Andrew Mylne joins us for item 3. Andrew is the convener of the group that was working on the subject of standing orders and which has produced the substantial document that we have before us.
There are a number of items in relation to this matter. Like Bill Thomson, I apologise for contributing to the volume of paperwork that members of the committee have had to plough through.
Paper 3A concerns minor changes to chapters 9 and 9A of standing orders. I would like to clarify three points.
I have a general question. Many minor changes are proposed in the paper. Who suggested them? Did clerks or members flag up the problems?
In most instances, the proposals arose from the clerking directorate and concern occasions when, in applying standing orders during the past 18 months, we have discovered some difficulty in interpreting the rules clearly or applying them consistently.
Paragraph 37 on page 6 of the paper suggests that rule 9.6.4 of the standing orders
I think so. As you say, rightly, there are two related proposals. We want to clarify what constitutes the member in charge. We propose that the member in charge should be the member who introduced the bill or any other member who is designated by the member in charge. Once that has been established, any references elsewhere in the standing orders to the member in charge can refer to either member. That would apply in this case, as elsewhere.
I see.
Yes. Under rule 9.10.4 of the standing orders, the convener at stage 2 or the Presiding Officer at stage 3 determines whether amendments to bills are admissible. As the paper explains, it is impossible for the Presiding Officer and conveners, at stage 2 in particular, to make explicit decisions on every amendment that has been lodged. I am particularly conscious of that since I worked rather late last night on many amendments that were lodged quite late. We were not in a position until the evening to address any issues of admissibility that might have arisen and the amendments had to be in print this morning.
Do you mean that you take such decisions to the convener at stage 2 and to the Presiding Officer at stage 3?
Yes. There is never any uncertainty as to who should make a decision.
A possible reading of that is that the Presiding Officer is given the role of resolving any dispute. That would be burdensome to the Presiding Officer.
I apologise if that is unclear. The rules are drafted in such a way—and it should always be the case—that an identified individual should always take the decision. At stage 2, the convener of the committee to which the bill has been referred takes the decisions. The Presiding Officer takes the decisions at stage 3.
That is as I understood the situation.
I am conscious of that. I was clerk to a committee that made a proposal for a committee bill.
I understand that. We should consider the matter separately, if indeed we want to progress it at all; we will discuss that when we come to our forward work programme.
I strongly support the convener's comments. There is always the danger that an Executive might fend off members' bills and committee bills by promising to introduce legislation, even though it might have only some vague intention to fulfil that promise. That would be an excellent means of achieving inaction, which is often the Executive's aim, and the issue should be pursued in future.
The paper focuses on minor amendments. As that is not a minor matter, it is not appropriate to proceed with it at this point.
Do you intend to accept Andrew Mylne's offer to produce a paper?
We will return to that question when we consider relevant and cognate matters. I do not think that we will commission a paper on the basis of this morning's discussion, but the clerks will record that we want to return to the issue when we next discuss our forward work programme.
In connection with rule 9.6.2, paragraph 33 of the paper says:
Under the slightly adjusted rules, any bill that contains a provision to confer a subordinate legislation-making power would be referred to the Subordinate Legislation Committee. The committee could then examine all the provisions in the bill that gave rise to the referral, as well as other provisions that confer other delegated powers.
How could the Subordinate Legislation Committee get to consider a bill that contains no subordinate legislation-making powers but which contains delegated powers?
Such a bill would not be referred to the Subordinate Legislation Committee under this rule. However, the Subordinate Legislation Committee's remit was changed—on the recommendation of this committee—a number of months ago. The final element in that remit allows the Subordinate Legislation Committee to consider—in any bill, whether or not it has been referred under rule 9.6.2—other delegated power provisions, with a view to considering whether they ought to be full subordinate legislation-making provisions. The committee therefore has some input, even when a bill has not been formally referred.
Are you saying that, if a bill does not have subordinate legislation but the Subordinate Legislation Committee thinks that the bill has delegated powers, it can ask to see it?
We are talking about bills that have been introduced. Although a bill has not been formally referred to the Subordinate Legislation Committee, the committee is still entitled to consider it, under its remit.
If the Subordinate Legislation Committee is reading through a subordinate legislation bill and realises that the bill confers delegated powers that the committee would wish to consider, the committee will see that as it scrutinises the legislation. However, it will not see it if it does not scrutinise the legislation. Somebody would have to bring it to the committee's attention.
