Help Sitemap Home Skip Navigation Contact Us Disability Statement


Ian Swanson: Calman will try to bring parties together

Premium Article !

Your account has been frozen. For your available options click the below button.

Options

Premium Article !

To read this article in full you must have registered and have a Premium Content Subscription with the Edinburgh Evening News site.

Subscribe

Registered Article !

To read this article in full you must be registered with the site.

Click on thumbnail to view image
Click on thumbnail to view image
Click on thumbnail to view image
Click on thumbnail to view image
Click on thumbnail to view image

Published Date: 20 November 2008
IT'S nearly a year since the idea of a cross-party commission on more powers for the Scottish Parliament was officially put forward by Wendy Alexander in a St Andrew's Day lecture at Edinburgh University.
Former senior civil servant Sir Kenneth Calman was appointed in March to head the group. And at the beginning of next month, he is due to publish his interim report – speedy work on a complex topic.

But Scottish politics is nothing if not fast-mov
ing.

Since the Calman commission came into being, two of the three party leaders who set it up, Ms Alexander and Liberal Democrat Nicol Stephen, have resigned; the team in charge of the Scotland Office, Des Browne and David Cairns, have also been replaced; Labour's own fortunes reached rock bottom in the wake of the Glasgow East by-election and were revived by Glenrothes; and the financial crisis has dramatically changed the backdrop to the political debate on Scotland's future.

It is not clear how far next month's report will go in putting forward definite proposals – Sir Kenneth is not scheduled to present his final recommendations until next spring.

Big questions remain about whether any scheme he eventually produces for further devolution will command support from the three parties which are backing the commission.

But there is no doubt some serious work has been done behind the scenes.

A report on taxes and finance published earlier this week by an independent expert group, led by Professor Anton Muscatelli, principal of Heriot-Watt University, included a detailed discussion of issues such as accountability, efficiency, fairness and transparency, and a survey of how some other countries with devolved administrations deal with taxation and finance.

Rather than the SNP's favourite overseas models, the famous one-time "arc of prosperity" – Ireland, Iceland and Norway – the commission looked at Australia, Germany, Canada, Switzerland and Spain.

Professor Muscatelli and his colleagues said tax "assignment" – simply allocating Scotland the revenue from taxes collected here – would not work because it would need to be supplemented by some further payment from the UK Government.

They also argued full fiscal autonomy – handing Scotland control of all its own taxes – would not be "readily compatible" with staying in the UK.

However, they did not come up with any hard and fast recommendations about how tax powers should be divided between Holyrood and Westminster.

One senior MSP admits to some disappointment there was not a clearer steer from the group.

"Many people were expecting some kind of general recommendation from such an expert group, but it is still useful, especially in providing international examples. If people understand there are lots of different ways of arranging finance and taxation which are already used in other countries, it gives people confidence."

Liberal Democrats have long supported a major transfer of new powers to Holyrood. But Tory MSPs are split between those who believe Scotland must be responsible for raising the money it spends and others who argue the Scottish Parliament is always going to have a left-of-centre majority more inclined to tax and spend than tax-cutting, pro-business policies.

There are differing views within Labour too. Gordon Brown appeared no more than lukewarm towards the idea of the Calman commission when Ms Alexander first proposed it. He reportedly wanted to downgrade it to a "working group" or a "review".

Then, in his speech to a CBI Scotland dinner in September, the Prime Minister signalled support for more powers for Holyrood when he said the "one problem" with devolution was the Scottish Parliament was "wholly accountable for the budget it spends, but not for the size of its budget".

Just a week later, he tried to water down his comments, claiming the speech had been "misread" and he just wanted to wait for Calman to report.

And the UK Government's response to Calman published last week largely steered clear of comment on tax powers and focussed instead on questioning Holyrood's strategic planning powers on the grounds the SNP wants to use them to block any proposals for new nuclear power stations, which is a Westminster responsibility.

