Meeting of the Parliament

Meeting date: Tuesday, November 21, 2017

Official Report 912KB pdf

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Edinburgh Bakers’ Widows’ Fund Bill: Final Stage

The next item of business is a debate on motion S5M-08596, in the name of Tom Arthur, on the final stage of the Edinburgh Bakers’ Widows’ Fund Bill.

Before the debate begins, the Presiding Officer is required under the standing orders to decide whether, in his view, any provision of the bill relates to a protected subject matter—briefly, whether any provision will modify the electoral system and franchise for Scottish parliamentary elections. If so, the motion to pass the bill requires support from a supermajority of members: that is, a two-thirds majority, or 86 members. In this case, the Presiding Officer’s view is that no provision of the Edinburgh Bakers’ Widows’ Fund Bill relates to a protected subject matter. Therefore, the bill does not require a supermajority to be passed at the final stage.

16:48  

I am pleased to open the final stage proceedings on the Edinburgh Bakers’ Widows’ Fund Bill, and I again thank my fellow committee members—Mary Fee and Alison Harris—for their contributions in progressing the bill to this stage. I also record the committee’s gratitude to the clerks for all their support.

As there are currently three private bill committees on the go, all of which have the same membership, Mary Fee, Alison Harris and I have seen quite a bit of each other. Members will be delighted to learn that they can expect to see more of us in that capacity as the other two private bills progress. In fact, the preliminary stage debate on the Pow of Inchaffray Drainage Commission (Scotland) Bill took place last week and the debate on the Writers to the Signet Dependants’ Annuity Fund Amendment (Scotland) Bill took place the week before that.

Members will no doubt recall the preliminary stage debate on the Edinburgh Bakers’ Widows’ Fund Bill, which took place in September. To recap briefly, this private bill was introduced on 20 March 2017 and is being promoted by the trustees of the widows’ scheme. The bill’s overall objective is to transfer the property and the assets of the widows’ fund to a new charitable trust.

The Incorporation of Bakers of the City of Edinburgh was set up in medieval times to regulate trade. The fund was established in the 19th century to provide financial support to the widows of contributing members. However, the Edinburgh Bakers’ Widows’ Fund Act 1813 limited membership of the scheme to men under the age of 45.

As I explained in my speech at preliminary stage, in recent times, members of the incorporation have tended to be women or older men, but neither category is eligible to contribute to the scheme under the terms of the 1813 act. The last contribution to the fund was made in 1981 and the last annuity paid under the scheme was in 1997. Since then, there have been no qualifying beneficiaries.

In 2013, the trustees decided that the scheme should not continue to operate in its current form and formally closed the scheme to new members. It was considered that there was a need for change, given the restrictions on the ability of the trustees to apply the assets of the fund as imposed by the provisions of the 1813 act.

The fund is not a modern financial vehicle, and with a finite number of potential beneficiaries the trustees found themselves unable to apply the fund assets in accordance with the spirit of the fund. In place of the fund, the trustees intend to set up a new charitable trust, which will have the purposes of the advancement of education, by supporting education and training opportunities in baking; and the advancement of the arts, heritage, culture or science, by providing public information and promoting an appreciation of local baking and the history of the baking trade, particularly in Edinburgh.

The new trust—the Incorporation of Bakers of Edinburgh Charitable Trust—has been approved by the Office of the Scottish Charity Regulator.

At preliminary stage, the committee was pleased to recommend to the Parliament that the general principles of the bill be agreed to and that the bill should proceed as a private bill.

At consideration stage, private bill committees are required to consider any objections and amendments to the bill. In this case, there were no objections, as was expected, and no amendments were lodged. Consideration stage consisted of a very short meeting of the committee.

At this, the final stage of the bill’s parliamentary passage, I reiterate that the committee supports the aim of the promoters to establish the new charitable trust, to enable the trustees to make capital payments to the potential beneficiaries, to dissolve the fund and to repeal the 1813 act.

I move,

That the Parliament agrees that the Edinburgh Bakers’ Widows’ Fund Bill be passed.

16:53  

As Tom Arthur has outlined, the money that was raised by the Edinburgh bakers’ widows’ scheme was used to pay annuities to widows of contributors to the fund. In certain circumstances, provision could also be made for elderly members or orphans of members who were considered to be in need.