As I have outlined, the remit gives the Subordinate Legislation Committee the power, in principle, to consider bills that are not formally referred to it. I suppose that it is an administrative matter for the committee to ensure that it is alert to issues that it might want to consider. I suspect that that is not really a matter for the standing orders. I am afraid that I do not know in great detail how the Subordinate Legislation Committee would go about that task, but I am sure that the committee's legal adviser would be able to help.
The legal adviser would go through every bill scrupulously, but I do not think that an adviser would go through a bill that had not been referred to the committee.
We are asked on page 14 of paper 3A to agree to the changes to the standing orders that have been set out in the annexe, which is on pages 16 to 21. Do members agree with those changes?
We move now to paper 3B on financial resolutions. Members will see that Mr Mylne was the chamber office chair of the working group—I got that slightly wrong at the beginning.
I have with me Alison Coull, who was also on the working group and who drafted the revised changes to standing orders that members have before them. Although this matter affects only one rule in chapter 9, members will see from paper 3B that we spent some time on it. It is not easy stuff. Between us, I hope that Alison and I will be able to answer any questions.
I have a question about paragraphs 16 and 17, which is based on the observation in paragraph 17 that a financial resolution would not be required for a bill that covered payments
I think that such cases would not be covered. Alison Coull will correct me if I am wrong, but I think that there is provision for a form of local taxation. We have tried to avoid the potential confusion between that sort of taxation and the term that was included in the standing order. The suggestion under the revised rule is that local taxation of that sort, because it does not involve payments directly in and out of the Scottish consolidated fund, would not be covered.
Such cases would not require a financial resolution?
They would not require a financial resolution and would not be picked up by this rule.
That reflects the position at Westminster, where local taxation does not normally require the Westminster equivalent of a financial resolution. There was some confusion with the rule because of the reference to tax and it might have been thought that local taxation was included.
If someone introduced a bill that gave local authorities duties that would not be covered fully by local charges, but would require an Executive contribution through revenue support grant, I presume that that would require a financial resolution because the Executive would require to signify its willingness to pick up that cost. Is that correct?
I think so. In such cases I am slightly cautious about giving definite answers—we must always examine what is in front of us at a certain stage of a bill. It is difficult to give a definitive answer in response to an abstract example.
It is a difficult area.
We check whether a bill, in the form that it is introduced, requires a financial resolution. The basic position that we were trying to achieve with the revised rule was one in which the protection that the rule afforded the Executive's control over the purse strings would be maintained throughout the passage of the bill. The rule is intended to ensure that, if a bill starts off without a financial resolution because of the form in which that bill is introduced, any amendment that would change that position—so that had the bill been introduced in that form it would have required a financial resolution—cannot be moved until a resolution has been provided. Similarly, if there is a financial resolution, amendments can be moved only if they are in the scope of that resolution. In the example that Mr Gorrie gave, we would have to consider the terms of the resolution.
There was a good example in the debate on the Transport (Scotland) Bill. The Minister for Transport and the Environment lodged an amendment that would create a national body. That would clearly have had financial implications and I remember challenging whether that would sit with the financial resolution. The minister's response was that the resolution was so general that it could accommodate that—she did not say that it could accommodate virtually anything, but she might as well have. It will always be in the interests of the Executive to ensure that it can amend bills, even if the amendments have financial implications. It is probable that Opposition amendments would also not be challengeable in that respect. If Opposition parties are concerned that amendments could be challenged on that ground, they should examine more closely the financial resolution before it is voted upon.
I will have to check that.
I would adjourn the meeting for a coffee break, but we do not have any coffee. We will next time.
We will come back to the committee on the question of amending financial resolutions.
Several members are pursuing the same point. For example, there are major issues with measures in the Housing (Scotland) Bill, such as mass stock transfer and extending to tenants of housing associations the right to buy. Those measures are politically contentious and there might well be amendments lodged by various sources that could radically alter them. I presume that that would radically alter the financial effect of the bill. We would not want to limit members' rights to challenge the basic ideas of the bill or their right to amend them quite distinctly. It would be unfortunate if the Executive were able to say that, because the financial resolution had been passed, amendments that altered the financial effect of the bill would not be allowed. That would be an unhappy situation.
Has Alison Coull found the answer?
There is nothing in rule 9.12 of the standing orders to say that the financial resolution cannot be amended. Having said that, only a member of the Scottish Executive can move a motion for a financial resolution, so there is some uncertainty. We will come back to the committee on that point.
