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www.anationalconversation.com

YOUR SCOTLAND
YOUR VOICEA NATIONAL CONVERSATIONI ASK EVERY SCOT TO PAUSE
AND REFLECT, NOT JUST ON
WHAT KIND OF COUNTRY WE
ARE, BUT ON THE KIND OF
COUNTRY WE COULD BE, THE
KIND OF COUNTRY WE SHOULD
BE. I AM COMMITTED TO A NEW
CHAPTER IN SCOTTISH
POLITICS, ONE IN WHICH THE
STORY AND THE SCRIPT ISWRITTEN BY THE PEOPLE ANDNOT JUST BY THE POLITICIANS.
ALEX SALMOND, FIRST MINISTER OF SCOTLAND, 14 AUGUST 2007iA National Conversation – YOUR SCOTLAND, YOUR VOICE© Crown copyright 2009ISBN 978-0-7559-8114-4
The Scottish Government
St Andrew’s House
Edinburgh
EH1 3DG
Produced for the Scottish Government by RR Donnelley B61368 11/09
Published by the Scottish Government, November 2009
For more information on the National Conversation please email
joinin@anationalconversation.com or visit the National Conversation
website at www.anationalconversation.com
The text pages of this document are printed on recycled paper and are
100% recyclableii

A National Conversation – YOUR SCOTLAND, YOUR VOICENo man has a right to fix the boundaryof the march of a nation; no man has aright to say to his country, “Thus far
shalt thou go and no further”.
Charles Stewart Parnell (1846-1891)

iii

A National Conversation – YOUR SCOTLAND, YOUR VOICE“

Scotland has a long and proud record ofinnovation and excellence in health andhealthcare, with internationally recognised
medical schools alongside world-renowned
clinical and scientific research. Our National
Health Service is one of which we can similarly
be proud. By wisely using already wide ranging
devolved responsibilities for health andwellbeing on behalf of the people of Scotland
we have changed the landscape of andpotential for improving health and healthinequalities. Huge strides have been made in
reducing waiting times and our strategies toimprove coronary heart disease, stroke andcancer services, among others, have broughtwith them significant improvements forpatients. What has been done is testament towhat can be achieved and I am certain thatwith full powers and responsibilities in an
independent nation we can and will achievemuch more.

”

Deputy First Minister and Cabinet
Secretary for Health & Wellbeingiv

A National Conversation – YOUR SCOTLAND, YOUR VOICEvA National Conversation – YOUR SCOTLAND, YOUR VOICE“

For far too long we have been at themercy of financial and economic decisions
taken outside Scotland. Under the current
framework, key economic policy levers,
including responsibility for supporting the
economy during downturns and theoperation of the tax system, are withheld
from the Scottish Government. This cannot
be in the best interests of the Scottish
economy; not now and not for the longterm. Now is the time for change. In orderfor Scotland to achieve its full potential wemust have greater responsibility for ourown economy.

”

Cabinet Secretary for
Finance and Sustainable GrowthviA National Conversation – YOUR SCOTLAND, YOUR VOICEvii

A National Conversation – YOUR SCOTLAND, YOUR VOICE“

The current constitutional settlement places limits on
Scotland’s ability to fully capitalise on the economic
benefits our education and skills system offers us. In
particular our employment and benefits system must
be structured to help as many people as possible fromall parts of Scotland into sustainable employment. Thiscan be best achieved by placing the needs andexpectations of the people of Scotland at the heartof its design and operation.

”

Cabinet Secretary for Education andLifelong Learningviii

A National Conversation – YOUR SCOTLAND, YOUR VOICEix

A National Conversation – YOUR SCOTLAND, YOUR VOICExA National Conversation – YOUR SCOTLAND, YOUR VOICE“

Scotland’s laws and justice system are
unique. They have been established for
centuries and been maintained through 300
years of an incorporating union. Under
devolution with justice mainly devolved they
continue to serve Scotland in a unique way
appropriate to our country and its people.
We have confidence in the people of
Scotland and they can be proud of
Scotland’s achievements. We want the
Scottish Government to be able to go
further in the interests of the Scottish
people. We want to be able to tackle all
aspects of crime and its causes.

”
Cabinet Secretary for Justicexi

A National Conversation – YOUR SCOTLAND, YOUR VOICE“

Using our existing but limited powers,
the Scottish Government has deliveredmuch progress for our rural communities
but there are numerous examples where
the influence of an independent country
would have brought much greater
benefits.
When I attend European negotiations
and witness the success of other similar
sized nations, I appreciate more thanever how having our own voice in Europe
would ensure the distinctive needs of ourfarmers, fishermen and our environment
would be recognised.

”Cabinet Secretary for Rural Aﬀairs andthe Environmentxii

A National Conversation – YOUR SCOTLAND, YOUR VOICE

xiii

A National Conversation – YOUR SCOTLAND, YOUR VOICE“

We have legislated to remove theconfusion of combined polls anddeveloped proposals to clarify the
conduct of Scottish elections.
Responsibility is currently split between
Holyrood and Westminster. Giving
Holyrood the responsibility for all
elections in Scotland would bringaccountability closer to the voter andrestore confidence in the democratic
process. We would lower the voting age
to 16 and introduce STV for all elections
so extending participation anddemocracy in Scotland.

”

Minister for Parliamentary BusinessxivA National Conversation – YOUR SCOTLAND, YOUR VOICExv

A National Conversation – YOUR SCOTLAND, YOUR VOICExvi

A National Conversation – YOUR SCOTLAND, YOUR VOICE“The National Conversation has demonstrated that
there is a tremendous appetite for debate about
Scotland’s constitutional future. Across thecountry, people have considered and discussed arange of constitutional choices, from expanded
devolution to independence. There are a wide
variety of options to reform our constitution, but
most people agree that the status quo is notdelivering for Scotland. As Minister for Culture,
External Affairs and the Constitution, I am
immensely proud of Scotland’s achievements sincedevolution, but I believe that independence
presents the best opportunity for Scotland toflourish. It would enable Scotland to thriveinternationally and culturally; Scotland would
conduct itself on the world stage as an equal withother sovereign states. It would also give Scotland
responsibility for all the policy tools required topromote sustainable economic growth.

”
Minister for Culture, External
Aﬀairs and the Constitutionxvii

A National Conversation – YOUR SCOTLAND, YOUR VOICECONTENTSFOREWORD

1

1.

THE NATIONAL CONVERSATION ON SCOTLAND’S FUTURE
Introduction
Current constitutional arrangements
Options for the future
The National Conversation

3
3
3
4
5

2.

THE OPTIONS FOR SCOTLAND’S FUTURE
Introduction
Current position
Commission on Scottish Devolution
Full devolution
Independence

15
15
16
16
17
17

3.

A WEALTHIER SCOTLAND
Overview
Economic and fiscal policy
Business and enterprise
Migration
Broadcasting
Conclusion

21
21
23
39
50
53
57

4.

A FAIRER SCOTLAND
Overview
Welfare and benefits
Housing and regeneration
Equal opportunities
Conclusion

59
59
60
64
68
69

5.

A GREENER SCOTLAND
Overview
Environment, agriculture and fisheries
Transport
EnergyConclusion

71
71
72
82
85
89

xviii

A National Conversation – YOUR SCOTLAND, YOUR VOICE6.

A HEALTHIER AND SMARTER SCOTLAND
Overview
Health
Education and children
Conclusion

91
91
91
96
97

7.

A SAFER SCOTLAND
Overview
Criminal and civil justice
Judiciary and the Courts
Human rights and responsibilities
Conclusion

99
99
100
102
104
105

8.

A STRONGER SCOTLAND
Overview
Scotland in the world today
Scotland’s future role
Conclusion

107
107
108
108
122

9.

A MODERN SCOTLAND
Overview
Constitution and government
Elections
Conclusion

125
125
126
131
133

10. CHOOSING SCOTLAND’S FUTURE
Introduction
Involving the people
A national referendum
The next step

135
135
135
136
139

ANNEX A NATIONAL CONVERSATION EVENTS140

ANNEX B ORGANISATIONS CONTRIBUTING TO THE NATIONAL CONVERSATION 144

xix

A National Conversation – YOUR SCOTLAND, YOUR VOICExxA National Conversation – YOUR SCOTLAND, YOUR VOICEFOREWORDThe Rt Hon Alex Salmond MSP MP, First Minister of Scotland
Over the last two years more than 15,000 people have taken part in the
National Conversation on the future of Scotland: at public meetings, in print
and online. There have been other significant contributions: from experts,
academics, journalists and think tanks on a range of subjects such as fiscal
autonomy, energy and the environment, and Scotland in the world.
Two things are clear. First, that there is a demand in Scotland to consider
and debate our national future. Second, that the current arrangements do
not meet the ambitions of our nation. Ten years on from devolution, almost
all agree that it is time to expand the responsibilities of our Parliament.
Ten years ago Donald Dewar said the Scottish Parliament was “a newvoice in the land, a voice to shape Scotland, a voice above all for the
future”. He was right. But our Parliament is incomplete, unfinished. Its voice
is muted or silent in many areas vital to our nation.
I believe that Scotland cannot fully flourish until it takes responsibility foritself: for its economy, taxes, and spending; for its rich and its poor; for its
natural resources and its waste; for its old and its young; for its roads andits seas; for its place in the world, for peace and war, for ties of friendshipand common interest with the other nations of the earth.
These are the matters with which normal, independent countries deal
every day. They know the challenges and opportunities that come withthat independence, as well as the responsibility.
Scotland and its people are more than capable of doing so, too. We would
benefit from the opportunities. I believe it is time that Scotland reclaimed
its place among the nations of Europe and the world. Other people havedifferent views. It is now time for the voice of the people to be heard – inthe referendum on Scotland’s future we intend to hold in November 2010.

1

A National Conversation – YOUR SCOTLAND, YOUR VOICEI think the idea of a National
Conversation is hugely effective inbringing people within the democratic
experience.
(Glasgow Summer Cabinet, 1 September 2009)2

A National Conversation – YOUR SCOTLAND, YOUR VOICECHAPTER 1
THE NATIONAL CONVERSATIONON SCOTLAND’S FUTUREINTRODUCTION
1.1

1.2

In September 1997 the people of
Scotland decided in a referendum toestablish a Scottish Parliament,
exercising their sovereign right todetermine the form of their own
government.1 In the samereferendum the people supported
tax varying powers for the
Parliament.2 On 1 July 1999 theScottish Parliament was formallyvested with its full responsibilities.
Ten years on from devolution, theNational Conversation has prompted
extensive debate across Scotland on
the options for the future of thecountry: continuing with the current
situation; extending the
responsibilities of the Scottish
Parliament and Government; andindependence for Scotland. A
referendum on the options for
Scotland’s future would give thepeople an opportunity to have theirsay.

CURRENT CONSTITUTIONALARRANGEMENTS
1.3

The Scotland Act 1998 was the last
major change to the government of
Scotland within the United Kingdom(see Box 1). The Act devolved to a
Scottish Parliament and Scottish
Government all matters not reserved
specifically to the United Kingdom:in practice domestic mattersadministered previously by the
Scottish Office, such as health,education, justice, local government
and agriculture and fisheries.3

1.4

The matters reserved to the United
Kingdom included:•

matters seen as fundamental to thestate: the Head of State, citizenship,
foreign affairs, and defence andsecurity
matters regarded as needing acommon regime across the United
Kingdom, such as employment andbusiness law, drug classification andfirearms control
matters that the United Kingdom
Government thought should beorganised across Great Britain or
the United Kingdom, such as
economic affairs, social security,and tax collection

•

•

3

A National Conversation – YOUR SCOTLAND, YOUR VOICE

1.5

1.6

4

Even the existing devolution
settlement envisages changes inthese devolved responsibilities. As
only specified areas are reserved,
any new issues – such as climatechange – fall within devolved
responsibility. The existing list ofreserved matters can be adjusted byorder with the agreement of theScottish and United Kingdom
Parliaments, although there is no
statutory mechanism for the Scottish
Parliament to request action fromthe United Kingdom Parliament toalter the division of responsibilities.4
The Scottish Government has taken
steps within its current responsibilities
to further its purpose of focussing
the Government and public services
on creating a more successful
country, with opportunities for all of
Scotland to flourish, throughincreasing sustainable economic
growth. The Scottish Government
has also addressed the economic
and financial crisis through the
Scottish Economic Recovery Plan,
but the main policy responsibilities
remain with the United Kingdom
Government, notably the level of
public debt and spending over the
short term, advancing capital
expenditure from future years, andthe overall tax regime. The Scottish
Government has been constrained in
the fiscal stimulus package it can
introduce, and the actions taken by
the United Kingdom Government may
not be best suited to Scotland. For
example, the resources allocated tothe temporary cut in Value Added Taxby the United Kingdom could havebeen used to increase the level ofcapital investment, helping to support
a greater number of jobs in Scotland.
1.7

For devolution to be successful, theScottish Government needs to work
closely with the United Kingdom
Government, the other devolved
administrations and the European
Union. The governments haveworked well together on someissues: anti-terrorism measures; theswine flu outbreak; and Climate
Change Bills in both the Scottish
and United Kingdom Parliaments.
Regular meetings of the Joint
Ministerial Committees have been
re-established. However, relations
between the Scottish and United
Kingdom Governments have beenless successful on other occasions:
negotiations for a Prisoner Transfer
Agreement with Libya; delay inamending the law on human rights
cases under the Scotland Act;5
exclusion of Scottish Ministers fromthe United Kingdom delegation to
the Copenhagen Summit on Climate
Change; and the United Kingdom
Government’s refusal to be flexible infunding capital projects, notably theForth Road Bridge.

OPTIONS FOR THE FUTURE
1.8

The Scottish Government’s white
paper Choosing Scotland’s Future,published in August 2007, identified
three principal options:•the current devolution scheme, withthe possibility of further devolution on
individual matters as occasions ariseA National Conversation – YOUR SCOTLAND, YOUR VOICE

•

•

1.9

•
•
•
•

•

•

a package of specific extensions todevolved responsibilities, including
fiscal autonomy, but short ofindependence. Such a package mightneed, or benefit from, the consent of
the Scottish people in a referendum
independence: Scotland would
assume all the responsibilities andrights of a normal European state,including membership of theEuropean Union and otherinternational bodies, the ability todetermine economic policy,
including the currency, and full
responsibility for defence andsecurity.6
The Commission on Scottish
Devolution (see Box 2) was set up in2008 by the Scottish Parliament andthe United Kingdom Government.
Its terms of reference excluded
consideration of independence. It
has proposed a package of changes
to the devolution settlement. The
main elements are:devolution of an element of income
tax
devolution of some other minor taxes
limited borrowing ability for the
Scottish Government
devolution of responsibilities fordrink driving limits, airguns andspeed limits
a formal role for Scottish Ministers inreserved policies on benefits andmarine conservation
reserving to the United Kingdom
Parliament and Government a
number of matters currently
devolved (regulation of healthprofessionals, definition of charities)

The Commission also made anumber of recommendations about
inter-Governmental and interParliamentary working.
1.10 Your Scotland, Your Voice discusses
in detail the advantages anddisadvantages of various
constitutional options for Scotland’s
future. As the package proposed by
the Commission on Scottish
Devolution falls short of full
devolution, the paper discusses theopportunities provided by both theCommission’s proposals and more
extensive devolution, as well as
independence.
THE NATIONAL CONVERSATION
1.11 The National Conversation began inAugust 2007 with the publication ofChoosing Scotland’s Future. Over5,300 people have attended morethan 50 National Conversation
events throughout Scotland. Some
500,000 have viewed the website,which provides video and audio
records of meetings, access to
documents, Ministerial blogs and an
opportunity to comment.7 The
National Conversation has been aunique programme of engagementwith the Scottish public which has
involved civic organisations, young
Scots, black and minority ethnic
communities, and individuals fromall parts of the country. A full list of
National Conversation events is at
Annex A, and a list of organisations
that have participated is at Annex B.8

5

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Public events
1.12 The National Conversation has beenan open, inclusive process intended
to encourage debate, ideas andopinions. Events have been heldfrom Glasgow and Edinburgh to
Stornoway and Dumfries. National
Conversation events were part of
the Scottish Cabinets held acrossScotland in the summers of 2008
and 2009, with the First Minister, theCabinet, and other Ministers, on theplatform. There have also been 130
National Conversation economybased sessions with community andbusiness groups, attended by morethan 6,500 people across Scotland.
1.13 The events gave members of the
public the opportunity to present
their own views, ask Scottish
Ministers about their vision of
Scotland, and to ask questions on
local, national and international
concerns. The events haveillustrated how the constitution
embraces everyday concerns suchas the economy, employment,
energy, benefits, housing, educationand health. Quotes and commentsfrom these events appear
throughout this paper.
1.14 Civic Scotland has been a key partof the National Conversation. On
26 March 2008, the First Ministerand the Cabinet hosted a meetingof over 120 representatives of civic
society, acknowledging theimportance of Scotland’s civic
institutions. National Conversation

6

events have been hosted by the
Scottish Council of Voluntary
Organisations (SCVO), the Councilof Ethnic Minority Voluntary
Organisations (CEMVO), Young Scotand the Scottish Youth Parliament,
and churches and faith groups.
1.15 There have also been National
Conversation events outside
Scotland. Ministers have debatedthese issues in London, Toronto and
Dublin. The First Minister hosted a
National Conversation seminar in
Brussels, and the National
Conversation paper on European
and Foreign Affairs was laterlaunched there.
The National Conversation website
1.16 The National Conversation has
pioneered the use of new media
within the Scottish Government,with regular blogs from Ministers
and the opportunity for individuals
from across the political spectrum
to debate directly with the Scottish
Government and each other. So far
the National Conversation website
has received over 500,000 hits, andalmost 5,000 people havecontributed to the National
Conversation blogs from allperspectives and across the world.9
1.17 The website has also built up arecord of the National Conversation
as it has progressed, with video andaudio records of meetings, transcriptsof speeches, records of comments
and questions and photographs.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Along with an interactive timeline of
Scotland’s constitutional story, thewebsite has become a forum for
debate, a resource for research andlasting evidence of the interest
generated by the National
Conversation as it has developed.
National Conversation policy papers
1.18 As part of the National
Conversation, the Scottish
Government has published a seriesof papers on different constitutional
options for reserved and devolved
policy areas. These papers include:
•

•
•

•
•
•

Fiscal Autonomy in Scotland: Thecase for change and options forreformEurope and Foreign Affairs: Taking
forward our National Conversation
Opportunities for Broadcasting:Taking forward our National
Conversation
An Oil Fund for Scotland: Taking
forward our National Conversation
People and Communities: Taking
forward our National Conversation
Rural Affairs, the Environment andClimate Change: Taking forward our
National Conversation

Very useful, you areto be congratulated
for attempting toencourage debate.
Folks have been given
their chance to speak.
(Stirling National Conversation event, 13 May 2009)

Wider debate
1.19 The National Conversation is nottaking place in isolation.
Constitutional reform is a major
issue across the United Kingdom,
prompted in part by public concern
about the expenses system of theUnited Kingdom Parliament. The
United Kingdom Government’s
response has been to launch its
Building Britain’s Future initiative,
the aim of which is to rebuild trust inpolitics, as well as to respond to therecent economic crisis.10 Other
organisations have launchedinitiatives in response to the expenses
issue and the constitutional issues
raised, for example, the Joseph
Rowntree Trusts’ POWER 2010
project.11
1.20 The United Kingdom Government has
also continued its programme of workon the Governance of Britain, and istaking forward a Constitutional
Reform and Governance Bill which
would place the civil service on a
statutory footing, among othermeasures.12
1.21 In Wales, the All Wales Convention
published its report on 18 November
2009 recommending a referendum
on extending the legislativecompetence of the Welsh
Assembly.13 The Welsh Assembly
Government’s Independent
Commission on Funding and Financefor Wales (the Holtham Commission)
also published its first report onreforming funding of devolved
government in Wales on 7 July 2009.14

7

A National Conversation – YOUR SCOTLAND, YOUR VOICE

BOX 1: SCOTLAND’S CONSTITUTIONAL JOURNEY SINCETHE TREATY OF UNION

8

1.

The Treaty of Union between the independent kingdoms of
Scotland and England came into force on 1 May 1707. The
Treaty created a unified Crown and a single Parliament for
the new kingdom of Great Britain. Its other main provisions
covered representation in the new Parliament andreciprocal measures of taxation and trade, and it preserved
various Scottish institutions, notably a separate legal
system. Separate legislation guaranteed the position of the
Church of Scotland.

2.

Some Scots challenged the Union from the outset,
particularly as the advantages of free trade to English
colonies and free access to English markets – which tooktime to materialise – were offset by the higher English
taxes and duties now payable in Scotland.

3.

Following the failure of the 1745 Jacobite rising, the issueof Scotland’s place within the Union, and the stability ofthe succession to the throne, seemed settled. New
imperatives of industrial revolution and Empire moved to
the fore. Scotland played a full part in these British
developments, but its nationhood was preserved by theseparate institutions protected by the Treaty of Union.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

4.

In 1853, the National Association for the Vindication of
Scottish Rights was formed. Although short-lived, thisindicated growing interest in Scotland’s position as aseparate political entity within the United Kingdom,
motivated in part by the pressure for Home Rule in Ireland,and by the challenges of governing the expanding British
Empire.

5.

The emergence of political interest in Home Rule for
Scotland was accompanied by changes in the arrangements
for Scotland’s government, starting with the creation of theScottish Office in 1885 and the appointment of the first
Secretary for Scotland to represent Scottish interests in the
United Kingdom Cabinet. This recognised that Scotland’s
distinctive culture, institutional and political identity
required specific and full-time representation. However, noseparate national democratic assembly was developed.

6.

Scottish Home Rule took on greater currency with theformation of a Scottish Home Rule Association in 1886.
In 1888 Keir Hardie adopted a Home Rule platform at the
Mid Lanark by-election, and Scotland’s constitutional
position has remained a central political issue since then.
Home Rule for Scotland was debated on many occasions
in the United Kingdom Parliament, and a number of Bills
were introduced. In 1913 a Home Rule Bill passed its
Second Reading, but the First World War intervened
before further legislative steps could be taken.

7.

Following the First World War, the political relevance of
Scottish Home Rule was maintained by various politicalparties and movements, and the Scottish National Party(SNP) was formed in 1934 from the National Party of
Scotland (formed in 1928) and the Scottish Party (formed
in 1932). The SNP won its first parliamentary seat at theMotherwell by-election in 1945, but held it for only threemonths.

9

A National Conversation – YOUR SCOTLAND, YOUR VOICE

8.

Unionism dominated in Scotland following the Second
World War, and in 1950 the Labour Party abandoned its
support for Scottish Home Rule, although this remained an
important issue in Scotland. The Scottish Covenant
Association helped sustain popular interest in a Scottish
assembly, attracting two million signatures between 1949
and 1950. However, the Association was not linked to any
political party and failed to secure its objectives directly.

9.

Scottish Home Rule returned as a key issue with the SNP’s
victory in the Hamilton by-election of 1967. Winnie Ewing
won the seat with 46% of the vote, marking the emergenceof the SNP as an electoral force and mainstream politicalparty.

10. Since the Hamilton by-election, each of the main politicalparties has, at different times, committed itself to new
constitutional arrangements for Scotland. In 1968 thedeclaration of Perth committed the Conservatives to
Scottish devolution in some form, and in 1970 theConservative government published Scotland’s
Government, which recommended the creation of a
Scottish assembly. However, Conservative support for
Scottish devolution declined, and the party opposed
legislative devolution for Scotland through the 1980s and1990s. Although the party campaigned for a “No” vote in
the referendum of 1997, the Conservatives at both Scottish
and United Kingdom level have supported the Scottish
Parliament since it was established.

10

A National Conversation – YOUR SCOTLAND, YOUR VOICE

11.

In 1969, the Labour Government commissioned a report
into constitutional options for the United Kingdom. The
Kilbrandon Commission did not report until 1973 by whichtime a Conservative government was in power. The
Kilbrandon report recommended devolved assemblies for
Scotland and Wales, which led eventually to devolution
being put to the electorate in a referendum in 1979. The
legislation required 40% of the total electorate to support
devolution in the Scottish referendum; in the event only
32.9% supported the assembly, although this represented
51.6% of those who voted, and a majority of more than
77,000.

12.

Following the election of the Conservative Government in
1979, devolution, and the concept of the sovereignty of theScottish people, was taken forward first by the Campaign
for a Scottish Assembly, and then, from 1989, the Scottish
Constitutional Convention. In 1988 the Campaign for a
Scottish Assembly published A Claim of Right for Scotland
which asserted Scotland’s cultural and historical legacy inputting forward its argument for a Scottish assembly. Thiswas followed in 1995 by Scotland’s Parliament, Scotland’s
Right, the Scottish Constitutional Convention’s blueprint
for a Scottish assembly, which became the basis for thesettlement that was eventually enacted.

13.

The Labour Party fought the 1997 general election on aplatform that included a commitment to a referendum on
Scottish devolution. The white paper Scotland’s Parliament
was published in July 1997, and its proposals were thebasis for the pre-legislative referendum which was held on
11 September 1997. Over 74% of those participating
supported the creation of the Scottish Parliament, andover 63% tax varying powers for the Parliament. The
Scottish Parliament that reconvened in 1999 was based on
the constitutional settlement in the subsequent Scotland
Act 1998.

11

A National Conversation – YOUR SCOTLAND, YOUR VOICE

BOX 2: THE COMMISSION ON SCOTTISH DEVOLUTION
1.

On 6 December 2007, the Scottish Parliament passed a
motion calling for the creation of an independently chaired
commission to review devolution in Scotland. Chaired by
Sir Kenneth Calman, the remit of the Commission on
Scottish Devolution was:To review the provisions of the Scotland Act 1998 in thelight of experience and to recommend any changes to thepresent constitutional arrangements that would enable theScottish Parliament to serve the people of Scotland better,
improve the financial accountability of the Scottish
Parliament, and continue to secure the position of Scotland
within the United Kingdom.
Members of the Commission were drawn from Scottish
civic society and the Labour, Liberal Democrat andConservative parties. The United Kingdom Government
largely provided the secretariat for the Commission. As theCommission’s remit excluded independence, the Scottish
Government declined to take part.

12

A National Conversation – YOUR SCOTLAND, YOUR VOICE

2.

Over the course of its work, the Commission took evidence
mainly in writing, although there were formal evidence
sessions with members of representative organisations andtwelve public meetings to allow members of the public toengage with the Commission directly. The United Kingdom
Government provided written submissions to theCommission, while the Scottish Government provided
factual information. The Commission published its firstreport in December 2008 and its final report in June 2009.

3.

The final report, Serving Scotland Better: Scotland andthe United Kingdom in the 21st Century, made 63
recommendations in four categories:••

strengthening financial accountability
strengthening co-operation between the Scottish andUnited Kingdom Parliaments
strengthening the devolution settlement
strengthening the Scottish Parliament••

Following publication of the final report, a working group,
consisting of members of the political parties involved in
the creation of the Commission, was established to takeforward the recommendations.
4.

The Scottish Parliament debated the Commission’s final
report on 25 June, passing a motion supporting its
recommendations. The Scottish Government published its
formal response to the Commission’s recommendations
on 9 November 2009.15 While not in favour of all theconclusions of the report, the Scottish Government does
support a number of recommendations and has set out amechanism for those proposals with widespread
agreement to be implemented as soon as possible.

13

A National Conversation – YOUR SCOTLAND, YOUR VOICE14A National Conversation – YOUR SCOTLAND, YOUR VOICECHAPTER 2
THE OPTIONS FORSCOTLAND’S FUTUREINTRODUCTION
2.1

Devolution was never intended asa fixed arrangement: it was and isa process which should respond topolitical, economic and social
circumstances over time to ensurethat Scotland is well-positioned toaddress the challenges it faces andtake advantage of opportunities.
Nor does devolution need to be
Scotland’s final constitutional
destination.

2.2 The tenth anniversary of the Scottish
Parliament offers a suitable moment
to consider these issues in depth,
and invite the people to have their
say on the next steps in Scotland’s
constitutional journey.
2.3 The National Conversation has
identified many areas for further
devolution, as well as the arguments
around independence. The National
Conversation has illustrated that theconstitutional debate raises issues
across the whole range ofgovernment activity and Scottish
life, from economic policy,

taxation and benefits, foreign affairs
and defence to human rights,
broadcasting and responsibility for
airguns and drink-drive limits. In theseand many other areas, decisions for
Scotland are not made by the
Scottish Parliament and the Scottish
Government, but by their United
Kingdom counterparts.
2.4 This paper covers many of the mostimportant policy areas which would
be affected by different constitutionalarrangements. However, it is not
exhaustive: it focuses on those areas
where new constitutionalarrangements, whether full
devolution or independence, would
provide the greatest opportunities
to develop Scotland-specificapproaches to particular issues.16
It also discusses significant areas of
Scottish life which are already largely
devolved, such as health, educationand justice. The achievements inthese areas since devolution
illustrate the potential for Scotland
to tackle its problems and promote
its successes with the right
responsibilities and opportunities.

15

A National Conversation – YOUR SCOTLAND, YOUR VOICE

2.5 The paper describes the opportunities
that increased responsibility would
provide for Scotland to develop
policies to address its issues. The
use made of these opportunities
would depend on the policy choicesof future Scottish Governments andthe make up of future Parliaments.
The examples in the paper therefore
illustrate the benefits and challengesof these responsibilities, and areneither a programme for government
nor commitments to future action.
2.6 There are four broad options for
Scotland’s future:
•

•

•

•

the status quo: Scotland retains its
current responsibilities with gradualevolution in response to particular
events or pressures
implementing the recommendationsof the Commission on Scottish
Devolution
full devolution of the maximum
range of responsibilities to Scotland
while remaining in the United
Kingdom (sometimes called“devolution max”)
independence: Scotland has all
the rights and responsibilities ofa normal independent state

CURRENT POSITION
2.7 Under the Scotland Act, amendments
can be made to the legislativecompetence of the Scottish
Parliament and the executive
responsibilities of the Scottish

16

Government. While the devolved
responsibility of the Scottish
Ministers has been adjusted
relatively frequently, extension of
the legislative competence of theScottish Parliament has been rarer.17
COMMISSION ON SCOTTISH
DEVOLUTION
2.8 The Commission carried out areview of devolution, although it
did not consider the possibility of
independence, and was prevented
by its terms of reference fromexamining some of the moresignificant options such as full fiscal
autonomy.18 The Commission
nevertheless proposed a packageof alterations to the devolution
settlement that embodied newprinciples, such as giving theScottish Government a limited ability
to borrow. It also recommended
ways to improve the relationships
between the Scottish Government
and Parliament and the United
Kingdom Government and Parliament.
The advantages and drawbacks of
their main recommendations are
discussed in detail later in the paper.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

2.9 The Commission did not makerecommendations in a number ofimportant areas including economic
issues, employment and company
law, and foreign affairs. The
Commission’s recommendations on
benefits fell short of further
devolution, but recognised theinterest of the devolved governmentof Scotland in reserved policy
making. Devolved competence
could therefore be extended beyond
the recommendations of theCommission.
FULL DEVOLUTION
2.10 Under full devolution the existing
devolution framework would be
retained, and Scotland would remain
within the United Kingdom. The
United Kingdom Government andinstitutions would continue to have
responsibility for many matters, forexample the currency and monetary
policy, and decisions on peace andwar. Full devolution would give
Scotland more responsibility fordomestic matters, and would extend
the range of measures the Scottish
Government and the Scottish
Parliament could take to encourage
greater sustainable economic
growth. Nonetheless, there would becontinued interaction with mattersreserved to the United Kingdom, forexample foreign affairs, defence,
macroeconomic policy, sometaxation and, possibly, social

protection and pensions. Existingareas of disagreement would
continue. Improved intergovernmental relations, including
enforceable principles of parity ofesteem, would be required for
Scotland to get the most out of its
increased responsibility.
INDEPENDENCE
2.11 The Scottish Government’s favoured
policy is independence, which would
bring all the possibilities of full
devolution with the additional
responsibilities that could not be
devolved within the United Kingdom,such as foreign affairs and defence.
Under independence Scotland
would be responsible for:
•

•

•
•
•
•
•
•

the economy, including decisions on
the currency and the macroeconomic
framework
investment in education, enterpriseand infrastructure includingtransport and housing
the environment, energy andclimate change
the taxation and benefits system
the full range of public services,
including benefits and healthforeign affairs, defence and security
matters
equality legislation and human rights
the constitution and government of
Scotland, including Parliament, thecourts, local government

17

A National Conversation – YOUR SCOTLAND, YOUR VOICE

2.12 Independence would complete theresponsibilities of the Scottish
Parliament and Government, whileallowing existing structures andservices to continue. Aspects of an
independent Scotland would befamiliar: services and entitlements
continuing to be delivered; pension
and benefits continuing to be paid at
a similar level as now. Services suchas the NHS and education are
already largely devolved, and sowould continue in much the same
form as they do now. Over time, theScottish Government and Scottish
Parliament could develop andimplement Scotland-specificsolutions.

