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While identifying several necessary changes, the Scottish Parliament committee examining the Scotland Bill has fallen far short of shaping a Bill that will benefit the people of Scotland, External Affairs Minister Fiona Hyslop said in response to the committee's report published today.

However, the Minister noted that the committee has recognised that the incoming Scottish Parliament will need to examine the Bill again before giving its final consent.

Ms Hyslop said:

"The committee's report has not examined seriously the issues this country faces: economic growth, jobs, poverty and benefits, the environment, energy. The Scotland Bill does little or nothing to equip the Scottish Parliament to address these issues. The Committee has chosen to ignore these big questions and has concentrated on defending the narrow and potentially damaging proposals in the Bill.

"This Government has a bolder vision for Scotland in terms of how we are governed and what we can achieve. Along with many others, we have argued for the full financial responsibility that would provide the meaningful levers we need to boost our economy.

"It is disappointing that the committee has instead supported the UK Government's proposals - for limited changes to the funding mechanism for Scotland, set and controlled by the UK Government, which could reduce further the resources available to this nation. The Committee has also - unbelievably - accepted that the Scottish budget should meet the costs of implementing these UK changes - costs which have yet to be established.

"I welcome some aspects of the Committee's report. As a result of our constructive suggestions last year for meaningful and flexible borrowing powers, including the ability to issue bonds, they have adopted the Government's stance on a few issues - greater borrowing powers; protecting the regulation of social landlords in Scotland; and resisting a role for UK Ministers in implementing international obligations in devolved areas.

"However, I very much regret that the Committee has failed to call for greater legislative competence for the Scottish Parliament. It has failed, indeed, to defend the Parliament's current responsibilities. The Government will be calling on the Scottish Parliament to support a fuller range of powers and responsibilities to improve Scotland's economic performance and promote sustainable economic growth, and to resist attempts to remove important powers from Scotland to London.

"The Committee did conclude that the incoming Scottish Parliament must look again at this Bill as it progresses, and I welcome that. However, as it stands, the financial arrangements that will underpin the Bill are being left to the Treasury to determine at some point in the future. Agreeing to the Bill without that information would be the equivalent of signing a blank cheque. Therefore the motion we are lodging today calls for the Bill to be amended to require the further consent of the Scottish Parliament before individual sections are brought into force."

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