Senior Scottish Labour figures have sought to distance themselves from the submission. One party source says diplomatically: "There is some disappointment about the UK Government response." Then he adds: "I'm not sure why they put in a response because the Calman commission will report to them as well as the Scottish Government, they would have been better not making a submission at all."

A senior Labour figure who has discussed the question of further devolution with the Prime Minister, says Mr Brown still has to be persuaded about the importance of more powers.

However, one of the party's Holyrood backbenchers insists the Scottish party is still firmly in the "more powers" camp.

"The leadership is holding its fire at the moment, but the group discussed it recently and the mood music is still very much that we are up for change.

"We remain committed to financial changes. The current situation is not tenable. We need more financial accountability for the parliament.

"We can't just have assigned revenues, we have got to get the right mixture."

This backbencher also argues for some shift in legislative powers as well as financial ones, with control of firearms perhaps the most obvious candidate for transfer from Westminster to Holyrood.

Once Calman's final report comes out next year, the three opposition parties will need time to consider their positions. But they will be under pressure from the SNP to come up with a clear set of proposals which the Nationalists will challenge them to put to the vote alongside independence in a multi-option referendum. Alex Salmond has the date pencilled in already: November 30 2010.





The full article contains 963 words and appears in Edinburgh Evening News newspaper.
Page 1 of 1

  • Last Updated: 20 November 2008 9:29 AM
  • Source: Edinburgh Evening News
  • Location: Edinburgh
  • Related Topics: Ian Swanson
 
1

Linda,

Edinburgh 20/11/2008 09:54:59
The Calman Commission is flawed as it refuses to consider the independence option or even full fiscal autonomy for the Scottish Parliament which will only become responsible once it has powers over taxation and have borrowing powers like any normal Parliament.

Even local authorities have more powers.

Calman will come out with a limited increase in powers but nothing substantial in the hope of stalling the demands for independence.
2

Alan B,

20/11/2008 10:02:19
"They also argued full fiscal autonomy – handing Scotland control of all its own taxes – would not be "readily compatible" with staying in the UK."

Why? That simply does not make sense.

It is simply ridiculous this group has not come up with a clear set of proposals. It makes the whole thing pointless.

The other big missing point is the poorly performing scottish economy. Devolving finance is not just about making the parliament accountable for the money it spends. In fact that is abit of a secondary issue. The main idea behind devolving fiscal powers is the address our economic problems.

Part of the problem for Brown backing devolving economic powers particularly round fiscal policy is it an admission of failure of his economic management. The guys ego will just let him admit that he has badly failed scotland.
3

Ugly George,

Edinburgh 20/11/2008 11:14:33
2 Alan B
The big problem they have is how to match the funding from the Barnett Formula. It has been argued that this could be met by a proportion of oil revenues but that presents other problems.

At last years budget it was forecast that total oil/gas revenues would be £9.9bn. When the price spiked to $140 some said that the amount could be £14bn+ but a report in the FT stated that at current prices ($50)the amount would be less than £4bn.

It is difficult to see how you can plan a budget on this basis.
4

steve 1511,

aberdeen 20/11/2008 13:10:26
we await with anticipation what our great leader the gibbering eejit comrade broon of the liebour sleaze and corruption stasi party has to say on this issue,will it interfere with his crusade to turn britian into a state based on the soviet eastern block model.
country bankrupt
3 million unemployed
banks bust
house prices in a downward spiral
no vote on europe,after we were promised one
42 days detention,knocked back by the lords
cctv on every corner, to spy on us
ID cards to spy on us
WE ARE DOOMED WITH BROON, DOOOOOOOMED
5

Number 6,

Germany 20/11/2008 15:18:37
#4 Steve, its called the "Union Dividend".
6

Alan B,

20/11/2008 15:46:18
#Ugly George

Firstly why would fiscal autonomy be somehow incompatible with staying within the union. That as far as i can see is silly.

