Enterprise and Lifelong Learning Committee, 29 Sep 1999

Meeting date: Wednesday, September 29, 1999

Official Report 241KB pdf

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Rating Revaluation

Now that the coffee cups have been replenished, I call this meeting to order so that we can pursue the remainder of the agenda. Item 3 is on rating revaluation. Members have expressed an interest in investigating the impact of the rating revaulation on business in Scotland in a single session inquiry. I raised that with the convener of the Local Government Committee, and the conclusions of our discussion are recorded in the paper that is before the committee today.

The paper was formulated over a week ago, and I have since spoken to the Local Government Committee convener again. She has reflected further on the subject, and she is anxious that the investigation should be taken forward by that committee. Input from this committee would be welcome as part of that process. This committee acknowledged, when we first raised the issue, that it was in the province of the Local Government Committee. I now seek your guidance on where we go from here.

I was going to suggest that a discussion with the convener of the Local Government Committee might resolve the matter.

I am happy to do that, but if anyone is going to investigate this, it must be done pdq for the inquiry to be of any value. If the Local Government Committee is going to pursue this inquiry because the subject is in its province, then it must do so swiftly. On Tuesday, I was at a meeting of the conveners' committee and one of the points that we discussed was hybrid issues such as this, which must be resolved by dialogue between conveners.

I am pleased to hear that the Local Government Committee shares our sense of the subject's importance. Business rates could benefit from the more detailed scrutiny provided by the Parliament and its committees. I think, however, that this committee might be the better forum. As far as businesses in Scotland are concerned, rating revaluation is a business question. From our point of view as part of the system of government, it is a local government issue. We should, however, look at things from the point of view of the people and businesses affected. We have shown the appetite for this investigation and there is interest from all the parties represented on this committee.

If the Local Government Committee considers the impact of rating revaluation, it is essential that, as you said, it should do so very soon and that all of the members of this committee should have the opportunity to participate in the hearing of evidence. I understand from the clerks that there might be complications over scheduling as the Local Government Committee meets at the same time as this committee does, although the Local Government Committee is on a weekly cycle of meetings.

I think that it would be preferable for this committee to hear the matter, given that we have raised it. If that is not to be the case, there are practical problems to be resolved. It would be very bad indeed if members of this committee could not participate in Local Government Committee meetings on rating revaluation, should that be the forum that considers it.

My colleague on the Local Government Committee has told me that it is very keen to take this issue forward. At a meeting of the Liberal Democrat parliamentary group, we discussed the paper that was circulated by the Federation of Small Businesses. We thought that the Local Government Committee should take the issue on board, but that this committee should have input. It was felt that a 45-minute session, which was proposed as one way for us to have input, was not long enough to allow us to do justice to this. If we do this, we need to do it properly.

When I suggested that the two conveners discuss this, I was not trying to kick it into the long grass. They should meet with the proviso that they plan and agree a programme of action that would involve the Local Government Committee taking on the immediate inquiry that this committee would otherwise undertake. Hopefully, that inquiry will be held at a time that is convenient for members of this committee. From discussions with the convener of the Local Government Committee, I understand that that can be achieved.

I am slightly concerned that the business imperative has been lost sight of. This is a very pressing matter, which is already a problem for the business community. As Fergus rightly said at our previous meeting, either we do something about this now, or we leave it. I am concerned, frankly, that if there is a bureaucratic exchange between two committees over who does what, the moment will be lost.

I see no reason why the two committees cannot work in tandem. Is there any reason why we should not draw up a provisional schedule, as proposed in this paper, with a view to calling people? If the Local Government Committee then finds that it has too much to do, or whatever the explanation might be, and cannot examine rating revaluation, at least we will not have lost ground.

We are getting a bit overexcited. Rating revaluation was fourth on our list of priorities. I see some members shaking their heads, but at our previous meeting only two members spoke in favour of dealing with it as a priority. We decided on other priorities. As rating revaluation is a pressing matter, Allan and others have offered a solution to get it on the agenda. We are dealing with another committee. There is a question about how detailed an examination there can be. I do not know whether the Local Government Committee will have more time to discuss it than the 45 minutes that we would have if we went ahead. Therefore, motives have to be questioned. What can be achieved in 45 minutes? Let us work with the Local Government Committee to get real debate on the issue.

Allan's proposal is that I meet with the convener of the Local Government Committee to agree on a programme of inquiry that can be undertaken with input from this committee. If members agree, that is what I will do. I will ensure that the legitimate points that have been raised by external organisations and by committee members will be pursued.