Working for Scotland Listening to you

Scottish Labour: new directions Change is what we do

By Wendy Alexander MSP Leader of Scottish Labour in the Scottish Parliament

Change is what we do – Wendy Alexander MSP

But it is an SNP in power, while we are in Boldness and opposition. Progressive Nobody in Scottish Labour should be under any illusion that the 2007 election Politics was just a mistake that will be put right at the next election. We have no divine We in the Labour Party have been right to be elected, no automatic call fortunate to live in a time when politics on the people’s support, no guarantees in the English-speaking world have of unwavering allegiance. We will have been dominated by three of the most to work as hard, if not harder, than we gifted politicians of the centre-left – Bill did in 1997, to secure victory at the Clinton, Tony Blair, and Gordon Brown. next election. We will have to work in Under the guidance of these three men, every street, every community, and in all the USA and the UK were rescued from corners of our country to command the the economic doldrums and enjoyed the respect of, and win back the support of, longest period of sustained growth that Scotland. either country has known while huge strides towards reducing injustices and That’s why Scottish Labour can learn inequality were made. Together, they from Bill Clinton, Tony Blair, and Gordon proved what we in the Labour Party Brown. They did that work, they won that knew, but the rest of the world did not respect and support, and we should learn believe – that centre-left parties can run the lessons. For the bitterest lesson the economy not just well, but better of all is that the SNP have certainly than right-wing parties, while healing done so. The slogan that headlined the the social rifts that right-wing politics Nationalist campaign that defeated us worsen. was “It’s time for change”. They managed to capture a mood in Scotland that In the Scottish Labour Party, we need wanted change. It was the same mood to remember that, not just to celebrate that we in Scottish Labour caught in it, but to know and understand why 1997 and 1999. We stayed in tune with those three men succeeded where so that feeling in 2001, 2003, and 2005. many others with the best of intentions But we lost it in 2007. did not. We need to understand those lessons because we now face one of the As a minister who was proud to serve toughest challenges in our history – a under Donald Dewar, Henry McLeish and Scottish National Party in government. Jack McConnell, and as a Labour Party It may be an SNP that won the 2007 member who worked in those elections, I election by just one seat, it may be that take my share of the blame for that. But the one seat was won by just 46 votes, there is no future for us in seeking to and it may be an SNP which is well short lay the blame at any one person’s door. of a majority in the Scottish Parliament. The future lies in learning the lessons, putting them into practice, and getting 1 Change is what we do – Wendy Alexander MSP

back to what Scottish Labour should be In key respects, the Nationalists are all about. worse than the Conservatives. The Nationalists seek to disguise their The truth is that change is at the heart conservatism in the language of of progressive politics and must be at radicalism. But at heart, they are deeply the heart of Scottish Labour. We are the conservative. They want to turn the party of change. We want to change the clock back 300 years to a past that never institutions, the practices, the beliefs was in order to achieve a future that that hold our society back. If institutions never can be. Nobody on the centre- are not working to make Scotland a left should be in any doubt that if the better place, our job is to put something Nationalists ever came close to achieving better in their place. If there are practices what they want, the winners will be few that are holding Scotland back, our task and the losers will be many. is to sweep them away. And if there are beliefs that are checking progress, our Tony Blair taught Labour to put internal aim is to challenge and defeat them. division aside and to seek power. Our job as a party of the centre-left is to ensure Bill Clinton memorably told the Labour that power is used for the benefit of the Party conference in Blackpool in 2002 many and not the few. We learned also that for politicians of the centre-left, that we must encourage the creation even those in power, the phrase “it’s time of wealth. But it is our job as Labour for a change” should not be a threat, not politicians to make sure that wealth is even a challenge, but should instead be not just created, but is also put to work a constant theme. For those of us on the to create jobs and opportunities for progressive wing of politics, it is always everyone, not to stagnate in the hands “time for a change”, because change is of select and fortunate individuals. why people vote for us. But how do we do that? What kind of It is no coincidence that our principal policies do we adopt in order to make opponents have historically been sure that power and wealth can be used labelled “conservatives”. At heart, they for the benefit of all? Gordon Brown has wish to conserve what already exists given us the answer to that, in actions because that is how the privileges and in words. Amplifying a theme set enjoyed by them and their supporters out the previous year by Tony Blair he are maintained. They want to keep told us at the 2003 Labour conference the power and wealth they have, the in Bournemouth that we needed to be inevitable end result of which is that clear and confident about our principles, power and wealth stays in the hands of confident that Labour values are the a few, denying many the chances to live values of the British people. More prosperous and fulfilling lives. importantly, he told us that we need to be bold in our policies. Labour, he said, is best when at its boldest, best when united, and best when we are Labour. 2 Change is what we do – Wendy Alexander MSP

These are the principles that guide my leadership. I intend that we should be the party of change, that the Scotland we seek will be a country where wealth- creation and the use of wealth to benefit all Scots is encouraged. We must be bold, united, and Labour.