Secondly if they delivered fiscal autonomy it may or may not match barnett. With oil sometimes it would be higher and sometimes lower. Other countries (some with oil) manage their budget and scotland could and should do likewise.

The problem for labour is how can they reject fiscal autonomy and not cut the scottish budget via Barnett.

With fiscal autonomy scotland would be relient on improving its growth rate and hence wealth to boost its prosperity.

The parliament would hopefully then stop concertrating on spending money and actually concentrate on generating it.
7

Scunnert,

20/11/2008 16:25:55
Calman is a con designed to allow Broon to claw back powers to Westminster while reducing our pocket money. Calman is the midwife of an enfeebled Scotland, but Broon is the daddy.
8

puskas,

East kilbride 20/11/2008 16:39:30
No7 Scunnert,

How correcr you are.. Many good submissions from you..

Very accurate and to the point

Cheers
9

Ugly George,

Edinburgh 20/11/2008 17:01:45
6 Alan B
Please don't get me wrong. I am all in favour od financial accountability and responsibility. The problem is that I don't think that many realise what this would entail.

If you are talking about fiscal autonomy then the Scottish Govt's own figures point to a deficit of £10.2bn in the Scottish budget for the last year (2006/07) for which complete figures are available. Since then the spending budget for the Scottish govt has increased markedly and, now that we are in a recession, tax receipts will be much lower so the deficit is bound to be substantially greater.

£10.2bn is more than 10% of Scottish GDP. To put this into perspective, forecast UK deficit is expected to be really bad this year at approx £70bn but this is only approx 5% of UK GDP.
The level of deficit in the Scottish budget is therefore unsustainable on its own and can only be dealt with by
1) massive cuts in public spending
2) massive increases in taxation
3) an allocation of oil/gas revenues.

However if oil/gas revenues are volatile and dependent on falling production (which they are) they can hardly be described as reliable in the medium to long term and a budget based on them cannot be sustainable in the long term. This means that one of the two other options needs to be considered. I know which I would prefer but is this politically acceptable.
10

Mikey,

20/11/2008 17:13:08
#9, citation please....
11

,

20/11/2008 17:25:37
Comment Removed By Administrator
Reason:
12

Scunnert,

20/11/2008 17:28:46
8 puskas, East kilbride 20/11/2008 16:39:30

Thanks for the endorsement. Your kind words are appreciated.

BTW - Saw Ferenc Puskas play once for Real with Di Stefano - what a combination.
13

Ugly George,

Edinburgh 20/11/2008 17:31:25
10 Mikey
The £10.2bn deficit is from the Scottish Govt's own GERS figures for 2006/07 and details the total deficit in the Scottish budget if no oil/gas revenues are allocated. If oil/gas revenues are allocated then the figure is reduced. This is what I was saying in effect in post 9.

Figures for Scottish and UK GDP are readily available from many sources and you will see that they are consistent with my comments.

UK PSBR for the current year is 37.4bn (source UK treasury) up to Sept/Oct. That is why it is forecast to be approx. £70bn by the end of the financial year (April 5)
14

Ugly George,

Edinburgh 20/11/2008 17:35:22
11 Jwil
Perhaps because of the rate of taxation in Scandanavian countries. Go and check them for yourself. You will find that income tax, and VAT are very much higher than they are here. There is also VAT on food in Scandanavian countries which we do not have here.
15

Ugly George,

Edinburgh 20/11/2008 17:40:27
11 Jwil
PS - rates of tax in Norway :

Starting rate for income tax 28% (UK 20%)

VAT 24% (UK 17.5%)

VAT on food 12% (UK 0%)

You will find that tax rates in Sweden and denmark are similar.

Are you suggesting that Calman should propose these rates of tax in scotland.
16

Scunnert,

20/11/2008 18:18:21
16 ploughmans lunch, 20/11/2008 17:55:47

Aye - but how to do it without a backlash of resentment. London can "legally" over-ride anything coming out of Holyrood. Murphy, as London's man in Scotland, has all the power here - not Ian Gray and not Alex Salmond.

