’S FUTURE 3 Introduction 3 Current constitutional arrangements 3 Options for the future 4 The National Conversation 5

2. THE OPTIONS FOR SCOTLAND’S FUTURE 15 Introduction 15 Current position 16 Commission on Scottish Devolution 16 Full devolution 17 Independence 17

3. A WEALTHIER SCOTLAND 21 Overview 21 Economic and ﬁscal policy 23 Business and enterprise 39 Migration 50 Broadcasting 53 Conclusion 57

4. A FAIRER SCOTLAND 59 Overview 59 Welfare and beneﬁts 60 Housing and regeneration 64 Equal opportunities 68 Conclusion 69

5. A GREENER SCOTLAND 71 Overview 71 Environment, agriculture and ﬁsheries 72 Transport 82 Energy 85 Conclusion 89

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6. A HEALTHIER AND SMARTER SCOTLAND 91 Overview 91 Health 91 Education and children 96 Conclusion 97

7. A SAFER SCOTLAND 99 Overview 99 Criminal and civil justice 100 Judiciary and the Courts 102 Human rights and responsibilities 104 Conclusion 105

8. A STRONGER SCOTLAND 107 Overview 107 Scotland in the world today 108 Scotland’s future role 108 Conclusion 122

9. A MODERN SCOTLAND 125 Overview 125 Constitution and government 126 Elections 131 Conclusion 133

10. CHOOSING SCOTLAND’S FUTURE 135 Introduction 135 Involving the people 135 A national referendum 136 The next step 139

ANNEX A NATIONAL CONVERSATION EVENTS 140

ANNEX B ORGANISATIONS CONTRIBUTING TO THE NATIONAL CONVERSATION 144

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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 the National Conversation on the future of Scotland: at public meetings, in print and 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 consider and debate our national future. Second, that the current arrangements do not meet the ambitions of our nation. Ten years on from devolution, almost all agree that it is time to expand the responsibilities of our Parliament.

Ten years ago Donald Dewar said the Scottish Parliament was “a new voice in the land, a voice to shape Scotland, a voice above all for the future”. 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 its natural resources and its waste; for its old and its young; for its roads and its seas; for its place in the world, for peace and war, for ties of friendship and common interest with the other nations of the earth.

These are the matters with which normal, independent countries deal every day. They know the challenges and opportunities that come with that independence, as well as the responsibility.

Scotland and its people are more than capable of doing so, too. We would beneﬁt from the opportunities. I believe it is time that Scotland reclaimed its place among the nations of Europe and the world. Other people have different views. It is now time for the voice of the people to be heard – in the referendum on Scotland’s future we intend to hold in November 2010.

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I think the idea of a National Conversation is hugely effective in bringing people within the democratic experience. (Glasgow Summer Cabinet, 1 September 2009)

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CHAPTER 1

THENATIONALCONVERSATION ON SCOTLAND’S FUTURE

INTRODUCTION CURRENTCONSTITUTIONAL ARRANGEMENTS 1.1 In September 1997 the people of Scotland decided in a referendum to 1.3 The Scotland Act 1998 was the last establish a Scottish Parliament, major change to the government of exercising their sovereign right to Scotland within the United Kingdom determine the form of their own (see Box 1). The Act devolved to a government.1 In the same Scottish Parliament and Scottish referendum the people supported Government all matters not reserved tax varying powers for the specifically to the United Kingdom: Parliament.2 On 1 July 1999 the in practice domestic matters Scottish Parliament was formally administered previously by the vested with its full responsibilities. Scottish Office, such as health, education, justice, local government 1.2 Ten years on from devolution, the and agriculture and fisheries.3 National Conversation has prompted extensive debate across Scotland on 1.4 The matters reserved to the United the options for the future of the Kingdom included: country: continuing with the current situation; extending the • matters seen as fundamental to the responsibilities of the Scottish state: the Head of State, citizenship, Parliament and Government; and foreign affairs, and defence and independence for Scotland. A security referendum on the options for • matters regarded as needing a Scotland’s future would give the common regime across the United people an opportunity to have their Kingdom, such as employment and say. business law, drug classification and firearms control • matters that the United Kingdom Government thought should be organised across Great Britain or the United Kingdom, such as economic affairs, social security, and tax collection

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1.5 Even the existing devolution been used to increase the level of settlement envisages changes in capital investment, helping to support these devolved responsibilities. As a greater number of jobs in Scotland. only specified areas are reserved, any new issues – such as climate 1.7 For devolution to be successful, the change – fall within devolved Scottish Government needs to work responsibility. The existing list of closely with the United Kingdom reserved matters can be adjusted by Government, the other devolved order with the agreement of the administrations and the European Scottish and United Kingdom Union. The governments have Parliaments, although there is no worked well together on some statutory mechanism for the Scottish issues: anti-terrorism measures; the Parliament to request action from swine flu outbreak; and Climate the United Kingdom Parliament to Change Bills in both the Scottish alter the division of responsibilities.4 and United Kingdom Parliaments. Regular meetings of the Joint 1.6 The Scottish Government has taken Ministerial Committees have been steps within its current responsibilities re-established. However, relations to further its purpose of focussing between the Scottish and United the Government and public services Kingdom Governments have been on creating a more successful less successful on other occasions: country, with opportunities for all of negotiations for a Prisoner Transfer Scotland to flourish, through Agreement with Libya; delay in increasing sustainable economic amending the law on human rights growth. The Scottish Government cases under the Scotland Act;5 has also addressed the economic exclusion of Scottish Ministers from and financial crisis through the the United Kingdom delegation to Scottish Economic Recovery Plan, the Copenhagen Summit on Climate but the main policy responsibilities Change; and the United Kingdom remain with the United Kingdom Government’s refusal to be flexible in Government, notably the level of funding capital projects, notably the public debt and spending over the Forth Road Bridge. short term, advancing capital expenditure from future years, and OPTIONSFORTHEFUTURE the overall tax regime. The Scottish Government has been constrained in 1.8 The Scottish Government’s white the fiscal stimulus package it can paper Choosing Scotland’s Future, introduce, and the actions taken by published in August 2007, identified the United Kingdom Government may three principal options: not be best suited to Scotland. For • the current devolution scheme, with example, the resources allocated to the possibility of further devolution on the temporary cut in Value Added Tax individual matters as occasions arise by the United Kingdom could have

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• a package of specific extensions to The Commission also made a devolved responsibilities, including number of recommendations about fiscal autonomy, but short of inter-Governmental and inter- independence. Such a package might Parliamentary working. need, or benefit from, the consent of the Scottish people in a referendum 1.10 Your Scotland, Your Voice discusses • independence: Scotland would in detail the advantages and assume all the responsibilities and disadvantages of various rights of a normal European state, constitutional options for Scotland’s including membership of the future. As the package proposed by European Union and other the Commission on Scottish international bodies, the ability to Devolution falls short of full determine economic policy, devolution, the paper discusses the including the currency, and full opportunities provided by both the responsibility for defence and Commission’s proposals and more security.6 extensive devolution, as well as independence. 1.9 The Commission on Scottish Devolution (see Box 2) was set up in THENATIONALCONVERSATION 2008 by the Scottish Parliament and 1.11 The National Conversation began in the United Kingdom Government. August 2007 with the publication of Its terms of reference excluded Choosing Scotland’s Future. Over consideration of independence. It 5,300 people have attended more has proposed a package of changes than 50 National Conversation to the devolution settlement. The events throughout Scotland. Some main elements are: 500,000 have viewed the website, • devolution of an element of income which provides video and audio tax records of meetings, access to • devolution of some other minor taxes documents, Ministerial blogs and an • limited borrowing ability for the opportunity to comment.7 The Scottish Government National Conversation has been a • devolution of responsibilities for unique programme of engagement drink driving limits, airguns and with the Scottish public which has speed limits involved civic organisations, young • a formal role for Scottish Ministers in Scots, black and minority ethnic reserved policies on benefits and communities, and individuals from marine conservation all parts of the country. A full list of • reserving to the United Kingdom National Conversation events is at Parliament and Government a Annex A, and a list of organisations number of matters currently that have participated is at Annex B.8 devolved (regulation of health professionals, definition of charities)

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Public events events have been hosted by the Scottish Council of Voluntary 1.12 The National Conversation has been Organisations (SCVO), the Council an open, inclusive process intended of Ethnic Minority Voluntary to encourage debate, ideas and Organisations (CEMVO), Young Scot opinions. Events have been held and the Scottish Youth Parliament, from Glasgow and Edinburgh to and churches and faith groups. Stornoway and Dumfries. National Conversation events were part of 1.15 There have also been National the Scottish Cabinets held across Conversation events outside Scotland in the summers of 2008 Scotland. Ministers have debated and 2009, with the First Minister, the these issues in London, Toronto and Cabinet, and other Ministers, on the Dublin. The First Minister hosted a platform. There have also been 130 National Conversation seminar in National Conversation economy- Brussels, and the National based sessions with community and Conversation paper on European business groups, attended by more and Foreign Affairs was later than 6,500 people across Scotland. launched there.

1.13 The events gave members of the The National Conversation website public the opportunity to present their own views, ask Scottish 1.16 The National Conversation has Ministers about their vision of pioneered the use of new media Scotland, and to ask questions on within the Scottish Government, local, national and international with regular blogs from Ministers concerns. The events have and the opportunity for individuals illustrated how the constitution from across the political spectrum embraces everyday concerns such to debate directly with the Scottish as the economy, employment, Government and each other. So far energy, beneﬁts, housing, education the National Conversation website and health. Quotes and comments has received over 500,000 hits, and from these events appear almost 5,000 people have throughout this paper. contributed to the National Conversation blogs from all 1.14 Civic Scotland has been a key part perspectives and across the world.9 of the National Conversation. On 26 March 2008, the First Minister 1.17 The website has also built up a and the Cabinet hosted a meeting record of the National Conversation of over 120 representatives of civic as it has progressed, with video and society, acknowledging the audio records of meetings, transcripts importance of Scotland’s civic of speeches, records of comments institutions. National Conversation and questions and photographs.

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Along with an interactive timeline of Wider debate Scotland’s constitutional story, the website has become a forum for 1.19 The National Conversation is not debate, a resource for research and taking place in isolation. lasting evidence of the interest Constitutional reform is a major generated by the National issue across the United Kingdom, Conversation as it has developed. prompted in part by public concern about the expenses system of the National Conversation policy papers United Kingdom Parliament. The United Kingdom Government’s 1.18 As part of the National response has been to launch its Conversation, the Scottish Building Britain’s Future initiative, Government has published a series the aim of which is to rebuild trust in of papers on different constitutional politics, as well as to respond to the options for reserved and devolved recent economic crisis.10 Other policy areas. These papers include: organisations have launched initiatives in response to the expenses • Fiscal Autonomy in Scotland: The issue and the constitutional issues case for change and options for raised, for example, the Joseph reform Rowntree Trusts’ POWER 2010 • Europe and Foreign Affairs: Taking project.11 forward our National Conversation 1.20 The United Kingdom Government has • Opportunities for Broadcasting: also continued its programme of work Taking forward our National on the Governance of Britain, and is Conversation taking forward a Constitutional • An Oil Fund for Scotland: Taking Reform and Governance Bill which forward our National Conversation would place the civil service on a • People and Communities: Taking statutory footing, among other forward our National Conversation measures.12 • Rural Affairs, the Environment and Climate Change: Taking forward our 1.21 In Wales, the All Wales Convention National Conversation published its report on 18 November 2009 recommending a referendum on extending the legislative competence of the Welsh Very useful, you are Assembly.13 The Welsh Assembly Government’s Independent to be congratulated Commission on Funding and Finance for attempting to for Wales (the Holtham Commission) also published its ﬁrst report on encourage debate. reforming funding of devolved Folks have been given government in Wales on 7 July 2009.14 their chance to speak. (Stirling National Conversation event, 13 May 2009) 7 A National Conversation – YOUR SCOTLAND, YOUR VOICE

BOX 1: SCOTLAND’S CONSTITUTIONAL JOURNEY SINCE THETREATYOFUNION

1. The Treaty of Union between the independent kingdoms of Scotland and England came into force on 1 May 1707. The Treaty created a uniﬁed Crown and a single Parliament for the new kingdom of Great Britain. Its other main provisions covered representation in the new Parliament and reciprocal measures of taxation and trade, and it preserved various Scottish institutions, notably a separate legal system. Separate legislation guaranteed the position of the Church 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 took time to materialise – were offset by the higher English taxes 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 of the succession to the throne, seemed settled. New imperatives of industrial revolution and Empire moved to the fore. Scotland played a full part in these British developments, but its nationhood was preserved by the separate institutions protected by the Treaty of Union.

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4. In 1853, the National Association for the Vindication of Scottish Rights was formed. Although short-lived, this indicated growing interest in Scotland’s position as a separate 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 British Empire.

5. The emergence of political interest in Home Rule for Scotland was accompanied by changes in the arrangements for Scotland’s government, starting with the creation of the Scottish Office in 1885 and the appointment of the first Secretary for Scotland to represent Scottish interests in the United Kingdom Cabinet. This recognised that Scotland’s distinctive culture, institutional and political identity required specific and full-time representation. However, no separate national democratic assembly was developed.

6. Scottish Home Rule took on greater currency with the formation of a Scottish Home Rule Association in 1886. In 1888 Keir Hardie adopted a Home Rule platform at the Mid Lanark by-election, and Scotland’s constitutional position has remained a central political issue since then. Home Rule for Scotland was debated on many occasions in the United Kingdom Parliament, and a number of Bills were introduced. In 1913 a Home Rule Bill passed its Second Reading, but the First World War intervened before further legislative steps could be taken.

7. Following the First World War, the political relevance of Scottish Home Rule was maintained by various political parties 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 (formed in 1932). The SNP won its ﬁrst parliamentary seat at the Motherwell by-election in 1945, but held it for only three months.

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8. Unionism dominated in Scotland following the Second World War, and in 1950 the Labour Party abandoned its support for Scottish Home Rule, although this remained an important issue in Scotland. The Scottish Covenant Association helped sustain popular interest in a Scottish assembly, attracting two million signatures between 1949 and 1950. However, the Association was not linked to any political party and failed to secure its objectives directly.

9. Scottish Home Rule returned as a key issue with the SNP’s victory in the Hamilton by-election of 1967. Winnie Ewing won the seat with 46% of the vote, marking the emergence of the SNP as an electoral force and mainstream political party.

10. Since the Hamilton by-election, each of the main political parties has, at different times, committed itself to new constitutional arrangements for Scotland. In 1968 the declaration of Perth committed the Conservatives to Scottish devolution in some form, and in 1970 the Conservative government published Scotland’s Government, which recommended the creation of a Scottish assembly. However, Conservative support for Scottish devolution declined, and the party opposed legislative devolution for Scotland through the 1980s and 1990s. Although the party campaigned for a “No” vote in the referendum of 1997, the Conservatives at both Scottish and United Kingdom level have supported the Scottish Parliament since it was established.

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11. In 1969, the Labour Government commissioned a report into constitutional options for the United Kingdom. The Kilbrandon Commission did not report until 1973 by which time a Conservative government was in power. The Kilbrandon report recommended devolved assemblies for Scotland and Wales, which led eventually to devolution being put to the electorate in a referendum in 1979. The legislation required 40% of the total electorate to support devolution in the Scottish referendum; in the event only 32.9% supported the assembly, although this represented 51.6% of those who voted, and a majority of more than 77,000.

12. Following the election of the Conservative Government in 1979, devolution, and the concept of the sovereignty of the Scottish people, was taken forward ﬁrst by the Campaign for a Scottish Assembly, and then, from 1989, the Scottish Constitutional 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. This was followed in 1995 by Scotland’s Parliament, Scotland’s Right, the Scottish Constitutional Convention’s blueprint for a Scottish assembly, which became the basis for the settlement that was eventually enacted.

13. The Labour Party fought the 1997 general election on a platform that included a commitment to a referendum on Scottish 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 on 11 September 1997. Over 74% of those participating supported the creation of the Scottish Parliament, and over 63% tax varying powers for the Parliament. The Scottish Parliament that reconvened in 1999 was based on the constitutional settlement in the subsequent Scotland Act 1998.

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BOX 2: THE COMMISSION ON SCOTTISH DEVOLUTION

1. On 6 December 2007, the Scottish Parliament passed a motion calling for the creation of an independently chaired commission to review devolution in Scotland. Chaired by Sir Kenneth Calman, the remit of the Commission on Scottish Devolution was:

To review the provisions of the Scotland Act 1998 in the light of experience and to recommend any changes to the present constitutional arrangements that would enable the Scottish Parliament to serve the people of Scotland better, improve the ﬁnancial accountability of the Scottish Parliament, and continue to secure the position of Scotland within the United Kingdom.

Members of the Commission were drawn from Scottish civic society and the Labour, Liberal Democrat and Conservative parties. The United Kingdom Government largely provided the secretariat for the Commission. As the Commission’s remit excluded independence, the Scottish Government declined to take part.

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2. Over the course of its work, the Commission took evidence mainly in writing, although there were formal evidence sessions with members of representative organisations and twelve public meetings to allow members of the public to engage with the Commission directly. The United Kingdom Government provided written submissions to the Commission, while the Scottish Government provided factual information. The Commission published its ﬁrst report 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 63 recommendations in four categories:

• strengthening ﬁnancial accountability • strengthening co-operation between the Scottish and United 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 take forward the recommendations.

4. The Scottish Parliament debated the Commission’s ﬁnal report on 25 June, passing a motion supporting its recommendations. The Scottish Government published its formal response to the Commission’s recommendations on 9 November 2009.15 While not in favour of all the conclusions of the report, the Scottish Government does support a number of recommendations and has set out a mechanism for those proposals with widespread agreement to be implemented as soon as possible.

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CHAPTER 2

THEOPTIONSFOR SCOTLAND’S FUTURE

INTRODUCTION taxation and benefits, foreign affairs and defence to human rights, 2.1 Devolution was never intended as broadcasting and responsibility for a fixed arrangement: it was and is airguns and drink-drive limits. In these a process which should respond to and many other areas, decisions for political, economic and social Scotland are not made by the circumstances over time to ensure Scottish Parliament and the Scottish that Scotland is well-positioned to Government, but by their United address the challenges it faces and Kingdom counterparts. take advantage of opportunities. Nor does devolution need to be 2.4 This paper covers many of the most Scotland’s final constitutional important policy areas which would destination. be affected by different constitutional arrangements. However, it is not 2.2 The tenth anniversary of the Scottish exhaustive: it focuses on those areas Parliament offers a suitable moment where new constitutional to consider these issues in depth, arrangements, whether full and invite the people to have their devolution or independence, would say on the next steps in Scotland’s provide the greatest opportunities constitutional journey. to develop Scotland-specific approaches to particular issues.16 2.3 The National Conversation has It also discusses significant areas of identified many areas for further Scottish life which are already largely devolution, as well as the arguments devolved, such as health, education around independence. The National and justice. The achievements in Conversation has illustrated that the these areas since devolution constitutional debate raises issues illustrate the potential for Scotland across the whole range of to tackle its problems and promote government activity and Scottish its successes with the right life, from economic policy, responsibilities and opportunities.

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2.5 The paper describes the opportunities Government. While the devolved that increased responsibility would responsibility of the Scottish provide for Scotland to develop Ministers has been adjusted policies to address its issues. The relatively frequently, extension of use made of these opportunities the legislative competence of the would depend on the policy choices Scottish Parliament has been rarer.17 of future Scottish Governments and the make up of future Parliaments. COMMISSIONONSCOTTISH The examples in the paper therefore DEVOLUTION illustrate the benefits and challenges of these responsibilities, and are 2.8 The Commission carried out a neither a programme for government review of devolution, although it nor commitments to future action. did not consider the possibility of independence, and was prevented 2.6 There are four broad options for by its terms of reference from Scotland’s future: examining some of the more significant options such as full fiscal • the status quo: Scotland retains its autonomy.18 The Commission current responsibilities with gradual nevertheless proposed a package evolution in response to particular of alterations to the devolution events or pressures settlement that embodied new • implementing the recommendations principles, such as giving the of the Commission on Scottish Scottish Government a limited ability Devolution to borrow. It also recommended • full devolution of the maximum ways to improve the relationships range of responsibilities to Scotland between the Scottish Government while remaining in the United and Parliament and the United Kingdom (sometimes called Kingdom Government and Parliament. “devolution max”) The advantages and drawbacks of • independence: Scotland has all their main recommendations are the rights and responsibilities of discussed in detail later in the paper. a normal independent state

CURRENTPOSITION

2.7 Under the Scotland Act, amendments can be made to the legislative competence of the Scottish Parliament and the executive responsibilities of the Scottish

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2.9 The Commission did not make protection and pensions. Existing recommendations in a number of areas of disagreement would important areas including economic continue. Improved inter- issues, employment and company governmental relations, including law, and foreign affairs. The enforceable principles of parity of Commission’s recommendations on esteem, would be required for benefits fell short of further Scotland to get the most out of its devolution, but recognised the increased responsibility. interest of the devolved government of Scotland in reserved policy INDEPENDENCE making. Devolved competence could therefore be extended beyond 2.11 The Scottish Government’s favoured the recommendations of the policy is independence, which would Commission. bring all the possibilities of full devolution with the additional FULLDEVOLUTION responsibilities that could not be devolved within the United Kingdom, 2.10 Under full devolution the existing such as foreign affairs and defence. devolution framework would be Under independence Scotland retained, and Scotland would remain would be responsible for: within the United Kingdom. The United Kingdom Government and • the economy, including decisions on institutions would continue to have the currency and the macroeconomic responsibility for many matters, for framework example the currency and monetary • investment in education, enterprise policy, and decisions on peace and and infrastructure including war. Full devolution would give transport and housing Scotland more responsibility for • the environment, energy and domestic matters, and would extend climate change the range of measures the Scottish • the taxation and benefits system Government and the Scottish • the full range of public services, Parliament could take to encourage including benefits and health greater sustainable economic • foreign affairs, defence and security growth. Nonetheless, there would be matters continued interaction with matters • equality legislation and human rights reserved to the United Kingdom, for • the constitution and government of example foreign affairs, defence, Scotland, including Parliament, the macroeconomic policy, some courts, local government taxation and, possibly, social

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2.12 Independence would complete the 2.13 As an independent nation, Scotland responsibilities of the Scottish would be similar to other sovereign Parliament and Government, while nations across the world. In recent allowing existing structures and years, many countries have gained services to continue. Aspects of an independence, recognising that it is independent Scotland would be right that sovereign nations are familiar: services and entitlements responsible for their own decisions, continuing to be delivered; pension while still working in partnership and beneﬁts continuing to be paid at with other nations. At the moment, a similar level as now. Services such Scotland is a nation within a larger as the NHS and education are state, unable to speak for itself on already largely devolved, and so all relevant matters. Independence would continue in much the same would give Scotland the responsibility form as they do now. Over time, the for making decisions about its future Scottish Government and Scottish as part of an international, Parliament could develop and globalised environment, making a implement Scotland-speciﬁc full contribution to the solutions. interdependent world.