As we have heard, the promoters considered that there was a need for change, given the restrictions of the 1813 act. With a finite number of potential beneficiaries, the trustees found themselves unable to apply the fund assets in accordance with the spirit of the fund. If nothing were done, the fund assets could become frozen and the trustees would be powerless to make any changes.

The last annuity that was paid under the scheme was in 1997. Since then there have been no qualifying beneficiaries under the fund. However, there are two wives of contributing members who could qualify in future for annuities if they were widowed and, as such, they had a contingent interest in the fund.

As well as the best means of creating the charitable trust, the trustees of the fund also considered how the interests of those individuals were dealt with, and the committee was keen to ensure that they were treated fairly. It was explained, in the promoters’ memorandum:

“Prior to transferring the Fund assets into the Charitable Trust, the Trustees will make a single capital payment to each of the two wives of contributing members. The agreed capital payments have been ring-fenced from the Fund assets. The Bill will give authority to the Trustees to make a single payment to each of the wives who are not—”

and might never become—

“widows ... It is intended that the payments will be made to the wives prior to the dissolution of the Fund.”

The committee was satisfied with the promoters’ account of the steps that had been taken to ensure that the wives in question received equitable payments. We were told that an actuary had calculated capital payments. The wives had been consulted on the capital payments and had agreed to accept them in lieu of potential future annuities to which they might have been entitled as widows, under the terms of the 1813 act.

In conclusion, the committee was content, first, that the interests of the only two individuals who might in future have been affected by the dissolution of the fund have been addressed, and secondly, that the establishment of the charitable trust will provide an appropriate means by which the proceeds that are currently contained in the fund can be used to further the purposes of the incorporation, to the benefit of the public.

16:56  

I thank the convener, Tom Arthur, for moving the motion, and I thank Alison Harris for her speech. I also thank the clerks to the committee for their help and support during the preliminary and consideration stages.

Thanks must also go to the witnesses who presented evidence. Their helpful and co-operative approach made committee members’ jobs much easier. [Interruption.]

Excuse me. I ask for a bit of quiet in the chamber, please. I am finding it difficult to hear Ms Fee, which is unusual.

Members: Oh!

Thank you, Presiding Officer—I think.

Given the current interest in the art of baking—I cite the very popular “The Great British Bake Off”, which I have to say I have never watched, as evidence of the trend—it seems of particular relevance that the purposes of the new trust are to encourage and support training and education in baking-trade-related careers, to provide training opportunities in baking, and to promote the appreciation of local baking and the history of baking.

In that context, I was interested to explore in a bit more detail the history of the fund. The Incorporation of Bakers—or Baxters—of the City of Edinburgh is one of the ancient trade incorporations or guilds that were set up in medieval times to regulate trade in many of the cities of northern Europe. The incorporation was granted a seal of cause in March 1522, under the terms of which members controlled admission to the craft of baking and the supply of bread in Edinburgh, subject to penalties for poor quality.

The incorporation prospered over subsequent years and acquired flour mills by the Water of Leith. However, with the advent of steam power the water-powered mills became obsolete and had to be sold off at a loss.

The Burgh Trading Act of 1846 abolished the exclusive trading privileges of the incorporations, which generally declined thereafter. As the promoters said in evidence to the committee:

“the trading act came along in 1846 and the trades could no longer be the closed shop that they had been and they had to change their business.”—[Official Report, Edinburgh Bakers’ Widows’ Fund Bill Committee, 14 June 2017; c7.]

The committee was interested to learn that there is now a renewal of the trades and a revival of interest in Edinburgh, with people joining not only the bakers but

“the bonnetmakers, the goldsmiths, the candlemakers and so on.”—[Official Report, Edinburgh Bakers’ Widows’ Fund Bill Committee, 14 June 2017; c3.]

We were also encouraged to learn that, if the bill is passed and the new trust is created, the incorporation will be in a position to increase its membership and increase grant applications. That should benefit the wider community. For example, the trust might be able to offer a baking course in a primary school or prison. Under the new scheme, the benefits to the community will be much wider than they are under the scheme as set out in the 1813 act.

I am pleased to endorse the motion that the bill be passed, and I hope that all members can support it at 5 o’clock.