So far Labour have been hesitant to use that power for fear of a resurgent nationalism. Seems to me though, that Broon has been emboldened by Glenrothes and is now preparing the ground for the claw back.

Planning is definitely in his sights. But I doubt if that will satisfy him. He'll have his backroom boys going over every article in the Scotland Act 1998 to ensure all its teeth are extracted.
17

Scunnert,

20/11/2008 18:19:33
No rockets if you're Scottish
George Rosie
Published 03 May 1999

Westminster will keep power over space travel, gambling, abortion, vets and much else. George Rosie predicts trouble
There is a widespread myth about Scottish home rule and it is this: apart from the big stuff - defence of the realm, foreign affairs, social security, the currency, "macro" economics and so on- the Edinburgh parliament will have a free hand to run Scotland as it sees fit. This notion both warms the hearts of dedicated home rulers and reduces the commentators of Middle England (left as well as right) to spasms of indignation and occasional bouts of Jock-bashing. But there is no doubt that the idea has taken root. Most of Britain seems to believe that everything north of the Tweed is about to disappear over the constitutional horizon.

But read the small print, in particular the 17 pages of schedule five of the Scotland Act 1998. The Act - in effect, Scotland's new constitution - sets up a 129-member parliament which will be run by a presiding officer (Edinburgh's version of Madam Speaker) and two deputies and clerks. The largest party will form the executive (the word government is carefully avoided) at the sharp end of which will be our first minister with his/her train of ministers, junior ministers and law officers.
18

Scunnert,

20/11/2008 18:19:58
The Secretary of State for Scotland, however, will remain in place. Whether he or she will be Scotland's functionary in London or London's functionary in Scotland remains to be seen. The Scotland Act suggests the latter. Section 35 states that if the Secretary of State does not like the look of a bill going through the parliament (for reasons of defence, say, or national security, or "international obligations") he or she can kill it stone dead. And nothing in the Scotland Act affects "the power of the parliament of the United Kingdom to make laws for Scotland". Westminster rules, OK?

But it is schedule five that lays down the limits of the Scottish Parliament's powers. And in some detail. These are the "reserved matters" that comprise Westminster's (and Whitehall's) apron strings. They are the ties that bind. They are also the rags that gag. They are guaranteed to generate endless resentment. Westminster has reserved so much control over Scottish life and Scottish affairs that no self-respecting subsidiary assembly (which is what the Scottish Parliament will be) can do anything but fret, complain, nag and clamour for more power.
19

Scunnert,

20/11/2008 18:20:15
Take, for example, nuclear power. More than 50 per cent of the electricity we use in Scotland (and some we export) is generated by two big nuclear power stations at Hunterston in Ayrshire and Torness in East Lothian. Add the experimental reactors at Dounreay in the far north, Chapelcross in the deep south, the nuclear submarines on the Clyde plus eight retired nuclear subs at Rosyth (13 miles from Edinburgh) and you have a very considerable nuclear apparatus.

All of which has nothing to do with Holyrood. Section D4 of schedule five makes that plain. Everything to do with "nuclear energy and nuclear installations, including (a) nuclear safety, security and safeguards and (b) liability for nuclear occurrences" are matters for London, not Edinburgh. The nuclear convoys that trundle around Scotland's roads and railways are beyond the remit of the parliament. As are the specially trained Royal Marines and Atomic Energy Authority police who ride shotgun on the convoys.
20

Scunnert,

20/11/2008 18:20:33
Westminster has also reserved to itself control over Scotland's coal, gas and oil-burning power stations. In fact, just about everything to do with energy has been excluded from Holyrood's remit. Section D3 reserves Westminster's powers over what is left of Scotland's coal-extraction industry. Naturally (or at least predictably) almost everything to do with " . . . the ownership of, exploration for and exploitation of oil and natural gas" has remained with Westminster. Her Majesty's new Labour government is not about to encourage the old nationalist slogan that "it's Scotland's oil". Holyrood will, however, be allowed to encourage "energy efficiency", but not "by prohibition or regulation".