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 Calman Commission, although it has some great ideas, is based on what three political parties want. (Aberdeen Summer Cabinet, 18 August 2009)

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I can see no way forward for the country other than full fiscal autonomy. But my question is, would it be better to do this and share some common resources as part of the United Kingdom (e.g. armed forces, embassies around the world, etc). Or can a case be made that this would be better done independently? (National Conversation website, 18 November 2008)

How will independence benefit young people in Scotland? (Inverness Summer Cabinet 5 August 2008)

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CHAPTER 3

AWEALTHIERSCOTLAND

OVERVIEW

3.1 Sustainable economic development In the modern interdependent world, improves the quality of life, health these mechanisms are often co- and the environment to the beneﬁt ordinated internationally, most of all in society, while managing the notably, in Scotland’s case, through resources of the planet for the the European Union. future. It is one of the central goals of governments around the world, 3.3 Under the current arrangements and is the overarching purpose of many of the key mechanisms to the Scottish Government. promote economic growth are reserved to the United Kingdom 3.2 A nation’s prosperity depends upon Government and other United everyone playing a part – as Kingdom institutions. Some could be workers, consumers, volunteers and devolved to Scotland within the business people. A government’s United Kingdom (for example, role is to enable their success by aspects of the tax system, as investing in people and places, and recommended by the Commission tackling unnecessary obstacles to on Scottish Devolution). sustainable economic growth. There are a number of mechanisms governments can use to promote growth including:

• encouraging economic development through effective ﬁscal and monetary policy • inﬂuencing economic, social and environmental objectives through legislation and regulation of labour and product markets • investing directly in infrastructure and education

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What steps are being taken to mitigate Scotland, in particular against the effects of resource depletion? We are so dependent in every way now, that huge changes are needed to empower and re-skill future generations to create a resilient, sustainable community with confident, capable people able to meet the very challenging times they will face. (Oban National Conversation event, 5 October 2009)

3.4 With independence Scotland would • borrowing responsibly for investment have full responsibility for promoting in key long-term projects, such as economic growth and improving the Forth Road Bridge Scotland’s long-term competitiveness, • representing Scottish interests including: internationally: for example fishing policy in the European Union; duties • designing a tax system to make on whisky in the World Trade Scotland a more attractive place for Organization business growth and investment • establishing a distinct population • choosing a macroeconomic strategy, addressing the framework, including the operation demographic and skills challenges of fiscal policy, best suited to the that face the nation characteristics of the Scottish economy • encouraging research and investment to spur growth in key sectors where Scotland has comparative advantages, for example in energy, food and drink, life sciences, financial services, creative industries and sustainable tourism

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ECONOMICANDFISCALPOLICY Current responsibilities

Introduction 3.7 The current devolution arrangements give the Scottish 3.5 The Scottish Government aims to Government responsibility for a create higher levels of sustainable number of policy areas that affect economic growth and improvements Scotland’s long-term economic in productivity, labour market performance, such as education, participation and population, while transport, planning and economic building solidarity, cohesion and development. The Government sustainability.19 An economic and Economic Strategy outlines how ﬁscal framework that enhances these are used presently to improve Scotland’s long-term competitiveness Scotland’s sustainable economic and ability to respond swiftly and growth rate.21 decisively to short-term economic pressures and circumstances is vital 3.8 However, key elements of economic to achieving sustainable economic policy, including taxation, growth. macroeconomic policy, science and innovation, social security, 3.6 For over a generation, the growth employment law and ﬁnancial rate of the Scottish economy has regulation lie outside current been lower than that of the United Scottish responsibilities. Kingdom and other comparable European countries. In the 30 years to 2007, Scotland’s average annual GDP growth rate was 2.0% – lower than the United Kingdom economy as a whole (2.4%) and well behind Ireland (5.3%), Norway (3.1%) and Finland (2.9%). As a result of being locked into a low-growth cycle for so long, Scotland now trails many comparable European countries across a range of economic indicators.20

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Fiscal policy authorities, and indeed the Northern Ireland Executive and the vast 3.9 The Scottish Parliament and majority of other comparable Government are responsible for the devolved governments, the Scottish allocation of much of public sector Government cannot borrow for expenditure for Scotland: around wider policy objectives, for example £30 billion out of £50 billion.22 to meet pressures in an economic However, several key areas of downturn or to fund capital projects Scottish public spending are reserved, like the new Forth crossing.24 for example defence spending. Macroeconomic policy 3.10 In contrast to its spending autonomy, Scotland has very limited 3.12 A balanced and supportive responsibility for raising money for macroeconomic policy framework public spending. Only three taxation is key to fostering innovation, instruments are devolved to investment and job creation and in Scotland: local taxation (currently creating the right incentives, the council tax); business rates; and conditions and opportunities for the Scottish Variable Rate which can economic growth. vary the basic rate of income tax by up to 3p.23 The vast majority of tax 3.13 There are two main instruments of revenue raised in Scotland is set and macroeconomic policy: collected at the United Kingdom level. For devolved matters, the • monetary policy: the use of interest United Kingdom Government then rates, money supply and exchange determines how much of this should rates to influence the level of be reallocated back to Scotland money, credit and inflation in the through the Scottish Block Grant economy and the operation of the Barnett • fiscal policy: the framework for the Formula (see Box 4 on the Barnett management of government Formula). spending, revenue and borrowing

3.11 Scotland also has very limited ability to borrow. The Scottish Government can borrow only from the United Kingdom Treasury and for immediate cash-ﬂow purposes. Unlike local

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3.14 Monetary policy is fully reserved and competition policy, company law, conducted through the Bank of economic regulation of utilities (for England. The Bank of England sets example telecommunications), interest rates, conducts operations regulation of financial markets, in the money markets and manages consumer protection and product the United Kingdom’s foreign and trading standards; and policies exchange reserves. Its monetary affecting the labour market, policy remit is to deliver price including employment law and stability, defined by the United migration. These significant Kingdom Government’s inflation responsibilities have a considerable target of 2%.25 The inflation target is bearing on the performance and the set for the United Kingdom economy growth potential of the Scottish as a whole, and does not allow economy. variations in prices, demand, or economic cycles within the United Scotland within the current framework Kingdom. 3.17 Scotland’s lack of financial 3.15 Overall responsibility for the responsibility has real economic operation of fiscal policy and the consequences. Opportunities are public finances is also reserved to limited to set competitive policies, the United Kingdom Government. particularly taxation, and to use the The United Kingdom Government full range of fiscal and economic determines the framework for the policy levers to complement the conduct of fiscal policy and is specific strengths of the Scottish responsible for the management of economy and address any net borrowing, financial reserves weaknesses. Commitments to invest and debt. in long-term infrastructure are also constrained by fiscal rules which are Industrial policy and regulatory determined and revised by the framework United Kingdom Government and not the best interests of the Scottish 3.16 Other important economic policies economy. levers are reserved to the United Kingdom Government, which 3.18 In macroeconomic policy, the remains largely responsible for the Scottish economy is subject to a framework for economic regulation range of ‘one size fits all’ fiscal in Scotland. This includes policies which are set according to responsibility for energy policy, conditions across the United including the oil and gas sector, Kingdom as a whole, and do not aim

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to meet Scotland’s distinct needs. tax-varying opportunities provide The ability to take short-term little incentive to spend less than the measures to stabilise the economy, block grant and few opportunities to through, for example, tax cuts or spend more. More generally, the significant increases in public Scottish Government’s budget is investment is severely constrained. determined principally by changes in The Scottish Government also cannot spending on equivalent programmes opt out of United Kingdom-wide in England set by the United policies where an alternative solution Kingdom Government and is not may provide a better outcome for directly linked to the demand for Scotland.26 In times of economic public services of the Scottish difficulty, the Scottish economy is population. affected by the policies of the United Kingdom Government, and the 3.20 There is also no direct accountability Scottish Government is limited in the between the taxes raised in Scotland meaningful actions it can take at the and spending by the Scottish right time to address particular Government. In 2007/08, challenges faced in Scotland. approximately 89% of the Scottish Government’s budget was financed 3.19 As set out in the Scottish Government by a block grant.28 The United Fiscal Autonomy in Scotland: the Kingdom Government retains case for change and options for responsibility for the size of the reform the current financial Scottish budget through the settlement does not provide the allocation of this grant and the Scottish Parliament with the application of funding rules and responsibility or the necessary guidelines. mechanisms to boost Scotland’s long-term competitiveness, or 3.21 Finally, fundamental decisions such respond to short-term economic as choice of currency and the overall shocks.27 It also fails to provide a balance of taxation lie outwith the framework which maximises remit of the Scottish Parliament. The efficiency, transparency or Scottish Government cannot adopt accountability. For example, within macroeconomic policies to address the current fiscal framework, policy the weaknesses of the current initiatives which successfully United Kingdom framework, such increase economic growth in Scotland as the limitations of the financial do not produce a corresponding regulation and fiscal frameworks.29 increase in the tax revenue available to invest in Scottish public services. Any increase in tax yield would flow to the United Kingdom. The limited

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Economic and fiscal recommendations of The block grant from the United the Commission on Scottish Devolution Kingdom Government to the Scottish Government should be Macroeconomic policy reduced by an equivalent total amount. It would then be for the 3.22 The Commission recommended that Scottish Parliament to supplement macroeconomic policy remain the block grant by setting a Scottish reserved to the United Kingdom income tax and deciding the Government, although there should appropriate rate. be greater discussion between the Scottish and United Kingdom 3.24 The Commission recommended that Governments on macroeconomic a number of minor taxes (air policy.30 The Commission did not passenger duty, landfill tax, stamp propose any changes to the current duty land tax and the aggregates arrangements for monetary policy, levy) should be devolved to Scotland, the currency or financial regulation. and the Scottish Parliament should be able to legislate, with the Fiscal policy agreement of the United Kingdom Parliament, for new taxes which 3.23 The Commission’s terms of would apply in Scotland. The reference charged it with making Commission’s final report argues recommendations to improve the that these recommendations would financial responsibility of the give the Scottish Parliament real Scottish Parliament. The Commission financial accountability, and strike a recommended that a greater share balance between accountability, of the Scottish Parliament’s budget equity and efficiency. should come from devolved taxation by the Scottish Parliament and the 3.25 The Commission recommended that United Kingdom Parliament sharing the Scottish Government should be the yield of income tax in Scotland. given limited autonomy to borrow The Commission proposed that the to fund capital investment. Under Scottish Variable Rate should be the proposals, Scottish Ministers replaced by a single Scottish rate of would be able to borrow only from income tax, applying to the basic the United Kingdom Government, and higher rates of income tax. The which would set the conditions and basic and higher rates of income tax amount, therefore deciding the levied by the United Kingdom Scottish Government’s ability to Government in Scotland would be manage its finances and capital reduced by 10p. Half the estimated investment programme. income tax yield from savings and dividends in Scotland would also be assigned to the Scottish Government.

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3.26 The proposals embody important apply relatively broad brush changes principles: to the income tax system, and even then, constraints on funding prior • the Scottish Parliament should be service commitments would limit accountable for some income tax in the practical opportunities to deliver Scotland real policy autonomy. Targeted and • that this taxation should be linked to potentially redistributive measures, the level of public spending in open to the United Kingdom Scotland Government, through adjusting the • that the Scottish Parliament should be structure of the income tax regime able to levy specific taxes, directed and its interaction with the wider at particular policy objectives tax and welfare system would not • that the Scottish Government should be possible. The Commission’s be able to borrow to invest in capital recommendations would not programmes improve financial clarity and transparency in Scotland, or 3.27 However, Scotland’s budget would significantly increase the autonomy be a complex mix of a block grant, of the Scottish Parliament.31 The various devolved taxes, tax block grant – set at the discretion of assignment, tax sharing and the United Kingdom Government – reserved taxes. The United Kingdom would remain the most important Government would still collect factor in determining Scotland’s around 80% of all Scottish tax budget. revenues. Key elements of fiscal policy, such as corporation tax, VAT, 3.28 The particular taxation mechanisms national insurance contributions, proposed by the Commission could capital gains taxation, North Sea pose a risk to Scotland’s public sector revenues and the key types of and to its economic performance: environmental taxation, would for example, the Scottish remain reserved to the United Government would be heavily reliant Kingdom Government. In addition, upon one single source of taxation responsibility for key elements of rather than the range of taxes the income tax system, such as available to most governments. This personal allowances, tax thresholds, would leave Scotland’s budget more the tax rates on savings and exposed than under the current dividends, the opportunity to arrangements. There is also a risk establish tax breaks for particular that the Scottish budget could be groups such as pensioners, the self- squeezed inadvertently following employed and young artists, would technical or administrative changes remain reserved. The Scottish to the income tax system by the Government would only be able to United Kingdom Government.

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Full devolution32

3.29 More extensive reforms of fiscal 3.30 Full fiscal autonomy would make policy and responsibility have been the Scottish Parliament and Scottish proposed during the National Government responsible for raising, Conversation.33 Essentially these collecting and administering all (or propose that there should be a the vast majority of) revenues in greater linkage between the level of Scotland and the vast majority of public spending in Scotland and the spending for Scotland. A remittance taxation decided in the country, and or subvention from Scotland to the that the Scottish Parliament should United Kingdom would be required make decisions over a wider range to cover common United Kingdom of taxes, for example inheritance tax public goods and services, such as or corporation tax. These models defence and foreign affairs. The would increase the economic and range of services paid for in this way other benefits of reform, and would be subject to negotiation at provide flexibility beyond that of the time of any revised settlement. the relatively limited Commission In essence, this framework would be proposals. For example, Reform the maximum form of tax and policy Scotland has proposed that the devolution short of independence. Scottish Government and the United Kingdom Government are each responsible for raising what they spend, with taxes allocated to or shared between them.34

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3.31 In practice, a number of factors are • continued reservations: key likely to limit the policy flexibility of aspects of economic policy – such a devolved Scottish Government as financial regulation, employment even under full devolution: and competition law – may remain reserved • intra-national rules and guidelines, in particular, European Union laws 3.32 It would be difficult to devolve governing taxation policy both monetary policy effectively while between and within Member States Scotland remained part of the • rules/agreements with United United Kingdom as a common Kingdom Government to align the currency is a feature of a unified Scottish Government’s devolved state. For example, if majority policies to those of the United opinion in Scotland favoured joining Kingdom the Euro, that would not be possible within the United Kingdom.

After independence would the Scottish 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 be affected in independence? (Kirkcaldy National Conversation event, 16 May 2009)

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Independence Fiscal policy

Monetary policy 3.36 With independence, the Scottish Parliament would be fully responsible 3.33 Under independence, Scotland would for fiscal policy in Scotland, have the opportunity to choose the including the collection of all taxes monetary framework and currency and government expenditures.35 that best suited the needs of the The Scottish Government would be Scottish economy. A larger currency able to borrow freely in international union can offer some protection capital markets, subject to market from financial market speculation, constraints.36 Ensuring the although countries forgo the ability sustainability of public expenditure to tailor monetary policy to their would be Scotland’s own specific economic circumstances. responsibility, as would managing Monetary union can also benefit the national budget over the short economic integration and trade by and long-term. It would, however, be eliminating exchange rate risk. for an independent Scotland to 3.34 Scotland would continue to operate decide the taxation to be levied, the within the sterling system until a level of government borrowing and decision to join the Euro by the the level of public expenditure. people of Scotland in a referendum when the economic conditions were right.

3.35 A monetary union necessarily limits monetary policy discretion and ﬂexibility. Greater emphasis is therefore placed on ﬁscal policy to address the Scottish economy.

Where would an independent Scotland borrow from? (Kirkcaldy National Conversation event, 16 May 2009)

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3.37 Public sector borrowing and net debt Financial regulation are two of the most important and valuable tools of macroeconomic 3.39 Currently regulation of financial policy. This debt must be managed to markets is reserved and is ensure affordability and sustainability. conducted through a tripartite A Scottish Government would have agreement between the Treasury, the opportunity to establish credible the Bank of England and the fiscal rules to guide policy, drawing Financial Services Authority on the lessons and experiences of although European regulations are other countries. Recent events, and of growing importance.39 in particular, the suspension of the United Kingdom fiscal framework, 3.40Independence would provide offer some important insights. opportunities to:

3.38 Independence would allow the • create a culture to ensure the Scottish Government to enhance success of Scottish financial Scotland’s long-term competitiveness services in the future and better protect the economy • ensure market and financial stability during downturns.37 This could be for the Scottish economy and fiscal achieved, for example, through the policy creation of a Fiscal Commission • maximise political accountability suggested by the Council of • influence European Union and Economic Advisers.38 The fiscal international policy from a Scottish framework under independence perspective could make Scotland more • build on Scotland’s strengths as attractive for business by simplifying a financial centre the tax system and reducing • attract new institutions to the corporation tax. Independence market would also increase Scotland’s ability to respond to changes in the economy through policies targeted directly at the Scottish economy, for example investment in capital, both physical and human, and research and development.

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3.41 On independence, Scotland would 3.42 Independence would provide need to choose institutional opportunities for new institutions mechanisms for financial services such as a stock exchange. The supervision, to ensure an efficiently Glasgow Stock Exchange merged functioning market, financial stability with the London Stock Exchange in and consumer protection This could 1973, and subsequent attempts to be done through partnership create a Scottish Stock Exchange arrangements with the rest of the have failed. A Scottish Stock United Kingdom or through its own Exchange in an independent financial regulator, like Ireland. The Scotland could help Scottish system chosen would need to reflect companies float, and provide an the lessons of the current financial alternative approach to accessing crisis, for example greater private capital to assist growth. international co-operation in regulation of the financial services industry. An independent Scotland could play a significant role in European and international developments and build its reputation as a global financial centre.

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BOX 3: SCOTLAND’S PUBLIC FINANCES broadly in line with that of the United Kingdom and in the last three 1. There has been considerable debate years measured the current budget about Scotland’s fiscal position and balance has bettered it. the contribution made by tax revenues from North Sea oil and gas 3. The most recent Government production. Expenditure and Revenue Scotland (GERS) demonstrates that Scottish 2. Professor Alex Kemp and Linda public finances ran current budget Stephen from the University of surpluses in each of the three years Aberdeen have estimated Scotland’s to 2007/08 worth a cumulative geographical share of oil and gas £2.3 billion, when an illustrative production using the principle of the geographical share of North Sea median line, that is, that all points on revenue is included.41 In comparison, the dividing line are the same the United Kingdom ran a current distance from the Scottish and rest budget deficit in each of these years of the United Kingdom coastline. which was cumulatively worth Analysis based on this research has £24 billion. Scotland’s overall fiscal suggested that for most of the balance in 2007/08, which is the 1980s, Scotland’s estimated fiscal estimated current budget balance balance was in substantial surplus, plus net capital investment, was a driven in part by the significant deficit of £3.8 billion (2.7% of Gross growth in North Sea revenues, at a Domestic Product), similar to those time when the United Kingdom as a for other OECD countries.42 whole was building up substantial debt.40 Analysis also suggests that 4. GERS takes the current Scotland’s estimated fiscal position constitutional and fiscal framework deteriorated through the 1990s. as given. Under alternative However, since 2001/02, Scotland’s frameworks, Scotland’s fiscal public finances have recovered and position would depend on the policy its fiscal balance, including an choices of the government of the illustrative share of North Sea day and the economic climate. revenue, is estimated to have been

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BOX 4: THE BARNETT FORMULA Budget, resulted in the Scottish budget being cut by £500 million in 1. The Barnett Formula is used by the 2010/11. United Kingdom Government to determine variations to the budgets 3. The United Kingdom Government of the Scottish Government, Welsh can also unilaterally decide not to Assembly Government and Northern pass to Scotland consequential Ireland Executive. It was first increases from United Kingdom introduced for Scotland in 1978 and expenditure in a devolved policy has remained largely unchanged area (known as “formula bypass”). since, although since devolution it has For example, Scotland did not receive been routinely subject to marginal consequentials from the capital adjustments to reflect population expenditure on urban renewal changes. These are given effect associated with the London Olympics through the Statement of Funding or from the increase in prison Policy between HM Treasury and the expenditure in England in 2007, devolved administrations, which is following the recommendations of 44 re-issued after each spending review. Lord Carter’s review of prisons. 2. Under the formula, increases or 4. There have been recent proposals to decreases in the Scottish reform the method of funding the Government’s budget are determined devolved administrations. The by increases or decreases in spending Scottish Government report Fiscal in Whitehall Departments’ spending Autonomy in Scotland set out the on programmes which are devolved shortcomings of the Barnett Formula to Scotland, calculated using relative as a funding mechanism, and the population shares.43 These increases options for full fiscal autonomy for or decreases in Scottish, Welsh and Scotland. The Commission on Irish budgets are known as Barnett Scottish Devolution and the House consequentials. This means that the of Lords Select Committee on the total level of public spending in Barnett Formula both recommended Scotland is largely determined by that the current formula should be historic spending baselines, adjusted reviewed. The Welsh Assembly by reference to decisions on Government’s Independent spending elsewhere in the United Commission on Funding and Finance Kingdom and not linked to current for Wales (the Holtham Commission) economic conditions, the preferences made similar recommendations. or needs of the Scottish people. The However, no consensus has been formula also means that the Scottish reached on how an alternative system budget depends on unilateral would operate, and the United decisions by the United Kingdom Kingdom Government has indicated Government on spending in England. that it does not accept the need for For example, the implementation of reform, although the Joint Ministerial efficiency savings across the United Committee (Domestic) is currently Kingdom Government, and examining whether an adjudication reductions in Department of Health procedure could be established to baselines in England in the 2009 resolve areas of controversy. 35 A National Conversation – YOUR SCOTLAND, YOUR VOICE

BOX 5: LESSONS FROM THE CURRENT 4. A number of commentators have GLOBALECONOMICSITUATION questioned why such imbalances were allowed to develop over such a 1. The causes and the impact of the long period of time. This is based on global economic slowdown have the argument that central banks raised important, wider questions should target a broader measure of about the setting of economic policy inflation when setting interest rates, in advanced economies. This is by including asset prices or key forcing a reappraisal of policy and elements of the macro economy institutional frameworks in several such as the balance of payments.45 areas, including the role of the state; However, central banks might the scope of financial regulation; the require additional policy instruments objectives of monetary and fiscal to achieve dual objective of policy; and the arrangements for preventing asset price bubbles as international economic and financial well as controlling inflation. Mervyn coordination. King, Governor of the Bank of England, has emphasised that using Monetary policy one policy instrument to meet two objectives would involve a trade-off 2. Independent central banks have between achieving both objectives.46 been generally charged with meeting inflation targets, mainly 5. In time, the severity of the credit through interest rates. Some have crunch may lead to a re-casting of broader objectives: the United the objectives of monetary policy to States Federal Reserve promotes place greater emphasis on financial employment, stable prices and market and asset price stability. moderate long-term interest rates. Fiscal policy 3. Recent events in the global economy have led to an element of 6. The economic crisis has placed reappraisal of the objectives of significant pressure on public sector monetary policy. One of the main finances, and illustrated problems causes of the economic downturn with previous frameworks for was imbalances in the global managing fiscal policy. economy. Finance from countries with high savings rates and current 7. A common criticism of some previous account surpluses, such as China fiscal rules, such as those of the and oil-producing states, flowed into European Union, is that they lacked developed economies including the firm theoretical foundations and set United Kingdom and the United targets that were largely arbitrary. States, leading to low interest rates Other fiscal rules, such as those for and a boom in credit, house prices, the United Kingdom, while grounded equity prices and trade deficits. in economic theory, were open to interpretation and failed to ensure

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fiscal restraint and saving during losses for banks and damaged periods of stronger economic growth. confidence throughout the financial For example, between 2001 and system. Regulators did not identify 2008, the United Kingdom economy the systemic risks caused by losses grew 15% but public sector net debt in one organisation spreading to almost doubled to £593 billion.47 In others across the globe, and 2008 the United Kingdom was forced eventually the real economy. to abandon its two fiscal rules, replacing them with a temporary 10. The United Kingdom regulatory operating rule. system did not prevent: businesses becoming overextended through 8. In light of these criticisms, a number excessive leverage and risk taking; of options for fiscal reform have over-reliance on wholesale funding; been put forward: overdependence on risky products; and poor decisions over acquisitions. • fiscal rules that are legally binding. The United Kingdom Government This approach is taken in many has outlined proposed changes to American states, but its rigidity the current regulatory framework in raises wider social and economic a White Paper.48 challenges • greater flexibility when setting fiscal 11. A further lesson from the current rules. The European Union’s revised crisis has been how to regulate and, Stability and Growth Pact now if necessary, support multinational places greater emphasis on the institutions, which while economic cycle and the underlying headquartered in one area, operate health of the public finances across jurisdictions. In the case of • greater independent oversight to certain institutions, support has assess compliance with the rules and been international. For example, provide projections for the public the Belgian, Dutch and Luxembourg finances. The Council of Economic Governments provided joint support Advisers has recently advocated for Fortis Bank.49 The G20 Summit in support for such a Fiscal Commission. April 2009 agreed to establish a Financial Stability Board to extend Financial regulation regulation and oversight to all systemically important financial 9. Regulation in the United Kingdom institutions and to strengthen did not keep pace with innovation in international regulation. In June the financial markets. Hence the 2009 the European Council agreed disruption in sectors of the financial to establish a European System of services market that were poorly or Financial Supervisors and a new unregulated, including hedge funds European Systemic Risk Board to and derivatives. Exposure in these implement the international model. complex instruments led to major

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SOVEREIGNWEALTHFUND

3.43 An independent Scotland could 3.45 A Scottish sovereign wealth fund create a sovereign wealth fund, would invest a proportion of based on Scotland’s oil and gas the revenues from oil and gas reserves, to provide an effective production over the long term, mechanism to insulate the economy creating a permanent source of in times of economic instability and revenue. The fund would support invest for long-term sustainability. macroeconomic stabilisation and Since 1980/81 approximately 90% of address unexpected short-term United Kingdom oil and gas spending pressures, safeguarding revenues have been generated from Scotland’s fiscal position. The fund an area that could be classified as could invest in low carbon sources comprising Scotland's geographical of energy production, providing share of the current United Kingdom Scotland with new sustainable Continental Shelf. Substantial North sources of energy. Sea oil and gas reserves are yet to be extracted, and their value is likely 3.46 The Commission on Scottish to increase. The management of Devolution considered devolution of North Sea reserves would therefore some element of oil and gas revenues be an important element of to the Scottish Government, but, Scotland’s public finances under a based largely on fluctuations in oil revised fiscal framework.50 and gas prices, concluded that this would expose the Scottish budget 3.44Under the current constitutional to possible revenue fluctuations.52 settlement, all revenues from North However, the Commission’s Sea oil and gas production go to the Independent Expert Group United Kingdom Government and suggested that the creation of an oil have been used to fund government fund can enhance intergenerational expenditure or to lower taxation. An equity, protect a country’s capital alternative approach is demonstrated stock over time and mitigate the by the Shetland Islands. Since the volatility of oil revenues.53 1970s, Shetland Islands Council has been able to levy a royalty over every barrel of oil landed at Sullom Voe and invested the revenue in an oil fund. The fund is now estimated to be worth £180 million.51

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BUSINESSANDENTERPRISE

Current position

3.47 Current devolved responsibilities 3.48 However, many of the key policy are used to support enterprise and areas that contribute to enterprise business in Scotland,54 and to and business remain reserved, for support the Scottish Economic example company law, corporate Recovery Plan. insolvency, competition and consumers,55 health and safety and employment rights. Under these arrangements, Scotland's growth has remained behind that of the United Kingdom in nine out of the past 10 years.56

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Enterprise and business Health and safety recommendations of the Commission on Scottish Devolution 3.52 The Commission recommended a closer relationship between the 3.49 The Commission concluded that a Health and Safety Executive (HSE) separate macroeconomic policy for in Scotland and the Scottish Scotland would affect what they Parliament.58 The Commission found saw as the benefits of the economic no reason in principle why health Union.57 The Commission did not and safety (or elements of therefore propose any alterations to enforcement) could not be devolved, the Scottish Parliament and the but recommended that the current Scottish Government’s responsibilities reservation should continue. affecting business and enterprise. 3.53 This recommendation recognised 3.50The Commission did not recognise the importance of devolved matters or discuss the historic under- to health and safety in Scotland and performance of the Scottish economy would give some opportunity for compared to the United Kingdom as Scottish interests and factors to a whole, nor the European influence HSE policy and operations. dimension to economic Union, which However, devolution beyond the guarantees the free flow of goods, Commission’s proposal would services and people between provide clearer enforcement and Scotland, the rest of the United remove boundaries to improve Kingdom and other member states. consistency.

3.51 The Commission did make recommendations on related issues: health and safety and insolvency.

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Insolvency

3.54 The Commission’s sole recommendation was that the United Kingdom Insolvency Service, with input from the Scottish Government, should be responsible for the rules for insolvency practitioners on both sides of the border.59

3.55 As the Commission recognised, devolved Scots law governs much of the substance and procedure for insolvency in Scotland. By incorporating these matters into United Kingdom legislation, this recommendation would increase complexity and work against the purpose of devolution.

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3.56 There are a number of important areas of business and enterprise policy that could be devolved beyond the recommendations of the Commission on Scottish Devolution: employment60 and competition law; regulation of companies; and health and safety. The Scottish Parliament and Government could be given responsibility in these areas to make Scotland an attractive environment for business and to promote sustainable economic growth.

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Corporation tax

3.57 A major policy lever that could be the rest of Spain, and to put in place devolved is corporation tax. The more competitive allowances for tax burden on small businesses in particular growth enhancing Scotland has been substantially activities, such as investment in reduced within existing devolved research and development. competence through the Small (see Box 7 on the Basque Country). Business Bonus Scheme. A more competitive corporation tax could Independence boost the economy, including foreign investment, research and 3.58 Under independence Scotland development, and the siting of would have responsibility for the corporate headquarters. Corporation full range of policies to encourage tax could be adjusted for small and enterprise and business growth, medium sized companies, greater and the opportunity to address the tax allowances could be given for factors which have contributed to targeted activities and the the economic under-performance administrative process could be of the last 30 years. simplified. The United Kingdom (and hence Scotland) has the eighth 3.59 Scotland would continue to be highest corporation rate in the subject to international rules, such European Union; a number of as European Union directives on European countries of comparable competition and tax harmonisation. size to Scotland have already However, Scotland would act as an introduced significantly more independent state in its relationship competitive corporation tax rates. with the international economic, Within a full devolution framework, financial and business community, the Basque Country has used its and would have a full voice in responsibility for corporation tax to Europe. introduce a lower statutory rate to

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Competition and consumers International trade

3.60Recent research indicates a lack of 3.62 Scotland has long been an outward- competition in markets in Scotland, looking trading nation, with strong with high prices relative to the global connections. Scottish United Kingdom in areas like business organisations work across transport, utilities, catering and the globe to increase international leisure services.61 Independence trade revenue through exports. They would allow future developments in also seek to increase investment in competition and consumer policy to Scotland and promote Scotland be based on Scottish political, social internationally as a vibrant place to and economic interests, for example live, work and do business with. securing or sustaining comparative advantage. Responsibility for 3.63 Scotland’s biggest trading partner is competition in Scottish markets, the rest of the United Kingdom, with combined with an enterprise trade worth £26.1 billion in 2007.63 oriented fiscal policy, would: On independence Scotland and the rest of the United Kingdom would • encourage businesses to improve retain common interests and ties their internal efficiency and reduce through shared history, geography costs and trade links. As a full member of • incentivise early adoption of new the European Union, Scotland would technology and other forms of continue to have access to its innovation markets. Independence would • increase the international enhance the opportunities for competitiveness of Scottish Scotland’s wider international trade businesses and products and investment, underpinned by foreign and fiscal policies dedicated 3.61 Scotland’s geography raises issues to Scotland’s political, social and for consumers in the islands or in economic interests. For example, rural areas, who enjoy far fewer Scotland’s overseas representation choices in the products and services is likely to focus on business and they use.62 Consumer policy in an enterprise, rather than the projection independent Scotland could be of power. developed in the context of a set of key principles such as access, choice, safety, information, fairness, representation, redress, and education.