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and then an Act putting duties on Scottish Labour, local authorities to produce plans for building houses for working people. But Boldness and it was only the election of a Labour government in 1924, and the arrival of Change a Clydesider, John Wheatley, as Minister of Health and Housing, that a quantum Scottish Labour needs no lectures on leap forward occurred. Wheatley’s how bold policies win support and can Housing Act is widely acknowledged make life immeasurably better for people. as the central legislative achievement But, occasionally, it is good to remind of Ramsay MacDonald’s government. ourselves, and others, of just how much It provided central government funds has been achieved by those who went to local authorities to build houses to before us. Under the SNP, a dishonest approved standards for rent. and manipulative re-writing of history has begun. It has commenced with the Pushed through in the teeth of SNP claiming to be the mother, the Tory opposition, which refused to father, and the midwife of the Scottish acknowledge that the private sector Parliament that we now have. It is was unwilling to build quality, low-rent manifestly untrue, but that won’t stop housing, the council housing estates the Nationalists seeking to claim credit that rapidly sprang up across Scotland for much more. provided desperately needed escape from poisonous squalor for hundreds of So let’s remind ourselves of a few thousands of Scottish families. landmarks in the social fabric of our nation’s history, some of which were Labour’s creation of the National Health constructed before the SNP was even Service in 1948 is rightly credited to formed. One such is social housing, Aneurin Bevan, Minister of Health in born out of the quite appalling housing Clement Attlee’s Labour government, conditions that those who were toiling and to William Beveridge, who wrote to build the ships and munitions to the report bearing his name advocating fight in World War One, and the women the NHS. But they knew it would work who were bringing up families while because, in all but name, the NHS was their husbands were fighting at the already in being in Scotland. front, were expected to endure. Not only was the overcrowding – whole The credit for that goes to Tom Johnston, families confined to one room and an a Labour Scottish Secretary in Winston outside toilet shared by others – utterly Churchill’s wartime national government. intolerable, but the rents they were He had the inspiration to see that civil expected to pay were extortionate. defence hospitals, being set up to treat the military and civilian casualties of Sustained pressure by the Labour war, were meantime mostly empty. They movement brought first rent controls could be used to give free treatment, 4 Change is what we do – Wendy Alexander MSP initially to civilian war workers, and then move. Without the SDA, and indeed the to the population generally. Compared to HIDB, and their hard word in bringing in conditions today, health care was then inward investment, the unemployment truly terrible. For the few with money, caused under the Conservatives’ de- there was private care. The many were industrialisation of Scotland would have dependent on voluntary hospitals run by been much worse and unemployment councils and funded by charity. Waiting in Scotland would have been pushed times of two years for hernia operations back to the levels of several decades were usual. Even severe cases of previously. appendicitis could mean a six-month wait. Johnston put the new military And in our own time, we have known at hospitals into action and by 1945, he first hand the tireless efforts of Donald could say not only that the waiting lists Dewar to see the establishment of the had been cleared, but that he had blazed Scottish Parliament. Throughout the long a trail for the NHS. bitter years of opposition to the Tories, Dewar kept faith with ideal of devolution In peacetime, Johnston was no less and, along with the support of allies like vigorous, taking up the chairmanship Gordon Brown and John Smith, worked of the North of Scotland Hydro- to achieve a vision for a parliament that Electricity Board (whose successor is would command the support of the today’s Scottish & Southern Energy). Scottish people. He had the foresight to see that if the hydro potential of the Highlands was It was Donald Dewar who accepted the harnessed, reliable and cheap electricity idea of the Constitutional Convention could be provided which might lead to and worked to turn its ideas into a a reversal of years of Highland decline. legislative reality, while Alex Salmond, Among the opponents were the SNP far from helping, stood aside and led the who predicted that the electricity would SNP in opposing it every step of the way. just be sold to England (why else would Labour, Salmond said, could not deliver an ‘English’ Parliament approve it?) or a pizza, never mind a parliament. Dewar worse, that publicly generated electricity did not only deliver, he produced such an would be sold to private industry. exciting example of new democracy in action that politicians from across the Just as the Hydro Board began the world have come to Scotland to learn revival of northern Scotland, so the from it and enhance their democracy. Highlands and Islands Development Board, now Highlands and Islands Once in the new parliament, Dewar Enterprise, created by an outstanding continued with bold action. Wheatley’s Labour Scottish Secretary, Willie Ross, vision of decent housing for all had, continued it. He extended the idea to sadly, suffered during the long years the rest of Scotland with the creation of of Tory rule. Neglect meant that far the Scottish Development Agency, now too many council-owned houses in too Scottish Enterprise. This was a visionary many areas were well below modern 5 Change is what we do – Wendy Alexander MSP