2.13 As an independent nation, Scotland
would be similar to other sovereign
nations across the world. In recent
years, many countries have gained
independence, recognising that it isright that sovereign nations are
responsible for their own decisions,while still working in partnershipwith other nations. At the moment,
Scotland is a nation within a larger
state, unable to speak for itself on
all relevant matters. Independence
would give Scotland the responsibility
for making decisions about its future
as part of an international,
globalised environment, making afull contribution to theinterdependent world.

I found this event very interesting … it
was refreshing to see that the Scottish
Government want the people of Scotland
to decide its own future – the CalmanCommission, although it has some greatideas, is based on what three politicalparties want.
(Aberdeen Summer Cabinet, 18 August 2009)18

A National Conversation – YOUR SCOTLAND, YOUR VOICE

I can see no way forward for the country
other than full fiscal autonomy. But myquestion is, would it be better to do thisand share some common resources as partof the United Kingdom (e.g. armed forces,
embassies around the world, etc). Or cana case be made that this would be better
done independently?
(National Conversation website, 18 November 2008)

How will independence benefit
young people in Scotland?
(Inverness Summer Cabinet 5 August 2008)

19

20

A National Conversation – YOUR SCOTLAND, YOUR VOICECHAPTER 3
A WEALTHIER SCOTLANDOVERVIEW
3.1

Sustainable economic development
improves the quality of life, healthand the environment to the benefitof all in society, while managing theresources of the planet for the
future. It is one of the central goalsof governments around the world,
and is the overarching purpose of
the Scottish Government.

3.2 A nation’s prosperity depends uponeveryone playing a part – asworkers, consumers, volunteers andbusiness people. A government’s
role is to enable their success byinvesting in people and places, andtackling unnecessary obstacles tosustainable economic growth. There
are a number of mechanisms
governments can use to promote
growth including:•••In the modern interdependent world,
these mechanisms are often coordinated internationally, mostnotably, in Scotland’s case, throughthe European Union.
3.3 Under the current arrangements
many of the key mechanisms topromote economic growth arereserved to the United Kingdom
Government and other United
Kingdom institutions. Some could be
devolved to Scotland within the
United Kingdom (for example,
aspects of the tax system, as
recommended by the Commission
on Scottish Devolution).

encouraging economic development
through effective fiscal andmonetary policy
influencing economic, social andenvironmental objectives throughlegislation and regulation of labourand product markets
investing directly in infrastructureand education

21

A National Conversation – YOUR SCOTLAND, YOUR VOICE

What steps are being taken to mitigate
Scotland, in particular against the effects
of resource depletion? We are so dependent inevery way now, that huge changes are needed
to empower and re-skill future generations tocreate a resilient, sustainable community withconfident, capable people able to meet the very
challenging times they will face.
(Oban National Conversation event, 5 October 2009)

3.4 With independence Scotland would
have full responsibility for promoting
economic growth and improving
Scotland’s long-term competitiveness,
including:
•

•

•

22

designing a tax system to make
Scotland a more attractive place forbusiness growth and investment
choosing a macroeconomic
framework, including the operationof fiscal policy, best suited to thecharacteristics of the Scottish
economyencouraging research and investment
to spur growth in key sectors where
Scotland has comparativeadvantages, for example in energy,
food and drink, life sciences,financial services, creative industries
and sustainable tourism

•

•

•

borrowing responsibly for investment
in key long-term projects, such as
the Forth Road Bridge
representing Scottish interests
internationally: for example fishingpolicy in the European Union; duties
on whisky in the World Trade
Organization
establishing a distinct population
strategy, addressing thedemographic and skills challenges
that face the nation

A National Conversation – YOUR SCOTLAND, YOUR VOICEECONOMIC AND FISCAL POLICY

Current responsibilities

Introduction

3.7 The current devolution
arrangements give the Scottish
Government responsibility for anumber of policy areas that affect
Scotland’s long-term economic
performance, such as education,transport, planning and economic
development. The Government
Economic Strategy outlines how
these are used presently to improve
Scotland’s sustainable economic
growth rate.21

3.5 The Scottish Government aims tocreate higher levels of sustainableeconomic growth and improvements
in productivity, labour market
participation and population, whilebuilding solidarity, cohesion andsustainability.19 An economic andfiscal framework that enhances
Scotland’s long-term competitivenessand ability to respond swiftly anddecisively to short-term economic
pressures and circumstances is vitalto achieving sustainable economic
growth.
3.6 For over a generation, the growthrate of the Scottish economy has
been lower than that of the United
Kingdom and other comparable
European countries. In the 30 years
to 2007, Scotland’s average annual
GDP growth rate was 2.0% – lower
than the United Kingdom economy
as a whole (2.4%) and well behind
Ireland (5.3%), Norway (3.1%) andFinland (2.9%). As a result of being
locked into a low-growth cycle forso long, Scotland now trails many
comparable European countries
across a range of economic
indicators.20

3.8 However, key elements of economic
policy, including taxation,
macroeconomic policy, science andinnovation, social security,
employment law and financial
regulation lie outside current
Scottish responsibilities.

23

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Fiscal policy

authorities, and indeed the Northern
Ireland Executive and the vast
majority of other comparable
devolved governments, the Scottish
Government cannot borrow for
wider policy objectives, for example
to meet pressures in an economic
downturn or to fund capital projects
like the new Forth crossing.24

3.9 The Scottish Parliament andGovernment are responsible for the
allocation of much of public sector
expenditure for Scotland: around£30 billion out of £50 billion.22
However, several key areas of
Scottish public spending are reserved,
for example defence spending.

Macroeconomic policy
3.10 In contrast to its spending
autonomy, Scotland has very limited
responsibility for raising money for
public spending. Only three taxation
instruments are devolved to
Scotland: local taxation (currently
the council tax); business rates; andthe Scottish Variable Rate which canvary the basic rate of income tax by
up to 3p.23 The vast majority of tax
revenue raised in Scotland is set andcollected at the United Kingdom
level. For devolved matters, theUnited Kingdom Government thendetermines how much of this should
be reallocated back to Scotland
through the Scottish Block Grant
and the operation of the Barnett
Formula (see Box 4 on the Barnett
Formula).
3.11 Scotland also has very limited ability
to borrow. The Scottish Government
can borrow only from the United
Kingdom Treasury and for immediate
cash-flow purposes. Unlike local

24

3.12 A balanced and supportive
macroeconomic policy framework
is key to fostering innovation,
investment and job creation and increating the right incentives,
conditions and opportunities for
economic growth.
3.13 There are two main instruments ofmacroeconomic policy:••

monetary policy: the use of interest
rates, money supply and exchange
rates to influence the level ofmoney, credit and inflation in theeconomyfiscal policy: the framework for the
management of government
spending, revenue and borrowing

A National Conversation – YOUR SCOTLAND, YOUR VOICE

3.14 Monetary policy is fully reserved andconducted through the Bank ofEngland. The Bank of England setsinterest rates, conducts operationsin the money markets and manages
the United Kingdom’s foreignexchange reserves. Its monetary
policy remit is to deliver pricestability, defined by the United
Kingdom Government’s inflation
target of 2%.25 The inflation target isset for the United Kingdom economy
as a whole, and does not allow
variations in prices, demand, or
economic cycles within the United
Kingdom.
3.15 Overall responsibility for theoperation of fiscal policy and the
public finances is also reserved to
the United Kingdom Government.
The United Kingdom Government
determines the framework for the
conduct of fiscal policy and is
responsible for the management of
net borrowing, financial reserves
and debt.
Industrial policy and regulatory
framework
3.16 Other important economic policies
levers are reserved to the United
Kingdom Government, which
remains largely responsible for theframework for economic regulationin Scotland. This includes
responsibility for energy policy,
including the oil and gas sector,

competition policy, company law,economic regulation of utilities (forexample telecommunications),
regulation of financial markets,
consumer protection and productand trading standards; and policies
affecting the labour market,
including employment law andmigration. These significant
responsibilities have a considerable
bearing on the performance and thegrowth potential of the Scottish
economy.
Scotland within the current framework
3.17 Scotland’s lack of financial
responsibility has real economic
consequences. Opportunities arelimited to set competitive policies,
particularly taxation, and to use thefull range of fiscal and economic
policy levers to complement the
specific strengths of the Scottish
economy and address any
weaknesses. Commitments to invest
in long-term infrastructure are also
constrained by fiscal rules which are
determined and revised by theUnited Kingdom Government andnot the best interests of the Scottish
economy.
3.18 In macroeconomic policy, theScottish economy is subject to arange of ‘one size fits all’ fiscal
policies which are set according toconditions across the United
Kingdom as a whole, and do not aim

25

A National Conversation – YOUR SCOTLAND, YOUR VOICE

to meet Scotland’s distinct needs.
The ability to take short-term
measures to stabilise the economy,
through, for example, tax cuts orsignificant increases in public
investment is severely constrained.
The Scottish Government also cannot
opt out of United Kingdom-wide
policies where an alternative solution
may provide a better outcome for
Scotland.26 In times of economic
difficulty, the Scottish economy isaffected by the policies of the United
Kingdom Government, and theScottish Government is limited in themeaningful actions it can take at theright time to address particularchallenges faced in Scotland.
3.19 As set out in the Scottish Government
Fiscal Autonomy in Scotland: thecase for change and options forreform the current financial
settlement does not provide theScottish Parliament with the
responsibility or the necessary
mechanisms to boost Scotland’slong-term competitiveness, or
respond to short-term economic
shocks.27 It also fails to provide aframework which maximises
efficiency, transparency or
accountability. For example, within
the current fiscal framework, policy
initiatives which successfullyincrease economic growth in Scotland
do not produce a corresponding
increase in the tax revenue available
to invest in Scottish public services.
Any increase in tax yield would flow
to the United Kingdom. The limited

26

tax-varying opportunities provide
little incentive to spend less than theblock grant and few opportunities tospend more. More generally, theScottish Government’s budget isdetermined principally by changes inspending on equivalent programmes
in England set by the United
Kingdom Government and is notdirectly linked to the demand for
public services of the Scottish
population.
3.20 There is also no direct accountability
between the taxes raised in Scotlandand spending by the Scottish
Government. In 2007/08,
approximately 89% of the Scottish
Government’s budget was financed
by a block grant.28 The United
Kingdom Government retains
responsibility for the size of theScottish budget through theallocation of this grant and theapplication of funding rules andguidelines.
3.21 Finally, fundamental decisions suchas choice of currency and the overallbalance of taxation lie outwith theremit of the Scottish Parliament. The
Scottish Government cannot adopt
macroeconomic policies to address
the weaknesses of the current
United Kingdom framework, suchas the limitations of the financial
regulation and fiscal frameworks.29

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Economic and fiscal recommendations of
the Commission on Scottish Devolution
Macroeconomic policy
3.22 The Commission recommended thatmacroeconomic policy remain
reserved to the United Kingdom
Government, although there should
be greater discussion between the
Scottish and United Kingdom
Governments on macroeconomic
policy.30 The Commission did notpropose any changes to the current
arrangements for monetary policy,
the currency or financial regulation.
Fiscal policy
3.23 The Commission’s terms ofreference charged it with making
recommendations to improve thefinancial responsibility of theScottish Parliament. The Commission
recommended that a greater shareof the Scottish Parliament’s budget
should come from devolved taxationby the Scottish Parliament and theUnited Kingdom Parliament sharing
the yield of income tax in Scotland.
The Commission proposed that the
Scottish Variable Rate should be
replaced by a single Scottish rate ofincome tax, applying to the basic
and higher rates of income tax. The
basic and higher rates of income tax
levied by the United Kingdom
Government in Scotland would be
reduced by 10p. Half the estimatedincome tax yield from savings anddividends in Scotland would also be
assigned to the Scottish Government.

The block grant from the United
Kingdom Government to the
Scottish Government should be
reduced by an equivalent total
amount. It would then be for the
Scottish Parliament to supplement
the block grant by setting a Scottish
income tax and deciding theappropriate rate.
3.24 The Commission recommended thata number of minor taxes (airpassenger duty, landfill tax, stamp
duty land tax and the aggregateslevy) should be devolved to Scotland,
and the Scottish Parliament shouldbe able to legislate, with theagreement of the United Kingdom
Parliament, for new taxes which
would apply in Scotland. The
Commission’s final report argues
that these recommendations would
give the Scottish Parliament real
financial accountability, and strike abalance between accountability,
equity and efficiency.
3.25 The Commission recommended that
the Scottish Government should begiven limited autonomy to borrow
to fund capital investment. Under
the proposals, Scottish Ministers
would be able to borrow only fromthe United Kingdom Government,
which would set the conditions andamount, therefore deciding theScottish Government’s ability to
manage its finances and capital
investment programme.

27

A National Conversation – YOUR SCOTLAND, YOUR VOICE

3.26 The proposals embody importantprinciples:
•

•

•

•

the Scottish Parliament should be
accountable for some income tax in
Scotlandthat this taxation should be linked to
the level of public spending in
Scotlandthat the Scottish Parliament should be
able to levy specific taxes, directed
at particular policy objectives
that the Scottish Government shouldbe able to borrow to invest in capital
programmes

3.27 However, Scotland’s budget would
be a complex mix of a block grant,
various devolved taxes, tax
assignment, tax sharing andreserved taxes. The United Kingdom
Government would still collectaround 80% of all Scottish tax
revenues. Key elements of fiscal
policy, such as corporation tax, VAT,
national insurance contributions,capital gains taxation, North Sea
revenues and the key types ofenvironmental taxation, would
remain reserved to the United
Kingdom Government. In addition,
responsibility for key elements of
the income tax system, such as
personal allowances, tax thresholds,
the tax rates on savings anddividends, the opportunity toestablish tax breaks for particulargroups such as pensioners, the selfemployed and young artists, would
remain reserved. The Scottish
Government would only be able to28

apply relatively broad brush changes
to the income tax system, and eventhen, constraints on funding priorservice commitments would limit
the practical opportunities to deliver
real policy autonomy. Targeted andpotentially redistributive measures,open to the United Kingdom
Government, through adjusting thestructure of the income tax regime
and its interaction with the wider
tax and welfare system would not
be possible. The Commission’s
recommendations would not
improve financial clarity andtransparency in Scotland, or
significantly increase the autonomyof the Scottish Parliament.31 The
block grant – set at the discretion of
the United Kingdom Government –would remain the most importantfactor in determining Scotland’sbudget.
3.28 The particular taxation mechanisms
proposed by the Commission could
pose a risk to Scotland’s public sector
and to its economic performance:
for example, the Scottish
Government would be heavily reliant
upon one single source of taxation
rather than the range of taxes
available to most governments. This
would leave Scotland’s budget more
exposed than under the current
arrangements. There is also a riskthat the Scottish budget could besqueezed inadvertently following
technical or administrative changes
to the income tax system by theUnited Kingdom Government.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Full devolution32
3.29 More extensive reforms of fiscal
policy and responsibility have been
proposed during the National
Conversation.33 Essentially these
propose that there should be agreater linkage between the level of
public spending in Scotland and thetaxation decided in the country, andthat the Scottish Parliament shouldmake decisions over a wider rangeof taxes, for example inheritance tax
or corporation tax. These models
would increase the economic andother benefits of reform, andprovide flexibility beyond that of
the relatively limited Commission
proposals. For example, Reform
Scotland has proposed that the
Scottish Government and the United
Kingdom Government are each
responsible for raising what they
spend, with taxes allocated to or
shared between them.34

3.30 Full fiscal autonomy would makethe Scottish Parliament and Scottish
Government responsible for raising,collecting and administering all (orthe vast majority of) revenues in
Scotland and the vast majority ofspending for Scotland. A remittanceor subvention from Scotland to theUnited Kingdom would be required
to cover common United Kingdom
public goods and services, such as
defence and foreign affairs. The
range of services paid for in this way
would be subject to negotiation at
the time of any revised settlement.
In essence, this framework would be
the maximum form of tax and policy
devolution short of independence.

29

A National Conversation – YOUR SCOTLAND, YOUR VOICE

3.31 In practice, a number of factors arelikely to limit the policy flexibility ofa devolved Scottish Government
even under full devolution:••

intra-national rules and guidelines,
in particular, European Union laws
governing taxation policy both
between and within Member Statesrules/agreements with United
Kingdom Government to align the
Scottish Government’s devolved
policies to those of the United
Kingdom•

continued reservations: key
aspects of economic policy – suchas financial regulation, employment
and competition law – may remain
reserved

3.32 It would be difficult to devolvemonetary policy effectively while
Scotland remained part of theUnited Kingdom as a common
currency is a feature of a unifiedstate. For example, if majority
opinion in Scotland favoured joining
the Euro, that would not be possible
within the United Kingdom.

After independence would theScottish Government’s ambition be
for a high-tax, high-spend economy,
or a low-tax, market-driven economy?
(Dumfries Summer Cabinet, 29 July 2008)

How will Scotland’s taxes beaffected in independence?
(Kirkcaldy National Conversation event, 16 May 2009)30

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Independence

Fiscal policy

Monetary policy

3.36 With independence, the Scottish
Parliament would be fully responsible
for fiscal policy in Scotland,
including the collection of all taxes
and government expenditures.35
The Scottish Government would be
able to borrow freely in international
capital markets, subject to market
constraints.36 Ensuring thesustainability of public expenditure
would be Scotland’s own
responsibility, as would managing
the national budget over the shortand long-term. It would, however, befor an independent Scotland to
decide the taxation to be levied, thelevel of government borrowing andthe level of public expenditure.

3.33 Under independence, Scotland would
have the opportunity to choose themonetary framework and currency
that best suited the needs of theScottish economy. A larger currency
union can offer some protection
from financial market speculation,although countries forgo the ability
to tailor monetary policy to their
specific economic circumstances.
Monetary union can also benefit
economic integration and trade byeliminating exchange rate risk.
3.34 Scotland would continue to operate
within the sterling system until adecision to join the Euro by thepeople of Scotland in a referendum
when the economic conditions
were right.
3.35 A monetary union necessarily limits
monetary policy discretion andflexibility. Greater emphasis istherefore placed on fiscal policy toaddress the Scottish economy.

Where would an independent
Scotland borrow from?
(Kirkcaldy National Conversation event, 16 May 2009)31

A National Conversation – YOUR SCOTLAND, YOUR VOICE

3.37 Public sector borrowing and net debt
are two of the most important andvaluable tools of macroeconomic
policy. This debt must be managed toensure affordability and sustainability.
A Scottish Government would havethe opportunity to establish credible
fiscal rules to guide policy, drawing
on the lessons and experiences ofother countries. Recent events, andin particular, the suspension of theUnited Kingdom fiscal framework,
offer some important insights.
3.38 Independence would allow the
Scottish Government to enhance
Scotland’s long-term competitivenessand better protect the economy
during downturns.37 This could beachieved, for example, through thecreation of a Fiscal Commission
suggested by the Council of
Economic Advisers.38 The fiscal
framework under independence
could make Scotland more
attractive for business by simplifying
the tax system and reducing
corporation tax. Independence
would also increase Scotland’s
ability to respond to changes in theeconomy through policies targeted
directly at the Scottish economy, forexample investment in capital, both
physical and human, and researchand development.

32

Financial regulation
3.39 Currently regulation of financial
markets is reserved and isconducted through a tripartite
agreement between the Treasury,
the Bank of England and the
Financial Services Authority
although European regulations areof growing importance.39
3.40Independence would provide
opportunities to:
•

•

•
•

•
•

create a culture to ensure thesuccess of Scottish financial
services in the future
ensure market and financial stability
for the Scottish economy and fiscal
policymaximise political accountability
influence European Union andinternational policy from a Scottish
perspective
build on Scotland’s strengths asa financial centre
attract new institutions to themarketA National Conversation – YOUR SCOTLAND, YOUR VOICE

3.41 On independence, Scotland would
need to choose institutional
mechanisms for financial services
supervision, to ensure an efficiently
functioning market, financial stability
and consumer protection This could
be done through partnershiparrangements with the rest of theUnited Kingdom or through its own
financial regulator, like Ireland. The
system chosen would need to reflect
the lessons of the current financial
crisis, for example greaterinternational co-operation in
regulation of the financial services
industry. An independent Scotland
could play a significant role inEuropean and international
developments and build its reputation
as a global financial centre.

3.42 Independence would provide
opportunities for new institutions
such as a stock exchange. The
Glasgow Stock Exchange mergedwith the London Stock Exchange in
1973, and subsequent attempts tocreate a Scottish Stock Exchange
have failed. A Scottish Stock
Exchange in an independent
Scotland could help Scottish
companies float, and provide analternative approach to accessing
private capital to assist growth.

33

A National Conversation – YOUR SCOTLAND, YOUR VOICE

BOX 3: SCOTLAND’S PUBLIC FINANCES
1.

2.

34

There has been considerable debate
about Scotland’s fiscal position andthe contribution made by tax
revenues from North Sea oil and gas
production.
Professor Alex Kemp and Linda
Stephen from the University ofAberdeen have estimated Scotland’sgeographical share of oil and gas
production using the principle of themedian line, that is, that all points on
the dividing line are the same
distance from the Scottish and restof the United Kingdom coastline.
Analysis based on this research hassuggested that for most of the
1980s, Scotland’s estimated fiscal
balance was in substantial surplus,
driven in part by the significant
growth in North Sea revenues, at atime when the United Kingdom as awhole was building up substantial
debt.40 Analysis also suggests that
Scotland’s estimated fiscal position
deteriorated through the 1990s.
However, since 2001/02, Scotland’s
public finances have recovered andits fiscal balance, including an
illustrative share of North Sea
revenue, is estimated to have beenbroadly in line with that of theUnited Kingdom and in the last three
years measured the current budgetbalance has bettered it.
3.

The most recent Government
Expenditure and Revenue Scotland(GERS) demonstrates that Scottish
public finances ran current budget
surpluses in each of the three years
to 2007/08 worth a cumulative£2.3 billion, when an illustrative
geographical share of North Sea
revenue is included.41 In comparison,
the United Kingdom ran a current
budget deficit in each of these years
which was cumulatively worth£24 billion. Scotland’s overall fiscal
balance in 2007/08, which is theestimated current budget balanceplus net capital investment, was a
deficit of £3.8 billion (2.7% of Gross
Domestic Product), similar to thosefor other OECD countries.42

4.

GERS takes the current
constitutional and fiscal framework
as given. Under alternative
frameworks, Scotland’s fiscal
position would depend on the policy
choices of the government of the
day and the economic climate.

A National Conversation – YOUR SCOTLAND, YOUR VOICEBOX 4: THE BARNETT FORMULA
1.

2.

The Barnett Formula is used by theUnited Kingdom Government todetermine variations to the budgetsof the Scottish Government, Welsh
Assembly Government and Northern
Ireland Executive. It was first
introduced for Scotland in 1978 andhas remained largely unchanged
since, although since devolution it has
been routinely subject to marginaladjustments to reflect population
changes. These are given effectthrough the Statement of Funding
Policy between HM Treasury and thedevolved administrations, which is
re-issued after each spending review.
Under the formula, increases ordecreases in the Scottish
Government’s budget are determinedby increases or decreases in spendingin Whitehall Departments’ spending
on programmes which are devolved
to Scotland, calculated using relative
population shares.43 These increases
or decreases in Scottish, Welsh andIrish budgets are known as Barnett
consequentials. This means that the
total level of public spending in
Scotland is largely determined byhistoric spending baselines, adjusted
by reference to decisions on
spending elsewhere in the United
Kingdom and not linked to current
economic conditions, the preferencesor needs of the Scottish people. The
formula also means that the Scottish
budget depends on unilateraldecisions by the United Kingdom
Government on spending in England.
For example, the implementation ofefficiency savings across the United
Kingdom Government, andreductions in Department of Healthbaselines in England in the 2009

Budget, resulted in the Scottish
budget being cut by £500 million in
2010/11.
3.

The United Kingdom Government
can also unilaterally decide not topass to Scotland consequential
increases from United Kingdom
expenditure in a devolved policy
area (known as “formula bypass”).
For example, Scotland did not receive
consequentials from the capital
expenditure on urban renewal
associated with the London Olympics
or from the increase in prison
expenditure in England in 2007,
following the recommendations of
Lord Carter’s review of prisons.44

4.

There have been recent proposals toreform the method of funding thedevolved administrations. The
Scottish Government report Fiscal
Autonomy in Scotland set out the
shortcomings of the Barnett Formula
as a funding mechanism, and theoptions for full fiscal autonomy for
Scotland. The Commission on
Scottish Devolution and the Houseof Lords Select Committee on the
Barnett Formula both recommended
that the current formula should be
reviewed. The Welsh Assembly
Government’s Independent
Commission on Funding and Financefor Wales (the Holtham Commission)
made similar recommendations.
However, no consensus has beenreached on how an alternative system
would operate, and the United
Kingdom Government has indicatedthat it does not accept the need forreform, although the Joint Ministerial
Committee (Domestic) is currently
examining whether an adjudication
procedure could be established toresolve areas of controversy.
35

A National Conversation – YOUR SCOTLAND, YOUR VOICEBOX 5: LESSONS FROM THE CURRENTGLOBAL ECONOMIC SITUATION
1.

4.

A number of commentators havequestioned why such imbalanceswere allowed to develop over such along period of time. This is based on
the argument that central banks
should target a broader measure of
inflation when setting interest rates,by including asset prices or key
elements of the macro economy
such as the balance of payments.45
However, central banks might
require additional policy instruments
to achieve dual objective ofpreventing asset price bubbles aswell as controlling inflation. Mervyn
King, Governor of the Bank ofEngland, has emphasised that using
one policy instrument to meet two
objectives would involve a trade-off
between achieving both objectives.46

5.

In time, the severity of the credit
crunch may lead to a re-casting of
the objectives of monetary policy toplace greater emphasis on financial
market and asset price stability.

The causes and the impact of the
global economic slowdown haveraised important, wider questions
about the setting of economic policy
in advanced economies. This isforcing a reappraisal of policy andinstitutional frameworks in several
areas, including the role of the state;
the scope of financial regulation; theobjectives of monetary and fiscal
policy; and the arrangements forinternational economic and financial
coordination.

Monetary policy
2.

Independent central banks havebeen generally charged withmeeting inflation targets, mainly
through interest rates. Some havebroader objectives: the UnitedStates Federal Reserve promotes
employment, stable prices andmoderate long-term interest rates.

Fiscal policy
3.

36

Recent events in the global
economy have led to an element ofreappraisal of the objectives ofmonetary policy. One of the maincauses of the economic downturn
was imbalances in the global
economy. Finance from countries
with high savings rates and current
account surpluses, such as China
and oil-producing states, flowed intodeveloped economies including theUnited Kingdom and the UnitedStates, leading to low interest rates
and a boom in credit, house prices,
equity prices and trade deficits.

6.

The economic crisis has placed
significant pressure on public sector
finances, and illustrated problems
with previous frameworks for
managing fiscal policy.

7.

A common criticism of some previous
fiscal rules, such as those of theEuropean Union, is that they lacked
firm theoretical foundations and set
targets that were largely arbitrary.
Other fiscal rules, such as those for
the United Kingdom, while groundedin economic theory, were open tointerpretation and failed to ensure

A National Conversation – YOUR SCOTLAND, YOUR VOICE

fiscal restraint and saving during
periods of stronger economic growth.
For example, between 2001 and2008, the United Kingdom economy
grew 15% but public sector net debt
almost doubled to £593 billion.47 In
2008 the United Kingdom was forced
to abandon its two fiscal rules,
replacing them with a temporary
operating rule.
8.

In light of these criticisms, a numberof options for fiscal reform havebeen put forward:•

fiscal rules that are legally binding.
This approach is taken in many
American states, but its rigidity
raises wider social and economic
challenges
greater flexibility when setting fiscal
rules. The European Union’s revised
Stability and Growth Pact now
places greater emphasis on theeconomic cycle and the underlying
health of the public finances
greater independent oversight toassess compliance with the rules andprovide projections for the publicfinances. The Council of Economic
Advisers has recently advocatedsupport for such a Fiscal Commission.

••

Financial regulation
9.

Regulation in the United Kingdom
did not keep pace with innovation in
the financial markets. Hence thedisruption in sectors of the financial
services market that were poorly or
unregulated, including hedge funds
and derivatives. Exposure in thesecomplex instruments led to major

losses for banks and damaged
confidence throughout the financial
system. Regulators did not identify
the systemic risks caused by losses
in one organisation spreading toothers across the globe, andeventually the real economy.
10. The United Kingdom regulatory
system did not prevent: businesses
becoming overextended throughexcessive leverage and risk taking;over-reliance on wholesale funding;
overdependence on risky products;
and poor decisions over acquisitions.
The United Kingdom Government
has outlined proposed changes tothe current regulatory framework ina White Paper.48
11.

A further lesson from the current
crisis has been how to regulate and,if necessary, support multinational
institutions, which while
headquartered in one area, operate
across jurisdictions. In the case ofcertain institutions, support has
been international. For example,
the Belgian, Dutch and Luxembourg
Governments provided joint support
for Fortis Bank.49 The G20 Summit in
April 2009 agreed to establish a
Financial Stability Board to extend
regulation and oversight to all
systemically important financial
institutions and to strengtheninternational regulation. In June2009 the European Council agreed
to establish a European System ofFinancial Supervisors and a new
European Systemic Risk Board to
implement the international model.