44 The event in MelroseA National Conversation – YOUR SCOTLAND, YOUR was VOICE attended by a good cros section of the community and the open format led to informative discussion.

Tax collection

3.64 The overall tax burden is central 3.65 A simpler tax system in Scotland to the competitiveness of the tax would reduce costs for businesses system, but the costs of and government, reduce incentives compliance are also important. for tax avoidance and non- A study commissioned by HM compliance, and potentially Revenue and Customs in 2006 increase revenue.65 Reporting estimated that administration of of statutory accounts and tax United Kingdom corporation tax calculations could be unified for cost business £608 million, 70% of smaller companies. The smallest which was from Small to Medium companies might be assessed for Enterprises.64 tax on cash flow rather than accounting profit. Business leaders could be directly involved in the design of revised tax, regulation and enterprise systems for Scotland, avoiding the uncertainty surrounding recent United Kingdom announcements on capital gains tax.

45 A National Conversation – YOUR SCOTLAND, YOUR VOICE

BOX 6: SCOTLAND’S ECONOMY

1. Scotland has a diverse and open knowledge-based economy that provides employment for around 2.5 million people and generates total annual economic output of over £100 billion.66 In addition, Scotland’s offshore natural resources, including oil and gas, generated an estimated annual output of over £30 billion in 2008.67

2. Scotland’s economy has adapted well in recent decades to the forces of globalisation, and the structure of Scotland’s economy has changed signiﬁcantly. In common with many industrialised countries, the manufacturing sector has declined and the service sector has grown. In 1981, 479,000 people in Scotland were employed in the manufacturing sector; this had fallen to 220,000 in 2007. In contrast, between 1981 and 2007, employment in the service sector rose by 587,000, more than compensating for the fall in manufacturing employment.68 The service sector now accounts for around 75% of employment in Scotland.69 Scottish ﬁrms also continue to maintain and develop global competitive strengths in the manufacturing and engineering sectors through innovation and commercialisation of research.

3. The Scottish economy remains diversiﬁed with a number of sectors contributing to output, employment and exports. Scotland’s goods and services are exported across the globe. Beyond the United Kingdom, the European Union and North America are the main export markets for Scottish ﬁrms.70

4. To expand Scotland’s areas of international comparative advantage, the Government Economic Strategy recommends building critical mass in a number of key sectors with high growth potential and the capacity to boost sustainable economic growth. The Scottish Government continues to support enterprises across Scotland in other sectors where action can be taken to overcome weaknesses in markets, and where particular businesses can make a signiﬁcant contribution to the Scottish economy.

46 A National Conversation – YOUR SCOTLAND, YOUR VOICE

5. The energy sector makes a substantial contribution to Scotland’s economy. In 2007, the energy sector employed directly 40,700 people, accounting for 23% of the total people employed in the energy sector in the 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 European headquarters of global companies like BP and Shell. The industry body, Oil and Gas UK, estimates that in total the sector supports around 195,000 jobs in Scotland through its impacts on the supply chain, export activities and employee expenditure throughout the economy. Since 1976/77, production from North Sea oil and gas ﬁelds has generated more 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 potential to 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 new technologies, means that it is well-placed to be a major European centre for 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’s largest financial services centres, and many of the world’s major financial organisations have offices there. The industry employed directly 91,500 people in 2007.73 Global turmoil in financial markets experienced since 2007 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 make announcements of expansion and investment plans.

8. Food and drink (including agriculture and ﬁsheries) is a key sector in the Scottish economy. The contribution to economic output from food and drink manufacturing was £3.2 billion, of which over half was from the manufacture of beverages.74 The spirits sector within drinks manufacturing, especially whisky, forms an important part of the sector’s contribution to the Scottish economy in terms of value added and export potential. Agriculture and ﬁshing provide further economic contribution along with the wider food and drink supply chain.75

47 A National Conversation – YOUR SCOTLAND, YOUR VOICE

9. Tourism provides an important source of expenditure in Scotland’s economy, and helps generate economic activity in some of the more rural and fragile areas of Scotland, sustaining communities economically and socially. Around 14.6 million tourists visited Scotland in 2008, and total expenditure on tourist trips stood at £4 billion.76

10. The creative industries make an important contribution to Scotland’s economy. Scotland’s creativity has a strong international reputation. Scottish art, ﬁlm, fashion, music and literature is recognised throughout the world, as are the design and computer gaming industries. Creative industries have grown over the past 10 years in Scotland, and they are estimated to contribute £2.4 billion to economic output and account for 5% of Scotland’s total exports.77

11. The Life Sciences sector in Scotland is diverse, encompassing a range of industries including biotechnology and pharmaceutical companies, contract research organisations (CROs), medical device and diagnostic companies, along with specialist suppliers and support organisations. This sector employs over 30,000 people directly and indirectly in more than 600 organisations, with an annual turnover exceeding £3 billion and economic output of £1.3 billion.78

12. Scotland’s strong academic base is evidenced by the size, scope and international standing of Scottish higher education institutions, with four (Edinburgh, Glasgow, St Andrews and Aberdeen) among the world’s top 150 universities.79 Directly employing some 35,159 full-time equivalent staff and teaching some 224,855 students, Scottish universities had a total turnover of £2.48 billion in 2007/08.80 Scotland has the highest ratio of cited research papers to Gross Domestic Product in the world and the impact of Scottish research is ranked second in the world, behind only Switzerland.81 Scottish universities attracted 33,520 international students in 2006/07, at 14.6% of the student body third in the Organisation for Economic Cooperation and Development behind Australia and the United Kingdom.82

13. Scotland has a diverse economy which plays a dynamic role in the modern global economy. Scotland has responded to shifting global patterns to ensure that its workforce has the right skills and that its business infrastructure remains competitive.

48 A National Conversation – YOUR SCOTLAND, YOUR VOICE

BOX 7: CORPORATION TAX IN THE BASQUE COUNTRY83

1. The Basque Country enjoys considerable ﬁscal autonomy, with wide ranging responsibilities over the collection of tax receipts and government expenditure, while remaining part of Spain. Its GDP per capita is approximately 30% higher than the Spanish average, and at the start of 2009 the Basque Country Government enjoyed a higher credit rating than the Spanish Federal Government.

2. The ﬁscal relationship between Spain and the Basque Country is governed by the Concierto Económico, or Economic Agreement consistent with the Statute of Autonomy (1977). Under this agreement, the Basque Country Government has the authority to vary most forms of direct taxation including income tax, corporation tax and taxation on wealth and capital gains, and has introduced a headline corporation tax rate of 32.5%, compared to the Spanish rate of 35%.

3. However, the Economic Agreement also contains a number of general principles which are designed to ensure a degree of harmonisation between the Basque tax system and that in the rest of Spain. Constraints therefore remain on the policy levers available to the Basque Country Government.

49 A National Conversation – YOUR SCOTLAND, YOUR VOICE

MIGRATION

Current position

3.66 Demographic change presents 3.68 Immigration is currently reserved Scotland with challenges of growing to the United Kingdom Parliament. the population and addressing the For migrants from outside the structure of the Scottish population, European Economic Area, there is in particular those of working age. a points-based managed migration Population growth is a key driver of system which takes account of economic performance and Scotland qualifications, age, salary, and has a population growth target to language skills. For skilled migrants match average European population there is also a shortage occupation growth over the period from 2007 list. Some elements of the system to 2017.84 The average age of the reflect Scotland-specific Scottish population is predicted to circumstances, such as recognition increase, with the working age of Higher National Diplomas as a population decreasing and a greater qualifying criterion, and a separate ratio of pensioners to persons of Scottish shortage occupation list. working age.85 However, the points based system operates at a United Kingdom level, 3.67 The Scottish population is projected with no substantial regional to decline in the mid-2040s, with the variations, which makes attracting working age population projected to the required number of migrants to decline after 2020. The structure of Scotland more challenging, as the Scottish population is projected Scotland has different population to change more rapidly, with older needs from most other parts of the people accounting for a relatively United Kingdom. higher share of the Scottish population.86 The dependency ratio – the ratio of persons aged under 16 or over pensionable age to those of working age – is projected to rise from around 60 per 100 in 2008 to 68 per 100 in 2033.

50 A National Conversation – YOUR SCOTLAND, YOUR VOICE

Migration recommendations of the overall United Kingdom immigration Commission on Scottish Devolution policy, but give it no formal role. The Commission would not give Scotland 3.69 The Commission recommended responsibility for its migration retaining the current reservation of requirements for either economic or immigration, but that active demographic reasons, as these would consideration should be given to be subject to policy imperatives in agreeing sustainable variations to other parts of the United Kingdom. reﬂect the particular skills and Experience elsewhere shows that demographic needs of Scotland. The greater responsibility for Scotland to Commission concluded that freedom determine its own migration policy of movement and employability need not have the impact on the rest argued for one system throughout of the United Kingdom suggested by the United Kingdom. However, the the Commission. majority of submissions the Commission received on this issue Independence called for greater ﬂexibility and more responsibility for Scotland 3.71 An independent Scotland would have within an overall United Kingdom responsibility for its own migration framework. Sub-state migration policy and its borders. Scotland policies have been established faces different issues from the other successfully in a number of countries, parts of the United Kingdom, and including Australia and Canada. migration policy could be tailored to address the economic challenges of 3.70 The Commission’s recommendation is demographic change. Immigration a variation on existing arrangements, could also help address skills which allow Scotland to contribute to shortages in Scotland’s labour market.

We really applaud and support the United Kingdom Home Office’s points based system for immigration. But it is very unfortunate that it is not taking into consideration the regional differences in immigration attractions in England versus Scotland. Why not do a regional variation? (Edinburgh CEMVO event, 22 April 2009)

51 A National Conversation – YOUR SCOTLAND, YOUR VOICE

3.72 Many nations use migration policies 3.74 Scotland’s immigration system to address demographic problems, should also support the country’s as well as addressing skills commitment to human rights. Like shortages. Both Canada and immigration, asylum policy is Australia give priority to potential currently the responsibility of the immigrants with particular skills and United Kingdom. On independence, experience. Quebec has its own Scotland could take into account immigration policies, established economic and demographic needs, under the Canada-Quebec Accord as well as human rights and justice, on Immigration, which requires, when considering asylum amongst other things, that applications. Responsibility for the immigrants can speak French or immigration and asylum system English. A Scottish migration would allow Scotland to provide scheme could both place particular greater security to asylum seekers importance on required skills and awaiting the outcome of their give priority to immigrants who application and ensure a fairer assist in meeting the demographic and more humane asylum system. challenges, for example young people or families with children.

3.73 Citizens of European Union member states are entitled to freedom of movement within the single market. As a full member of the European Union, Scottish borders would remain open to European Union nationals, just as Scots are free to move throughout the European Union.

52 A National Conversation – YOUR SCOTLAND, YOUR VOICE

BROADCASTING public service broadcasting in Scotland, and identiﬁed a number of 3.75 Broadcasting is a key part of areas where viewers felt that there national life, expressing Scottish should be a better choice of culture to domestic and international programming relevant to Scotland.87 audiences. The broadcasting industry also makes an important Broadcasting recommendations of the contribution to the economy. Commission on Scottish Devolution

Current position 3.78 The Commission made one recommendation relating to 3.76 Broadcasting is a reserved matter. broadcasting: that the appointment All decisions about broadcasting of the Scottish member of the BBC which affect Scotland are taken by Trust should be the responsibility of the United Kingdom, including Scottish Ministers, subject to the related matters such as the normal public appointments process. television licence fee, broadcasting This recommendation could be spectrums, funding and regulation. implemented immediately without the need for legislation. Although it 3.77 In 2008, only 3.7% of the BBC’s would not directly affect network television programmes broadcasting in Scotland, the were made in Scotland, while STV is proposal would give the Scottish now obliged to produce only 1.5 hours Government inﬂuence over parts of of non-news programming per week, the broadcasting framework with a a reduction from three hours prior particularly Scottish element. to January 2009. The Scottish Broadcasting Commission expressed strong concerns about the state of

53 A National Conversation – YOUR SCOTLAND, YOUR VOICE

Why is broadcasting a reserved issue? I ask specifically because I am interested in Gaelic broadcasting where the broadcasting side is reserved and the Gaelic side is devolved. This causes some odd situations. (Dundee Summer Cabinet, 30 June 2009)

Full devolution 3.81 The majority of funding for public service broadcasting in the United 3.79 Further devolution would provide Kingdom comes from the TV licence opportunities for Scotland to have fee (for the BBC) and advertising. responsibility for different parts of The United Kingdom also provides its broadcasting framework, while funding of £98 million for S4C in remaining within the overall United Wales from general taxation Kingdom framework, including the revenues, in addition to the BBC and Ofcom. Examples of such programming subsidy provided by an arrangement include Catalonia, broadcasters which is worth which is responsible for Catalan approximately £25 million. Further broadcasting, while the Spanish devolution should be accompanied government is responsible for by a negotiated arrangement for Spain-wide broadcasting.88 funding public service broadcasting in Scotland. Scotland could, for 3.80Additional responsibilities could example, be allocated a share of TV include: new public service licence revenues and revenues broadcasting bodies, such as the generated from licensing broadcasters Scottish digital network and other telecommunications recommended by the Scottish operators to use spectrum. Broadcasting Commission; ensuring that Scottish culture and interests were better represented through television and radio programming; responsibility for appointments of board members of MG Alba (the organisation responsible for the output of BBC Alba). Under further devolution Ofcom could be charged with taking the lead in setting commercial, public service networks nations and regions obligations to Scotland and ensuring they were met.

54 A National Conversation – YOUR SCOTLAND, YOUR VOICE

55 A National Conversation – YOUR SCOTLAND, YOUR VOICE

Independence 3.85 Independence would also provide the opportunity to rationalise 3.82 Independence would mean full channel 3 licensing arrangements. responsibility for broadcasting in Following a merger between the Scotland. Impartiality and political Border and Tyne Tees local news independence of broadcasters, service, viewers in the South of including a national public service Scotland now receive ‘local’ evening broadcaster (based initially on the news programmes which are existing staff and assets of BBC broadcast from Gateshead.89 Scotland), would remain a key Independence would make it easier principle. There would be various to establish licensing arrangements options available for the funding of a which would better serve Scottish Scottish national broadcaster. This viewers, including a single would ensure that an independent nationwide licence, or the creation Scotland had a high-quality, of further licences to allow more impartial national public service regional broadcasting. broadcaster which reﬂected Scottish life, culture and interests. Broadcasting industry

3.83 An independent Scotland should not 3.86 The Scottish broadcasting industry lose the range and quality of employs 2,400 people and is worth broadcasting options received around £111 million to Scotland’s currently, and indeed should seek an economy. Independence would enhanced broadcasting service. For provide opportunities to develop example, Scotland should continue to the industry further. The Scottish access BBC and other broadcasters Government could take a range of from the United Kingdom and there steps to attract inward investment, should be no obstacles to Freeview, as have countries like Ireland and satellite and cable services being Canada. It is likely that this would in available in Scotland on a similar turn generate further investment in basis to now. the Scottish broadcasting industry, including further spending on 3.84 Independence would allow a programming. Additional investment regulatory system that prioritised of this kind would bring improved issues of particular importance for choice for Scottish viewers and Scotland, such as making available would allow broadcasting, along additional spectrum for new with the other creative industries, to channels. A Scottish broadcasting make a signiﬁcant contribution to regulator would also safeguard the economic growth in an independent quality and impartiality of Scottish Scotland. public service broadcasters within European regulations.

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CONCLUSION

3.87 Addressing Scotland’s historic 3.88 Some of these matters could underperformance, and encouraging be devolved within the United sustainable economic growth is one Kingdom, for example aspects of of the key challenges that face the the taxation system or employment nation. A number of different policy law. However, any level of areas contribute to this goal, but devolution would leave Scotland many of the major mechanisms open within the overall macro-economic to independent states – economic policies of the United Kingdom and and ﬁscal policy, monetary policy, its international position on international trade – are currently economic matters, especially in the reserved to the United Kingdom European Union. Government. 3.89 Independence would give Scotland full responsibility for its own economic performance, and for all the policy mechanisms to encourage the optimum level of development.

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58 A National Conversation – YOUR SCOTLAND, YOUR VOICE

CHAPTER 4

AFAIRERSCOTLAND

OVERVIEW

4.1 Scotland has a strong tradition 4.4 The Commission on Scottish of striving for a fairer and more Devolution recognised the close inclusive society, combining equality relationship between devolved of opportunity to thrive and excel, policy, for example on poverty and with support for those in need. housing, and the reserved benefits system. The Commission 4.2 There are a number of important recommended a formal but very areas of government policy that limited role for the Scottish should build on those traditional Parliament and Government in Scottish values. Welfare support these matters. Devolution of greater and benefits should be responsive to responsibility for benefits would the specific needs of individuals and allow more integrated policy to the country: its economy, housing, tackle poverty in Scotland, but geography and demographics. would also require devolution of People should be supported back taxation, and full financial into work, and those who cannot responsibility for Scotland. work should not be abandoned to a lifetime of poverty and struggle. 4.5 With independence Scotland would Those who suffer from disadvantage be responsible for addressing all of or discrimination should be these issues, and for designing and protected. implementing a taxation and benefits system integrated with 4.3 Under the current devolution other policies on skills, education settlement, the major systems and family support to address issues for providing social justice – the of poverty and exclusion. Scotland taxation and benefits systems – would also be responsible for are reserved to the United Kingdom, ensuring that all its citizens are as is the legislation to protect and treated fairly and equally, and enjoy promote equalities. the full protection of the law.

59 A National Conversation – YOUR SCOTLAND, YOUR VOICE

WELFAREANDBENEFITS 4.8 In important areas Scotland cannot design or deliver policies to address Social inclusion and poverty in Scotland its social needs. For example, Scotland cannot determine eligibility 4.6 Around one in six people in Scotland for, nor set the levels of, benefits, are living in relative poverty – that is, and cannot supplement existing their income is so far from the norm United Kingdom schemes for that they face difficulties particular social objectives – for participating effectively in society. example supporting students or This means that around 840,000 providing child care – without the Scots live in poverty, including recipient risking the loss of existing 200,000 children and 200,000 United Kingdom benefits or tax pensioners.90 Poverty levels in credits. Equally, Scotland cannot opt Scotland are better than the United out of changes by the United Kingdom as a whole, but the United Kingdom Government which are not Kingdom is above the average for appropriate for Scotland, for other European Union countries for example broad market areas for child and pensioner poverty.91 Housing Benefit not suitable for Inequalities in health, education and Scottish conditions.93 Scotland is employment opportunities are also constrained in developing passed from one generation to devolved policies where there are another: children who grow up in connections with the reserved poverty are more likely to have benefit system, for example local children who suffer from poverty, government taxation. The United repeating the cycle.92 Kingdom Government withdrew Attendance Allowance from those Current position receiving free personal care, adding £30 million a year to the costs borne 4.7 Scotland is responsible for a by the Scottish Government. number of services which influence employment prospects and life chances, including education, training, skills, healthcare and childcare. However, the major mechanisms for addressing poverty – social security benefits, tax credits, the minimum wage and employment support – are reserved to the United Kingdom Government.

60 A National Conversation – YOUR SCOTLAND, YOUR VOICE

Welfare recommendations of the 4.10 The Commission recommended: Commission on Scottish Devolution • Scottish Ministers, with the agreement 4.9 The Commission concluded that the of the Scottish Parliament, should be welfare system should continue to be able to propose amendments to the reserved, as it ensures common social Housing Benefit and Council Tax citizenship throughout Great Britain, Benefit systems in Scotland connected and the complexity of the social to devolved policy security system could lead to • a formal consultation role should be difficulties in devolving any one built into the commissioning process element. for welfare to work programmes to take into account the views of the Scottish Government • the Deprived Areas Fund should be devolved to the Scottish Parliament • the United Kingdom Government should explore devolving the discretionary elements of the Social Fund

61 A National Conversation – YOUR SCOTLAND, YOUR VOICE

4.11 These recommendations recognise • benefits, tax credits and employment the close link between devolved support systems working in policies and the reserved benefits harmony to support those who can system, and embody an important move from poverty through work, principle: that the Scottish with financial benefits for working Government has a legitimate interest that are significant and sustained in the development and delivery of • transitional support into employment these policies in Scotland. However, should be transparent, responsive, the recommendations do not give quick and effective, so successful Scotland a substantive role in employment is not undermined by decision making. There is no financial uncertainty obligation on the part of the United • for those that cannot work, benefits Kingdom Government to accept must provide a standard of living Scottish proposals, even when these which supports dignity, freedom and have been agreed by the Scottish social unity Parliament. 4.14 It would be possible for Scotland to 4.12 Devolution of the Deprived Areas develop a devolved benefits system Fund would enable Scotland to plan within the United Kingdom. In and spend in a more integrated and Northern Ireland social security, strategic fashion, but there is no child support and pensions are commitment to a Deprived Areas devolved and there is a separate Fund beyond 2011. Similarly, National Insurance Fund. devolving elements of the Social Fund would present opportunities 4.15 However, for full devolution of the to align the funding better with benefits system, there would need Scottish priorities. to be appropriate levels of fiscal autonomy in Scotland. It would be Full devolution difficult for Scotland to take responsibility for the levels of and 4.13 Full devolution would allow Scotland eligibility for benefits without being to develop a benefits system guided responsible for any resulting costs, by a number of key principles to or being able to take advantage of eradicate poverty and reduce income any savings. In turn, this would inequalities:94 require Scotland to have substantial responsibility for raising its own • a fair and transparent benefits taxes and designing a system to meet system, sympathetic to the both welfare and wider economic challenges faced by people living in needs.95 This seems unlikely while poverty and providing confidence in the United Kingdom has a one-size- the security of their income fits-all welfare system.96

62 A National Conversation – YOUR SCOTLAND, YOUR VOICE

Independence of care and guarantees of income; incentives to earn and work; and the cost to public finances. These all need to be balanced with the economic How do you propose to circumstances and the priorities and fund pensions, national needs of the nation at any given point. For example, the support that insurance, benefits etc might be offered to home owners during a recession might differ from on independence? that offered at other times. (Haddington National Conversation event, 28 September 2009) 4.19 The welfare system of an independent 4.16 Independence would give Scotland Scotland could also be guided by the responsibility for the taxation and key principles to eradicate poverty. benefits system. On independence For example, a new system of benefits, tax credits and the state benefits would avoid poverty traps, pension would continue to be paid where little or no financial benefit is as now in an independent Scotland. gained from employment because It would be for future Scottish means-tested benefits are administrations to deliver withdrawn. Those attending training improvements to the system, courses or doing voluntary work to designed for Scottish needs. improve their employment prospects would not be penalised by losing 4.17 In both 2006/07 and 2007/08, a benefits. Reductions in benefits to smaller percentage of government reflect people’s improved revenue was spent on welfare in circumstances would be set to match Scotland than in the United Kingdom policy objectives, and integrated with as a whole: spending on social the overall taxation system. protection accounted for 34% of total government revenue in the 4.20The welfare system could be United Kingdom, but 33% in integrated and different forms of Scotland, including a geographic support be made complementary. share of North Sea revenues.97 For example, free child care or personal care would not result in the 4.18 A range of factors would affect the loss of a corresponding cash benefit. design and delivery of a taxation Similar decisions could be made on and benefits system for an payments for a particular purpose – independent Scotland, including the for example to support children overall effect on the economy; the being cared for by relatives – which balance between reasonable currently result in the loss of other taxation and minimum standards payments to support income.98

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4.21 An independent Scotland could HOUSINGANDREGENERATION develop its own flexible approaches to social issues, such as preparing Current responsibilities people to return to work, or bringing together local and national services 4.23 Many responsibilities for housing and to meet the different needs of regeneration policy are devolved, different individuals. A one-size-fits- including funding, land-use planning, all rule-based system cannot take tenancy rights, housing quality, account of the diversity of property law and regulation of individuals’ wishes and needs. For landlords. Significant progress has example for some lone parents a been made since devolution, voluntary approach to removing including homelessness legislation, barriers to employment may well measures to improve the condition be more appropriate than current of housing stock in the social and United Kingdom proposals for private sectors, and introducing the obligatory skills training when first national mortgage support children reach a certain age. scheme for homeowners at risk from repossession. Scotland’s housing 4.22 A key element of the welfare system differs from the rest of the United is that people are able to understand Kingdom: there is still less private easily what benefits they are entitled housing and a higher proportion of to, and how to access the support socially rented stock; housing has available. Greater integration in an been more affordable than the independent system would improve United Kingdom average and the people’s confidence and their housing market less volatile; understanding of their entitlement. Scotland’s climate affects approaches This would address the current level to energy efficiency and fuel of take up, estimated at 78-88% for poverty; and there is a different income support; 61-70% for pension legal system. credit; 80-87% for housing benefit; 62-68% for council tax benefit; and 52-60% for job-seekers allowance.99

What would the Scottish Government do to address carers’ problems financially, were we to have independence? (Melrose Summer Cabinet, 28 July 2009)

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4.24However, important policy Housing Benefit and Council Tax mechanisms such as inheritance tax, Benefit when these are connected Stamp Duty and social security to devolved policy changes system are reserved to the United Kingdom. The distinctive features of Stamp Duty the Scottish housing landscape mean that an approach which may 4.26 Responsibility for Stamp Duty would be appropriate in other parts of the be a useful addition to Scottish United Kingdom will not necessarily housing and economic policy. deliver for Scotland. Applying Stamp Duty rates to individual properties within bulk Housing recommendations of the purchases could encourage Commission on Scottish Devolution institutional investment in the private rented sector. Stamp Duty could be 4.25 The Commission recommended: used to achieve wider objectives such as incentivising energy efficiency. • that Stamp Duty Land Tax should be Stamp Duty holidays could relieve devolved to the Scottish Parliament, stressed markets. However, if only with a corresponding reduction in limited taxes are devolved, it would the block grant not be possible to adjust other taxes • Scottish Ministers, with the or borrow to compensate should the agreement of the Scottish base of those taxes fluctuate, as Parliament, should have scope to Stamp Duty has recently. propose new arrangements for

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Housing beneﬁt Taxation

4.27 The wide array of social security 4.29 Scotland has experienced a lack of benefits and tax credits available housing, particularly affordable in the United Kingdom are housing. One fiscal mechanism that interdependent. Housing benefit is a might address this issue in rural passport to other benefits such as areas is Inheritance Tax. The income support. Changes to any beneficiaries of a will often need to element of housing benefit are likely sell quickly to pay the Inheritance to impact the coherence and the Tax, moving stock from the rental cost of the overall benefits system. market and reducing options for The role recommended for Scotland those who cannot or do not want to may be more apparent than real. buy. This problem affects Scotland disproportionately because of the Independence high proportion of rural areas compared to the rest of the United 4.28 As in other areas, housing and Kingdom. Responsibility for regeneration policy would benefit Inheritance Tax and other taxes most from the increased fiscal and would allow Scotland to address economic responsibilities that this issue. independence - or full devolution - would bring to Scotland. Housing, Funding housing policy particularly the social rented sector, also relies heavily on Housing 4.30There are two distinct streams of Benefit to fund initiatives and housing policy being implemented responsibility for this would assist in Scotland, one set at a United integrated and focused decision Kingdom level through the benefits making in Scotland. system and one set at a Scottish level. For example, the Scottish Government subsidises the social housing sector by providing development grants to build new low-cost homes for rent. Housing benefit currently meets about two- thirds of the total rents in the sector, or £1 billion a year. Any significant changes to housing benefit affect both tenants and the devolved policy on investment in social housing in Scotland. As housing benefit decisions are taken for the United Kingdom as a whole, Scotland has little influence on the overall balance between these sources of funding. 66 A National Conversation – YOUR SCOTLAND, YOUR VOICE

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) 67 A National Conversation – YOUR SCOTLAND, YOUR VOICE

How can the government truly facilitate an equal, equitable Scotland in which racial equality is maintained? (Edinburgh CEMVO National Conversation event, 22 April 2009)

EQUALOPPORTUNITIES 4.33 The Equality and Human Rights Commission is a United Kingdom Current position body operating in Scotland with a Scotland Committee and Scottish 4.31 Equal opportunities is largely Commissioner. It is a statutory body reserved to Westminster. There are with responsibility for equality and two exceptions which enable human rights, but only reserved Scottish Ministers to: human rights matters in Scotland. The Scottish Human Rights • encourage equal opportunities Commission has responsibility for • place duties on Scottish public devolved human rights matters. bodies, and cross-border bodies with responsibility for devolved Equality recommendations of the matters, requiring them to make Commission on Scottish Devolution arrangements to ensure they are operating within the law 4.34The Commission did not recommend new arrangements. However, the 4.32 Since devolution, Scottish Ministers Commission’s recommendation that have used these responsibilities to the Scottish and United Kingdom advance equality in Scotland. It has Parliaments discuss and agree also been possible to pursue common social rights could different policies within the context potentially include reference to of the legal framework. For example, equality. equality provisions have been incorporated into Scottish legislation Full devolution on housing, education and local government. The Scottish Parliament 4.35 Evidence to the Commission has introduced legislation on hate advocated devolution of equal crime. The Scottish Government’s opportunities, as responsibility for policy on improving community equality legislation should not be relations with asylum seekers differs separate from key devolved policies from that of the United Kingdom such as health, education, housing, Government. Scottish Ministers have family law, mental health, local placed a duty on Scottish public government and justice. There are authorities to report on equal pay. particular differences in Scotland’s demographics and geography and its experience of discrimination and inequality, such as sectarianism.