standards. I was proud to play my part in The first lesson is that when we beginning the transfer of those houses in Scottish Labour are true to our to community ownership. Firmly in the principles, and when we match them traditions of John Wheatley, Dewar to the aspirations of the Scottish sought a modern means of renewing people, we succeed. Since the party’s Scottish Labour’s long-held ambition of foundation, our central principle has decent and affordable homes for working always been that government should be, people. in the words of the new Clause 4 “for the many and not the few”. For much of the Bolder still were Dewar’s land reform 20th century, our over-riding priorities proposals building on years of were to use centralised government to campaigning by Scots of all parties deal with mass unemployment, build the and none which could only have been welfare state, construct the National implemented by a Scottish Parliament. Health Service, and provide equality of Communities right across Scotland, and educational opportunity. None but the not just in the Highlands and Islands, most blinkered Nationalist could argue have been able to buy land denied to that in these decades Home Rule for them for generations and put it to the Scotland, though it was one of Labour’s use such land should have – sustaining founding goals, was a priority of the and strengthening the families that live Scottish people. But at the end of the on that land. 20th century it became clear, under Tory misrule, that centralised government was This cycle of renewal was continued not fit for Scottish purposes. A Scottish by Jack McConnell with the passage Parliament was both the priority means of legislation securing the right of of providing for the many in Scotland responsible access to the countryside and, in John Smith’s words, the settled for all Scotland’s citizens. And Jack will of the Scottish people. McConnell also took forward the biggest step forward in improving the health of The second is that we should never the nation since perhaps the creation of confuse principles with policies, for the NHS – the ban on smoking in public policies are simply the means to put places. Where we in Scotland led, the rest those principles into practice. The of Britain has followed. provision of decent and affordable homes for all has always a principled aim of The point of listing these achievements Scottish Labour. In the early 20th century, is not to burnish a set of medals in giving local authorities the means to the museum of Labour history, nor provide those homes was the obvious simply just to remind ourselves of our and successful way of implementing entitlement to wear them proudly, but so that principle. But at the end of the that we can know the lessons we need 20th century, because of neglect under to take with us as we move forward. 18 years of Conservative rule, new approaches were needed in cities such as Glasgow where the problems had 6 Change is what we do – Wendy Alexander MSP become overwhelming. We needed a we listened and then reached out to new policy means of providing decent all Scotland and were rewarded with affordable homes and the foundations Scotland’s support. for a new era in community housing have been laid. But we now have the Parliament, and many of the things we promised. And in The third is that we must listen to putting those promises into action we the people, listen to their hopes somehow lost the connection with too and aspirations, and find clear many of the people who gave us their practical ways that will allow support. We now have to rebuild that those aspirations to become connection again. We have to debate the reality, without being deflected way ahead, not for and with ourselves, by false voices of opposition. Every but for and with the people of Scotland. achievement listed above was greeted And we have to have that debate, not by a storm of opposition from vested just with the people who support us, but interests when they were first proposed. also with the people who do not support But they have all endured and now there us, and with those who may even be would be a storm of opposition if any hostile to us. party was so foolish as to propose taking them away. For in the Scotland we now have, a Scotland where there are at least five The fourth is that we must reach significant political parties, and many out beyond what we might consider more which may seek to be significant to be our natural supporters and forces in the future, no party can rely win backing from people who may on one section of society in order to never have supported us at all. Our win power. Scottish politics in the 21st victories in 1997 and 1999 were not century is about building coalitions of secured by clinging to our heartland support in all sections of society, and vote. They came because we reached constantly refreshing and renewing out to people across all Scotland - in those coalitions. former Tory heartlands of Eastwood and Dumfries, in SNP territories of the I do not believe that people have lost Western Isles and Dundee East, and in faith in Scottish Labour’s values. But they long-time Liberal Democrat areas such as have questioned our ability to deliver Inverness, Nairn and Lochaber. the practical policies that match those values, and to make the changes that We did so because in campaigning for turn those values into reality. If we are Scotland’s Parliament, we campaigned in humble enough to listen, wise enough all corners of Scotland. In that campaign to engage in debate, and brave enough we listened to what all Scotland had to to renew, we can win back belief in our say and we put those messages into ability to deliver. And, as those who went our manifesto. From housing in our before us did, we must be bold, be united, cities to land reform in the countryside, and be Labour. 7 Change is what we do – Wendy Alexander MSP

you worked diligently, expect to remain Changing society, employed with that organisation for the rest of your life and retire with an changing policies occupational pension. That life route map is increasingly a rarity these days. Now What does Scottish Labour stand for? people from modest backgrounds have It’s a question people often ask us. Our the opportunity to go to university and answer to that has not changed. We gain their own set of skills which may stand for the progressive values of see them in occupations that involve a justice, equality, and community. These different employer every few years. values are the bedrock on which our party was founded and have sustained Aspirations also change. Home us ever since. They still do so today. ownership, car ownership, a foreign holiday, labour-saving appliances in the But our task as Scottish Labour is to home, were once but distant dreams embody these values, and to find ways for most people. Thanks to Labour of giving real meaning to these values, in many have now achieved these dreams. our own times. For us, it means constant Nowadays, families’ aspirations stretch change, not in our values, but in the to second home ownership, two cars policies we use to make them a reality. in the driveway, a nice garden, two Just as society is constantly changing, so foreign holidays a year, and leisure we must constantly re-assess and renew systems in the home such as sound, our policies so that we stay in touch with cinema, and gym equipment. In short, the changes in society. social conditions change and people’s aspirations constantly rise. We need to The concerns of Scottish families have be in tune with those changes, for if we not greatly changed over the years. are not in tune with them, we will be They are to get on in life and improve seen as irrelevant. their circumstances, to make sure their children get the best possible start This applies right across the entire to their lives, and to live in safe and spectrum of issues that we as politicians friendly communities. These are the are expected to deal with. It covers priority issues in homes up and down the everything from growing the economy country. and the wealth of our nation to helping the socially and economically excluded, But what it takes to get on in life, to from the enrichment of our cultural and give your kids the best start and to sporting life to the conservation and live in safety, is changing all the time. protection of our environment, and from For many people of humble means the the nurturing of our cities and industries best you could hope for was to leave to the enhancement of the countryside school with minimal qualifications, join and rural ways of life. But to illustrate a big company or an institution and, if the challenges and the need for fresh

8 Change is what we do – Wendy Alexander MSP thinking posed by a changing world and have seen both the lists and waiting changing aspirations, I want to pick out times greatly reduced. Now a new just three examples. priority is to change the health of the nation to prevent people from having to Health go on those waiting lists.

