Official Report 276KB pdf
Item 2 is stage 1 of the St Andrew's Day Bank Holiday (Scotland) Bill. I welcome to the meeting Dennis Canavan, who is joining us for items 2 and 3. I also welcome the Minister for Finance and Public Sector Reform, Tom McCabe. I will let the minister introduce his colleagues and make a few introductory remarks.
Good afternoon.
Thank you, minister. That was helpful. Thank you for agreeing to the private meeting that we had, which was helpful in giving the committee a steer on its options.
Thank you for that statement, minister. I found at least parts of it to be helpful.
You raise several points. You are perhaps putting a particular interpretation on Mr Lyon's words. I will explain what I mean by that. When the Parliament passed the motion—it was the Parliament that did so, not the Scottish Executive—the intention was that the bill should come back for another round of scrutiny at stage 1. As normal, when the committee concludes its stage 1 consideration, it will produce a report for the Parliament to consider. I have no way of prejudging what recommendations may be contained in that report and it would be wrong of me to try to do so. It would be entirely wrong of the Executive to try to pre-empt decisions of the Parliament at stage 1. We have no way of knowing whether the bill will find its way to stage 2, as that is dependent on the decision that the Parliament takes on the principles of the bill after its next stage 1 debate.
You said that one of the principles is that we should legislate only when it is necessary to do so. Do you accept that, for the Scottish Parliament to create a bank holiday, it is necessary to legislate by amending schedule 1 to the Banking and Financial Dealings Act 1971?
No, I do not. As I said a few moments ago, no legal concept of a public holiday exists in Scotland. Although it is possible to legislate to add a day to the list of days in the 1971 act, that in itself would not automatically create a bank holiday.
How can the Scottish Parliament create a bank holiday without legislation?
We are talking at cross purposes. You asked whether it is in the power of the Parliament to amend the 1971 act and add a day to the existing days that are listed as potential bank holidays. The answer to that is yes. However, the answer to the question whether the Parliament has the power to compel banks and other financial institutions not to trade on that day is no. Further, it is not in the power of the Westminster Parliament to compel banks not to trade on those days.
Can you name any other mechanism that is available to the Scottish Parliament to declare anything resembling a nationwide holiday?
No.
Can you name any national or nationwide holiday in Scotland or in the UK that is not a bank holiday?
I can certainly name holidays in Scotland that are not bank holidays.
I asked about a national or nationwide holiday.
A variety of holidays are taken here, which is an important distinction between Scotland and England. South of the border, the recognised bank holidays tend to be adhered to, but in Scotland we have always had a different tradition—we have a range of local holidays that take place on a wide variety of days.
The tradition in Scotland is not all that different. Do you accept that exactly the same mechanism, namely schedule 1 of the 1971 act, was used to create bank holidays in the United Kingdom, including Scotland, on days such as Christmas day, boxing day, new year's day, 2 January, good Friday and, more recently, May day?
I do not accept that statement in its entirety, because May day was formalised as a holiday for banks by the Bank Holiday Act 1871. That was then overtaken south of the border in, I think, 1978 by royal proclamation. The holiday continues to take place south of the border by annual royal proclamation.
Yes, but it is based on the 1971 act. It is based on legislation.
No. I am afraid to say that, south of the border, May day is a holiday by royal proclamation. We exhort Her Majesty to make that proclamation each year.
What about the other public holidays? What about Christmas day, boxing day, new year's day, 2 January, good Friday and so on?
I believe that those holidays are within the generalities of the schedule in question, but I do not have any knowledge of how that came about. They probably go back a fairly long way, but I will take advice on that.
Most of the days that you have mentioned are specified in the schedule to the 1971 act but, for Scotland, boxing day and the late May holiday are appointed by royal proclamation. I should point out that the act contains a provision that allows for extra or substitute days to be appointed by royal proclamation.
The Scottish Parliament does not have the power to make a royal proclamation. However, am I correct to say that under the terms of the Scotland Act 1998, we have powers to add to the list of Scottish bank holidays in schedule 1 to the 1971 act?
We might have powers to add to the list, but we have no power to give practical effect to any additions. As a result, we can add as many days as we like to the list, but we have no power to ensure that, on that day, everyone takes a holiday, the financial institutions cease trading and so on.
