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Chamber and committees

Local Government and Transport Committee, 15 Nov 2005

Meeting date: Tuesday, November 15, 2005


Contents


Subordinate Legislation


Regional Transport Partnerships (Establishment, Constitution and Membership) (Scotland) Order 2005 (Draft)

The Convener:

I apologise to the minister and his officials for the fact that we are running a little bit later than intended. I am sure that they will appreciate that we got into some detailed and interesting discussion about the Council Tax Abolition and Service Tax Introduction (Scotland) Bill; there will be an interesting debate when the bill comes before the chamber.

We move on to another important issue. Under agenda item 4, we will deal with two draft pieces of subordinate legislation on the establishment of regional transport partnerships and the transfer of rail functions to Scottish ministers. We are required to deal with both draft orders individually because they cover separate issues, albeit that they have a relationship to each other.

I welcome Tavish Scott, the Minister for Transport and Telecommunications, to the committee for the purpose of addressing the draft orders. Graham McGlashan, Ian Kernohan and Richard Hadfield are here to support him.

As usual, I give the minister the opportunity to make introductory remarks on the first of the draft orders, which is the draft Regional Transport Partnerships (Establishment, Constitution and Membership) (Scotland) Order 2005. There will then be an opportunity for members to question the minister and officials on the detail of the contents of the draft order. If members want responses from the officials, they need to ask questions at that stage because when we enter the formal debate only members of the Parliament, including the minister, will be able to participate.

As time is moving on, I ask the minister to keep his remarks as concise as possible so that we can make progress with the rest of our business.

The Minister for Transport and Telecommunications (Tavish Scott):

Thank you. I will do my best to hurtle through my remarks.

I am very pleased to be able to bring the draft order before the committee. Parliament gave a clear welcome to the Executive's proposals for regional transport partnerships when it voted through the Transport (Scotland) Act 2005. The scrutiny carried out by the committee and the amendments adopted by Parliament have produced legislation that will and must deliver. Through the 2005 act, Parliament placed a duty on ministers to establish regional transport partnerships throughout Scotland. The draft order fulfils that duty.

A first version of the draft order was sent to the committee on 5 April to support the stage 2 deliberations. A revised version was sent to councils on 21 July following Parliament's approval of the bill at stage 3, and a number of further comments were received, mainly on boundaries and membership. We have worked over the summer to resolve those issues.

Inevitably, it has not been possible to find arrangements that meet everyone's first preference. However, the draft order before the committee today represents a series of agreements that councils are willing to work with. It is the outcome of consensus working, compromise and a healthy degree of common sense.

During the passage of the 2005 act, the committee made a number of important points that are reflected in the draft order. The committee proposed that councils should be able to appoint more than one member to an RTP. The figure was raised at stage 2 to a maximum of 4 and again at stage 3 to a maximum of 5. The draft order uses the full range of 1 to 5 members per council. In each region we have tried, as far as possible, to reach agreement on membership and voting with the councils concerned.

The committee also proposed that Dumfries and Galloway should be able to have its own regional transport partnership, and the legislation was amended to clarify that that would be possible. The draft order now proposes the creation of single-authority RTPs in south-west Scotland and Shetland, which will in each case bring together the council, the health board and the enterprise company to develop strategies and deliver public transport services. That is the outcome that both councils sought from the outset. Reaching a consensus was straightforward in the case of Dumfries and Galloway, but less so in the case of Shetland. I am grateful to the six Highlands and Islands councils for working with me on the matter over the summer—the assistance of the six conveners was vital in reaching a consensus. The current proposal to allow Shetland to have its own regional transport partnership was unanimously supported in August by the Highlands and Islands conveners and leaders group, the representations of which were an important consideration in my recommendation to the Parliament.

The current proposals therefore give the most balanced strategic transport groupings to meet the needs of each individual area and are based on boundaries that reflect the particular circumstances, including the geography, of both Dumfries and Galloway and Shetland.

Since taking on the transport portfolio, I have been impressed by the readiness of councils, the existing RTPs, Strathclyde Passenger Transport and others to work with, and within, the new partnerships and to make them a success. Local authorities, SPT and the existing voluntary RTPs have worked up quite a head of steam in preparing for the new partnerships. Following their advice, I have proposed the creation of statutory RTPs in early December, which will give them a four-month head start over what we had originally planned.

There is positive momentum building behind the RTPs and a real desire to use them to bring about significant improvements in transport in Scotland. I encourage the committee to support the motion, to send a clear message to those involved that Parliament is right behind them in this work. I am happy to take questions.

Thank you for those remarks.

Mr Davidson:

The minister will know that we did not support the RTPs, but we are now at a different stage. What cost provision will be made for the statutory RTPs? We note that Shetland will have in place a unitary organisation. The minister will remember that I sought to make the Transport (Scotland) Bill permissive rather than prescriptive. What procedures will be followed if a new authority is set up, if a change of administration in an authority takes place or if authorities want to come together? Is the minister minded to consider that point, given that those circumstances could arise at a later date, such as after the 2007 election?

