SPCB COMMISSIONS FULL ISSUES PAPER ON ALLOWANCES

086/2006 | 7 November 2006 

The Scottish Parliamentary Corporate Body (SPCB) today received an oral update from officials on parliamentary allowances. The move followed an undertaking made in May 2006 to consider issues relating to the operation of the Members’ Allowance Scheme as a whole.

The present allowances scheme was agreed by the full Parliament in June 2001. Any adjustment would also need the Parliament’s agreement.

The SPCB is aware of the complexity of the issues surrounding the structure and operation of the allowances scheme, including Edinburgh Accommodation Allowance. It has therefore commissioned an issues paper with a view to setting out options for a review of the allowances scheme in a legacy paper which will be available for consideration immediately after the election in May 2007.

Presiding Officer George Reid said:

“The current system of allowances was brought in by unanimous vote of Parliament in June 2001. The Corporate Body has no authority to alter that system. It can be changed only after further debate and vote of Parliament.

“We acknowledge that there are issues to be addressed, but they are complex and have to be addressed in total.

“It is the SPCB’s intention to have all the arguments delineated by March 2007 for determination by our successors after the elections in May.”

The legacy paper will enable the SPCB to inform decisions to be made by the next elected Parliament on issues such as:

1. The adequacy and scope of the Members’ Support Allowance.

   Issues: How much choice should be open to individual Members? For example, should the same sum be payable where a Member chooses not to open a constituency or regional office?

2. Members’ staff - standardisation of pay and conditions.

   Issues: Who should be the employer? At present the Member, or should the SPCB provide staff to Members? What about the personal choice of Members in employing staff?

3. If the Edinburgh Accommodation Allowance in relation to mortgage interest payments and the leasing by Members of properties were to be amended, what cost effective alternatives could be put in place?

   Issues: Overall cost of Members staying in hotels may exceed the cost of current arrangements?

4. If there were to be any recovery of capital gains where a property purchased under the scheme is sold, how would this be assessed?

Issues: Is the amount repayable to be proportionate to the sum obtained towards interest charges? Is this to be before or after application of Capital Gains Tax (currently 40 per cent on taxable gain)?

Background notes

The Presiding Officer wrote to the First Minister on behalf of the SPCB on 10 May 2006 to advise that the Edinburgh Accommodation Allowance was being reviewed in the context of a general review of the Members’ Allowance Scheme and that officials were examining the issues, including the background to the Edinburgh Accommodation Allowance in its different forms.

Any amendment to the Members’ Allowance Scheme will require endorsement of the full Parliament by parliamentary motion.

For further information, the Scottish Parliament media contact is:

Eric MacLeod: 0131 348 5389
email: eric.macleod@scottish.parliament.uk

For public information enquiries, contact: 0131 348 5000 or 0845 278 1999 (local call rate) Text phone: 0131 348 3415 RNID Typetalk calls welcome
email: sp.info@scottish.parliament.uk

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