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Devolution of equal opportunities CONCLUSION would allow legislation on equality as it applied to devolved matters. 4.38 Under the current devolution Equality legislation passed in settlement the major tools to Scotland would not apply to promote a socially just society remain reserved matters such as reserved to the United Kingdom. employment, and consideration While it would be possible to would need to be given to areas devolve to Scotland responsibility where there are reserved and for aspects of the benefits system, devolved responsibilities, such or a role in United Kingdom policies, as transport. full devolution would require Scotland to take responsibility for its Independence finances and its taxation system to ensure an integrated approach to 4.36 Scotland is an increasingly diverse those requiring support. The nation and its people have differing recommendations of the Commission needs and experiences. Taking on Scottish Devolution fall far short of responsibility for equal opportunities this level of competence for Scotland. within an independent Scotland would allow equality legislation to 4.39 With independence Scotland could be promoted and enforced. Equality address the needs of all in society, legislation would be developed in the combining reliable and transparent Scottish policy context and to ensure support from benefits with coherence with legislation in other opportunities for training, support areas such as health, education and for housing and child care, and housing. In an independent Scotland, taxation incentives integrated within it would be possible to establish an overall system that did not impose clear lines of accountability, and to financial barriers to those returning determine distinct mechanisms for to work. Scotland could also ensure securing, promotion and enforcement that it took account of the diverse of equal opportunities. needs of its population, promoted equality and addressed the barriers 4.37 To follow international best practice which prevent people from playing a in equal opportunities Scotland full role in society, that its most would continue current United vulnerable groups, and those Kingdom commitments to European suffering discrimination, received legislation and a range of International protection and that international conventions such as the UN standards for equality were upheld. Convention on the Elimination of Discrimination against Women (CEDAW) and the UN Convention on the Rights of Disabled People. With independence, Scotland could implement the requirements of these conventions taking account of the Scottish context.

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CHAPTER 5

AGREENERSCOTLAND

OVERVIEW

5.1 Scotland’s natural heritage enhances 5.3 Major policy areas of energy, the lives of the people of Scotland transport regulation and waste and supports tourism, agriculture, remain reserved. Many fishing and aquaculture. The first environmental, agriculture and decade of devolution has seen fishing matters are the subject of legislation on climate change, international, particularly European improving the environment and Union agreement, where Scotland tackling flooding. Scotland has has no voice outwith the policies of developed an approach to national the United Kingdom Government. parks, land reform and nature conservation designed for Scottish 5.4 Further devolution could provide circumstances, and distinct from Scotland with mechanisms to approaches in the rest of the United develop its potential, for example Kingdom. responsibility for regulation of the marine environment could allow 5.2 Scotland could play a leading role in Scotland to encourage offshore addressing the challenge of climate renewables and carbon capture and change and meeting European storage technology. However, the targets for renewable energy need to work internationally, and the through its potential in wind, tide central role of the European Union in and wave power. Scotland’s environmental matters, means that remaining reserves of oil and gas only independence would allow support an infrastructure and Scotland to make a full contribution technical expertise that could play a and make the best use of its leading role in the development of experience and potential. future low-carbon technologies, as well as providing capital to invest in developing renewables technology.

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ENVIRONMENT,AGRICULTURE anomalous situations. For example, ANDFISHERIES Scotland is among the largest sea fishing nations in Europe and the Current position Scottish fleet is responsible for landing 66% of the total United 5.5 Scotland has extensive devolved Kingdom volume of fish. Scotland is responsibilities for its natural also the European Union’s largest environment, natural resources, producer of farmed Atlantic salmon fisheries, and rural communities.100 and is a globally significant salmon Important areas in which the producing country in its own right. Scottish Parliament and the Scottish The Scottish Parliament and Government have exercised these Government are already responsible responsibilities include: for both sea fishing and aquaculture. However, the United Kingdom • climate change Government still takes the lead in • marine issues European Union negotiations on • fisheries and aquaculture these matters. • agriculture • waste Climate change

5.6 Many environmental issues – 5.8 The Climate Change (Scotland) Act including fisheries, agriculture, 2009 is the most ambitious climate pollution and climate change – change legislation anywhere in the are subject to decisions made in world. The Climate Change Delivery international bodies, including the Plan sets out what needs to be done European Union and the United now and in the medium and long- Nations. The European Union also term to achieve the necessary provides access to a common emissions reductions. Scotland market for Scottish farmers, cannot deliver its emissions targets fishermen and businesses, as well by acting alone. For example, as funding opportunities to rural targets for the European Union communities, and regulations so Emissions Trading Scheme, the that food is safe to eat. largest carbon trading scheme in the world, are set at European Union 5.7 The Scottish Parliament and level. The main responsibilities for Government are responsible for energy policy and regulation are implementing European Union reserved to the United Kingdom decisions within devolved areas, Government, as are fiscal levers to but Scotland is represented at the tackle climate change, including European Union as part of the Vehicle Excise Duty, Fuel Duty, United Kingdom. This can lead to and Landfill Tax.

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Marine issues Fisheries

5.9 Responsibilities for Scotland’s 5.10 The Scottish Government manages coasts and seas are divided between fish stock quotas and the activities of Scottish Ministers and the United the Scottish fleet, including number Kingdom Government, with different of days spent at sea, wherever they rules within and beyond 12 nautical fish within European Union limits. It miles. Fishing is fully devolved out can also regulate inshore fisheries by to 200 nautical miles. Regulating oil all United Kingdom vessels within and gas and shipping is reserved the 12 nautical mile territorial water even within inshore waters. The limit around Scotland. The Crown Estate, a reserved body, registration of fishing vessels is a determines the use of the seabed, reserved function. Scotland has and coastguard services are run by been at the forefront of measures to the Maritime and Coastguard support fish stock sustainability Agency, an executive agency of the through, for example, the United Kingdom Government. conservation credits scheme.102 Scotland has executive (but not However, quota management and legislative) responsibility for marine licensing cannot readily be adapted renewables. Legislative and to Scottish needs as long as they are executive competence for marine tied into a one-size-fits-all approach nature conservation and installations to United Kingdom fisheries at sea are devolved, but only out to management. 12 nautical miles. Despite recent agreements the underlying fragmented nature of responsibilities does pose a risk to the successful management of marine issues, for example supporting the emerging wind and tidal energy industry in Scottish waters.101

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Waste Marine and nature conservation

5.11 Scottish recycling rates are 5.14 The Commission recommended increasing, and Scotland has met its review of the effectiveness of share of the 2010 European Union legislative agreements between the Landfill Directive target 18 months United Kingdom and Scottish ahead of schedule. However, Governments on the marine regulation of the design and content environment, and that marine nature of packaging is reserved, which conservation should be devolved to prevents Scotland taking its own the Scottish Parliament at the steps to prevent and reduce waste earliest opportunity. This would by designing in reusability and allow fisheries and marine recyclability. conservation to be managed in an integrated way. However, regulatory Environmental recommendations of the responsibilities would remain Commission on Scottish Devolution divided for marine planning, mineral deposits and marine renewables. 5.12 The Commission made a number of recommendations relating to the Crown Estate environment. 5.15 The Commission recommended that Environmental taxation the United Kingdom Government should consult Scottish Ministers 5.13 The Commission recommended that and more actively exercise powers Landfill Tax and the Aggregates of direction under the Crown Estate Levy are devolved. Landfill Tax is a Act 1961. The Commission also tax on the disposal of waste and the proposed that the appointment of a Aggregates Levy is a tax on the Scottish Crown Estate Commissioner commercial extraction of rock, sand should be made following formal and gravel. Devolution of these consultation with Scottish Ministers. taxes would allow Scotland greater These recommendations would offer opportunities to design integrated Scotland a role in the management waste and other environmental of the seabed by the Crown Estate. policies, for example by employing However, the more significant issue both higher Landfill Tax and landfill – that revenues collected from bans which are being examined in a Scottish coastal businesses by the Scotland-led project. However, key Crown Estate bring very little visible environmental taxes, such as Vehicle benefit to Scotland – would remain. Excise Duty and Fuel Duty, would remain reserved.

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Animal health and welfare Food labelling

5.16 The Commission recommended that 5.17 The Commission recommended that funding for policy relating to regulations of food content and endemic diseases in animals should labelling should be reserved, where be devolved, while responsibility for separate devolved arrangements funding exotic disease outbreaks would place a burden on the should be retained at a United manufacturing, distribution and Kingdom level. At present, policy on supply of foodstuffs to consumers. animal health, including response to However, this recommendation exotic disease outbreaks is would separate responsibility for devolved, but the budgets are held food labelling from devolved by the United Kingdom Government. responsibilities for health, nutrition One of the lessons learnt from and food policies. Food labelling in Scotland’s response to the foot and Scotland is also governed by mouth disease outbreak in 2007 was European Union legislation and that the separation of policy already reﬂects the single European responsibility from ﬁnancial market. responsibility, as recommended by the Commission, is unsustainable.103 Full devolution of the animal health budget would bring responsibility for that budget and animal welfare policy in line, and allow devolved budgets to support improvements in animal health and welfare in Scotland, to reduce animal disease and support increased sustainable economic growth of the livestock farming sector.

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Full devolution Fisheries

5.19 By agreement, quota management and vessel licensing arrangements Would there be scope have been overseen by the four for an independent United Kingdom Fisheries Administrations acting jointly. As Scotland to have a policy objectives and fleet structures across the United Kingdom have distinct policy on fuel diverged, the current joint management arrangements have duty that reflects the constrained the Scottish needs of a rural Government’s ability to put in place arrangements tailored to Scottish economy? I’m thinking circumstances. Greater management flexibility under full devolution particularly in would allow Scottish Ministers to adapt fisheries management relation to the measures to meet the specific needs farming, haulage and of the Scottish industry. Such an arrangement would avoid fishing sectors that we disagreements between the Scottish Government and the United have in the Borders. Kingdom Government on, for (Jedburgh National Conversation Event, 29 April 2009) example, quota management. 5.18 Full devolution could bring benefits to Scotland beyond those envisaged by the Commission.

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Rural and environmental taxation Independence

5.20 The viability of rural areas and 5.21 Independence would allow the Scottish Government’s ability Scotland to be a full member to assist their economic recovery of various international could benefit from fiscal organisations, including the autonomy. For example, European Union. This would Scotland could tailor fuel and place Scotland in a stronger vehicle excise duties to take negotiating position on rural better account of Scottish and environmental issues. circumstances, balancing the need to reduce emissions against the desire to support rural and remote communities. Specific tax incentives could be given to landowners who let whole farms to new entrants to farming, or relief from Stamp Duty Land Tax for new entrants taking up leases. Such measures could encourage new farmers and increase enterprise in agriculture, food production and land management in Scotland.

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Relationship with the European Union Government will vote contrary to Scottish preferences. 5.22 Currently the representation of Independence would give Scottish interests in the European Scotland a full voice in Europe. Union relies entirely on the political goodwill of the United 5.23 Similarly, independence would Kingdom Government, without offer Scotland, as a leading any external check or remedy. fishing nation, the opportunity to Where there are differences of argue directly for replacement of view on policy, for example on the current Common Fisheries reform of the Common Policy, through, for example, Agricultural Policy (see Box 8) or promoting repatriation of sea genetically modified crops or fisheries management to the products, the United Kingdom coastal Member States.

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In my view the most cogent argument for independence for Scotland is the need for separate representation at the European Union. (Dundee Summer Cabinet, 30 June 2009)

Climate change greater emissions reductions. An independent Scotland would 5.24 Scotland is a key player in energy make its own contribution to policy at both United Kingdom such international agreements and European Union levels. The (see Box 9). United Nations Framework Convention on Climate Change 5.25 The Scottish Government works (UNFCCC) is the basis on which in constructive collaboration with international agreement on the United Kingdom Government, climate change is negotiated. The the Welsh Assembly Government meeting in Copenhagen in and the Northern Ireland December 2009 aims to deliver a Executive on climate change. Such successor to the UNFCCC Kyoto collaborations could continue and Protocol. A new international expand on independence, both agreement would help Scotland within this group, and within the and Europe as a whole deliver European Union.

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BOX 8: SCOTLAND IN EUROPE – REFORM OF THE COMMON AGRICULTURAL POLICY (CAP)

1. The United Kingdom and Scottish Governments have fundamentally different views on reform of the CAP. The United Kingdom Government's policy, on which devolved administrations were not consulted, is that the entire “First Pillar” of the CAP, which delivers income support for farmers through the Single Farm Payment and markets interventions for certain products, should be phased out.104 The Scottish Government believes that this approach would seriously jeopardise large parts of Scottish agriculture. About 85% of Scotland falls under the European Union's category of “Less Favoured” agricultural land, where proﬁtability is by deﬁnition lower than on better quality land. The proportion of “Less Favoured” land is considerably lower elsewhere in the United Kingdom.

2. The United Kingdom Government’s position on the “Second Pillar” of the CAP also differs from that of the Scottish Government. The Second Pillar is designed to ensure delivery of public goods where there is market failure. While environmental public goods are an important part of the Second Pillar, the United Kingdom Government position fails to take account of other rural public goods which are important for Scotland, including the maintenance of ﬂourishing communities in remote areas.

3. This difﬁculty is brought into focus in European Union negotiations, where Scotland’s position can be heard formally in the Council of Ministers only if it aligns with the United Kingdom position. This leaves some of Scotland’s most vulnerable areas at a serious disadvantage. An independent Scotland would have the same voice as other member states.

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BOX 9: INTERNATIONAL CLIMATE CHANGE NEGOTIATIONS

1. Scotland’s share of global emissions is small, and Scotland’s most important contribution at a global level is to demonstrate strong leadership and demonstrate that the pathway to a successful low carbon economy is achievable.

2. The Scottish Parliament has passed world-leading climate change legislation, a key illustration of the positive leadership and contribution Scotland can make to meeting global challenges. Scotland could be at the centre of international discussions, such as the Copenhagen climate change summit, supported by Scotland’s environmental organisations. However, Scotland’s ofﬁcial attendance at such events depends on the agreement of the United Kingdom Government.

3. With independence, Scotland would be able to play a full role in a subject in which it has much to offer. The experience of a nation with both oil and gas reserves, signiﬁcant carbon capture and storage potential and the ability to develop substantial renewable energy capacity would add to the voices on this issue of global concern, to the beneﬁt of the debate on tackling climate change within Europe and across the world.

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The result is a hotch potch which… is inhibiting transport integration in Scotland and the integration of transport in energy and climate change policies. (Scottish Association for Public Transport response to the National Conversation, September 2008)

TRANSPORT 5.28 The experience of enhanced rail devolution (see Box 10) demonstrates Current position the opportunities of devolving responsibility for transport policy, 5.26 The majority of transport functions and focussing on Scottish needs. are devolved, and distinctive Scottish policies aim to create a Transport recommendations of the well-connected, safe and reliable Commission on Scottish Devolution transport system which underpins business and economic growth. 5.29 The Commission makes only one recommendation affecting transport 5.27 A number of transport functions in Scotland. Among its remain reserved to the United recommendations on taxation Kingdom: (discussed in more detail at paragraphs 3.22 – 3.28), the • roads: regulation of roads, vehicles Commission proposed that Air and drivers; national speed limits, and Passenger Duty (APD) should be renewable Transport Fuels Obligation devolved to the Scottish Parliament. • rail: Great Britain-wide rail network Devolved APD could be reduced, issues, standards and regulation providing an incentive for airlines to frameworks, representation of expand direct connections to passenger interests and complaints, Scotland, benefitting the Scottish and cross-border franchises economy and reducing air travel • marine: marine policy, regulation connections within the United and security Kingdom. This is an example of the • air: economic, security and safety scope to use fiscal policy to regulation, international encourage economic activity, and representation the principle of the Commission’s recommendation could bring benefits in other areas of taxation.

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Independence 5.33 With responsibility for fuel duty, Scotland could press the European 5.30Independence - or full devolution - Union for a derogation to apply a would offer allow Scotland to lower rate of fuel duty in rural areas, integrate fully all transport policies recognising accessibility and price and initiatives.105 Scotland would also disadvantages faced by Scotland’s have responsibility for the overall remote and island communities. The public financial framework, which French government has introduced could benefit transport through a lower rate of duty in Corsica under borrowing and taxation policies. a similar system. The United Kingdom Government has not Borrowing pursued such a policy for Scotland although the Commission on 5.31 Greater borrowing autonomy for the Scottish Devolution acknowledged Scottish Government would allow the case for the Scottish and United more flexibility in the pace and Kingdom Governments ‘to pursue a priorities of Scotland’s capital derogation limited to the outlying expenditure programme, and parts of the Highlands and Islands’.106 provide an alternative source of financing for major infrastructure 5.34 Responsibility for fuel duty would projects when required. For also enable the Scottish Government example, phasing the funding of the to respond to the pressures faced by new Forth crossing would allow Scottish businesses due to Scotland’s existing capital budgets to take geographic position. forward more projects at the same time as bridge construction.

Transport taxes

5.32 Other taxes directly linked to transport could be devolved, beyond the APD recommended by the Commission on Scottish Devolution. Fuel duty, APD and vehicle excise duty accounted for just 5% of Scottish tax revenue in 2007/08, but they are important policy instruments to inﬂuence behaviour and achieve economic objectives.

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BOX 10: DEVOLUTION OF RAIL SERVICES

1. Until the Railways Act 2005 rail investment was decided at United Kingdom level, and Scottish projects competed for funding in a United Kingdom Government hierarchy. Since 2006 devolved responsibility for investment decisions has allowed the Scottish Government to target investment in the Scottish rail network to meet Scottish objectives, from improving connectivity to meeting climate change targets.

2. For example, in July 2007 the Scottish Government speciﬁed on behalf of Scottish rail passengers and freight users industry deliverables to secure the most positive outcomes for Scotland. Different priorities from the United Kingdom included a focus on faster journey times to beneﬁt business, resulting in substantial planned investment in the Glasgow to Edinburgh line and from Inverness and Aberdeen to the central belt.

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Nuclear, tidal, wind, clean-coal are, in varying proportions, ingredients for energy. The Scottish Government is against nuclear energy, so is there any confident assurance that other remaining sources are adequate to meet present and future demands, and within reasonable timescales? (Melrose Summer Cabinet, 28 July 2009)

ENERGY established expertise in the oil and gas and power generation industries. Objectives of energy policy Scotland is estimated to have 25% of Europe’s offshore wind resource, 5.35 Energy policy encompasses both 10% of Europe’s wave resource and supply of energy, and developing 25% of its tidal resource, which the energy sector in Scotland’s would make a signiﬁcant economy, including renewable contribution to a low carbon future energy and climate change targets. for Scotland and Europe. Energy will 5.36 The Climate Change (Scotland) Act be a key sector in Scotland’s 2009 introduced a statutory target sustainable economic growth over to reduce emissions in Scotland by the next 30 years and beyond. 42% by 2020. 50% of Scottish Current position electricity consumption should come from renewable sources by 2020, 5.38 The major policy responsibilities for with 31% by 2011, and, in line with energy are reserved, including the European Union-wide targets, 20% regulation of energy markets, of all energy use should come from regulation and taxation of the oil renewable sources by 2020. and gas sector and the promotion of Scottish interests at European Union 5.37 Scotland has a competitive level. Grid access is also reserved, advantage in energy: natural and and the current grid charging system geographic opportunities in wind works against the development of and wave and tidal generation; and clean, renewable energy in Scotland.

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5.39 Scottish responsibilities in relation to Other Energy Matters energy are limited to the promotion of renewable energy and energy 5.42 The Commission considered efficiency.107 Through the planning electricity generation and supply system, the Scottish Government issues and made no recommendations can also influence decisions relating in this area. On transmission to investment and the energy mix. charging, the Commission noted that this was an issue for many of Energy recommendations of the those who gave evidence, but did Commission on Scottish Devolution not consider the subject was within its remit. 5.40The Commission did not recommend any improvements to the current Full devolution responsibilities for energy, either to encourage development of Scotland’s 5.43 There are a number of areas of energy renewables or to maximise the policy which could be devolved, benefits of oil and gas to Scotland. despite the conclusions of the Commission on Scottish Devolution. Oil and Gas Renewables 5.41 The Commission established an Independent Expert Group to 5.44The Scottish renewables target examine the issue of North Sea requires the right infrastructure, taxation and revenue. This reported including harbours, test facilities, heat that there would be economic networks and upgrades to the grid. opportunities from devolving These require co-operative working responsibility for North Sea taxation, across the public and private although there could also be sectors, and major investment. The challenges.108 The Expert Group also Fossil Fuel Levy fund is collected in identified the benefits of a Scottish Scotland to promote renewable oil fund. However, the Commission energy, and currently stands at itself concluded that oil and gas £174 million. A decision by the revenues should remain reserved United Kingdom Government means and did not recommend a Scottish that this fund cannot be invested in oil fund. renewables without a corresponding reduction on the Scottish block grant. A devolved Fossil Fuel Levy fund could be invested to encourage the renewable energy sector in Scotland, helping to meet renewables targets in Scotland and across the United Kingdom.

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Carbon Capture and Storage Oil and gas taxation

5.45 Carbon Capture and Storage (CSS) 5.46 Oil and gas remain an important is a technology in which Scotland sector in the Scottish economy. has a number of significant With further devolution the Scottish advantages including academic government could encourage expertise, considerable offshore development in a number of key storage capacity and the potential areas: to utilise the skills and infrastructure • improving depletion rates and of our existing oil and gas and promoting enhanced oil recovery power engineering sectors. There • worldwide marketing of Scottish are a number of outstanding oil services expertise potential CCS projects which could • sustainable use and decommissioning be developed in Scotland. Giving of the oil and gas infrastructure greater powers to Scotland, such as (including for CCS) ensuring that funding raised from • encouraging diversification of skills the proposed United Kingdom from the sector into low carbon Government levy on generation to opportunities such as CCS and fund CCS projects is allocated marine renewables directly to Scotland, would provide • better use of fiscal revenues, an opportunity to assist the including a sovereign wealth fund development of such projects and ensure that Scotland can be seen as 5.47 The taxation regime is an important a leader in the development of this factor in maximising investment and emerging sector. In addition, CCS is production in the sector. The current currently regulated by a number of taxation regime is made up of three bodies including Scottish Ministers, parts: petroleum revenue tax: the United Kingdom Government, charged at 50% on profits from and the Crown Estate. Devolving all fields approved before March 1993 offshore licensing, including oil and (when the tax was abolished for new gas licensing, to Scotland would fields); corporation tax: now create a seamless regulatory charged at an effective rate of 50%; framework for low carbon-based and license fees paid by operators energy activity in the Scottish to the United Kingdom Government offshore area. to explore and extract oil and gas from specified areas.

