Economy, Energy and Fair Work Committee

Meeting date: Tuesday, June 9, 2020

Official Report 429KB pdf

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Corporate Insolvency and Governance Bill

Item 1 is the United Kingdom Government’s Corporate Insolvency and Governance Bill. We need to consider a legislative consent memorandum, or LCM, on the bill.

The bill contains a range of proposals to support companies that are facing financial difficulties. Some of the changes will be permanent, while some are time-limited in response to the current coronavirus crisis.

The majority of provisions in the bill relate to reserved matters. The regulation of companies is a reserved matter, as are various aspects of corporate insolvency.

However, some little areas of the bill relate to devolved matters. Several aspects of the bill engage the LCM process, but broadly speaking the impact on devolved competence is fairly minor and technical.

The committee has not heard of any concerns coming from insolvency stakeholders, so we concluded that we did not need to take evidence from anyone this morning. However, before we make a decision on approving the LCM, the deputy convener wishes to contribute to the discussion.

Have the permanent provisions that are included in the bill been consulted on by the UK Government and in Scotland? If the bill is approved, will the Scottish Government be responsible for maintaining, monitoring and reporting on the devolved aspects of the proposals? Could the clerk clarify that for us?

Can any of the clerks answer that question now?

I can answer in the affirmative to Willie Coffey’s questions. The UK Government has consulted. As we understand it, the Scottish Government intends to undertake a review of his second point.

Does that answer your question, Willie?

That is fine. Thank you for that clarification, Rodger; it is helpful.

As no other member wishes to comment on the LCM or ask a question, I take it that the committee is content with the LCM and with the Scottish Government’s view that the Scottish Parliament should consent to the UK legislating in the area.

Members indicated agreement.

Are members also content for the clerks and I to prepare a short report outlining our decision today and covering the points that we have just discussed?

Members indicated agreement.

Thank you.

That concludes what was a very short public part of the meeting this morning. As agreed, the committee now moves into private session.

09:34 Meeting continued in private until 12:11.