Ten years ago, an urgent priority in the Scottish Labour can be proud that we National Health Service was to build began that battle with the smoking ban. new hospitals and health centres fit Now it has to move on to a new front for the 21st century. Scottish Labour – tackling over-indulgence in alcohol led on meeting those challenges – new and food. We need to lead the debate hospitals, new health centres, shorter about how we should and can take waiting lists and faster treatments. Now, responsibility for our diet and our own rising aspirations mean that people are health, and to embrace radical ideas on looking for better and more personalised how to take that agenda forward. services from the NHS. They want to be able to see a doctor and get treatment Education when it suits them, and not when it suits the doctor. They want to get more Ten years ago, after decades of neglect, of their health care needs met locally there was a crying need for new schools in their community and not at a distant fit for modern purposes. Scottish hospital. How we meet those aspirations Labour has gone a long way towards without compromising standards of fulfilling that need, and today hundreds health care and while ensuring taxpayers of thousands of pupils enjoy learning get value for money is the challenge for in new or substantially refurbished the future. buildings that meet modern standards. Sadly, however, the SNP, because of When we came into power, Scottish an ideological fixation against private Labour led the attack on the big killer finance, is slowing down the rebuilding diseases. Thanks to reforms that we programme. While Scottish Labour will introduced, we are well on the way to maintain the pressure to ensure that dealing with these scourges. There can all pupils enjoy education in modern be no let up in that battle, but there are buildings, the political agenda for schools new concerns that we must also tackle. must now also look beyond a bricks and For example, a growing concern is how mortar programme. we help patients with chronic conditions manage their own care. That is because today’s parents are no longer content to judge a school The other big priority in the NHS was by its appearance, or even by its exam to reduce the waiting lists and waiting results. At the primary school stage, times for hospital care. Again, the parents want to know whether their reforms that Scottish Labour introduced child is guaranteed a firm grasp of the

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basics of reading, writing, arithmetic, education, we need to be willing to and oral communication before they go put our resources into much more to secondary school. Lack of these basic individual attention for those who need skills is a prime cause of the disciplinary it. This would take the pressure off the problems that blight too many of our classroom teacher and other pupils who schools. Scottish Labour must seek out may be suffering when their classmates ways to guarantee that all children leave are disaffected or disengaged. Getting primary education fully equipped for it right for every child through their secondary school. own ways of learning and discovering their interests and strengths should Debate has become too fixated on increasingly be part of the school setting targets for class sizes. For the experience from the primary years. SNP, it is class sizes in p1, 2, and 3. While class size is a factor helping to determine Instead, we have the easy populism educational outcomes, the evidence of class size promises (which are suggests that the quality of teaching increasingly unlikely to be fulfilled) in a class and the quality of leadership winning out over evidence-based policy- in a school is more important. Yet where making. The same is true of university is the public and political debate about and college education. The SNP got the curriculum, now being re-shaped elected on the promise, now exposed as under A Curriculum for Excellence, and entirely empty, that all graduates would whether it is fit for the future? Is our have their debt written off even if they leadership in schools the best it can be were in a well-paid job. Their financial and does it have the power and support situation has been put above those of to shape effectively the school ethos and classmates who may now be without staffing? the hope of a modern apprenticeship to escape from unemployment. Parents are increasingly looking for more personalised education for their At the same time, we have made too children. That means learning the little progress towards identifying the lessons of the literacy programme in relatively small number of university West Dumbartonshire whose success entrants who genuinely cannot afford over the last decade has allowed every higher education and really do deserve child to become a reader. And it is not generous grant and bursary support. just in the earliest years where we need And in the SNP’s rush to win easy votes, a more personalised approach. Children the competitiveness of Scotland’s learn differently and many will have a universities – the source of much of time in their school careers where they our national reputation for invention struggle with a subject or a concept. It and innovation – is being jeopardised. is a time when they could do with extra Exposing this hypocrisy and finding real support to maintain their enthusiasm solutions is a tough challenge, but one and confidence. If we want all pupils to that Scottish Labour must undertake. leave primary school ready for secondary 10 Change is what we do – Wendy Alexander MSP

Communities and people conventional means of support, despite the best of intentions by hard-pressed Ten years ago, the urgent need for agencies, are not working. Consider that many of our communities was to tackle most poignant example of our most bad housing and criminally anti-social vulnerable children growing up in the behaviour. Scottish Labour can be proud shadow of a parental or sibling addiction. that in government, we took big steps Why have we not resolved the funding towards dealing with these problems. of kinship care, the provision of nurse Now, however, it is apparent that the partners, or help in the home? Why have scale of these problems was bigger we been unable to provide a personal than we thought, and that the solutions adviser who is the lead advocate for each needed are perhaps more radical than we child and the budget-holder for their have so far championed. welfare, irrespective of which agency they come from? At this stage, there are more questions than there are obvious answers. For All of us in politics know of the cases example, community land ownership is where a dozen different agencies are transforming prospects for some of our involved. The loser invariably is the remoter communities. After decades of vulnerable person. Often, there are too being powerless in the face of wealth many advisers, too much shifting of and privilege, they now have the power responsibility and passing the buck, and to take forward their own hopes and too little ownership of the solutions. But dreams. But what about our urban which political party in our country has neighbourhoods? Where are the plans campaigned to slice through red tape, to reclaim them for the people who live to end the waste of resources, and to there, and to give them the power to introduce a personalised one-to-one shape their own future? solution to help the most vulnerable?

We have promoted the changes we These three examples – in health, have made to the law in order to tackle education, and communities - show the anti-social behaviour. And it has been directions in which Scottish Labour must proven that these new powers can travel. All of us have a duty to take part make a difference in getting rid of the in debating and formulating the policies loutishness and vandalism that was in that will renew our connection with the danger of becoming an accepted part of Scottish people. life in too many parts of Scotland. But it is still a big problem. Where are the The SNP have a different starting communities in Scotland where zero- point. They came into being for one tolerance policing is implemented in reason and one reason only: to achieve partnership with the local community? independence for Scotland. Everything else is secondary. Having achieved Within those communities, there are office their goal remains unchanged. It struggling families for whom the means that the decisions they make are 11 Change is what we do – Wendy Alexander MSP

invariably characterised by short-term, populism.

