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Details of Provisions
This paragraph ensures that the registration and funding of political parties is a reserved matter, except for the making of payments to any political party for the purpose of assisting members of the Scottish Parliament who are connected with the party to perform their Parliamentary duties. This exception was added by article 2 of the Scotland Act 1998 (Modifications of Schedules 4 and 5) Order 1999 (S.I. 1999/1749).
The registration and funding of political parties is dealt with in the Political Parties, Elections and Referendums Act 2000 which consolidated the Registration of Political Parties Act 1998 which used to deal with the registration of political parties.
Section 97 provides a power for Her Majesty, by Order in Council to provide for the Scottish Parliamentary Corporate Body to make payments to registered political parties for the purpose of assisting members of the Parliament who are connected with such parties to perform their Parliamentary duties. This power has been exercised in making the Scottish Parliament (Assistance for Registered Political Parties) Order 1999 (S.I. 1999/1745).
Part I, Paragraph 7: Foreign affairs, etc.
Purpose and Effect
This paragraph reserves foreign affairs, subject to certain exceptions.
Parliamentary Consideration
| Stage | Date | Column |
| CC | 30-Mar-98 | 914 |
| LC | 21-Jul-98 | 862 |
Details of Provisions
Reservation
Paragraph 7(1) provides that international relations, including:
(a) relations with territories outside the UK, the European Communities (and their institutions) and other international organisations;
(b) regulation of international trade; and
(c) international development assistance and co-operation,
are reserved matters.
Subject to the exceptions in paragraph 7(2), this means that the conduct of international relations, including conduct of relations with the European Communities, is therefore a matter reserved to the UK Parliament and UK Government.
The reservation of international relations does not have the effect of precluding the Scottish Ministers and officials from communicating with other countries, regions, or international or European institutions, so long as the representatives of the Scottish Parliament or the Scottish Ministers do not purport to speak for the United Kingdom or to reach agreements which commit the UK.
Exceptions
Paragraph 7(2) makes certain exceptions to this reservation:
(a) Observing and implementing international obligations etc. Firstly, paragraph 7(2)(a) provides that observing and implementing international obligations, obligations under the ECHR and obligations under Community law are not reserved. Community law and international obligations are defined in section 126(9) and (10).
So far as the legislative competence of the Scottish Parliament is concerned, this has the result that the Scottish Parliament will be able and required to legislate for the purpose of observing and giving effect to those obligations so far as they relate to devolved matters. Section 29(2)(d) provides that a provision of an Act of the Scottish Parliament would be beyond the legislative competence (i.e. ultra vires) of the Scottish Parliament if it was incompatible with any of the "Convention rights" (see section 126(1)) or with Community law. In the case of other international obligations, (i.e. not Convention obligations or EC law), which are not justiciable in our courts, section 35 enables the Secretary of State to make an order prohibiting the Presiding Officer from submitting a Bill for Royal Assent where he has reasonable grounds to believe that it would be incompatible with such obligations.
So far as executive competence is concerned, this exception also achieves the result that any obligations upon Ministers of the Crown to observe and implement international obligations in relation to devolved matters are transferred to the Scottish Ministers under section 53. In particular, this will mean that, in the case of EC obligations, the Scottish Ministers are liable under EC law for the same penalties as Ministers of the Crown if they fail to do so. Section 57(1) ensures, however, that Ministers of the Crown continue to share this responsibility and will have concurrent functions for the purpose of implementing EC obligations. In addition, section 57(2) makes a similar provision to section 29(2)(d) by providing that it would be ultra vires for a member of the Scottish Executive to make any subordinate legislation or to do any act which would be incompatible with any of the Convention rights or with EC law. There is also a similar provision to section 35 in section 58 enabling the Secretary of State to make an order revoking any subordinate legislation made by a member of the Scottish Executive or requiring him to make any such instrument if he considers that the instrument (or failure to make the instrument) would be incompatible with any international obligation (i.e. not Convention obligations or EC obligations).
(b) Assisting Ministers of the Crown. Paragraph 7(2)(b) provides that assisting Ministers of the Crown in relation to any matter to which the reservation in paragraph 7(1) applies is not reserved.
This enables the Scottish Ministers to assist the UK Government in the conduct of international relations so far as relating to devolved matters and enables the Scottish Parliament to legislate about this. The Scottish Ministers will thus be able to assist Ministers of the Crown in the formulation, negotiation and implementation of policy relating to international relations. This allows the Scottish Ministers to be involved in the discussions within the UK Government about the formulation of the UK's policy position on all issues which touch on devolved matters; and allows participation where appropriate by the Scottish Ministers and officials in relevant European Council meetings and other negotiations with the UK's EU partners.
Executive devolution
The following function has been included in the Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I. 1999/1750).