As energy security issues climb to the top of the geopolitical security agenda, how will this impact on Scotland’s energy security in the coming decade? 87 (Dumfries Summer Cabinet, 29 July 2008) A National Conversation – YOUR SCOTLAND, YOUR VOICE

5.48 It is in Scotland’s interests to develop United Kingdom-wide market was the an oil and gas taxation regime that best way ahead to ensure security of balances revenues, environmental supply and allow consumers access objectives on decommissioning and to a competitive and modern energy re-use of the infrastructure, and market, as well as ensuring that incentives for continued development obligations and targets are met. and exploration in the North Sea. However, there are a number of Remaining reserves may have a examples where independent wholesale value of between countries can operate a common £650 billion and £1.1 trillion. Full electricity transmission and devolution of the North Sea tax distribution system, such as the regime would allow the Scottish pooling arrangements that exist Government to work with industry between a number of Nordic to develop a fiscal regime that met countries.109 A single electricity these objectives and ensured an market now exists between the appropriate level of taxation on a Republic of Ireland and Northern valuable and non-renewable resource. Ireland, demonstrating that agreements and co-operation Independence between individual countries on energy market regulation is possible. 5.49 Independence would give Scotland the advantages of full devolution and 5.51 Under the current United Kingdom bring responsibility for important system, there are higher charges areas such as energy regulation and for connection and use of the United engagement with the European Kingdom electricity grid for Union. generators furthest from the main United Kingdom centres of demand, Energy regulation favouring generation in the south of England. Scottish generators 5.50Under independence, energy market produce 12% of United Kingdom regulation would address Scotland’s generation, but account for 40% specific needs in transmission of of the transmission costs, or about energy, encouraging renewables and £100 million per year more than energy efficiency, promoting trade their proportionate share. This is a with the rest of the United Kingdom reserved matter, and Scotland and further afield within European cannot reform this regime even Union rules. The Commission on though it discriminates against Scottish Devolution considered the Scottish generators and acts against issue of electricity supply and the delivery of renewable energy concluded the current model of a targets. With independence Scotland

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would have its own voice in any CONCLUSION wider pooling structures to ensure that its interests were promoted. 5.54 Scotland has a rich natural heritage, which, along with energy production, Engagement with Europe plays an important role in the economy. Much of the policy that 5.52 Scotland has a major contribution affects its environment, agriculture to make to European Union and and ﬁsheries comes from the international energy policy. Scotland European Union and is therefore is in a unique position with its effectively reserved to the United extensive experience of the oil and Kingdom. Energy policy is also gas industry and its signiﬁcant reserved, as is much regulation potential to develop renewable and of transport. carbon capture technology. Scotland will play an important role 5.55 It would be possible to devolve in meeting Europe’s energy security further responsibility to Scotland for and climate change needs in the some of these matters, for example decades ahead. Scotland has also particularly taxes on waste and made innovative proposals for the transport. However, the challenges of future of the energy sector in climate change, energy supply and Europe, for example on a supergrid food security mean that international across Europe centred on the North organisations, especially the Sea. European Union, are likely to continue to develop as the most important 5.53 The Scottish Government has forums for decision making on already made substantial progress environmental and energy matters in recent years in engaging actively in the future. Only independence with Europe on energy issues and would give Scotland a full voice in has made energy a long-term these international discussions, and priority for European engagement.110 allow its expertise and potential to Experience on low carbon energy be represented properly. research and development show that an active role for Scotland strengthens the United Kingdom’s energy objectives within the European Union. However, only under independence could Scotland play a full part in European Union energy policy.

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90 A National Conversation – YOUR SCOTLAND, YOUR VOICE

CHAPTER 6

AHEALTHIERAND SMARTERSCOTLAND

OVERVIEW

6.1 Scotland has a long history of system, and contributing to tackling distinctive education, children’s wider issues of poverty, ill health services and health systems within and economic inactivity in Scottish the United Kingdom. Devolution has society. shown the potential that greater autonomy gives Scotland to bring HEALTH improvements to these systems, while preserving their traditional Current responsibilities features. Free personal care for the elderly and the ban on smoking in 6.3 From its inception, and in particular public places have been landmark since devolution, the NHS in achievements of the Scottish Scotland has been largely Parliament. Scotland’s health service independent from the rest of the has maintained its integrated United Kingdom, and shaped by structure while reducing waiting different patterns of need and times, and public health legislation geography. Such differences have has been modernised. In education, deﬁned the provision of free health the Curriculum for Excellence has care in Scotland, and the NHS in modernised the schools system, Scotland today is markedly different while legislation has given greater from that in England and Wales. rights to those requiring particular Scotland has a long-standing support for learning. integrated healthcare system. General Practitioners refer patients 6.2 Independence would allow health to a treatment centre within their and education to build on the own Board area or elsewhere if the achievements of devolution, required service is not provided integrating the support offered locally. There is no competition, or with important reserved matters, internal market, operating across the particularly the beneﬁt and taxation NHS in Scotland.

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6.4 Responsibility for the provision of Health recommendations of the health care is almost entirely Commission on Scottish Devolution devolved and there have been signiﬁcant achievements over the 6.7 The Commission made one last ten years: a reduction in waiting recommendation directly affecting times through more efﬁcient ways of health matters: that regulation of all working; better workforce planning; health professions should be more investment in new diagnostic reserved. The Scotland Act reserves equipment; the development of the to the United Kingdom regulation of single patient record. Prescription health professions which existed charges are being phased out to when the Act was passed. ensure that all patients have access Regulation of any new health to the prescriptions they require. profession has been devolved. If the Public health legislation has been regulation of all professions was modernised through the Public reserved there would be no Health etc. (Scotland) Act 2008. guarantee that the differences in Scotland led in the United Kingdom Scotland’s health structures and with legislation to ban smoking in systems would be taken into public places. account, as there would be no statutory imperative for the United 6.5 The NHS in Scotland contributes Kingdom Government to seek directly to other policy objectives: agreement to its regulatory regimes. growth in the Scottish economy through investment in medical and life sciences technology, and continuous improvement in its What further steps healthcare services; developing a are planned to develop highly skilled workforce with increasing productivity levels; and our Health Service as improving the health and wellbeing of the working age population. a public service in

6.6 Relatively few areas related to which healthcare health are reserved. Those which workers United are include: regulation of the main health professions; misuse of drugs; Kingdom-wide would medicines, medical supplies and poisons; embryology, surrogacy be proud to work? and genetics; and abortion.111 (Paisley National Conversation event, 14 September 2009)

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Full devolution 6.10 Under independence, cross-border co- operation in health could be enhanced. 6.8 Scotland already has responsibility In some areas, co-operation has arisen to provide health care responsive out of necessity, requiring a sharing of and relevant to the needs of people scarce resources or consistency of in Scotland, and free at the point of approach to complex issues; in others, delivery. However, Scotland does it has arisen because of the benefits not have responsibility in areas that co-operation has brought for both the could be used to help reduce the people of Scotland, and the rest of the negative health effects of smoking United Kingdom. and alcohol misuse. For example, alcohol misuse is one of the most 6.11 The allocation of organs for donation serious health problems facing and transplantation is carried out on a Scotland, and it also has significant United Kingdom-basis, which ensures social and economic consequences. the best match between donor and Responsibility for some key recipient can be achieved. This mechanisms to address this issue – arrangement could be maintained in such as taxation levels on alcohol an independent Scotland to ensure and the advertising of alcohol – equal access for every citizen in the remains reserved to the United United Kingdom who requires a Kingdom. transplant. Likewise, there are United Kingdom-wide arrangements for the Independence commissioning of specialist health services for conditions or treatments 6.9 With devolution Scotland has that are so rare or specialised that no demonstrated its innovative single United Kingdom country could approach to public health and to the sustain them alone. Similar delivery of healthcare. Scotland has agreements exist on a European maintained a high quality service Union basis. These arrangements are based on a traditional national model, managed on and avoiding market led innovations behalf of Scotland that have been introduced by the National elsewhere in the NHS. Independence Services Division would ensure that Scotland had full of NHS National responsibility for the entirety of its Services Scotland, health system, including the few to ensure that the health policy areas reserved to the people of Scotland United Kingdom, and, wider policy have access to areas which could support health such rare and policies in the economic and social specialised fields. services when they need them.

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BOX 11: FREE PERSONAL CARE112

1. Free Personal and Nursing Care has 2. The implementation of free personal been one of the most high-profile care illustrated a difficulty of Scottish policies since devolution. implementing devolved policy which Over 50,000 vulnerable older interacts with the reserved benefits people in Scotland are currently system. The United Kingdom receiving assistance through the Government withdrew Attendance scheme. Around 42,000 people are Allowance from those people in care now receiving personal care services homes receiving free personal care. at home at no charge allowing them The Scottish Government had to to remain in their own homes and ensure that these individuals are not live independently for longer. 9,600 disadvantaged financially as a result self-funders in care homes are at a cost of £30 million a year. receiving a weekly payment of £153 towards their personal care and around 6,100 of these self-funders are also receiving £69 per week towards their nursing care costs. The balance has shifted from residential care to supporting people in their own homes for long as possible.

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BOX 12: SMOKING BAN

1. On 26 March 2006, Scotland 2. The legislation was preceded by an became the ﬁrst part of the United innovative work programme to raise Kingdom to introduce comprehensive awareness of the health risks of legislation to ban smoking in passive smoking, research current enclosed public places. The smoking policies, gather international legislation has been hailed not only evidence about the health and as the most important piece of economic impact of smoking bans, public health legislation since the and to test public opinion by a major introduction of the NHS but as a public consultation through a deﬁning moment in devolution. It number of routes. This provided a is widely acknowledged that the wealth of evidence, including of leadership shown by the Scottish public support, on which to base Parliament encouraged smoking bans the ban. elsewhere in the United Kingdom.

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EDUCATIONANDCHILDREN been taken to strengthen the rights of parents and young people with Current responsibilities additional support needs, and planned provisions will update and 6.12 Scotland has long had its own strengthen the consultation education system, with a distinctive practices and procedures for curriculum framework, qualifications proposals that affect education and examination system, and services, such as the closure of compulsory periods of education. schools. The quality of Scotland’s Universities is recognised internationally (see 6.14 However, the current constitutional Box 6). Scotland has its own settlement places limits on the systems of pre-school education, action that can be taken in Scotland childcare, children’s services, a to improve the lives of children and children’s hearings system, social young people. In particular, the work and youth work. With benefits and tax credits system is devolution in 1999, the Scottish not responsive to Scotland’s specific Parliament gained legislative needs and is organised on a United responsibility for this education Kingdom-wide basis. system. Children recommendations of the 6.13 Successive Scottish Governments Commission on Scottish Devolution have used devolved responsibilities to improve the Scottish education 6.15 The Commission made only one system, including the Curriculum for recommendation concerning Excellence, the biggest reform of children services: that in dealing the Scottish education system for a with the children of asylum seekers, generation. Legislative action has the relevant United Kingdom

How are we going to equip our children to meet the challenges of recession? Is independence going to bring more opportunities from them? (Edinburgh CEMVO National Conversation event, 22 April 2009)

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authorities must recognise the spending) is devolved to the statutory responsibilities of Scottish Scottish Government. Parents find authorities for the well-being of this split of responsibilities confusing children in Scotland. and there is widespread criticism of the way the tax credit system works. 6.16 This recommendation reflects recent If the Scottish Government had practice. Scottish and United responsibility for supply and Kingdom Governments have regular demand side funding for childcare it discussions about statutory duties to could construct progressive support promote the well-being of children for the costs of childcare, which is seeking asylum in Scotland. Since simple and accessible for parents. January 2009 all United Kingdom Borders Agency staff and CONCLUSION contractors have been operating under a statutory Code of Practice 6.18 The achievements in health and to keep children safe from harm, and education since devolution will be subject to a new statutory demonstrate the potential for duty from the autumn to safeguard Scotland to flourish when it has full and promote the welfare of children. responsibility and can develop and When children are detained at implement policies to meet Dungavel, an agreement exists particular Scottish priorities and between the Borders Agency and needs. Independence would allow the local authority to ensure that Scotland to bring a similar approach children are given the help and to all areas of government activity, support they need, though the as well as integrating existing health Scottish Government remains and education services in wider opposed to any such detention of mechanisms to support and develop children. the people of Scotland.

Independence

6.17 Independence - or full devolution - would allow children’s services to be integrated with support through the tax credit and beneﬁts system. For example, support with the costs of childcare (demand-side funding) is reserved to the United Kingdom Government and is funded through the tax credit system, while childcare provision (support-side

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CHAPTER 7

ASAFERSCOTLAND

OVERVIEW

7.1 Scotland requires a legal system that 7.3 The Commission on Scottish supports a safe and just society, and Devolution recognised that the tackles societal issues like drug and principle of devolution would place alcohol misuse and violence, responsibility for these matters in including domestic and sexual Scotland, but only followed this violence. Human rights, liberties and argument to its conclusion in their equalities should underpin Scottish recommendations on airguns, drink society, ensuring justice and driving limits and speed limits. There tolerance for everyone, and is a separate criminal jurisdiction in protecting the rights of citizens Scotland, and responsibility for the against the state, and reﬂecting and whole body of criminal law could protecting the diversity of society, now be devolved to the Scottish tackling issues of sectarianism and Parliament as the legislature for discrimination. that jurisdiction.

7.2 Scotland has a proud legal tradition, 7.4 Independence would give Scotland securing the basic rights of the full responsibility for its court citizen within an effective justice system, its approach to international system. Much of this system has obligations of law and rights, and been devolved, but important areas allow Scotland to protect the human remain reserved: laws to tackle rights of its citizens, guaranteeing drugs, ﬁrearms and terrorism; the their position within and against legal machinery for safeguarding the state. the human rights of Scottish citizens; and important parts of the judicial system: aspects of the United Kingdom Supreme Court and many tribunals.

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CRIMINALANDCIVILJUSTICE 7.7 Although the justice system in Scotland is largely devolved, there Current position are several important areas which are reserved to the United Kingdom: 7.5 The Scottish legal system has long terrorism, legal safeguards for been distinct from that in the rest of human rights, drugs, ﬁrearms, the United Kingdom. Its integrity and alcohol taxation, drink-driving limits, independence were secured in the and some jurisdictions of the United Acts of Union, and administrative Kingdom Supreme Court. If the responsibility for running the justice Scottish Parliament were responsible system remained in Scotland. for these areas there would be a Devolution also gave Scotland more fully integrated justice system, legislative responsibility. The with no gaps in the administration of Scottish justice system has its own justice in Scotland. court system; different professional legal bodies (the Law Society of Justice recommendations of the Scotland and the Faculty of Commission on Scottish Devolution Advocates); its own legislation; its own police forces; its own 7.8 The Commission recommended that independent prosecution, headed by Scotland should be responsible for: the Lord Advocate; its own prison and criminal justice social work • the regulation of airguns services. • licensing and control of controlled substances for the treatment of 7.6 Scotland has used its devolved addiction responsibilities to tackle a range of • drink-driving limits long-term societal problems, and to • the national speed limit in Scotland113 reform the system itself. These initiatives demonstrate the principle of devolution: problems which are endemic to Scotland are tackled in Scotland, by a coherent legislative, policy and judicial framework to tackle offenders, and reduce offences.

How is this government going to make Scotland safe for us to live in? (Kilmarnock National Conversation event, 1 June 2009)

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7.9 Several of the Commission’s Independence recommendations reflect long-held views of the Scottish Parliament. For 7.11 A comprehensive justice system that example, the Scottish Parliament has tackles societal problems is essential called for a lower drink-driving limit: for any nation. Despite the strengths legislative responsibility would allow of the Scottish criminal justice the Scottish Government’s Road system, gaps and anomalies remain, Safety Framework to be taken preventing the full integration of law forward.114 The Scottish Parliament and accountability. There is no reason has also called repeatedly for why all aspects of the legal system responsibility for the regulation of should not be fully devolved to airguns, which are a particular Scotland, given its existence as a problem in Scotland, accounting for distinct and independent jurisdiction, half of all firearm offences in but such a decision is dependent on 2007/08. the United Kingdom. Independence would ensure that full responsibility 7.10 There would remain limitations in the for justice matters rested within areas affected by the Commission’s Scotland. proposals. The Scottish Parliament could make laws on airguns, but not Drugs legislation on other firearms. It would not be able to set differential drink-driving 7.12 Much of drugs policy is already limits for certain groups of drivers, devolved, including the national drugs such as young drivers or commercial strategy, funding arrangements for drivers. It would be able to set a drug treatment services and the national speed limit in Scotland, but organisation of delivery structures. would be unable to set related However, classification of drugs and penalties. regulation of offences and penalties is reserved, as are the statutory functions of the Advisory Committee on the Misuse of Drugs, which reviews the classification of drugs and advises Ministers. How does the government intend to increase the service of help in rehabilitation to young people who have alcohol/drug dependency and are involved in criminal activity, to bring them back into society? (Melrose Summer Cabinet, 28 July 2009) 101 A National Conversation – YOUR SCOTLAND, YOUR VOICE

Firearms legislation JUDICIARYANDTHECOURTS

7.13 Responsibility for all firearms Current position legislation would allow the firearms regime to be made consistent, easier 7.14 The Acts of Union guaranteed to understand and easier to enforce. continued autonomy for Scotland’s The Scottish Parliament would be legal system. Scots Law, and the better able to protect communities principal institutions administering it, from illegal or irresponsible use of have remained separate and distinct firearms, as it has with knives and for the last 300 years. The principal other offensive weapons. A coherent effect of devolution was to give the firearms policy for Scotland would new Scottish Parliament make it easier for legitimate firearms responsibility for maintaining a large users to go about their activities, proportion of the statute law (Acts supporting the economic contribution of Parliament) which the Courts of shooting sports and related implement. The major reserved industries. The risk of cross-border matters are some jurisdictions of the traffic in illegal firearms can be new United Kingdom Supreme Court addressed in the same way as it has and many reserved tribunals under been for differences in the law on the auspices of the new United knife licensing and alcohol sales. Kingdom Tribunals service.

7.15 The Supreme Court was established in October 2009 and its judges are appointed on the recommendation of the Prime Minister. It sits as a Scottish Court to hear appeals from civil cases arising in Scotland, and also hears criminal cases where human rights are at issue, although most ﬁnal appeals relating to criminal cases continue to be heard by Scottish courts. This split in the ﬁnal jurisdiction on criminal matters risks inconsistency and confusion. The Supreme Court is required to include judges from each United Kingdom jurisdiction, but a clear majority of its judges are from

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England and Wales. It is not clear if Full devolution the new arrangements will safeguard the continued distinctiveness of 7.19 Full devolution would allow the Scotland's legal system or the concerns found by the Commission coherence of Scots law as a body on Scottish Devolution to be of law. addressed. In particular, the Supreme Court could have a Scottish 7.16 The United Kingdom Tribunal Chamber, with a majority of judges Service was created in 2008. Certain expert in Scots law and practice, tribunals it administers sit in which was the responsibility of the Scotland as British institutions, Scottish Parliament. Such a Chamber handling cases that would otherwise could be properly integrated into the be heard by the Scottish Courts. The Scottish legal system, addressing the creation of the UK Tribunal Service concerns about splits in the criminal was intended to rationalise the law. Devolution of all tribunals would system in England and Wales but allow a Scottish tribunal service to has in some cases added a further be established, integrated into the layer to the framework for Scottish court system and ensuring administrative justice in Scotland. greater efﬁciency. Full devolution would also allow Scotland to 7.17 Other reserved judicial matters introduce rational criteria, consistently include the remuneration applied, to the allocation of arrangements for senior judges and jurisdiction between the courts and the appointment of Scotland’s most tribunals. senior judges are still made on the recommendation of the Prime Independence Minister, on the nomination of the First Minister. 7.20 The judicial branch is one of three pillars of government in most states. Courts recommendations of the An independent Scotland would Commission on Scottish Devolution continue its tradition of a robust judiciary holding the executive and 7.18 The Commission considered the Parliament to the law, as well as complexity of the tribunal system in administering and dispensing Scotland, and the development of a criminal and civil justice in the normal split in the criminal law. On both way. Scotland would need to consider matters, it found evidence of the architecture of the court system, concern, but the Commission in particular whether there was a concluded both to be beyond its need for a Scottish Supreme Court remit and made no recommendations.115 on the United Kingdom model, or

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whether existing Scottish court 7.23 These statutes are reserved. The structures would suffice. However United Kingdom Parliament still the functions of a supreme court in claims competence to legislate in interpreting the legal aspects of the ways which are incompatible with constitution would remain the the European Convention on Human function of the Scottish judiciary. Rights and the human rights of Scottish citizens can therefore be 7.21 The Scottish legal system would encroached upon by Westminster continue its traditional openness to without reference to the Scottish the positive influence of other Parliament and Government. Greater jurisdictions, particularly the Courts protection has been given to the of European institutions. The human rights of Scottish citizens in principal difference would be that some devolved areas than has been Scotland’s legal system would the case in England and Wales, for decide how to use these external example on the retention of influences, including the rich fingerprints and DNA samples. jurisprudence of the rest of the However, the Scottish Parliament United Kingdom and the and Government cannot protect Commonwealth, rather than having against threats to those rights if the some crucial decisions made by matter is reserved, for example the judges from other jurisdictions. introduction of identity cards.

HUMANRIGHTSAND Human rights recommendations of the RESPONSIBILITIES Commission on Scottish Devolution

Current position 7.24 The Commission did not consider the wider issue of human rights, 7.22 The Human Rights Act 1998 their place in the governance of incorporated the European Scotland, and the responsibility of Convention on Human Rights into the Scottish Parliament to protect United Kingdom domestic law by the human rights of its citizens from requiring public authorities to act in legislation in the United Kingdom accordance with the Convention Parliament. rights. The Scotland Act provides that Scottish Ministers cannot act incompatibly with any of those rights and that the Scottish Parliament cannot legislate incompatibly with those rights.

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Independence CONCLUSION

7.25 With independence, Scotland 7.27 Scotland’s legal system has long could properly entrench the human been a distinctive feature of the rights of Scottish citizens in the nation. Devolution has provided the constitutional framework of the opportunity to update and nation. This approach would reﬂect modernise some of its features, and international best practice, and the direct the system to addressing international commitments Scotland societal problems that has faced has undertaken as part of the United Scotland. However, some of the Kingdom. Instead of regarding most important of these – drugs, human rights as a burden on the ﬁrearms, aspects of alcohol policy – government, an independent remain reserved. Scotland could take a positive approach to the place of rights in 7.28 The recommendations of the its political and legal system, Commission on Scottish Devolution guaranteeing the position of the would provide some further individual against the state. responsibilities to Scotland, but not in these central areas. The principle 7.26 As an independent state, Scotland of devolution should apply to the would generally inherit current justice system as a whole, and give international obligations, and it full responsibility to the Scottish would be for the Government and Parliament as the law making body Parliament to consider how these for this jurisdiction. were taken forward in the future, including, for example, the domestic 7.29 Independence would also give protection of the rights under the Scotland responsibility for its whole jurisdiction of the European Court of judicial system; and for the framework Human Rights. Independence would of fundamental rights for its citizens. also give Scotland the ability to choose how to implement international obligations in areas which are currently reserved in a way sympathetic to local legal traditions, and national concerns.

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CHAPTER 8

ASTRONGERSCOTLAND

OVERVIEW 8.2 Scotland’s international relations have three principal dimensions: 8.1 A deﬁning feature of an independent state is its voice • relations with the European Union on the world stage: in a wider • relations with the wider international organisation, such as international community and the European Union or the United other international organisations Nations; or in bilateral discussions • relations with the rest of the with other nations, neighbours United Kingdom and trading partners. Inﬂuencing others, representing the views and Given the European Union’s role interests of its people, is a key aim in many areas of government, of governments across the world Scotland needs adequate in this global and interdependent representation within the age. European Union to negotiate directly for its own interests. Scotland already has a distinct, if limited, voice on the international stage, both as a nation in its own right and as part of the United Kingdom. Scotland has close ties with the rest of the United Kingdom, from geography, from social and historical bonds, and through institutions, such as the monarchy, and would maintain these on independence.

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SCOTLANDINTHEWORLDTODAY delegation. They can attend meetings only with the agreement Current position of the United Kingdom Government, and must adhere to the agreed 8.3 As a nation within the United United Kingdom position. Similar Kingdom, Scotland has maintained arrangements apply to other an international proﬁle. People from international negotiations which across the globe have connections affect devolved matters, such the to Scotland; Scottish culture, Copenhagen conference on climate manufacturing and produce are change and the Nuclear well-known throughout the world; Non-Proliferation Treaty Review and events such as Scotland Week Conference. and Homecoming 2009 place Scotland, its heritage and its SCOTLAND’S FUTURE ROLE contribution to the modern world on the global stage. Since devolution, External relations recommendations of Scotland has developed a more the Commission on Scottish Devolution formal international role, for example contributing to international 8.5 The Commission recognised the development, particularly in Africa. importance of the European Union to Scotland, and made several 8.4 Under the current constitutional recommendations to strengthen the settlement, foreign affairs are role of Scottish Ministers in reserved to the United Kingdom for formulating the United Kingdom’s formal international purposes, for position, both generally and where example membership of the particular Scottish interests are European Union. Scottish Ministers involved. The Commission also can make representations on issues recommended that there should be a of particular interest to Scotland presumption that Scottish Ministers only through the United Kingdom should be part of the United Kingdom

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delegation when devolved issues are also made several recommendations being discussed, and, similarly, that to improve the relationship between there should be a presumption, the Scottish Parliament and the when practicable, that Scottish United Kingdom Parliament. These Ministers should be able to speak in included more formal channels of support of the United Kingdom communication, particularly where position. legislation involves both devolved and reserved matters, and the 8.6 These recommendations potentially appearance of the First Minister and strengthen the opportunity to reﬂect the Secretary of State for Scotland Scottish concerns in Europe. before relevant committees in the However, Scottish Ministers would United Kingdom Parliament and the still require the agreement of the Scottish Parliament respectively.116 United Kingdom Government to be able to speak, and would not be able 8.8 Some of these recommendations to deviate from the United Kingdom could improve the relationship position. between the Scottish Government and the United Kingdom 8.7 The Commission also made a Government, particularly those that number of recommendations would genuinely improve the designed to improve relations effectiveness of the Joint Ministerial between the Scottish Government Committee. It should be noted, and the United Kingdom however, that any improvements to Government within devolution. the relationship between the These included strengthening the Scottish Government and the United Joint Ministerial Committee in Kingdom Government should ensure various ways, such as increasing the that Ministers are held properly frequency of its meetings and accountable to their own Parliament increasing parliamentary scrutiny of for the exercise of their respective its proceedings. The Commission responsibilities.

