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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 20 April 2025
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Displaying 1169 contributions

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Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

Yes. In the longer term, given the timescales, I think that any translation into legislation of the outcome of the stage 3 review will be a matter for the next session of Parliament. I imagine that, in the next session, Parliament will want to consider whether there is a wider need to update the language in the primary legislation on statutory debt solutions if such a need is reflected in the review.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

The position that we have set out in the consultation is that we would not want to do that, but we are asking the question.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

We have had engagement specifically with representatives in the sector. We recognise that the reform places an additional requirement, but we think that we can work to ensure that the process is suitably streamlined, efficient and straightforward, so that the policy’s intended benefits can be realised. Richard Dennis might want to comment on the engagement that we have had.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

I am conscious of those calls. As you highlighted, we have already made changes around earnings arrestment for this year. I am content to give further consideration to that, through engagement. We can make changes to the threshold through existing powers in secondary legislation.

I am conscious that various proposals have been brought forward. It is about understanding the underlying rationale for a particular amount and how it could be related more widely to other factors. I am happy to give that consideration.

COSLA had flagged up that particular point in correspondence with the committee. I want to ensure that, in taking forward consideration of the matter, I hear the broadest range of voices and opinions. No one would be unsympathetic to the policy intent, and we are looking to explore what, practically, could be done to increase flexibilities and variance.

However, I want to ensure that we still have a system that is efficient and straightforward to administer and does not lead to unintended consequences. I particularly recognise the perspective of local authorities, as one of the primary users of that particular diligence. We must take their opinions and views into account as well.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

I ask Richard Dennis to come in on that.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

We set out a proposal in the consultation for a process that would begin with the mental health professionals who would already be supporting the person. The process would go from the mental health professional, to the money adviser and then the AIB. We seek further views on that as part of the consultation.

We are seeking to provide clarity and clear definitions on eligibility, although it is important to recognise that there are also other provisions within our existing suite of support, such as the existing moratorium. The mental health moratorium that is proposed in the draft consultation would be for those in the most acute and severe mental crisis, who would be subject to the compulsory treatment provisions that are set out in statute. The proposed process by which that would be effected is set out in the consultation although, as I said earlier, that is subject to the bill and the regulations being approved by the Parliament. We would of course reflect, review and continue to engage on the effectiveness of the scheme, and we would be open to further consideration of changes in light of experience.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

As the committee has heard in evidence at previous meetings, there is a recognition that the number of people who are likely to make use of the mental health moratorium is relatively small.

The rationale on alignment with existing statutory provisions, including those under the Mental Health (Care and Treatment) (Scotland) Act 2003, comes from wanting to ensure clarity and being able to start small but then, through the opportunity of learning, further review and reflection, potentially expanding or amending the criteria. That approach, which is afforded to us by using regulations, has been welcomed by and has had a positive reception from those in the debt advice community. I would not want to say that the process will necessarily continue like that ad infinitum. However, as a starting point, having the new provisions that we will introduce aligning with the existing statutory provisions provides clarity on eligibility.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

The consultation closes on 22 January 2024. It is unlikely that we will be able to complete the independent analysis process ahead of being able to share the draft regulations. We would certainly endeavour to do that and it might be possible. We would be able to provide a summary of the consultation responses, which will help to inform the draft regulations.

Of course, engagement with the committee will further inform what we propose as final regulations. I am open to further public consultation on the draft regulations, beyond simply sharing them with the committee, to explore those matters in further detail. We have set out a series of proposals that reflect the recommendations of the expert working group and we are seeking further views on that through the public consultation that we launched earlier this month.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

We are not going to artificially compress the timescale because that would prevent us from taking a fully considered view about what regulations are to be laid before the Parliament. We are trying to ensure that the committee has as early sight as possible of the draft regulations and we hope that the analysis will be completed, published and available to inform the committee’s deliberations. However, preliminary analysis of the responses to the consultation will inform the draft regulations that we introduce.

My concern is to ensure that what up to this point has been a highly collaborative process, informed by expert opinion, continues as we work towards the preparation of the regulations, informed by the consultation on the draft regulations that we bring before the committee, with the potential for further public consultation, and by input from the committee. From that cumulative process, we will be able to lay before the Parliament for approval a final set of regulations that can command the widest support and reflect all the engagement that will have been undertaken.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

We are consulting for that very reason. If I were to say that we had already decided what we would do—