Select Committee on Delegated Powers and Deregulation Twenty-Fourth Report


ANNEX

SCOTLAND BILL

Memorandum by the Scottish Office

1.      This Memorandum, prepared by the Scottish Office, indicates the ways in which the Scotland Bill devolves legislative power to the Scottish Parliament and to Scottish Ministers and identifies those provisions in the Scotland Bill which give powers to make delegated legislation. It explains the purpose of such powers, the reason why the matter is to be left to delegated legislation, and the nature of, and reason for, the procedure selected.

Outline and Scope of the Bill

2.      The key provisions of the Bill will:

      -  establish a Scottish Parliament and provide for elections of members of the Parliament;

      -  define the law-making powers of the Parliament;

      -  establish a Scottish Executive;

      -  provide for functions to be exercisable by the Scottish Ministers;

      -  establish a Scottish Consolidated Fund and make provision for the payment of sums into and out of that Fund; and

      -  provide the Parliament with a defined power to vary the basic rate of income tax for Scottish taxpayers

  Structure of the Bill

3.      The Scotland Bill is divided into 6 Parts as follows:

      Part I - The Scottish Parliament (clauses 1-40). This Part provides for the establishment of the Parliament and its administration and for elections to it. It also defines the wide-ranging powers which the Parliament will have to make laws, to be known as Acts of the Scottish Parliament.

      Part II - The Scottish Administration (clauses 41-60). This Part establishes the Scottish Administration, which will effectively be the government in Scotland in respect of devolved matters and will thus assume the functions of the Scottish Office and associated Departments; provides procedures for the appointment and dismissal of members of the Scottish Executive including the First Minister, Ministers appointed by him and the Scottish Law Officers - i.e. the Lord Advocate and Solicitor General; provides for the transfer of executive functions to the Scottish Executive, and provides for the transfer of property and liabilities to the Scottish Executive.

      Part III - Financial Provisions (clauses 61-68). This Part provides for the financial arrangements for the Parliament and the Scottish Administration, and for the accounting and auditing of the funds made available to them.

      Part IV - The Tax-Varying Power (clauses 69-75). This Part gives the Scottish Parliament the power to vary the basic rate of income tax for Scottish taxpayers by up to 3p.

      Part V - Miscellaneous and General (clauses 76-100). This Part includes, among others, clauses on salaries and pensions of members of the Parliament and the Executive, Scottish representation at Westminster, and arrangements for handling complaints about maladministration.

      Part VI - Supplementary (clauses 101-117). Several clauses in this Part deal with the powers under the Bill to make subordinate legislation. The other clauses in Part VI are largely technical.

  General

4.      The Scotland Bill provides for a very significant change to the government of Scotland. Its main provisions provide for the establishment of a Scottish Parliament to pass legislation about matters which are not reserved ("devolved matters") and for the transfer from Ministers of the Crown to Scottish Ministers of functions in relation to those matters.

  Scottish Parliament

5.1    The Scottish Parliament will be an elected body, able to make its own legislation and directly accountable to the people of Scotland for its decisions. Under clause 27 of the Scotland Bill, the Scottish Parliament will have power to make laws, which are to be known as Acts of the Scottish Parliament ("ASP"). Clause 28 provides that an ASP is not law so far as any provision of it is outside the legislative competence of the Scottish Parliament and then defines what provisions are outside that competence. In particular, clause 28(2)(c) provides that a provision is outside that competence so far as it "relates to reserved matters", and Schedule 5 defines the reserved matters.

5.2    Acts of the Scottish Parliament are not subject to scrutiny in the Westminster Parliament. While the detail of the scrutiny arrangements in the Scottish Parliament will be a matter for the Parliament itself, the Bill has a number of clauses to ensure that Bills are within the legislative competence of the Parliament. In particular, clause 30 requires a member of the Scottish Executive in charge of a Bill to make, on or before the introduction of the Bill in the Parliament, a written statement that the provisions of the Bill are within the legislative competence of the Parliament. Clause 31 requires the standing orders to provide that a Bill is not introduced if the Presiding Officer decides that any provision of the Bill is not within the legislative competence of the Parliament. Clause 32 empowers the Advocate General for Scotland, the Lord Advocate or the Attorney General, at any time during a period of 4 weeks after the passing of the Bill, to refer any question as to whether the Bill or any provision in it is within the legislative competence of the Parliament to the Judicial Committee of the Privy Council for decision. In addition, in certain cases, which are described further below in the detailed note on clause 33, the Secretary of State may make an order prohibiting the Presiding Officer from submitting a Bill which is within the legislative competence of the Scottish Parliament for Royal Assent.

  Subordinate legislation made by Scottish Ministers

(a)  General

6.1    The Ministers in the Scottish Administration will be known as Scottish Ministers which is the collective name given to members of the Scottish Executive.