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Full devolution Independence

8.9 Scotland could not play a full role in Scotland in Europe international affairs without independence. However, experience 8.12 An independent Scotland would from other countries shows that, even continue membership of the within the current arrangements, European Union, fulfilling the Scotland’s international role could be responsibilities which membership enhanced. brings, and maintaining its political, economic and social links to Europe. 8.10 Devolved governments from both As a nation within the United Belgium and Spain have a right to Kingdom, Scotland is already attend meetings of the European actively involved in, and influencing, Union Council of Ministers when the European Union, is governed by matters within their responsibilities European Union law, and is are being considered. Similarly, responsible for transposing representatives of the German European Union law into Scots law regions – sitting in the upper for devolved subjects. However, as chamber of the German parliament – part of the United Kingdom, have a key role in determining the Scotland is less fully involved in German position for European Union European Union policy-making. discussions of matters within their Scotland derives a range of benefits sole competence. from being part of the European Union, including access to the largest 8.11 Full devolution could give similar single market in the world. Full rights of attendance at Council of membership of the European Union Ministers meetings to Scottish, would allow Scotland to participate Welsh and Northern Irish Ministers, fully in European affairs, and ensure instead of having to rely on the that Scottish interests were goodwill of the United Kingdom represented. Settling the details of Government. Where devolved European Union membership would interests predominate, a Scottish take place in parallel to Minister could speak for the United independence negotiations with the Kingdom as a whole. This principle United Kingdom Government, and applies to other international would cover areas such as number of conferences and meetings, for MEPs and weight in the Council of instance Scotland could also have a Ministers. right of attendance at the International Climate Change 8.13 Scotland would represent its own Negotiations in Copenhagen. national interests within the European Union, in the same way as other member states,117 influencing directly the overall direction of European

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Union policy, as well as raising 8.16 In an increasingly globalised world, Scotland’s profile as a responsible membership of organisations such as and active European nation. the United Nations, the Commonwealth, the World Health 8.14 As a full member of the European Organisation, the Organisation Union, Scotland would have greater for Economic Co-operation and representation across the European Development and the World Union’s various institutions and Trade Organisation would cement bodies. Within the United Kingdom, Scotland’s place in the international Scotland has six MEPs, but community. Through these independent countries of a organisations, Scotland could comparable size to Scotland, such promote its national interests as Denmark, have thirteen MEPs as globally, representing the views representation is calculated so that and interests of its people, and there are proportionally fewer MEPs engaging with other states as an for larger member states than for equal partner. Scotland would also smaller ones. An increase in the play a full role in considering and number of Scottish MEPs would addressing issues like peace and war, widen the range of committees on reconciliation and climate change. which they could serve, further As part of the United Kingdom, increasing Scotland’s influence. Scotland already has links to such Scottish Government Ministers organisations, but is not a full member would sit on the Council of the of most. Independence would enable European Union, the organisation’s Scotland to play a full role in each of principal decision-making body. these organisations, with the same rights and responsibilities as all 8.15 An independent Scotland would also other full members. have greater representation on other European Union bodies, 8.17 As part of the global community, including the Economic and Social an independent Scotland would Committee and the Committee of establish a diplomatic service, as the Regions. As a full member, well as a government department Scotland would be eligible to serve to deal with international affairs.118 as President of the Council of the Scotland has already established European Union, which rotates on its own offices in certain strategic a six-monthly basis between all overseas locations (Brussels, members. Scotland would have Washington DC and Beijing) to a strong and consistent voice in represent key interests. Through Europe to argue for its own national Scottish Development International, interests, as well as representing which promotes Scottish international Scottish views on wider European trade and inward investment, Scotland Union matters. also has a presence in 21 other locations. Scotland would be well-

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placed to build a strong diplomatic disagreements over areas of service, promoting Scottish political responsibility, allowing the and economic interests, as well as development of a stronger Scottish culture, and offering partnership between the Scottish protection to Scottish citizens. This Government and the United would be an important element of Kingdom Government. Scotland’s full role in the international community. 8.19 Independence would require intergovernmental machinery to Scotland and the United Kingdom manage a new relationship and to gain maximum beneﬁt from the 8.18 On independence, relations between Scotland-United Kingdom Scotland and the rest of the United partnership. Existing structures, Kingdom would be conducted on an such as the Joint Ministerial equal footing between two Committee, should serve as a useful sovereign governments. This should model. Other existing bodies, such lead to an improved relationship as the British-Irish Council, would between the Scottish Government remain relevant after independence and the United Kingdom (see Box 13). Government, which is sometimes strained by the devolution 8.20A new partnership between the settlement, particularly around areas Scottish Government and the of contention. While areas of United Kingdom Government would difference would exist – as is support cross-border institutions common between neighbouring and bodies which continue to exist nations – independence would after independence. There would remove ambiguities and also be beneﬁts to Scotland and the United Kingdom retaining a strong political relationship when dealing with the European Union.

8.21 As equal sovereign states, Scotland and the United Kingdom would be able to work together in a strong partnership on areas of mutual interest and advantage. An intergovernmental mechanism should be created to help manage this relationship. This would help ensure that areas of common interests were reﬂected and advanced in European Union decision-making.

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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 of Jersey, Guernsey and the Isle of Man. Arising out of the Agreements underpinning the peace process in Northern Ireland, the Council is a forum for ﬁnding and progressing areas of collaboration between all the member administrations to develop policy solutions to common challenges. Each Member Administration has an equal voice at the Council, and decisions are taken by consensus. It would therefore make no difference to the Council’s composition or operation if Scotland were to become a sovereign state. It would continue as a valuable means of exchanging experience and opinions, and agreeing future work to beneﬁt all the administrations represented. The Council provides a good model for positive inter-governmental relationships in which mutual respect is paramount, and Scotland will continue to support its consolidation. 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.

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Scotland’s defence, security and Who will qualify for resilience 8.23 Scotland is currently unusual as a citizenship of Scotland nation in that it does not have should/when it responsibility for matters of national defence. The Scottish Government, becomes independent? unlike those in other nations, is (Written response to the National Conversation, August 2007) unable to determine the levels of spending on defence, or indeed how 8.22 Citizenship in an independent much of that spending occurs in Scotland will be based upon an Scotland; it is unable to decide on inclusive model. Many people in whether our young men and women Scotland have ties to the rest of the are sent to participate in conﬂicts United Kingdom, including familial, such as the Iraq war; and Scotland is social and economic connections. An unable to decide whether or not independent Scotland could nuclear weapons are based on our recognise the complex shared territory. That is the defence status history of Scotland and the United quo for Scotland, with these issues Kingdom by offering shared or dual and others decided outwith Scotland. citizenship. As a member of the European Union, Scottish citizens 8.24 A central function of government is would have free access across to ensure the security of its citizens Europe. and to protect them, their property and way of life against threats. Governments also plan and act to ensure that society can withstand and react to major emergencies, whether natural or man-made.

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8.25 Working to ensure the security of its 8.27 These challenges require a range of citizens and protect their prosperity responses: traditional policing of and way of life against internal and serious crime; the use of intelligence external threats is a normal and and technology to assess threats; natural function of government and planning for recovery from serious one carried out effectively by every incidents; and appropriate military other nation state in the European capabilities and partnerships. Such Union. Other partner nations have practical measures should be the full range of responsibilities complemented by core values, such including defence, security and as respect for human rights and the resilience, each of which plays an rule of law. interlocking part in ensuring the security of citizens. Current position

8.26 The security of any state can be 8.28 National security and defence are threatened by hostile states, currently reserved, as are terrorism and serious organised emergency powers.119 Other aspects crime. Security is also affected by of security and resilience planning, technological change, climate such as policing and local authority change, migration, competition for contingency planning, are devolved. resources and international poverty. In practice, there is considerable Societies also need to be resilient to overlap in these functions. For other risks, such as extreme example, although national security weather, pandemic disease, utilities is reserved, Scottish Police forces, failure, and industrial action. funded by and answerable to the Scottish Parliament, implement many aspects of counter-terrorism strategy in Scotland. In the event of a catastrophic emergency in Scotland, the United Kingdom Government would be able to impose emergency regulations and a regional emergency co-ordinator under reserved emergency powers but the planning would rely on devolved agencies such as local authorities and NHS health boards.

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8.29 Almost all decisions about defence Commission on Scottish Devolution and security are taken by the United Kingdom Government, with no 8.30The Commission concluded that formal role or consultation with the national defence and security are Scottish Government or Parliament. irreducible functions of the State.120 Most prominently, decisions about The Commission was of the view the deployment of United Kingdom that all parts of the United Kingdom Armed Forces, for example to must remain joined together for Afghanistan or Iraq, are solely for defence and national security and the United Kingdom Government. there should be “no risk of a lack of Decisions about defence clarity” over responsibility. procurement and defence facilities within the United Kingdom can have 8.31 The Commission did not discuss the a signiﬁcant impact on Scotland’s existing relationship between economy. Neither the Scottish defence, security and resilience, nor Parliament nor Government has any the current overlap of reserved and formal role in these considerations devolved policy responsibility, and there is no requirement for them funding and agencies. It noted, in to be consulted or even informed. the context of Inter-Governmental The decision remains entirely within relations, that existing arrangements the United Kingdom Government, as for coordination in emergencies do decisions on testing depleted were well developed and had been uranium weapon systems in Scotland, tested most recently in the outbreak and basing the United Kingdom’s of the Inﬂuenza A virus (sub-type nuclear deterrent on the Clyde. H1N1). However, the Commission noted that these were pragmatic arrangements and that Ministers from devolved administrations participated by invitation of the United Kingdom Government.121 The Commission made no recommendations to put these arrangements on a more formal footing for future clarity.

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Full devolution 8.34 Scottish Ministers could be given a more formal role on significant 8.32 National security and defence are decisions affecting Scotland, for seen as central to the functions of a example the closure of a military nation-state, and therefore difficult base, particularly where these to devolve to Scotland within the decisions have significant economic United Kingdom.122 The experience impact, or the units support civil of other countries suggests that authorities in Scotland (such as defence policy would almost search and rescue detachments and certainly remain reserved to the bomb disposal units). Scottish United Kingdom Government. Ministers could be consulted on such However, there are improvements to proposals, and disagreements could the overall arrangements for defence, be taken to an inter-Governmental security and resilience that could be machinery, perhaps the Joint made to enhance the effectiveness Ministerial Committee. of current arrangements. 8.35 Taking the country to war is the 8.33 The reservation of emergency most serious decision the United powers could be removed, to Kingdom Government can take. emphasise the need for the United Under current proposals the United Kingdom and devolved Kingdom Parliament would gain a administrations to work together in formal role in decisions to deploy emergencies. In practice, the United Kingdom Armed Forces Scottish Parliament and Government overseas.124 Extending this principle would have a role in the exercise of and consulting the other national the emergency powers, particularly Parliaments and assemblies would in devolved areas. To recognise this, recognise the supreme importance the ability to make regulations could of such a decision to the United be exercisable by either Scottish or Kingdom, and its constituent nations. United Kingdom Ministers as appropriate, on the model of shared and community law powers under the Scotland Act.123

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Independence

8.36 Independence would give Scotland 8.37 There are a number of key tasks that full responsibility for matters of similar nations undertake to support defence, security and resilience, like these key objectives: other nations. Independence would allow Scotland to decide an • securing territorial integrity approach to these issues that best • working with other nations to ensure fits the national interest, based on regional security internationally accepted objectives • developing partnerships with other for defence and security policy: nations to support peace, build confidence and stability in other • to uphold national sovereignty and parts of Europe and the world secure the territorial integrity of the • supporting agencies responsible for country civil emergencies and security • to secure internal security in the • responding to domestic and face of threats and risks overseas threats to security • in partnership with other nations, to • ensuring the nation is prepared to help to prevent and resolve conflicts deal with any domestic emergency and war anywhere in the world • ensuring appropriate and • in partnership with other nations, to responsible care for veterans further peaceful development in the world with due respect for human There would be a range of choices rights to be made for Scotland’s independent defence and security policy, including the size and cost of Scotland’s defence capability, international defence alliances and its general approach to defence and international affairs.

What defence strategy would an independent Scotland adopt? (Jedburgh National Conversation event, 29 April 2009)

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8.38 For example, Scotland could focus primarily on securing its territory, compared to the United Kingdom approach of also having the capacity to conduct overseas wars. It could support United Nations peace keeping operations and international disaster relief with specialist units, such as medical or engineering corps as well as providing expert civilian and military training support. It could continue to contribute to peace enforcement operations, like those in the Balkans, and actively participate in the European Security and Defence Policy of the European Union.

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8.39 Each of these defence options has developing the expertise and opportunities and costs (although capability to play a full part in current United Kingdom international efforts to address Government defence spending in terrorism, and other threats, and Scotland is proportionately lower respond to natural and man made than in the rest on the United disasters, continuing the prominent Kingdom – see Box 14), and there global role that Scots have played are different models from similar over many years. countries in Europe, and beyond. Given the importance and Alliances complexity of the issues involved, an independent Scotland would require 8.42 An independent Scotland would a strategic defence review to have choices regarding its formulate and propose national membership of international priorities for defence, and the longer alliances. For example, countries term objectives and structure of such as Norway and Denmark are Scotland’s armed forces. Similar members of NATO whereas defence reviews have taken place at countries such as Finland and a United Kingdom level. Ireland are not. Scotland, and this is the stance favoured by the SNP, 8.40On accession to the Nuclear Non- could co-operate with international Proliferation Treaty, an independent alliances such as NATO through its Scotland would become a Non- Partnership for Peace programme Nuclear Weapons State, taking on while not being a member. the commitments of the treaty to work for nuclear non-proliferation 8.43 Whatever the outcome of a strategic and promote a nuclear weapon-free defence review, an independent world. The United Kingdom’s nuclear Scotland's closest allies would deterrent would not continue to be remain its current partners in the based in an independent Scotland United Kingdom. Continued defence and a Scottish Government would co-operation on training, basing and need to work in partnership with the procurement arrangements would rest of the United Kingdom to beneﬁt both Scotland and the other ensure an appropriate transition nations of the United Kingdom. and relocation.

8.41 An integrated approach to defence, security and resilience would allow an independent Scotland to protect its own citizens, while further

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BOX 14: DEFENCE SPENDING

1. The United Kingdom currently spends a higher proportion of GDP on defence than almost any other European country (2.4%)125 although the level of United Kingdom Government defence spending which takes place Scotland is lower. This expenditure is used to achieve global reach, and conduct overseas deployment (such as Iraq and Afghanistan) as well as maintaining the nuclear deterrent.

2. An independent Scotland, following defence models similar to other European countries, could choose to focus on non-nuclear domestic defence and security and speciﬁc overseas peace-keeping operations. Scottish-based defence industries could beneﬁt from any joint procurement arrangement with the rest of 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 a positive economic impact on the regions and countries where it takes place. For example, military procurement and defence facilities directly support employment, and the wider economy, in the regions they are based. However, Scotland receives a proportionally lower direct economic benefit from United Kingdom Government defence spending than it might expect. Actual direct Ministry of Defence expenditure in Scotland over the five years to 2006/07 was some £4.3 billion less than the population based apportionment of defence spending to Scotland over the same period.126

4. Ministry of Defence employment in Scotland has fallen from 24,200 in 1997 to 17,900 in 2009, a proportionately larger fall than across the Ministry’s activities outside 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 in recent years. In 2007/08 Ministry of Defence expenditure supported 6,000 jobs in the Scottish economy, down from 10,000 in 2003/04.127

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CONCLUSION

8.44Only independence would give Scotland a full voice in international organisations, especially the European Union, and responsibility for its own security and defence policy. This voice would represent Scottish interests, and ensure that Scotland fulﬁlled its potential to contribute to debates on economic matters, energy, ﬁsheries, the environment and on matters of peace and war.

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How will an independent Scottish Government relate to other governments (and organisations) across the current United Kingdom? (Dundee Summer Cabinet, 30 June 2009)

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CHAPTER 9

AMODERNSCOTLAND

OVERVIEW process and the Petitions Committee, which make the Parliament 9.1 Devolution has given Scotland a responsive, and helps maintain modern democratic Parliament, accountability. The Scottish open and accessible to the people, Government has pioneered innovative and elected on a proportional basis. consultation on signiﬁcant policy Coalition and minority governments making. Both have demonstrated a have held ofﬁce successfully, commitment to engaging with the demonstrating the adaptability of whole of Scotland by taking the Scottish political parties to new parliamentary committees and the ways of working together and Scottish Cabinet out of Edinburgh governing. and around the country.

9.2 The Scottish Parliament and 9.4 These features of today’s Scotland Government have taken a range of indicate the direction for an decisions that have affected each independent Scotland: a modern and every citizen of Scotland, and country where the democratic have demonstrated that Scotland process provides transparency and can govern itself effectively. The accountability. Independence for Scottish Parliament and the Scottish Scotland would bring these Government have both become advantages to the whole range of central parts of Scottish life. People government activity, including all the in Scotland routinely trust these key issues currently dealt with by institutions more than their the United Kingdom Parliament and Westminster counterparts, and look Government in their traditional way. to them to make the decisions which affect Scotland.128 9.5 Responsibility for decision making within Scotland is shared between 9.3 Democracy in Scotland is central and local government based underpinned by key principles such on mutual esteem and respect. as power sharing and participation, Scotland should encourage a culture which make Scottish governance of responsibility and independence distinct from the rest of the United at all levels, with decisions being Kingdom. The Scottish Parliament taken at the right level to reﬂect provides genuine access for the speciﬁc local needs, as well as those people, through the legislative of the nation as a whole.

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CONSTITUTIONANDGOVERNMENT

The founding principles of the Scottish Parliament

9.6 Those establishing the Scottish • both parliamentary committees Parliament deliberately set out to and the Scottish Cabinet take the build a modern system of governance, process of government to all parts particularly compared to the United of the country Kingdom. A Consultative Steering • participation and engagement Group was set up to consider how is built into work of government, the Scottish Parliament would parliament, local government and operate,129 and indentified founding wider public sector principles to govern the relationship between people, parliament and the 9.8 The electoral system has also state in Scotland: played an important role in opening up government in Scotland and in • power sharing sharing responsibility between the • accountability executive branch and the Parliament • access and participation itself. The proportional voting • equal opportunity system has ensured that the Scottish Parliament more closely reflects the 9.7 The Scottish Parliament has views of the people of Scotland, and successfully put into practice the that parties have had to form principles on which it was founded: Parliamentary majorities in new ways, either through coalition or • the petitions system makes the through issue-by-issue negotiations Parliament accessible and improves by a minority government. These accountability advantages have now been • the legislative process gives civil introduced to local government society and individuals significant in Scotland. opportunities to participate before and during the formal Parliamentary processes

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Current position Scottish Parliament itself should be consulted and agree to any variation 9.9 Aspects of the constitution, in its responsibilities. However, this including the United Kingdom is a constitutional convention, not a Parliament and the Union of the rule of law, and relies on the United Kingdoms of Scotland and England, Kingdom Parliament exercising are reserved to the United Kingdom self-restraint in its use of its institutions by the Scotland Act. The responsibilities. system of government that has been successfully built up over the last 9.11 Legislation regarding local ten years is, therefore, subject to government is already largely amendment – or even abolition – devolved to Scotland. Scottish by the United Kingdom Parliament. Ministers are elected to set the direction of policy and the over- 9.10 Also reserved are fundamental laws arching outcomes that the public which underlie the existence and sector in Scotland is expected to actions of the Scottish Parliament achieve. Local government has and the Government, most obviously responsibility to develop services most of the Scotland Act and the which deliver outcomes in ways that legal mechanisms for safeguarding reflect local priorities. The Scottish human rights in Scotland. These can approach to local government is also be altered by the United based on mutual respect and Kingdom to affect the competence partnership, based on key principles: of the Scottish Parliament. For example, the Scottish Parliament • central and local government are cannot legislate in a way equal partners at the centre of incompatible with human rights. governance in Scotland However, while the United Kingdom • local authorities are democratically Government can be expected to constituted bodies with autonomy comply with its international to deliver in the best way that they obligations, legally the United see fit for their local communities Kingdom Parliament could amend • central and local government should the mechanisms for protecting work together to develop policy and human rights, altering the agree the financial settlement fundamental relationship between associated with delivery of policy the legislature and the citizen. There priorities are some safeguards, in that the

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Constitutional recommendations of the 9.13 However, the Commission does not Commission on Scottish Devolution develop this concept fully. A more useful proposal would be that the 9.12 One recommendation of the Scottish Parliament decides when it Commission is that the Scottish should acquire competence over an Parliament could be permitted by issue, recognising its position as the the United Kingdom Parliament to elected national assembly of legislate on a one-off basis in Scotland. This would follow the relation to reserved matters. This model of the 1931 Statute of mechanism might improve the Westminster for the Dominions, efﬁciency of the legislative process such as Canada and Australia. when Scottish legislation involves reserved matters. At present, Full devolution reserved issues have to be dealt with separately by means of an order in 9.14 Full devolution of constitutional the United Kingdom Parliament. affairs would mean that the Scottish There are potential advantages in Parliament was responsible for all of being able to include such provisions its procedures and its own directly in Acts of the Scottish competence. The Parliament could Parliament. therefore adjust its electoral system, or its membership, or its statutory Committee structure. Perhaps more importantly, it could decide to acquire competence over issues currently reserved to Westminster. This could be either a unilateral process, or the United Kingdom Parliament could agree to proposals, similar to the system under the Government of Wales Act 2006. With full devolution Scotland could have its own civil service, similar to Northern Ireland.

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9.15 Full devolution on this model 9.18 The current constitutional would recognise the position of the arrangements, with the Queen as Scottish Parliament as the elected, Head of State of an independent democratic voice of a sovereign Scotland, a Scottish Parliament and Scottish people, enabled to Government modelled on the determine the best form of existing institutions, and continued government for the nation. It might membership of the European Union, be that certain amendments to the would provide a robust and tested responsibilities of the Parliament, for constitutional framework for example on foreign affairs, require Scotland in the event of the transition negotiation and agreement with the to independence. Some adjustments United Kingdom. A signiﬁcant would be needed to the relationship package might need or beneﬁt from with existing United Kingdom bodies the direct agreement of the people where new partnership arrangements in a referendum. were agreed.

9.16 Recognising the sovereignty of the 9.19 An independent Scotland could Scottish people with a devolved consider further progress, for Parliament which can alter the example removing the religious settlement itself would be compatible discriminatory aspects of the with Scotland remaining within the succession to the throne, or United Kingdom. Sovereignty would formulating and agreeing a fully only lead to independence if the codiﬁed and written constitution. people of Scotland wish. These issues would be decided within Scotland, either by the Scottish Independence Parliament, or, as at the moment for major constitutional change, through 9.17 An independent Scotland would a referendum. be responsible for its entire constitution, from the Head of State to the rights of individual citizens, subject to international obligations such as European Union membership.

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ELECTIONS

Current position

9.20Responsibility for elections to 9.21 There are now four different the House of Commons, the voting systems in use in Scotland. European Parliament and the First past the post for United Scottish Parliament is reserved; Kingdom Parliamentary elections; responsibility for local the additional member system government elections is (AMS) for elections to the devolved, although the franchise Scottish Parliament; single for these elections is reserved. transferrable vote (STV) for local government elections; and a closed party list system for elections to the European Parliament.

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Election recommendations of the of Scotland. With full devolution of Commission on Scottish Devolution responsibility for elections, the Scottish Parliament could consider 9.22 The Commission recommended that the most appropriate voting system the responsibilities of the Secretary – perhaps STV in line with Scottish of State for Scotland relating to local government elections – and the the administration of elections to voting age. The Scottish Parliament the Scottish Parliament should be could also examine more devolved, which would transfer imaginative ways to increase voter administrative responsibility. participation following its decision Legislation for Scottish elections to decouple local government and would continue to be the Scottish Parliamentary elections. responsibility of the United Kingdom Parliament and Government. Independence

9.23 The Gould Report into the combined 9.25 The main electoral effect of local government and Scottish independence would be that Scotland Parliamentary elections of 2007 no longer returned Members of was clear that fragmentation of Parliament to Westminster. Scotland responsibility was a major factor in would no longer use the ﬁrst past the problems encountered.130 The the post system for any of its Gould report concluded that the elections, and would use only Scottish Parliament should have full proportional voting systems. responsibility for the Scottish Parliamentary elections. The 9.26 Scotland would also be free to choose Commission’s recommendation its system of electing Members of would actually lead to further the European Parliament, which is fragmentation of decision-making currently decide by the United risking greater problems. Kingdom. The method chosen would depend on the number of MEPs Full devolution Scotland secures in negotiation, which is likely to be more than the 9.24 Full devolution of Scottish current six (Denmark, of comparable Parliamentary elections would bring size to Scotland, has 13 MEPs). accountability closer to the people

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CONCLUSION

9.27 It has long been a part of Scottish 9.28 The sovereignty of the people of constitutional tradition that the Scotland could be recognised legally people of Scotland should be able to and constitutionally within the decide their own constitutional United Kingdom if the Scottish arrangements. However, the Scottish Parliament had full responsibility Parliament does not currently have for determining its own functions the responsibility for determining and role, as well as its structure and the best way of governing the elections, consulting either or both nation, as aspects of the constitution the Scottish people (by way of are reserved to the United Kingdom. referendum) and the United Kingdom Parliament. There are precedents for such a model. However, independence would provide the Scottish people and their Parliament with the fullest responsibility for their own government.

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CHAPTER 10

CHOOSING SCOTLAND’S FUTURE

INTRODUCTION range of views and that range of views should be heard: and not just 10.1 As a nation, Scotland can be proud the views of the political and civic of its achievements over the last establishment – everyone in 10 years. The Scottish Parliament Scotland should be given the has introduced innovative and opportunity to have their say. successful reforms, making a real difference to the lives of the people INVOLVINGTHEPEOPLE of Scotland. Two-thirds of those living in Scotland now want the 10.4 Ensuring the public can participate Scottish Parliament to have more in the democratic process is a responsibilities and 70% want it to central tenet of modern Scottish have the most inﬂuence over the society. The Claim of Right of 1989 way Scotland is run.131 reafﬁrmed an ancient Scottish tradition which asserts that it is the 10.2 This paper provides a vision of the people of Scotland that are further opportunities for Scotland if sovereign. the Scottish Parliament’s responsibilities were extended in 10.5 During and after the restoration of order to allow for independence. The the Scottish Parliament, the nation current economic situation reinforces has sought to be defined by a the arguments for ensuring that more inclusive form of democracy Scotland can determine its own than that which prevails in the economic policies. The international United Kingdom Parliament. situation raises important and Indeed the founding principles of relevant issues of peace and war. The the Scottish Parliament include crisis in British democracy shows the access and participation, principles potential for a better system of that the Parliament has worked government for Scotland, which assiduously to embed into its day might be an example for the rest of to day work. The Scottish the United Kingdom. Parliament is now one of the most 10.3 The debate about the way forward open and accessible Parliaments in for Scotland encompasses a wide the world.

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10.6 The Scottish Government is ANATIONALREFERENDUM similarly committed to encouraging the participation of the people in shaping policy. This is evident than in the way in which the Scottish As the speakers said, Government has approached the it is the decision of issue of Scotland’s constitutional future. the Scottish people as

10.7 The National Conversation has to what road they been an exercise in participative democracy. The whole process has want to take. It allowed the people of Scotland to should not be express their views on the future direction of the nation, from public politicians who make events held in all parts of Scotland, to publication of policy papers and this decision! an online portal where anyone (Haddington National Conversation event, 28 September 2009) could leave comments and join in 10.9 The Scottish Government believes the debate. that the future prosperity and development of Scotland is best 10.8 The next step is to ensure that the served by becoming an independent whole of Scotland can give its view country, a view shared in the on the extension of the Scottish Parliament by the Scottish responsibilities of the Scottish Green Party. The Scottish Parliament. The Scottish Government favours a referendum Government proposes that a which presents a clear choice Referendum should be held in between achieving that aspiration Scotland in 2010 to allow that view and the current devolution to be heard. settlement.

