Schedule 3 — Devolved Public Bodies

Part of Ethical Standards in Public Life etc (Scotland) Bill: Stage 3 – in the Scottish Parliament at 3:30 pm on 21 June 2000.

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Photo of Frank McAveety Frank McAveety Labour 3:30, 21 June 2000

The best things come to those who wait; my next paragraph will specifically address that concern.

I recognise the concerns of many members who would like to see public bodies that are limited companies brought within the framework created by the bill—for example, local enterprise companies and companies set up by local authorities. I have already said that we will review the full range of public bodies before returning with further proposals. I can confirm that our review will cover public bodies constituted as companies.

We considered local enterprise companies in detail at stage 2. In that respect, we recognise that members are reviewing the enterprise network—a matter in which John Swinney is centrally involved. We are aware of the Enterprise and Lifelong Learning Committee's view that LECs should become fully public bodies rather than be constituted as companies. If that approach is followed, it will be possible to include such bodies in the schedule 3 regime. However, we must await the outcome of the review before bringing forward detailed proposals on LECs. Having discussed the matter with my colleagues, I am not unsympathetic to the concerns that Mr Swinney has raised. Nevertheless, it is appropriate to await the outcome of the review in order to process that information and to make progress on the matter.

Our review will also examine ways in which public bodies that remain constituted as companies could, for example, adopt a binding code of conduct consistent with the reservation of company law. One possibility that we are examining—although we have not yet reached a conclusion—is whether the articles of association of such bodies could be amended to require their members to observe a code similar to that set out in the bill. Our review will consider that possibility in more detail.

Amendments 26 and 34 honour the commitment I gave to include area tourist boards and further education colleges under schedule 3. That is a substantial advance from the initial position in the bill. Some minor amendments to the wording have been used to achieve that.

Taken together, the amendments form a substantial package, which adds to the bill's initial provisions and shows that the Executive has listened to the arguments that were so powerfully and eloquently put by the committee at stage 1 and stage 2.

I move amendment 23.