Tavish Scott:

I will get my colleagues to cover technical aspects of the procedures. There is no particular block—nor should there be—on our considering different arrangements. However, I hope that Mr Davidson will accept that we are putting in place a series of groupings that provide the strategic overview that we think is necessary for transport on a regional basis. Any Administration would want that arrangement to settle down to see how it worked over a period of time. In the context of the national transport strategy, on which we are hoping to consult early next year and which is important for the regional transport strategies, it would be odd, to put it mildly, for us simply to rip up the arrangements and start again. I have no proposals so to do. In principle, Parliament can decide anything, but this Administration will not change the arrangements quickly and I rather doubt that a future Administration would choose to do so.

We are discussing individual RTPs' running costs with them. We have been clear about assisting RTPs with their formation and with such costs. I hope that Mr Davidson will accept that I do not believe that we want to set up expensive bureaucracies. I want to streamline the arrangements and ensure that they are effective and efficient. That will be the overriding principle in my consideration of submissions on on-going costs.

Will the partnerships be paid for out of the current budget? Will there be an additional cost?

Tavish Scott:

We have made provision for the start-up costs of the RTPs. I hope that Mr Davidson accepts that we have discussed the matter with the individual bodies—indeed, such discussions are continuing. I assure Mr Davidson that the figures on individual RTPs will be transparent, in the public domain and in the transport line in our budget.

Michael McMahon:

During the discussions on the Transport (Scotland) Bill, a number of issues arose in relation to the transfer of Strathclyde Passenger Transport to the new RTP. I know that Paul Martin has a substantive question on that, so I will stick to presentation. Concerns have been expressed about the loss of brand recognition of SPT. What feedback can you give us on the discussions that have taken place on that? Will the SPT brand be identified when SPT is transferred to the new RTP?

Tavish Scott:

I assume that Michael McMahon is talking about the overall transport services that SPT provides. I certainly accept the point about the benefits of a brand that is understood and is relevant to the people who use the service day in, day out when they go to work, take the children to school or for social purposes. It is a fair and relevant point and when I am in discussion with the new west of Scotland RTP, I want to ensure that we use the advantages of the SPT brand as we roll out the system in future. It would not be appropriate if we were to rip up an understood and proven brand that has grown and which has encouraged more people to use public transport in the west of Scotland. I strongly believe that we will work on that during discussions with the new west of Scotland RTP.

I seek clarity on the arrangements that have been entered into under the Transfer of Undertakings (Protection of Employment) Regulations, with particular reference to the new west of Scotland regional transport partnership.

Which part of the SPT service are we talking about? Obviously, we will deal with rail later.

Paul Martin:

You will probably appreciate that there are issues around the future of the staff who are currently employed by Strathclyde Passenger Transport Executive. Will you follow the TUPE arrangements that formed part of discussions that we had at earlier committee meetings?

The Convener:

I will expand on that question, minister, because it is probably best if we deal with all the SPT staff in one go. I anticipate that some members of staff might be regarded as part of Transport Scotland, the new strategic transport agency. However, the majority of SPT staff will become employees of the new west of Scotland regional transport partnership. It would be useful if you could clarify whether that is your understanding and expectation of how TUPE will apply to each of the different groups of staff.

Tavish Scott:

The short answer is yes, it is. My understanding of the arrangements—which have been subject to many discussions—is that the appropriate transfer obligations under the TUPE legislation would apply. Where staff transfer because their responsibilities and functions transfer to the new west of Scotland RTP, TUPE will very much apply, and it is appropriate that it should apply in those circumstances. It is very important that we provide clarity and certainty for staff and that we end any uncertainty as quickly as we possibly can, because I appreciate that there are concerns.

During any exchanges that have taken place on the issue between yourself and the SPTE, have you been absolutely clear that members of staff can expect to be protected under TUPE?

Tavish Scott:

I have made sure that all the advice that I have received on staff transfer has been discussed, as I am sure Mr Martin appreciates, at official level at many meetings for many months. That advice has been based on staff transferring their rights and being protected under the appropriate employment legislation. Anything else would not be fair on those members of staff. The right arrangements will be in place when the transfers occur.

Fergus Ewing:

This morning I received notice of something about which I believe your civil servants have been advised. Legal advice has been received by SPTE that—[Interruption.] I am sorry; I have moved on to the next instrument. I had the wrong piece of paper in front of me, so I shall start again.

Who will decide which strategic projects are regional and which are national?

Tavish Scott:

That is a fair question. I have a pretty strong view that in constructing the national transport strategy, we need to set out some clear principles. We must make as clear a distinction as we can.

I will use an example to be helpful. Edinburgh sits next to a certain estuary that strikes me as being pretty strategic for Scotland and the UK. Any transport options that we considered for that estuary would be of strategic importance to Scotland. On the other hand, an RTP might believe a local road to be very important and so in need of upgrading. In such a context, you and I might agree that the end of a particular fixed link across the estuary should be an RTP priority, although it would be for the RTP to decide whether it was a priority.

Nevertheless, I absolutely accept the point that it is important to try to achieve a degree of clarity around strategic, as opposed to regional, projects. It is, after all, in the interests of the RTPs that we do that through the guidance, which I am more than happy to share with the committee over the coming weeks.

Can you say when the decision will be taken on who will decide which strategic projects are national, which are regional and who will deliver the projects?

