Steel calls for reform of devolution funding

4.10.21pm BST (GMT +0100) Wed 25th Oct 2006

The Scottish Parliament should take more responsibility for raising its own funds, according to its first Presiding Officer, Lord (David) Steel.

Addressing a Constitutional Seminar at Oxford University this evening, Lord Steel will call not only for the way we fund the Scottish Executive to be changed but also the way we elect Members of the Scottish Parliament to be reformed.

In his address Lord Steel will say:

"We were promised during the passage of the Scotland Act in 1998 that after ten years the devolution settlement would be reviewed - in other words during the life of the third Scottish Parliament due to be elected next May. I therefore welcome this opportunity to put forward one or two suggestions for changes in the present Act.

"Firstly, the list system of PR has proved unpopular and unsatisfactory. Each Party has interpreted the selection process in different ways to suit itself, but all have in common too much power to party manipulation.

"Moreover constituency MSP's have had to put up with some of their defeated opponents sitting with them in the Chamber as list Members. Sometimes these defeated opponents spend their time issuing press releases attacking the constituency Member whom they intend to fight again at the next election.

"A fundamental reform would be to change the system altogether so that all MSP's are elected under the same process by the Single Transferable Vote in multi-member seats. It will be interesting to see this process in action next May in the changed Council elections.

"I might add here that whichever system of PR is used, the process of coalition government is almost bound to continue as in a four, five or six party system no one party is likely to gain 50% of the seats. Next May will not be a presidential-type election between two people as the press - used to the Westminster model - tend to portray.

"Indeed I commend to their attention two recent perceptive articles in Holyrood magazine by respected university academics Professor John Curtice of Strathclyde and Mr Peter Lynch of Stirling who examine opinion poll trends. The latter concludes that we should not be surprised if Nicol Stephen ends up as First Minister: I would only add my own observation that he is likely to come across in the Scottish election campaign as an able and appealing fresh face among the old war-horses.

"In my Donald Dewar Memorial lecture three years ago I said that no self-respecting parliament should exist indefinitely on a block-grant from another parliament. That view has now been fleshed out in the report of the Steel Commission of which I was chairman.

"The report was adopted as Liberal Democrat party policy at last weekend's conference. It argues that the Parliament should be responsible for raising the money which it spends; this is a distinctive position to take to the people in next year's election. We were greatly influenced by the experience of Ireland in boosting their economy with taxation policies markedly different from those of Westminster. You don't need all the paraphernalia of independence - with armies and embassies - to achieve what we propose.

"These suggestions - and no doubt others - should be considered by a new Scottish Constitutional Convention, which next time round should include all the political parties. It ought to start work next autumn."