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Chamber and committees

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 14 August 2025
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Displaying 893 contributions

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Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Craig Hoy

You say that the variation is not particularly significant, so you would not have concerns, but someone in Scotland who earns ÂŁ50,000 will pay ÂŁ1,489.10 more in tax than someone in the rest of the UK who earns ÂŁ50,000. Given that there is always compliance, evasion and avoidance, at what level of variance would you start to have significant concerns and think that you would need to probe deeper into the data?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Craig Hoy

The Scottish Government has taken the decision to raise tax on middle-income earners upwards. You identified high-net-worth individuals or millionaires. Let us take the example of a millionaire with a house in North Berwick and a house in Berwick-upon-Tweed who works in London and Edinburgh. That is a conceivable case. Is that now a grey area that concerns you?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Craig Hoy

My first question relates to the comment in the NAO report that

“HMRC has limited performance data available about its compliance activities in Scotland.”

Why is that the case, and what, if anything, is being done to try to rectify the situation?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Craig Hoy

If I fly in and out of the country from Buenos Aires, you can probably monitor that and count the days much more easily than if I go between North Berwick and Berwick-upon-Tweed. How do you monitor that? Do you just take what people say at face value and take their word for it?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Craig Hoy

Thank you.

Public Audit Committee

Section 22 Report: “The 2020/21 audit of South Lanarkshire College”

Meeting date: 12 May 2022

Craig Hoy

One would assume that the board is fully aware of its role and responsibilities for good governance. The board was appointed on 4 November but members were not fully inducted until the beginning of February 2022. Will you talk me through what the normal induction process would cover and what the risks are of having board members who have not been through that process?

Public Audit Committee

Section 22 Report: “The 2020/21 audit of South Lanarkshire College”

Meeting date: 12 May 2022

Craig Hoy

Hindsight is a wonderful thing, but given the seriousness of the issues that were at play in the college, would not it have been far better for the college to have made sure that the board was fully aware of its roles and responsibilities at that stage?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 28 April 2022

Craig Hoy

Let us bypass some of what then happened and fast forward to June 2018. It is reported in annex B of paper 3 that FMEL asked the Scottish Government to intervene to instruct CMAL to take part in an expert determination process to resolve the growing dispute between the procurement agency and the yard. FMEL managers said that CMAL did not do that because CMAL had something over ministers—that they had forced CMAL to do the deal with Ferguson Marine in the first place.

Reflecting on your report’s account of that period, FMEL’s management says that you have accepted the Government’s “false narrative” and “fabulous propaganda” that the failure of the project was supposedly down to FMEL and not down to flaws that flowed from the procurement and design process being rushed because ministers wanted McColl’s yard to be given the contract and they wanted that to be done quickly.

In his submission, Mr McColl goes on to say that the Government did not intervene to instruct CMAL to take part in an expert determination process because that would have been “very damaging” to the Government, because CMAL’s board had threatened “to resign en masse” and blow the lid off what really happened in relation to the awarding of the contract.

Have you seen any evidence of that? Rather than going down the route of an EDP, would that not have been another point at which the Government could have revisited the procurement and delivery of the ferries?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 28 April 2022

Craig Hoy

There was a final point when the procurement process could have been reopened and a different decision could have been taken, which was when the Government determined that it would nationalise the yard. In your report, you say that the decision to nationalise the yard was taken

“without a full and detailed understanding of the amount of work required to complete the vessels, the likely costs, or the significant operational challenges at the shipyard.”

Again, the Government pressed on regardless. How concerned are you that the Government proceeded with nationalisation on that basis? What were the financial consequences and the consequences relating to the on-going construction of the vessels?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 28 April 2022

Craig Hoy

I have a final question. Last week, you said that one material witness from FMEL who wanted to give evidence as part of your audit and investigation could not do so because they had signed a gagging order with the Scottish Government. If the Scottish Government agreed to lift the non-disclosure agreements, would you be willing to reopen your lines of inquiry and produce an annex to your report?