And so on it goes. Among the areas over which Edinburgh will have no power are: currency, financial markets, money laundering, drugs, data protection, elections, firearms control, cinema and video censorship, immigration and extradition, telephone tapping, gambling, business "associations", insolvency, intellectual property, waters, consumer protection, postal services, road transport, the "provision and regulation of railway services", child support, war pensions. And the "regulation of activities in outer space". We are to see no rockets blasting off from Cape Wrath carrying the saltire into the solar system.
21

Scunnert,

20/11/2008 18:20:50
A few of these "reserved" powers have already caused a stir. Scotland's political classes are none too happy that Holyrood will have no control of broadcasting. Westminster's retention of the abortion issue has upset the Catholics. Scottish scientists are restive because, in the land of Dolly the sheep, all "scientific procedures on live animals" are to be London's business.

Others of the reserved powers seem plain daft. For example, while Scots law falls squarely within Holyrood's remit, Westminster will decide how much Scotland's judges, sheriffs and tribunal members should be paid. (Did HMG fear a judicial "brain drain" from the English bench?) Regulation of architects remains under London's wing, along with doctors, nurses, midwives, health visitors, pharmacists, vets, dentists, opticians, osteopaths, chiropractors and, for some reason, auditors. Spies from MI5 and MI6 remain London's men and women. But it is not clear whether they should apply to the Scottish Secretary or to the new first minister if they want a warrant to bug our phones.
22

Scunnert,

20/11/2008 18:21:10
Nor is it at all clear just how Westminster's restraints will operate on Holyrood. Will the MSPs be allowed to debate whatever they want - abortion, say, or the Trident submarines on the Clyde - but not be allowed to vote? Or will they be permitted to vote on the stern understanding that their votes will count for nothing? If so, what kind of debates can we expect? And what kind of parliament is that?

What is certain is that the MSPs will not be long in testing the vires of the new parliament. Probing the envelope, as they say. When they do, a new figure will enter the game: the advocate general, chief legal adviser to the Secretary of State for Scotland. If this new persona thinks the parliament is stepping outside schedule five he will refer the matter to the Judicial Committee of Her Majesty's Privy Council, a body of mainly English judges, which also decides who should hang in Jamaica.

Every time these grey eminences are obliged to throw out one of the Edinburgh parliament's more inoffensive proposals - to slap an 18 certificate on some dodgy video, perhaps, or to employ another few dozen clerks - they will be stoking the fires of Scottish resentment.
So schedule five could be a legislative time bomb that one day blows Britain apart in an explosion of resentment and frustration. Whether the schedule was a deliberate and not very subtle attempt to bind and gag the Scottish Parliament or simply sloppy drafting has yet to be revealed (or admitted). But the effect is to give the Edinburgh parliament reason to complain. And complain it will. Endlessly.
23

Scunnert,

20/11/2008 18:26:03
Which of these will London claw back?

Devolved Powers

Agriculture, fisheries & forestry
Arts & Sport
Economic Development
Education
Environment
Fire Services
Food Standards
Health
Housing
Law & Order (Courts, Criminal & Civil Law - most aspects, Criminal Justice & Prosecution System, Police)
Local Government & Planning
Natural & built heritage
Public Registers & Records
Social Work
Tourism
Training policy & lifelong learning
Transport - some aspects (eg Scottish road network, bus policy, ports & harbours)
24

Scunnert,

20/11/2008 18:55:58
I would guess the following are being eyed:

Environment

Local Government & Planning

Transport - some aspects (eg Scottish road network, bus policy, ports & harbours)
25

,

20/11/2008 20:09:16
Comment Removed By Administrator
Reason:
26

Fred Quimby,

Stoeget 20/11/2008 20:23:01
#15
Ugly George,
Edinburgh 20/11/2008 17:40:27
11 Jwil
PS - rates of tax in Norway :

Starting rate for income tax 28% (UK 20%)

VAT 24% (UK 17.5%)

VAT on food 12% (UK 0%)

You will find that tax rates in Sweden and denmark are similar.

