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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 26 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: 13 September 2023

Claire Baker

Our next item of business is a stage 1 evidence-taking session on the general principles of the Bankruptcy and Diligence (Scotland) Bill. The bill aims to make changes to the law around bankruptcy and diligence by implementing various stakeholder-led recommendations. I thank all those who replied to the committee鈥檚 call for evidence. We are grateful for the submissions, which will help shape our consideration of the bill.

I welcome Dr Alisdair MacPherson, who is a committee member of the banking, company and insolvency law sub-committee of the Law Society of Scotland; Katie McLachlan, who is a licensed personal insolvency practitioner in insolvency and restructuring, from the Association of Business Recovery Professionals, known as R3; David Menzies, who is director of practice at the Institute of Chartered Accountants of Scotland; and Barry Mochan, who is a board member at the Insolvency Practitioners Association. As always, it will be helpful if members and witnesses keep their questions and answers as concise as possible. I will open with questions to Alisdair MacPherson, but I will give everyone the chance to address them.

The Government is adopting a three-stage approach to reforms in this area. I mentioned the responses that we have had to the bill; many talk about other areas that go beyond what is in the bill and other improvements that they would like to see in this field of work. The Government has argued that it is trying to strike a balance between regulatory and statutory duties. Alisdair, does the Law Society have a view on whether the Government has got that balance right? Does the bill cover the areas that should be statutory, and do you agree that other areas that people are arguing should be included in the bill are better suited to regulations?

Economy and Fair Work Committee

Interests

Meeting date: 13 September 2023

Claire Baker

Thank you. Kevin Stewart, do you have any relevant interests to declare?

Economy and Fair Work Committee

Interests

Meeting date: 13 September 2023

Claire Baker

Thank you. Finally, I invite Brian Whittle to declare any relevant interests.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 13 September 2023

Claire Baker

Before I bring in Maggie Chapman, I have a point to make. What we are looking at in considering the bill is simply agreeing to the principle of a mental health moratorium. We are not agreeing the detail of it. Some of the correspondents said that it was difficult to give an authoritative view on the bill because they do not know what the scheme will actually look like.

10:00  

You have mentioned the breathing space scheme in England and Wales and the working group seems to be heading towards a model that is very similar to that. Why do we not just introduce the breathing space scheme so that we all know what we will be voting on? Are there any problems with that scheme? Alisdair MacPherson, you seem to be familiar with it: are there problems? Are there likely to be any changes to what we have in Scotland? We seem to be holding up progress and I am not sure what the point of that is.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 13 September 2023

Claire Baker

Therefore, if a creditor receives nothing back from the bank, there is just an assumption that there is not enough money but there is no confirmation that that is the situation. Is that how it operates at the moment?

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 13 September 2023

Claire Baker

With regard to the bill鈥檚 timescales, there seems to be support for the bill, with many people being largely happy with it as it is. However, if more significant work needs to be done on it, that will take time. You recognise that people are living through a difficult situation; while we wait for the solutions to come, some are having to live through the current situation. Are you confident that, given the timescales involved, people will benefit enough from this? I am taking into account the fact that you want things to be thorough and you want the right kind of legislation, but is there also a recognition of the need for effective change in this area to support people in very difficult situations?

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 13 September 2023

Claire Baker

I am sorry, but we might discuss that in private session. The issue that we face at the moment is whether the bill should include the principle of a mental health moratorium, but we do not know the detail. Would there be any merit at this stage in writing to the minister? It is unclear whether the Government intends to include anything beyond what is statutory, but we can discuss that when we come to private session.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 13 September 2023

Claire Baker

I think that we have a note that said that ICAS and the Insolvency Practitioners Association were not going to particularly comment on the diligence reform, so we can maybe focus on Katie McLachlan and Alisdair MacPherson.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 13 September 2023

Claire Baker

Thank you. I call Colin Smyth.

Economy and Fair Work Committee

Interests

Meeting date: 13 September 2023

Claire Baker

Thank you. I now invite Ash Regan to declare any relevant interests.