Select Committee on Scottish Affairs Minutes of Evidence


Examination of Witnesses (Questions 20 - 39)

WEDNESDAY 21 JUNE 2000

DR J REID, MR B WILSON AND DR L CLARK, QC

  20. I feel I am being told what I am saying when I have not said that. Could the Secretary of State clarify the mechanism for allocation of Structural Funds? Does European Structural Funding go directly to the Scottish Parliament from Europe or does it go to the UK Treasury and then to the Scottish Executive as part of the assigned budget? What is the mechanism?
  (Dr Reid) If you do not know that after all your years in Parliament ... The money which goes to the Scottish Executive to administer within the Scottish Parliament comes from the United Kingdom block grant.

  21. Perhaps you should tell your own Scottish Parliament Finance Minister, because he does not seem to know the answer. He gave two separate answers on two separate occasions saying opposite things.
  (Dr Reid) The whole idea of devolution is that the people who are accountable to the Scottish Parliament speak to the Scottish Parliament and I have no intention of speaking to the committees or otherwise in the Scottish Parliament because I am accountable to this Parliament and I have just given you the answer. You did not hear the answer.

  22. It would be better if you actually clarified that to your own Scottish Executive Minister.
  (Dr Reid) May I just correct you? Mr Welsh does not seem to know that they are not my Scottish Executive Ministers. He is a Member of the Scottish Parliament and they are his Scottish Executive Ministers.

  23. I accept that. ... to say to the Scottish Finance Minister, because this clearly involves UK Treasury and UK policy. May I say, had you explained it to the Finance Minister in the Scottish Parliament then he would not have been confused? Why did both you and the Chancellor of the Exchequer refuse to give evidence to two major inquiries, to the Finance Committee and to the European Committee of the Scottish Parliament? If you had there would be no confusion in the statements made by the Finance Minister surely?
  (Dr Reid) There are two questions. On the first one, I do not know what was said by the Minister being referred to, so I am not prepared to take that. I would make a general statement that if I am being held responsible for every mistaken statement which occurs in the Scottish Parliament, it is a responsibility which was not explained to me when I took this job and might have affected my acceptance of it. So far as the second one is concerned, which is why I chose on two occasions to feel it was more appropriate for someone else to address the Scottish Committees, I do not know whether you are aware of the guidelines. It is all in the Cabinet Office network, it is in the House of Commons Library, it has been for a year.

  24. May I say to the Secretary of State—
  (Dr Reid) May I answer your question, which is what you want me to do? Are you aware of the guidelines about Ministers' appearances before Scottish Committees? Are you?

  25. Yes.
  (Dr Reid) So you will be aware that it says, "If Ministers are invited to attend in circumstances where they cannot be required to do so then it is a matter for them as to whether they attend or not".

  26. Certainly and you chose not to attend.
  (Dr Reid) Do you accept that? This has been agreed between the parliaments. You asked me a question and I am going to go right through the guidelines and tell you why I did not go to that Committee.

  27. If we accept that the Secretary of State can, because of devolution, not appear before the Scottish committees, that he will accept that is his decision, may I say that if he had he might have clarified the problem clearly facing the Finance Minister and clarified these problems regarding UK policy? I shall tell you what Mr McConnell said. He said that the money from the European Commission goes directly to the Scottish Executive and they pass it on to local problems. He said that on 15 June, but on 30 May he said that money passed from the European Commission to the UK Treasury and then to the Scottish Executive, a straight contradiction. I would suggest to the Secretary of State that on UK policy if he appeared before those committees he might be able to clarify those matters on UK policy and statutory duty.
  (Dr Reid) I am trying to answer questions and I am getting a series of assertions. Would you prefer me to answer the question as to the rules and regulations for Ministers appearing before committees and how I applied them or do you want to deal with the matter of the European Structural Funds?

  28. Both are connected.
  (Dr Reid) May I deal with the first matter then and make it absolutely plain? These documents are agreed by both parliaments. They have been published for a considerable amount of time. Some of the comment I have seen suggest that the people asking the questions and writing letters have never read them or been aware of them. "5. If Ministers are invited to attend in circumstances where they cannot be required to do so then it is a matter for them as to whether they attend or not". Then in the list of criteria and considerations we should take into account the first one says, "Ministers' primary duty of accountability is to the UK Parliament, which retains sole authority for non-devolved matters". The third point is that one of the considerations shall be—and this is highly relevant to the Committee if you wish to listen rather than laugh.

  29. I have seen this tactic before Secretary of State.
  (Dr Reid) I am sorry, I am just reading out documents which two parliaments agreed and you are a member of both so I thought you would be aware of them.

  30. We are all aware of them and what you are doing.
  (Dr Reid) Let me read it then. One of the considerations when I was invited to attend the committee investigating European Structural Funds was "whether the Minister", me, "or another UK Government representative has recently attended to give evidence on the same or a closely related topic; or, in the case of the Scottish Parliament, where a Minister has recently given, or been invited to give, evidence to a Commons or Lords Select Committee on the same or a closely related subject". I was invited to this Committee to do it. I am, under the first point, under a duty primarily to this Committee and under the third point of the published and well-known guidelines, invited to this Committee to discuss this subject or a closely related subject. We have been discussing today the very subject which the Scottish committee requested I attend to discuss and that is precisely on this occasion why I did not go to the committee. I would have thought that all members of this Committee in particular would have been well aware of precisely the reasons as laid down in the guidelines agreed between the two parliaments.