The Multilateral Investment Guarantee Agency Act 1988 (c.8), section 6. | The function of the Secretary of State of making, by order, provision for the attendance of witnesses, taking of evidence and production of documents in relation to certain arbitration proceedings.
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Part I, Paragraph 8: Public Service
Purpose and Effect
This paragraph reserves matters relating to the Civil Service, subject to certain exceptions.
General
Section 51 provides for the staff of the Scottish Administration to be members of the Home Civil Service, as are the statutory office-holders in the Scottish Administration (see section 126(6)). It also makes provision for their salaries, allowances and pensions.
Details of Provisions
Reservation
Paragraph 8(1) states that the Civil Service of the State is a reserved matter. The Civil Service includes the Home Civil Service and the Diplomatic Service. The effect is that the Scottish Parliament is not able to legislate about matters relating to Civil Servants in Scotland, including their recruitment, selection, management, conduct, discipline, numbers, grading and terms and conditions of service. Matters relating to Civil Service pensions are reserved by Section F3 in Part II of the Schedule.
The Home Civil Service is ultimately regulated by the Royal Prerogative, and its management has been delegated to the Minister for the Civil Service. The Civil Service Management Code is issued under the authority of the Civil Service Order in Council 1995. Under the Civil Service (Management Functions) Act 1992, the Minister for the Civil Service has further delegated management functions to Ministers and office holders in charge of Departments. These include the authority to prescribe qualifications for appointment as Civil Servants, to determine the number and grading of posts (outside the Senior Civil Service) in such Departments and a wide range of other management functions. Those functions, which were delegated to the Secretary of State for Scotland in respect of Civil Servants who become staff of the Scottish Executive, have been delegated to the Scottish Ministers. This is provided for in section 51(4) and (6).
Exceptions
The subject-matter of the following enactments is excepted from the reservation:
(a) Part I of the Sheriff Courts and Legal Officers (Scotland) Act 1927. This deals with the appointment of sheriff clerks, procurators fiscal and their deputies; and
(b) Part III of the Administration of Justice (Scotland) Act 1933. This deals with the appointment and terms and conditions of service of officers of the High Court of Justiciary and the Court of Session, including the Principal Clerk of Justiciary, the Accountant of Court and Auditor of the Court of Session, staff in the Justiciary Office and the Court of Session, and Macers.
The officers concerned are already civil servants and by virtue of the Act continue to be members of the Home Civil Service. However, there are certain specialities of appointment and terms and conditions of service of such court staff which distinguish them from other civil servants and which are peculiarly Scottish, making it appropriate that legislative competence over these aspects should be not be reserved. See also the amendments to the 1927 and 1933 Acts in paragraphs 3 and 4 of Schedule 8.
Schedule 5, Part I, Paragraph 9: Defence
Purpose and Effect
This paragraph reserves all matters relating to defence and the armed forces; but it does not reserve responsibility for civil defence or the right to confer enforcement powers on the armed forces in relation to sea fisheries matters.
General
Defence includes matters relating to the armed forces (including for example, their equipment, resources and deployment), defence policy, strategy, planning and intelligence and plans for the maintenance of essential supplies and services in case of war.
The reservation will not however prevent the Scottish Parliament from legislating about civil defence or conferring powers on the armed forces, notably the Navy or the Air Force, in relation to sea fishing, in particular to enforce offences created under Scottish sea fisheries legislation.
Parliamentary Consideration
| Stage | Date | Column |
| CC | 30-Mar-98 | 939 |
| LC | 21-Jul-98 | 868 |
Details of Provisions
Reservation
The reserved matters set out in paragraph 9(1) are as follows:
paragraph 9(1)(a): The Defence of the Realm. This provision is intended to ensure that any matters related to the defence of the realm are reserved. It is a supplementary concept to that of the armed forces (which are identified separately, see below) designed to cover all the matters for which the Ministry of Defence are responsible, for defence purposes. These matters include the various defence establishments and contractors carrying out work for defence purposes; the Ministry of Defence Police and the services cadet forces (which do not form part of the armed forces but serve defence purposes); and special provisions for the acquisition, use or disposal of land and property for defence purposes.
paragraph 9(1)(b): The Naval, Military or Air Forces of the Crown, including reserve forces. This is the second main leg of the reservation. It makes clear that all matters concerned with the armed forces themselves are reserved. This includes their command, establishment, maintenance, organisation, staffing and funding and all matters connected with the enlistment, management, disciplining and pay and allowances of both the military and civilian components of the armed forces. This reservation also covers the creation of offences relating particularly to the armed forces (for example, the unauthorised wearing of military uniforms), matters concerned with the territorial, auxiliary and volunteer reserve associations, special provisions relating to the status of members of the armed forces and the disclosure of information on military activities. The reservation also covers benefits to members and former members of the armed forces and their dependants and the matter of war graves. Equipment and explosives research for the purposes of the armed forces are also covered.