This is inevitable given that their overriding priority is whether any decision will help deliver a yes vote in an independence referendum rather than whether it will serve the long-term needs of our nation and its people.

I am determined that we will stand up for what we know to be right. I know that Scottish Labour will have the courage to put in place the type of actions and policies that will benefit us all, now and in the future. One of those areas for action is the constitution.

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surveys undertaken during the 2007 Changing election showed that no more than a quarter of the Scottish electorate times, changing supported independence. constitution Secondly, maintaining the Union continues to command majority support. The election of the SNP has pushed This is shown not only by opinion polls, constitutional politics back to the but by election results. In 2007, Unionist forefront. I share the view that the prime parties were supported by 65 per cent concern of the majority of Scots is not of the electorate. By no stretch of the the redrafting of the constitutional imagination is it possible to argue that blueprints of our country. Their major Scots wish to dissolve the Union. concerns are that politicians should tackle issues such as the ones discussed Thirdly, there is majority support for the above. A better health service, better present constitutional arrangements education, a growing economy with of a strong Scottish Parliament within better jobs, safer communities with less the United Kingdom. There is no crime - these are the people’s priorities. desire to revert to the pre-devolution arrangements. There is, however, a desire But we cannot rely on this as an to discuss whether the present powers argument that will be sufficient to defeat of the Scottish Parliament are right for the SNP. We in Scottish Labour know our times. this because we faced exactly the same argument from the Tories over a decade As I have argued throughout this ago. In the 1990s, while we took up a pamphlet, no-one in Scottish Labour leading role in the Scottish Constitutional should see this as a threat. We are Convention, the Tories argued that the party of change. And if there are constitutional change was not the changes that need to be made to the priority of the Scottish people. The constitutional settlement, we should result in 1997 was that the Tories were not shirk them. Indeed, Scottish Labour wiped off the Scottish electoral map. I do has already made some quite substantial not believe that Scottish Labour faces changes to the settlement which Donald the same threat, but we do need to Dewar piloted through Westminster in engage seriously with the constitutional 1998. Since then Scotland has gained challenge thrown down by the SNP. powers over rail franchises and the development of rail services. It has also Our strategy has three foundations. gained powers over the construction and Firstly, the weakness in the SNP’s extension of electricity power stations, position is that there has never been no mere detail given the important any credible opinion poll in Scotland decisions which have to be taken on which has shown majority support for future electricity generation. independence. Two substantial academic 13 Change is what we do – Wendy Alexander MSP

There has been debate about whether Better governance was the Donald Dewar ever said that devolution reason, and that reason alone, was “a process, not an event”. He did that in opposition we campaigned not use those words. They were used for a Scottish Parliament, and in by Ron Davies, then Secretary of State government we delivered the for Wales, describing the creation of the Scottish Parliament. Government National Assembly of Wales. Though he in Scotland and the United Kingdom is thought Ron Davies somewhat cavalier infinitely better as a result. Scotland’s with his use of language, Donald did gain is that we have been able to not disagree with the sentiment behind legislate for the provision of Scottish those words. He said: “It would be absurd solutions to Scottish problems. That has to pretend that ours is the last word on cleared legislative space at Westminster the constitutional settlement.” And true for UK and English-only matters. With to his word, he wrote into the Scotland devolution also to Wales and to Northern Act provisions for the continuing transfer Ireland, all parts of the United Kingdom of powers between Westminster and are now better governed. Holyrood. But it would be foolish to pretend that But neither did Donald believe that these changes, the biggest made to devolution was a stepping stone on an the constitution since the Act of Union inevitable road to independence, nor in 1707, are perfect. In other parts of that the addition of any more powers to the United Kingdom, defects in the Holyrood would bring Scotland closer to 1998 settlement have already been independence. There is one solid reason acknowledged and further changes for his certainty about that. It is that the made. In Wales, the Government of fundamental difference between the Wales Act has given new additional SNP and Scottish Labour is not just that legislative power to the Welsh Assembly. they believe in independence and we do In Northern Ireland, the change has not. It is that the SNP see constitutional come at the executive level with the change as an end in itself, whereas we devolved government in Northern Ireland see constitutional change as a means now cooperating with the government to an end, that end being the good in the Republic of Ireland to a degree governance of Scotland and the United unprecedented in Irish history. And at Kingdom. And the better Scotland and the United Kingdom level, Gordon Brown the United Kingdom are governed, the has proposed constitutional changes less, not more, likely it is that Scots will including limiting the power of the want independence. executive and re-invigorating democracy. Scotland cannot be isolated from this process of constitutional review and change.

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Ten years on from the Scotland Act held accountable for its application. of 1998, it can now be seen with the benefit of hindsight that there were Thirdly, insofar as there was a degree three shortcomings in the process of financial flexibility it was tied to an that led up to that Act. Firstly, the overwhelming reliance on income tax via Convention scheme essentially had “the Tartan Tax” at precisely the point been conceived against the background when many were realising elsewhere the assumption that it would require to be need for a more sophisticated approach forced upon a reluctant Westminster to taxation. government. To that extent, it assumed any consideration of that Westminster The consequence of these things has Government’s interests would take been to focus attention on the current place at some future stage as part of financial arrangements for the Scottish a negotiation for the implementation Parliament, based essentially on a of the scheme. Suddenly we found block grant accompanied by an unused ourselves with a Westminster and administratively complex power Government pre-disposed towards the to vary the basic rate of income tax. scheme, but at the same time boxed in In turn, this has raised concerns about by the dual mandate that the scheme the government’s degree of financial had already received at the 1997 general accountability and exercise of power election and subsequent referendum. without sufficient financial responsibility.

