Chamber and committees

The Scottish Government is currently undertaking a review of Protected Trust Deeds (PTDs) and consulting on proposals which are aimed at addressing some concerns identified with the operation of PTDs. This includes potential measures that promote the granting and protection of a trust deed only where it is the appropriate solution in the circumstances. Additionally, the consultation seeks views on potential reforms to the current voting arrangements to give smaller creditors a greater voice in the process and place more emphasis on active consent to proposals, along with increased transparency and certainty on the administration costs which must be declared to creditors at the outset.

The Scottish Government has no powers to regulate the promotion of Protected Trust Deeds (PTDs) by firms or advice organisations. However, if the Scottish Government becomes aware of any promotional material that contains factual inaccuracies or misrepresentation of PTD legislation, action is taken to ensure that these issues are rectified. The Scottish Government has reported such instances to the organisations involved and content has been amended. Additionally, the Scottish Government has reported concerns over the propriety of promotional material relating to debt resolution to the Financial Conduct Authority where it has had no direct powers to intervene.

The Scottish Government, through Accountant in Bankruptcy (AiB), has statutory powers to supervise the performance of trustees acting under Protected Trust Deeds in relation to the functions conferred on them by the Bankruptcy (Scotland) Act 2016 or by any other rule of law and to investigate any complaints made against them. AiB is responsible for registration of protected status on trust deeds that have been granted, and in doing so must ensure that the trustee has undertaken all of the required actions and provided the necessary statements set out in section 171 of the Bankruptcy (Scotland) Act 2016. AiB may refuse to register protected status if the trustee has failed to meet these statutory requirements. Legislative reforms introduced in 2013 make provision for a fixed administration fee for trustees acting in a PTD, which must be declared when the initial proposal is circulated to the creditors. The legislation also provides that the fixed fee may only be increased during the course of the administration if agreed by a majority of the creditors in value or by the AiB. AiB may, at any time, audit the trustee’s accounts and fix the outlays in the administration of the trust deed. AiB will take action if trustees have been found not to adhere to their statutory duties and will report any other concerns that fall out-with its supervisory role to appropriate Recognised Professional Bodies who license insolvency professionals.

Accountant in Bankruptcy (AiB), the Scottish Government Agency with responsibility for the supervision of Protected Trust Deeds (PTDs), engages regularly with stakeholders and credit unions are represented through the Association of British Credit Unions Ltd at separate stakeholder groups. This includes the PTD Standing Committee that meets quarterly and provides the forum for stakeholders to highlight and discuss concerns about the operation of PTDs and difficulties that have arisen.

AiB is carrying out a policy review of PTDs and is currently consulting on proposed reforms aimed at improving the operation of this debt solution. This consultation has been discussed in detail at the Standing Committee and the feedback received through this group has helped identify the issues for review and shape the consultation. Stakeholders, including credit unions, are encouraged to respond to the consultation and their views will be considered along with other feedback to determine what changes will be taken forward.

Accountant in Bankruptcy (AiB) is an Executive Agency of Scottish Government which falls within my portfolio responsibility. I meet officials from AiB on a regular basis to discuss a full range of issues connected to the Agency’s work, including trust deeds, most recently on 4 April 2019.

The City of Edinburgh Council submitted the first iteration of its Rapid Rehousing Transition Plan to the Scottish Government in December 2018.

Scottish Government officials recently completed a review of the rapid rehousing transition plans of all 32 local authorities and individual tailored feedback has been provided to each local authority.

Officials are now working with local authorities to develop their rapid rehousing transition plans further where necessary and it is expected that all local authorities, including the City of Edinburgh, will submit a revised plan in the Spring. Given that plans are over 5 years, we expect regular review and development will take place.

The Scottish Government remains committed to working in partnership with the Government of Malawi to support the most vulnerable communities in Malawi and to achieve the UN Global Goals. Under the Global Goals Partnership Agreement signed in April 2018, our two governments agreed to build on previous collaborations, and committed to achieve the Global Goals by focussing on six key strands: health; education; civic governance; sustainable economic development; renewable energy, and water and climate.

Scotland’s relationship with Malawi remains central to the government’s policy and Malawi receives the largest share of funding through the International Development Fund. The Scottish Government will therefore continue to work in partnership with the Government of Malawi in providing support and collaboration on the six strands of the Partnership Agreement.

The Scottish Government will also continue to deliver its Climate Justice Fund Programmes, which provide additional funding for Malawi. Climate justice recognises that the poor and vulnerable are the first to be affected by climate change yet have done little or nothing to cause the problem. The Climate Challenge Programme Malawi, delivered through the Climate Justice Fund, makes £3.2m between 2017-2020 available to support a group of rural communities to identify and implement their own solutions for adapting to and building resilience against the worst effects of climate change. The Climate Justice Innovation Fund provides support to projects looking to find innovative solution to the problems presented by climate change in Malawi.

Since news of the catastrophic weather events broke, Scottish Government officials have been in contact with International Development and Climate Justice Fund partners on the ground to assess need and potential routes for Scottish Government support. The Scottish Government continues to monitor the situation closely.

The Scottish Government continues to provide funding through a range of Scottish based organisations who work with their Malawian partners on the ground. These include registered charities, universities, local authorities, NHS Boards, private sector companies (acting on a not-for-profit basis) and social enterprises, with an emphasis on respectful partnership with organisations in our partner countries.

In light of the flooding in Malawi, £225,000 additional funding has been given to Strathclyde University, the Scottish Government’s implementing partner on the Water Futures Programme under the Climate Justice Fund. This additional funding is to deliver critical work addressing water resource issues, responding to the urgent need to secure water supplies, test and treat for contamination, best utilising Scotland’s expertise in water management in the immediate aftermath of the disaster in Malawi.

Separately, a further £100,000 has been granted to the Disasters Emergency Committees (DEC) Cyclone Idai appeal to support relief efforts in Mozambique, Malawi and Zimbabwe. This money is being used to deliver immediate relief measures including emergency shelter kits, food, water purification tablets and urgent health assistance.

The Scottish Government is continuing to monitor the situation closely.

All ministerial engagements are listed on the Scottish Government website, which can be accessed by using the following link: https://www.gov.scot/search/?q=Ministerial+engagements

Please see following table which lists the occasions that Cabinet Secretaries or Ministers visited hostels, bed and breakfasts or other temporary accommodation since May 2016 as requested.

In light of the recent catastrophic weather events the Minister for Europe, Migration and International Development has written to the President of Malawi to offer condolence and support on behalf of the Scottish Government.

Scottish Government officials are routinely in contact with the Malawian Government, as part of our long-established Partnership. Most recently, there has been contact with the Malawian High Commissioner to offer our support, in response to which the Malawian Deputy High Commissioner expressed thanks for the Scottish Government’s timely assistance.

The Scottish Government encourages its implementing partners in Malawi to keep in regular contact with Government of Malawi officials. In relation to the recent events, partners have attended local coordination meetings called by the Government of Malawi’s Department of Disaster Management Affairs.

Since the launch of the DEC appeal in Scotland, the Scottish Government has continued via social media to publicly highlight how people can donate to the DEC appeal. The Scottish Government also core funds the Scotland Malawi Partnership, a networking organisation which supports civil society links between Scotland and Malawi, who are disseminating information to their members, including fundraising efforts to support Malawi.