Will you reprise for us the procedure for a financial resolution? Those resolutions are lodged at stage 1 to indicate that the Executive is prepared to meet the costs, otherwise there would be no point in continuing with the bill. Is that correct?
Yes. The financial resolution is normally debated at the same time as the stage 1 debate because there is no point agreeing to the general principles of a bill if the Executive will not fund the bill.
The financial resolution does not come before the Parliament again at any stage. The decision at stage 1 is final. The resolution would fall only if the bill was not passed. Is that correct?
Once the financial resolution has been agreed, that is it.
We have opened up an interesting area here. It is conceivable that legitimate policy amendments could be constrained by the financial resolution. We would like to know whether a financial resolution can be amended or challenged. The general position is likely to be that the Executive is unlikely to tie its own hands and that that gives the Opposition parties or individual members plenty of scope, but it is an area of potential difficulty. I am not sure whether we should try to resolve it in the committee, but we certainly need to examine the situation.
Bill Thomson helped to clarify the current position. The standing orders specify which motions cannot be amended and financial resolutions are not in that category. Therefore, although there is a restriction in that only the Executive can lodge or move a motion for a financial resolution, the normal presumption that any member can lodge an amendment to it would seem to apply.
That is a good example. I will lead on from it. I am not entirely sure what the motivation or pressure for reform of the rules is—I asked about that earlier. One motivation, I know, is commented on in paragraph 35 of paper 3B, which talks about the proposed change to rule 9.6.3. It says:
I will take the last point first. The clerk to the Finance Committee was a member of the working group and he kept the convener in particular—but also the rest of the Finance Committee—in touch with what the working group was doing. I understand that, at one of its meetings, that committee endorsed specifically those parts of the recommendations in the paper that related to the role that is played by the Finance Committee. I can certainly assure the committee that the Finance Committee has been kept on board.
I understand that. The financial resolution is usually one or two lines that say that the Parliament agrees to the financial implications of the bill, such as the expenditure that would be generated. The Finance Committee agrees those resolutions, having studied the financial memorandum. In other words, that committee makes a decision that is based on the financial memorandum. The paper does not go into the financial memorandum.
The rules are intended to ensure that the Finance Committee has a proper role to perform, which is sensibly balanced against that of the lead committee. The change that we are proposing to rule 9.6.3 makes it absolutely clear that the lead committee has responsibility for examining the financial memorandum—which is one of the documents that accompany a bill—in much the same way as it has a specific responsibility to consider the Executive's policy memorandum as part of the committee's stage 1 scrutiny of an Executive bill.
If I have got this wrong, shoot me down, but am I right in thinking that—in the spirit of the whole of report 3—paper 3B picks up procedural and minor matters? If the Finance Committee has additional issues that may be susceptible to procedural changes and standing order changes, could those matters be made the subject of further work and discussion? Does what is being done cut across what Kenneth Macintosh is looking for, or should we leave it to the Finance Committee to raise those matters with us, if it feels that that is appropriate?
I am concerned that the Finance Committee has not had time to look in detail at the matter. Callum Thomson, the clerk to the Finance Committee, is a member of the working group, and he may have kept up to speed. However, I was a member of the Finance Committee until Christmas and I can tell the committee that the detail of the proposals has never been discussed at the Finance Committee. I can assure you that members of the Finance Committee will not have given the report the scrutiny that it deserves, but I think that they should do so.
I certainly would not put it as strongly as that and I would not say that there is no link. There is a link, and the information that is contained in a well-prepared financial memorandum should certainly be material to the issue of whether a financial resolution is required. What I am saying is that it may go wider. Under standing orders, the duty about financial memorandums is that they must include the cost impact on a reasonably wide range of bodies, whereas a financial resolution is invoked by some reasonably direct impact on the Scottish consolidated fund. That is more specific, and that is why there might be situations in which a financial memorandum describes quite large costs, but where the decision might nevertheless be that a resolution is not required. However, that is not to say that there is no link.
Concern has been expressed that the Finance Committee might not have had the fullest involvement in considering the report. I am anxious that the Procedures Committee should not in any way seem to impinge upon the Finance Committee's territory or to create any friction between the two committees. I am inclined to support Kenneth Macintosh's request that we continue consideration of the matter so that we can get clarification from the Finance Committee.
