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For related report, see HCP 542 (ISBN 9780215047489)
The defence industry is very important to the Scottish economy, providing more than 15,000 jobs and contributing between £ 1.8 billion-£2 billion annually to the Scottish economy. Those firms or subsidiaries dependent on British Army, RAF or Royal Navy orders under Article 346 of the European Union Treaties (which allow the UK to reserve certain orders to national suppliers) will lose such work, which will be transferred to other parts of the UK. It is also recognised that the market offered to defence suppliers in a separate Scotland will be negligible in size compared to that of the United Kingdom as a whole and the joint projects in which it participates. A separate Scotland, particularly one which has deported the Royal Navy's submarine force and potentially enforced unilateral nuclear disarmament upon the United Kingdom will not necessarily be seen as a reliable ally. Similarly a future separate Scotland's access to secret technology owned elsewhere is unlikely to be automatic. There will not necessarily be the maximum security clearance necessary to allow export to, or collaboration with, US or other suppliers or purchasers. A separate Scotland is unlikely to be able to fund the level of research and development necessary to maintain Scottish companies at the cutting edge of technology. The defence industry in Scotland is designed to meet the needs of its main customer-the Ministry of Defence. It is essential that the Scottish Government spells out, as quickly as possible, its intentions for procurement and research budgets, and foreign and defence policies.
Today Scotland's interests in the European Union are represented by the UK which, as one of the largest Member States, has the voting power and leverage to influence decisions to the benefit of Scotland. In leaving the UK, a separate Scotland would lose this advantage. A separate Scotland is likely to have its application to join the EU accepted - but not within the self-imposed timetable of 18 months, nor with the terms, that the Scottish Government is proposing. The proposal that Article 48 of the Treaty on European Union could be used to provide for Scottish membership is not supported by any other EU state; senior EU figures have ruled it out and it is opposed by the United Kingdom Government - which would, under this process, have to initiate it. The additional and exceptional demand for the ability to discriminate against UK students with respect to tuition fees would be voted against by the UK Government and is therefore almost certain not to be met. Furthermore, insufficient attention has been paid to the need to negotiate the UK's retention of VAT zero rating on a wide range of goods. As a separate Member State, not only would Scotland cease to benefit from the UK rebate (currently worth in the region of £300 million per year to Scotland) but it would have to contribute to it. In these circumstances Scottish voters need a more realistic alternative perspective of how joining the EU would be achieved, and what its likely terms and timetable would be.
This is the third report from the Scottish Affairs Committee on blacklisting in the construction industry in Scotland. The earlier interim reports published as 9th report, session 2012-13 (HC 1071, ISBN 9780215056832) and 6th report, session 2013-14 (HC 543, ISBN 9780215069535). The 9th report focused specifically on the work of The Consulting Association (TCA) and considered the issue of compensation for those workers who had been blacklisted. Significant progress has been made in highlighting and addressing issues relating to blacklisting: the Information Commissioner's Office (ICO) has launched its own investigation; many victims of blacklisting are bringing individual case to the High Court and a new compensation scheme, the Construction Workers Compensation Scheme (TCWCS), for blacklisted workers has been launched by eight of the companies that used the services of TCA. The 6th report aimed to identify ways of moving forward, both by addressing the crimes of the past and by identifying rules and structures to prevent such widespread and systematic exclusion of workers from employment from ever happening again. In this third interim report the Committee welcomes the significant progress which has been made in both revealing the practice of blacklisting, and in seeking redress for the victims, and families of the victims, of this odious practice. The Committee will continue to explore what more could be done to redress the crimes of the past and to ensure that reform in the industry to eradicate this practice is genuine, effective and comprehensive in its effects.