6.2    Under clause 49, existing statutory and non­statutory functions of the Ministers of the Crown will be transferred to Scottish Ministers, so far as they are exercisable within devolved competence. In terms of clause 50, this broadly means that the Ministerial functions will transfer to the extent that the Scottish Parliament would have the competence to confer such functions on Scottish Ministers in an ASP to be exercised in that way. In particular, this means that the functions which will transfer will be functions which are exercisable in or as regards Scotland and are not in relation to a reserved matter listed in Schedule 5. The functions which will transfer will include powers to make subordinate legislation.

6.3    When the functions transfer to Scottish Ministers under clause 49, any existing statutory provision requiring the consent of any Ministers (including the Treasury) will cease to apply by virtue of clause 51.

6.4    In certain cases, functions which have been transferred may continue to be exercised by Ministers of the Crown as well as by Scottish Ministers - see clauses 52 and 53(1). In particular clause 53(1) provides that any functions in relation to observing and implementing Community law which are transferred to Scottish Ministers under clause 49 will continue to be exercisable by a Minister of the Crown.

6.5    Clause 59 enables additional Ministerial functions to be transferred from Ministers of the Crown to Scottish Ministers by Order in Council. This will be used to transfer to Scottish Ministers functions in relation to reserved matters, including powers to make subordinate legislation. These powers are described in more detail below.

6.6    Apart from the existing statutory functions to make subordinate legislation which will be transferred to Scottish Ministers from Ministers of the Crown, the Scottish Parliament will be able to confer upon them powers to make subordinate legislation in ASPs.

(b)  Procedures for subordinate legislation made by Scottish Ministers

7.1    Clause 106 (subordinate legislation) provides that where a function of making, confirming or approving subordinate legislation is transferred to the Scottish Ministers under clause 49, any requirement for the instrument or draft instrument to be laid before Parliament and for the annulment or approval of the instrument by Parliament are transferred to the Scottish Parliament. In other words, such subordinate legislation will cease to be subject to scrutiny in the Westminster Parliament.

7.2    Similar provision is made in the case of powers to make subordinate legislation within devolved competence which are conferred upon a person other than a Minister of the Crown, such as Her Majesty in Council or the Registrar General of Births, Deaths and Marriages for Scotland or the Court of Session. Such subordinate legislation will also no longer be subject to scrutiny in the Westminster Parliament.

7.3    Where a power to make subordinate legislation is transferred to Scottish Ministers in a clause 59 order, the clause 59 order will make provision, similar to that in clause 106, providing that the subordinate legislation will no longer be subject to scrutiny by the Westminster Parliament but will instead be subject to scrutiny in the Scottish Parliament.

7.4    It will be a matter for the Scottish Parliament to establish procedures for scrutinising statutory instruments laid before it, as was made clear in paragraphs 9.1 and 9.8 of the White Paper Scotland's Parliament. Work has begun to devise detailed procedures, but until the Parliament is fully established the exact procedures will not be known. Under the powers to make transitional provisions interim standing orders will be provided for the Parliament. These will include arrangements for the scrutiny of subordinate legislation by the Scottish Parliament. Paragraph 8 of Schedule 4 ensures that the Parliament has full legislative competence over its procedures for the making of subordinate legislation, including that made under powers contained in the Scotland Bill.

  Proposals for Subordinate Legislation under the Bill

(a)  General

8.1    The Scotland Bill provides for a very significant change to the government of Scotland. It would be impractical for every aspect of this change to be contained in the Bill itself, and therefore a number of powers to make subordinate legislation have been included. As the settlement is intended to be long-lasting, it is essential to build in a degree of flexibility. For example, there is provision in clause 29 for the list of reserved matters in Schedule 5 to be amended by Order in Council with the agreement of the Westminster and Scottish Parliaments. This might be required in the future to deal with issues which cannot be foreseen in the Bill itself. Similarly, there is a power in clause 95 to modify enactments in consequence of an Act of the Scottish Parliament, the exercise of which will depend on the nature of the provision made in that Act. Other examples where powers have been taken because of dependence on future events include clauses 92 (remedy of ultra vires acts) and 98 (agreed redistribution of functions). There are a number of procedural matters, such as the prescription of the form of Letters Patent signifying Royal Assent to a Bill, which are more appropriately dealt with in subordinate legislation.

8.2    There are more than 30 provisions in the Bill which permit the making of subordinate legislation. These vary considerably in scope and importance. Clauses 101 to 103 draw together the provisions which are supplementary to these powers and the provisions about the procedure required in the Westminster and/or Scottish Parliaments and the person by whom each power is exercisable. This approach avoids the need to specify these matters in each clause, thus simplifying the overall structure of the Bill.

8.3    The following paragraphs describe in general terms the provisions of clauses 101-103. Clause 104, which makes supplementary provision about orders concerning the transfer of property, is described in a separate entry in the section on each of the particular powers.

8.4    The table shows the effect of clauses 101-103 for each power to make subordinate legislation.


 
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