Tavish Scott:

We will do that through the different bodies. There are capital transport investment projects under way—we have discussed them with the committee before and will do so again—that are clearly strategic and, in many ways, of pan-Scotland significance. At the moment, the voluntary RTPs are taking forward a range of transport priorities and capital investments that they consider to be of regional importance. We support those projects financially and we work in partnership with the voluntary RTPs to deliver them.

In 2006, we will set out in the national transport strategy the process and the set of principles that will apply. Of course, the national transport strategy will be subject to parliamentary scrutiny and approval by next summer. The RTPs will be very much part of that in setting out how they see things and, more to the point, the projects in their areas that they consider to be of regional importance. As the strategic project review flows from the national transport strategy, that will provide an opportunity to refine and assess the process further. I do not, however, discount the central point that Mr Ewing makes about the need for clarity around the structure of those decisions.

Fergus Ewing:

I have listened carefully to what the minister has said and I think that I understand his reasoning. Does he agree, however, that there are concerns—most cogently and directly expressed by Janette Anderson of First Engineering at the business in the chamber event—that the landscape is cluttered? There is a quicksand or quagmire of quangos, and her company—an important Scottish company, which has a turnover of £200 million and wants to get on with the projects—is looking to expand by 15 per cent a year. Will the minister bear in mind—and perhaps meet me to discuss—the offer that has been made by the Scottish National Party, as the official Opposition? We are anxious to see delivery, and if that means scrapping the current byzantine and protracted parliamentary procedure for consideration of the various projects—such as the Glasgow airport rail link, which we want to see progressing soon—we are up for that. I hope that colleagues in other parties will be up for it, too. I know that that is a slight departure from the technicalities of the draft order, but I am sure that we all want to move swiftly towards project delivery, not just the creation of new bodies.

We all share that aim, although that issue departs quite a bit from the draft order on RTPs that we are considering. The minister can respond to the point if he wants to, but I ask him not to take up too much time in doing so.

Tavish Scott:

I will be brief. I have met Janette Anderson and have discussed those issues with her. I do not wish to disparage Mr Ewing's argument, but I do not think that that is quite her view. However, I would be happy to discuss the matter with Mr Ewing on another occasion.

As I said during the debate on rail on Thursday, I am more than happy to work with all parties to ensure that we improve our systems and that we get right the proposed TWA bill—the terminology is unfortunate at times; I refer to the proposed transport and works legislation that is designed to improve the process. As you know, the proposed bill has been the subject of some discussion in the Procedures Committee in recent weeks.

Tommy Sheridan:

I refer you to the letter that you sent me today in response to my inquiries about staff transfer. Can you put a number to those who will transfer from SPT to the concessionary travel unit in Transport Scotland? How many people do you envisage will stay with SPT to manage the rail franchise?

Tavish Scott:

The letter was also sent to the convener and should have been available to all members. I hope that I can give a straight reply to the points that have been raised, although Mr Sheridan is straying slightly into the discussion that we will have on the second draft order. I also hope that he accepts that our discussions with SPT need to be concluded and that, therefore, I cannot give him the numbers—as he puts it—around staff transfers. It would be inappropriate for me to do so until those discussions, which are about specific people—after all, we are talking about working men and women—have been concluded.

Tommy Sheridan:

Okay. Will you confirm that, as you state in your letter, we are talking not about redundancies, but about absorbing existing staff on terms and conditions that are no less favourable than those on which they are currently employed? Will you give a commitment that, following actuarial advice, staff will not lose benefits under the civil service pension scheme in comparison with those that they have under the local government pension scheme?

Tavish Scott:

I can certainly give Mr Sheridan an assurance on his second point, as I think I did in my letter. He makes an entirely fair point. We would all expect the pension rights of staff to be protected when they transfer, and my letter absolutely confirms that.

On job losses, it is important that the functions and the roles that are being transferred are carefully separated from the individual men and women who are involved, as it would be inappropriate for me to go into issues to do with an individual's employment rights and their current role. We have been clear in our discussions—as I am sure the committee would expect—about the rail and concessionary fares functions that we expect to be transferred. I apologise, but I cannot go any further than that because functions are the issue at this stage and it would be wrong for me to be drawn on numbers or individual circumstances.

Tommy Sheridan:

Your letter to me states that you seek to

"achieve an outcome which will result in staff transferring seamlessly and painlessly."

Do you accept that the concern of the staff who are involved will be more than justified if you are not prepared to give a commitment today that there will be no redundancies? Paragraph 5 of your letter states:

"Scottish Executive officials will be holding discussions with their counterparts in SPT and with officials from UNISON and staff representatives to explain in detail the terms and conditions which will be on offer."

I understand that the transfer will take place at the end of this month—in two weeks' time. Do you accept that those discussions should have been conducted much earlier and that it is regrettable that they were not?

Tavish Scott:

I could not agree more with that. I assure Mr Sheridan that I am frustrated that we are now into November and the discussions have not been concluded. If I had my way and was allowed to do things differently, they darn well would have finished much earlier. I do not like the uncertainty that staff have been left with and am very frustrated about the time that the process has taken. You should be under no illusion about my desire for matters to be concluded and I am frustrated that they are not.