The consequence of this is that the Finally, while the constitutional current devolution settlement, while architecture of the 1998 legislative it has ended the over-representation process is sound, the urgency of the of Scottish MPs at Westminster, was need to create a Scottish Parliament not essentially concerned with the led to the Convention scheme being interests of all the peoples of the United accepted uncritically. Kingdom. And following the rejection in a referendum of plans for an Assembly in Times change and new issues come North East England, most within Labour’s to the fore – and after an eight-year ranks have simply ignored the West bedding-down period a reassessment of Lothian Question. This, coupled with Tory the settlement’s operation is timely. sabre-rattling and the SNP’s entry into Government at Holyrood, is helping to fuel English irritations.

Secondly, the proponents of the scheme placed too much emphasis, indeed almost exclusive emphasis, on how they would be allowed to spend public money without sufficiently considering either how they might raise that money or be 15 Change is what we do – Wendy Alexander MSP

Only the SNP voted against, a clear A cross-border, recognition by them that the proposal contained within it is a threat to cross-party Nationalist goals.. partnership The Scottish Constitutional Commission will be expert-led and independent. On December 6, 2007, the Scottish Its task will be to review devolution in Parliament passed a historic motion by Scotland ten years on, and to develop a 76 votes to 46. The motion was the more balanced Home Rule package. It will result of weeks of discussion between have a strong UK dimension, in contrast myself and the Scottish leaders of the to the earlier Convention. It will thus Conservative and Liberal Democrat meet the desire of most Scots to secure parties, itself an unprecedented process both the devolution settlement and their of cross-party partnership in Scottish common UK citizenship. politics. The motion read: Now endorsed by the Scottish “That the Parliament, recognising Parliament, the UK Government and mainstream public opinion in Scotland, the largest pro-union political parties, it supports the establishment of an will enable us to draw in the best ideas independently chaired commission that the UK and Scotland have to offer. to review devolution in Scotland; As with the earlier Convention, it will encourages UK Parliamentarians and be vital to look beyond the politicians parties to support this commission also to bring together business people, civic and proposes that the remit of this leaders, the wider public sector, academia commission should be: and the voluntary sector. In addition to “To review the provisions of the Scotland standard evidence-taking sessions, the Act 1998 in the light of experience Commission should consider other ways and to recommend any changes to the to gauge opinion including a number of present constitutional arrangements listening events, or people’s panels or that would enable the Scottish citizen’s juries. Parliament to better serve the people of Scotland, that would improve the A broad membership combined with financial accountability of the Scottish wide-ranging evidence taking sessions Parliament and that would continue can help the Commission stay focused on to secure the position of Scotland our key goal – what changes are needed within the United Kingdom, and further to the devolution settlement in order to instructs the Scottish Parliamentary make Scotland a better place to live and Corporate Body to allocate appropriate work in. resources and funding for this review.”

16 Change is what we do – Wendy Alexander MSP

One aspect of a far-reaching approach such as this is that it is not possible to predict the outcomes with certainty. But the process can be open, consensual, and thorough. An interim report could be helpful. At the end of the process, developed plans should be published which all parties can then consider. Of course, no party or individual will be bound by its outcomes, but I feel confident that the Commission’s work will command respect from all those interested in Scotland’s future.

17 Change is what we do – Wendy Alexander MSP

A beneficial by-product of strengthening Scotland’s place in the accountability of the Parliament through greater autonomy would be to the Union address some of the concerns elsewhere in the UK around relative spending levels. Fundamentally, the Commission should Inevitably a larger assigned or devolved consider the operation of the devolution element means the grant element settlement. Most federal countries have would be smaller and so potentially review mechanisms in place that let less contentious. As one commentator powers move in both directions. The case has argued – there should be no need for such an ongoing review mechanism is to get a divorce if the dispute is just one the Commission should examine. about the housekeeping bills. But for those committed to the UK, financial The Commission should be entrusted transfers within the UK – the grant to take a pragmatic approach to element – must continue to ensure questions of competence and powers. that areas with greater spending needs There are areas from welfare-to-work have the resources to fund them. Such to road transport where there is merit equalisation systems are commonplace in in considering greater powers for all modern democracies. the Scottish Parliament. Likewise the Commission could consider the operation I believe it is for the Commission to of the Parliament itself, public holidays, consider the proper balance of devolved, marine issues, animal health and so on. reserved, and assigned taxes if the By implication the Commission should accountability of the Parliament is to also consider any reasoned arguments be strengthened and relative need for the boundary moving in the opposite still respected. We should approach direction, for example in national security this with an open mind, but there are related matters such as counter terrorism some constraints here. Some suggest and contingency planning. VAT might be devolved, but EU rules appear to preclude VAT variation within Clearly, this is not an exhaustive a state. So it could not be a candidate list. But a key issue is the question for devolution, although it could be of strengthening the financial considered for partial assignation. accountability of the Scottish Likewise the issue of Corporation Tax Parliament. In short, the financing of the variation within a state also raises issues Parliament almost wholly through grant of compliance with EU rules as well as funding does not provide the proper problems of economic distortion through incentives to make the right decisions. transfer pricing. But even with these Hence strengthening the financial kinds of constraints there is still plenty of accountability of the Scottish Parliament valuable work to be done. by moving to a mixture of assigned and devolved taxes and grant is something the Commission must consider. 18 Change is what we do – Wendy Alexander MSP