37

A National Conversation – YOUR SCOTLAND, YOUR VOICE

SOVEREIGN WEALTH FUND
3.43 An independent Scotland could
create a sovereign wealth fund,based on Scotland’s oil and gas
reserves, to provide an effective
mechanism to insulate the economy
in times of economic instability andinvest for long-term sustainability.
Since 1980/81 approximately 90% of
United Kingdom oil and gas
revenues have been generated froman area that could be classified ascomprising Scotland's geographicalshare of the current United Kingdom
Continental Shelf. Substantial North
Sea oil and gas reserves are yet to
be extracted, and their value is likely
to increase. The management ofNorth Sea reserves would therefore
be an important element of
Scotland’s public finances under arevised fiscal framework.50
3.44 Under the current constitutional
settlement, all revenues from North
Sea oil and gas production go to theUnited Kingdom Government andhave been used to fund government
expenditure or to lower taxation. An
alternative approach is demonstrated
by the Shetland Islands. Since the1970s, Shetland Islands Council has
been able to levy a royalty overevery barrel of oil landed at Sullom
Voe and invested the revenue in an
oil fund. The fund is now estimatedto be worth £180 million.51

38

3.45 A Scottish sovereign wealth fundwould invest a proportion of
the revenues from oil and gas
production over the long term,
creating a permanent source ofrevenue. The fund would support
macroeconomic stabilisation andaddress unexpected short-term
spending pressures, safeguarding
Scotland’s fiscal position. The fundcould invest in low carbon sourcesof energy production, providing
Scotland with new sustainablesources of energy.
3.46 The Commission on Scottish
Devolution considered devolution ofsome element of oil and gas revenues
to the Scottish Government, but,
based largely on fluctuations in oil
and gas prices, concluded that thiswould expose the Scottish budget
to possible revenue fluctuations.52
However, the Commission’s
Independent Expert Groupsuggested that the creation of an oilfund can enhance intergenerational
equity, protect a country’s capitalstock over time and mitigate thevolatility of oil revenues.53

A National Conversation – YOUR SCOTLAND, YOUR VOICE

BUSINESS AND ENTERPRISE
Current position
3.47 Current devolved responsibilities
are used to support enterprise andbusiness in Scotland,54 and tosupport the Scottish Economic
Recovery Plan.

3.48 However, many of the key policy
areas that contribute to enterpriseand business remain reserved, forexample company law, corporate
insolvency, competition andconsumers,55 health and safety
and employment rights. Under
these arrangements, Scotland's
growth has remained behind thatof the United Kingdom in nine outof the past 10 years.56

39

A National Conversation – YOUR SCOTLAND, YOUR VOICEEnterprise and businessrecommendations of the Commission
on Scottish Devolution
3.49 The Commission concluded that aseparate macroeconomic policy for
Scotland would affect what they
saw as the benefits of the economic
Union.57 The Commission did nottherefore propose any alterations to
the Scottish Parliament and theScottish Government’s responsibilities
affecting business and enterprise.
3.50 The Commission did not recogniseor discuss the historic underperformance of the Scottish economy
compared to the United Kingdom asa whole, nor the European
dimension to economic Union, whichguarantees the free flow of goods,
services and people between
Scotland, the rest of the United
Kingdom and other member states.
3.51 The Commission did makerecommendations on related issues:
health and safety and insolvency.

40

Health and safety
3.52 The Commission recommended acloser relationship between the
Health and Safety Executive (HSE)in Scotland and the Scottish
Parliament.58 The Commission foundno reason in principle why healthand safety (or elements ofenforcement) could not be devolved,
but recommended that the current
reservation should continue.
3.53 This recommendation recognised
the importance of devolved mattersto health and safety in Scotland andwould give some opportunity for
Scottish interests and factors to
influence HSE policy and operations.
However, devolution beyond theCommission’s proposal would
provide clearer enforcement andremove boundaries to improveconsistency.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Insolvency
3.54 The Commission’s sole
recommendation was that the United
Kingdom Insolvency Service, with
input from the Scottish Government,
should be responsible for the rules
for insolvency practitioners on bothsides of the border.59
3.55 As the Commission recognised,devolved Scots law governs muchof the substance and procedurefor insolvency in Scotland. By
incorporating these matters into
United Kingdom legislation, thisrecommendation would increase
complexity and work against the
purpose of devolution.

41

A National Conversation – YOUR SCOTLAND, YOUR VOICE

3.56 There are a number of important areas of business andenterprise policy that could be devolved beyond therecommendations of the Commission on Scottish Devolution:
employment60 and competition law; regulation of companies;
and health and safety. The Scottish Parliament and Government
could be given responsibility in these areas to make Scotland an
attractive environment for business and to promote sustainableeconomic growth.

42

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Corporation tax
3.57 A major policy lever that could be
devolved is corporation tax. The
tax burden on small businesses in
Scotland has been substantiallyreduced within existing devolved
competence through the Small
Business Bonus Scheme. A morecompetitive corporation tax could
boost the economy, including
foreign investment, research anddevelopment, and the siting ofcorporate headquarters. Corporation
tax could be adjusted for small andmedium sized companies, greatertax allowances could be given fortargeted activities and theadministrative process could be
simplified. The United Kingdom(and hence Scotland) has the eighth
highest corporation rate in theEuropean Union; a number ofEuropean countries of comparable
size to Scotland have alreadyintroduced significantly morecompetitive corporation tax rates.
Within a full devolution framework,
the Basque Country has used its
responsibility for corporation tax tointroduce a lower statutory rate to

the rest of Spain, and to put in place
more competitive allowances forparticular growth enhancing
activities, such as investment inresearch and development.
(see Box 7 on the Basque Country).
Independence
3.58 Under independence Scotland
would have responsibility for thefull range of policies to encourage
enterprise and business growth,and the opportunity to address thefactors which have contributed tothe economic under-performanceof the last 30 years.
3.59 Scotland would continue to be
subject to international rules, suchas European Union directives oncompetition and tax harmonisation.
However, Scotland would act as anindependent state in its relationshipwith the international economic,
financial and business community,
and would have a full voice inEurope.

43

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Competition and consumers

International trade

3.60Recent research indicates a lack ofcompetition in markets in Scotland,with high prices relative to theUnited Kingdom in areas liketransport, utilities, catering andleisure services.61 Independence
would allow future developments incompetition and consumer policy to
be based on Scottish political, socialand economic interests, for example
securing or sustaining comparativeadvantage. Responsibility forcompetition in Scottish markets,
combined with an enterpriseoriented fiscal policy, would:

3.62 Scotland has long been an outwardlooking trading nation, with strong
global connections. Scottish
business organisations work acrossthe globe to increase international
trade revenue through exports. They
also seek to increase investment in
Scotland and promote Scotland
internationally as a vibrant place to
live, work and do business with.

•

•

•

encourage businesses to improvetheir internal efficiency and reduce
costs
incentivise early adoption of newtechnology and other forms ofinnovation
increase the international
competitiveness of Scottish
businesses and products

3.61 Scotland’s geography raises issues
for consumers in the islands or inrural areas, who enjoy far fewer
choices in the products and services
they use.62 Consumer policy in an
independent Scotland could be
developed in the context of a setof key principles such as access,choice, safety, information, fairness,representation, redress, andeducation.

44

3.63 Scotland’s biggest trading partner isthe rest of the United Kingdom, withtrade worth £26.1 billion in 2007.63
On independence Scotland and therest of the United Kingdom would
retain common interests and ties
through shared history, geography
and trade links. As a full member ofthe European Union, Scotland would
continue to have access to its
markets. Independence would
enhance the opportunities for
Scotland’s wider international tradeand investment, underpinned byforeign and fiscal policies dedicatedto Scotland’s political, social andeconomic interests. For example,
Scotland’s overseas representation
is likely to focus on business andenterprise, rather than the projectionof power.

The event in Melrose wasattended by a good cros
section of the community
and the open format led
to informative discussion.
A National Conversation – YOUR SCOTLAND, YOUR VOICETax collection
3.64 The overall tax burden is central
to the competitiveness of the tax
system, but the costs ofcompliance are also important.
A study commissioned by HM
Revenue and Customs in 2006
estimated that administration ofUnited Kingdom corporation tax
cost business £608 million, 70% of
which was from Small to Medium
Enterprises.64

3.65 A simpler tax system in Scotland
would reduce costs for businesses
and government, reduce incentives
for tax avoidance and noncompliance, and potentially
increase revenue.65 Reportingof statutory accounts and tax
calculations could be unified forsmaller companies. The smallest
companies might be assessed for
tax on cash flow rather thanaccounting profit. Business leaders
could be directly involved in thedesign of revised tax, regulationand enterprise systems for
Scotland, avoiding the uncertainty
surrounding recent United
Kingdom announcements on
capital gains tax.

45

A National Conversation – YOUR SCOTLAND, YOUR VOICEBOX 6: SCOTLAND’S ECONOMY
1.

Scotland has a diverse and open knowledge-based economy
that provides employment for around 2.5 million people andgenerates total annual economic output of over £100 billion.66 In
addition, Scotland’s offshore natural resources, including oil andgas, generated an estimated annual output of over £30 billion in2008.672.

Scotland’s economy has adapted well in recent decades to theforces of globalisation, and the structure of Scotland’s economy
has changed significantly. In common with many industrialised
countries, the manufacturing sector has declined and the service
sector has grown. In 1981, 479,000 people in Scotland were
employed in the manufacturing sector; this had fallen to 220,000
in 2007. In contrast, between 1981 and 2007, employment in theservice sector rose by 587,000, more than compensating for thefall in manufacturing employment.68 The service sector now
accounts for around 75% of employment in Scotland.69 Scottish
firms also continue to maintain and develop global competitive
strengths in the manufacturing and engineering sectors throughinnovation and commercialisation of research.

3.

The Scottish economy remains diversified with a number ofsectors contributing to output, employment and exports.
Scotland’s goods and services are exported across the globe.
Beyond the United Kingdom, the European Union and North
America are the main export markets for Scottish firms.70

4.

To expand Scotland’s areas of international comparativeadvantage, the Government Economic Strategy recommends
building critical mass in a number of key sectors with high growthpotential and the capacity to boost sustainable economic growth.
The Scottish Government continues to support enterprises acrossScotland in other sectors where action can be taken to overcome
weaknesses in markets, and where particular businesses can makea significant contribution to the Scottish economy.

46

A National Conversation – YOUR SCOTLAND, YOUR VOICE5.

The energy sector makes a substantial contribution to Scotland’s
economy. In 2007, the energy sector employed directly 40,700 people,
accounting for 23% of the total people employed in the energy sector in
the United Kingdom.71 Scotland’s oil and gas industry, based in Aberdeen,
is one of the world’s largest energy hubs, and is home to major European
headquarters of global companies like BP and Shell. The industry body,
Oil and Gas UK, estimates that in total the sector supports around
195,000 jobs in Scotland through its impacts on the supply chain, export
activities and employee expenditure throughout the economy. Since
1976/77, production from North Sea oil and gas fields has generated
more than £269 billion (2008 prices) in direct tax receipts to the United
Kingdom Government.

6.

In addition to the oil and gas sector, Scotland has considerable potential
to develop renewable energy and low-carbon energy production,
contributing to Scotland’s targets to reduce climate change emissions.
The sector is expanding rapidly in terms of new capacity and output,
with electricity generation from renewable sources reaching 20% ofgross consumption in 2007. The sector is estimated to employ 4,000 –
6,000 people, and there is scope for significant expansion over the next
decade.72 Scotland’s natural advantages, coupled with investment in newtechnologies, means that it is well-placed to be a major European centre
for the production and export of renewable energy.

7.

The financial services industry has a long history in Scotland, and it
remains an important part of the economy. Edinburgh is one of Europe’s
largest financial services centres, and many of the world’s major financialorganisations have offices there. The industry employed directly 91,500
people in 2007.73 Global turmoil in financial markets experienced since2007 has created a challenging environment, but Scotland’s strengths infinancial services remain despite the pressure on the banking sector.
Several financial services companies in Scotland continue to makeannouncements of expansion and investment plans.

8.

Food and drink (including agriculture and fisheries) is a key sector in the
Scottish economy. The contribution to economic output from food anddrink manufacturing was £3.2 billion, of which over half was from the
manufacture of beverages.74 The spirits sector within drinks
manufacturing, especially whisky, forms an important part of the sector’s
contribution to the Scottish economy in terms of value added and export
potential. Agriculture and fishing provide further economic contribution
along with the wider food and drink supply chain.75

47

A National Conversation – YOUR SCOTLAND, YOUR VOICE

9.

Tourism provides an important source of expenditure in Scotland’s
economy, and helps generate economic activity in some of the morerural and fragile areas of Scotland, sustaining communities
economically and socially. Around 14.6 million tourists visited Scotland
in 2008, and total expenditure on tourist trips stood at £4 billion.76

10. The creative industries make an important contribution to Scotland’s
economy. Scotland’s creativity has a strong international reputation.
Scottish art, film, fashion, music and literature is recognised
throughout the world, as are the design and computer gaming
industries. Creative industries have grown over the past 10 years in
Scotland, and they are estimated to contribute £2.4 billion toeconomic output and account for 5% of Scotland’s total exports.77
11.

The Life Sciences sector in Scotland is diverse, encompassing a range
of industries including biotechnology and pharmaceutical companies,
contract research organisations (CROs), medical device anddiagnostic companies, along with specialist suppliers and support
organisations. This sector employs over 30,000 people directly andindirectly in more than 600 organisations, with an annual turnoverexceeding £3 billion and economic output of £1.3 billion.78

12.

Scotland’s strong academic base is evidenced by the size, scope andinternational standing of Scottish higher education institutions, withfour (Edinburgh, Glasgow, St Andrews and Aberdeen) among theworld’s top 150 universities.79 Directly employing some 35,159 full-time
equivalent staff and teaching some 224,855 students, Scottish
universities had a total turnover of £2.48 billion in 2007/08.80 Scotland
has the highest ratio of cited research papers to Gross Domestic
Product in the world and the impact of Scottish research is ranked
second in the world, behind only Switzerland.81 Scottish universities
attracted 33,520 international students in 2006/07, at 14.6% of thestudent body third in the Organisation for Economic Cooperation andDevelopment behind Australia and the United Kingdom.82

13.

Scotland has a diverse economy which plays a dynamic role in themodern global economy. Scotland has responded to shifting global
patterns to ensure that its workforce has the right skills and that its
business infrastructure remains competitive.

48

A National Conversation – YOUR SCOTLAND, YOUR VOICEBOX 7: CORPORATION TAX IN THE BASQUE COUNTRY83
1.

The Basque Country enjoys considerable fiscal autonomy,
with wide ranging responsibilities over the collection of tax
receipts and government expenditure, while remaining
part of Spain. Its GDP per capita is approximately 30%
higher than the Spanish average, and at the start of 2009
the Basque Country Government enjoyed a higher credit
rating than the Spanish Federal Government.

2.

The fiscal relationship between Spain and the BasqueCountry is governed by the Concierto Económico, or
Economic Agreement consistent with the Statute ofAutonomy (1977). Under this agreement, the Basque Country
Government has the authority to vary most forms of direct
taxation including income tax, corporation tax and taxation
on wealth and capital gains, and has introduced a headline
corporation tax rate of 32.5%, compared to the Spanish
rate of 35%.

3.

However, the Economic Agreement also contains a numberof general principles which are designed to ensure adegree of harmonisation between the Basque tax systemand that in the rest of Spain. Constraints therefore remainon the policy levers available to the Basque Country
Government.

49

A National Conversation – YOUR SCOTLAND, YOUR VOICEMIGRATION
Current position
3.66 Demographic change presents
Scotland with challenges of growing
the population and addressing thestructure of the Scottish population,in particular those of working age.
Population growth is a key driver of
economic performance and Scotland
has a population growth target tomatch average European population
growth over the period from 2007
to 2017.84 The average age of theScottish population is predicted toincrease, with the working age
population decreasing and a greater
ratio of pensioners to persons ofworking age.85
3.67 The Scottish population is projected
to decline in the mid-2040s, with theworking age population projected to
decline after 2020. The structure of
the Scottish population is projected
to change more rapidly, with older
people accounting for a relatively
higher share of the Scottish
population.86 The dependency ratio– the ratio of persons aged under 16
or over pensionable age to those ofworking age – is projected to risefrom around 60 per 100 in 2008 to
68 per 100 in 2033.

50

3.68 Immigration is currently reservedto the United Kingdom Parliament.
For migrants from outside theEuropean Economic Area, there isa points-based managed migration
system which takes account ofqualifications, age, salary, andlanguage skills. For skilled migrants
there is also a shortage occupation
list. Some elements of the system
reflect Scotland-specificcircumstances, such as recognitionof Higher National Diplomas as aqualifying criterion, and a separate
Scottish shortage occupation list.
However, the points based system
operates at a United Kingdom level,with no substantial regionalvariations, which makes attracting
the required number of migrants to
Scotland more challenging, as
Scotland has different populationneeds from most other parts of theUnited Kingdom.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Migration recommendations of theCommission on Scottish Devolution
3.69 The Commission recommended
retaining the current reservation of
immigration, but that active
consideration should be given toagreeing sustainable variations toreflect the particular skills anddemographic needs of Scotland. The
Commission concluded that freedomof movement and employability
argued for one system throughout
the United Kingdom. However, themajority of submissions theCommission received on this issue
called for greater flexibility andmore responsibility for Scotland
within an overall United Kingdom
framework. Sub-state migration
policies have been establishedsuccessfully in a number of countries,
including Australia and Canada.
3.70 The Commission’s recommendation isa variation on existing arrangements,
which allow Scotland to contribute to

overall United Kingdom immigration
policy, but give it no formal role. The
Commission would not give Scotland
responsibility for its migration
requirements for either economic or
demographic reasons, as these would
be subject to policy imperatives inother parts of the United Kingdom.
Experience elsewhere shows that
greater responsibility for Scotland to
determine its own migration policy
need not have the impact on the restof the United Kingdom suggested by
the Commission.
Independence
3.71 An independent Scotland would have
responsibility for its own migration
policy and its borders. Scotland
faces different issues from the otherparts of the United Kingdom, andmigration policy could be tailored toaddress the economic challenges ofdemographic change. Immigration
could also help address skills
shortages in Scotland’s labour market.

We really applaud and support the United
Kingdom Home Office’s points based system for
immigration. But it is very unfortunate that it is
not taking into consideration the regional
differences in immigration attractions in Englandversus Scotland. Why not do a regional variation?
(Edinburgh CEMVO event, 22 April 2009)51

A National Conversation – YOUR SCOTLAND, YOUR VOICE

3.72 Many nations use migration policies
to address demographic problems,
as well as addressing skills
shortages. Both Canada andAustralia give priority to potential
immigrants with particular skills andexperience. Quebec has its own
immigration policies, establishedunder the Canada-Quebec Accord
on Immigration, which requires,amongst other things, that
immigrants can speak French or
English. A Scottish migration
scheme could both place particularimportance on required skills andgive priority to immigrants who
assist in meeting the demographic
challenges, for example young
people or families with children.
3.73 Citizens of European Union member
states are entitled to freedom of
movement within the single market.
As a full member of the European
Union, Scottish borders would
remain open to European Union
nationals, just as Scots are free tomove throughout the European
Union.

52

3.74 Scotland’s immigration systemshould also support the country’s
commitment to human rights. Like
immigration, asylum policy iscurrently the responsibility of theUnited Kingdom. On independence,
Scotland could take into accounteconomic and demographic needs,
as well as human rights and justice,when considering asylum
applications. Responsibility for theimmigration and asylum system
would allow Scotland to provide
greater security to asylum seekers
awaiting the outcome of theirapplication and ensure a fairer
and more humane asylum system.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

BROADCASTING
3.75 Broadcasting is a key part ofnational life, expressing Scottish
culture to domestic and international
audiences. The broadcasting
industry also makes an important
contribution to the economy.
Current position
3.76 Broadcasting is a reserved matter.
All decisions about broadcasting
which affect Scotland are taken by
the United Kingdom, including
related matters such as the
television licence fee, broadcasting
spectrums, funding and regulation.
3.77 In 2008, only 3.7% of the BBC’s
network television programmes
were made in Scotland, while STV is
now obliged to produce only 1.5 hours
of non-news programming per week,
a reduction from three hours prior
to January 2009. The Scottish
Broadcasting Commission expressedstrong concerns about the state of

public service broadcasting in
Scotland, and identified a number ofareas where viewers felt that there
should be a better choice ofprogramming relevant to Scotland.87
Broadcasting recommendations of theCommission on Scottish Devolution
3.78 The Commission made one
recommendation relating tobroadcasting: that the appointmentof the Scottish member of the BBC
Trust should be the responsibility of
Scottish Ministers, subject to thenormal public appointments process.
This recommendation could be
implemented immediately without
the need for legislation. Although it
would not directly affectbroadcasting in Scotland, theproposal would give the Scottish
Government influence over parts ofthe broadcasting framework with aparticularly Scottish element.

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A National Conversation – YOUR SCOTLAND, YOUR VOICE

Why is broadcasting a reserved issue? I ask
specifically because I am interested in Gaelic
broadcasting where the broadcasting side isreserved and the Gaelic side is devolved.
This causes some odd situations.
(Dundee Summer Cabinet, 30 June 2009)

Full devolution
3.79 Further devolution would provide
opportunities for Scotland to have
responsibility for different parts of
its broadcasting framework, whileremaining within the overall United
Kingdom framework, including the
BBC and Ofcom. Examples of suchan arrangement include Catalonia,
which is responsible for Catalan
broadcasting, while the Spanish
government is responsible for
Spain-wide broadcasting.88
3.80 Additional responsibilities could
include: new public service
broadcasting bodies, such as the
Scottish digital network
recommended by the Scottish
Broadcasting Commission; ensuringthat Scottish culture and interests
were better represented throughtelevision and radio programming;
responsibility for appointments ofboard members of MG Alba (theorganisation responsible for the
output of BBC Alba). Under further
devolution Ofcom could be charged
with taking the lead in settingcommercial, public service networks
nations and regions obligations to
Scotland and ensuring they were met.
54

3.81 The majority of funding for public
service broadcasting in the United
Kingdom comes from the TV licencefee (for the BBC) and advertising.
The United Kingdom also provides
funding of £98 million for S4C in
Wales from general taxation
revenues, in addition to theprogramming subsidy provided bybroadcasters which is worth
approximately £25 million. Further
devolution should be accompanied
by a negotiated arrangement for
funding public service broadcastingin Scotland. Scotland could, forexample, be allocated a share of TV
licence revenues and revenues
generated from licensing broadcasters
and other telecommunications
operators to use spectrum.

A National Conversation – YOUR SCOTLAND, YOUR VOICE55A National Conversation – YOUR SCOTLAND, YOUR VOICE

Independence
3.82 Independence would mean full
responsibility for broadcasting in
Scotland. Impartiality and politicalindependence of broadcasters,
including a national public service
broadcaster (based initially on theexisting staff and assets of BBC
Scotland), would remain a key
principle. There would be various
options available for the funding of a
Scottish national broadcaster. This
would ensure that an independent
Scotland had a high-quality,
impartial national public service
broadcaster which reflected Scottish
life, culture and interests.
3.83 An independent Scotland should notlose the range and quality ofbroadcasting options received
currently, and indeed should seek anenhanced broadcasting service. For
example, Scotland should continue toaccess BBC and other broadcasters
from the United Kingdom and there
should be no obstacles to Freeview,satellite and cable services being
available in Scotland on a similarbasis to now.
3.84 Independence would allow a
regulatory system that prioritised
issues of particular importance for
Scotland, such as making available
additional spectrum for new
channels. A Scottish broadcasting
regulator would also safeguard thequality and impartiality of Scottish
public service broadcasters within
European regulations.

56

3.85 Independence would also provide
the opportunity to rationalisechannel 3 licensing arrangements.
Following a merger between the
Border and Tyne Tees local news
service, viewers in the South of
Scotland now receive ‘local’ evening
news programmes which arebroadcast from Gateshead.89
Independence would make it easierto establish licensing arrangements
which would better serve Scottish
viewers, including a single
nationwide licence, or the creationof further licences to allow moreregional broadcasting.
Broadcasting industry
3.86 The Scottish broadcasting industry
employs 2,400 people and is worth
around £111 million to Scotland’s
economy. Independence would
provide opportunities to develop
the industry further. The Scottish
Government could take a range ofsteps to attract inward investment,
as have countries like Ireland andCanada. It is likely that this would inturn generate further investment in
the Scottish broadcasting industry,including further spending on
programming. Additional investmentof this kind would bring improved
choice for Scottish viewers andwould allow broadcasting, alongwith the other creative industries, tomake a significant contribution toeconomic growth in an independent
Scotland.

A National Conversation – YOUR SCOTLAND, YOUR VOICECONCLUSION
3.87 Addressing Scotland’s historic
underperformance, and encouraging
sustainable economic growth is oneof the key challenges that face thenation. A number of different policy
areas contribute to this goal, butmany of the major mechanisms open
to independent states – economic
and fiscal policy, monetary policy,
international trade – are currently
reserved to the United Kingdom
Government.

3.88 Some of these matters could
be devolved within the United
Kingdom, for example aspects ofthe taxation system or employment
law. However, any level ofdevolution would leave Scotland
within the overall macro-economic
policies of the United Kingdom andits international position on
economic matters, especially in theEuropean Union.
3.89 Independence would give Scotland
full responsibility for its own
economic performance, and for all
the policy mechanisms to encourage
the optimum level of development.

57

A National Conversation – YOUR SCOTLAND, YOUR VOICE58A National Conversation – YOUR SCOTLAND, YOUR VOICECHAPTER 4
A FAIRER SCOTLANDOVERVIEW
4.1

Scotland has a strong traditionof striving for a fairer and more
inclusive society, combining equalityof opportunity to thrive and excel,
with support for those in need.

4.2 There are a number of important
areas of government policy thatshould build on those traditional
Scottish values. Welfare support
and benefits should be responsive tothe specific needs of individuals andthe country: its economy, housing,geography and demographics.
People should be supported backinto work, and those who cannot
work should not be abandoned toa lifetime of poverty and struggle.
Those who suffer from disadvantage
or discrimination should beprotected.
4.3 Under the current devolution
settlement, the major systems
for providing social justice – thetaxation and benefits systems –are reserved to the United Kingdom,
as is the legislation to protect andpromote equalities.

4.4 The Commission on Scottish
Devolution recognised the close
relationship between devolved
policy, for example on poverty andhousing, and the reserved benefits
system. The Commission
recommended a formal but very
limited role for the Scottish
Parliament and Government inthese matters. Devolution of greater
responsibility for benefits would
allow more integrated policy totackle poverty in Scotland, butwould also require devolution of
taxation, and full financial
responsibility for Scotland.
4.5 With independence Scotland would
be responsible for addressing all ofthese issues, and for designing andimplementing a taxation andbenefits system integrated withother policies on skills, educationand family support to address issuesof poverty and exclusion. Scotland
would also be responsible for
ensuring that all its citizens aretreated fairly and equally, and enjoy
the full protection of the law.

59

A National Conversation – YOUR SCOTLAND, YOUR VOICEWELFARE AND BENEFITS
Social inclusion and poverty in Scotland
4.6 Around one in six people in Scotland
are living in relative poverty – that is,their income is so far from the normthat they face difficulties
participating effectively in society.
This means that around 840,000
Scots live in poverty, including
200,000 children and 200,000
pensioners.90 Poverty levels in
Scotland are better than the United
Kingdom as a whole, but the United
Kingdom is above the average forother European Union countries forchild and pensioner poverty.91
Inequalities in health, education andemployment opportunities are
passed from one generation toanother: children who grow up inpoverty are more likely to havechildren who suffer from poverty,
repeating the cycle.92
Current position
4.7 Scotland is responsible for anumber of services which influence
employment prospects and life
chances, including education,
training, skills, healthcare andchildcare. However, the majormechanisms for addressing poverty– social security benefits, tax credits,
the minimum wage and employment
support – are reserved to the United
Kingdom Government.

60

4.8 In important areas Scotland cannot
design or deliver policies to address
its social needs. For example,
Scotland cannot determine eligibility
for, nor set the levels of, benefits,
and cannot supplement existing
United Kingdom schemes forparticular social objectives – forexample supporting students orproviding child care – without therecipient risking the loss of existing
United Kingdom benefits or tax
credits. Equally, Scotland cannot opt
out of changes by the United
Kingdom Government which are notappropriate for Scotland, forexample broad market areas for
Housing Benefit not suitable for
Scottish conditions.93 Scotland isalso constrained in developing
devolved policies where there areconnections with the reserved
benefit system, for example local
government taxation. The United
Kingdom Government withdrew
Attendance Allowance from thosereceiving free personal care, adding£30 million a year to the costs borneby the Scottish Government.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Welfare recommendations of theCommission on Scottish Devolution

4.10 The Commission recommended:•

4.9 The Commission concluded that thewelfare system should continue to bereserved, as it ensures common social
citizenship throughout Great Britain,
and the complexity of the social
security system could lead todifficulties in devolving any one
element.