I deliberately used the phrase "seamlessly and painlessly" in my letter, and it is entirely fair of Mr Sheridan to point that out. I mean what I said—I described what needs to happen, and it is important that that happens—but I cannot and will not be drawn into individual circumstances. It would be unfair to pull me into suggesting something that I do not want to suggest—which can happen in politics—and into saying something that Mr Sheridan wants me to say. I will not say that there will be redundancies; to do so would mean not understanding the process that must be gone through for sensibly managing circumstances that involve individual men and women. I can put things only in those terms. I do not want a member to say, "There are going to be redundancies," when they leave the committee room, as that would be a fundamental misunderstanding of the sensible discussions that must take place to deal with functions and employees' particular positions.

Tommy Sheridan:

I reassure you that I am not seeking to leave the committee room with suggestions about redundancies or anything else. I have simply been asked by several members of staff to seek the assurances that you have now given fairly and robustly. However, I am sure that you realise that the fact that the transfer is imminent leaves the staff feeling insecure. I hope that you accept that I asked the question in that spirit.

Tavish Scott:

I accept that that is fair, and I can only repeat that I agree with Mr Sheridan and, indeed, every committee member about the length of time that the process has taken. Irrespective of our views on the political and policy context of the matter, we are talking about the jobs of individual men and women. I, too, want to end the uncertainty. I hope that the committee will agree to approve the draft orders, which will allow us to bring that uncertainty to an end.

Dr Jackson:

On a point of clarification, will you remind us how the process of establishing the RTPs will be monitored and reviewed? Obviously, we want flexibility in the system, but we might want the partnerships to share examples of good practice. How will that happen?

Tavish Scott:

I have two points to make in answering that question. First, each RTP will produce a strategic overview of its area and present it formally to ministers and, by definition, to Parliament. Given the way in which the partnerships have been constructed and will operate, their interaction with local authorities, health boards, local enterprise companies and the private sector will allow a healthy dialogue to take place that should give rise to a good degree of visionary thought about what is needed in certain parts of Scotland. Such an exercise will be open and transparent and provide the local check that I imagine that Sylvia Jackson seeks. I should also point out that the system contains a number of such checks.

Sylvia Jackson also raised a good point about best practice. Indeed, I should have said to Mr Ewing earlier that Transport Scotland, which we hope to discuss with the committee more properly and say more about in the coming weeks, will play an important role in that respect. After all, it will be responsible not only for rail services across Scotland but for delivering our strategic capital investment, for example, and what might be called our run-of-the-mill investment in roads and so on. We have set up the agency in a way that allows private sector expertise of the best quality to bring many new disciplines to the delivery process, and RTPs will be able to use that expertise very successfully where necessary and appropriate. I hope that that approach will disseminate good procurement and design practice throughout Scotland, and that RTPs can use it to assist their work.

The Convener:

The proposal to introduce RTPs flows from the commitment in the partnership agreement for strong regional transport partnerships that will deliver transport systems in their areas. Apart from their responsibility to determine regional transport strategies and to recommend a particular set of transport priorities, what will be the RTPs' functions?

Tavish Scott:

As you have pointed out before, various models apply in that respect, from model 1, to which I think your question might allude, to model 3, in which the RTPs have a much fuller involvement in the delivery of transport services. I certainly want to encourage the partnerships to develop their thinking and delivery processes through those models. Indeed, I was interested to hear Charlie King, the chairman of the Highlands and Islands strategic transport partnership, say at the Highlands and Islands convention a week past Monday that its regional transport partnership will move towards model 3. That showed that Mr King was thinking about the future of his area, what he wanted to do and how he might suggest such a direction to colleagues. I suspect that that will happen in other parts of Scotland, too.

On the basis that, with respect, you and I do not have complete knowledge of the matters involved, the important point is that the partnerships think through how they want to proceed and have a clear vision of where they want to go and how quickly they want to get there. I will be more than happy to encourage that process and to facilitate the move to model 3—to the full transport-service powers—if that is how the partnerships develop.

Do you envisage the new partnerships, should they wish it, having powers and responsibilities to promote and deliver on a regional basis major improvements to transport infrastructure?

Tavish Scott:

I suspect that the answer is yes. However, as I said in answer to Sylvia Jackson, the new national transport agency will be important in supporting the partnerships. It will not be in any of the RTPs' interests, nor will they be big enough or, most important, have sufficient in-house experience, to procure such projects, but they will have Transport Scotland on which to call. Several other delivery mechanisms exist in Scotland for the procurement of large projects—the one that comes to mind in the Edinburgh and Lothians area is Transport Initiatives Edinburgh. I do not want to get into the issue that was raised earlier about the difference between strategic and regional projects. Enough bodies exist with expertise in large strategic capital projects, road schemes and passenger transport projects to assist RTPs in what they seek to do.

Fergus Ewing:

I have a question on the appointment of the non-councillor members of the partnerships. In the appointment process, will the Executive seek individuals who can demonstrate experience of and expertise in transport issues rather than look for people who serve in an ex officio capacity in businesses or other organisations? Has the Executive reached a conclusion about the sort of people whom it will seek to serve alongside councillors on the RTPs?