This is not a prescriptive process, but Scottish Labour is the party of change a deliberative one. It is not a case of and when we come to put our proposals setting down a list of taxes or powers to the people, I also have little doubt that and instructing the Commission to make we will succeed. out a case for devolving them from Westminster to Holyrood. That would be an exercise driven by Nationalist ideology with only one end in view – greater powers for the Scottish Parliament regardless of whether or not the extra powers improve the governance of Scotland and the United Kingdom. Instead, the Commission will seek to set out, on the basis of evidence gathered from people affected by, or dependent on, the actions of government, what improvements should be made. In short, this is not an ideology-driven, but an evidence-driven process.

It is a pity that the Liberal Democrats seem to have set their face against the principle of looking at movement in both directions. Clearly in a fast changing world it is no more than woolly thinking to assume that within devolved or federal arrangements movement will always only be in one direction. The right approach is to acknowledge that this is first and foremost a review of devolution in light of almost ten years experience and we should not seek to tie the hands of those involved.

At the conclusion, it will be for the political parties to decide what parts of the Commission’s recommendations they wish to accept and put before the Scottish people for their endorsement. This will hold no fears for Scottish Labour. I have little doubt that the Commission will recommend change.

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an empire spanning the globe, and the The Union and crushing of fascist evil in Europe. And it is true that no one part of the United Scotland Kingdom could have fulfilled these things alone. But I prefer to choose a domestic The case for the United Kingdom remains illustration – the National Health Service. the common interests of its constituent Conceived by William Beveridge, an parts. It is better to work together English Liberal, given practical expression and share risk and resources than to by Tom Johnston of Scottish Labour, seek to manage a volatile environment and implemented nationally by Aneurin separately. This partnership of the Bevan of Welsh Labour, there is no better peoples of these islands is what has example of what can be achieved by the sustained the Union for three centuries. partnership of the British peoples for the It is a remarkably enduring enterprise. Its benefit of all in the United Kingdom. vitality stems directly from the unique intermingling of nations of people with It has become fashionable to claim that distinct cultures and different outlooks the days of the United Kingdom are in which the best ideas and talents have done, that its structures are crumbling, been able to flourish. and that its time has passed. I reject that utterly. Here in Scotland we have perfect Scotland rightly celebrates Scottish examples of how we still need and make achievements, such as those of James use of that United Kingdom in ways that Watt, Alexander Graham Bell, Alexander bring enormous benefits to our country. Fleming, and John Logie Baird. But our The Royal Bank of Scotland and the Bank national pride sometimes blinds us to of Scotland, both successful Scottish the fact that it was Scotland’s position banks, became even more successful in the United Kingdom that allowed and much bigger British banks through such inventiveness to realize its full takeover and merger with English banks. potential. For example it was only when From that position of strength, born out James Watt, the inventor of steam power, of the stability of the United Kingdom went into manufacturing partnership economy and its lack of internal barriers, with Matthew Boulton, a Birmingham the Royal Bank in particular has gone on engineer, did Watt’s discoveries make to become a major force in global finance. their full contribution to the Industrial Other small European countries, which Revolution. we are often invited to admire, do not have anything approaching that strength Together in partnership, the in financial services, a key industry of the achievements of the nations in the future. United Kingdom have been far greater that each could individually manage. Scottish Labour has pride in this Statements of this sort are often partnership. We reject the narrow backed up with reference to the ending Nationalist prejudice which says of the slave trade, the construction of that working with the other peoples 20 in these islands has become That, however, is not really the point. intolerable. But the examples of The real point is that at various times partnership cited above point to a flaw since 1707, Scotland has been a net in how we have presented this case. contributor to, and a beneficiary from, We have erred in presenting the United the overall stability and financial well- Kingdom partnership as one-way traffic being of the United Kingdom. What we in which the rest of the United Kingdom can also say is that at no point have has only given and Scotland has only politicians from elsewhere in the United received. The people of Scotland know Kingdom set out consciously to damage differently, and they told us so at the last the economic prospects of Scotland, or election. indeed vice-versa.

The people of Scotland know that in Instead, one of the major factors in any partnership, there will be good building the United Kingdom which, at times and bad times, times of prosperity one time, was the most economically and times of hardship. And when one successful country in the world, and in partner is down, the others reach out a maintaining the UK as a leading member helping hand up. In times of difficulty, the of the G8, is the fruitful co-operation of others come to assist. Throughout the all the parts of the Union. Only someone three centuries of the United Kingdom extremely confident of benefit to partnership, this has been the case, and Scotland from ending that Union would the reason why the United Kingdom has wish to put that at risk. A prospectus survived and all its people have emerged based on optimistic predictions of the from bad into better times. Likewise in long-term price and longevity of supply recent decades Scotland has prospered of one commodity – oil – is never likely as part of the European Union. In a fast to pass that test of benefit to Scotland. globalising world we do live in ever-more Indeed, I believe that all component parts interdependent times. of the UK would be the losers should we split up an enduring and successful I have never been one of those who union. believes that, uniquely among the nations of the world, Scotland is The people of Scotland know these incapable of standing on its own two things. It is why a steady majority feet. Political and economic arguments have always rejected Nationalism, rage about whether Scotland, with or knowing that the siren calls to embrace without oil, would be worse off if it were illusory riches one day will turn to real dependent on its own revenue base. All wreckage on the rocks of unforeseeable the available evidence tells me that even misfortune the next day. But equally, we in times of high oil prices, Scotland would in Scottish Labour need to understand struggle to maintain existing levels of that the people of Scotland know that public services. they are an asset to the United Kingdom and will not reward political parties who do not recognise that. They do not want Change is what we do – Wendy Alexander MSP