But that is the traditional way of encouraging a national holiday in Scotland and the rest of the UK. If the Parliament were to pass the bill, would it not be declaring the desirability of having such a holiday? You yourself have said that the Executive has nothing against encouraging the celebration of a holiday on St Andrew's day. Passing the bill would serve as such a declaration or encouragement.
My point is relevant to the second of what we think are the important principles that should be followed, which is that we should legislate only when necessary. No legislation is required to encourage individuals in the public or private sector to move an existing day's holiday to St Andrew's day. Our Parliament did not legislate to give its staff a holiday to celebrate St Andrew's day. Public authorities and private concerns could consult their employees. If they prefer to take an existing day's holiday on St Andrew's day or at any other time, they are perfectly free to do so without recourse to legislation.
But you are unable to give me an example of anything resembling a nationwide holiday that is not a bank holiday.
Okay, but I have to move on and give committee members a chance to ask some questions.
I know that you are rather sceptical about the bill, Tom, but I hope that you are still open to persuasion. I remind you of that story in the New Testament in which a simple fisherman called Andrew showed much greater faith than doubting Thomas.
You do not need to answer that, minister.
Even though it was very profound, I will resist the temptation to respond.
I will try to avoid biblical references, if I can.
Even to David?
Sadly, there is no Goliath in there, so David is bound to win.
That places me in a dilemma. I am not sure that Mr Canavan, the bill's promoter, would have appreciated it if we had shown outright opposition to the bill. We are genuinely trying to be helpful. As I said at the start of my opening remarks, we have no objection to employers asking the people whom they employ whether they would like to move an existing holiday to St Andrew's day. However, there is no need to legislate to bring that about.
The logic of your position still seems to be that the Parliament should oppose the general principles of the bill. I put it to you that it was embarrassing for the Executive to be seen to oppose the bill and the creation of a St Andrew's day holiday, so, instead of doing the honest thing and simply opposing the bill, you kicked it into the long grass by sending it back to the committee.
I take it that you are not saying that we behaved dishonestly in the chamber—I would object to that kind of language. I do not know whether we need guidance from the convener, but that is not the kind of language that we should be employing in these exchanges. The Executive said at that point—we have said it again today—that we are doing our best to be helpful and that, if the committee wants to undertake a rigorous examination of any actions that it thinks would be necessary to move an existing day's holiday to St Andrew's day, we would welcome that. The committee may wish to examine whether there should be an additional day's holiday on St Andrew's day. It may wish to examine exactly what that would entail in terms of cost, service disruption and the beneficial effects that the holiday might have on Scottish society.
I remind committee members that we must treat the minister with a degree of respect and be careful in the language that we use.
I take that reprimand, convener.
As I think that I said in my opening remarks, we have no objection in principle to employers consulting the individuals whom they employ on whether to move an existing day's holiday to St Andrew's day. In fact, if the committee felt that it would be helpful, we would positively encourage employers—especially in the public sector—to do that. Ultimately, however, it is a decision to be reached between employers and the people whom they employ. I offer Mr Fraser the assurance that, far from wishing to insult the committee, the Executive is doing its best to be helpful in the consideration of the bill.
Good afternoon, minister. From your meetings with various groups around the country, do you have any feel for whether people wish there to be greater recognition of St Andrew's day?
There is undoubtedly a wish to see a greater recognition of our national day. People are pleased that we are upscaling the way in which we mark that day. That is reflected by the fact that 4,000 people attended the ceilidh that I mentioned earlier. That does not happen by accident, so it is clear that there is a warmth for the idea.
Let me move on to my second question. The minister can correct me if I am wrong, but I get the strong sense from what he has said today that, although the Executive is not convinced of the need to legislate, for the reasons given, it is convinced that more could and should be done to celebrate St Andrew's day.
Yes, that is right.
If, after taking further evidence on the costs and discussing the issues with employer and public sector representatives, the committee determined that there was a case for giving a steer on the issue in legislation and presented evidence to that effect, would the Executive's view remain as it is now? Could you be convinced by those arguments?