Tavish Scott:

That is an interesting question that we could discuss all night, dare I say it. I have a strong desire for the people who sit around the table to take off any other hats that they wear to think about transport in the regions. I will be as open minded as possible when I consider the lists that the shadow RTPs provide to me, as I want the partnerships to be about new thoughts and ideas. We need people who bring something to the table; otherwise, Janette Anderson's concern—that we will simply create bodies whose members sit around the table and talk—might be fair. It is important that we get the membership right. Ian Kernohan is more on top of the details than I am, but I am sure that we can share with the committee the guidance on membership that will be circulated to the RTPs. I give Mr Ewing and the committee an absolute assurance that I want to be open minded and to bring new thinking to the bodies. Perhaps Ian Kernohan can add something on the process.

Ian Kernohan (Scottish Executive Enterprise, Transport and Lifelong Learning Department):

We have prepared draft guidance for local authorities, the existing regional transport partnerships, the new regional transport partnerships and people who might be members of the new RTPs. We would be happy to share the draft, which is being discussed at official level, with the committee if it so wishes.

That would be useful.

We now move to the debate on motion S2M-3510. The Parliament's procedures allow the debate to last no more than 90 minutes, but I am sure that we all expect to get through it in considerably less time.

Tavish Scott:

I do not want to take up any more time than is necessary because we have already discussed the issues. I simply point out that the arrangements in the order represent the outcome of widespread consultation, genuine consensus working and a healthy dose of practical compromise. The order provides a sound footing for the RTPs to get on with the job of improving transport throughout Scotland.

I move,

That the Local Government and Transport Committee recommends that the Regional Transport Partnerships (Establishment, Constitution and Membership) (Scotland) Order 2005, be approved.

The Convener:

I have supported the introduction of regional transport partnerships, and we will have to wait and see whether the partnerships lead to enhancements in Scotland's transport infrastructure. I hope that the RTPs will build on the past success of organisations such as SPT in the west of Scotland, and will ensure that all the regions of Scotland have substantial improvements in their transport infrastructure.

As the minister knows, I was originally sceptical about the proposal to have an additional single RTP for Shetland. However, I would not want to hold up the process of establishing RTPs just because I am concerned about that area. We should look into whether that RTP can make things better for the people of Shetland in the way that they believe it can. If it does, I will be pleasantly surprised and give credit where it is due. If it does not, we should be open-minded about whether the RTP should rejoin the Highland RTP. However, I will support the motion.

Fergus Ewing:

I will support the motion but with some reservations. As the minister says, there is much more work to be done. Detailed discussions will be required with the shadow RTPs on a number of matters such as budgets, which are not as clear as I might have expected at this stage, although I appreciate that there have been many changes.

We do not really know how much it will cost each RTP to produce a regional transport strategy and I hope that that cost will be looked into closely in assessing the budgets. We are not quite clear whether RTPs will function as agents of the Scottish Executive and, because we do not know what the RTPs' powers will be, we do not know whether they will be—to use a phrase that I have used from time to time—tigers with teeth or tabbies with dentures.

Looking on the positive side—as I always seek to do—I would say that RTPs offer an opportunity that I have always said we should grasp. We have argued that the model with strong powers is appropriate. I am encouraged by Charlie King's views. HITRANS has produced an excellent body of work and has a proven track record of delivering important local projects.

I do not wish to be churlish about the minister's pan-island proposal. I can quite understand why the proposal was made and I know that some people even on the Western Isles felt that the minister's idea was good—even if that was not the official view that emerged. There is a real risk that people on the islands will feel that decisions are taken elsewhere. There has also been a particular fear in relation to voting. HITRANS has worked on a non-voting basis and the islands have been comfortable with that. There is a fear that voting will leave people in a constant minority. We will now never know whether there are grounds for that fear. However, I welcome the proposal that has emerged.

I wish Shetland well. I am a soothmoother, and I point out that I do not confuse my estuaries with my firths.

Tommy Sheridan:

I, too, will support the motion. I hope that a robust mechanism will be put in place for future reviews of how the RTPs are working, and I hope that the RTPs will draw heavily on what has worked in the past—in particular, the practices of Strathclyde Passenger Transport. SPT has been very effective for many years.

Another reason for supporting the motion is what the minister said about staff in his letter. When we talk about strategic proposals we sometimes forget that there are men and women behind them who have given many years of commitment, particularly to SPT. I will take the minister's commitments in the spirit in which he made them. I am sure that he will stick to the letter that he has given us and that he will ensure that there will be no diminution in wages, conditions or pension rights for any staff who transfer.

Do you want to respond to any of the points, minister?

Tavish Scott:

I have just two or three points to make. I agree with Mr Sheridan's point. If I put my commitment in writing, I expect him to hold me to it. I also give that commitment to the entire committee.

On Mr Ewing's points, I, too, am positive about HITRANS and what it has achieved, which is no mean achievement, given the disparate areas that are covered. I believe that HITRANS will continue to play a strong role in the future. On voting, it is important to recognise that there will be one member from each council, and they will have a weighted vote. Again, that arose through debate of how the arrangements in the north would work. In addition to that check, the transport minister of the day will have to approve any proposals. Let me be blunt: if there is a bun-fight over something, I rather suspect that Mr Ewing—or, indeed, any member from that area or whatever area—will be chapping at the minister's door saying, "For goodness' sake, sort this out." Therefore, there are a number of parliamentary checks in the system.

If there is a bun-fight, Fergus will be in the middle of it.

Finally, convener, I take your point about the particular island group. If it does not deliver, I will be the first to knock on its door.