•••

Scottish Ministers, with the agreementof the Scottish Parliament, should be
able to propose amendments to the
Housing Benefit and Council Tax
Benefit systems in Scotland connected
to devolved policy
a formal consultation role should bebuilt into the commissioning process
for welfare to work programmes totake into account the views of theScottish Government
the Deprived Areas Fund should be
devolved to the Scottish Parliament
the United Kingdom Government
should explore devolving thediscretionary elements of the Social
Fund

61

A National Conversation – YOUR SCOTLAND, YOUR VOICE

4.11 These recommendations recognise
the close link between devolved
policies and the reserved benefits
system, and embody an importantprinciple: that the Scottish
Government has a legitimate interestin the development and delivery ofthese policies in Scotland. However,
the recommendations do not give
Scotland a substantive role indecision making. There is no
obligation on the part of the United
Kingdom Government to accept
Scottish proposals, even when thesehave been agreed by the Scottish
Parliament.
4.12 Devolution of the Deprived Areas
Fund would enable Scotland to planand spend in a more integrated andstrategic fashion, but there is nocommitment to a Deprived Areas
Fund beyond 2011. Similarly,
devolving elements of the Social
Fund would present opportunities
to align the funding better with
Scottish priorities.
Full devolution
4.13 Full devolution would allow Scotland
to develop a benefits system guided
by a number of key principles toeradicate poverty and reduce income
inequalities:94•

62

a fair and transparent benefits
system, sympathetic to thechallenges faced by people living inpoverty and providing confidence inthe security of their income

•

•

•

benefits, tax credits and employment
support systems working inharmony to support those who canmove from poverty through work,with financial benefits for working
that are significant and sustainedtransitional support into employment
should be transparent, responsive,
quick and effective, so successful
employment is not undermined byfinancial uncertainty
for those that cannot work, benefits
must provide a standard of living
which supports dignity, freedom andsocial unity

4.14 It would be possible for Scotland todevelop a devolved benefits system
within the United Kingdom. In
Northern Ireland social security,
child support and pensions aredevolved and there is a separate
National Insurance Fund.
4.15 However, for full devolution of thebenefits system, there would need
to be appropriate levels of fiscal
autonomy in Scotland. It would be
difficult for Scotland to takeresponsibility for the levels of andeligibility for benefits without being
responsible for any resulting costs,
or being able to take advantage ofany savings. In turn, this would
require Scotland to have substantial
responsibility for raising its own
taxes and designing a system to meetboth welfare and wider economic
needs.95 This seems unlikely while
the United Kingdom has a one-sizefits-all welfare system.96

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Independence

How do you propose tofund pensions, national
insurance, benefits etc
on independence?
(Haddington National Conversation event, 28 September
2009)

4.16 Independence would give Scotland
responsibility for the taxation andbenefits system. On independence
benefits, tax credits and the statepension would continue to be paid
as now in an independent Scotland.
It would be for future Scottish
administrations to deliver
improvements to the system,
designed for Scottish needs.
4.17 In both 2006/07 and 2007/08, a
smaller percentage of government
revenue was spent on welfare in
Scotland than in the United Kingdom
as a whole: spending on social
protection accounted for 34% of
total government revenue in the
United Kingdom, but 33% in
Scotland, including a geographic
share of North Sea revenues.97
4.18 A range of factors would affect thedesign and delivery of a taxation
and benefits system for an
independent Scotland, including theoverall effect on the economy; thebalance between reasonabletaxation and minimum standardsof care and guarantees of income;incentives to earn and work; and thecost to public finances. These all need
to be balanced with the economic
circumstances and the priorities andneeds of the nation at any given
point. For example, the support thatmight be offered to home owners
during a recession might differ fromthat offered at other times.
4.19 The welfare system of an independent
Scotland could also be guided by the
key principles to eradicate poverty.
For example, a new system ofbenefits would avoid poverty traps,
where little or no financial benefit isgained from employment becausemeans-tested benefits arewithdrawn. Those attending training
courses or doing voluntary work to
improve their employment prospects
would not be penalised by losing
benefits. Reductions in benefits toreflect people’s improved
circumstances would be set to matchpolicy objectives, and integrated withthe overall taxation system.
4.20The welfare system could be
integrated and different forms of
support be made complementary.
For example, free child care or
personal care would not result in theloss of a corresponding cash benefit.
Similar decisions could be made on
payments for a particular purpose –for example to support children
being cared for by relatives – whichcurrently result in the loss of otherpayments to support income.98

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A National Conversation – YOUR SCOTLAND, YOUR VOICE

4.21 An independent Scotland could
develop its own flexible approaches
to social issues, such as preparing
people to return to work, or bringing
together local and national services
to meet the different needs ofdifferent individuals. A one-size-fitsall rule-based system cannot takeaccount of the diversity of
individuals’ wishes and needs. For
example for some lone parents a
voluntary approach to removing
barriers to employment may well
be more appropriate than current
United Kingdom proposals forobligatory skills training whenchildren reach a certain age.
4.22 A key element of the welfare systemis that people are able to understandeasily what benefits they are entitled
to, and how to access the support
available. Greater integration in an
independent system would improve
people’s confidence and theirunderstanding of their entitlement.
This would address the current levelof take up, estimated at 78-88% forincome support; 61-70% for pension
credit; 80-87% for housing benefit;
62-68% for council tax benefit; and52-60% for job-seekers allowance.99

HOUSING AND REGENERATION
Current responsibilities
4.23 Many responsibilities for housing andregeneration policy are devolved,
including funding, land-use planning,
tenancy rights, housing quality,
property law and regulation oflandlords. Significant progress has
been made since devolution,
including homelessness legislation,measures to improve the conditionof housing stock in the social andprivate sectors, and introducing thefirst national mortgage support
scheme for homeowners at risk from
repossession. Scotland’s housing
differs from the rest of the United
Kingdom: there is still less private
housing and a higher proportion ofsocially rented stock; housing has
been more affordable than the
United Kingdom average and the
housing market less volatile;
Scotland’s climate affects approaches
to energy efficiency and fuelpoverty; and there is a different
legal system.

What would the Scottish Government do
to address carers’ problems financially,
were we to have independence?
(Melrose Summer Cabinet, 28 July 2009)64

A National Conversation – YOUR SCOTLAND, YOUR VOICE

4.24 However, important policy
mechanisms such as inheritance tax,
Stamp Duty and social security
system are reserved to the United
Kingdom. The distinctive features of
the Scottish housing landscapemean that an approach which may
be appropriate in other parts of theUnited Kingdom will not necessarily
deliver for Scotland.
Housing recommendations of theCommission on Scottish Devolution
4.25 The Commission recommended:••that Stamp Duty Land Tax should be
devolved to the Scottish Parliament,with a corresponding reduction in
the block grant
Scottish Ministers, with theagreement of the Scottish
Parliament, should have scope topropose new arrangements for

Housing Benefit and Council Tax
Benefit when these are connected
to devolved policy changes
Stamp Duty
4.26 Responsibility for Stamp Duty would
be a useful addition to Scottish
housing and economic policy.
Applying Stamp Duty rates toindividual properties within bulk
purchases could encourage
institutional investment in the private
rented sector. Stamp Duty could be
used to achieve wider objectives suchas incentivising energy efficiency.
Stamp Duty holidays could relievestressed markets. However, if only
limited taxes are devolved, it would
not be possible to adjust other taxes
or borrow to compensate should thebase of those taxes fluctuate, as
Stamp Duty has recently.

65

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Housing benefit

Taxation

4.27 The wide array of social security
benefits and tax credits available
in the United Kingdom areinterdependent. Housing benefit is a
passport to other benefits such as
income support. Changes to any
element of housing benefit are likely
to impact the coherence and thecost of the overall benefits system.
The role recommended for Scotland
may be more apparent than real.

4.29 Scotland has experienced a lack of
housing, particularly affordable
housing. One fiscal mechanism thatmight address this issue in rural
areas is Inheritance Tax. The
beneficiaries of a will often need tosell quickly to pay the InheritanceTax, moving stock from the rental
market and reducing options for
those who cannot or do not want tobuy. This problem affects Scotland
disproportionately because of thehigh proportion of rural areas
compared to the rest of the United
Kingdom. Responsibility forInheritance Tax and other taxes
would allow Scotland to address
this issue.

Independence
4.28 As in other areas, housing andregeneration policy would benefit
most from the increased fiscal andeconomic responsibilities thatindependence - or full devolution would bring to Scotland. Housing,particularly the social rented sector,
also relies heavily on Housing
Benefit to fund initiatives andresponsibility for this would assist
integrated and focused decision
making in Scotland.

66

Funding housing policy
4.30There are two distinct streams of
housing policy being implemented
in Scotland, one set at a United
Kingdom level through the benefits
system and one set at a Scottish
level. For example, the Scottish
Government subsidises the social
housing sector by providing
development grants to build new
low-cost homes for rent. Housing
benefit currently meets about twothirds of the total rents in the sector,or £1 billion a year. Any significant
changes to housing benefit affectboth tenants and the devolved
policy on investment in social
housing in Scotland. As housing
benefit decisions are taken for
the United Kingdom as a whole,
Scotland has little influence on
the overall balance between
these sources of funding.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

With some of the worst housing stock in Europe,and targets that we have committed to in termsof achieving zero-carbon homes by 2016, whatis the Scottish Government’s role in achieving
zero-carbon development?
(Dumfries Summer Cabinet, 29 July 2008)67

A National Conversation – YOUR SCOTLAND, YOUR VOICE

How can the government truly facilitate
an equal, equitable Scotland in which racialequality is maintained?
(Edinburgh CEMVO National Conversation event, 22 April 2009)

EQUAL OPPORTUNITIESCurrent position
4.31 Equal opportunities is largely
reserved to Westminster. There are
two exceptions which enable
Scottish Ministers to:••encourage equal opportunities
place duties on Scottish publicbodies, and cross-border bodies
with responsibility for devolved
matters, requiring them to makearrangements to ensure they areoperating within the law

4.32 Since devolution, Scottish Ministers
have used these responsibilities toadvance equality in Scotland. It has
also been possible to pursue
different policies within the context
of the legal framework. For example,
equality provisions have been
incorporated into Scottish legislation
on housing, education and local
government. The Scottish Parliament
has introduced legislation on hatecrime. The Scottish Government’s
policy on improving community
relations with asylum seekers differsfrom that of the United Kingdom
Government. Scottish Ministers haveplaced a duty on Scottish publicauthorities to report on equal pay.

68

4.33 The Equality and Human Rights
Commission is a United Kingdom
body operating in Scotland with a
Scotland Committee and Scottish
Commissioner. It is a statutory bodywith responsibility for equality andhuman rights, but only reserved
human rights matters in Scotland.
The Scottish Human Rights
Commission has responsibility for
devolved human rights matters.
Equality recommendations of theCommission on Scottish Devolution
4.34 The Commission did not recommend
new arrangements. However, theCommission’s recommendation that
the Scottish and United Kingdom
Parliaments discuss and agreecommon social rights could
potentially include reference toequality.
Full devolution
4.35 Evidence to the Commission
advocated devolution of equal
opportunities, as responsibility for
equality legislation should not be
separate from key devolved policies
such as health, education, housing,family law, mental health, local
government and justice. There areparticular differences in Scotland’s
demographics and geography andits experience of discrimination andinequality, such as sectarianism.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Devolution of equal opportunities
would allow legislation on equality
as it applied to devolved matters.
Equality legislation passed in
Scotland would not apply toreserved matters such as
employment, and consideration
would need to be given to areas
where there are reserved anddevolved responsibilities, suchas transport.
Independence
4.36 Scotland is an increasingly diverse
nation and its people have differingneeds and experiences. Taking
responsibility for equal opportunities
within an independent Scotland
would allow equality legislation to
be promoted and enforced. Equality
legislation would be developed in the
Scottish policy context and to ensure
coherence with legislation in otherareas such as health, education andhousing. In an independent Scotland,
it would be possible to establish
clear lines of accountability, and to
determine distinct mechanisms forsecuring, promotion and enforcementof equal opportunities.
4.37 To follow international best practicein equal opportunities Scotland
would continue current United
Kingdom commitments to European
legislation and a range of International
conventions such as the UN
Convention on the Elimination ofDiscrimination against Women(CEDAW) and the UN Convention
on the Rights of Disabled People.
With independence, Scotland could
implement the requirements of theseconventions taking account of theScottish context.

CONCLUSION
4.38 Under the current devolution
settlement the major tools to
promote a socially just society remain
reserved to the United Kingdom.
While it would be possible todevolve to Scotland responsibility
for aspects of the benefits system,
or a role in United Kingdom policies,
full devolution would require
Scotland to take responsibility for its
finances and its taxation system toensure an integrated approach tothose requiring support. The
recommendations of the Commission
on Scottish Devolution fall far short ofthis level of competence for Scotland.
4.39 With independence Scotland could
address the needs of all in society,combining reliable and transparent
support from benefits with
opportunities for training, support
for housing and child care, andtaxation incentives integrated within
an overall system that did not impose
financial barriers to those returning
to work. Scotland could also ensurethat it took account of the diverse
needs of its population, promoted
equality and addressed the barriers
which prevent people from playing afull role in society, that its mostvulnerable groups, and those
suffering discrimination, received
protection and that international
standards for equality were upheld.

69

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A National Conversation – YOUR SCOTLAND, YOUR VOICECHAPTER 5
A GREENER SCOTLANDOVERVIEW
5.1

Scotland’s natural heritage enhances
the lives of the people of Scotlandand supports tourism, agriculture,
fishing and aquaculture. The first
decade of devolution has seen
legislation on climate change,
improving the environment andtackling flooding. Scotland has
developed an approach to nationalparks, land reform and nature
conservation designed for Scottish
circumstances, and distinct fromapproaches in the rest of the United
Kingdom.

5.2 Scotland could play a leading role inaddressing the challenge of climatechange and meeting European
targets for renewable energy
through its potential in wind, tide
and wave power. Scotland’s
remaining reserves of oil and gas
support an infrastructure andtechnical expertise that could play aleading role in the development of
future low-carbon technologies, aswell as providing capital to invest in
developing renewables technology.

5.3 Major policy areas of energy,transport regulation and waste
remain reserved. Many
environmental, agriculture andfishing matters are the subject ofinternational, particularly European
Union agreement, where Scotland
has no voice outwith the policies of
the United Kingdom Government.
5.4 Further devolution could provide
Scotland with mechanisms todevelop its potential, for example
responsibility for regulation of themarine environment could allow
Scotland to encourage offshore
renewables and carbon capture andstorage technology. However, theneed to work internationally, and thecentral role of the European Union inenvironmental matters, means that
only independence would allow
Scotland to make a full contribution
and make the best use of its
experience and potential.

71

A National Conversation – YOUR SCOTLAND, YOUR VOICEENVIRONMENT, AGRICULTURE
AND FISHERIES
Current position
5.5 Scotland has extensive devolved
responsibilities for its naturalenvironment, natural resources,
fisheries, and rural communities.100
Important areas in which the
Scottish Parliament and the Scottish
Government have exercised these
responsibilities include:
•
•
•
•
•

climate change
marine issues
fisheries and aquaculture
agriculture
waste

5.6 Many environmental issues –including fisheries, agriculture,pollution and climate change –are subject to decisions made ininternational bodies, including theEuropean Union and the United
Nations. The European Union also
provides access to a common
market for Scottish farmers,
fishermen and businesses, as well
as funding opportunities to ruralcommunities, and regulations sothat food is safe to eat.
5.7 The Scottish Parliament andGovernment are responsible for
implementing European Union
decisions within devolved areas,
but Scotland is represented at theEuropean Union as part of theUnited Kingdom. This can lead to72

anomalous situations. For example,
Scotland is among the largest sea
fishing nations in Europe and theScottish fleet is responsible forlanding 66% of the total United
Kingdom volume of fish. Scotland isalso the European Union’s largest
producer of farmed Atlantic salmon
and is a globally significant salmon
producing country in its own right.
The Scottish Parliament andGovernment are already responsible
for both sea fishing and aquaculture.
However, the United Kingdom
Government still takes the lead in
European Union negotiations onthese matters.
Climate change
5.8 The Climate Change (Scotland) Act
2009 is the most ambitious climatechange legislation anywhere in theworld. The Climate Change Delivery
Plan sets out what needs to be done
now and in the medium and longterm to achieve the necessary
emissions reductions. Scotland
cannot deliver its emissions targets
by acting alone. For example,
targets for the European Union
Emissions Trading Scheme, thelargest carbon trading scheme in
the world, are set at European Unionlevel. The main responsibilities forenergy policy and regulation arereserved to the United Kingdom
Government, as are fiscal levers totackle climate change, including
Vehicle Excise Duty, Fuel Duty,and Landfill Tax.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Marine issues

Fisheries

5.9 Responsibilities for Scotland’s
coasts and seas are divided between
Scottish Ministers and the United
Kingdom Government, with different
rules within and beyond 12 nautical
miles. Fishing is fully devolved out
to 200 nautical miles. Regulating oil
and gas and shipping is reserved
even within inshore waters. The
Crown Estate, a reserved body,determines the use of the seabed,and coastguard services are run by
the Maritime and Coastguard
Agency, an executive agency of theUnited Kingdom Government.
Scotland has executive (but notlegislative) responsibility for marine
renewables. Legislative andexecutive competence for marine
nature conservation and installationsat sea are devolved, but only out to
12 nautical miles. Despite recent
agreements the underlying
fragmented nature of responsibilities
does pose a risk to the successful
management of marine issues, forexample supporting the emerging
wind and tidal energy industry in
Scottish waters.101

5.10 The Scottish Government manages
fish stock quotas and the activities of
the Scottish fleet, including numberof days spent at sea, wherever theyfish within European Union limits. It
can also regulate inshore fisheries by
all United Kingdom vessels within
the 12 nautical mile territorial water
limit around Scotland. The
registration of fishing vessels is a
reserved function. Scotland has
been at the forefront of measures tosupport fish stock sustainability
through, for example, theconservation credits scheme.102
However, quota management andlicensing cannot readily be adapted
to Scottish needs as long as they aretied into a one-size-fits-all approachto United Kingdom fisheries
management.

73

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Waste

Marine and nature conservation

5.11 Scottish recycling rates are
increasing, and Scotland has met its
share of the 2010 European Union
Landfill Directive target 18 months
ahead of schedule. However,regulation of the design and content
of packaging is reserved, which
prevents Scotland taking its own
steps to prevent and reduce waste
by designing in reusability andrecyclability.

5.14 The Commission recommended
review of the effectiveness oflegislative agreements between the
United Kingdom and Scottish
Governments on the marine
environment, and that marine nature
conservation should be devolved to
the Scottish Parliament at theearliest opportunity. This would
allow fisheries and marine
conservation to be managed in an
integrated way. However, regulatory
responsibilities would remain
divided for marine planning, mineraldeposits and marine renewables.

Environmental recommendations of theCommission on Scottish Devolution
5.12 The Commission made a number ofrecommendations relating to theenvironment.
Environmental taxation
5.13 The Commission recommended that
Landfill Tax and the Aggregates
Levy are devolved. Landfill Tax is a
tax on the disposal of waste and theAggregates Levy is a tax on thecommercial extraction of rock, sandand gravel. Devolution of thesetaxes would allow Scotland greater
opportunities to design integrated
waste and other environmental
policies, for example by employing
both higher Landfill Tax and landfillbans which are being examined in a
Scotland-led project. However, key
environmental taxes, such as Vehicle
Excise Duty and Fuel Duty, would
remain reserved.

74

Crown Estate
5.15 The Commission recommended that
the United Kingdom Government
should consult Scottish Ministers
and more actively exercise powersof direction under the Crown Estate
Act 1961. The Commission also
proposed that the appointment of a
Scottish Crown Estate Commissioner
should be made following formal
consultation with Scottish Ministers.
These recommendations would offer
Scotland a role in the managementof the seabed by the Crown Estate.
However, the more significant issue– that revenues collected from
Scottish coastal businesses by the
Crown Estate bring very little visible
benefit to Scotland – would remain.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Animal health and welfare

Food labelling5.16 The Commission recommended thatfunding for policy relating toendemic diseases in animals should
be devolved, while responsibility forfunding exotic disease outbreaks
should be retained at a United
Kingdom level. At present, policy on
animal health, including response to
exotic disease outbreaks isdevolved, but the budgets are heldby the United Kingdom Government.
One of the lessons learnt from
Scotland’s response to the foot andmouth disease outbreak in 2007 wasthat the separation of policy
responsibility from financial
responsibility, as recommended by
the Commission, is unsustainable.103
Full devolution of the animal healthbudget would bring responsibility
for that budget and animal welfare
policy in line, and allow devolved
budgets to support improvements
in animal health and welfare in
Scotland, to reduce animal disease
and support increased sustainableeconomic growth of the livestock
farming sector.

5.17 The Commission recommended that
regulations of food content andlabelling should be reserved, whereseparate devolved arrangements
would place a burden on the
manufacturing, distribution andsupply of foodstuffs to consumers.
However, this recommendation
would separate responsibility forfood labelling from devolved
responsibilities for health, nutrition
and food policies. Food labelling in
Scotland is also governed by
European Union legislation andalready reflects the single European
market.

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Full devolution

Would there be scopefor an independent
Scotland to have a
distinct policy on fuelduty that reflects theneeds of a rural
economy? I’m thinking
particularly in
relation to thefarming, haulage andfishing sectors that wehave in the Borders.
(Jedburgh National Conversation Event, 29 April 2009)5.18 Full devolution could bring benefits
to Scotland beyond those envisagedby the Commission.

76

Fisheries
5.19 By agreement, quota management
and vessel licensing arrangements
have been overseen by the four
United Kingdom Fisheries
Administrations acting jointly. As
policy objectives and fleet structures
across the United Kingdom havediverged, the current joint
management arrangements haveconstrained the Scottish
Government’s ability to put in placearrangements tailored to Scottish
circumstances. Greater management
flexibility under full devolution
would allow Scottish Ministers toadapt fisheries management
measures to meet the specific needsof the Scottish industry. Such anarrangement would avoid
disagreements between the Scottish
Government and the United
Kingdom Government on, forexample, quota management.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Rural and environmental taxation

Independence

5.20 The viability of rural areas andthe Scottish Government’s ability
to assist their economic recovery
could benefit from fiscal
autonomy. For example,
Scotland could tailor fuel andvehicle excise duties to takebetter account of Scottish
circumstances, balancing theneed to reduce emissions against
the desire to support rural andremote communities. Specific tax
incentives could be given to
landowners who let whole farms
to new entrants to farming, or
relief from Stamp Duty Land Tax
for new entrants taking up
leases. Such measures could
encourage new farmers andincrease enterprise in agriculture,
food production and land
management in Scotland.

5.21 Independence would allow
Scotland to be a full memberof various internationalorganisations, including theEuropean Union. This would
place Scotland in a stronger
negotiating position on ruraland environmental issues.

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Relationship with the European Union
5.22 Currently the representation of
Scottish interests in the European
Union relies entirely on thepolitical goodwill of the United
Kingdom Government, without
any external check or remedy.
Where there are differences ofview on policy, for example onreform of the Common
Agricultural Policy (see Box 8) or
genetically modified crops or
products, the United Kingdom

78

Government will vote contrary
to Scottish preferences.
Independence would give
Scotland a full voice in Europe.
5.23 Similarly, independence would
offer Scotland, as a leadingfishing nation, the opportunity toargue directly for replacement of
the current Common Fisheries
Policy, through, for example,
promoting repatriation of sea
fisheries management to thecoastal Member States.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

In my view the most cogent argument forindependence for Scotland is the need forseparate representation at the European Union.
(Dundee Summer Cabinet, 30 June 2009)

Climate change
5.24 Scotland is a key player in energy
policy at both United Kingdom
and European Union levels. The
United Nations Framework
Convention on Climate Change(UNFCCC) is the basis on whichinternational agreement on
climate change is negotiated. The
meeting in Copenhagen in
December 2009 aims to deliver a
successor to the UNFCCC Kyoto
Protocol. A new international
agreement would help Scotland
and Europe as a whole deliver

greater emissions reductions.
An independent Scotland would
make its own contribution tosuch international agreements(see Box 9).
5.25 The Scottish Government works
in constructive collaboration with
the United Kingdom Government,
the Welsh Assembly Government
and the Northern Ireland
Executive on climate change. Suchcollaborations could continue andexpand on independence, bothwithin this group, and within theEuropean Union.

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A National Conversation – YOUR SCOTLAND, YOUR VOICEBOX 8: SCOTLAND IN EUROPE – REFORM OF THE COMMONAGRICULTURAL POLICY (CAP)1.

The United Kingdom and Scottish Governments havefundamentally different views on reform of the CAP. The
United Kingdom Government's policy, on which devolved
administrations were not consulted, is that the entire “First
Pillar” of the CAP, which delivers income support for farmers
through the Single Farm Payment and markets interventions
for certain products, should be phased out.104 The Scottish
Government believes that this approach would seriously
jeopardise large parts of Scottish agriculture. About 85% of
Scotland falls under the European Union's category of “LessFavoured” agricultural land, where profitability is bydefinition lower than on better quality land. The proportion of“Less Favoured” land is considerably lower elsewhere in the
United Kingdom.

2.

The United Kingdom Government’s position on the “Second
Pillar” of the CAP also differs from that of the Scottish
Government. The Second Pillar is designed to ensure deliveryof public goods where there is market failure. Whileenvironmental public goods are an important part of theSecond Pillar, the United Kingdom Government position fails totake account of other rural public goods which are importantfor Scotland, including the maintenance of flourishingcommunities in remote areas.

3.

This difficulty is brought into focus in European Union
negotiations, where Scotland’s position can be heard formallyin the Council of Ministers only if it aligns with the United
Kingdom position. This leaves some of Scotland’s mostvulnerable areas at a serious disadvantage. An independent
Scotland would have the same voice as other member states.

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A National Conversation – YOUR SCOTLAND, YOUR VOICEBOX 9: INTERNATIONAL CLIMATE CHANGE NEGOTIATIONS
1.

Scotland’s share of global emissions is small, and Scotland’s
most important contribution at a global level is todemonstrate strong leadership and demonstrate that thepathway to a successful low carbon economy is achievable.

2.

The Scottish Parliament has passed world-leading climatechange legislation, a key illustration of the positive
leadership and contribution Scotland can make to meeting
global challenges. Scotland could be at the centre ofinternational discussions, such as the Copenhagen climatechange summit, supported by Scotland’s environmentalorganisations. However, Scotland’s official attendance atsuch events depends on the agreement of the United
Kingdom Government.

3.

With independence, Scotland would be able to play a fullrole in a subject in which it has much to offer. The experienceof a nation with both oil and gas reserves, significant carbon
capture and storage potential and the ability to develop
substantial renewable energy capacity would add to thevoices on this issue of global concern, to the benefit of thedebate on tackling climate change within Europe andacross the world.

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The result is a hotch potch which…
is inhibiting transport integration in Scotland
and the integration of transport in energy
and climate change policies.
(Scottish Association for Public Transport response to the National Conversation, September 2008)

TRANSPORT
Current position
5.26 The majority of transport functions
are devolved, and distinctive
Scottish policies aim to create awell-connected, safe and reliabletransport system which underpins
business and economic growth.
5.27 A number of transport functions
remain reserved to the United
Kingdom:
•

•

•
•

82

roads: regulation of roads, vehicles
and drivers; national speed limits, andrenewable Transport Fuels Obligation
rail: Great Britain-wide rail network
issues, standards and regulation
frameworks, representation ofpassenger interests and complaints,
and cross-border franchises
marine: marine policy, regulationand security
air: economic, security and safety
regulation, international
representation

5.28 The experience of enhanced rail
devolution (see Box 10) demonstrates
the opportunities of devolving
responsibility for transport policy,
and focussing on Scottish needs.
Transport recommendations of theCommission on Scottish Devolution
5.29 The Commission makes only one
recommendation affecting transport
in Scotland. Among its
recommendations on taxation(discussed in more detail atparagraphs 3.22 – 3.28), theCommission proposed that Air
Passenger Duty (APD) should be
devolved to the Scottish Parliament.
Devolved APD could be reduced,
providing an incentive for airlines toexpand direct connections to
Scotland, benefitting the Scottish
economy and reducing air travel
connections within the United
Kingdom. This is an example of thescope to use fiscal policy toencourage economic activity, andthe principle of the Commission’s
recommendation could bring
benefits in other areas of taxation.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Independence
5.30 Independence - or full devolution would offer allow Scotland tointegrate fully all transport policies
and initiatives.105 Scotland would also
have responsibility for the overallpublic financial framework, which
could benefit transport throughborrowing and taxation policies.
Borrowing
5.31 Greater borrowing autonomy for the
Scottish Government would allow
more flexibility in the pace andpriorities of Scotland’s capital
expenditure programme, andprovide an alternative source offinancing for major infrastructure
projects when required. For
example, phasing the funding of the
new Forth crossing would allow
existing capital budgets to takeforward more projects at the sametime as bridge construction.

5.33 With responsibility for fuel duty,
Scotland could press the European
Union for a derogation to apply alower rate of fuel duty in rural areas,
recognising accessibility and pricedisadvantages faced by Scotland’s
remote and island communities. The
French government has introduced
a lower rate of duty in Corsica undera similar system. The United
Kingdom Government has not
pursued such a policy for Scotland
although the Commission on
Scottish Devolution acknowledged
the case for the Scottish and United
Kingdom Governments ‘to pursue aderogation limited to the outlying
parts of the Highlands and Islands’.106
5.34 Responsibility for fuel duty would
also enable the Scottish Government
to respond to the pressures faced by
Scottish businesses due to Scotland’sgeographic position.

Transport taxes
5.32 Other taxes directly linked totransport could be devolved,
beyond the APD recommended by
the Commission on Scottish
Devolution. Fuel duty, APD andvehicle excise duty accounted forjust 5% of Scottish tax revenue in
2007/08, but they are important
policy instruments to influence
behaviour and achieve economic
objectives.

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A National Conversation – YOUR SCOTLAND, YOUR VOICE

BOX 10: DEVOLUTION OF RAIL SERVICES
1.

Until the Railways Act 2005 rail investment was decided at United
Kingdom level, and Scottish projects competed for funding in a
United Kingdom Government hierarchy. Since 2006 devolved
responsibility for investment decisions has allowed the Scottish
Government to target investment in the Scottish rail network to meet
Scottish objectives, from improving connectivity to meeting climatechange targets.

2.

For example, in July 2007 the Scottish Government specified onbehalf of Scottish rail passengers and freight users industry
deliverables to secure the most positive outcomes for Scotland.
Different priorities from the United Kingdom included a focus on
faster journey times to benefit business, resulting in substantial
planned investment in the Glasgow to Edinburgh line and fromInverness and Aberdeen to the central belt.

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Nuclear, tidal, wind, clean-coal are, in varying proportions, ingredientsfor energy. The Scottish Government is against nuclear energy, so is there
any confident assurance that other remaining sources are adequate tomeet present and future demands, and within reasonable timescales?
(Melrose Summer Cabinet, 28 July 2009)

ENERGY
Objectives of energy policy
5.35 Energy policy encompasses bothsupply of energy, and developing
the energy sector in Scotland’s
economy, including renewableenergy and climate change targets.
5.36 The Climate Change (Scotland) Act
2009 introduced a statutory target
to reduce emissions in Scotland by
42% by 2020. 50% of Scottish
electricity consumption should comefrom renewable sources by 2020,
with 31% by 2011, and, in line with
European Union-wide targets, 20%of all energy use should come fromrenewable sources by 2020.
5.37 Scotland has a competitive
advantage in energy: natural andgeographic opportunities in wind
and wave and tidal generation; andestablished expertise in the oil andgas and power generation industries.
Scotland is estimated to have 25% ofEurope’s offshore wind resource,
10% of Europe’s wave resource and
25% of its tidal resource, which
would make a significant
contribution to a low carbon future
for Scotland and Europe. Energy will
be a key sector in Scotland’s
sustainable economic growth overthe next 30 years and beyond.
Current position
5.38 The major policy responsibilities forenergy are reserved, including theregulation of energy markets,regulation and taxation of the oiland gas sector and the promotion of
Scottish interests at European Unionlevel. Grid access is also reserved,
and the current grid charging system
works against the development ofclean, renewable energy in Scotland.
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A National Conversation – YOUR SCOTLAND, YOUR VOICE

5.39 Scottish responsibilities in relation toenergy are limited to the promotionof renewable energy and energy
efficiency.107 Through the planningsystem, the Scottish Government
can also influence decisions relating
to investment and the energy mix.
Energy recommendations of theCommission on Scottish Devolution
5.40The Commission did not recommend
any improvements to the current
responsibilities for energy, either toencourage development of Scotland’s
renewables or to maximise thebenefits of oil and gas to Scotland.