We should avoid delaying the matter, if possible. My concerns relate specifically to the changes to chapter 9A of the standing orders and particularly to the changes that relate to fees and costs. It is important that those points are clarified so that guidance can be issued in a final form and promoters of bills can move forward without further delay. There are also changes to the report—to which the committee agreed some time ago—on time scales and deadlines for bills. It would be of great benefit to put those changes in place as early as possible. However, there would be no great cost if the recommendations in 3B were held back. If the committee considers that appropriate, that is acceptable.
That is a clear indication that we should ensure that everybody has been involved and is happy. We shall continue consideration of paper 3B.
Alison Coull wants to make another point for clarification.
The working group did not examine the terms of financial memorandums. In fact, the rules on what must be included in financial memorandums are fairly detailed. If there are concerns about the inadequacy of a financial memorandum, perhaps that is something that the lead committee could raise with the Executive.
The Finance Committee wanted the lead committees to do the work on financial memorandums because of the lack of detail. The Finance Committee did not feel that it was in the right position to do that work. The change to rule 9.6.3 reflects the Finance Committee's views, as I remember them, but it does not address the specifics of what is included in financial memorandums.
If we agree to continue consideration of paper 3B, we will resolve all those matters and will be able to bring back a report as quickly as possible. If that report is approved by the Finance Committee, we ought to be able to make a slim and sharp report to Parliament, which could be approved formally without the requirement for use of any chamber time. That might be the best outcome.
I do not think so. I am happy for the paper to speak for itself.
We have three options, which we examined before Christmas. At that stage, the committee expressed a preference for option B, which was to introduce changes to the standing orders. We agreed to that in principle, but we also agreed that there should be a more detailed paper to outline the issues and suggest changes. We have received representation from the Executive, saying that that would create all sorts of difficulties and that we should reconsider the matter. I am struggling to find my copy of the Executive's letter; I know that I was given one.
The letter of 20 March is not one that I could accept. It makes reasonable arguments but, with all due respect, the legislative system is supposed to be for the benefit of citizens, not for the convenience of the officials who are involved. There is a serious problem. I will, as an example, refer back to the late amendment that was lodged by the Executive on the Regulation of Care (Scotland) Bill. At stage 1, many people talked about adoption and fostering. The Executive said that it would introduce at stage 2 a new section in the bill about adoption and fostering. Such an amendment has duly been lodged, within the time scale that is laid down. The point is that there is not enough time for members who are interested in the subject to consult with outside bodies that are knowledgeable about the matter and to get their views on whether the amendments are sensible. As I understand it, the general thrust of the proposal is not controversial, but there is the matter of how to achieve it.
We have all had limited experience of dealing with legislation.
I will confirm the consensus around the table. This is a real problem. All of us have struggled to cope with amendments at the last minute. Although we might have done a lot of work in preparation, the wording of the amendment might throw us and we might be unsure as to what has happened. It is very unsatisfactory.
Well—
No? Well, we can discuss the issue later.
Let us argue about that nicety at the time.
I agree with almost everything that the convener said, but I do not know whether we want to leave the matter in the hands of the Executive. We are saying that we would like to give the Executive more time, but we want something more definitive; having time to respond to amendments should be a right rather than a gift. If we leave it to the Executive to come up with all the answers, there could be slippage later on and we might get back to the same position.
All sorts of issues must be considered. I am sure that the Executive will closely examine what the committee has said this morning in considering how it might react.
This is not on that specific point, but on the point about manuscript amendments. As someone who is considering the Housing (Scotland) Bill, I would like clarification on exactly what is meant by a manuscript amendment.
We have, in Andrew Mylne, one of the world's leading authorities on manuscript amendments. He will share his wisdom with us now.
If I know what Mr Adam is unclear about, I will try to help where I can.
I assume that, if someone wants to change the word "shall" to "may" in an amendment that has been lodged, it is possible for him to do that at the discretion of the convener and with the committee's acceptance of the change. Is that the procedure for a manuscript amendment?
That is almost right. In the standing orders, the term manuscript amendment is used to refer to any stage 2 amendment that is lodged after the normal deadline. That can be any time from five minutes after the shutter comes down on lodging amendments on the final day to the point during the committee meeting when that part of the bill is about to be dealt with.
Does not a manuscript amendment have to be lodged in writing?