Thank you for those final remarks, minister.

Motion agreed to.

That the Local Government and Transport Committee recommends that the Regional Transport Partnerships (Establishment, Constitution and Membership) (Scotland) Order 2005 be approved.


Transfer of Rail Functions to the Scottish Ministers Order 2005 (Draft)

The Convener:

The second instrument for consideration is the Transfer of Rail Functions to the Scottish Ministers Order 2005. I welcome to the meeting Executive officials Caroline Lyon, Bill Reeve and Ian Turner, who are here to support the minister, who has the opportunity to make introductory remarks about the order.

Tavish Scott:

This is the final legislative stage of delivering our commitment in the 2004 white paper on transport to transfer the relevant rail powers of SPT to Scottish ministers. In late 2004, Parliament approved the Scotland Act 1998 section 30 order, which provided the required legislative competence. In January 2005, Parliament approved the passage of the Railways Act 2005 and, with it, the most extensive devolution of powers to Scottish ministers since the Parliament's creation in 1999.

Throughout 2004 and 2005, Parliament extensively debated and then passed the Transport (Scotland) Act 2005, which will bring a new approach to the delivery of transport infrastructure and services in Scotland. The 2005 act included the power to transfer by order powers from SPT to Scottish ministers.

I believe that we need to take a consistent approach to rail and that Scottish ministers should have strong powers over the railways in Scotland. That view was supported in the important and useful debate that we had in Parliament just last Thursday.

We already have significant new powers through the Railways Act 2005. The order is the right step to take to ensure further a coherent and consistent approach. We cannot afford to have a fragmented structure as we try to improve railways and their role in Scotland's integrated transport system. The order's main consequence will be that Scottish ministers will have direct responsibility for the ScotRail franchise and its delivery, which will be simpler and more effective than what is in place. When combined with our new powers and responsibilities for transport and rail strategies, rail infrastructure and major rail projects, the planning and delivery of rail services for the whole of Scotland will be brought together for the first time.

The lines of accountability, which are a subject that I know is of significant interest to members, are clear. First, ScotRail will be directly accountable to Transport Scotland, which will be directly accountable to the minister with responsibility for transport, who is, of course, directly accountable to Parliament. That is a level of clarity that has not existed before.

None of that is to say that we do not recognise the importance of rail to the west of Scotland. On the contrary, we have always been committed to SPT—and, in future, the west of Scotland regional transport partnership—having a role in the development, management and monitoring of rail services. The order provides that SPT can enter into agreements with Scottish ministers to enable it to have that role. We have been discussing such an agreement with SPT and, after discussions with the chairman of its authority and the director general of its executive last week, I believed that we had been able to reach agreement and that SPT would work to support and assist Scottish ministers in the monitoring and management of rail services, which would retain experience and expertise within SPT.

As I said last week, I wanted us to move forward together by building on the success of rail services across Scotland, particularly the growth in the use of rail services in the west of Scotland and, as I said earlier, I wanted to end the uncertainty for SPTE staff, which is what I am asking the committee to help me to achieve today. However, despite the agreement at the meeting last week, it now seems that SPT feels that it cannot recommend signature to its authority. That is, at best, unfortunate; it is hugely frustrating and, above all, it is unacceptable, simply because of the impact on staff.

If SPT does not sign, it will no longer be able to work on the management and monitoring of rail services. The staff who are involved in those functions will transfer. I reassure the committee that any staff who transfer will not be disadvantaged by the move. Through the transfer of staff to the Executive, we will retain their experience and expertise, which we need to do if we are to continue to improve rail services in Scotland. I have also made that clear in the letter that we discussed in the earlier session.

The committee will want to know why this state of affairs has arisen. SPT has lobbied hard for the retention of its statutory powers. However, as I have said—and as my predecessors have said before me—the new structure for the creation of strategy and the delivery of services in rail requires a consistent and strong lead. We have been clear and unambiguous in our statements to Parliament that a transfer of powers would take place. After all, rail passengers want to know that their trains will run on time and will be clean and affordable. That is a shared agenda for this Government and our transport partners.

The approval of this order by the Local Government and Transport Committee is an essential step that will enable the Executive to take a strategic approach to rail services across Scotland and to secure the best possible deal for rail passengers.

The Convener:

You referred to discussions between you and the chair of SPT last week. It was reported in the media that there had been broad agreement on the outcomes of the meeting. Obviously, members of this committee have not had full sight of all of those outcomes. Will you explain to members what the broad agreements were? Is it possible to share those fully with us?

In the discussions that took place on the new west of Scotland RTP's role in monitoring the rail franchise in that part of Scotland, will you clarify that one of the commitments that was made was that any role that the RTP would play would run at least until the end of the current franchise?

Tavish Scott:

It would be unfair of me to go through everything that was said at last week's meeting without the agreement of the other party, given that, although it was conducted in an appropriate and positive way, the meeting was between two parties of which I am only one. I can say that I thought that we had reached an agreement. In particular, the chairman of SPT sought assistance in providing staff with additional reassurance and, indeed, cover, not just for a short period but for the length of the franchise. I was more than happy to reach an agreement with him on the matter and to move forward on that basis. That answers your second question. I thought that we had a clear agreement, about which I was genuinely pleased—not least because of the questions that were being asked earlier about the uncertainty for staff.