paragraph 9(1)(c): Visiting Forces. A separate reservation is required in order to ensure that all matters relating to visiting forces are covered. These are the armed forces of other countries visiting or based in the UK, including both their military and civilian components.
paragraph 9(1)(d): International Headquarters and Defence Organisations. This is simply to make clear that matters concerned with headquarters or organisations designated for the purposes of the International Headquarters and Defence Organisations Act 1964 are reserved.
paragraph 9(1)(e): Trading with the Enemy and Enemy Property. This reservation covers matters relating to the control of trade with the enemy and the confiscation, control or administration of enemy property. These matters are all aspects of the conduct of war and the conclusion of peace. This provision is not intended in any way to restrict the competence of the Scottish Parliament to legislate generally about the law of property in Scotland.
Paragraph 9(2) provides that paragraph 9(1) does not reserve the following:
paragraph 9(2)(a): Civil Defence, in particular planning, organisation and preparation by civilian authorities. The provision of non-combative defence against hostile attack is not reserved. The exercise of civil defence functions by a member of the armed forces, visiting forces or other defence force or organisation is, however, reserved.
paragraph 9(2)(b): The Conferral of Enforcement Powers in relation to Sea Fishing. It is necessary also to make clear that the Scottish Parliament has competence to confer powers to enforce obligations in relation to sea fishing (in particular powers usually exercisable by British Sea Fisheries Officers) on members of the armed forces. This is because the Royal Navy in particular carries out certain enforcement duties on behalf of the Fisheries Departments.
Executive Devolution
The following functions have been included in the Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I. 1999/1750).
The Reserve Forces Act 1996 (c.14), Schedule 5, paragraphs 10 and 12. | The functions of the Secretary of State to give directions relative to the charitable property of a disbanded unit and to apply by petition to the Court of Session concerning such property.
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The following functions have been made exercisable by a Minister of the Crown subject to a requirement for agreement of or consultation with the Scottish Ministers by the Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I. 1999/1750).
The Reserve Forces Act 1996 (c.14), sections 90(1) and (3) and 91(1) and (3). | Section 90(1) and (3) - The function of the Secretary of State and the Lord Chancellor to appoint a panel of chairmen of reserve forces appeal tribunals and determine their term of appointment.
Section 91(1) and (3) - The function of the Secretary of State and the Lord Chancellor to appoint a panel of ordinary members of reserve forces appeal tribunals and determine their term of appointment.
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Schedule 5, Part I, Paragraph 10: Treason
Purpose and Effect
This paragraph reserves treason.
General
The law of treason covers the circumstances which can give rise to the crime of treason, treason felony, misprision of treason (i.e. the concealment of treason) and who can commit those crimes. There is no separate Scottish law of treason.
The crime of treason is based on the Treason Act 1351. It declares what offences are to be treason e.g. levying war against the sovereign in Her Realm. Certain of these forms of treason - compassing the death of or levying war against the sovereign - have been extended by judicial interpretation. These extended forms are known as constructive treason. The reservation also covers treason felony. This includes acts to depose the sovereign, or prompt any foreigner to invade the UK or any other part of Her Majesty's dominions or countries. Treason can be committed by any person who owes allegiance to the Crown (i.e. in particular British citizens, or temporary UK residents.)
Details of Provisions
Treason (including constructive treason), treason felony, and misprision of treason (including the question of who can commit those crimes) is reserved.
Part II: Specific Reservations
This Part contains a number of specific reservations under various Heads and Sections. The titles of the Heads, Sections etc are merely signposts - they do not form part of the definition of reserved matters.
Part II: Preliminary paragraphs
Paragraphs 1 to 3 explain how the entries in Part II are to be construed. Reference should also to be made to paragraph 5 of Part III as to how references to the subject matter of an enactment are to be construed.
Paragraph 1 provides that the matters to which any of the Sections in Part II "apply" are reserved matters.
Paragraph 2 defines what paragraph 1 means by "apply" by providing that a Section "applies" to any matter described or referred to in it when read with any illustrations, exceptions or interpretation provisions in that Section.
Paragraph 3 provides that any illustrations, exceptions or interpretation provisions in a Section relate only to that particular Section. It provides specifically, as an example, that an entry under the heading "Exceptions" applies only to the matters listed in that Section and does not affect any other Section. The effect is that, even though a matter is excepted from one Section, it could be reserved at least in part by another.
Head A: Financial and Economic Matters
Section A1: Fiscal, Economic and Monetary Policy
Purpose and Effect
This Section reserves fiscal, economic and monetary policy, with the exception of local taxes.
Details of Provisions
Reservation
The reserved matters include the issue and circulation of money, taxes and excise duties (and the bodies which administer them), government borrowing and lending (including the issue of Government Securities), the exchange rate, the Bank of England and control over United Kingdom public expenditure. This last reservation does not affect the Scottish Parliament's ability to allocate resources, whether part of its assigned budget or raised through its tax-varying powers.