Other Energy Matters5.42 The Commission consideredelectricity generation and supply
issues and made no recommendationsin this area. On transmission
charging, the Commission notedthat this was an issue for many of
those who gave evidence, but did
not consider the subject was within
its remit.
Full devolution
5.43 There are a number of areas of energy
policy which could be devolved,
despite the conclusions of theCommission on Scottish Devolution.

Oil and Gas
Renewables
5.41 The Commission established an
Independent Expert Group to
examine the issue of North Sea
taxation and revenue. This reported
that there would be economic
opportunities from devolving
responsibility for North Sea taxation,although there could also bechallenges.108 The Expert Group also
identified the benefits of a Scottish
oil fund. However, the Commission
itself concluded that oil and gas
revenues should remain reserved
and did not recommend a Scottish
oil fund.

86

5.44 The Scottish renewables target
requires the right infrastructure,including harbours, test facilities, heat
networks and upgrades to the grid.
These require co-operative working
across the public and private
sectors, and major investment. The
Fossil Fuel Levy fund is collected in
Scotland to promote renewableenergy, and currently stands at£174 million. A decision by theUnited Kingdom Government meansthat this fund cannot be invested inrenewables without a corresponding
reduction on the Scottish block
grant. A devolved Fossil Fuel Levy
fund could be invested to encourage
the renewable energy sector in
Scotland, helping to meet renewables
targets in Scotland and across theUnited Kingdom.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Carbon Capture and Storage

Oil and gas taxation

5.45 Carbon Capture and Storage (CSS)
is a technology in which Scotland
has a number of significant
advantages including academic
expertise, considerable offshore
storage capacity and the potential
to utilise the skills and infrastructureof our existing oil and gas andpower engineering sectors. There
are a number of outstanding
potential CCS projects which could
be developed in Scotland. Giving
greater powers to Scotland, such as
ensuring that funding raised fromthe proposed United Kingdom
Government levy on generation tofund CCS projects is allocateddirectly to Scotland, would provide
an opportunity to assist thedevelopment of such projects andensure that Scotland can be seen as
a leader in the development of thisemerging sector. In addition, CCS iscurrently regulated by a number ofbodies including Scottish Ministers,
the United Kingdom Government,
and the Crown Estate. Devolving all
offshore licensing, including oil andgas licensing, to Scotland would
create a seamless regulatory
framework for low carbon-basedenergy activity in the Scottish
offshore area.

5.46 Oil and gas remain an importantsector in the Scottish economy.
With further devolution the Scottish
government could encourage
development in a number of key
areas:•
improving depletion rates andpromoting enhanced oil recovery•
worldwide marketing of Scottish
oil services expertise•sustainable use and decommissioningof the oil and gas infrastructure(including for CCS)•
encouraging diversification of skills
from the sector into low carbon
opportunities such as CCS andmarine renewables•
better use of fiscal revenues,
including a sovereign wealth fund5.47 The taxation regime is an importantfactor in maximising investment andproduction in the sector. The current
taxation regime is made up of threeparts: petroleum revenue tax:
charged at 50% on profits fromfields approved before March 1993
(when the tax was abolished for new
fields); corporation tax: now
charged at an effective rate of 50%;and license fees paid by operators
to the United Kingdom Government
to explore and extract oil and gas
from specified areas.

As energy security issues climb to the topof the geopolitical security agenda, howwill this impact on Scotland’s energy
security in the coming decade?
(Dumfries Summer Cabinet, 29 July 2008)87

A National Conversation – YOUR SCOTLAND, YOUR VOICE

5.48 It is in Scotland’s interests to develop
an oil and gas taxation regime thatbalances revenues, environmental
objectives on decommissioning andre-use of the infrastructure, andincentives for continued development
and exploration in the North Sea.
Remaining reserves may have awholesale value of between£650 billion and £1.1 trillion. Full
devolution of the North Sea tax
regime would allow the Scottish
Government to work with industry
to develop a fiscal regime that met
these objectives and ensured an
appropriate level of taxation on avaluable and non-renewable resource.
Independence
5.49 Independence would give Scotland
the advantages of full devolution andbring responsibility for important
areas such as energy regulation andengagement with the European
Union.
Energy regulation
5.50 Under independence, energy market
regulation would address Scotland’s
specific needs in transmission ofenergy, encouraging renewables andenergy efficiency, promoting tradewith the rest of the United Kingdom
and further afield within European
Union rules. The Commission on
Scottish Devolution considered theissue of electricity supply andconcluded the current model of a88

United Kingdom-wide market was thebest way ahead to ensure security ofsupply and allow consumers accessto a competitive and modern energy
market, as well as ensuring thatobligations and targets are met.
However, there are a number ofexamples where independent
countries can operate a common
electricity transmission anddistribution system, such as thepooling arrangements that exist
between a number of Nordic
countries.109 A single electricity
market now exists between the
Republic of Ireland and Northern
Ireland, demonstrating thatagreements and co-operation
between individual countries onenergy market regulation is possible.
5.51 Under the current United Kingdom
system, there are higher charges
for connection and use of the United
Kingdom electricity grid forgenerators furthest from the main
United Kingdom centres of demand,favouring generation in the southof England. Scottish generators
produce 12% of United Kingdom
generation, but account for 40%of the transmission costs, or about£100 million per year more thantheir proportionate share. This is a
reserved matter, and Scotland
cannot reform this regime eventhough it discriminates against
Scottish generators and acts against
the delivery of renewable energy
targets. With independence Scotland

A National Conversation – YOUR SCOTLAND, YOUR VOICE

would have its own voice in any
wider pooling structures to ensurethat its interests were promoted.
Engagement with Europe
5.52 Scotland has a major contribution
to make to European Union andinternational energy policy. Scotland
is in a unique position with its
extensive experience of the oil andgas industry and its significant
potential to develop renewable andcarbon capture technology.
Scotland will play an important rolein meeting Europe’s energy security
and climate change needs in thedecades ahead. Scotland has also
made innovative proposals for the
future of the energy sector in
Europe, for example on a supergrid
across Europe centred on the NorthSea.
5.53 The Scottish Government has
already made substantial progressin recent years in engaging actively
with Europe on energy issues andhas made energy a long-term
priority for European engagement.110
Experience on low carbon energy
research and development showthat an active role for Scotland
strengthens the United Kingdom’s
energy objectives within theEuropean Union. However, only
under independence could Scotland
play a full part in European Union
energy policy.

CONCLUSION
5.54 Scotland has a rich natural heritage,
which, along with energy production,
plays an important role in theeconomy. Much of the policy that
affects its environment, agriculture
and fisheries comes from theEuropean Union and is therefore
effectively reserved to the United
Kingdom. Energy policy is also
reserved, as is much regulationof transport.
5.55 It would be possible to devolve
further responsibility to Scotland forsome of these matters, for example
particularly taxes on waste andtransport. However, the challenges ofclimate change, energy supply andfood security mean that internationalorganisations, especially theEuropean Union, are likely to continue
to develop as the most important
forums for decision making on
environmental and energy mattersin the future. Only independence
would give Scotland a full voice inthese international discussions, andallow its expertise and potential tobe represented properly.

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A National Conversation – YOUR SCOTLAND, YOUR VOICE90A National Conversation – YOUR SCOTLAND, YOUR VOICECHAPTER 6A HEALTHIER AND
SMARTER SCOTLANDOVERVIEW
6.1

Scotland has a long history of
distinctive education, children’s
services and health systems within
the United Kingdom. Devolution has
shown the potential that greater
autonomy gives Scotland to bring
improvements to these systems,
while preserving their traditionalfeatures. Free personal care for theelderly and the ban on smoking inpublic places have been landmark
achievements of the Scottish
Parliament. Scotland’s health service
has maintained its integrated
structure while reducing waitingtimes, and public health legislation
has been modernised. In education,
the Curriculum for Excellence hasmodernised the schools system,
while legislation has given greaterrights to those requiring particularsupport for learning.

6.2 Independence would allow healthand education to build on theachievements of devolution,
integrating the support offeredwith important reserved matters,
particularly the benefit and taxation

system, and contributing to tacklingwider issues of poverty, ill healthand economic inactivity in Scottish
society.
HEALTH
Current responsibilities
6.3 From its inception, and in particularsince devolution, the NHS in
Scotland has been largely
independent from the rest of theUnited Kingdom, and shaped bydifferent patterns of need andgeography. Such differences havedefined the provision of free healthcare in Scotland, and the NHS in
Scotland today is markedly different
from that in England and Wales.
Scotland has a long-standing
integrated healthcare system.
General Practitioners refer patientsto a treatment centre within theirown Board area or elsewhere if therequired service is not provided
locally. There is no competition, orinternal market, operating across the
NHS in Scotland.

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A National Conversation – YOUR SCOTLAND, YOUR VOICE

6.4 Responsibility for the provision ofhealth care is almost entirely
devolved and there have beensignificant achievements over thelast ten years: a reduction in waitingtimes through more efficient ways ofworking; better workforce planning;
more investment in new diagnostic
equipment; the development of thesingle patient record. Prescription
charges are being phased out toensure that all patients have accessto the prescriptions they require.
Public health legislation has beenmodernised through the Public
Health etc. (Scotland) Act 2008.
Scotland led in the United Kingdom
with legislation to ban smoking inpublic places.
6.5 The NHS in Scotland contributes
directly to other policy objectives:
growth in the Scottish economy
through investment in medical andlife sciences technology, andcontinuous improvement in its
healthcare services; developing ahighly skilled workforce withincreasing productivity levels; andimproving the health and wellbeingof the working age population.
6.6 Relatively few areas related tohealth are reserved. Those which
are include: regulation of the main
health professions; misuse of drugs;
medicines, medical supplies andpoisons; embryology, surrogacy
and genetics; and abortion.111

92

Health recommendations of theCommission on Scottish Devolution
6.7 The Commission made one
recommendation directly affecting
health matters: that regulation of allhealth professions should bereserved. The Scotland Act reservesto the United Kingdom regulation ofhealth professions which existed
when the Act was passed.
Regulation of any new healthprofession has been devolved. If theregulation of all professions wasreserved there would be no
guarantee that the differences in
Scotland’s health structures andsystems would be taken into
account, as there would be nostatutory imperative for the United
Kingdom Government to seek
agreement to its regulatory regimes.

What further steps
are planned to develop
our Health Service asa public service inwhich healthcare
workers United
Kingdom-wide would
be proud to work?
(Paisley National Conversation event, 14 September 2009)

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Full devolution
6.8 Scotland already has responsibility
to provide health care responsive
and relevant to the needs of people
in Scotland, and free at the point ofdelivery. However, Scotland does
not have responsibility in areas that
could be used to help reduce thenegative health effects of smoking
and alcohol misuse. For example,
alcohol misuse is one of the mostserious health problems facing
Scotland, and it also has significant
social and economic consequences.
Responsibility for some key
mechanisms to address this issue –such as taxation levels on alcoholand the advertising of alcohol –remains reserved to the United
Kingdom.
Independence
6.9 With devolution Scotland has
demonstrated its innovative
approach to public health and to thedelivery of healthcare. Scotland has
maintained a high quality service
based on a traditional national model,
and avoiding market led innovations
that have been introduced
elsewhere in the NHS. Independence
would ensure that Scotland had full
responsibility for the entirety of its
health system, including the few
health policy areas reserved to theUnited Kingdom, and, wider policy
areas which could support healthpolicies in the economic and social
fields.

6.10 Under independence, cross-border cooperation in health could be enhanced.
In some areas, co-operation has arisenout of necessity, requiring a sharing ofscarce resources or consistency ofapproach to complex issues; in others,
it has arisen because of the benefits
co-operation has brought for both thepeople of Scotland, and the rest of theUnited Kingdom.
6.11 The allocation of organs for donationand transplantation is carried out on a
United Kingdom-basis, which ensures
the best match between donor andrecipient can be achieved. This
arrangement could be maintained in
an independent Scotland to ensure
equal access for every citizen in the
United Kingdom who requires atransplant. Likewise, there are United
Kingdom-wide arrangements for thecommissioning of specialist healthservices for conditions or treatmentsthat are so rare or specialised that no
single United Kingdom country could
sustain them alone. Similar
agreements exist on a European
Union basis. These arrangements aremanaged onbehalf of Scotlandby the National
Services Divisionof NHS National
Services Scotland,
to ensure that thepeople of Scotland
have access tosuch rare andspecialised
services when theyneed them.

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BOX 11: FREE PERSONAL CARE112
1.

94

Free Personal and Nursing Care has
been one of the most high-profile
Scottish policies since devolution.
Over 50,000 vulnerable older
people in Scotland are currently
receiving assistance through thescheme. Around 42,000 people are
now receiving personal care services
at home at no charge allowing themto remain in their own homes andlive independently for longer. 9,600
self-funders in care homes arereceiving a weekly payment of £153
towards their personal care andaround 6,100 of these self-funders
are also receiving £69 per week
towards their nursing care costs. Thebalance has shifted from residential
care to supporting people in theirown homes for long as possible.

2.

The implementation of free personalcare illustrated a difficulty of
implementing devolved policy whichinteracts with the reserved benefits
system. The United Kingdom
Government withdrew Attendance
Allowance from those people in carehomes receiving free personal care.
The Scottish Government had toensure that these individuals are notdisadvantaged financially as a resultat a cost of £30 million a year.

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BOX 12: SMOKING BAN
1.

On 26 March 2006, Scotland
became the first part of the United
Kingdom to introduce comprehensive
legislation to ban smoking in
enclosed public places. The
legislation has been hailed not only
as the most important piece of
public health legislation since theintroduction of the NHS but as adefining moment in devolution. It
is widely acknowledged that theleadership shown by the Scottish
Parliament encouraged smoking banselsewhere in the United Kingdom.

2.

The legislation was preceded by an
innovative work programme to raiseawareness of the health risks ofpassive smoking, research current
smoking policies, gather international
evidence about the health andeconomic impact of smoking bans,and to test public opinion by a major
public consultation through anumber of routes. This provided a
wealth of evidence, including of
public support, on which to basethe ban.

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A National Conversation – YOUR SCOTLAND, YOUR VOICEEDUCATION AND CHILDREN

been taken to strengthen the rightsof parents and young people withadditional support needs, andplanned provisions will update andstrengthen the consultation
practices and procedures for
proposals that affect education
services, such as the closure ofschools.

Current responsibilities
6.12 Scotland has long had its own
education system, with a distinctive
curriculum framework, qualifications
and examination system, andcompulsory periods of education.
The quality of Scotland’s Universities
is recognised internationally (seeBox 6). Scotland has its own
systems of pre-school education,
childcare, children’s services, achildren’s hearings system, social
work and youth work. With
devolution in 1999, the Scottish
Parliament gained legislative
responsibility for this education
system.
6.13 Successive Scottish Governments
have used devolved responsibilities
to improve the Scottish education
system, including the Curriculum for
Excellence, the biggest reform of
the Scottish education system for ageneration. Legislative action has

6.14 However, the current constitutional
settlement places limits on theaction that can be taken in Scotland
to improve the lives of children andyoung people. In particular, thebenefits and tax credits system is
not responsive to Scotland’s specificneeds and is organised on a United
Kingdom-wide basis.
Children recommendations of theCommission on Scottish Devolution
6.15 The Commission made only one
recommendation concerning
children services: that in dealing
with the children of asylum seekers,
the relevant United Kingdom

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A National Conversation – YOUR SCOTLAND, YOUR VOICE

authorities must recognise thestatutory responsibilities of Scottish
authorities for the well-being ofchildren in Scotland.
6.16 This recommendation reflects recent
practice. Scottish and United
Kingdom Governments have regular
discussions about statutory duties topromote the well-being of children
seeking asylum in Scotland. Since
January 2009 all United Kingdom
Borders Agency staff andcontractors have been operating
under a statutory Code of Practice
to keep children safe from harm, andwill be subject to a new statutory
duty from the autumn to safeguard
and promote the welfare of children.
When children are detained at
Dungavel, an agreement exists
between the Borders Agency andthe local authority to ensure thatchildren are given the help andsupport they need, though the
Scottish Government remains
opposed to any such detention ofchildren.

spending) is devolved to the
Scottish Government. Parents findthis split of responsibilities confusing
and there is widespread criticism of
the way the tax credit system works.
If the Scottish Government had
responsibility for supply anddemand side funding for childcare it
could construct progressive support
for the costs of childcare, which issimple and accessible for parents.
CONCLUSION
6.18 The achievements in health andeducation since devolution
demonstrate the potential for
Scotland to flourish when it has full
responsibility and can develop andimplement policies to meetparticular Scottish priorities andneeds. Independence would allow
Scotland to bring a similar approach
to all areas of government activity,
as well as integrating existing healthand education services in wider
mechanisms to support and develop
the people of Scotland.

Independence
6.17 Independence - or full devolution would allow children’s services to be
integrated with support through thetax credit and benefits system. For
example, support with the costs ofchildcare (demand-side funding) isreserved to the United Kingdom
Government and is funded throughthe tax credit system, whilechildcare provision (support-side

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A National Conversation – YOUR SCOTLAND, YOUR VOICE98A National Conversation – YOUR SCOTLAND, YOUR VOICECHAPTER 7
A SAFER SCOTLANDOVERVIEW
7.1

Scotland requires a legal system that
supports a safe and just society, andtackles societal issues like drug andalcohol misuse and violence,
including domestic and sexual
violence. Human rights, liberties andequalities should underpin Scottish
society, ensuring justice andtolerance for everyone, andprotecting the rights of citizens
against the state, and reflecting andprotecting the diversity of society,tackling issues of sectarianism anddiscrimination.

7.3 The Commission on Scottish
Devolution recognised that the
principle of devolution would place
responsibility for these matters in
Scotland, but only followed thisargument to its conclusion in theirrecommendations on airguns, drink
driving limits and speed limits. Thereis a separate criminal jurisdiction in
Scotland, and responsibility for thewhole body of criminal law could
now be devolved to the Scottish
Parliament as the legislature forthat jurisdiction.

7.2 Scotland has a proud legal tradition,
securing the basic rights of thecitizen within an effective justicesystem. Much of this system has
been devolved, but important areas
remain reserved: laws to tackle
drugs, firearms and terrorism; thelegal machinery for safeguarding
the human rights of Scottish
citizens; and important parts of
the judicial system: aspects of theUnited Kingdom Supreme Court
and many tribunals.

7.4 Independence would give Scotland
full responsibility for its court
system, its approach to international
obligations of law and rights, andallow Scotland to protect the humanrights of its citizens, guaranteeing
their position within and against
the state.

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A National Conversation – YOUR SCOTLAND, YOUR VOICECRIMINAL AND CIVIL JUSTICE
Current position
7.5 The Scottish legal system has long
been distinct from that in the rest of
the United Kingdom. Its integrity andindependence were secured in theActs of Union, and administrative
responsibility for running the justicesystem remained in Scotland.
Devolution also gave Scotland
legislative responsibility. The
Scottish justice system has its own
court system; different professional
legal bodies (the Law Society of
Scotland and the Faculty of
Advocates); its own legislation; its
own police forces; its own
independent prosecution, headed by
the Lord Advocate; its own prisonand criminal justice social work
services.
7.6 Scotland has used its devolved
responsibilities to tackle a range oflong-term societal problems, and toreform the system itself. These
initiatives demonstrate the principleof devolution: problems which areendemic to Scotland are tackled in
Scotland, by a coherent legislative,
policy and judicial framework to
tackle offenders, and reduce
offences.

7.7 Although the justice system in
Scotland is largely devolved, there
are several important areas which
are reserved to the United Kingdom:
terrorism, legal safeguards forhuman rights, drugs, firearms,
alcohol taxation, drink-driving limits,and some jurisdictions of the United
Kingdom Supreme Court. If theScottish Parliament were responsible
for these areas there would be amore fully integrated justice system,with no gaps in the administration ofjustice in Scotland.
Justice recommendations of theCommission on Scottish Devolution
7.8 The Commission recommended that
Scotland should be responsible for:
•
•

•
•

How is this governmlaenntd
going to make Scote in?
safe for us to liv
09)

1 June 20l Conversation event,(Kilmarnock Nationa

100

the regulation of airguns
licensing and control of controlled
substances for the treatment ofaddiction
drink-driving limits
the national speed limit in Scotland113

A National Conversation – YOUR SCOTLAND, YOUR VOICE

7.9 Several of the Commission’s
recommendations reflect long-heldviews of the Scottish Parliament. For
example, the Scottish Parliament has
called for a lower drink-driving limit:
legislative responsibility would allow
the Scottish Government’s Road
Safety Framework to be taken
forward.114 The Scottish Parliament
has also called repeatedly for
responsibility for the regulation of
airguns, which are a particular
problem in Scotland, accounting forhalf of all firearm offences in
2007/08.
7.10 There would remain limitations in theareas affected by the Commission’s
proposals. The Scottish Parliament
could make laws on airguns, but not
on other firearms. It would not beable to set differential drink-driving
limits for certain groups of drivers,
such as young drivers or commercial
drivers. It would be able to set anational speed limit in Scotland, butwould be unable to set related
penalties.

Independence
7.11 A comprehensive justice system thattackles societal problems is essential
for any nation. Despite the strengthsof the Scottish criminal justicesystem, gaps and anomalies remain,
preventing the full integration of law
and accountability. There is no reason
why all aspects of the legal systemshould not be fully devolved to
Scotland, given its existence as a
distinct and independent jurisdiction,
but such a decision is dependent on
the United Kingdom. Independence
would ensure that full responsibility
for justice matters rested within
Scotland.
Drugs legislation
7.12 Much of drugs policy is alreadydevolved, including the national drugs
strategy, funding arrangements for
drug treatment services and theorganisation of delivery structures.
However, classification of drugs andregulation of offences and penalties
is reserved, as are the statutoryfunctions of the Advisory
Committee on the Misuse of Drugs,
which reviews the classification ofdrugs and advises Ministers.

How does the government intend to increase
the service of help in rehabilitation to young
people who have alcohol/drug dependency
and are involved in criminal activity, tobring them back into society?
(Melrose Summer Cabinet, 28 July 2009)101

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Firearms legislation

JUDICIARY AND THE COURTS

7.13 Responsibility for all firearms
legislation would allow the firearms
regime to be made consistent, easierto understand and easier to enforce.
The Scottish Parliament would bebetter able to protect communities
from illegal or irresponsible use of
firearms, as it has with knives andother offensive weapons. A coherent
firearms policy for Scotland would
make it easier for legitimate firearms
users to go about their activities,
supporting the economic contributionof shooting sports and relatedindustries. The risk of cross-border
traffic in illegal firearms can beaddressed in the same way as it has
been for differences in the law onknife licensing and alcohol sales.

Current position
7.14 The Acts of Union guaranteed
continued autonomy for Scotland’s
legal system. Scots Law, and theprincipal institutions administering it,
have remained separate and distinct
for the last 300 years. The principal
effect of devolution was to give the
new Scottish Parliament
responsibility for maintaining a large
proportion of the statute law (Actsof Parliament) which the Courts
implement. The major reserved
matters are some jurisdictions of the
new United Kingdom Supreme Court
and many reserved tribunals under
the auspices of the new United
Kingdom Tribunals service.
7.15 The Supreme Court was establishedin October 2009 and its judges areappointed on the recommendationof the Prime Minister. It sits as a
Scottish Court to hear appeals fromcivil cases arising in Scotland, andalso hears criminal cases where
human rights are at issue, althoughmost final appeals relating tocriminal cases continue to be heard
by Scottish courts. This split in the
final jurisdiction on criminal mattersrisks inconsistency and confusion.
The Supreme Court is required toinclude judges from each United
Kingdom jurisdiction, but a clear
majority of its judges are from102

A National Conversation – YOUR SCOTLAND, YOUR VOICE

England and Wales. It is not clear if
Full devolution
the new arrangements will safeguard
7.19 Full devolution would allow thethe continued distinctiveness ofconcerns found by the Commission
Scotland's legal system or theon Scottish Devolution to becoherence of Scots law as a bodyaddressed. In particular, the Supremeof law.
Court could have a Scottish
7.16 The United Kingdom Tribunal
Chamber, with a majority of judges
Service was created in 2008. Certain
expert in Scots law and practice,tribunals it administers sit inwhich was the responsibility of the
Scotland as British institutions,
Scottish Parliament. Such a Chamber
handling cases that would otherwise
could be properly integrated into thebe heard by the Scottish Courts. The
Scottish legal system, addressing thecreation of the UK Tribunal Service
concerns about splits in the criminal
was intended to rationalise thelaw. Devolution of all tribunals would
system in England and Wales butallow a Scottish tribunal service tohas in some cases added a further
be established, integrated into thelayer to the framework for
Scottish court system and ensuringadministrative justice in Scotland.
greater efficiency. Full devolution
would also allow Scotland to
7.17 Other reserved judicial mattersintroduce rational criteria, consistently
include the remuneration
applied, to the allocation ofarrangements for senior judges andjurisdiction between the courts andthe appointment of Scotland’s mosttribunals.
senior judges are still made on therecommendation of the Prime
Independence
Minister, on the nomination of the
7.20 The judicial branch is one of threeFirst Minister.
pillars of government in most states.
An independent Scotland would
Courts recommendations of thecontinue its tradition of a robust
Commission on Scottish Devolution
judiciary holding the executive and7.18 The Commission considered theParliament to the law, as well ascomplexity of the tribunal system inadministering and dispensing
Scotland, and the development of acriminal and civil justice in the normal
split in the criminal law. On bothway. Scotland would need to consider
matters, it found evidence of
the architecture of the court system,
concern, but the Commission
in particular whether there was aconcluded both to be beyond its
need for a Scottish Supreme Court
remit and made no recommendations.115
on the United Kingdom model, or

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A National Conversation – YOUR SCOTLAND, YOUR VOICE

7.21 The Scottish legal system would
continue its traditional openness tothe positive influence of otherjurisdictions, particularly the Courtsof European institutions. The
principal difference would be that
Scotland’s legal system would
decide how to use these external
influences, including the richjurisprudence of the rest of theUnited Kingdom and theCommonwealth, rather than havingsome crucial decisions made by
judges from other jurisdictions.

7.23 These statutes are reserved. The
United Kingdom Parliament stillclaims competence to legislate inways which are incompatible with
the European Convention on Human
Rights and the human rights of
Scottish citizens can therefore be
encroached upon by Westminster
without reference to the Scottish
Parliament and Government. Greater
protection has been given to thehuman rights of Scottish citizens insome devolved areas than has been
the case in England and Wales, forexample on the retention of
fingerprints and DNA samples.
However, the Scottish Parliamentand Government cannot protect
against threats to those rights if thematter is reserved, for example theintroduction of identity cards.

HUMAN RIGHTS ANDRESPONSIBILITIESHuman rights recommendations of theCommission on Scottish Devolution

Current position

7.24 The Commission did not consider
the wider issue of human rights,
their place in the governance of
Scotland, and the responsibility of
the Scottish Parliament to protect
the human rights of its citizens fromlegislation in the United Kingdom
Parliament.

whether existing Scottish court
structures would suffice. However
the functions of a supreme court ininterpreting the legal aspects of theconstitution would remain thefunction of the Scottish judiciary.

7.22 The Human Rights Act 1998
incorporated the European
Convention on Human Rights into
United Kingdom domestic law byrequiring public authorities to act inaccordance with the Convention
rights. The Scotland Act provides
that Scottish Ministers cannot act
incompatibly with any of thoserights and that the Scottish
Parliament cannot legislate
incompatibly with those rights.

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Independence

CONCLUSION

7.25 With independence, Scotland
could properly entrench the humanrights of Scottish citizens in theconstitutional framework of thenation. This approach would reflect
international best practice, and theinternational commitments Scotland
has undertaken as part of the United
Kingdom. Instead of regarding
human rights as a burden on thegovernment, an independent
Scotland could take a positive
approach to the place of rights in
its political and legal system,
guaranteeing the position of theindividual against the state.

7.27 Scotland’s legal system has long
been a distinctive feature of thenation. Devolution has provided theopportunity to update andmodernise some of its features, anddirect the system to addressing
societal problems that has faced
Scotland. However, some of themost important of these – drugs,
firearms, aspects of alcohol policy –remain reserved.

7.26 As an independent state, Scotland
would generally inherit current
international obligations, and it
would be for the Government andParliament to consider how thesewere taken forward in the future,including, for example, the domestic
protection of the rights under thejurisdiction of the European Court of
Human Rights. Independence would
also give Scotland the ability tochoose how to implement
international obligations in areas
which are currently reserved in away sympathetic to local legal
traditions, and national concerns.

7.28 The recommendations of theCommission on Scottish Devolution
would provide some further
responsibilities to Scotland, but notin these central areas. The principleof devolution should apply to thejustice system as a whole, and givefull responsibility to the Scottish
Parliament as the law making bodyfor this jurisdiction.
7.29 Independence would also give
Scotland responsibility for its whole
judicial system; and for the frameworkof fundamental rights for its citizens.

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A National Conversation – YOUR SCOTLAND, YOUR VOICE106A National Conversation – YOUR SCOTLAND, YOUR VOICECHAPTER 8
A STRONGER SCOTLANDOVERVIEW
8.1

A defining feature of an
independent state is its voiceon the world stage: in a wider
international organisation, such as
the European Union or the United
Nations; or in bilateral discussions
with other nations, neighbours
and trading partners. Influencing
others, representing the views andinterests of its people, is a key aimof governments across the worldin this global and interdependentage.

8.2 Scotland’s international relations
have three principal dimensions:•••relations with the European Union
relations with the wider
international community andother international organisations
relations with the rest of theUnited Kingdom
Given the European Union’s rolein many areas of government,
Scotland needs adequate
representation within theEuropean Union to negotiate
directly for its own interests.
Scotland already has a distinct, if
limited, voice on the international
stage, both as a nation in its own
right and as part of the United
Kingdom. Scotland has close ties
with the rest of the United
Kingdom, from geography, fromsocial and historical bonds, andthrough institutions, such as themonarchy, and would maintainthese on independence.