The new west of Scotland RTP will have a monitoring role for the period of the franchise. That is appropriate. There is a good balance to the responsibilities that we have placed on the RTP. It will have the necessary expertise and experience. It is important not only that we use that expertise and experience in the west of Scotland but that we use the west of Scotland RTP's good working knowledge to improve services throughout Scotland. Sylvia Jackson asked whether we could use best practice in one part of Scotland to help the rest of the country. That is precisely what I want to achieve.

Mr Davidson:

Your predecessor, Nicol Stephen, stated to Parliament that he expected SPT to continue

"to have a direct role in the management and development of rail services in the west of Scotland"

and said that

"passengers in the west of Scotland can look forward to further development of SPT's powers and functions".—[Official Report, 16 June 2004; c 9099.]

Can you confirm that? In November 2003, we were told that SPT would continue to manage, develop and monitor rail services in the area. However, last week SPT indicated that it perceived that there was a written threat that it would be removed altogether from rail operations. Is that a fact, or is SPT wrong?

Tavish Scott:

I have said what the Transport (Scotland) Act 2005 says and what the legislative process is for ensuring that we have a unified system across Scotland. Powers relating to rail in Scotland are vested with Scottish ministers, who are accountable to the Parliament, but will be delivered through the transport agency. SPT's role is to continue to provide services. I am sure that Mr Davidson has been watching developments, so he will know that it always was and still is the case that after 1 April the new west of Scotland RTP will provide monitoring of, assistance to and development of our operations in relation to the franchise. It is important that we move forward in a constructive way. I want the west of Scotland RTP, like the other RTPs, to be at the heart of those matters after it formally takes up its responsibilities.

Do you agree that, given what your predecessor said—his comments are recorded in the Official Report—there has been a change to what the Parliament perceived would be delivered when the Transport (Scotland) Bill was passed?

Tavish Scott:

I do not accept that. Mr Davidson cannot have been listening to the debate that took place either in the committee or in the Parliament during the passage of the Transport (Scotland) Bill. The partnership agreement indicated that there was to be a unified structure. The Government's intention in the Transport (Scotland) Bill, which became the Transport (Scotland) Act 2005, was that that should happen, alongside the transfer of rail powers from London to Edinburgh. It can hardly be a secret that that was the case and that, as I indicated in my opening remarks, the process included the transfer of functions from SPT to Scottish ministers, who are accountable to the Parliament. That was made clear repeatedly. Mr Davidson should not start to suggest that there was any other policy intent behind the proposals or the process that has been gone through. If the Conservative position is to ensure that there is a fragmented system of rail delivery across Scotland, I disagree with it.

Mr Davidson:

We have not yet reached the debate. You must be aware, because it is now fairly common knowledge, that there has been an opinion from senior counsel to SPT regarding its current situation. You referred to that opinion. Have you taken legal advice on that? If so, can you share it with us?

Tavish Scott:

It is important that Mr Davidson should understand the difference between the order that is before him today and the agreement in relation to particular matters. The order was shared with SPT—a draft was provided to it on 2 September—and it provided comments on 6 and 8 September. On 9 September, we incorporated SPT's comments into the order that is before the committee today and, on 23 September, that order was laid. Only today was I told that SPT's legal advice is that it cannot sign the order.

I repeat: we provided the order to SPT on 2 September; SPT provided comments on 6 and 8 September; and on 9 September we incorporated SPT's comments. I assume that SPT took legal advice at that time, yet only today did it tell us in a fax that my office received this morning—on the day of the committee meeting—that it cannot sign the order on the advice of legal counsel. I find it difficult to understand how SPT could have agreed the draft order on 9 September—it was laid on 23 September—yet could tell me only today that it has received legal advice that it should not sign it.

I take it that you have not sought legal advice since you received that response this morning.

Tavish Scott:

I have sought legal advice, but as Mr Davidson knows—and I do not wish to bore him—we do not publish Government law officers' advice. One can always obtain legal advice. The important point is that there was any amount of opportunity between 9 September and 23 September, when the order was introduced, and even up to today for SPT to bring these issues back to us, but that did not happen.

I have a final question—

No, I want to make progress.

We are where we are. We have the e-mail about the advice. I have not seen the legal opinion, but its views have been summarised. Can the minister assure us that he is satisfied that what he proposes to do is not unlawful?

Tavish Scott:

That is a fair question. I hope that the committee will approve the order for two reasons. First, it will end the uncertainty for staff involved in rail functions, who will transfer to the Scottish Executive. I repeat what I have said time and time again: I wanted an agreement between SPT and the Scottish Executive on its continuing its role. Today, we can end the uncertainty over the issue and ensure that the position of staff in relation to rail functions is secured. The situation with regard to the legal position will no doubt be on-going.

I appreciate that it is difficult for you to answer the question having received only an extract from the legal opinion that was given to SPT. Is it correct that you have not received the whole of the legal opinion that SPT has received?

Tavish Scott:

With respect, it does not matter to me what SPT's legal opinion says. It is quite entitled to gain its own legal opinion. My concern is the order. The order is legally competent—I should have given you that answer right at the start—and it will allow the appropriate staff to transfer to the Scottish Executive in respect of rail functions. That is what we have said all along. That will end the uncertainty and protect those workers' rights, which are an issue of concern.