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The Scottish Government’s A multi-option referendum preferred option 10.14 However, despite the Scottish 10.10 Under independence Scotland Government’s preference for a would assume the rights and single choice, it acknowledges that responsibilities of a normal there is support within Scotland for sovereign state. This would include a range of positions seeking a all decisions on economic and ﬁscal variety of increased responsibilities affairs, currency, the constitution, for the Scottish Parliament. During foreign affairs, security and defence. the National Conversation such Scotland would be recognised as a support has been heard at town state by the international community hall meetings, and the National and be part of the European Union Conversation policy papers have as a full member state. included information on at least two such options. 10.11 The opportunities and challenges of independence for speciﬁc policy 10.15 The Scottish Government also areas have been described in this accepts that a multi-option paper and have been the subject of referendum might be more likely debate and discussion in Scotland to command the support of other for many years. Those who favour parties in the Scottish Parliament, if this vision of Scotland will be able they are consistent with their to indicate their support for previous positions on the matter, Scottish Ministers seeking to and it would enjoy a measure of extend the responsibilities of the support within the country. The Parliament to allow for Scottish Government can also see independence to be achieved. some democratic advantage in posing more than one question. Current devolution settlement 10.16 However there is a problem in 10.12 It is accepted that some voters deciding what the other option do not wish Scottish Ministers to should be. It has been suggested take any steps to seek to extend since the Commission on Scottish the responsibilities of the Scottish Devolution reported in June 2009 Parliament. that its recommendations should be placed before the Scottish 10.13 Therefore there will be an people. Those who sponsored the opportunity for those who do not Commission have refused to allow support any extension of current that to happen. In addition, the responsibilities to express that proposals not only fall short of being view in the referendum. a coherent package, but they also fall short of the increase in responsibilities that would normally be seen as requiring referendum 137 A National Conversation – YOUR SCOTLAND, YOUR VOICE

consultation. Furthermore there is eliminate them all. For example, the some doubt as to whether the devolution of broadcasting, parties who previously supported taxation and beneﬁts could form the Commission process are still elements what has been called unanimously in favour of the “Devolution Max”. ﬁscal proposals. 10.19 Unfortunately the various 10.17 There is a further problem in proponents of this approach have suggesting that the Commission yet to bring it forward in a form in recommendations form an which it could provide the basis for option in a referendum. As both a question in a multi-option the Scottish and United Kingdom referendum, although the inclusion Governments support many of the of the concept in the National recommendations, and as the Conversation policy papers, and in Scottish Government has published this paper, will have helped that an approach which would process. implement legislative changes within a matter of months, 10.20The Referendum Bill will be providing the United Kingdom introduced into the Scottish Government agrees, many of the Parliament in early 2010. There proposals could be implemented will therefore be an opportunity well before a referendum could be during the Bill process for one or held. The Scottish Government is more of the opposition parties in also working to attempt to the Scottish Parliament to bring facilitate, with the United Kingdom forward such a proposal. If it were Government and the Scottish brought forward, the Scottish Parliament, early progress on non- Government would be prepared legislative Commission proposals to consider it as a serious option regarding Scottish Parliamentary for inclusion in a multi-option Procedures and inter-governmental referendum. Accordingly the relations. Referendum Bill will be constructed so that the Scottish Parliament can, 10.18 However, there is an alternative if it so chooses, offer the Scottish set of proposals which would people the opportunity to vote for seek to extend the responsibilities a proposal about further devolution of the Scottish Parliament, short of of other responsibilities to the independence. Contributions to the Scottish Parliament as part of a National Conversation have multi-option referendum, even indicated support for a range of though the Scottish Government proposals which reduce the does not favour this option and reservations of policy areas under will not campaign for it. the Scotland Act, but do not

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10.21 A referendum is essential because campaign, and the mechanism for the Scottish Government believes the count. The arrangements will that this debate cannot be conform to or exceed the best restricted to the Scottish international practice. Parliament. The National Conversation has allowed the THENEXTSTEP people to articulate their views, and it is now time for them to be invited 10.23 The Scottish Government intends to express those views in a formal to bring forward the Referendum way. Bill early in 2010. The Scottish Parliament will be invited to pass 10.22 The Bill as introduced will provide the legislation. 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 ﬁnance that can be spent during the

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ANNEXA NATIONALCONVERSATIONEVENTS

DATE EVENT 14 August 2007 Launch of National Conversation and publication of Choosing Scotland’s Future by First Minister Alex Salmond

22 October 2007 Scottish Government summit: Scotland’s future without nuclear weapons

30 November 2007 First Minister delivered St Andrew’s Day lecture on national days and the National Conversation

11 December 2007 Deputy First Minister Nicola Sturgeon gave evidence to the Europe and External Relations Committee of the Scottish Parliament on the National Conversation

11 December 2007 First Minister delivered the Playfair lecture on Scotland, Europe and the National Conversation

4 February 2008 First Minister Alex Salmond opened Scotland in the World at the 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 100 representatives of Scotland’s civic institutions at the University of 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 addressed Churches 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

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DATE EVENT 7 August 2008 Young Scot meeting in Dumfries

13 August 2008 Scottish Cabinet in Pitlochry

26 August 2008 Scottish Cabinet in Skye

30 August 2008 Young Scot meeting in Inverurie

8 September 2008 Scottish Council for Voluntary Organisations in Uist

10 September 2008 Minister for Schools and Skills Maureen Watt in Airdrie

20 September 2008 Young Scot host meeting in Irvine

28 September 2008 Scottish Council for Voluntary Organisations in Perth

29 September 2008 Scottish Council for Voluntary Organisations in Castle Douglas

14 October 2008 Scottish Council for Voluntary Organisations in Inverness

10 November 2008 Deputy First Minister Nicola Sturgeon and Minister for Parliamentary Business Bruce Crawford in Stornoway

12 November 2008 National Discussion Day at the Jam House in Edinburgh with feedback from 5,000 Young Scots who completed online questionnaires

27 November 2008 Scottish Government’s St Andrew’s Day debate at Holyrood

19 January 2009 Cabinet Secretary for Justice Kenneth MacAskill and Minister for Public Health and Sport Shona Robison in Dundee

23 February 2009 Minister for Transport, Infrastructure and Climate Change Stewart Stevenson in Banff

23 March 2009 First Minister Alex Salmond, Cabinet Secretary for Finance and Sustainable Growth John Swinney and Minister for Transport, Infrastructure and Climate Change Stewart Stevenson in Arran

30 March 2009 Council of Ethnic Minority Voluntary Organisations in Glasgow, hosted by Deputy First Minister Nicola Sturgeon

22 April 2009 Council of Ethnic Minority Voluntary Organisations in Edinburgh, hosted by Cabinet Secretary for Education and Lifelong Learning Fiona Hyslop

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DATE EVENT 29 April 2009 Cabinet Secretary for Rural Affairs and the Environment Richard Lochhead and Minister for Culture, External Affairs and the Constitution Michael Russell in Jedburgh 13 May 2009 Cabinet Secretary for Education and Lifelong Learning Fiona Hyslop and Minister for Parliamentary Business Bruce Crawford in Stirling 18 May 2009 Council of Ethnic Minority Voluntary Organisations in Dundee, hosted by Cabinet Secretary for Finance and Sustainable Growth John Swinney and Minister for Parliamentary Business Bruce Crawford 1 June 2009 Cabinet Secretary for Justice Kenny MacAskill and Minister for Children and Early Years Adam Ingram in Kilmarnock 16 June 2009 Minister for Culture, External Affairs and the Constitution Michael Russell and Minister for Schools and Skills Keith Brown in Kirkcaldy 16 June 2009 First Minister Alex Salmond and Minister for Culture, External Affairs and the Constitution Michael Russell in Livingston 22 June 2009 Council of Ethnic Minority Voluntary Organisations in Aberdeen, hosted by Minister for Housing and Communities Alex 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 and Minister for Environment Roseanna Cunningham 29-30 June 2009 Scottish Cabinet meeting in Dundee, followed by National Conversation event 27-28 July 2009 Scottish Cabinet meeting in Melrose, followed by National Conversation event 3-4 August 2009 Scottish Cabinet meeting in Stornoway, followed by National Conversation event 17-18 August 2009 Scottish Cabinet meeting in Aberdeen, followed by National Conversation event 31 August – Scottish Cabinet meeting in Glasgow, followed by National 1 September 2009 Conversation Event

8 September 2009 Minister for Culture, External Affairs and the Constitution Michael Russell launched Europe and Foreign Affairs paper in Brussels

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DATE EVENT 14 September 2009 Cabinet Secretary for Education and Lifelong Learning Fiona Hyslop and Minister for Community Safety Fergus Ewing in Paisley 28 September 2009 Minister for Culture, External Affairs and the Constitution Michael Russell and Minister for Transport, Infrastructure and Climate Change Stewart Stevenson in Haddington 28 September 2009 Minister for Culture, External Affairs and the Constitution Michael 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 for Transport, Infrastructure and Climate Change Stewart Stevenson in Oban 19 October 2009 Cabinet Secretary for Health and Wellbeing Nicola Sturgeon and Minister for Schools and Skills Keith Brown in Hamilton 26 October 2009 Cabinet Secretary for Justice Kenneth MacAskill and Minister for Housing and Communities Alex Neill in Dalkeith 2 November 2009 Video conference with Minister for Culture, External Affairs and the 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 Swinney and Minister for Children and Early Years Adam Ingram in Ayr 9 November 2009 Minister for Culture, External Affairs and the Constitution Michael Russell delivered lecture on the debate about Scotland’s constitutional future at Constitution Unit, University College London 16 November 2009 Cabinet Secretary for Justice Kenneth MacAskill and Minister for Environment Roseanna Cunningham in Port Glasgow 19 November 2009 Minister for Children and Early Years Adam Ingram and Minister for 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 National Conversation economy-based events with a wide variety of groups throughout Scotland. 143 A National Conversation – YOUR SCOTLAND, YOUR VOICE

ANNEXB ORGANISATIONSCONTRIBUTINGTO THENATIONALCONVERSATION

Many individuals and organisations have attended or been represented at National Conversation events, including the following:

Aberdeen Airport Armadale Community Council Aberdeen and Grampian Chamber of Armadale Community Education Commerce Association Aberdeen City Council Armour and Partners Aberdeen College Armstrong Landforce Aberdeen Council of Voluntary Arran Adventure Company Organisations Arran Ferry Committee Aberdeen Greenspace Arran Haulage Aberdeen International Centre Arran High School Aberdeen Performing Arts Arran Windpower Ltd Aberdeen Tenants Association Ashley and Broomhill CC Aberdeenshire Council Aspire 2gether Addaction Association of Scottish Community Adult Protection Committee Councils Afasic Scotland Athelstaneford Parish Church All Saints Church Glasgow Auchtermuchty and Strathmiglo Anderston Sanctuary Tenants & Community Council Residents Association Autism Argyll Angus Council Autism Rights Angus Housing Association Avich & Kilchrenan Community Council Apex Scotland Ayr Careers Centre Appin Community Council Ayrshire & Arran Alcohol and Drug Arac Action Team Ardler Village Trust Ayrshire Housing Ardlochrig Tenants and Residents Baker Tilly Tax and Accounting Limited Association Ballantrae Community Council Ardrossan Community Council Banff and Buchan College Argyll & Bute Council Banner Residents Association Argyll Technologies BDA Council

144 A National Conversation – YOUR SCOTLAND, YOUR VOICE

BEAR Scotland Cassillis Estate BEEM & East Lothian Resident & Tenants Castle Tenants & Residents Association Panel Cathedral of St Mary's of Assumption Befrienders Catherine's Country Kitchen Belhelvie Community Council Central Buchan Berwickshire Housing Association Centre for Stewardship Better Government for Older People Certex Accounting Black and Ethnic Minorities Infrastructure Chair Caderwood Community Council in Scotland (BEMIS) Changing Places Blackridge Community Council Cherry Road Centre Blairgowrie & East Perthshire Tourist Christ Church Association Church of Scotland Bon Accord Free Church of Scotland Citizens Advice and Rights Fife Border Curling Development Group Citizens Advice Bureau Borders Common Riding Association CL Research Borders Family History Society Clackmannanshire Council Borders Independent Advocacy Service Clyde Gateway URC Borders Sport and Leisure Clyde Valley Community Council Bower, Halkirk-Westerdale and Watten Clydebank College Parishes Coal Industry Social Welfare Boys Brigade Organisation Braidhouse COAST British Deaf Association Comhairle nan Eilean Siar Broomhill Community Council Community Integrated Care Broxburn Academy Parents Council Community Learning and Development Broxburn Family Centre Community Links Brunton Court Tenants Group Convenor Orkney Islands Council Buccleuch Group Cornbank Primary School Burns Festival Trust Cornerstone Cairn Valley & District Community Cowal Community Hospital Council Craigengillan Calderwood Community Council Cranshaws, Ellemford & Longformacus CalMac Ferries Ltd Cranston Nurseries Ltd Cameron Riddell Associates Crescent Moon Music Ltd Capability Scotland Crofters Commission Cardonald College Currie & Brown United Kingdom Limited

145 A National Conversation – YOUR SCOTLAND, YOUR VOICE

CXR Biosciences Ltd Eildon Group Dairsie Community Council Ellon and District Datec Technologies Limited Emergency Care Centre David MacBrayne Ltd Emtelle United Kingdom Ltd Deans Community High School ENABLE Playgroup Ettrick & Yarrow Community Council Dougarie Estate Fairbridge Drongan Tenants and Residents Fairlie Community Council Association Falkirk Council DSL Business Finance Federation of Small Businesses Dumfries & Galloway Federation Fife Council Dumfries and Galloway Constabulary Fife Scottish Youth Parliament Dumfries and Galloway Council Fife Youth Forum Dunbar Community Council Fios Dunbar Parish Church Fire Brigade Union Tayside Dundee and Angus Chamber of Fisherton Church Commerce Floors Makerstoun Nenthorn & Smailholm Dundee City Council Community Council Dundee College FOANSLAG Tenants and Residents Dundee Voluntary Action Association Dunmure Community Council Forestry Commission Scotland Dunpender Community Council Fort, Seaﬁeld and Wallacetown East Ayrshire Council Community Council East Lothian & Midlothian Community Free Church of Scotland Health Partnerships Friends of the West Highland Lines East Lothian & Midlothian Community Society Partnership Furnance Community Council East Lothian Council Fyvie Homecoming Festival East Lothian Fishermen's Association GATE East Lothian Public Partnership Gavinton, Fogo & Polwarth Community East Lothian Tenants and Residents Council Panel Girvan Community Council East Renfrewshire Council Glamis Castle Edinburgh Pharmaceutical Processes Ltd Glasgow Chamber of Commerce Ednam, Stichill & Berrymoss Community Glasgow City Council Council Glasgow College of Arts

146 A National Conversation – YOUR SCOTLAND, YOUR VOICE

Glasgow Metropolitan College Institute of Local Television Glasgow Works Inverurie and District Glenburn Surgery Islands Book Trust Gordon & Westruther Community J Rutherford (Earlston) Ltd Council Jedburgh Alliance Govan C Residents Association Jedburgh Community Trust Grampian Police Jewel & Esk College Grandparents Apart Self Help Group John Wheatley College Kilmarnock Justice and Peace Scotland Guthrie Group Ltd Keep Scotland Beautiful Hairmyres Hospital Kelso Library Halliday Fraser Kennoway Community Council Hamilton Old Parish Church Kibble Education Centre Hamilton Park Racecourse Kilmarnock College Hamilton Trinity Parish Church Kinetic Group Harlow Hadden Consulting Engineers King's Park Community Council Harris Tweed Authority Kinross-shire Residents Association Headtown Kirkcaldy High School Hebrides Alpha Project Kirkcaldy West Community Council Highland Alternative Energy Labour Party Highland Council Lanarkshire Chamber of Commerce Highland Theological College Langside College Highlands and Islands Enterprise Largo Area Community Council Hillhouse Lauderdale Development Trust Hitrans Lead Scotland North HMP Peterhead Lewis Sports Centre HMP Kilmarnock Lilliesleaf Ashkirk & Midlem Community Homestart Glasgow Council Horizon Housing Association Lilliesleaf Poultry Housing Initiative for Arran Residents Living Streets Scotland Houston Community Council Loch Lomond and the Trossachs National Howood Community Council Park Hunterhill Community Council Lochaber GoPark Iain More Associates Longside & District Community Council Inclusion Scotland Lothian and Borders Fire & Rescue Institute of Directors Lothian and Borders Police

147 A National Conversation – YOUR SCOTLAND, YOUR VOICE

Lothian NHS Board NHS Grampian Maclay Murray & Spens LLP NHS Greater Glasgow Mains of Tarryblake NHS Highland Board Mann Judd Gordon NHS Lanarkshire Manor, Stobo & Lyne Community Council NHS Orkney Maritime and Coastguard Agency NHS Shetland Maxwellton Court Tenant Association NHS Tayside Medical Research Council NHS West Lothian Meldrum, Bourtie Daviot Community North Ayrshire Council Council North End First Responder Mellerstain Trust North Glasgow College Melville Housing Association North Lanarkshire Council Methihill Primary School Parent Council Northern Lights Regional Network Methodist Church in Scotland Nungate Tenants Residents Association MG Alba Oban Community Council Midlothian & East Lothian Chamber of Oban High School Commerce Oil and Gas Academy Midlothian Council Old Aberdeen Community Council Midlothian Tenants Org OLMC Parish Banff Midlothian Youth Platform Orkney College Molendinar Community Council Orkney Council Momentum Scotland Outer Hebrides Fisheries Trust Moray Council Paisley South Housing Association Moray Firth Coastal partnership Paisley West Community Council Mossblown & St Quivox Community Parent Council West Calder High School Council Partick United Residents Group Mountain Rescue Association Partners in Advocacy Museum nan Eilean Pearce Institute Napier University Peebles Community Council National Trust for Scotland Peeblesshire Federation Network of Community Councils Penicuik Town Hall Newcastleton, Development, Tourism & Penumbra Youth Project Leisure Group Perth & Argyll Conservancy NHS Borders Perth and Kinross Council NHS Fife Perthshire Chamber of Commerce NHS Forth valley

148 A National Conversation – YOUR SCOTLAND, YOUR VOICE

Peterhead North and Rattray Scottish Association of Local Sports Peterhead South and Cruden Councils Planning Together Scottish Auto Cycle Union Portlethen & District Community Council Scottish Beef Cattle Association Positive Solutions Scottish Borders Chamber of Commerce Positive Steps Scottish Borders Council Pöyry Energy (Aberdeen) Ltd Scottish Borders Elder Voice Prestwick and District Branch Scottish Borders Environment Procurator Fiscal Service Partnership Prospective Parliamentary Candidate Scottish Borders Social Enterprise Chamber Queen Margaret University Scottish Borders Tenants Organisation Racial Equality Council Scottish Business in the Community Rathbone United Kingdom Scottish Council for Development and RBS Industry Re-Gen North Scottish Council of Jewish Communities Renfrewshire Council Scottish Council on Deafness Renfrewshire CVS Scottish Crofting Foundation Richmond Fellowship Scotland Scottish Enterprise Riddrie Tenant and Resident Association Scottish Episcopal Church Rosemount Flexi Centre Scottish Flood Forum Roses Charitable Trust Scottish Genealogy Research Rothera Group Scottish Health Council Borders Royal Burgh of Selkirk and District Scottish National Heritage Community Council Scottish Natural Heritage Royal National Mod Scottish Pre-School Playgroup Royal Scottish Geographical Society Development Worker Salvation Army Scottish Prison Service SAMH Scottish Qualiﬁcations Authority Sandback Community Council Scottish Tenant Farmers Association Sandwick Community Council Scottish Traditional Boat Festival School Leaders Scotland Scottish Water Scotland Transerv Scottish Youth Parliament Scottish Agricultural College Scottish Youth Theatre Scottish Agricultural College Farm Seabird Centre Business Services Selkirk Regeneration Group

149 A National Conversation – YOUR SCOTLAND, YOUR VOICE

SEPA Tenants & Residents Association of SEStran Kemnay Shell Tenants and Residents Association Shetland Islands Council The Bridge Shieldhall Tenants and Residents The Cyrenians Association Theatre Hebrides Skills Development Scotland Third Sector Hebrides Smithy Croft High School Thornﬁeld House Smithy House Associates Thurso Community Council Soroba Young Family Group Tilhill Forestry Ltd South Ayrshire Council Todd Associates South Lanarkshire Council Trade Union Council Springﬁeld Community Council Transition Arran SPT Traquair House SRPBA Trinity Church SSPCA Troon St Meddan's Parish Church St Benedicts Church Trustee Reform Scotland St John's Church Tullibody, Cambus & Glenochil St John's Episcopal Church Community Council St Mary's Church Turriff and District Heritage Society St Patricks Church Turriff Community Council St Philamena's Primary Tweeddale Sports Council Stirling Council Tyron Parish Hall Committee Stirling Smith Art Gallery and Museum University of the Highlands and Islands Stirling University Lews Castle College Stornoway Amenity Trust Unison Strathclyde Fire & Rescue UNISON Lanarkshire Health Branch Strathclyde Forensics Unite Strathclyde Hospital University of Abertay Strathclyde Police University of Dundee Strichen and Tyre Church University of Dundee Stirling Council University of Strathclyde STUC University of the West of Scotland TACTRAN University of Abertay Tarbert & Skipness Community Council Uphall Community council Tay Screen Video Goodwill

150 A National Conversation – YOUR SCOTLAND, YOUR VOICE

Visit Scotland The following organisations also made Voluntary Sector Strategy Group formal written submissions to the Volunteer Centre West Lothian National Conversation: Walking Support British Energy Wallyford Community Council Ecas West Church Educational Institute of Scotland West End Community Council Glasgow Caledonian University West Lochfyne Community Council Institute of Chartered Accountants of West Lothian College Scotland West Lothian Council Institute of Local Television West Lothian Drug & Alcohol Service National Trust for Scotland West Lothian Drug Actions Team Reform Scotland West Lothian FSB Scottish Association for Public Transport West Lothian LEADER Coordinator Scottish Competition Law Forum West of Scotland Housing Association Scottish Consumer Council Westburn Village Neighbourhood Council Scottish Federation of Housing Western Isles Health Board Associations Western Isles Library Service Scottish Refugee Council Westhill & Elrick Community Council Statistics Commission Westhill and District University of Edinburgh Westhill Community Council West Lothian Council Whitehall Theatre Willow Wood Community Wireless Infrastructure Group Word Fringe Young Scot

151 A National Conversation – YOUR SCOTLAND, YOUR VOICE

ENDNOTES

1 “We, gathered as the Scottish Constitutional http://www.publications.parliament.uk/pa/ Convention, do hereby acknowledge the sovereign cm200809/cmls://s/142/09142.i-iv.html. right of the Scottish people to determine the form 13 of Government best suited to their needs, and do http://allwalesconvention.org/?skip=1&lang=en. hereby declare and pledge that in all our actions 14 and deliberations their interests shall be Independent Commission for Funding and Finance paramount.” Owen Dudley Edwards, Claim of Right for Wales, Funding devolved government in Wales: for Scotland (Polygon, 1989). Barnett & beyond (July 2009), http://wales.gov.uk/ icffw/home/report/ﬁrstreport/?lang=en. 2 The 1997 referendum offered three options to the 15 Scottish people: the status quo, a Parliament Scottish Government, The Scottish Government’s without tax varying powers, and a Parliament with Response to the Recommendations of the tax varying powers. Scottish Parliament, “The Path Commission on Scottish Devolution (November to Devolution”, http://www.scottish.parliament.uk/ 2009), http://www.scotland.gov.uk/ vli/history/pathtodevolution/index.htm. Publications/2009/11/09152544/0.

16 3 See Scottish Government, Choosing Scotland’s Further details on many subjects can be found in Future: A National Conversation – Independence the National Conversation policy papers listed at and Responsibility in the Modern World (August paragraph 1.18, and on the National Conversation 2007), paragraphs 1.5 – 1.13, chapter 2 and Annex A website at http://www.scotland.gov.uk/Topics/ http://www.scotland.gov.uk/Publications/2007/ a-national-conversation. 08/13103747/0. 17 Scottish Government, Choosing Scotland’s Future 4 Department for Constitutional Affairs, Devolution (August 2007), 4-5, http://www.scotland.gov.uk/ Guidance Note 10: Post-Devolution Primary Publications/2007/08/13103747/0. Legislation affecting Scotland (last updated 18 November 2005), http://www.dca.gov.uk/ See Commission on Scottish Devolution, The Future constitution/devolution/guidance/dgn10.pdf. of Scottish Devolution within the Union: A First Report (December 2008), 60-64, 5 See Scottish Government, “Move to close damages http://www.commissiononscottishdevolution.org. loophole” 1 April 2009, http://www.scotland. uk/uploads/2008-12-01-vol-1-ﬁnal--bm.pdf. gov.uk/News/Releases/2009/04/01140512. 19 See Scottish Government, The Government 6 Scottish Government, Choosing Scotland’s Future Economic Strategy (November 2007), (August 2007), http://www.scotland.gov.uk/ http://www.scotland.gov.uk/Publications/ Publications/2007/08/13103747/0. 2007/11/12115041/0.

20 7 http://www.anationalconversation.com. See Scottish Government, The Government Economic Strategy (November 2007), 8 Full details of the National Conversation are on http://www.scotland.gov.uk/Publications/ the National Conversation website: 2007/11/12115041/0. www.anationalconversation.com. 21 See Scottish Government, The Government 9 http://www.scotland.gov.United Kingdom/ Economic Strategy (November 2007), Topics/a-national-conversation/Tell-us/Blog. http://www.scotland.gov.uk/Publications/ 2007/11/12115041/0. 10 HM Government, Building Britain’s Future, 22 http://www.hmg.gov.United Kingdom/ Approximately 70% of total identiﬁable public buildingbritainsfuture.aspx. sector expenditure for Scotland in 2007/08 can be loosely classiﬁed as ‘devolved expenditure’. See 11 See POWER2010, http://www.power2010.org.uk/. Scottish Government, Government Expenditure and Revenue Scotland 2007/08 (GERS 2007/08) 12 Constitutional Reform and Government Bill House (June 2009), Table 6.8, http://www.scotland. of Commons, gov.uk/Publications/2009/06/18101733/0.