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A National Conversation – YOUR SCOTLAND, YOUR VOICESCOTLAND IN THE WORLD TODAY
Current position
8.3 As a nation within the United
Kingdom, Scotland has maintained
an international profile. People fromacross the globe have connections
to Scotland; Scottish culture,
manufacturing and produce are
well-known throughout the world;and events such as Scotland Week
and Homecoming 2009 place
Scotland, its heritage and its
contribution to the modern world on
the global stage. Since devolution,
Scotland has developed a moreformal international role, for example
contributing to international
development, particularly in Africa.
8.4 Under the current constitutional
settlement, foreign affairs arereserved to the United Kingdom forformal international purposes, forexample membership of theEuropean Union. Scottish Ministers
can make representations on issuesof particular interest to Scotland
only through the United Kingdom

108

delegation. They can attend
meetings only with the agreementof the United Kingdom Government,
and must adhere to the agreed
United Kingdom position. Similararrangements apply to otherinternational negotiations which
affect devolved matters, such the
Copenhagen conference on climatechange and the Nuclear
Non-Proliferation Treaty Review
Conference.
SCOTLAND’S FUTURE ROLE
External relations recommendations of
the Commission on Scottish Devolution
8.5 The Commission recognised theimportance of the European Union
to Scotland, and made several
recommendations to strengthen therole of Scottish Ministers informulating the United Kingdom’s
position, both generally and whereparticular Scottish interests are
involved. The Commission also
recommended that there should be apresumption that Scottish Ministers
should be part of the United Kingdom

A National Conversation – YOUR SCOTLAND, YOUR VOICE

delegation when devolved issues arebeing discussed, and, similarly, that
there should be a presumption,
when practicable, that Scottish
Ministers should be able to speak insupport of the United Kingdom
position.
8.6 These recommendations potentiallystrengthen the opportunity to reflect
Scottish concerns in Europe.
However, Scottish Ministers would
still require the agreement of theUnited Kingdom Government to beable to speak, and would not be able
to deviate from the United Kingdom
position.
8.7 The Commission also made anumber of recommendations
designed to improve relations
between the Scottish Government
and the United Kingdom
Government within devolution.
These included strengthening the
Joint Ministerial Committee invarious ways, such as increasing thefrequency of its meetings andincreasing parliamentary scrutiny of
its proceedings. The Commission

also made several recommendations
to improve the relationship between
the Scottish Parliament and theUnited Kingdom Parliament. These
included more formal channels ofcommunication, particularly where
legislation involves both devolved
and reserved matters, and theappearance of the First Minister andthe Secretary of State for Scotland
before relevant committees in the
United Kingdom Parliament and theScottish Parliament respectively.116
8.8 Some of these recommendations
could improve the relationshipbetween the Scottish Government
and the United Kingdom
Government, particularly those thatwould genuinely improve theeffectiveness of the Joint Ministerial
Committee. It should be noted,
however, that any improvements to
the relationship between the
Scottish Government and the United
Kingdom Government should ensurethat Ministers are held properly
accountable to their own Parliament
for the exercise of their respective
responsibilities.

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Full devolution

Independence

8.9 Scotland could not play a full role ininternational affairs without
independence. However, experiencefrom other countries shows that, even
within the current arrangements,
Scotland’s international role could beenhanced.

Scotland in Europe

8.10 Devolved governments from both
Belgium and Spain have a right toattend meetings of the European
Union Council of Ministers whenmatters within their responsibilities
are being considered. Similarly,
representatives of the German
regions – sitting in the upper
chamber of the German parliament –have a key role in determining theGerman position for European Union
discussions of matters within theirsole competence.
8.11 Full devolution could give similar
rights of attendance at Council of
Ministers meetings to Scottish,
Welsh and Northern Irish Ministers,
instead of having to rely on the
goodwill of the United Kingdom
Government. Where devolved
interests predominate, a Scottish
Minister could speak for the United
Kingdom as a whole. This principle
applies to other international
conferences and meetings, forinstance Scotland could also have aright of attendance at theInternational Climate Change
Negotiations in Copenhagen.

110

8.12 An independent Scotland would
continue membership of theEuropean Union, fulfilling the
responsibilities which membershipbrings, and maintaining its political,
economic and social links to Europe.
As a nation within the United
Kingdom, Scotland is alreadyactively involved in, and influencing,the European Union, is governed by
European Union law, and is
responsible for transposing
European Union law into Scots law
for devolved subjects. However, as
part of the United Kingdom,
Scotland is less fully involved inEuropean Union policy-making.
Scotland derives a range of benefits
from being part of the European
Union, including access to the largest
single market in the world. Fullmembership of the European Union
would allow Scotland to participate
fully in European affairs, and ensurethat Scottish interests wererepresented. Settling the details ofEuropean Union membership would
take place in parallel to
independence negotiations with theUnited Kingdom Government, andwould cover areas such as number of
MEPs and weight in the Council of
Ministers.
8.13 Scotland would represent its own
national interests within the European
Union, in the same way as othermember states,117 influencing directly
the overall direction of European

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Union policy, as well as raising
Scotland’s profile as a responsible
and active European nation.
8.14 As a full member of the European
Union, Scotland would have greater
representation across the European
Union’s various institutions andbodies. Within the United Kingdom,
Scotland has six MEPs, but
independent countries of acomparable size to Scotland, suchas Denmark, have thirteen MEPs as
representation is calculated so that
there are proportionally fewer MEPs
for larger member states than forsmaller ones. An increase in thenumber of Scottish MEPs would
widen the range of committees on
which they could serve, further
increasing Scotland’s influence.
Scottish Government Ministers
would sit on the Council of theEuropean Union, the organisation’s
principal decision-making body.
8.15 An independent Scotland would also
have greater representation onother European Union bodies,including the Economic and Social
Committee and the Committee of
the Regions. As a full member,
Scotland would be eligible to serve
as President of the Council of theEuropean Union, which rotates ona six-monthly basis between all
members. Scotland would havea strong and consistent voice inEurope to argue for its own national
interests, as well as representing
Scottish views on wider European
Union matters.

8.16 In an increasingly globalised world,
membership of organisations such as
the United Nations, theCommonwealth, the World HealthOrganisation, the Organisation
for Economic Co-operation andDevelopment and the World
Trade Organisation would cement
Scotland’s place in the international
community. Through theseorganisations, Scotland could
promote its national interests
globally, representing the views
and interests of its people, andengaging with other states as anequal partner. Scotland would also
play a full role in considering andaddressing issues like peace and war,reconciliation and climate change.
As part of the United Kingdom,
Scotland already has links to suchorganisations, but is not a full memberof most. Independence would enable
Scotland to play a full role in each ofthese organisations, with the samerights and responsibilities as allother full members.
8.17 As part of the global community,
an independent Scotland would
establish a diplomatic service, as
well as a government department
to deal with international affairs.118
Scotland has already established
its own offices in certain strategic
overseas locations (Brussels,
Washington DC and Beijing) torepresent key interests. ThroughScottish Development International,
which promotes Scottish international
trade and inward investment, Scotland
also has a presence in 21 otherlocations. Scotland would be well111

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placed to build a strong diplomatic
service, promoting Scottish politicaland economic interests, as well as
Scottish culture, and offering
protection to Scottish citizens. This
would be an important element of
Scotland’s full role in theinternational community.
Scotland and the United Kingdom
8.18 On independence, relations between
Scotland and the rest of the United
Kingdom would be conducted on an
equal footing between two
sovereign governments. This should
lead to an improved relationshipbetween the Scottish Government
and the United Kingdom
Government, which is sometimes
strained by the devolution
settlement, particularly around areasof contention. While areas ofdifference would exist – as iscommon between neighbouring
nations – independence would
remove ambiguities anddisagreements over areas of
responsibility, allowing thedevelopment of a stronger
partnership between the Scottish
Government and the United
Kingdom Government.
8.19 Independence would requireintergovernmental machinery to
manage a new relationship and to
gain maximum benefit from the
Scotland-United Kingdom
partnership. Existing structures,such as the Joint Ministerial
Committee, should serve as a usefulmodel. Other existing bodies, suchas the British-Irish Council, would
remain relevant after independence(see Box 13).
8.20 A new partnership between the
Scottish Government and theUnited Kingdom Government would
support cross-border institutions
and bodies which continue to exist
after independence. There would
also be benefits to Scotland and theUnited Kingdom retaining a strong
political relationship when dealing
with the European Union.
8.21 As equal sovereign states, Scotland
and the United Kingdom would be
able to work together in a strong
partnership on areas of mutualinterest and advantage. Anintergovernmental mechanism
should be created to help manage
this relationship. This would help
ensure that areas of common
interests were reflected andadvanced in European Union
decision-making.

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BOX 13: BRITISH-IRISH COUNCIL
The British-Irish Council currently consists of: two sovereign states –the UK and Ireland; the three devolved administrations of Scotland,
Wales and Northern Ireland; and the three Crown Dependencies ofJersey, Guernsey and the Isle of Man. Arising out of the Agreements
underpinning the peace process in Northern Ireland, the Council is aforum for finding and progressing areas of collaboration between all
the member administrations to develop policy solutions to common
challenges. Each Member Administration has an equal voice at theCouncil, and decisions are taken by consensus. It would therefore makeno difference to the Council’s composition or operation if Scotland were
to become a sovereign state. It would continue as a valuable means of
exchanging experience and opinions, and agreeing future work to
benefit all the administrations represented. The Council provides a goodmodel for positive inter-governmental relationships in which mutual
respect is paramount, and Scotland will continue to support its
consolidation. The next stage of this is to secure a standing Secretariat,
which can then provide the Council with a secure base for its further
development.

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Who will qualify for
citizenship of Scotland
should/when it
becomes independent?
(Written response to the National Conversation, August 2007)

8.22 Citizenship in an independent
Scotland will be based upon an
inclusive model. Many people in
Scotland have ties to the rest of theUnited Kingdom, including familial,social and economic connections. An
independent Scotland could
recognise the complex sharedhistory of Scotland and the United
Kingdom by offering shared or dual
citizenship. As a member of theEuropean Union, Scottish citizens
would have free access acrossEurope.

114

Scotland’s defence, security andresilience
8.23 Scotland is currently unusual as anation in that it does not have
responsibility for matters of national
defence. The Scottish Government,
unlike those in other nations, isunable to determine the levels ofspending on defence, or indeed how
much of that spending occurs in
Scotland; it is unable to decide onwhether our young men and womenare sent to participate in conflicts
such as the Iraq war; and Scotland isunable to decide whether or not
nuclear weapons are based on our
territory. That is the defence statusquo for Scotland, with these issues
and others decided outwith Scotland.
8.24 A central function of government isto ensure the security of its citizens
and to protect them, their property
and way of life against threats.
Governments also plan and act toensure that society can withstandand react to major emergencies,
whether natural or man-made.

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8.25 Working to ensure the security of its
citizens and protect their prosperity
and way of life against internal andexternal threats is a normal andnatural function of government andone carried out effectively by every
other nation state in the European
Union. Other partner nations havethe full range of responsibilities
including defence, security andresilience, each of which plays aninterlocking part in ensuring thesecurity of citizens.

8.27 These challenges require a range of
responses: traditional policing ofserious crime; the use of intelligenceand technology to assess threats;planning for recovery from serious
incidents; and appropriate militarycapabilities and partnerships. Such
practical measures should becomplemented by core values, suchas respect for human rights and therule of law.

8.26 The security of any state can bethreatened by hostile states,
terrorism and serious organised
crime. Security is also affected bytechnological change, climatechange, migration, competition forresources and international poverty.
Societies also need to be resilient toother risks, such as extreme
weather, pandemic disease, utilities
failure, and industrial action.

8.28 National security and defence are
currently reserved, as are
emergency powers.119 Other aspectsof security and resilience planning,such as policing and local authority
contingency planning, are devolved.
In practice, there is considerable
overlap in these functions. For
example, although national security
is reserved, Scottish Police forces,
funded by and answerable to the
Scottish Parliament, implement
many aspects of counter-terrorism
strategy in Scotland. In the event of acatastrophic emergency in Scotland,
the United Kingdom Government
would be able to impose emergency
regulations and a regional emergency
co-ordinator under reserved
emergency powers but the planning
would rely on devolved agencies
such as local authorities and NHS
health boards.

Current position

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8.29 Almost all decisions about defence
and security are taken by the United
Kingdom Government, with noformal role or consultation with the
Scottish Government or Parliament.
Most prominently, decisions about
the deployment of United Kingdom
Armed Forces, for example to
Afghanistan or Iraq, are solely for
the United Kingdom Government.
Decisions about defence
procurement and defence facilities
within the United Kingdom can havea significant impact on Scotland’s
economy. Neither the Scottish
Parliament nor Government has any
formal role in these considerations
and there is no requirement for them
to be consulted or even informed.
The decision remains entirely within
the United Kingdom Government, as
do decisions on testing depleted
uranium weapon systems in Scotland,and basing the United Kingdom’s
nuclear deterrent on the Clyde.

116

Commission on Scottish Devolution
8.30 The Commission concluded thatnational defence and security are
irreducible functions of the State.120
The Commission was of the viewthat all parts of the United Kingdom
must remain joined together for
defence and national security andthere should be “no risk of a lack ofclarity” over responsibility.
8.31 The Commission did not discuss theexisting relationship between
defence, security and resilience, nor
the current overlap of reserved anddevolved policy responsibility,
funding and agencies. It noted, inthe context of Inter-Governmental
relations, that existing arrangements
for coordination in emergencies
were well developed and had beentested most recently in the outbreakof the Influenza A virus (sub-type
H1N1). However, the Commission
noted that these were pragmaticarrangements and that Ministers
from devolved administrations
participated by invitation of theUnited Kingdom Government.121
The Commission made norecommendations to put thesearrangements on a more formal
footing for future clarity.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Full devolution
8.32 National security and defence areseen as central to the functions of anation-state, and therefore difficult
to devolve to Scotland within the
United Kingdom.122 The experienceof other countries suggests that
defence policy would almost
certainly remain reserved to theUnited Kingdom Government.
However, there are improvements tothe overall arrangements for defence,
security and resilience that could bemade to enhance the effectivenessof current arrangements.
8.33 The reservation of emergency
powers could be removed, toemphasise the need for the United
Kingdom and devolved
administrations to work together inemergencies. In practice, theScottish Parliament and Government
would have a role in the exercise of
the emergency powers, particularly
in devolved areas. To recognise this,the ability to make regulations could
be exercisable by either Scottish orUnited Kingdom Ministers as
appropriate, on the model of sharedand community law powers under
the Scotland Act.123

8.34 Scottish Ministers could be given amore formal role on significant
decisions affecting Scotland, forexample the closure of a militarybase, particularly where thesedecisions have significant economic
impact, or the units support civil
authorities in Scotland (such as
search and rescue detachments andbomb disposal units). Scottish
Ministers could be consulted on suchproposals, and disagreements could
be taken to an inter-Governmental
machinery, perhaps the Joint
Ministerial Committee.
8.35 Taking the country to war is themost serious decision the United
Kingdom Government can take.
Under current proposals the United
Kingdom Parliament would gain aformal role in decisions to deploy
United Kingdom Armed Forces
overseas.124 Extending this principle
and consulting the other national
Parliaments and assemblies would
recognise the supreme importanceof such a decision to the United
Kingdom, and its constituent nations.

117

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Independence
8.36 Independence would give Scotland
full responsibility for matters ofdefence, security and resilience, likeother nations. Independence would
allow Scotland to decide anapproach to these issues that best
fits the national interest, based oninternationally accepted objectives
for defence and security policy:
•

•
•

•

to uphold national sovereignty andsecure the territorial integrity of thecountry
to secure internal security in theface of threats and risks
in partnership with other nations, tohelp to prevent and resolve conflicts
and war anywhere in the worldin partnership with other nations, tofurther peaceful development in theworld with due respect for humanrights

8.37 There are a number of key tasks thatsimilar nations undertake to support
these key objectives:
•
•
•

•
•
•
•

securing territorial integrity
working with other nations to ensure
regional security
developing partnerships with othernations to support peace, build
confidence and stability in otherparts of Europe and the world
supporting agencies responsible forcivil emergencies and security
responding to domestic andoverseas threats to security
ensuring the nation is prepared todeal with any domestic emergency
ensuring appropriate andresponsible care for veterans
There would be a range of choices
to be made for Scotland’s
independent defence and security
policy, including the size and cost of
Scotland’s defence capability,international defence alliances andits general approach to defence andinternational affairs.

What defence strategy would an
independent Scotland adopt?
(Jedburgh National Conversation event, 29 April 2009)118

A National Conversation – YOUR SCOTLAND, YOUR VOICE

8.38 For example, Scotland could focus primarily on
securing its territory, compared to the United
Kingdom approach of also having the capacity to
conduct overseas wars. It could support United
Nations peace keeping operations andinternational disaster relief with specialist units,
such as medical or engineering corps as well as
providing expert civilian and military training
support. It could continue to contribute to peace
enforcement operations, like those in the Balkans,
and actively participate in the European Security
and Defence Policy of the European Union.
119A National Conversation – YOUR SCOTLAND, YOUR VOICE

8.39 Each of these defence options has
opportunities and costs (althoughcurrent United Kingdom
Government defence spending in
Scotland is proportionately lower
than in the rest on the United
Kingdom – see Box 14), and there
are different models from similarcountries in Europe, and beyond.
Given the importance andcomplexity of the issues involved, an
independent Scotland would requirea strategic defence review toformulate and propose national
priorities for defence, and the longer
term objectives and structure of
Scotland’s armed forces. Similar
defence reviews have taken place ata United Kingdom level.
8.40On accession to the Nuclear NonProliferation Treaty, an independent
Scotland would become a NonNuclear Weapons State, taking on
the commitments of the treaty towork for nuclear non-proliferationand promote a nuclear weapon-freeworld. The United Kingdom’s nuclear
deterrent would not continue to be
based in an independent Scotland
and a Scottish Government would
need to work in partnership with therest of the United Kingdom toensure an appropriate transition
and relocation.
8.41 An integrated approach to defence,
security and resilience would allow
an independent Scotland to protect
its own citizens, while further

120

developing the expertise andcapability to play a full part ininternational efforts to address
terrorism, and other threats, andrespond to natural and man madedisasters, continuing the prominent
global role that Scots have playedover many years.
Alliances
8.42 An independent Scotland would
have choices regarding its
membership of international
alliances. For example, countries
such as Norway and Denmark aremembers of NATO whereas
countries such as Finland andIreland are not. Scotland, and this is
the stance favoured by the SNP,
could co-operate with international
alliances such as NATO through its
Partnership for Peace programme
while not being a member.
8.43 Whatever the outcome of a strategic
defence review, an independent
Scotland's closest allies would
remain its current partners in the
United Kingdom. Continued defence
co-operation on training, basing andprocurement arrangements would
benefit both Scotland and the othernations of the United Kingdom.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

BOX 14: DEFENCE SPENDING
1.

The United Kingdom currently spends a higher proportion of GDP on defence
than almost any other European country (2.4%)125 although the level of United
Kingdom Government defence spending which takes place Scotland is lower.
This expenditure is used to achieve global reach, and conduct overseas
deployment (such as Iraq and Afghanistan) as well as maintaining the nuclear
deterrent.

2.

An independent Scotland, following defence models similar to other European
countries, could choose to focus on non-nuclear domestic defence and security
and specific overseas peace-keeping operations. Scottish-based defence
industries could benefit from any joint procurement arrangement with the restof the United Kingdom, as well as wider export opportunities.

3.

Defence spending is intended to benefit the whole of the United Kingdom,
through providing security and stability, but defence spending also has apositive economic impact on the regions and countries where it takes place. For
example, military procurement and defence facilities directly support
employment, and the wider economy, in the regions they are based. However,Scotland receives a proportionally lower direct economic benefit from United
Kingdom Government defence spending than it might expect. Actual direct
Ministry of Defence expenditure in Scotland over the five years to 2006/07 wassome £4.3 billion less than the population based apportionment of defence
spending to Scotland over the same period.126

4.

Ministry of Defence employment in Scotland has fallen from 24,200 in 1997 to
17,900 in 2009, a proportionately larger fall than across the Ministry’s activities
outside Scotland. Consequently, Scotland’s share of Ministry of Defence
personnel has fallen from 7.0% to 6.5% over this period. The number of jobs
supported by Ministry of Defence expenditure in Scotland has also fallen inrecent years. In 2007/08 Ministry of Defence expenditure supported 6,000 jobs
in the Scottish economy, down from 10,000 in 2003/04.127

121

A National Conversation – YOUR SCOTLAND, YOUR VOICECONCLUSION
8.44 Only independence would give
Scotland a full voice in internationalorganisations, especially the European
Union, and responsibility for its own
security and defence policy. This voice
would represent Scottish interests,
and ensure that Scotland fulfilled its
potential to contribute to debates on
economic matters, energy, fisheries,
the environment and on matters ofpeace and war.

122

A National Conversation – YOUR SCOTLAND, YOUR VOICE

h
is
t
t
o
c
S
t
n
e
d
n
e
p
e
How will an inedlate to other governments
Government rations) across the current(and organis om?
United Kingd
er Cabinet, 30(Dundee Summ

June 2009)123

A National Conversation – YOUR SCOTLAND, YOUR VOICE124A National Conversation – YOUR SCOTLAND, YOUR VOICECHAPTER 9
A MODERN SCOTLANDOVERVIEW
9.1

Devolution has given Scotland amodern democratic Parliament,
open and accessible to the people,
and elected on a proportional basis.
Coalition and minority governments
have held office successfully,
demonstrating the adaptability of
the Scottish political parties to new
ways of working together andgoverning.

9.2 The Scottish Parliament andGovernment have taken a range ofdecisions that have affected eachand every citizen of Scotland, andhave demonstrated that Scotland
can govern itself effectively. The
Scottish Parliament and the Scottish
Government have both become
central parts of Scottish life. People
in Scotland routinely trust these
institutions more than their
Westminster counterparts, and lookto them to make the decisions which
affect Scotland.128
9.3 Democracy in Scotland isunderpinned by key principles suchas power sharing and participation,
which make Scottish governancedistinct from the rest of the United
Kingdom. The Scottish Parliament
provides genuine access for thepeople, through the legislative

process and the Petitions Committee,
which make the Parliament
responsive, and helps maintainaccountability. The Scottish
Government has pioneered innovative
consultation on significant policy
making. Both have demonstrated acommitment to engaging with thewhole of Scotland by taking
parliamentary committees and theScottish Cabinet out of Edinburgh
and around the country.
9.4 These features of today’s Scotland
indicate the direction for an
independent Scotland: a modern
country where the democratic
process provides transparency andaccountability. Independence for
Scotland would bring theseadvantages to the whole range ofgovernment activity, including all the
key issues currently dealt with by
the United Kingdom Parliament andGovernment in their traditional way.
9.5 Responsibility for decision making
within Scotland is shared between
central and local government basedon mutual esteem and respect.
Scotland should encourage a cultureof responsibility and independence
at all levels, with decisions being
taken at the right level to reflectspecific local needs, as well as thoseof the nation as a whole.
125

A National Conversation – YOUR SCOTLAND, YOUR VOICECONSTITUTION AND GOVERNMENT
The founding principles of the Scottish
Parliament
9.6 Those establishing the Scottish
Parliament deliberately set out tobuild a modern system of governance,
particularly compared to the United
Kingdom. A Consultative SteeringGroup was set up to consider how
the Scottish Parliament would
operate,129 and indentified founding
principles to govern the relationshipbetween people, parliament and thestate in Scotland:••••

power sharing
accountability
access and participation
equal opportunity

9.7 The Scottish Parliament has
successfully put into practice theprinciples on which it was founded:
•

•

126

the petitions system makes theParliament accessible and improves
accountability
the legislative process gives civilsociety and individuals significant
opportunities to participate before
and during the formal Parliamentary
processes••

both parliamentary committees
and the Scottish Cabinet take theprocess of government to all partsof the country
participation and engagement
is built into work of government,
parliament, local government andwider public sector

9.8 The electoral system has also
played an important role in opening
up government in Scotland and insharing responsibility between theexecutive branch and the Parliament
itself. The proportional voting
system has ensured that the Scottish
Parliament more closely reflects theviews of the people of Scotland, andthat parties have had to form
Parliamentary majorities in newways, either through coalition or
through issue-by-issue negotiations
by a minority government. Theseadvantages have now been
introduced to local government
in Scotland.

A National Conversation – YOUR SCOTLAND, YOUR VOICE127A National Conversation – YOUR SCOTLAND, YOUR VOICE

Scottish Parliament itself should be
consulted and agree to any variationin its responsibilities. However, thisis a constitutional convention, not arule of law, and relies on the United
Kingdom Parliament exercisingself-restraint in its use of its
responsibilities.

Current position
9.9 Aspects of the constitution,
including the United Kingdom
Parliament and the Union of theKingdoms of Scotland and England,
are reserved to the United Kingdom
institutions by the Scotland Act. The
system of government that has beensuccessfully built up over the lastten years is, therefore, subject toamendment – or even abolition –by the United Kingdom Parliament.
9.10 Also reserved are fundamental laws
which underlie the existence andactions of the Scottish Parliament
and the Government, most obviously
most of the Scotland Act and thelegal mechanisms for safeguarding
human rights in Scotland. These canalso be altered by the United
Kingdom to affect the competenceof the Scottish Parliament. For
example, the Scottish Parliamentcannot legislate in a way
incompatible with human rights.
However, while the United Kingdom
Government can be expected tocomply with its international
obligations, legally the United
Kingdom Parliament could amend
the mechanisms for protecting
human rights, altering thefundamental relationship between
the legislature and the citizen. There
are some safeguards, in that the128

9.11 Legislation regarding local
government is already largely
devolved to Scotland. Scottish
Ministers are elected to set thedirection of policy and the overarching outcomes that the public
sector in Scotland is expected toachieve. Local government has
responsibility to develop services
which deliver outcomes in ways thatreflect local priorities. The Scottish
approach to local government isbased on mutual respect andpartnership, based on key principles:•••

central and local government are
equal partners at the centre ofgovernance in Scotland
local authorities are democraticallyconstituted bodies with autonomy
to deliver in the best way that theysee fit for their local communities
central and local government should
work together to develop policy andagree the financial settlement
associated with delivery of policy
priorities

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Constitutional recommendations of theCommission on Scottish Devolution
9.12 One recommendation of theCommission is that the Scottish
Parliament could be permitted by
the United Kingdom Parliament tolegislate on a one-off basis inrelation to reserved matters. Thismechanism might improve theefficiency of the legislative process
when Scottish legislation involves
reserved matters. At present,
reserved issues have to be dealt withseparately by means of an order in
the United Kingdom Parliament.
There are potential advantages inbeing able to include such provisions
directly in Acts of the Scottish
Parliament.

9.13 However, the Commission does notdevelop this concept fully. A more
useful proposal would be that the
Scottish Parliament decides when it
should acquire competence over anissue, recognising its position as theelected national assembly of
Scotland. This would follow themodel of the 1931 Statute ofWestminster for the Dominions,such as Canada and Australia.
Full devolution
9.14 Full devolution of constitutional
affairs would mean that the Scottish
Parliament was responsible for all of
its procedures and its own
competence. The Parliament could
therefore adjust its electoral system,or its membership, or its statutory
Committee structure. Perhaps more
importantly, it could decide toacquire competence over issues
currently reserved to Westminster.
This could be either a unilateralprocess, or the United Kingdom
Parliament could agree to proposals,
similar to the system under theGovernment of Wales Act 2006.
With full devolution Scotland could
have its own civil service, similar to
Northern Ireland.

129

A National Conversation – YOUR SCOTLAND, YOUR VOICE

9.15 Full devolution on this model
would recognise the position of theScottish Parliament as the elected,
democratic voice of a sovereign
Scottish people, enabled todetermine the best form ofgovernment for the nation. It might
be that certain amendments to the
responsibilities of the Parliament, forexample on foreign affairs, requirenegotiation and agreement with theUnited Kingdom. A significant
package might need or benefit fromthe direct agreement of the people
in a referendum.

9.18 The current constitutionalarrangements, with the Queen as
Head of State of an independent
Scotland, a Scottish Parliament andGovernment modelled on theexisting institutions, and continued
membership of the European Union,
would provide a robust and tested
constitutional framework for
Scotland in the event of the transition
to independence. Some adjustments
would be needed to the relationshipwith existing United Kingdom bodies
where new partnership arrangements
were agreed.

9.16 Recognising the sovereignty of theScottish people with a devolved
Parliament which can alter thesettlement itself would be compatible
with Scotland remaining within the
United Kingdom. Sovereignty would
only lead to independence if thepeople of Scotland wish.

9.19 An independent Scotland could
consider further progress, forexample removing the religious
discriminatory aspects of thesuccession to the throne, orformulating and agreeing a fully
codified and written constitution.
These issues would be decided
within Scotland, either by the Scottish
Parliament, or, as at the moment for
major constitutional change, througha referendum.

Independence
9.17 An independent Scotland would
be responsible for its entire
constitution, from the Head of Stateto the rights of individual citizens,
subject to international obligations
such as European Union
membership.

130

A National Conversation – YOUR SCOTLAND, YOUR VOICEELECTIONS
Current position
9.20 Responsibility for elections to
the House of Commons, theEuropean Parliament and theScottish Parliament is reserved;
responsibility for local
government elections isdevolved, although the franchisefor these elections is reserved.

9.21 There are now four different
voting systems in use in Scotland.
First past the post for United
Kingdom Parliamentary elections;the additional member system(AMS) for elections to the
Scottish Parliament; single
transferrable vote (STV) for
local government elections; anda closed party list system forelections to the European
Parliament.

131

A National Conversation – YOUR SCOTLAND, YOUR VOICEElection recommendations of theCommission on Scottish Devolution
9.22 The Commission recommended thatthe responsibilities of the Secretaryof State for Scotland relating to
the administration of elections to
the Scottish Parliament should be
devolved, which would transfer
administrative responsibility.
Legislation for Scottish elections
would continue to be theresponsibility of the United Kingdom
Parliament and Government.
9.23 The Gould Report into the combined
local government and Scottish
Parliamentary elections of 2007
was clear that fragmentation of
responsibility was a major factor in
the problems encountered.130 The
Gould report concluded that the
Scottish Parliament should have full
responsibility for the Scottish
Parliamentary elections. The
Commission’s recommendation
would actually lead to further
fragmentation of decision-making
risking greater problems.
Full devolution
9.24 Full devolution of Scottish
Parliamentary elections would bringaccountability closer to the people

132

of Scotland. With full devolution of
responsibility for elections, theScottish Parliament could consider
the most appropriate voting system– perhaps STV in line with Scottish
local government elections – and thevoting age. The Scottish Parliament
could also examine more
imaginative ways to increase voter
participation following its decision
to decouple local government andScottish Parliamentary elections.
Independence
9.25 The main electoral effect of
independence would be that Scotland
no longer returned Members of
Parliament to Westminster. Scotland
would no longer use the first past
the post system for any of its
elections, and would use only
proportional voting systems.
9.26 Scotland would also be free to choose
its system of electing Members of
the European Parliament, which iscurrently decide by the United
Kingdom. The method chosen would
depend on the number of MEPs
Scotland secures in negotiation,
which is likely to be more than thecurrent six (Denmark, of comparable
size to Scotland, has 13 MEPs).

A National Conversation – YOUR SCOTLAND, YOUR VOICECONCLUSION
9.27 It has long been a part of Scottish
constitutional tradition that thepeople of Scotland should be able todecide their own constitutionalarrangements. However, the Scottish
Parliament does not currently havethe responsibility for determining
the best way of governing thenation, as aspects of the constitution
are reserved to the United Kingdom.

9.28 The sovereignty of the people of
Scotland could be recognised legallyand constitutionally within the
United Kingdom if the Scottish
Parliament had full responsibility
for determining its own functions
and role, as well as its structure andelections, consulting either or boththe Scottish people (by way ofreferendum) and the United
Kingdom Parliament. There areprecedents for such a model.
However, independence would
provide the Scottish people andtheir Parliament with the fullest
responsibility for their own
government.

