Economy, Energy and Fair Work Committee

Meeting date: Tuesday, March 2, 2021

Official Report 525KB pdf

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Subordinate Legislation

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Registers of Scotland (Fees) Amendment Order 2021 [draft]

Item 2 on the agenda is consideration of subordinate legislation. The committee will take evidence on the Registers of Scotland (Fees) Amendment Order 2021, which is before it in draft form. I welcome Ivan McKee, the Minister for Trade, Innovation and Public Finance, and his officials. I invite the minister to make an opening statement.

Good morning. The keeper of the Registers of Scotland plays a vital role in the Scottish economy by guaranteeing property rights as well as running a number of other important legal registers. Registers of Scotland has largely managed to keep its fees steady since 2011 through realising efficiencies in its internal processes. However, as members will be aware, it has not been possible to hold fees at the same levels forever.

In our view, it is the right time to set out a new fee structure for Registers of Scotland that recognises the cost of doing business today. The order in front of the committee seeks to do that. Members will have seen the public consultation and responses and will—I hope—agree that stakeholders and customers are strongly supportive of what is proposed.

As the convener mentioned, I am joined here today by Kenny Crawford from Registers of Scotland, and by Graham Fisher and Calum Ross from the Scottish Government legal directorate. We are happy to answer any questions that you may have relating to the instrument.

Thank you, minister. If members have questions, they should indicate that by typing R in the chat box.

As there do not appear to be any questions from members, we move to agenda item 3, which is the formal debate on the motion to recommend that the instrument be approved.

I invite the minister to move the motion.

Motion moved,

That the Economy, Energy and Fair Work Committee recommends that the Registers of Scotland (Fees) Amendment Order 2021 [draft] be approved.—[Ivan McKee]

As no member wishes to speak in the debate, I will put the question on the motion. The question is, that motion S5M-23985 be agreed to.

Motion agreed to.

In light of the timing, I invite the committee to agree that the clerks and I will produce a short factual report of the committee’s decision and arrange to publish it.

As no member has indicated otherwise, that is agreed.

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Bankruptcy (Miscellaneous Amendments) (Scotland) Regulations 2021 [draft]

Item 4 is also consideration of subordinate legislation. The committee will take evidence on the Bankruptcy (Miscellaneous Amendments) (Scotland) Regulations 2021, which are before the committee in draft form. I welcome Jamie Hepburn, the Minister for Business, Fair Work and Skills, and his officials. I invite the minister to make an opening statement on the instrument.

Thank you, convener. I thank the committee for taking the time to consider these draft regulations, which aim to make a small number of changes to bankruptcy administration that I believe are very welcome. They seek to make permanent some of the temporary changes that were introduced by the emergency Coronavirus (Scotland) (No 2) Act 2020.

There is broad cross-sector support for the measures. The committee has written to me about consultation, with smaller creditors in particular, on the regulations. It is important to consider the views of creditors on all these issues. We have consulted creditor groups and a number of credit union representatives, and no representations have been made against the proposals.

As I set out in my reply to the convener, the changes will have a very limited impact on creditors. The regulations seek to entirely remove bankruptcy application fees for those in receipt of prescribed benefits, to help the most financially vulnerable in our society. They will also reduce fees for everyone else who is dealing with unsustainable debt and is in need of the relief that is provided through bankruptcy.

The regulations are a significant step in removing barriers to bankruptcy and encouraging those who are struggling to get the help that they need. That is particularly important in these troubling and uncertain times.

I noted with interest “The Woolard Review—A review of change and innovation in the unsecured credit market”, which was published by the Financial Conduct Authority last month. It deals primarily with the unsecured lending market, but it touches on the need for both the United Kingdom Government and the devolved Administrations to ensure that debt solutions best serve people in financial difficulties. It mentions that

“it is unfair when the ... poorest are asked to provide £90”

for a debt relief order application. The measures go a long way towards ensuring that we have a fair fees regime that recognises the barriers that exist.

The regulations will also provide greater flexibility and streamlining of the bankruptcy process. The increase in the debt threshold for entering a minimal asset process bankruptcy to £25,000 and the removal of student loans from the calculation will allow the financially vulnerable easier and more seamless access to a fresh start through bankruptcy where they might require that.

In conclusion, the regulations provide a great opportunity to streamline and improve the bankruptcy process, to improve access to debt relief through bankruptcy and to ensure that procedures are well placed to react to any future increase in demand.

I am joined by Fiona Henry from the Accountant in Bankruptcy and Francesca Morton from the Scottish Government’s legal directorate. Along with them, I am happy to take any questions that the committee may have.

Thank you, minister. Are there any questions from committee members?

Committee members have no questions, so we will move on to agenda item 5, which is the formal debate on the motion to approve the affirmative instrument. I invite the minister to move the motion.

Motion moved,

That the Economy, Energy and Fair Work Committee recommends that the Bankruptcy (Miscellaneous Amendments) (Scotland) Regulations 2021 [draft] be approved.—[Jamie Hepburn]

Does any member wish to speak in the formal debate on the motion? No member wishes to do so.

Motion agreed to.

In light of the timing, I invite the committee to agree that the clerks and I will produce a short factual report on the committee’s decision and arrange to have it published. That is agreed. I thank the minister and his officials. I will briefly suspend the meeting to ensure that everything is ready for the next item on the agenda.

08:07 Meeting suspended.  

08:09 On resuming—