Yes, it does. The standing orders define it as an amendment that is lodged after the normal deadline. Manuscript amendments are therefore subject to the same rules that apply to all other amendments. That means that it has to be lodged, it has to be admissible and it is subject to the same rules on being moved and disposed of as are other amendments. Standing orders set out how an amendment is lodged, which includes by e-mail or in writing.
Does that mean that, if I decide that a minor technical point is required as a result of a committee debate, I can scribble a note with the change that I want to be made?
It would be perfectly acceptable to scribble the manuscript amendment on a piece of paper and sign it.
Why should I have to go through the mechanics of doing that? If a minor technical point that arises as a result of a debate can be covered by a manuscript amendment, why does it have to be written?
Surely everything has to be moved.
By all means a member could move the manuscript amendment during the debate, but would it not make sense, in the case of minor changes such as replacing "may" with "shall", to do as I suggest?
Are we not pre-empting the discussion that we have just agreed that we will have?
I would like to clarify the point, as it is an important one. As I have explained, a manuscript amendment is defined only by the time at which it is lodged. There is no reason in principle for a manuscript amendment not to be substantial. It may not be as simple as changing "may to "shall", but it could add a whole new section to a bill. Anything that can be done with an amendment can be done by manuscript amendment; the only difference is the time at which it is lodged.
Surely whether the amendment is lodged in writing or offered verbally does not in any way change its quality.
I do not think that that is particularly pertinent to today's business. We have a lot of work to get through today and we can address that point later.
No.
One problem, which has been mentioned before, is that some bills cover several quite disparate areas. The concept of supporting the general principles of a bill that may be a ragbag of individual albeit good propositions is difficult. Members should have the right to indicate their opposition to a section of the bill. In the case of the Ethical Standards in Public Life etc (Scotland) Bill, the clause 28 issue was tagged on to the end of the process. The Conservatives never had a proper opportunity to express their opposition to that part of the bill. Similar things happened with the Transport (Scotland) Bill. If there are two or three sections to a bill, members should have the right to say that they are okay with the bill as a whole, but that section 3 is wrong. If the proposition is agreed to, the question is whether it will allow members only to set out their stall or whether it will allow them to lodge an amendment that will have the effect of deleting a section of the bill.
My own experience may be of assistance to the debate. I lodged a reasoned stage 3 amendment to the Transport (Scotland) Bill. The Presiding Officer would not accept it unless the wording was amended. He considered that my amendment raised a doubt about the passage of the sections of the bill to which it related. I therefore had to word it to make it absolutely clear that the passage of the bill would not be affected, while expressing a dislike of certain aspects of the bill. That problem is at the core of the sensible ruling that the Presiding Officer gave. I see nothing wrong with a stage 1 or a stage 3 amendment expressing reservations, support or opinion, so long as the outcome of the decision on the bill is not open to challenge.
I, too, feel quite comfortable with what the Presiding Officer did, but I do not agree with your final comments, convener. It is perfectly legitimate to offer a member the opportunity to lodge objections to what appears in a bill. However, it is equally valid to allow an amendment to say what is omitted from the bill and to encourage the Executive to redress that omission at some future point. To have such an opinion about a bill is just as valid.
I agree. Members would be entitled to say that they approve the bill but regret that it does not tackle A, B and C. That is fair enough. In that particular case, the motion urged or instructed the Executive to do something further and departed a bit from the expression of opinion, which is at the core of a reasoned amendment. However, the Presiding Officer's ruling does not touch on that; the matter remains within his discretion and we need not fall out about it.
I am content with the current position. As long as any amendment that is passed does not have an adverse impact on the bill's implementation, the current position is fair.
I share the sentiment that has been expressed so far. One thing on which I am unclear is the reconsideration stage, which we have never used yet. Perhaps Andrew Mylne is the best person to comment.
Absolutely.
What is the difference between passing reasoned amendments at stage 3 and the reconsideration stage?
The reconsideration stage is provided only for the very particular circumstance that may arise when either the Secretary of State for Scotland or one of the three law officers challenges a bill that has been passed. The grounds on which they can challenge the bill are contained in the Scotland Act 1998, which we cannot amend. Only in that particular circumstance, which has not yet arisen, can there be a reconsideration stage.
I think that an agreement has evolved that we are happy with the Presiding Officer's ruling. We look forward to his exercising his discretion on future occasions.
I do not know whether the report will need parliamentary time or whether it will be approved formally but getting the report sorted out will remove a big headache from the clerks and the legal people and everybody else who has been involved.