As I said earlier, if the committee wished to undertake a rigorous examination of the variety of options that are available to it, we would be obliged to consider that and we would do so at that time. However, it would be wrong for me to try to predetermine that decision.
I approach the issue from a slightly different perspective, as I was not a member of the committee when it considered the bill. When I listened to the stage 1 debate in the Parliament, I was somewhat confused by the fact that some members seemed to want an additional bank holiday, whereas others, such as Murdo Fraser, wanted an existing bank holiday to be transferred.
The bill does not require a financial resolution of the Parliament.
Yes. That leads me to the view that any St Andrew's day bank holiday would need to replace an existing bank holiday rather than provide an additional one. We need to consider that further. In my view, it would be difficult to move any bank holiday other than May day but—like Dennis Canavan—I would be inexorably opposed to moving the May day holiday. We would therefore need to find another national holiday in Scotland that could be moved to St Andrew's day, although I accept that it is possible that a local holiday could be moved.
I am not fully aware of the depth of the work that was carried out by the Parliament's Finance Committee, but I understand that that committee concluded that the costs for the public sector would be in the region of £40 million. However, I do not know what factors were included in that committee's consideration of the matter. As I understand it, no study has yet put a figure on what the potential costs are for the private sector.
If the committee decided to consider the matter further, could the minister's officials assist us in trying to put a figure on what an additional bank holiday would cost the public sector? Also, is the minister prepared to work with the Minister for Enterprise and Lifelong Learning to encourage private sector representatives to work out how much it would cost the private sector to have an additional bank holiday? Will officials also assist in considering whether we could substitute one bank holiday for another?
Yes. We would be more than willing to do that, with the caveat that although we are genuinely trying to assist the committee in its deliberations, there is a very thin line between giving every assistance and being accused of steering the committee.
My view, for what it is worth, is that if we passed the bill, the Parliament would be obliged to give the public agencies that we fund an additional day's holiday—if the bill is not merely to be a symbolic piece of legislation. It would be useful to have an indication of the financial impact of having an additional day's holiday on St Andrew's day, even if only for the public sector. I welcome the opportunity to get such information.
If the committee is desirous of examining that position, the Scottish Executive will do all that it can to assist its consideration.
Before we start examining the bill again, is it possible to get clarity on the Executive's position? Is the Executive opposed to the idea of an additional bank holiday being created on St Andrew's day?
We think that considerable costs would be attached to creating such a holiday. We have not been able to quantify those costs, and we have not been able to discuss with the variety of interests across Scotland—public and private—their view of creating an additional holiday. We would rather carry out the work that Karen Gillon asked us to do and give you our view once we have done that.
Therefore, at this stage, the Executive is open to the possibility of adding a bank holiday to the existing list.
The Executive is open to the possibility of the committee examining rigorously the potential implications. If the committee were minded to make recommendations on the matter, we would consider them and give our view.
Therefore, the Executive does not have a view at present on creating an additional holiday.
If the committee is minded to carry out its examination, it would be wrong of me to try to pre-empt it.
I understand what you say, but before we can begin that process, it would be helpful to know exactly where the Executive stands on the issue. Do you not support the idea of an additional day?
I cannot give a definitive answer at the moment, as the implications of an additional holiday have not been quantified. Therefore, it would be irresponsible of me to give a commitment on behalf of the Scottish Executive. Although it is unlikely that the committee will say, "We think that it will cost the economy £1 billion," none of us knows, so it is too soon to give a view.
Would any benefits come from having a bank holiday on St Andrew's day?
Certainly, there would be benefits. There could be benefits in employers consulting their employees with a view to moving one of their existing holidays in order that we mark better our national day. However, it is not for me or the Parliament to proclaim that people must do that. There is no requirement to introduce legislation to allow that to happen—the Parliament reached such an agreement with its employees and an existing holiday was moved to mark St Andrew's day better. That facility is open to people in either the public or the private sector. If they decided to operate in the same way as the Parliament and to agree that with their staff, we would have no objections whatever.
If there is a possibility of gaining benefits from having a St Andrew's day holiday—and you conceded that point—what do you believe those benefits would be?
From an additional holiday or a moved existing holiday?
Either/or.
It is not as simple as either/or.
Well, let us go for your preferred option of transferring a holiday.
