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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 28 June 2025
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Displaying 1696 contributions

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Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Claire Baker

The committee has heard compelling evidence of the impact that earnings arrestment has on people—a survey was done by one of our witnesses. You mentioned COSLA; it does affect council tax debt and the families concerned are on pretty low incomes. To put a bit of ease into that system would be helpful—probably more helpful than what the mental health moratorium could provide at this point in time.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Claire Baker

That is an interesting line of questioning from Colin Smyth. I hope that the minister will reflect on the fact that the criteria that have been suggested for Scotland are very narrow, while those for England and Wales are a bit broader. They are not much broader, but they include people who are receiving crisis treatment, not just compulsory treatment.

I had a meeting with One Parent Families Scotland and the Poverty Alliance, and the people I met there would not be able to access the scheme, even though they feel that they are under significant mental health pressure because they are in debt. The scheme would not apply to them because of the narrowness of the criteria that it uses.

We could look at the council tax legislation. You said that you wanted the moratorium to be consistent with other legislation. My understanding is that the council tax legislation uses the term “severely mentally impaired”, which sets quite a high threshold, but not as high as that which the Government has suggested. I hope that the minister will reflect on the fact that the proposal uses a very narrow definition for access to the scheme.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Claire Baker

Does such a public register exist for anybody else who has experienced debt problems, or would it just be for people who have accessed a mental health moratorium? At the moment, when people have unmanageable debts, how would a creditor know that the person is in that situation?

Economy and Fair Work Committee

Just Transition (North-east and Moray)

Meeting date: 29 November 2023

Claire Baker

I ask for a brief answer as well.

Economy and Fair Work Committee

Just Transition (North-east and Moray)

Meeting date: 29 November 2023

Claire Baker

Thank you—that is helpful.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Claire Baker

I have two brief questions about the moratorium before I bring in Gordon MacDonald. The consultation suggests that the Government is considering a public register of people who have participated in a mental health moratorium. Will you share with the committee the reasoning behind that?

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Claire Baker

Will you expand a bit on that? We have heard concerns about someone who decides to access a mental health moratorium. Other members have spoken about the stigma around mental health. Given that it would be a public register, what would that mean for a person’s future, perhaps when they are looking for other financial support? Are you not concerned that people who access a mental health moratorium will be on a public register for everybody to see? There are concerns around that.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Claire Baker

Good morning, and welcome to the 30th meeting in 2023 of the Economy and Fair Work Committee. Our first item of business is the final evidence session on the Bankruptcy and Diligence (Scotland) Bill at stage 1.

I welcome Tom Arthur, the Minister for Community Wealth and Public Finance, who is joined by Richard Dennis, the accountant in bankruptcy and agency chief executive, and James Clelland, solicitor with the Scottish Government. I also welcome Douglas Lumsden MSP, who is attending the public part of this meeting.

I invite the minister to make a short opening statement.

Economy and Fair Work Committee

Just Transition (North-east and Moray)

Meeting date: 29 November 2023

Claire Baker

Does anyone else want to comment in response to that question? I see that Daria Shapovalova does. As a way of organising the meeting, Daria, we will direct our questions initially to you, and you can then invite the other witnesses to comment if you wish. That will make it easier.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Claire Baker

I have a couple of questions on diligence reform. We received some representation about the arrestment reforms in the bill. The banking sector was particularly concerned because the bill would mean that banks and employers would have to tell creditors why attempts to arrest a debtor’s assets had been unsuccessful. That would change the current situation, in which they do not have to inform creditors. They are concerned about extra costs and wonder whether, rather than requiring arrestees always to provide a reason why an arrestment has failed, the Government would consider arrestees being required to respond only if they are asked why an arrestment has failed. I do not know what discussions or reflections the Government has had around that.

10:15