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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 11 August 2025
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Displaying 1169 contributions

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Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

Yes. In the longer term, given the timescales, I think that any translation into legislation of the outcome of the stage 3 review will be a matter for the next session of Parliament. I imagine that, in the next session, Parliament will want to consider whether there is a wider need to update the language in the primary legislation on statutory debt solutions if such a need is reflected in the review.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

The position that we have set out in the consultation is that we would not want to do that, but we are asking the question.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

We have had engagement specifically with representatives in the sector. We recognise that the reform places an additional requirement, but we think that we can work to ensure that the process is suitably streamlined, efficient and straightforward, so that the policy’s intended benefits can be realised. Richard Dennis might want to comment on the engagement that we have had.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

I am conscious of those calls. As you highlighted, we have already made changes around earnings arrestment for this year. I am content to give further consideration to that, through engagement. We can make changes to the threshold through existing powers in secondary legislation.

I am conscious that various proposals have been brought forward. It is about understanding the underlying rationale for a particular amount and how it could be related more widely to other factors. I am happy to give that consideration.

COSLA had flagged up that particular point in correspondence with the committee. I want to ensure that, in taking forward consideration of the matter, I hear the broadest range of voices and opinions. No one would be unsympathetic to the policy intent, and we are looking to explore what, practically, could be done to increase flexibilities and variance.

However, I want to ensure that we still have a system that is efficient and straightforward to administer and does not lead to unintended consequences. I particularly recognise the perspective of local authorities, as one of the primary users of that particular diligence. We must take their opinions and views into account as well.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

I ask Richard Dennis to come in on that.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

We set out a proposal in the consultation for a process that would begin with the mental health professionals who would already be supporting the person. The process would go from the mental health professional, to the money adviser and then the AIB. We seek further views on that as part of the consultation.

We are seeking to provide clarity and clear definitions on eligibility, although it is important to recognise that there are also other provisions within our existing suite of support, such as the existing moratorium. The mental health moratorium that is proposed in the draft consultation would be for those in the most acute and severe mental crisis, who would be subject to the compulsory treatment provisions that are set out in statute. The proposed process by which that would be effected is set out in the consultation although, as I said earlier, that is subject to the bill and the regulations being approved by the Parliament. We would of course reflect, review and continue to engage on the effectiveness of the scheme, and we would be open to further consideration of changes in light of experience.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

We are consulting for that very reason. If I were to say that we had already decided what we would do—

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

I mean the money advice sector, but I recognise that there is already overlap and that there should be co-ordinated working between that sector and mental health professionals.

If, subject to the Parliament’s agreement, the regulations come into effect, there will be a focus on ensuring that there is the broadest possible awareness. We are committed to using the resources at our disposal to ensure that there is the broadest possible awareness of the scheme and that there is understanding of how it can be applied to support the people whom it is designed to benefit.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

In true “Blue Peter” fashion, I already have a copy of the leaflet to share with the committee.

Economy and Fair Work Committee

Bankruptcy and Diligence (Scotland) Bill: Stage 1

Meeting date: 29 November 2023

Tom Arthur

I can confirm that we are reviewing the contents of the leaflet and that we will engage with representatives of the advice sector. Picking up on Kevin Stewart’s point, we will do further engagement with those who have direct experience of using the leaflet to help inform the consideration and review process. We have copies of the leaflet available for any member who is interested and wants to consider it in more detail.