I am not necessarily saying that that is our preferred option. I am saying that it is an option that employers in any sector of the economy can take up if they choose. It is also an option on which employees in any sector of the economy could make representations to their employers through their trade unions or workforce representatives. If people in Scotland were minded to move one of their existing holidays to St Andrew's day, the nation would be indicating that it was prepared to mark its national day much more comprehensively than it does at the moment.
Michael, you will need to make your next question your last one, because the minister has a time constraint and three other members want in.
I will let the others in.
I hope that we take the decisions seriously and do not rush them. I respect what Karen Gillon says and the attachment of some of my colleagues to May day. I am not presuming what the committee will decide, but does the minister agree that, if the committee agreed to move one of the other holidays early in the year to St Andrew's day, the nation—including the banks—might be encouraged to recognise it if we were to legislate to make 30 November a bank holiday?
No, I do not. It was not necessary to legislate when we did that for the Parliament and it has not been necessary to legislate for employers and employees throughout Scotland to move holidays regularly as they currently do. You will see examples of that in the next few weeks, when people will move holidays to bridge the gap between Christmas and new year. A variety of different local holidays are taken at different times in Scotland. Such practices are and should be generated from the bottom up.
I know that you are not tempted to legislate, but if the bill sought not only to make St Andrew's day a bank holiday but to delete one of the other holidays, would you be more inclined to warm to the concept?
I honestly cannot say what the benefit of that would be. Are you suggesting that we would add St Andrew's day and take away another day?
Yes, but I am not suggesting anything as dangerous as removing Christmas day.
That would be a matter for the committee to consider, but it raises the potential of removing some sensitive days. You would get a reaction if you decided to abolish Christmas day—the committee would certainly get a headline. Equally you would get a reaction if you decided to move May day. You would certainly get a reaction from me, because I think that we should keep May day.
We would get a reaction if we decided to abolish the holiday on 1 January as well, I would think.
The discussion today, like much of the discussion about the bill, has centred on places of work and what employers might do to facilitate a holiday, but I will ask the minister about school holidays, about which I have asked other witnesses, including Dennis Canavan. What mechanisms exist to create school holidays in Scotland? How might it be possible to encourage more local authorities to move towards a St Andrew's day holiday? How might the bill contribute to that process, if at all? Do you care to comment on how important or otherwise you think that school holidays are in the debate, given that one of the bill's secondary objectives is to create a more family-friendly environment in Scotland?
In its totality, the bill will not make any difference. As you know, there is a legislative requirement for 190 school days. If schools are currently in on St Andrew's day, and they cease to be, that day will have to be replaced, because they need to make an overall 190-day envelope.
If that was an issue that the committee was minded to explore further, would it be possible for your officials to provide further details to us on the existing situation and how that might be influenced—or not, as the case might be?
As I am sure you appreciate, the situation is varied across Scotland, but we will do our best to get whatever information you request from us.
Does the Executive's St Andrew's day holiday replace an existing holiday, or is it an extra one?
The Executive does not have a St Andrew's day holiday; the Parliament does.
I beg your pardon; I meant the Parliament.
Yes. As I understand it, an existing holiday was moved to accommodate the St Andrew's day holiday.
Can you tell me which one it was?
No. I was not involved in that.
It might have been the September holiday.
How much consultation of staff was done about that?
Again, that is a matter for the parliamentary authorities, not the Scottish Executive.
I was just interested to know about the process by which the decision was arrived at.
I am sure that it would have been done through consultation. I would be very surprised if, in this place of all places, it was done by diktat. I am sure that there was extensive consultation.
I do not know about that.
The decision was the responsibility of the Scottish Parliamentary Corporate Body, not the Scottish Executive, so it is unfair to ask the minister about that.
I am sorry; my mistake.
Minister, you mentioned royal proclamations. For the sake of argument, let us say that the committee, having undertaken additional work, reaches the conclusion that there should be an additional holiday, recognising that adding St Andrew's day to the schedule of bank holidays does not make it a public holiday per se. If there was a royal proclamation, that would make it a public holiday. I see that your officials are nodding their heads.