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23 It is estimated that a one pence change in the SVR 31 See Jim Cuthbert and Margaret Cuthbert, Open would be worth approximately plus or minus Letter to the Calman Commission: Technical £350 million in 2009/10 and £360 million in 2010/11. Failings in the Calman Proposals on Income Tax, HM Treasury Budget 2009, http:www.hm-treasury. 16 July 2009, http://www.cuthbert1.pwp. gov.uk/bud_bud_09_index.htm. blueyonder.co.uk/; The Scotsman, “Long-term planning is threatened by report”, 17 June 2009, 24 Scottish Government, Borrowing Powers: http://thescotsman.scotsman.com/opinion/ Information to be shared with the Calman Longterm-planning-is-threatened-by.5371689.jp; Commission (March 2009), http://www.scotland. The Scotsman, “Calman panel member warns of gov.uk/Topics/a_national_conversation. 'disastrous' tax changes”, 21 June 2009, http://news.scotsman.com/latestnews/Calman- 25 Bank of England, Monetary Policy Framework, panel-member-warns-of.5386447.jp. http://www.bankofengland.co.uk/ monetarypolicy/framework.htm. 32 For a discussion of full devolution see Scottish Government, Fiscal Autonomy in Scotland: The 26 For example, the Scottish Government believes case for change and options for reform (February that the £12 billion cost of reducing VAT to 15% 2009), http://www.scotland.gov.uk/ announced by the Chancellor at the 2008 pre- Publications/2009/02/23092643/0. budget report, would have been better spent on increasing net investment. Scottish Government 33 See, for example, Andrew Hughes-Hallett et al, analysis has shown that the net effect in terms of Options for Scotland’s Future – the Economic jobs would have been greater. Dimension (David Hume Institute occasional paper no. 80, November 2008), http://www.davidhume 27 Scottish Government, Fiscal Autonomy in institute.com/DHI%20Website/publications/hop/ Scotland: The case for change and options for HOP%2080.pdf, and Reform Scotland, Powers for reform (February 2009), Growth (March 2008), http://www.reformscotland. http://www.scotland.gov.uk/Publications/ com/index.php/publication/view_details/17/. 2009/02/23092643/0. 34 Reform Scotland, Fiscal Powers (2nd edition) 28 GERS 2007/08. (October 2009), http://www.reformscotland.com/ include/publications/ﬁscal_powers_2nd_edition.pdf. 29 For example, the Norwegian Government announced in January 2009 that it would use a 35 See Scottish Government, Fiscal Autonomy: The proportion of its oil wealth to fund a £2 billion case for change and options for reform (February ﬁscal stimulus package. In contrast to other 2009), 25-31, http://www.scotland.gov.uk/ countries, Norway has been able to implement Publications/2009/02/23092643/0. these measures without relying on large increases in government borrowing. The Norwegian 36 Scottish Government, Borrowing Powers: Government projects that it will run a budget Information to be shared with the Calman surplus of 7.4 % of mainland GDP in 2009, higher Commission (March 2009), http://www.scotland. than any other country in Europe. See Scottish gov.uk/Topics/a_national_conversation. Government, An Oil Fund for Scotland: Taking forward our National Conversation (July 2009), 26, 37 Paul Krugman, “Growth on the periphery: Second http://www.scotland.gov.uk/Publications/2009/ winds for industrial regions?”, The Allander Series, 07/28112701/0. University of Strathclyde Business School (2003), http://www.strath.ac.uk/media/departments/ 30 Commission on Scottish Devolution, Serving economics/fairse/media_140850_en.pdf, and Scotland Better: Scotland and the United Kingdom in C. Paul Hallwood and Ronald MacDonald, the 21st Century, Final Report (June 2009), 86-110, The Political Economy of Financing Scottish http://www.commisionscottishdevolution.org.uk/. Government: Considering a New Constitutional Settlement for Scotland (Studies in Fiscal Federalism and State-Local Finance) (Edward Elgar Publishing, 2009).

153 A National Conversation – YOUR SCOTLAND, YOUR VOICE

38 Council of Economic Advisers, minutes of Scottish 45 The Economist, “Where economics went wrong” meeting, 2009, http://www.scotland.gov.uk/ 16 July 2009. Topics/Economy/Council-Economic-Advisers/ Meetings/2009-meetings/2009-meeting. 46 Mervyn King, speech to the CBI Dinner, Nottingham, 20 January 2009, http://www.bankofengland.co. 39 HM Treasury, Financial stability, uk/publications/speeches/2009/speech372.pdf. http://www.hm-treasury.gov.uk/ fin_finstability_index.htm. 47 Scottish Government, Quarterly Gross Domestic Product for Scotland and the UK (updated 40 Scottish Government, The Hypothetical Scottish October 2009), http://www.scotland.gov.uk/ Shares of Revenues and Expenditures from the Topics/Statistics/Browse/Economy/GDP, and HM United Kingdom Continental Shelf 2000-2013 Treasury, Public Finance Databank (updated (June 2008), http://www.scotland.gov.uk/ October 2009), http://www.hm-treasury.gov.uk/ Publications/2008/06/UKContinentalShelfRevenue, psf_statistics.htm. and Alexander G. Kemp and Linda Stephen, Expenditures and Revenues from the UKCS – 48 HM Treasury, Reforming financial markets (July Estimating the hypothetical Scottish Shares 1970- 2009), http://www.hm-treasury.gov. 2005 (North Sea Study Occasional Paper no. 70, UnitedKingdom/reforming_financial_markets.htm. Department of Economics, University of Aberdeen, 1999); The Economist, “History repeats itself” 49 Bloomberg, “Fortis gets ¤11.2 billion rescue from 20 June 2008. governments” 28 September 2009, http://www.bloomberg.com/apps/news?pid=206 41 When a geographical share of North Sea revenues 01087&sid=ahlKDjeO0Lik&refer=home. is included. See GERS 2007/08, 50 See Scottish Government, An Oil Fund for 42 OECD Economic Outlook, Number 84, November Scotland: Taking forward our National 2008. Conversation (July 2009), http://www.scotland.gov.uk/Publications/ 43 Scottish Government, Fiscal Autonomy in Scotland, 2009/07/28112701/0. (February 2009) http://www.scotland.gov.uk/ Publications/2009/02/23092643/0, 18; House of 51 Scottish Government, An Oil Fund for Scotland, Commons Library, The Barnett Formula, research (July 2009) 27, paper 07/91 (December 2007); Independent http://www.scotland.gov.uk/Publications/2009/ Commission on Funding & Finance for Wales, 07/28112701/0. Funding devolved government in Wales: Barnett & beyond (July 2009), http://wales.gov.uk/icffw/ 52 Commission on Scottish Devolution, Serving home/report/firstreport/?lang=en; Hansard HC Scotland Better: Scotland and the United Kingdom vol. 497 col. 292283 (Secretary of State for in the 21st Century, Final Report (June 2009), Scotland on Barnett formula, 14 October 2009), 94 – 96. http://www.commissionscottishdevolution. http://www.publications.parliament.uk/pa/ org.uk/. cm200809/cmhansrd/cm091014/debtext/ 91014-0002.htm#09101435000038; House of 53 Commission on Scottish Devolution, Evidence from Lords, Select Committee on the Barnett Formula, the Independent Expert Group to the Commission The Barnett Formula: Report with Evidence (July on Scottish Devolution: Natural Resource Taxation 2009), HL Paper 139, http://www.publications. and Scottish Devolution (June 2009), 12 – 13. parliament.uk/pa/ld/ldbarnett.htm. http://www.commissionscottishdevolution. org.uk/. 44 Ministry of Justice, Securing the Future: Proposals for the efficient and sustainable use of custody in 54 See Scottish Government, The Government England and Wales (December 2007), Economic Strategy (November 2007), http://www.justice.gov.uk/publications/securing- http://www.scotland.gov.uk/Publications/ the-future.htm. 2007/11/12115041/0.

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55 See Scottish Consumer Council written response 65 CBI, United Kingdom Business Tax: A Compelling to the National Conversation (February 2008), Case for Change (2008), http://www.cbi.org.uk/ http://www.scotland.gov.uk/Topics/a-national- pdf/taxsection01.pdf. conversation/NC-contributions-inds-org. 66 Ofﬁce for National Statistics, Labour Force Survey, 56 Scottish Government, The Government Economic http://www.statistics.gov.uk/Cci/nscl.asp? Strategy (November 2007), section B.1 Growth ID=6621; GERS 2007/08. http://www.scotland.gov.uk/Publications/2007/ 11/12115041/0. 67 GERS 2007/08.

57 Commission on Scottish Devolution, Serving 68 Ofﬁce for National Statistics, Workforce Jobs, Scotland Better: Scotland and the United Kingdom http://www.statistics.gov.uk/StatBase/ in the 21st Century, Final Report (June 2009), 6. Analysis.asp?vlnk=132&More=Y. http://www.commissionscottishdevolution.org.uk/. 69 Scottish Government, Annual Population Survey in 58 Commission on Scottish Devolution, Serving Scotland 2007: A Compendium of Labour Market Scotland Better: Scotland and the United Kingdom Statistics (June 2008), in the 21st Century, Final Report (June 2009), http://www.scotland.gov.uk/Publications/2008/ 173-174. http://www.commissionscottish 06/25095306/0. devolution.org.uk/. 70 Scottish Government, Scotland’s Global Connections 59 Commission on Scottish Devolution, Serving 2007 (March 2009), Scotland Better: Scotland and the United Kingdom http://www.scotland.gov.uk/Topics/ in the 21st Century, Final Report (June 2009), 209. Statistics/Browse/Economy/Exports/GCSData. http://www.commissionscottishdevolution.org.uk/. 71 Scottish Government, Scottish Annual Business 60 See the Educational Institute of Scotland response Statistics 2007 (updated August 2009), to the National Conversation (May 2008), http://www.scotland.gov.uk/Topics/Statistics/ http://www.scotland.gov.uk/Topics/a-national- 16170/4363. conversation/NC-contributions-inds-org. 72 Scottish Enterprise, Energy Baseline Study (2009). 61 Brian Ashcroft and David Bell, The Key to Economic Success in Scotland (Policy Institute, 73 Scottish Government, The Strategy for the 2007), http://policyinstitute.info/research- Financial Services Industry in Scotland, Annual publications/economy/the-key-to-economic- Report 2009 (May 2009), http://www.scotland. success-in-scotland. gov.uk/Publications/2009/05/27091345/0.

62 See Scottish Consumer Council written response to 74 Scottish Government, Scottish Annual Business the National Conversation (February 2008) and Statistics 2007 (updated August 2009), Scottish Competition Law Forum written response http://www.scotland.gov.uk/ to the National Conversation (September 2008), Topics/Statistics/16170/4363. http://www.scotland.gov.uk/Topics/a-national- conversation/NC-contributions-.hds-org. 75 Scottish Government, Food and Drink Key Sector Report (October 2009), http://www.scotland. 63 Scottish Government, Scotland’s Global Connections gov.uk/Publications/2009/10/23153824/0. 2007 (March 2009), http://www.scotland.gov.uk/ Topics/Statistics/Browse/Economy/Exports/ 76 Visit Scotland, Tourism in Scotland 2008 (2009), GCSData. http://www.visitscotland.org/research_and_ statistics/national_facts_and_ﬁgures.htm. 64 KPMG Government Services, Administrative Burdens: HMRC Measurement Project (March 2006), http://www.hmrc.gov.uk/better-regulation/ kpmg1.pdf.

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77 Scottish Government, Scottish Annual Business 85 For example, in 2007 there were 310 persons of Statistics 2007, http://www.scotland.gov.uk/ pensionable age to 1,000 persons of working. This Topics/Statistics/16170/4363; Scottish ratio is projected to increase to 399 by 2031. Government, Scottish Global Connections 2007 General Register Office Scotland, Population (March 2009), Projections Scotland: Population projections by http://www.scotland.gov.uk/Topics/Statistics/ sex, age and administrative area (revised October Browse/Economy/Exports/GCSData. (Creative 2008), http://www.gro-scotland.gov.uk/statistics/ industries cannot be precisely defined using publications-and-data/popproj/06pop-proj- standard industrial codes. For details of approach scottishareas/index.html. used to track the sector see Annex A1, Mapping the Creative Industries to official data 86 General Register Office Scotland, Population classifications, http://www.culture.gov.uk/ Projections Scotland (2008-based) (revised images/research/Creative_Industries_Economic October 2009), http://www.gro-scotland.gov.uk/ _Estimates_Jan_09.pdf.) statistics/publications-and-data/popproj/ projected-population-of-scotland-2008-based/ 78 Derived from Scottish Enterprise database of life index.html. science companies, http://www.scottish- enterprise.com/life_sciences_sector.htm. 87 Scottish Broadcasting Commission, Platform for Success: Final report of the Scottish Broadcasting 79 QS, The QS World University Rankings 2007, Commission (September 2008), 40-45, http://www.topuniversities.com/university- http://www.scottishbroadcastingcommission.gov. rankings/world-university-rankings/2009/results. uk/about/Final-Report.

80 Higher Education Statistics Agency (HESA), 88 Scottish Government, Opportunities for http://www.hesa.ac.uk/index.php. Broadcasting: Taking forward our National Conversation (September 2009), 17. 81 Scottish Government, Metrics for the Scottish http://www.scotland.gov.uk/Publications/2009/ Research Base (modified March 2009), 09/23125613/0. http://www.scotland.gov.uk/Topics/Business- Industry/science/16607/research-1. 89 This subject was discussed at the National Conversation event in Melrose on 28 July 2009. 82 OECD Directorate for Education, Education at a See http://www.anationalconversation.com. Glance 2009: OECD Indicators, http://www.oecd.org/document/9/0,3343,en_ 90 Scottish Government, Poverty and income 2649_39263238_41266761_1_1_1_1,00.html. inequality in Scotland: 2007/08 (May 2009), http://www.scotland.gov.uk/Publications/ 83 Standard and Poor's, “Spain's Basque Country 2009/05/povertyfigures0708. Affirmed At 'AAA' And Off CreditWatch On Unique Fiscal Autonomy/Robust Finances; 91 Department of Work and Pensions, Households Outlook Stable” (January 2009), Below Average Income: An analysis of the income http://www.euskadi.net/r33-2734/eu/ distribution, 1994/95 – 2007/08 (May 2009), contenidos/nota_prensa/standard_aaa/eu_st_aaa http://research.dwp.gov.uk/asd/hbai/hbai2008/ /adjuntos/03.Standard.pdf; Isabelle Joumard and pdf_files/full_hbai09.pdf; European Commission, Aristomène Varoudakis, “Options for Reforming Employment and social policy indicators: Indicators the Spanish Tax System” OECD Economics of the social inclusion strand (last updated April Department Working Papers 249, OECD Economics 2009), http://epp.eurostat.ec.europa.eu/portal/ Department (2000), http://ideas.repec.org/p/ page/portal/employment_and_social_policy_ oec/ecoaaa/249-en.html. indicators/omc_social_inclusion_and_social_prot ection/social_inclusion_strand. 84 See Scottish Government, The Government Economic Strategy (November 2007), 92 See, for example, Jonathan Bradshaw, ‘Child http://www.scotland.gov.uk/Publications/ Poverty and Child Outcomes’, Children and 2007/11/12115041/0. Society, vol. 16, issue 2 (April 2002), 131-140; Scottish Government, Estimating the Cost of Child Poverty in Scotland – Approaches and Evidence

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(April 2008), http://www.scotland.gov.uk/ 102 See, for example, Scottish Government, “Scheme Publications/2008/01/28111819/0; and Prince’s to help preserve cod stocks” 4 February 2008, Trust, The Cost of Exclusion: Counting the cost of http://www.scotland.gov.uk/News/Releases/2008 youth disadvantage in the UK (April 2007), /02/01144700; and Scottish Government, “Fish http://www.princes-trust.org.uk/about_the_trust/ conservation” 4 April 2008, http://www.scotland. what_we_do/research/cost_of_exclusion.aspx. gov.uk/News/Releases/2008/04/04113754.

93 See Scottish Federation of Housing Associations 103 Scottish Government, FMD Review (Scotland) written response to the National Conversation 2007 (June 2008), http://www.scotland.gov. (December 2008), http://www.scotland.gov.uk/ UnitedKingdom/Publications/2008/ Topics/a-national-conversation/NC-contributions- 06/23130049/21. inds-org. 104 HM Treasury and DEFRA, A Vision for the Common 94 See Scottish Government, Achieving Our Potential: Agricultural Policy (December 2005), a framework for tackling poverty and income http://www.defra.gov.uk/foodfarm/policy/ inequality in Scotland (November 2008), capreform/documents/vision-for-cap.pdf. http://www.scotland.gov.uk/Publications/2008/11 /20103815/0. 105 See Scottish Association for Public Transport written response to the National Conversation 95 Scottish Government, Choosing Scotland’s Future (October 2008), http://www.scotland.gov.uk/ (August 2007), 13, http://www.scotland.gov.uk/ Topics/a-national-conversation/NC-contributions- Resource/Doc/194791/0052321.pdf. inds-org.

96 See, for example, Commission on Scottish 106 Commission on Scottish Devolution, Serving Devolution, Serving Scotland Better: Scotland and Scotland Better: Scotland and the United Kingdom the United Kingdom in the 21st Century, Final in the 21st Century, Final Report (June 2009), 98. Report (June 2009), 200-208. http://www.commissionscottishdevolution.org.uk/. http://www.commissionscottishdevolution. org.uk/. 107 See Scottish Federation of Housing Associations written response to the National Conversation 97 GERS 2007/08. Estimate includes an illustrative (December 2008), http://www.commission geographical share of North Sea revenues. scottishdevolution.org.uk/.

98 Scottish Government, Communities and People: 108 Commission on Scottish Devolution, Evidence from Taking Forward our National Conversation the Independent Expert Group to the Commission (November 2009), http://www.scotland.gov.uk/ on Scottish Devolution: Natural Resource Taxation Topics/a-national-conversation. and Scottish Devolution (March 2006), http://www.commissiononscottishdevolution.org. 99 Department for Work and Pensions, First Release: uk/uploads/2009-06-06-ieg-natural-resource- Income Related Beneﬁts Estimates of Take-Up in taxation-1.pdf. 2007-08 (June 2009), http://www.dwp.gov.uk/ docs/ifd250609beneﬁts.pdf. 109 For information on the Nordic energy market, see Nordic Energy, Ten Perspectives on Nordic Energy: 100 See Scottish Government, Rural Affairs, Final Report of the Nordic Energy Perspectives Environment and Climate Change: Taking Forward Project (September 2006), http://www.nordic our National Conversation (October 2009), energy.net/publications.cfm?id=3-0&path=10. http://www.scotland.gov.uk/Resource/Doc/ 288135/0088042.pdf. 110 Scottish Government, Action Plan on European Engagement, Appendix I – European Union Review 101 See, for example, the National Trust for Scotland and Forward Look: Update on Key Areas for written response to the national Conversation Engagement, http://www.scotland.gov.United (August 2008), http://www.scotland.gov.uk/ Kingdom/Publications/2009/09/07093832/1. Topics/a-national-conversation/NC-contributions- inds-org.

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111 Scotland Act 1998, schedule 5, section G2; section 119 Scotland Act 1998, schedule 5, part I, s.9(1); J1-J5, http://www.opsi.gov.uk/Acts/acts1998/ Scotland Act 1998, schedule 5, part II, section B8; ukpga_19980046_en_1; see also Scottish Scotland Act 1998, schedule 5, part II, section B10, Government, Choosing Scotland’s Future Annex A: http://www.opsi.gov.uk/acts/acts1998/ukpga_ Reservations in the Scotland Act 1998, 19980046_en_1. http://www.scotland.gov.uk/Publications/ 2007/08/13103747/0. 120 Commission on Scottish Devolution, Serving Scotland Better: Scotland and the United Kingdom 112 Scottish Government, Communities and People: in the 21st Century, Final Report (June 2009), 62, Taking Forward our National Conversation http://www.commissionscottishdevolution.org.uk/. (November 2009), http://www.scotland. gov.uk/Topics/a-national-conversation/ 121 Commission on Scottish Devolution, Serving NC-contributions-inds-org. Scotland Better: Scotland and the United Kingdom in the 21st Century, Final Report (June 2009), 124, 113 Commission on Scottish Devolution, Serving http://www.commissionscottishdevolution.org.uk/. Scotland Better: Scotland and the United Kingdom in the 21st Century, Final Report (June 2009), 122 See, for example, Scottish Government, Choosing recommendation 5.13, 187 – 188; recommendation Scotland’s Future (August 2007), 3, 8-9, 5.14, 188 – 190; recommendation 5.15, 190 – 191; and http://www.scotland.gov.uk/Publications/2007/ recommendation 5.16, 191 – 192, 08/13103747/0. http://www.commissionscottishdevolution.org.uk/. 123 Scotland Act 1998, ss. 56-57. 114 Scottish Parliament ofﬁcial report, 18 December 2008, http://www.scottish.parliament.uk/ 124 Ministry of Justice, Governance of Britain – War business/ofﬁcialReports/meetingsParliament/ Powers and Treaties: Limiting Executive Power or-08/sor1218-01.htm; Scottish Government, (October 2007 – March 2008), Scotland’s Road Safety Framework to 2020 http://www.justice.gov.uk/consultations/ (June 2009), http://www.scotland.gov.uk/ cp2607.htm. Publications/2009/06/08103221/0. 125 HM Treasury, Public Expenditure Statistical 115 Commission on Scottish Devolution, Serving Analyses 2009 (July 2009), Table 4.2, ‘Public Scotland Better: Scotland and the United Kingdom sector expenditure on services by function, 1987- in the 21st Century, Final Report (June 2009), 193, 88 to 2009-09’, 66, http://www.hm-treasury. http://www.commissionscottishdevolution.org.uk/. gov.uk/pespub_pesa09.htm.

116 See Commission on Scottish Devolution, Serving 126 See Hansard HC Deb, 9 September 2009, c Scotland Better: Scotland and the United Kingdom 2000W and HC Deb, 22 October 2009, c 1634W; in the 21st Century, Final Report (June 2009), Part 4: GERS 2006/07, Table 6.4: http://www.scotland. Strengthening Co-operation, gov.uk/Resource/Doc/228544/0061858.pdf. http://www.commissionscottishdevolution.org.uk/. 127 Ministry of Defence, UK Defence Statistics 2009 117 Scottish Government, Europe and Foreign Affairs: (September 2009), Table 2.2, ‘Location of service Taking forward our National Conversation and personnel in the United Kingdom’, 51, (September 2009), http://www.scotland.gov. http://www.dasa.mod.uk/modintranet/UKDS/ uk/Publications/2009/09/08143726/0. UKDS2009/pdf/UKDS2009.pdf.

118 See Scottish Government, Europe and Foreign 128 Scottish Government, Scottish Social Attitudes Affairs: Taking forward our National Conversation Survey 2007 Core Module Report 1: Attitudes to (September 2009), Annex A – Membership of Government in Scotland (May 2008), International Organisations and Ministries of http://www.scotland.gov.uk/Publications/ Foreign Affairs, 2008/05/16095134/13. http://www.scotland.gov.uk/Publications/2009/ 09/08143726/0.

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129 Scottish Ofﬁce, Shaping Scotland’s Parliament: 131 Scottish Government, Scottish Social Attitudes Report of the Consultative Steering Group on the Survey 2007 Core Module Report 1: Attitudes to Scottish Parliament (December 1998), Government in Scotland (May 2008), http://www.scotland.gov.United Kingdom/library/ http://www.scotland.gov.uk/Publications/2008/ documents-w5/rcsg-00.htm. 05/16095134/13.

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.

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Scotland is steadily and surely shrugging off its unenviable reputation as the sick man of Europe. To do that has involved taking courageous decisions and backing these up with necessary “legislation – such as leading the way in banning smoking in enclosed public spaces; delivering free personal care; and our current legislative proposals which include measures to further reduce smoking, such as banning cigarette vending machines, and to tackle alcohol misuse through the introduction of minimum pricing. I am absolutely certain that we can and should continue to lead the way in taking appropriate measures to improve the health of the people of Scotland, now and in the future. Only with full independent powers and responsibilities will we able to do so. This includes control over taxation and beneﬁts which are vital if we are to reduce poverty and low income, and eliminate the health inequalities which plague Scotland. Such powers will enable us to more fully determine and shape the continuing improvements we need if Scotland’s people are to live longer, healthier” lives.

Minister for Public Health and Sport

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161 A National Conversation – YOUR SCOTLAND, YOUR VOICE

Scotland’s achievements for housing since devolution in 1999 are significant. I am proud to serve in a Government, which, alongside our partners in local government “and beyond, is part of this dynamic shift. But current constitutional arrangements mean that crucial barriers to our progress still remain, with key issues like taxation, social security benefits and financial and business regulation remaining reserved to Westminster. We need responsibility for all policy areas impacting on housing to deliver the homes and communities that Scotland needs and deserves. Independence can bring about this vital change.

Minister for Housing and Communities”

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The Scottish Government continues to encourage, nurture and build a supportive business environment. We recognise that effective businesses are the key to delivering “accelerated and sustainable economic growth. With greater autonomy and in an independent Scotland, we would have the opportunity to put in place new initiatives such as lower corporation tax to give companies in Scotland a new competitive edge and to attract new businesses to Scotland. Constitutional reform would also give Scotland responsibility for developing our vast energy resources, including our oil and gas reserves and our huge potential in renewables and carbon capture. ”

Minister for Enterprise, Energy and Tourism

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166 A National Conversation – YOUR SCOTLAND, YOUR VOICE

Scotland’s ambitious and comprehensive climate change legislation establishes this country as a global leader in developing a low carbon economy. We recognise the “contribution that Scotland must make to reverse the carbon polluting impacts of the ﬁrst industrial revolution and the economic opportunities for those who move quickly into the next. We are doing all we can within the powers available to us to transform our domestic performance and to inﬂuence the conduct of international negotiations. With the powers properly available to an independent nation state, we would enhance our international contribution and move more rapidly towards the more successful and just low carbon economy we want to see. ”

Minister for Transport, Infrastructure, and Climate Change

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To create the sort of country of which we can all be proud to be a part, we need an education system within which our children and young people will be equipped to succeed personally, “socially and economically in the modern world. This goes beyond education. For example, aspects of the UK tax credit and beneﬁts system impact directly on the lives of some of Scotland’s most vulnerable children and young people, such as those with disabilities. Constitutional reform will allow us to fully align all of Scotland’s public service systems to work with the third sector, communities and parents to help enable current and future generations to thrive. ”

Minister for Schools and Skills

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This Government has recently published the Early Years Framework, making clear our commitment to supporting children and their families. “While we are making progress in many areas, including setting out how we intend to improve accessibility and ﬂexibility of childcare, the Scottish Government has limited leverage for change on the issue of affordability. Under the current constitutional settlement, tax credits which support parents with the costs of childcare can be complex and bureaucratic. Instead, we want to see a single, accessible and progressive means of supporting parents with the cost of childcare, appropriate to the needs of the people of Scotland.

We do not want Scottish solutions undermined and obstructed by monolithic UK-wide systems, which are not responsive to Scotland’s speciﬁc needs. We want accessible and affordable childcare, helping parents back in to work and boosting our economy. ”

Minister for Children and Early Years

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Scottish Governments have made large scale and radical reforms to the criminal justice system to successfully address the serious challenges facing our communities. “But there are important gaps in our powers and responsibilities. These gaps hinder our efforts to produce joined up policies which fully address Scottish needs and circumstances. Further constitutional reform, especially in the areas such as ﬁrearms and drink driving, would allow us to tackle these issues directly and at our own hand. ”

Minister for Community Safety

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173 A National Conversation – YOUR SCOTLAND, YOUR VOICE

Our natural environment is part of Scotland’s unique and distinct character. It sustains businesses and jobs, supports families and communities, puts food on our plates and offers huge potential for sustainable economic “growth. We could ensure it contributes this and so much more if we didn’t have unhelpful limits on our ambitions and actions. ” Minister for Environment

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176 For more information on the National Conversation please email [email protected] or visit the National Conversation website at www.anationalconversation.com

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