133

A National Conversation – YOUR SCOTLAND, YOUR VOICE134

A National Conversation – YOUR SCOTLAND, YOUR VOICECHAPTER 10
CHOOSING SCOTLAND’S FUTUREINTRODUCTION
10.1

As a nation, Scotland can be proudof its achievements over the last
10 years. The Scottish Parliament
has introduced innovative andsuccessful reforms, making a realdifference to the lives of the peopleof Scotland. Two-thirds of thoseliving in Scotland now want the
Scottish Parliament to have more
responsibilities and 70% want it tohave the most influence over theway Scotland is run.131

10.2 This paper provides a vision of thefurther opportunities for Scotland if
the Scottish Parliament’s
responsibilities were extended inorder to allow for independence. The
current economic situation reinforces
the arguments for ensuring that
Scotland can determine its own
economic policies. The internationalsituation raises important andrelevant issues of peace and war. The
crisis in British democracy shows thepotential for a better system ofgovernment for Scotland, whichmight be an example for the rest of
the United Kingdom.
10.3 The debate about the way forward
for Scotland encompasses a wide

range of views and that range ofviews should be heard: and not justthe views of the political and civic
establishment – everyone in
Scotland should be given theopportunity to have their say.
INVOLVING THE PEOPLE
10.4 Ensuring the public can participate
in the democratic process is acentral tenet of modern Scottish
society. The Claim of Right of 1989
reaffirmed an ancient Scottish
tradition which asserts that it is thepeople of Scotland that aresovereign.
10.5 During and after the restoration of
the Scottish Parliament, the nation
has sought to be defined by amore inclusive form of democracythan that which prevails in the
United Kingdom Parliament.
Indeed the founding principles of
the Scottish Parliament include
access and participation, principles
that the Parliament has worked
assiduously to embed into its day
to day work. The Scottish
Parliament is now one of the mostopen and accessible Parliaments inthe world.

135

A National Conversation – YOUR SCOTLAND, YOUR VOICE

10.6 The Scottish Government issimilarly committed to encouraging
the participation of the people inshaping policy. This is evident thanin the way in which the Scottish
Government has approached theissue of Scotland’s constitutional
future.
10.7 The National Conversation has
been an exercise in participative
democracy. The whole process has
allowed the people of Scotland to
express their views on the future
direction of the nation, from public
events held in all parts of Scotland,
to publication of policy papers andan online portal where anyone
could leave comments and join in
the debate.
10.8 The next step is to ensure that thewhole of Scotland can give its viewon the extension of the
responsibilities of the Scottish
Parliament. The Scottish
Government proposes that a
Referendum should be held in
Scotland in 2010 to allow that view
to be heard.

136

A NATIONAL REFERENDUM

As the speakers said,
it is the decision of
the Scottish people as
to what road theywant to take. It
should not be
politicians who makethis decision!
(Haddington National Conversation event, 28 September 2009)10.9 The Scottish Government believes
that the future prosperity anddevelopment of Scotland is best
served by becoming an independent
country, a view shared in the
Scottish Parliament by the Scottish
Green Party. The Scottish
Government favours a referendum
which presents a clear choice
between achieving that aspirationand the current devolution
settlement.

A National Conversation – YOUR SCOTLAND, YOUR VOICEThe Scottish Government’s
preferred option
10.10 Under independence Scotland
would assume the rights andresponsibilities of a normal
sovereign state. This would include
all decisions on economic and fiscal
affairs, currency, the constitution,
foreign affairs, security and defence.
Scotland would be recognised as astate by the international communityand be part of the European Union
as a full member state.
10.11 The opportunities and challenges
of independence for specific policy
areas have been described in thispaper and have been the subject of
debate and discussion in Scotland
for many years. Those who favour
this vision of Scotland will be able
to indicate their support for
Scottish Ministers seeking toextend the responsibilities of the
Parliament to allow forindependence to be achieved.

A multi-option referendum
10.14 However, despite the Scottish
Government’s preference for asingle choice, it acknowledges that
there is support within Scotland fora range of positions seeking avariety of increased responsibilities
for the Scottish Parliament. During
the National Conversation suchsupport has been heard at town
hall meetings, and the National
Conversation policy papers haveincluded information on at least
two such options.
10.15 The Scottish Government also
accepts that a multi-option
referendum might be more likely
to command the support of otherparties in the Scottish Parliament, if
they are consistent with theirprevious positions on the matter,and it would enjoy a measure of
support within the country. The
Scottish Government can also seesome democratic advantage inposing more than one question.

Current devolution settlement
10.12 It is accepted that some voters
do not wish Scottish Ministers totake any steps to seek to extend
the responsibilities of the Scottish
Parliament.
10.13 Therefore there will be an
opportunity for those who do notsupport any extension of current
responsibilities to express thatview in the referendum.

10.16 However there is a problem indeciding what the other option
should be. It has been suggested
since the Commission on Scottish
Devolution reported in June 2009that its recommendations shouldbe placed before the Scottish
people. Those who sponsored theCommission have refused to allowthat to happen. In addition, theproposals not only fall short of beinga coherent package, but they also
fall short of the increase in
responsibilities that would normallybe seen as requiring referendum137

A National Conversation – YOUR SCOTLAND, YOUR VOICE

consultation. Furthermore there issome doubt as to whether theparties who previously supported
the Commission process are still
unanimously in favour of the
fiscal proposals.
10.17 There is a further problem insuggesting that the Commission
recommendations form an
option in a referendum. As boththe Scottish and United Kingdom
Governments support many of therecommendations, and as the
Scottish Government has published
an approach which would
implement legislative changes
within a matter of months,
providing the United Kingdom
Government agrees, many of the
proposals could be implemented
well before a referendum could be
held. The Scottish Government isalso working to attempt tofacilitate, with the United Kingdom
Government and the Scottish
Parliament, early progress on nonlegislative Commission proposals
regarding Scottish Parliamentary
Procedures and inter-governmental
relations.
10.18 However, there is an alternative
set of proposals which would
seek to extend the responsibilitiesof the Scottish Parliament, short ofindependence. Contributions to the
National Conversation haveindicated support for a range of
proposals which reduce thereservations of policy areas under
the Scotland Act, but do not138eliminate them all. For example, thedevolution of broadcasting,taxation and benefits could form
elements what has been called“Devolution Max”.
10.19 Unfortunately the various
proponents of this approach have
yet to bring it forward in a form inwhich it could provide the basis fora question in a multi-option
referendum, although the inclusionof the concept in the National
Conversation policy papers, and in
this paper, will have helped thatprocess.
10.20 The Referendum Bill will be
introduced into the Scottish
Parliament in early 2010. There
will therefore be an opportunity
during the Bill process for one ormore of the opposition parties in
the Scottish Parliament to bringforward such a proposal. If it werebrought forward, the Scottish
Government would be prepared
to consider it as a serious option
for inclusion in a multi-option
referendum. Accordingly the
Referendum Bill will be constructed
so that the Scottish Parliament can,if it so chooses, offer the Scottish
people the opportunity to vote fora proposal about further devolutionof other responsibilities to the
Scottish Parliament as part of amulti-option referendum, eventhough the Scottish Government
does not favour this option andwill not campaign for it.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

10.21 A referendum is essential because
the Scottish Government believes
that this debate cannot be
restricted to the Scottish
Parliament. The National
Conversation has allowed thepeople to articulate their views, and
it is now time for them to be invited
to express those views in a formalway.
10.22 The Bill as introduced will provide
the detailed framework for holding
the referendum and will contain the
precise form of the ballot paper forthe choice described in paragraphs
10.10 – 10.13 above. The referendum
will be held on a similar model to1997, but with additional provisions
to govern the scrutiny of theprocess through an independent
commission, the levels of financethat can be spent during the

campaign, and the mechanism forthe count. The arrangements will
conform to or exceed the bestinternational practice.
THE NEXT STEP
10.23 The Scottish Government intends
to bring forward the Referendum
Bill early in 2010. The Scottish
Parliament will be invited to pass
the legislation.

139

A National Conversation – YOUR SCOTLAND, YOUR VOICEANNEX ANATIONAL CONVERSATION EVENTS
DATE

EVENT

14 August 2007

Launch of National Conversation and publication of Choosing
Scotland’s Future by First Minister Alex Salmond

22 October 2007

Scottish Government summit: Scotland’s future without nuclear
weapons

30 November 2007

First Minister delivered St Andrew’s Day lecture on nationaldays and the National Conversation

11 December 2007

Deputy First Minister Nicola Sturgeon gave evidence to theEurope and External Relations Committee of the Scottish
Parliament on the National Conversation

11 December 2007

First Minister delivered the Playfair lecture on Scotland, Europe
and the National Conversation

4 February 2008

First Minister Alex Salmond opened Scotland in the World at
the University of Aberdeen

13 February 2008

First Minister Alex Salmond at Trinity College Dublin

26 March 2008

Phase 2 of the National Conversation launched with over 100
representatives of Scotland’s civic institutions at the Universityof Edinburgh

1 April 2008

First Minister Alex Salmond at the University of Virginia in USA

23 April 2008

First Minister Alex Salmond continued the National
Conversation in Brussels

3 May 2008

Minister for Parliamentary Business Bruce Crawford addressed
Churches without Walls conference

19 June 2008

Action of Churches in Scotland Together

20 June 2008

Minister for Parliamentary Business Bruce Crawford at Scottish
Council of Voluntary Organisations

29 July 2008

Scottish Cabinet in Dumfries

5 August 2008

Scottish Cabinet in Inverness

140

A National Conversation – YOUR SCOTLAND, YOUR VOICE

DATE

EVENT

7 August 2008

Young Scot meeting in Dumfries

13 August 2008

Scottish Cabinet in Pitlochry

26 August 2008

Scottish Cabinet in Skye

30 August 2008

Young Scot meeting in Inverurie

8 September 2008

Scottish Council for Voluntary Organisations in Uist

10 September 2008

Minister for Schools and Skills Maureen Watt in Airdrie

20 September 2008 Young Scot host meeting in Irvine
28 September 2008 Scottish Council for Voluntary Organisations in Perth29 September 2008 Scottish Council for Voluntary Organisations in Castle Douglas
14 October 2008

Scottish Council for Voluntary Organisations in Inverness

10 November 2008

Deputy First Minister Nicola Sturgeon and Minister for
Parliamentary Business Bruce Crawford in Stornoway

12 November 2008

National Discussion Day at the Jam House in Edinburgh withfeedback from 5,000 Young Scots who completed online
questionnaires

27 November 2008

Scottish Government’s St Andrew’s Day debate at Holyrood

19 January 2009

Cabinet Secretary for Justice Kenneth MacAskill and Minister
for Public Health and Sport Shona Robison in Dundee

23 February 2009

Minister for Transport, Infrastructure and Climate Change
Stewart Stevenson in Banff

23 March 2009First Minister Alex Salmond, Cabinet Secretary for Finance andSustainable Growth John Swinney and Minister for Transport,
Infrastructure and Climate Change Stewart Stevenson in Arran

30 March 2009

Council of Ethnic Minority Voluntary Organisations in Glasgow,
hosted by Deputy First Minister Nicola Sturgeon

22 April 2009

Council of Ethnic Minority Voluntary Organisations in
Edinburgh, hosted by Cabinet Secretary for Education andLifelong Learning Fiona Hyslop

141

A National Conversation – YOUR SCOTLAND, YOUR VOICE

DATE

EVENT

29 April 2009

Cabinet Secretary for Rural Affairs and the Environment
Richard Lochhead and Minister for Culture, External Affairs andthe Constitution Michael Russell in Jedburgh

13 May 2009

Cabinet Secretary for Education and Lifelong Learning Fiona
Hyslop and Minister for Parliamentary Business Bruce Crawford
in Stirling

18 May 2009

Council of Ethnic Minority Voluntary Organisations in Dundee,
hosted by Cabinet Secretary for Finance and Sustainable
Growth John Swinney and Minister for Parliamentary Business
Bruce Crawford

1 June 2009

Cabinet Secretary for Justice Kenny MacAskill and Minister forChildren and Early Years Adam Ingram in Kilmarnock

16 June 2009

Minister for Culture, External Affairs and the Constitution
Michael Russell and Minister for Schools and Skills Keith Brown
in Kirkcaldy

16 June 2009First Minister Alex Salmond and Minister for Culture, External
Affairs and the Constitution Michael Russell in Livingston

22 June 2009

Council of Ethnic Minority Voluntary Organisations in
Aberdeen, hosted by Minister for Housing and Communities
Alex Neill and Minister for Environment Roseanna Cunningham

23 June 2009

Council of Ethnic Minority Voluntary Organisations in Inverness,hosted by Minister for Housing and Communities Alex Neill and
Minister for Environment Roseanna Cunningham

29-30 June 2009

Scottish Cabinet meeting in Dundee, followed by National
Conversation event

27-28 July 2009

Scottish Cabinet meeting in Melrose, followed by National
Conversation event

3-4 August 2009

Scottish Cabinet meeting in Stornoway, followed by National
Conversation event

17-18 August 2009

Scottish Cabinet meeting in Aberdeen, followed by National
Conversation event

31 August –1 September 2009

Scottish Cabinet meeting in Glasgow, followed by National
Conversation Event

8 September 2009

Minister for Culture, External Affairs and the Constitution Michael
Russell launched Europe and Foreign Affairs paper in Brussels

142

A National Conversation – YOUR SCOTLAND, YOUR VOICE

DATE

EVENT

14 September 2009

Cabinet Secretary for Education and Lifelong Learning Fiona
Hyslop and Minister for Community Safety Fergus Ewing in Paisley

28 September 2009 Minister for Culture, External Affairs and the Constitution
Michael Russell and Minister for Transport, Infrastructure andClimate Change Stewart Stevenson in Haddington
28 September 2009 Minister for Culture, External Affairs and the Constitution
Michael Russell hosted Expressing and Exercising Scottish
Sovereignty seminar at the University of Edinburgh
30 September 2009 Council of Ethnic Minority Voluntary Organisations in Edinburgh,
hosted by First Minister Alex Salmond
5 October 2009

Minister for Community Safety Fergus Ewing and Minister forTransport, Infrastructure and Climate Change Stewart
Stevenson in Oban

19 October 2009

Cabinet Secretary for Health and Wellbeing Nicola Sturgeon
and Minister for Schools and Skills Keith Brown in Hamilton

26 October 2009

Cabinet Secretary for Justice Kenneth MacAskill and Minister
for Housing and Communities Alex Neill in Dalkeith

2 November 2009

Video conference with Minister for Culture, External Affairs andthe Constitution Michael Russell and Minister for Schools andSkills via University of the Highlands and Islands network,
linking Orkney, Shetland, Fort William, Thurso and Dingwall

9 November 2009

Cabinet Secretary for Finance and Sustainable Growth John Swinney
and Minister for Children and Early Years Adam Ingram in Ayr

9 November 2009

Minister for Culture, External Affairs and the Constitution
Michael Russell delivered lecture on the debate about
Scotland’s constitutional future at Constitution Unit, University
College London

16 November 2009

Cabinet Secretary for Justice Kenneth MacAskill and Minister
for Environment Roseanna Cunningham in Port Glasgow

19 November 2009

Minister for Children and Early Years Adam Ingram and Minister
for Housing and Communities Alex Neill in Bishopbriggs

24 November 2009

Scottish Council on Deafness, Glasgow, with Deputy First
Minister Nicola Sturgeon

In addition, the Minister for Enterprise, Energy and Tourism held 130 National
Conversation economy-based events with a wide variety of groups throughout
Scotland.

143

A National Conversation – YOUR SCOTLAND, YOUR VOICEANNEX BORGANISATIONS CONTRIBUTING TO
THE NATIONAL CONVERSATION
Many individuals and organisations have attended or been represented at
National Conversation events, including the following:
Aberdeen Airport
Aberdeen and Grampian Chamber ofCommerce
Aberdeen City Council
Aberdeen College
Aberdeen Council of Voluntary
Organisations
Aberdeen Greenspace
Aberdeen International Centre
Aberdeen Performing Arts
Aberdeen Tenants Association
Aberdeenshire Council
Addaction
Adult Protection Committee
Afasic Scotland
All Saints Church Glasgow
Anderston Sanctuary Tenants &Residents Association
Angus Council
Angus Housing Association
Apex Scotland
Appin Community Council
Arac
Ardler Village Trust
Ardlochrig Tenants and Residents
Association
Ardrossan Community Council
Argyll & Bute Council
Argyll Technologies

144

Armadale Community Council
Armadale Community Education
Association
Armour and Partners
Armstrong Landforce
Arran Adventure Company
Arran Ferry Committee
Arran Haulage
Arran High School
Arran Windpower Ltd
Ashley and Broomhill CC
Aspire 2gether
Association of Scottish Community
Councils
Athelstaneford Parish Church
Auchtermuchty and Strathmiglo
Community Council
Autism Argyll
Autism Rights
Avich & Kilchrenan Community Council
Ayr Careers Centre
Ayrshire & Arran Alcohol and Drug
Action Team
Ayrshire Housing
Baker Tilly Tax and Accounting Limited
Ballantrae Community Council
Banff and Buchan College
Banner Residents Association
BDA Council

A National Conversation – YOUR SCOTLAND, YOUR VOICEBEAR Scotland
BEEM & East Lothian Resident & Tenants
Panel
Befrienders
Belhelvie Community Council
Berwickshire Housing Association
Better Government for Older People
Black and Ethnic Minorities Infrastructure
in Scotland (BEMIS)
Blackridge Community Council
Blairgowrie & East Perthshire Tourist
Association
Bon Accord Free Church of Scotland
Border Curling Development Group
Borders Common Riding Association
Borders Family History Society
Borders Independent Advocacy Service
Borders Sport and Leisure
Bower, Halkirk-Westerdale and Watten
Parishes
Boys Brigade
Braidhouse
British Deaf Association
Broomhill Community Council
Broxburn Academy Parents Council
Broxburn Family Centre
Brunton Court Tenants Group
Buccleuch GroupBurns Festival Trust
Cairn Valley & District Community
CouncilCalderwood Community Council
CalMac Ferries Ltd
Cameron Riddell Associates
Capability Scotland
Cardonald College

Cassillis Estate
Castle Tenants & Residents Association
Cathedral of St Mary's of Assumption
Catherine's Country KitchenCentral Buchan
Centre for Stewardship
Certex Accounting
Chair Caderwood Community Council
Changing Places
Cherry Road Centre
Christ Church
Church of Scotland
Citizens Advice and Rights Fife
Citizens Advice Bureau
CL Research
Clackmannanshire Council
Clyde Gateway URC
Clyde Valley Community Council
Clydebank College
Coal Industry Social Welfare
Organisation
COAST
Comhairle nan Eilean Siar
Community Integrated Care
Community Learning and Development
Community Links
Convenor Orkney Islands Council
Cornbank Primary School
Cornerstone
Cowal Community Hospital
Craigengillan
Cranshaws, Ellemford & Longformacus
Cranston Nurseries Ltd
Crescent Moon Music Ltd
Crofters Commission
Currie & Brown United Kingdom Limited

145

A National Conversation – YOUR SCOTLAND, YOUR VOICECXR Biosciences Ltd
Dairsie Community Council
Datec Technologies Limited
David MacBrayne Ltd
Deans Community High School
Playgroup
Dougarie Estate
Drongan Tenants and Residents
Association
DSL Business FinanceDumfries & Galloway Federation
Dumfries and Galloway ConstabularyDumfries and Galloway Council
Dunbar Community Council
Dunbar Parish Church
Dundee and Angus Chamber ofCommerce
Dundee City Council
Dundee College
Dundee Voluntary Action
Dunmure Community Council
Dunpender Community Council
East Ayrshire Council
East Lothian & Midlothian Community
Health Partnerships
East Lothian & Midlothian Community
Partnership
East Lothian Council
East Lothian Fishermen's Association
East Lothian Public Partnership
East Lothian Tenants and Residents
Panel
East Renfrewshire Council
Edinburgh Pharmaceutical Processes Ltd
Ednam, Stichill & Berrymoss Community
Council146

Eildon GroupEllon and District
Emergency Care Centre
Emtelle United Kingdom Ltd
ENABLE
Ettrick & Yarrow Community Council
Fairbridge
Fairlie Community Council
Falkirk Council
Federation of Small Businesses
Fife Council
Fife Scottish Youth Parliament
Fife Youth Forum
Fios
Fire Brigade Union Tayside
Fisherton Church
Floors Makerstoun Nenthorn & Smailholm
Community Council
FOANSLAG Tenants and Residents
Association
Forestry Commission Scotland
Fort, Seafield and Wallacetown
Community Council
Free Church of Scotland
Friends of the West Highland Lines
Society
Furnance Community Council
Fyvie Homecoming Festival
GATE
Gavinton, Fogo & Polwarth Community
Council
Girvan Community Council
Glamis Castle
Glasgow Chamber of Commerce
Glasgow City Council
Glasgow College of ArtsA National Conversation – YOUR SCOTLAND, YOUR VOICE

Glasgow Metropolitan College
Glasgow Works
Glenburn Surgery
Gordon & Westruther Community
Council
Govan C Residents Association
Grampian Police
Grandparents Apart Self Help Group
Kilmarnock
Guthrie Group Ltd
Hairmyres HospitalHalliday Fraser
Hamilton Old Parish Church
Hamilton Park Racecourse
Hamilton Trinity Parish Church
Harlow Hadden Consulting Engineers
Harris Tweed Authority
Headtown
Hebrides Alpha Project
Highland Alternative Energy
Highland Council
Highland Theological College
Highlands and Islands Enterprise
Hillhouse
Hitrans
HMP Peterhead
HMP Kilmarnock
Homestart Glasgow
Horizon Housing Association
Housing Initiative for Arran Residents
Houston Community Council
Howood Community Council
Hunterhill Community Council
Iain More Associates
Inclusion Scotland
Institute of Directors

Institute of Local Television
Inverurie and District
Islands Book Trust
J Rutherford (Earlston) Ltd
Jedburgh AllianceJedburgh Community Trust
Jewel & Esk College
John Wheatley College
Justice and Peace Scotland
Keep Scotland Beautiful
Kelso LibraryKennoway Community Council
Kibble Education Centre
Kilmarnock College
Kinetic Group
King's Park Community Council
Kinross-shire Residents Association
Kirkcaldy High School
Kirkcaldy West Community Council
Labour Party
Lanarkshire Chamber of CommerceLangside College
Largo Area Community Council
Lauderdale Development Trust
Lead Scotland North
Lewis Sports Centre
Lilliesleaf Ashkirk & Midlem Community
Council
Lilliesleaf Poultry
Living Streets Scotland
Loch Lomond and the Trossachs National
Park
Lochaber GoPark
Longside & District Community Council
Lothian and Borders Fire & Rescue
Lothian and Borders Police

147

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Lothian NHS Board
Maclay Murray & Spens LLP
Mains of Tarryblake
Mann Judd Gordon
Manor, Stobo & Lyne Community Council
Maritime and Coastguard Agency
Maxwellton Court Tenant Association
Medical Research Council
Meldrum, Bourtie Daviot Community
Council
Mellerstain Trust
Melville Housing Association
Methihill Primary School Parent Council
Methodist Church in Scotland
MG Alba
Midlothian & East Lothian Chamber ofCommerce
Midlothian Council
Midlothian Tenants Org
Midlothian Youth Platform
Molendinar Community Council
Momentum Scotland
Moray Council
Moray Firth Coastal partnership
Mossblown & St Quivox Community
CouncilMountain Rescue Association
Museum nan Eilean
Napier University
National Trust for Scotland
Network of Community Councils
Newcastleton, Development, Tourism &Leisure GroupNHS Borders
NHS Fife
NHS Forth valley

148

NHS Grampian
NHS Greater Glasgow
NHS Highland Board
NHS Lanarkshire
NHS Orkney
NHS Shetland
NHS Tayside
NHS West LothianNorth Ayrshire Council
North End First Responder
North Glasgow College
North Lanarkshire Council
Northern Lights Regional Network
Nungate Tenants Residents Association
Oban Community Council
Oban High School
Oil and Gas Academy
Old Aberdeen Community Council
OLMC Parish Banff
Orkney College
Orkney Council
Outer Hebrides Fisheries Trust
Paisley South Housing Association
Paisley West Community Council
Parent Council West Calder High School
Partick United Residents Group
Partners in Advocacy
Pearce Institute
Peebles Community Council
Peeblesshire Federation
Penicuik Town Hall
Penumbra Youth Project
Perth & Argyll Conservancy
Perth and Kinross Council
Perthshire Chamber of CommerceA National Conversation – YOUR SCOTLAND, YOUR VOICEPeterhead North and Rattray
Peterhead South and Cruden
Planning Together
Portlethen & District Community Council
Positive Solutions
Positive Steps
Pöyry Energy (Aberdeen) Ltd
Prestwick and District Branch
Procurator Fiscal Service
Prospective Parliamentary Candidate
Queen Margaret University
Racial Equality Council
Rathbone United Kingdom
RBS
Re-Gen North
Renfrewshire Council
Renfrewshire CVS
Richmond Fellowship Scotland
Riddrie Tenant and Resident Association
Rosemount Flexi Centre
Roses Charitable Trust
Rothera GroupRoyal Burgh of Selkirk and District
Community Council
Royal National Mod
Royal Scottish Geographical Society
Salvation Army
SAMH
Sandback Community Council
Sandwick Community Council
School Leaders Scotland
Scotland Transerv
Scottish Agricultural College
Scottish Agricultural College Farm
Business Services

Scottish Association of Local Sports
Councils
Scottish Auto Cycle Union
Scottish Beef Cattle Association
Scottish Borders Chamber of Commerce
Scottish Borders Council
Scottish Borders Elder Voice
Scottish Borders Environment
Partnership
Scottish Borders Social Enterprise
ChamberScottish Borders Tenants Organisation
Scottish Business in the Community
Scottish Council for Development andIndustry
Scottish Council of Jewish Communities
Scottish Council on Deafness
Scottish Crofting Foundation
Scottish Enterprise
Scottish Episcopal Church
Scottish Flood Forum
Scottish Genealogy Research
Scottish Health Council Borders
Scottish National Heritage
Scottish Natural Heritage
Scottish Pre-School Playgroup
Development Worker
Scottish Prison Service
Scottish Qualifications Authority
Scottish Tenant Farmers Association
Scottish Traditional Boat Festival
Scottish Water
Scottish Youth Parliament
Scottish Youth Theatre
Seabird Centre
Selkirk Regeneration Group149

A National Conversation – YOUR SCOTLAND, YOUR VOICESEPA
SEStran
Shell
Shetland Islands Council
Shieldhall Tenants and Residents
Association
Skills Development Scotland
Smithy Croft High School
Smithy House Associates
Soroba Young Family GroupSouth Ayrshire Council
South Lanarkshire Council
Springfield Community Council
SPT
SRPBA
SSPCA
St Benedicts Church
St John's Church
St John's Episcopal Church
St Mary's Church
St Patricks Church
St Philamena's Primary
Stirling Council
Stirling Smith Art Gallery and Museum
Stirling University
Stornoway Amenity Trust
Strathclyde Fire & Rescue
Strathclyde Forensics
Strathclyde Hospital
Strathclyde Police
Strichen and Tyre Church
Stirling Council
STUC
TACTRAN
Tarbert & Skipness Community Council
Tay Screen

150

Tenants & Residents Association of
KemnayTenants and Residents Association
The Bridge
The Cyrenians
Theatre Hebrides
Third Sector Hebrides
Thornfield House
Thurso Community Council
Tilhill Forestry Ltd
Todd Associates
Trade Union Council
Transition Arran
Traquair House
Trinity Church
Troon St Meddan's Parish Church
Trustee Reform Scotland
Tullibody, Cambus & Glenochil
Community Council
Turriff and District Heritage Society
Turriff Community Council
Tweeddale Sports Council
Tyron Parish Hall Committee
University of the Highlands and Islands
Lews Castle College
UnisonUNISON Lanarkshire Health Branch
Unite
University of Abertay
University of Dundee
University of Dundee
University of Strathclyde
University of the West of Scotland
University of Abertay
Uphall Community council
Video Goodwill

A National Conversation – YOUR SCOTLAND, YOUR VOICE

Visit Scotland
Voluntary Sector Strategy Group
Volunteer Centre West LothianWalking Support
Wallyford Community Council
West Church
West End Community Council
West Lochfyne Community Council
West Lothian College
West Lothian Council
West Lothian Drug & Alcohol Service
West Lothian Drug Actions TeamWest Lothian FSBWest Lothian LEADER Coordinator
West of Scotland Housing Association
Westburn Village Neighbourhood Council
Western Isles Health Board
Western Isles Library Service
Westhill & Elrick Community Council
Westhill and District
Westhill Community Council
Whitehall Theatre
Willow Wood Community
Wireless Infrastructure Group
Word Fringe
Young Scot

The following organisations also madeformal written submissions to the
National Conversation:
British Energy
Ecas
Educational Institute of Scotland
Glasgow Caledonian University
Institute of Chartered Accountants of
ScotlandInstitute of Local Television
National Trust for Scotland
Reform Scotland
Scottish Association for Public Transport
Scottish Competition Law Forum
Scottish Consumer Council
Scottish Federation of Housing
Associations
Scottish Refugee Council
Statistics Commission
University of EdinburghWest Lothian Council

151

A National Conversation – YOUR SCOTLAND, YOUR VOICEENDNOTES
1

2

3

4

5

“We, gathered as the Scottish Constitutional
Convention, do hereby acknowledge the sovereign
right of the Scottish people to determine the formof Government best suited to their needs, and do
hereby declare and pledge that in all our actions
and deliberations their interests shall beparamount.” Owen Dudley Edwards, Claim of Rightfor Scotland (Polygon, 1989).
The 1997 referendum offered three options to the
Scottish people: the status quo, a Parliament
without tax varying powers, and a Parliament withtax varying powers. Scottish Parliament, “The Path
to Devolution”, http://www.scottish.parliament.uk/
vli/history/pathtodevolution/index.htm.
See Scottish Government, Choosing Scotland’s
Future: A National Conversation – Independence
and Responsibility in the Modern World (August2007), paragraphs 1.5 – 1.13, chapter 2 and Annex A
http://www.scotland.gov.uk/Publications/2007/
08/13103747/0.
Department for Constitutional Affairs, Devolution
Guidance Note 10: Post-Devolution Primary
Legislation affecting Scotland (last updated
November 2005), http://www.dca.gov.uk/
constitution/devolution/guidance/dgn10.pdf.
See Scottish Government, “Move to close damages
loophole” 1 April 2009, http://www.scotland.
gov.uk/News/Releases/2009/04/01140512.

6

Scottish Government, Choosing Scotland’s Future(August 2007), http://www.scotland.gov.uk/
Publications/2007/08/13103747/0.

7

http://www.anationalconversation.com.

8

Full details of the National Conversation are on
the National Conversation website:www.anationalconversation.com.

9

http://www.scotland.gov.United Kingdom/
Topics/a-national-conversation/Tell-us/Blog.

10

HM Government, Building Britain’s Future,
http://www.hmg.gov.United Kingdom/buildingbritainsfuture.aspx.

11

See POWER2010, http://www.power2010.org.uk/.

12Constitutional Reform and Government Bill Houseof Commons,152

http://www.publications.parliament.uk/pa/
cm200809/cmls://s/142/09142.i-iv.html.
13

http://allwalesconvention.org/?skip=1&lang=en.