Are you suggesting that Calman should propose these rates of tax in scotland.




That has got to be the stupidest post I have seen here for at least a month.


Do you honestly think that Calman would propose these tax rates so that we could become Scandinavian; maybe you are stupid enough to do so?

The rates of taxes of all types are for the sovereign governments to impose as they will, subject to the acclaimed will of their electorates.

Do you think that imposing Gordon Brown's tax regime on I(ndia would turn it into the UK?


Read where I am posting from and try to begin to understand a third dimension to statistics. East to google, very difficult to interpret.

Tw@t!

1/10

see me after class!


Jean Brodie's Bull Terrier called Tam
27

Scunnert,

20/11/2008 20:36:37
Any tax raising powers devolved to Scotland will have been thoroughly scrutinized to ensure Scotland loses out. There is no way that Broon would allow a tax regime in Scotland that would benefit Scotland, give confidence to the nation, and encourage independence.
28

Fred Quimby,

20/11/2008 20:39:48
# 28

Precisely

end of!

29

Fred Quimby,

20/11/2008 20:40:56
psstttttt

Anybody want to buy The Scotsman and attendant titles?


Got a spare 40 million quid; going for nothing.

The Herald will be next.
30

zeitgeist,

Scotland 20/11/2008 21:30:23
It won't be long before Broon formulates a scam to re-engineer the Barnet formula which will set out to impoverish Scotland as part of the 'pay-back' for the ever deeping financial crisis. Expect more negative propaganda from our press.
BTW the Herald's new comment arrangement appears to be having the desired effect - reducing considerably the numbers of people posting. This is not good for free speach and the democratic process.
31

Scunnert,

20/11/2008 21:49:35
31 zeitgeist, Scotland 20/11/2008 21:30:23

Aye - posts are now down to a handful on the Herald. The site is dead. I was going to stick with it - but what's the point. Labour trolls won by having the Herald closed - for all extents and purposes - to debate. These are the same folks who want ID Cards, 42 day detention without trial, CCTV cameras on every street, Scottish banks taken over and run from London, and the SFA abolished and forced into a "British" Football Association. And so Scotland is diminished by their mere presence in the land.



32

donald,

glasgow 21/11/2008 05:58:31
Calman Commission brings Onionist Alliance together. Marches round the room mimicking flautists and singing the Sash led by John Reid and Labour Kafflick Loyalist Mafia.
33

KampungHighlander,

Jakarta 21/11/2008 06:54:15
"It won't be long before Broon formulates a scam to re-engineer the Barnet formula which will set out to impoverish Scotland as part of the 'pay-back' for the ever deeping financial crisis."

No doubt.

Given that Browns reputation for prudence has been built exclusively on "financial engineering" it should come as no surprise.

My personal favorite was how he changed how "Government Debt" is calculated. Unlike every other developed country, the UK does not included unfunded pension obligations and other things such as the Governments Liability for PFI schemes.

He off loads debt into "special purpose vehicles' in the same way that Enron fudged its figures.

If you actually calculated Government Debt using the methods of other developed countries the UK debt to GDP ratio would not be 40% (best in the OECD) but would in fact be 130% (worst in the OECD).

I wonder how much longer he an keep up the charade before the UK follows its mentor Enron into bankruptcy.

 

Comment on this Story

 

In order to post comments you must Register or Sign In

 
 
 
  

 
 

Featured Advertising



Sister Newspapers:
Press Complaints Commission

This website and its associated newspaper adheres to the Press Complaints Commission’s Code of Practice. If you have a complaint about editorial content which relates to inaccuracy or intrusion, then contact the Editor by clicking here.

If you remain dissatisfied with the response provided then you can contact the PCC by clicking here.