to walk out of the Union, but they do for me, as leader of Scottish Labour want to walk tall within the Union. MSPs, to dictate changes, but I do say to Scots that we should support and The partnership that is the United welcome greater local and regional Kingdom is underpinned by the decentralisation in England, allowing principles of sharing resources, voices in different parts of England to revenues, and risks. It provides be heard on their issues, just as we have solid foundations for an economy sought that for ourselves. This may be in which all nations and regions something on which the Commission benefit. These principles are the basis will have thoughts to offer. But the for a common citizenship founded not so-called English question is properly only on legal and political rights but also for UK colleagues to consider. And we on access to social rights in the form must resist Nationalists of whatever of the welfare state. Those 3 Rs - of provenance fanning any English resource, revenue and risk sharing - also resentment for partisan reasons. secure for Scots our social citizenship - our right to benefits and pensions as It is also right that we should look well as access to free schooling and further afield, for example, to learn the healthcare through the NHS. Again lessons from the funding of devolved this is territory the Commission should jurisdictions and their interaction with explore, recognising the benefits to central administrations internationally. Scotland of the stability of the macro- Such an approach could support the work economic management we have enjoyed of the Commission and its secretariat, in the United Kingdom under a Labour not least about the proper balance government. between incentive and equalisation effects. The other important United Kingdom question at stake here is that for those The nature of the Union, what people committed to progressive politics across feel about the Union, is changing and the whole country, the issue is how to so must political thinking about the allocate spending in a way that assesses Union. Conservatives view the Union is need properly, is fair to all parts of the something which is unchanging, static, United Kingdom, and does not penalise a rock to which they want to cling. But the poor. By definition, these questions for progressives the Union is in have wider implications than just for constant change, always evolving Scotland. So it is entirely right that a – a progressive political philosophy United Kingdom voice is heard on these which is in tune with popular matters. sentiment. This is not a threat to Scottish Labour, but an opportunity The Union has something for all its which we must eagerly seize. constituent nations – the devolved nations of Scotland, Wales, and Northern Ireland - and for England too. It is not 22 Change is what we do – Wendy Alexander MSP

of the Scottish Parliament has helped to Change and the engender. way ahead One of the areas where Scottish Labour has to do that is the constitution. We These are exciting times in Scotland. know that when Labour is the party of There has been for some years a ideas on the constitution, it typically sense of new-found confidence. Walk commands support. We know also that the streets of Glasgow, Inverness or there is unfinished business from the Dumfries; look inside the offices of 1998 Scotland Act and it is Scottish Dundee, Stirling and Greenock or the Labour’s job – in partnership with other boardrooms of Edinburgh and Aberdeen. parties and with our Labour colleagues in You can feel and see the growing the rest of the United Kingdom – to fix it. confidence. We have more jobs, more modern apprenticeships than ever Scottish Labour needs to rediscover before, a better infrastructure and its distinctive voice on the future of fast-growing dynamic industrial and the United Kingdom. Labour gave the commercial sectors. Our entrepreneurs Scottish Constitutional Convention and their ideas, drive and skills are there momentum 20 years ago, led on creating for all the world to see. the Scottish Parliament 10 years ago, and is, I believe, will now to lead on the It is Labour in Scotland, with next steps. Those steps, I firmly believe, our strong traditions of radical will lead to the Union being a more progressive policies, that has comfortable home for all its members. changed this country for the better. Look back at our historic leadership on It means change, and when land reform, social housing, and hydro constitutional changes are involved, power. And in modern times, look at free it also means there will be difficult bus travel, community land ownership, choices ahead. For Scottish Labour, that the smoking ban and tackling anti-social prospect should be exciting, for we are behaviour. These are all progressive the party of change. And, in the end, the policies made in Scotland by Scottish decisions we will have to make may look Labour, the latter ones only made difficult, but may in fact be relatively possible by our championing and delivery straightforward because the guiding of radical constitutional change – the principle will be to do what is best for the Scottish Parliament. better governance of these islands, their nations, and their people. The task now for Scottish Labour is to rediscover our progressive voice, to find What the next generation will demand of new policies for radical change, and to us, is a settlement that honours the birth match our vision for the years ahead of devolution without being hidebound to the modern confidence of Scots, a by it. And in our work, we will keep sight confidence which the first eight years of the one over-riding goal – how to 23 Change is what we do – Wendy Alexander MSP make Scotland and the United Kingdom fairer places to live and work.

The priorities of the people of Scotland remain the same as others in countries the world over – better jobs, health, education, law-and-order, housing. While we engage in constitutional reform discussions, we must also develop our proposals to meet these, the people’s priorities. And in any constitutional proposals we develop, they will be put forward in order to better fulfil these priorities.

It means a lot of hard work before the next Scottish election, now only three years away. It means changes in strategies, changes in thinking, changes in policies. That is nothing new for Scottish Labour. Change is what we do.

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0158_08 Promoted by Lesley Quinn, Scottish General Secretary, on behalf of the Scottish Labour Party, at John Smith House, 145 West Regent Street, Glasgow G2 4RE. Printed by J. Thomson Colour Printers Ltd 14 Carnoustie Place Glasgow G5 8PB.