14

Independent Commission for Funding and Financefor Wales, Funding devolved government in Wales:
Barnett & beyond (July 2009), http://wales.gov.uk/
icffw/home/report/firstreport/?lang=en.

15

Scottish Government, The Scottish Government’s
Response to the Recommendations of theCommission on Scottish Devolution (November2009), http://www.scotland.gov.uk/
Publications/2009/11/09152544/0.

16Further details on many subjects can be found in
the National Conversation policy papers listed atparagraph 1.18, and on the National Conversation
website at http://www.scotland.gov.uk/Topics/
a-national-conversation.

17

Scottish Government, Choosing Scotland’s Future(August 2007), 4-5, http://www.scotland.gov.uk/
Publications/2007/08/13103747/0.

18

See Commission on Scottish Devolution, The Futureof Scottish Devolution within the Union: A First
Report (December 2008), 60-64,
http://www.commissiononscottishdevolution.org.
uk/uploads/2008-12-01-vol-1-final--bm.pdf.

19

See Scottish Government, The Government
Economic Strategy (November 2007),
http://www.scotland.gov.uk/Publications/
2007/11/12115041/0.

20

See Scottish Government, The Government
Economic Strategy (November 2007),
http://www.scotland.gov.uk/Publications/
2007/11/12115041/0.

21

See Scottish Government, The Government
Economic Strategy (November 2007),
http://www.scotland.gov.uk/Publications/
2007/11/12115041/0.

22

Approximately 70% of total identifiable public
sector expenditure for Scotland in 2007/08 can beloosely classified as ‘devolved expenditure’. See
Scottish Government, Government Expenditure
and Revenue Scotland 2007/08 (GERS 2007/08)(June 2009), Table 6.8, http://www.scotland.
gov.uk/Publications/2009/06/18101733/0.

A National Conversation – YOUR SCOTLAND, YOUR VOICE23

It is estimated that a one pence change in the SVR
would be worth approximately plus or minus£350 million in 2009/10 and £360 million in 2010/11.
HM Treasury Budget 2009, http:www.hm-treasury.
gov.uk/bud_bud_09_index.htm.

24

Scottish Government, Borrowing Powers:
Information to be shared with the CalmanCommission (March 2009), http://www.scotland.
gov.uk/Topics/a_national_conversation.

25

Bank of England, Monetary Policy Framework,
http://www.bankofengland.co.uk/
monetarypolicy/framework.htm.

26

27

For example, the Scottish Government believes
that the £12 billion cost of reducing VAT to 15%
announced by the Chancellor at the 2008 prebudget report, would have been better spent on
increasing net investment. Scottish Government
analysis has shown that the net effect in terms ofjobs would have been greater.
Scottish Government, Fiscal Autonomy in
Scotland: The case for change and options forreform (February 2009),
http://www.scotland.gov.uk/Publications/
2009/02/23092643/0.

28

GERS 2007/08.

29

For example, the Norwegian Government
announced in January 2009 that it would use a
proportion of its oil wealth to fund a £2 billion
fiscal stimulus package. In contrast to othercountries, Norway has been able to implement
these measures without relying on large increases
in government borrowing. The Norwegian
Government projects that it will run a budget
surplus of 7.4 % of mainland GDP in 2009, higher
than any other country in Europe. See Scottish
Government, An Oil Fund for Scotland: Taking
forward our National Conversation (July 2009), 26,
http://www.scotland.gov.uk/Publications/2009/07/28112701/0.

30

Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom inthe 21st Century, Final Report (June 2009), 86-110,
http://www.commisionscottishdevolution.org.uk/.

31

See Jim Cuthbert and Margaret Cuthbert, Open
Letter to the Calman Commission: TechnicalFailings in the Calman Proposals on Income Tax,
16 July 2009, http://www.cuthbert1.pwp.
blueyonder.co.uk/; The Scotsman, “Long-termplanning is threatened by report”, 17 June 2009,http://thescotsman.scotsman.com/opinion/
Longterm-planning-is-threatened-by.5371689.jp;
The Scotsman, “Calman panel member warns of'disastrous' tax changes”, 21 June 2009,http://news.scotsman.com/latestnews/Calmanpanel-member-warns-of.5386447.jp.

32

For a discussion of full devolution see Scottish
Government, Fiscal Autonomy in Scotland: Thecase for change and options for reform (February2009), http://www.scotland.gov.uk/
Publications/2009/02/23092643/0.

33See, for example, Andrew Hughes-Hallett et al,
Options for Scotland’s Future – the Economic
Dimension (David Hume Institute occasional paper
no. 80, November 2008), http://www.davidhume
institute.com/DHI%20Website/publications/hop/
HOP%2080.pdf, and Reform Scotland, Powers for
Growth (March 2008), http://www.reformscotland.
com/index.php/publication/view_details/17/.

34

Reform Scotland, Fiscal Powers (2nd edition)(October 2009), http://www.reformscotland.com/
include/publications/fiscal_powers_2nd_edition.pdf.

35

See Scottish Government, Fiscal Autonomy: Thecase for change and options for reform (February2009), 25-31, http://www.scotland.gov.uk/
Publications/2009/02/23092643/0.

36

Scottish Government, Borrowing Powers:
Information to be shared with the CalmanCommission (March 2009), http://www.scotland.
gov.uk/Topics/a_national_conversation.

37

Paul Krugman, “Growth on the periphery: Second
winds for industrial regions?”, The Allander Series,
University of Strathclyde Business School (2003),
http://www.strath.ac.uk/media/departments/
economics/fairse/media_140850_en.pdf, andC. Paul Hallwood and Ronald MacDonald,
The Political Economy of Financing Scottish
Government: Considering a New Constitutional
Settlement for Scotland (Studies in Fiscal
Federalism and State-Local Finance) (Edward
Elgar Publishing, 2009).

153

A National Conversation – YOUR SCOTLAND, YOUR VOICE

38

39

40

41

Council of Economic Advisers, minutes of Scottish
meeting, 2009, http://www.scotland.gov.uk/
Topics/Economy/Council-Economic-Advisers/
Meetings/2009-meetings/2009-meeting.
HM Treasury, Financial stability,
http://www.hm-treasury.gov.uk/
fin_finstability_index.htm.
Scottish Government, The Hypothetical Scottish
Shares of Revenues and Expenditures from theUnited Kingdom Continental Shelf 2000-2013(June 2008), http://www.scotland.gov.uk/
Publications/2008/06/UKContinentalShelfRevenue,
and Alexander G. Kemp and Linda Stephen,
Expenditures and Revenues from the UKCS –Estimating the hypothetical Scottish Shares 19702005 (North Sea Study Occasional Paper no. 70,
Department of Economics, University of Aberdeen,1999); The Economist, “History repeats itself”
20 June 2008.

OECD Economic Outlook, Number 84, November
2008.

43

Scottish Government, Fiscal Autonomy in Scotland,(February 2009) http://www.scotland.gov.uk/
Publications/2009/02/23092643/0, 18; House ofCommons Library, The Barnett Formula, research
paper 07/91 (December 2007); Independent
Commission on Funding & Finance for Wales,
Funding devolved government in Wales: Barnett &beyond (July 2009), http://wales.gov.uk/icffw/
home/report/firstreport/?lang=en; Hansard HC
vol. 497 col. 292283 (Secretary of State for
Scotland on Barnett formula, 14 October 2009),
http://www.publications.parliament.uk/pa/
cm200809/cmhansrd/cm091014/debtext/
91014-0002.htm#09101435000038; House ofLords, Select Committee on the Barnett Formula,
The Barnett Formula: Report with Evidence (July
2009), HL Paper 139, http://www.publications.
parliament.uk/pa/ld/ldbarnett.htm.

154

The Economist, “Where economics went wrong”
16 July 2009.

46

Mervyn King, speech to the CBI Dinner, Nottingham,
20 January 2009, http://www.bankofengland.co.
uk/publications/speeches/2009/speech372.pdf.

47

Scottish Government, Quarterly Gross Domestic
Product for Scotland and the UK (updated
October 2009), http://www.scotland.gov.uk/
Topics/Statistics/Browse/Economy/GDP, and HM
Treasury, Public Finance Databank (updated
October 2009), http://www.hm-treasury.gov.uk/
psf_statistics.htm.

48

HM Treasury, Reforming financial markets (July
2009), http://www.hm-treasury.gov.
UnitedKingdom/reforming_financial_markets.htm.

49

Bloomberg, “Fortis gets ¤11.2 billion rescue fromgovernments” 28 September 2009,http://www.bloomberg.com/apps/news?pid=206
01087&sid=ahlKDjeO0Lik&refer=home.

50

See Scottish Government, An Oil Fund for
Scotland: Taking forward our National
Conversation (July 2009),
http://www.scotland.gov.uk/Publications/
2009/07/28112701/0.

51

Scottish Government, An Oil Fund for Scotland,(July 2009) 27,
http://www.scotland.gov.uk/Publications/2009/07/28112701/0.

52

Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century, Final Report (June 2009),
94 – 96. http://www.commissionscottishdevolution.
org.uk/.

53

Commission on Scottish Devolution, Evidence fromthe Independent Expert Group to the Commission
on Scottish Devolution: Natural Resource Taxationand Scottish Devolution (June 2009), 12 – 13.
http://www.commissionscottishdevolution.
org.uk/.

54

See Scottish Government, The Government
Economic Strategy (November 2007),
http://www.scotland.gov.uk/Publications/
2007/11/12115041/0.

When a geographical share of North Sea revenues
is included. See GERS 2007/08,

42

44

45

Ministry of Justice, Securing the Future: Proposals
for the efficient and sustainable use of custody inEngland and Wales (December 2007),
http://www.justice.gov.uk/publications/securingthe-future.htm.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

55

56

57

58

59

60

61

62

63

64

See Scottish Consumer Council written responseto the National Conversation (February 2008),
http://www.scotland.gov.uk/Topics/a-nationalconversation/NC-contributions-inds-org.
Scottish Government, The Government Economic
Strategy (November 2007), section B.1 Growth
http://www.scotland.gov.uk/Publications/2007/
11/12115041/0.
Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century, Final Report (June 2009), 6.
http://www.commissionscottishdevolution.org.uk/.

65

CBI, United Kingdom Business Tax: A Compelling
Case for Change (2008), http://www.cbi.org.uk/
pdf/taxsection01.pdf.

66

Office for National Statistics, Labour Force Survey,
http://www.statistics.gov.uk/Cci/nscl.asp?
ID=6621; GERS 2007/08.

67

GERS 2007/08.

68

Office for National Statistics, Workforce Jobs,
http://www.statistics.gov.uk/StatBase/
Analysis.asp?vlnk=132&More=Y.

69

Scottish Government, Annual Population Survey in
Scotland 2007: A Compendium of Labour Market
Statistics (June 2008),
http://www.scotland.gov.uk/Publications/2008/
06/25095306/0.

70

Scottish Government, Scotland’s Global Connections
2007 (March 2009),
http://www.scotland.gov.uk/Topics/
Statistics/Browse/Economy/Exports/GCSData.

71

Scottish Government, Scottish Annual Business
Statistics 2007 (updated August 2009),
http://www.scotland.gov.uk/Topics/Statistics/
16170/4363.

72

Scottish Enterprise, Energy Baseline Study (2009).

73

Scottish Government, The Strategy for the
Financial Services Industry in Scotland, Annual
Report 2009 (May 2009), http://www.scotland.
gov.uk/Publications/2009/05/27091345/0.

74

Scottish Government, Scottish Annual Business
Statistics 2007 (updated August 2009),
http://www.scotland.gov.uk/
Topics/Statistics/16170/4363.

75

Scottish Government, Food and Drink Key Sector
Report (October 2009), http://www.scotland.
gov.uk/Publications/2009/10/23153824/0.

76

Visit Scotland, Tourism in Scotland 2008 (2009),
http://www.visitscotland.org/research_and_statistics/national_facts_and_figures.htm.

Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century, Final Report (June 2009),
173-174. http://www.commissionscottish
devolution.org.uk/.
Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century, Final Report (June 2009), 209.
http://www.commissionscottishdevolution.org.uk/.
See the Educational Institute of Scotland responseto the National Conversation (May 2008),
http://www.scotland.gov.uk/Topics/a-nationalconversation/NC-contributions-inds-org.
Brian Ashcroft and David Bell, The Key to
Economic Success in Scotland (Policy Institute,2007), http://policyinstitute.info/researchpublications/economy/the-key-to-economicsuccess-in-scotland.
See Scottish Consumer Council written response to
the National Conversation (February 2008) and
Scottish Competition Law Forum written responseto the National Conversation (September 2008),
http://www.scotland.gov.uk/Topics/a-nationalconversation/NC-contributions-.hds-org.
Scottish Government, Scotland’s Global Connections
2007 (March 2009), http://www.scotland.gov.uk/
Topics/Statistics/Browse/Economy/Exports/
GCSData.
KPMG Government Services, Administrative
Burdens: HMRC Measurement Project (March 2006),
http://www.hmrc.gov.uk/better-regulation/
kpmg1.pdf.

155

A National Conversation – YOUR SCOTLAND, YOUR VOICE

77

78

Scottish Government, Scottish Annual Business
Statistics 2007, http://www.scotland.gov.uk/
Topics/Statistics/16170/4363; Scottish
Government, Scottish Global Connections 2007
(March 2009),
http://www.scotland.gov.uk/Topics/Statistics/
Browse/Economy/Exports/GCSData. (Creative
industries cannot be precisely defined using
standard industrial codes. For details of approach
used to track the sector see Annex A1, Mapping
the Creative Industries to official dataclassifications, http://www.culture.gov.uk/
images/research/Creative_Industries_Economic_Estimates_Jan_09.pdf.)
Derived from Scottish Enterprise database of life
science companies, http://www.scottishenterprise.com/life_sciences_sector.htm.

79

QS, The QS World University Rankings 2007,
http://www.topuniversities.com/universityrankings/world-university-rankings/2009/results.

80

Higher Education Statistics Agency (HESA),
http://www.hesa.ac.uk/index.php.

81

Scottish Government, Metrics for the Scottish
Research Base (modified March 2009),
http://www.scotland.gov.uk/Topics/BusinessIndustry/science/16607/research-1.

82

83

84

156

OECD Directorate for Education, Education at a
Glance 2009: OECD Indicators,
http://www.oecd.org/document/9/0,3343,en_
2649_39263238_41266761_1_1_1_1,00.html.
Standard and Poor's, “Spain's Basque Country
Affirmed At 'AAA' And Off CreditWatch On
Unique Fiscal Autonomy/Robust Finances;
Outlook Stable” (January 2009),
http://www.euskadi.net/r33-2734/eu/
contenidos/nota_prensa/standard_aaa/eu_st_aaa/adjuntos/03.Standard.pdf; Isabelle Joumard andAristomène Varoudakis, “Options for Reforming
the Spanish Tax System” OECD Economics
Department Working Papers 249, OECD Economics
Department (2000), http://ideas.repec.org/p/
oec/ecoaaa/249-en.html.
See Scottish Government, The Government
Economic Strategy (November 2007),
http://www.scotland.gov.uk/Publications/
2007/11/12115041/0.

85

For example, in 2007 there were 310 persons ofpensionable age to 1,000 persons of working. Thisratio is projected to increase to 399 by 2031.
General Register Office Scotland, Population
Projections Scotland: Population projections bysex, age and administrative area (revised October2008), http://www.gro-scotland.gov.uk/statistics/
publications-and-data/popproj/06pop-projscottishareas/index.html.

86

General Register Office Scotland, Population
Projections Scotland (2008-based) (revised
October 2009), http://www.gro-scotland.gov.uk/
statistics/publications-and-data/popproj/
projected-population-of-scotland-2008-based/index.html.

87

Scottish Broadcasting Commission, Platform for
Success: Final report of the Scottish Broadcasting
Commission (September 2008), 40-45,
http://www.scottishbroadcastingcommission.gov.
uk/about/Final-Report.

88

Scottish Government, Opportunities for
Broadcasting: Taking forward our National
Conversation (September 2009), 17.
http://www.scotland.gov.uk/Publications/2009/09/23125613/0.

89This subject was discussed at the National
Conversation event in Melrose on 28 July 2009.
See http://www.anationalconversation.com.

90

Scottish Government, Poverty and income
inequality in Scotland: 2007/08 (May 2009),
http://www.scotland.gov.uk/Publications/
2009/05/povertyfigures0708.

91

Department of Work and Pensions, Households
Below Average Income: An analysis of the income
distribution, 1994/95 – 2007/08 (May 2009),
http://research.dwp.gov.uk/asd/hbai/hbai2008/
pdf_files/full_hbai09.pdf; European Commission,
Employment and social policy indicators: Indicatorsof the social inclusion strand (last updated April2009), http://epp.eurostat.ec.europa.eu/portal/
page/portal/employment_and_social_policy_
indicators/omc_social_inclusion_and_social_prot
ection/social_inclusion_strand.

92

See, for example, Jonathan Bradshaw, ‘Child
Poverty and Child Outcomes’, Children andSociety, vol. 16, issue 2 (April 2002), 131-140;
Scottish Government, Estimating the Cost of Child
Poverty in Scotland – Approaches and EvidenceA National Conversation – YOUR SCOTLAND, YOUR VOICE(April 2008), http://www.scotland.gov.uk/
Publications/2008/01/28111819/0; and Prince’s
Trust, The Cost of Exclusion: Counting the cost ofyouth disadvantage in the UK (April 2007),
http://www.princes-trust.org.uk/about_the_trust/
what_we_do/research/cost_of_exclusion.aspx.

102

See, for example, Scottish Government, “Scheme
to help preserve cod stocks” 4 February 2008,
http://www.scotland.gov.uk/News/Releases/2008/02/01144700; and Scottish Government, “Fishconservation” 4 April 2008, http://www.scotland.
gov.uk/News/Releases/2008/04/04113754.

93

See Scottish Federation of Housing Associations
written response to the National Conversation(December 2008), http://www.scotland.gov.uk/
Topics/a-national-conversation/NC-contributionsinds-org.

103

Scottish Government, FMD Review (Scotland)2007 (June 2008), http://www.scotland.gov.
UnitedKingdom/Publications/2008/
06/23130049/21.

104
94

See Scottish Government, Achieving Our Potential:
a framework for tackling poverty and income
inequality in Scotland (November 2008),
http://www.scotland.gov.uk/Publications/2008/11/20103815/0.

HM Treasury and DEFRA, A Vision for the Common
Agricultural Policy (December 2005),
http://www.defra.gov.uk/foodfarm/policy/
capreform/documents/vision-for-cap.pdf.

105

See Scottish Association for Public Transport
written response to the National Conversation(October 2008), http://www.scotland.gov.uk/
Topics/a-national-conversation/NC-contributionsinds-org.

106

Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century, Final Report (June 2009), 98.
http://www.commissionscottishdevolution.org.uk/.

107

See Scottish Federation of Housing Associations
written response to the National Conversation(December 2008), http://www.commission
scottishdevolution.org.uk/.

108

Commission on Scottish Devolution, Evidence fromthe Independent Expert Group to the Commission
on Scottish Devolution: Natural Resource Taxationand Scottish Devolution (March 2006),
http://www.commissiononscottishdevolution.org.
uk/uploads/2009-06-06-ieg-natural-resourcetaxation-1.pdf.

95

Scottish Government, Choosing Scotland’s Future(August 2007), 13, http://www.scotland.gov.uk/
Resource/Doc/194791/0052321.pdf.

96See, for example, Commission on Scottish
Devolution, Serving Scotland Better: Scotland andthe United Kingdom in the 21st Century, Final
Report (June 2009), 200-208.
http://www.commissionscottishdevolution.
org.uk/.

97

GERS 2007/08. Estimate includes an illustrative
geographical share of North Sea revenues.

98

Scottish Government, Communities and People:
Taking Forward our National Conversation(November 2009), http://www.scotland.gov.uk/
Topics/a-national-conversation.

99

Department for Work and Pensions, First Release:
Income Related Benefits Estimates of Take-Up in
2007-08 (June 2009), http://www.dwp.gov.uk/
docs/ifd250609benefits.pdf.

109

See Scottish Government, Rural Affairs,
Environment and Climate Change: Taking Forward
our National Conversation (October 2009),
http://www.scotland.gov.uk/Resource/Doc/
288135/0088042.pdf.

For information on the Nordic energy market, see
Nordic Energy, Ten Perspectives on Nordic Energy:
Final Report of the Nordic Energy Perspectives
Project (September 2006), http://www.nordic
energy.net/publications.cfm?id=3-0&path=10.

110

Scottish Government, Action Plan on European
Engagement, Appendix I – European Union Review
and Forward Look: Update on Key Areas forEngagement, http://www.scotland.gov.United
Kingdom/Publications/2009/09/07093832/1.

100

101

See, for example, the National Trust for Scotland
written response to the national Conversation(August 2008), http://www.scotland.gov.uk/
Topics/a-national-conversation/NC-contributionsinds-org.

157

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111

112

113

114

Scotland Act 1998, schedule 5, section G2; section
J1-J5, http://www.opsi.gov.uk/Acts/acts1998/
ukpga_19980046_en_1; see also Scottish
Government, Choosing Scotland’s Future Annex A:
Reservations in the Scotland Act 1998,
http://www.scotland.gov.uk/Publications/
2007/08/13103747/0.
Scottish Government, Communities and People:
Taking Forward our National Conversation(November 2009), http://www.scotland.
gov.uk/Topics/a-national-conversation/
NC-contributions-inds-org.
Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century, Final Report (June 2009),
recommendation 5.13, 187 – 188; recommendation
5.14, 188 – 190; recommendation 5.15, 190 – 191; andrecommendation 5.16, 191 – 192,
http://www.commissionscottishdevolution.org.uk/.
Scottish Parliament official report, 18 December
2008, http://www.scottish.parliament.uk/
business/officialReports/meetingsParliament/
or-08/sor1218-01.htm; Scottish Government,
Scotland’s Road Safety Framework to 2020
(June 2009), http://www.scotland.gov.uk/
Publications/2009/06/08103221/0.

115

Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century, Final Report (June 2009), 193,
http://www.commissionscottishdevolution.org.uk/.

116

See Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century, Final Report (June 2009), Part 4:
Strengthening Co-operation,
http://www.commissionscottishdevolution.org.uk/.

117

Scottish Government, Europe and Foreign Affairs:
Taking forward our National Conversation(September 2009), http://www.scotland.gov.
uk/Publications/2009/09/08143726/0.

118

See Scottish Government, Europe and Foreign
Affairs: Taking forward our National Conversation(September 2009), Annex A – Membership ofInternational Organisations and Ministries ofForeign Affairs,
http://www.scotland.gov.uk/Publications/2009/09/08143726/0.

158

119

Scotland Act 1998, schedule 5, part I, s.9(1);Scotland Act 1998, schedule 5, part II, section B8;
Scotland Act 1998, schedule 5, part II, section B10,
http://www.opsi.gov.uk/acts/acts1998/ukpga_
19980046_en_1.

120

Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century, Final Report (June 2009), 62,
http://www.commissionscottishdevolution.org.uk/.

121

Commission on Scottish Devolution, Serving
Scotland Better: Scotland and the United Kingdom
in the 21st Century, Final Report (June 2009), 124,
http://www.commissionscottishdevolution.org.uk/.

122

See, for example, Scottish Government, Choosing
Scotland’s Future (August 2007), 3, 8-9,
http://www.scotland.gov.uk/Publications/2007/
08/13103747/0.

123

Scotland Act 1998, ss. 56-57.

124

Ministry of Justice, Governance of Britain – War
Powers and Treaties: Limiting Executive Power(October 2007 – March 2008),
http://www.justice.gov.uk/consultations/
cp2607.htm.

125

HM Treasury, Public Expenditure Statistical
Analyses 2009 (July 2009), Table 4.2, ‘Public
sector expenditure on services by function, 198788 to 2009-09’, 66, http://www.hm-treasury.
gov.uk/pespub_pesa09.htm.

126

See Hansard HC Deb, 9 September 2009, c
2000W and HC Deb, 22 October 2009, c 1634W;
GERS 2006/07, Table 6.4: http://www.scotland.
gov.uk/Resource/Doc/228544/0061858.pdf.

127

Ministry of Defence, UK Defence Statistics 2009
(September 2009), Table 2.2, ‘Location of service
and personnel in the United Kingdom’, 51,
http://www.dasa.mod.uk/modintranet/UKDS/
UKDS2009/pdf/UKDS2009.pdf.

128

Scottish Government, Scottish Social Attitudes
Survey 2007 Core Module Report 1: Attitudes toGovernment in Scotland (May 2008),
http://www.scotland.gov.uk/Publications/
2008/05/16095134/13.

A National Conversation – YOUR SCOTLAND, YOUR VOICE

129

Scottish Office, Shaping Scotland’s Parliament:
Report of the Consultative Steering Group on the
Scottish Parliament (December 1998),
http://www.scotland.gov.United Kingdom/library/
documents-w5/rcsg-00.htm.

130Electoral Commission, Scottish Elections 2007: The
independent review of the Scottish Parliament andlocal government elections 3 July 2007 (October2007), http://www.electoralcommission.org.uk/
document-summary?assetid=13223.

131

Scottish Government, Scottish Social Attitudes
Survey 2007 Core Module Report 1: Attitudes toGovernment in Scotland (May 2008),
http://www.scotland.gov.uk/Publications/2008/
05/16095134/13.

159

A National Conversation – YOUR SCOTLAND, YOUR VOICE“

Scotland is steadily and surely shrugging off its
unenviable reputation as the sick man of Europe.
To do that has involved taking courageousdecisions and backing these up with necessary
legislation – such as leading the way in banningsmoking in enclosed public spaces; delivering freepersonal care; and our current legislative proposals
which include measures to further reduce smoking,such as banning cigarette vending machines, and to
tackle alcohol misuse through the introduction ofminimum pricing. I am absolutely certain that we
can and should continue to lead the way in taking
appropriate measures to improve the health of thepeople of Scotland, now and in the future. Only
with full independent powers and responsibilities
will we able to do so. This includes control overtaxation and benefits which are vital if we are to
reduce poverty and low income, and eliminate thehealth inequalities which plague Scotland. Suchpowers will enable us to more fully determine andshape the continuing improvements we need if
Scotland’s people are to live longer, healthier lives.

”
Minister for Public Health and Sport160

A National Conversation – YOUR SCOTLAND, YOUR VOICE161

A National Conversation – YOUR SCOTLAND, YOUR VOICE“

Scotland’s achievements for housing sincedevolution in 1999 are significant. I am
proud to serve in a Government, which,alongside our partners in local governmentand beyond, is part of this dynamic shift.
But current constitutional arrangements
mean that crucial barriers to our progressstill remain, with key issues like taxation,social security benefits and financial andbusiness regulation remaining reserved toWestminster. We need responsibility for all
policy areas impacting on housing todeliver the homes and communities that
Scotland needs and deserves. Independence
can bring about this vital change.

”

Minister for Housing and Communities

162

A National Conversation – YOUR SCOTLAND, YOUR VOICE163

A National Conversation – YOUR SCOTLAND, YOUR VOICE164A National Conversation – YOUR SCOTLAND, YOUR VOICE“The Scottish Government continues toencourage, nurture and build a supportive
business environment. We recognise that
effective businesses are the key to delivering
accelerated and sustainable economic
growth. With greater autonomy and in an
independent Scotland, we would have theopportunity to put in place new initiatives
such as lower corporation tax to givecompanies in Scotland a new competitiveedge and to attract new businesses to
Scotland. Constitutional reform would also
give Scotland responsibility for developing
our vast energy resources, including our oil
and gas reserves and our huge potential inrenewables and carbon capture.

”
Minister for Enterprise,
Energy and Tourism

165

A National Conversation – YOUR SCOTLAND, YOUR VOICE166

A National Conversation – YOUR SCOTLAND, YOUR VOICE“

Scotland’s ambitious and comprehensive
climate change legislation establishes thiscountry as a global leader in developing a
low carbon economy. We recognise thecontribution that Scotland must make toreverse the carbon polluting impacts of thefirst industrial revolution and the economic
opportunities for those who move quickly
into the next. We are doing all we canwithin the powers available to us totransform our domestic performance andto influence the conduct of international
negotiations. With the powers properly
available to an independent nation state,
we would enhance our international
contribution and move more rapidly
towards the more successful and just low
carbon economy we want to see.

”
Minister for Transport,
Infrastructure, and Climate Change

167

A National Conversation – YOUR SCOTLAND, YOUR VOICE“To create the sort of country of which we can all
be proud to be a part, we need an education
system within which our children and young
people will be equipped to succeed personally,socially and economically in the modern world.
This goes beyond education. For example, aspectsof the UK tax credit and benefits system impact
directly on the lives of some of Scotland’s mostvulnerable children and young people, such as
those with disabilities. Constitutional reform willallow us to fully align all of Scotland’s public
service systems to work with the third sector,
communities and parents to help enable current
and future generations to thrive.

”

Minister for Schools and Skills

168

A National Conversation – YOUR SCOTLAND, YOUR VOICE169

A National Conversation – YOUR SCOTLAND, YOUR VOICE170

A National Conversation – YOUR SCOTLAND, YOUR VOICE“This Government has recently published the Early Years
Framework, making clear our commitment to supportingchildren and their families.
While we are making progress in many areas, including
setting out how we intend to improve accessibility andflexibility of childcare, the Scottish Government has
limited leverage for change on the issue of affordability.
Under the current constitutional settlement, tax credits
which support parents with the costs of childcare can becomplex and bureaucratic. Instead, we want to see asingle, accessible and progressive means of supporting
parents with the cost of childcare, appropriate to theneeds of the people of Scotland.
We do not want Scottish solutions undermined andobstructed by monolithic UK-wide systems, which are notresponsive to Scotland’s specific needs. We wantaccessible and affordable childcare, helping parents backin to work and boosting our economy.

”
Minister for Children
and Early Years

171

A National Conversation – YOUR SCOTLAND, YOUR VOICE“

Scottish Governments have made large
scale and radical reforms to the criminal
justice system to successfully address theserious challenges facing our communities.
But there are important gaps in our powers
and responsibilities. These gaps hinder ourefforts to produce joined up policies which
fully address Scottish needs andcircumstances. Further constitutional
reform, especially in the areas such as
firearms and drink driving, would allow us
to tackle these issues directly and at ourown hand.

”

Minister for Community Safety172

A National Conversation – YOUR SCOTLAND, YOUR VOICE173

A National Conversation – YOUR SCOTLAND, YOUR VOICE“

nd’s
ent is part of Scotla
Our natural environm
character. It sustains
unique and distinctd, supports families anbusinesses and jobsdod on our plates ancommunities, puts fo
omic
on
ec
l for sustainable
offers huge potentia
issure it contributes thgrowth. We could en
ful
lp
he
we didn’t have unand so much more if
ns and actions.
limits on our ambitio

ent
Minister for Environm

174”

A National Conversation – YOUR SCOTLAND, YOUR VOICE175

A National Conversation – YOUR SCOTLAND, YOUR VOICE

176

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