The Convener:

In case members were thinking about this, I clarify that there is no opportunity for the committee to delay consideration of the order. We need to publish a report by 21 November to meet the 40-day deadline for Parliament's consideration of the order on 24 November.

Fergus Ewing:

I am grateful for that clarification. I was going to query the position, so you anticipated my question.

I appreciate the distinction between approving the order and the legal questions, which I understand relate to whether, after the order is approved, the Scottish ministers have legal competence to enter into an agreement with SPT. I understand that that is where the legal doubt arises. The minister referred to the need to remove uncertainty for staff, which I entirely accept is desirable and should be achieved. However, I feel slightly uneasy that SPTE has not had and—according to what the convener said—will not have the opportunity to put its side of the case, because we always want to listen to the other side in any debate. I am also aware that senior counsel do not always provide opinions swiftly, so the advice might only have been received recently—we do not know and I certainly do not know.

In the light of the minister's assurance that what we are being asked to do is legal and necessary, I intend to support the order. However, I hope that, thereafter, the difficulty that has been identified will be dealt with in a direct response to SPTE—difficulties can often be cast to one side—and that an agreement will be reached about the best way ahead.

Tavish Scott:

I cannot say much in response to Mr Ewing. However, I assure him that I do not seek out fights in life. I am interested in finding solutions, which I genuinely thought we had last week. I say with the greatest respect to Mr Ewing's professional background that sometimes lawyers get in the way of, rather than facilitate, these things. I will pay a lot of money to lawyers who help me to sort things—full stop.

That is an offer that I must refuse.

That brings us to the end of questioning, so we will proceed to the debate. I ask the minister to move the motion. Given that we have had an extensive discussion, he need not reiterate the issues.

Motion moved,

That the Local Government and Transport Committee recommends that the draft Transfer of Rail Functions to the Scottish Ministers Order 2005 be approved.—[Tavish Scott.]

Mr Davidson:

I am sorry, minister, but having listened to your answers, I intend to oppose the motion. I will do that not merely because I oppose the transfer of SPT's rail powers to ministers, but because I believe that the Executive—whether on purpose or not—misled the Parliament on SPT's future in the stage 3 debate on the Transport (Scotland) Bill. I agree that it would help if SPT were here to give its view and to back up the allegations that its local council has made, but it has not been able to appear. On that basis, I simply say that I will not support the motion.

The Convener:

For clarity, I draw to the committee's attention the fact that this draft of the order was laid before Parliament on 30 September and is close to the end of its 40-day period. I understand that an affirmative resolution on the order is due to be considered in a meeting of the Parliament next week. The order has been in the public domain for quite some time. The minister has given his assurances about the legality of the order. It would have helped to make any challenges far earlier in the process.

We need to make progress on the matter. Another issue that we missed in the discussion is the fact that the transfer of rail functions to the Scottish ministers, of which the order is part, is extensive. It is the biggest transfer of power to the Scottish ministers since devolution. In the overall scheme of things, in years to come, the devolution settlement will benefit considerably from the additional powers that the Parliament will have. I intend to support the motion in the minister's name.

Does the minister wish to respond to any points?

Tavish Scott:

I do not accept that Parliament has not known in any way that the order was coming. I apologise to the committee, but I can only repeat what I said at the start. The order represents the last legislative stage of delivering the commitment that we gave in the 2004 white paper to transfer the relevant rail powers of SPT to the Scottish ministers. In late 2004, Parliament approved—I presumed that the committee had oversight of it—the order under section 30 of the Scotland Act 1998 that provided the legislative competence. Throughout 2004 and this year, Parliament has extensively debated and passed what became the Transport (Scotland) Act 2005. There can be no doubt whatever about the policy intent, which flows from the partnership agreement. I defy anyone to argue that the policy intent and thus the procedures and appropriate mechanisms that we would follow to achieve it were not absolutely clear.

The question is, that motion S2M-3442, in the name of the minister, be agreed to. Are we agreed?

Members:

No.

There will be a division.

For

Ewing, Fergus (Inverness East, Nairn and Lochaber) (SNP)
Jackson, Dr Sylvia (Stirling) (Lab)
Martin, Paul (Glasgow Springburn) (Lab)
McMahon, Michael (Hamilton North and Bellshill) (Lab)
Muldoon, Bristow (Livingston) (Lab)
Sheridan, Tommy (Glasgow) (SSP)

Against

Davidson, Mr David (North East Scotland) (Con)

The result of the division is: For 6, Against 1, Abstentions 0.

Motion agreed to.

That the Local Government and Transport Committee recommends that the draft Transfer of Rail Functions to the Scottish Ministers Order 2005 be approved.

The Convener:

Our decision will be confirmed in the report that we will submit to Parliament before the debate next week.

That brings us to the end of the agenda items in public. I thank for their attendance the minister, his officials and members of the public or press who have been present for our proceedings.

Fergus Ewing:

Before we go into private session, I belatedly offer Bruce Crawford's apologies. I think that he could not attend the meeting because he had to attend an appointment this afternoon. I, too, offer apologies. I have another meeting that I must attend now, so I cannot stay for the rest of this meeting. However, I support the budget paper.

That will be recorded.

Meeting continued in private until 17:58.