The Scottish Affairs Committee calls for the repeal of the Bedroom Tax. While this is being considered, the Committee calls on the Government to suspend application of the Bedroom Tax for all those tenants to whom a reasonable alternative offer cannot be made. There are not enough smaller houses available for tenants to transfer into. The lack of any alternative offers means that tenants have no choice but to go into arrears if they simply cannot afford the extra costs. Other amendments proposed for the operation of the tax include: exemptions for those disabled people who require a room to store or use equipment or aids; non application where it would be financially perverse to do so - eg where removing fixed aids and adaptations, and then reinstalling them in a smaller home, would be more expensive than the savings over two years; all children of secondary school age should be allowed a bedroom of their own to allow quiet study; all disabled children, of whatever age, should have a bedroom of their own. The Committee also calls for changes to the system of Discretionary Housing Payments, which have been designed by the Government to mitigate the worst impacts of the Bedroom Tax. There should be a standard nationwide entitlement system, across the UK as a whole, rather than the present postcode lottery. The UK and Scottish Governments should make longer term commitments to the provision of DHP payments in order to allow local authorities to plan and structure their budgets.
Incorporating HC 139-xv - HC 139-xx, session 2012-13 and follows on from HC 139-II, session 2012-13 (ISBN 9780215052551). For related report, see HCP 542 (ISBN 9780215047489)
The major construction firms that established and funded a systematic blacklist of construction industry workers appear to be continuing to avoid taking full responsibility for their actions. While the blacklist was not initially illegal, it was always morally indefensible, and the companies involved continued to use it after it had become illegal. The organisation set up to create, maintain and operate the blacklist - the Consulting Association (TCA)- appears to have been largely established by Sir Robert McAlpine Ltd. Other major subscribers included Skanska and Balfour Beatty: the Committee has so far taken evidence from these three firms and intends to call more of those involved. Through the TCA the companies set up a structure which allowed them to submit names and information on workers they deemed to be unsuitable, workers who raised legitimate grievances over health and safety and other industrial issues, to a central list and to check prospective employees, or the employees of subcontractors on their sites, against this list. The emphasis throughout was on secrecy and no acknowledgement that such a system existed. The Committee's inquiry so far has raised a series of complex questions, particularly about compensation, which the Committee will consider in the next phase of the inquiry. The Committee says the Information Commissioner's Office, which raided TCA in 2009 and ultimately caused it to be closed down, should do more and work with the trade unions to locate and notify people that were on the blacklist, as they cannot begin to seek redress without this information
The local authority and power company response to the severe weather of 2013 in Kintyre, Arran and Wigtownshire shows that important lessons have been learned and improvements put in place since the Committee last reported on this issue, in August 2012. The Committee is satisfied that all three councils affected by the severe weather have in place robust contingency planning for emergencies, which proved effective. Crucially, the compensation for those left without power - with all the damage that can cause - has been brought into line with the rest of the country. The Committee's conclusion's included that: emergency plans should prioritise accessing mobile phone base stations to restore lost signals; the A83 is a vital artery for the Kintyre peninsula and the decision to upgrade it to a trunk road is an important one, as this will allow the resources of Transport Scotland to be deployed to keep it open during extreme weather conditions; the new Hunterston-Kintyre transmission line will mean there will be two transmission lines serving the Kintyre peninsula, so the failure of one of the lines will not see Kintyre & Arran cut off from the power network; and caring for vulnerable members of the community is another statutory responsibility of local authorities: local authorities have done a great deal of work to expand their databases and identify those who are in need but councils should also do more to support the community groups that are engaging local people in the process of caring for the vulnerable
The Scottish Government's plan to negate the future effects of the bedroom tax in Scotland is inadequate, and further that the route they have identified - using Discretionary Housing Payments (DHPs) - is flawed. The Committee has taken evidence in Scotland and Westminster on the impacts of the bedroom tax but also on the best and most effective ways of mitigating those effects. The Committee reiterates its call for the Scottish Government to meet all the bedroom tax charges for Scottish tenants, write off all the arrears, and refund all the payments that have been made, as the only fair and workable way forward.