Scotland's Parliament Fundamentals for a New Scotland Act Contents EXECUTIVE SUMMARY ......................................................................................................................................................... 5 CHAPTER 1: SCOlllSH DEVOLUTION : CONTEXT AND POLICY ........................................................................ 11 The Scottish Context .................................................................................................................................................... 13 The Conservative Response ....................................................................................................................................... 17 The Scottish Constitutional Convention ................................................................................................................ 19 The Constitution Unit's Agenda ............................................................................................................................... 21 CHAPTER 2: THE LESSONS OF THE PAST ...................................................................................................................23 History ...............................................................................................................................................................................24 Whitehall ......................................................................................................................................................................... 26 Parliament: The Devolution Bills ...........................................................................................................................28 The Lessons ................................................................................................................................................................... 31 CHAPTER 3: THE SCOTLAND ACT: FORM OF THE LEGISLATION. RESOLUTION OF DISPUTES. ENTRENCHMENT ...........................................................................................................33 Federalism and Devolution ......................................................................................................................................... 34 Transfer of Powers ........................................................................................................................................................ 35 Resolution of Disputes ................................................................................................................................................. 45 Entrenchment .................................................................................................................................................................49 CHAPTER 4: POWERS OF THE PARLIAMENT ............................................................................................................. 53 The Royal Commission's Appraa& ..........................................................................................................................54 The Scope for Devolution Today .............................................................................................................................55 Reservation in Practice ...............................................................................................................................................56 The Electoral System ................................................................................................................................................... 56 Scots Law and Legal System ....................................................................................................................................58 CHAPTER 5: FINANCIAL PROVISIONS .......................................................................................................................... 63 The Present Arrangements .........................................................................................................................................65 Financial Proposals of the SCC: Assigned Budget .............................................................................................69 Block Grant Finance and the Assessment of Need ............................................................................................71 Flexibility: Sources of Finance Outside the Block ............................................................................................. 79 Assignment of Scottish Tax Revenues ................................................................................................................... 85 Conclusion ......................................................................................................................................................................86 CHAPTER 6: SCOTLAND AND THE EUROPEAN UNION .........................................................................................87 The European Context .................................................................................................................................................88 Representing Scotland's Interests ............................................................................................................................89 Direct Access to EU Policy-making .........................................................................................................................90 Influence on National Policy-making Arrangements ....................................................................................... 93 The Role of the Scottish Parliament ....................................................................................................................... 96 CHAPTER 7: SCOTLAND'S RELATIONS WITH CENTRAL ~~V~RNMENT..................................................... 99 Cabinet: the Secretary of State for S~0thnd.................................................................................................... 100 Parliament: the West Lothian Question ............................................................................................................. 108 Scottish Business at Westminster ......................................................................................................................... 113 Whitehall: the Civil Service .................................................................................................................................... 114 Interlocking Machinery ............................................................................................................................................ 116 CHAPTER 8: RELATIONS WITH LOCAL GOVERNMENT ...................................................................................... 119 Context ........................................................................................................................................................................... The Scottish parliament/Local Government Relationship ............................................................................. Securing and Maintaining Local Government: a Constitutional Guarantee? ........................................ Power of General Competence? .............................................................................................................................. Subsidiarity ................................................................................................................................................................. A Central/Local Concordat? ..................................................................................................................................... Dual Mandates ............................................................................................................................................................ Conclusion .................................................................................................................................................................... CHAPTER 9: ECONOMIC AND INDUSTRIAL POLICY .........................................................................................131 Devolution and Economic Development ............................................................................................................ 132 The Scope for Autonomy Today ...........................................................................................................................134 Scottish Policies To Match Scottish Needs ......................................................................................................... 135 Financial Assistance for Regional Development ..............................................................................................136 Privatised Utilities ......................................................................................................................................................140 Agriculture and Fisheries ........................................................................................................................................ 141 Economic Policy and Other Aspects of the Settlement ..................................................................................142 CHAPTER 10: THE TRANSITION: FROM ROYAL ASSENT TO ESTABLISHMENT ...................................... 143 Pre-Royal Assent ........................................................................................................................................................145 Post-Royal Assent .....................................................................................................................................................147