Economy and Fair Work Committee
This report concerns The Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024, laid before the Parliament by the Scottish Government on 3 May 2024. The instrument, which was laid in draft, is subject to the affirmative procedure – which means it cannot be made unless it has been approved by a resolution of the Parliament.
It is for the Economy and Fair Work Committee, as lead committee, to decide whether or not to recommend approval.
In Session 5, the then Economy, Energy and Fair Work Committee conducted a short, focused inquiry into Protected Trust Deeds and reported its findings in May 2020. These regulations address some of the recommendations made by the Committee.
This instrument would amend the Bankruptcy (Scotland) Act 2016 by bringing forward recommendations which require primary legislation from three working groups looking at improvements to statutory debt solutions in Scotland.
The policy note states that the aim of the regulations is to reflect good practice introduced through a voluntary protocol with trustees of trust deeds for the benefit of creditors in insolvency in statutory requirements, and to offer further protections to those seeking debt relief through PTDs.
The Delegated Powers and Law Reform (DPLR) Committee is required to consider every instrument laid before the Parliament and decide whether to draw it to the attention of the Parliament on any of the “reporting grounds” set out in Rule 10.3 of the Parliament's standing orders.
The DPLR Committee considered this instrument at its meeting on 14 May 2024 and agreed that it did not need to be drawn to the Parliament's attention on any of the reporting grounds.
At its meeting on 5 June 2024, the Committee took evidence on the instrument from the Minister for Public Finance and officials.
The Institute of Chartered Accountants of Scotland (ICAS) wrote to the Committee setting out their concerns. ICAS believe that the current regime is working well on a voluntary basis and do not see the need for 'disproportionate and unnecessary'1 statutory regulations in this area.
The Minister stated that the system is working well in the majority of cases, but recognises there is the potential of a two-tier system, where not every provider is operating according to the voluntary code. The regulations ensure that the voluntary code is put on a statutory footing.
Following the oral evidence, the Minister moved motion S6M-13108—
That the Economy and Fair Work Committee recommends that The Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024 [draft] be approved.
The motion was agreed to.
Recommendation
Accordingly, the Committee recommends to the Parliament that the draft Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024 be approved.