Valuation and Rating (Exempted Classes) (Scotland) Order 2002 (draft)
We must now consider an affirmative Scottish statutory instrument—the draft Valuation and Rating (Exempted Classes) (Scotland) Order 2002. Joining us are Peter Peacock, the Deputy Minister for Finance and Public Services, and Nikki Brown, an official in the local government division of the Scottish Executive.
I have little to say by way of introduction. The committee will be astonished to learn that pipelines in Scotland that are seaward of the low watermark are rated unless they are specifically exempt by order, whereas in England and Wales all such pipelines are exempt from rates. The draft order provides for
Having spent some time on the Subordinate Legislation Committee, I am not surprised at what you have said about pipelines. I remember spending time considering an instrument that had to draw a distinction between goats and sheep. I thought, "Did I come into politics so that I could tell the difference between a goat and a sheep?" I shall not say what I thought about the other parties at that point.
I assume that part of the reason for the order is that the previous order applied only to pipelines going to Northern Ireland and the Republic of Ireland. Given some of the ideas that are around about renewable energy and CO2 sequestration, will the order apply to that sort of thing as well? Carbon dioxide is not a hydrocarbon. Does the definition also relate to carbon dioxide?
I am delighted to receive that question. No, the definition does not apply to those other matters; it applies simply to petroleum as defined in the order. The principal purpose of the order is to bring about harmonisation of the rating positions north and south of the border. It is established policy to try to minimise the differences that exist.
Do members have any other questions?
I say only that I am concerned that there does not seem to be any harmonisation of the poundage, but that is another issue.
That is not a question. We have exhausted our questions. I ask the minister whether he has anything to add to what he said at the beginning of the meeting.
I want to set out one or two matters in relation to the consultation process. As I have said, pipelines in Scotland are rated seaward of the watermark unless they are specifically exempted by order. That is not the case in England and Wales. A pipeline is being commissioned to transport otherwise surplus gas via Sullum Voe terminal to the Magnus oilfield east of Shetland, where the gas will be used to help to recover oil. Under the current legislation, that pipeline, which is valued at about £1 million, would incur an annual rates liability in the region of £478,000 a year. A comparable pipeline in England and Wales would be exempt from rates. The purpose of the order—as I said to Elaine Thomson—is to ensure that the valuation practices north and south of the border are as harmonised as possible.
I open up the discussion, not for questions, but for debate. Does any member want to speak for or against the order?
I just want to say that I understand that the difference between goats and sheep is that goats' tails stick up, whereas sheep's tails hang down.
That has nothing to do with the order. Thank you for that contribution. Mr Gibson is obviously back with a vengeance.
Motion agreed to.
That the Local Government Committee, in consideration of the Valuation and Rating (Exempted Classes) (Scotland) Order 2002, recommends that the order be approved.
I thank the minister.