Scottish Government
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Powers for a purpose
FM calls on STUC to engage with Smith Commission for true home rule for Scotland.
The First Minister Alex Salmond today called on members of the STUC to make their voices heard through the Smith Commission to ensure that the ‘reality of further devolution matches the rhetoric’ of the referendum campaign.
Last week the Scottish Government published its submission to the Smith Commission making it clear that true home rule for Scotland should include full powers over all domestic spending, including economic levers such as employment policy.
Speaking at the STUC’s major conference, Decent Work, Dignified Lives, the First Minister said that it is clear there is an overwhelming desire in Scotland for change. He also said:
“We want to make Scotland a wealthier and fairer society. And as part of that, we have to ensure that our welfare, employment and taxation powers work in harmony with each other. We seek those powers for a purpose.
“In 1997 Donald Dewar came up with a stroke of genius: he reversed the previous logic of devolution and specified what was to be reserved rather than what was to be devolved. As a result what took five years of fruitless legislation in the 1970s took five weeks to complete its key parliamentary stages in 1998.
“We should now demand the same approach to financial powers. All taxation should be devolved and Westminster paid an allowance for these functions that are left reserved.
“For example, we fund more than 25,000 modern apprenticeships each year, but the savings from lower unemployment benefit go straight to Westminster. Greater powers over welfare and taxation – true home rule within the United Kingdom – would allow us to retain those tax revenues and welfare savings. Scotland would reap the benefits of our social investments.
“The referendum campaign made it clear that there is a massive desire in Scotland for change. We need to ensure that the reality of further devolution matches the rhetoric of the campaign.
“The promise of additional powers for Scotland gives us an important chance to shape Scotland for the better. It is important that the process is as inclusive as possible. So all of the political parties have a responsibility to involve our empowered, engaged and energised electorate. I strongly encourage all of you – as unions and as individuals – to get involved in making your views known to the Smith Commission.”
Notes To Editors
For more information on the Scottish Government’s proposals to the Smith Commission, please visit:http://news.scotland.gov.uk/News/Powers-for-a-purpose-113d.aspx
To view the Scottish Government’s proposal to the Smith Commission please visit:www.scotland.gov.uk/morepowers
The Scottish Government has taken a principles-led approach to developing its proposals. It starts from the principle, enshrined in the Scotland Act 1998, that matters should be devolved unless there is a good reason for them to be reserved.
This includes all tax powers. The Scottish Government proposes three tests for proposals for further powers for the Scottish Parliament. In addition to passing the good governance tests of coherence, effectiveness and transparency, they must:
- Respect the sovereignty of the people of Scotland and enhance financial and democratic accountability to them
- Transform the ability of the Scottish Parliament and Government to create a more prosperous country, better tackle inequality and speak with a stronger voice in the EU on matters of devolved competence
- Be fair and equitable in the allocation of resources, risks and rewards