None, is the short answer. Each year, south of the border, the Queen is requested to make a royal proclamation with regard to May day. It is legal, but—and I do not mean this to be disrespectful to Her Majesty—it is not enforceable.
Who advises the Queen on royal proclamations?
As I understand it, it is the Government of the day.
Does the Executive have the power to recommend royal proclamations?
Yes. The Executive writes to the Privy Council about royal proclamations for bank holidays in Scotland about a year in advance to advise the Queen of the dates that it recommends, for the second bank holiday in May in particular.
But it is still not a statutory public holiday.
That is correct. It is a bank holiday but not a public holiday.
So that has the same net effect as adding the day to the schedule; it is not another route. It achieves the same end.
Yes.
It was useful to clarify that—I had never heard of the power of royal proclamations before.
I thank the convener and members—I appreciate the way in which the conversation was conducted.
We will now discuss the St Andrew's Day Bank Holiday (Scotland) Bill. Paper EC/S2/05/26/3, in my name, with some ideas and options, has been circulated. The options are not exhaustive by any means and members might suggest other ways to proceed.
Your suggestion is a good one. It is not for me to dictate the timetable of the committee—I am not a committee member and members know what other items are in their work programme.
I accept that point.
I welcome the convener's statement of his personal view, which to a large extent coincides with mine. I also respect Dennis Canavan's position in defence of his bill. He has done much to generate the debate that we are having today, which it was legitimate to do.
I must say that I do not entirely accept the premise that the committee did not examine thoroughly those issues first time round. I was aware of the various options that we were considering and I think that we gave the matter proper consideration. Having said that, in the interests of consensus, I am happy to go along with the proposal for further study. However, I am firmly of the view that, given the committee's heavy workload, we should truncate it as much as we can and come to an early view on the matter.
I have two points. Although I hear what Murdo Fraser says, I think that one of the questions that it would be interesting to put to business and the banks is the one that I hinted at in my second question to the minister: how would the Executive feel about it if we were minded to delete a holiday, such as the second May holiday, and replace it with St Andrew's day? We cannot predict what they would think, but that proposal might appear more cost neutral.
I, too, broadly agree with the convener's proposal. I will make a couple of points. The first is that, not for the first time in this Parliament, I have found it frustrating that we have taken a long time to plod through oral evidence to establish basic factual information that we could probably have elicited in other ways. To an extent, that happened today on issues such as royal proclamations and the like; it certainly happened in our earlier evidence sessions when we were trying to understand bank holidays.
I agree with the position that the convener set out. I think that the three-month timescale for taking further evidence is reasonable. It is clear from the evidence that we have heard from the minister today that there is an issue over whether the St Andrew's day holiday should be additional, whether it should be a substitute day for an existing holiday that is transferred or, indeed, whether there should be a St Andrew's day holiday at all. We need clear evidence about the pros and cons of each.
Like Michael Matheson, I am keen for us to get a handle on each of the three options. When it came to the parliamentary debate, some of my confusion was about what members were talking about—whether they were talking about an additional day or a replacement day. I would be keen to get more of an idea about that—perhaps a briefing from the clerks—as I was not involved with the bill previously. I refer in particular to the evidence that the committee received about having an additional day's holiday. I am drawn towards the option of the additional day when it comes to proposed legislation. What evidence does the committee have on whether or not the banks in particular would implement the holiday differently? Are there other bank holidays—as opposed to public holidays—that are different north and south of the border? I am not clear about that. I am sure that the committee has such evidence; it would be useful for me to have a look at it.
The clerks can, I think, supply you with the evidence that we have taken on many of those matters.
I would like the clerks also to consider what evidence might be obtained without particular cost. For example, a letter to COSLA would not generate enormous costs, and it would probably give us quite a lot of the public sector, local authority, or Executive—
The Executive, through the Foreign and Commonwealth Office, might be able to find out what happens in other countries.
Yes. Let us use external support where we absolutely have to or where it would be difficult for our staff to get the information. However, I suspect that we can get some of the information that we need.
The costings need to be independent of the Executive. We need to estimate the cost of undertaking a reasonably objective exercise. Susan Deacon is right to say that we should start with the facts and then consider the issues. Is everyone happy for us to move forward on that basis?
I thank Dennis Canavan.