  31. We have a straightforward problem of the Finance Minister saying he cannot speak on UK matters and will not speak on UK matters and the Minister with UK responsibility not fulfilling his duty in allowing this committee access to information. Could I ask the Secretary of State, if he will not appear before the Scottish Parliament committees, will he give an undertaking to provide the Scottish Parliament's inquiry with UK documentation to the Commission on how additionality is fulfilled in the UK?
  (Dr Reid) Of course and that is in the guidelines as well. Under the concordats that information is already shared, which I should have thought the honourable Gentleman would have known and under the guidelines ... I can read chapter and verse.

  32. Would that go to the inquiry?
  (Dr Reid) It is as well to clear it. Since the honourable Gentleman has been speaking at great length outside this Committee I should be allowed a couple of minutes just to put him right on all the facts. Point 5 of the guidelines and considerations covers this as well. One of the considerations is "whether the devolved legislature might", that is Scottish Parliament in this case, "acquire the information by some other means (evidence may have recently been given to the Westminster Select Committee", it says here for instance, "on the subject or if it is seeking mainly factual material might a memorandum be provided, at least in the first instance)". It goes on to outline the other methods by which it can be done. In other words, all of the answers to the questions which the honourable Gentleman seeks to be making an issue of have been available to him and everyone else for the past nine months in the House of Commons Library and, as I understand it, in the Scottish Parliament and indeed on the net.

  33. Can you confirm that Structural Fund expenditure counts as comparable expenditure in the Barnett Formula?
  (Dr Reid) I cannot confirm that off the top of my head but I shall take advice from behind me. Yes, it is, provided of course that it is spent on comparable things.

  34. That takes us back to earlier arguments which he has denied.
  (Dr Reid) Sorry, which earlier argument did I deny?

  35. Regarding ESF and its effect on the Barnett Formula and future Scottish budgets. Could I say that we now have a situation where the Secretary of State will not explain UK policy directly to two major investigations by two Scottish Parliament committees and where a Scottish Executive Minister says he cannot explain UK policy. Could I ask you how that fulfils your department's objectives to "promote links between the Scottish Parliament and Westminster"?
  (Dr Reid) I have read out to you the agreement between the two parliaments. That is agreed by the two parliaments, at least by a majority within them. What I will not allow is those who have never accepted devolution, those who do not support devolution, those who wish to undermine devolution, attempting to use any partnership agreements to force either of these parliaments into a battering ram against the other. I will not allow that to happen. It is not the wish of the Scottish people. It is the wish of a minority in the SNP. I will not allow it to happen.

  36. I quite agree with you, Secretary of State.
  (Dr Reid) Good.

  37. There should not be a battering ram between two parliaments but there should also be contact and you should explain UK policy to the Scottish committees which are investigating matters which include UK policy because that is not what has been happening.
  (Dr Reid) You diminish your colleagues round this table. Most of them are elected representatives of the Scottish people. This Committee represents the political will of the Scottish people. This Committee has the power to inquire into reserved matters. You are a member of this Committee. You could have raised any of these matters at any time. You could have taken the trouble to read the guidelines. Do not attempt to split asunder the representatives of the Scottish people and do not attempt to insinuate that the people on this Committee are somehow less capable of looking after reserved affairs than you and your party sitting in Holyrood.

  38. Again you are putting words in my mouth.
  (Dr Reid) Those are your opinions; they are my words.

  39. I in no way denigrate this Committee at all. I am a member of it, in fact the longest serving member of it. What I am intent on doing is asking you what use is the Scotland Office in fostering goodwill with the Scottish Parliament and supplying information about UK matters which you have not done to the committees. I do not think that would in any way infringe your fears about problems, in fact it would help the two parliaments work together. It is you who are undermining devolution by your failure to appear properly before Scottish committees on this UK issue.
  (Dr Reid) People can judge. They do not have to look in the crystal ball, they can read the book. They can look at the last 25 years and can see whether you or I have supported devolution and they can look at every statement which is issued and see whether you or I are fostering partnership between the two parliaments. People will make their own judgement on that and I am content that as ever three quarters of the people of Scotland will decide that those of us who hold my view, which is that the two parliaments should work in partnership, will be in the vast majority compared to the minority, who are yours, who want to see Great Britain broken up and parliaments rent asunder.

  Mr Welsh: Once again you have used your office for party-political propaganda. I am happy to have my record over the past 26 years in this Parliament on devolution, for which I voted. You know and I know that I want independence for Scotland, but I fully supported devolution in that time. Within the Scottish Parliament I am fully making sure that Parliament works and works well for the Scottish people. You are lowering the status of your office in making such accusations which are unfounded as far as I am concerned.


 
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