Exception
Local taxes to fund local authority expenditure are excepted from the reservation. Current examples of such taxes are the council tax and non-domestic rates.
Parliamentary Consideration
| Stage | Date | Column |
| CC | 30-Mar-98 | 939 |
| CC | 30-Mar-98 | 951 |
| CR | 19-May-98 | 812 |
| LC | 23-Jul-98 | 1040 |
| LR | 3-Nov-98 | 185 |
Executive Devolution
The following functions have been included in the Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I. 1999/1750).
The Taxes Management Act 1970 (c.9):
(a) sections 2(3), 2(6) and 3(4); and | Section 2(3) - The function of the Secretary of State to appoint the General Commissioners for the divisions in Scotland and for determining their period of office.
Section 2(6) - The function of the Secretary of State to create new divisions, abolish existing divisions or alter any divisions or their boundaries
Section 3(4) - The function of the Secretary of State to dismiss clerks or assistant clerks of the General Commissioners
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(b) sections 4(1) and (4), 4A(1), 46A(1) and 56B(1). | Section 4(1) and (4) - The function of the Secretary of State of being consulted by the Lord Chancellor on appointment of Commissioners for the special purposes of the Income Tax Acts and on removal of such persons.
Section 4A(1) - The function of the Secretary of State of being consulted by the Lord Chancellor on appointment of a person to be a deputy Special Commissioner.
Section 46A - The function of the Secretary of State of consenting to regulations made by the Lord Chancellor concerning jurisdiction in tax appeals.
Section 56B - The function of the Secretary of State of consenting to regulations made by the Lord Chancellor concerning practice and procedure in tax appeals.
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| The Income and Corporation Taxes Act 1988 (c.1), sections 79(4) and 79(8). | Section 79(4) - The function of the Secretary of State to approve a body as an "approved local enterprise agency" for the purposes of section 79.
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| The Income and Corporation Taxes Act 1988 (c.1), sections 79(4) and 79(8) (cont.). | Section 79(8) - The function of the Secretary of State to make his approval of a body conditional upon compliance with certain requirements.
The function of the Secretary of State, if it appears to him that certain circumstances apply, by notice to withdraw his approval from the body concerned with effect from such date as he may specify in the notice.
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| The Finance (No.2) Act 1992 (c.48), section 75(1). | The function of the Secretary of State of consenting to regulations by the Lord Chancellor providing for Commissioners to hold office by a different name.
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The Value Added Tax Act 1994 (c.23):(a) Schedule 12, paragraphs 2, 3(2), (4) and (5) and 9; and | Schedule 12, paragraph 2 - The function of the Secretary of State of being consulted by the Lord Chancellor on appointment of the President of VAT tribunals and also the terms and conditions of the appointment.
Schedule 12, paragraph 3 - The function of the Secretary of State of being consulted by the Lord Chancellor on the retention of the President beyond normal retirement age, removal of the President from office and discharge of the President's functions by a nominated person.
Schedule 12, paragraph 9 - The function of the Secretary of State of being consulted by the Lord Chancellor on procedural rules for VAT tribunals.
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(b) Schedule 12, paragraph 7(8). | Schedule 12, paragraph 7(8) - The function of the Lord Chancellor to pay salary and fees to a chairman or other member of a VAT tribunal.
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| The Social Security Contributions (Transfer of Functions etc.) Act 1999 (c.2), section 13(1). | The function of the Secretary of State of concurring in regulations by the Board concerning appeals to the tax appeal Commissioners.
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Section A2: The Currency
Purpose and Effect
This Section reserves matters relating to the currency.
General
In addition to the general macroeconomic reservation in Section A1, which reserves the issue and circulation of money, this Section explicitly reserves coinage, legal tender and bank notes.
Parliamentary Consideration
| Stage | Date | Column |
| CC | 30-Mar-98 | 954 |
| LC | 23-Jul-98 | 1056 |
Details of Provisions
Reservation
The matters reserved are coinage, legal tender and bank notes. This includes the denominations of money in the currency and the coins or notes which constitute legal tender and what coins and bank notes may be issued.
Section A3: Financial Services
Purpose and Effect
This Section reserves financial services.
General
This reservation contributes to the preservation of common markets for financial services, and depositor, investor and policyholder protection, across the UK. Fixing the dates of bank holidays is excepted from the reservation.
Details of Provisions
Reservation
What is reserved are financial services, including investment business, banking and deposit-taking, collective investment schemes and insurance.
All matters relating to financial services are reserved, not just those dealt with in the Financial Services Act 1986. The reservation expressly includes:
(a) investment business, e.g. managing investments or providing investment advice and the authorisation and regulation of those who undertake such activities, as in the 1986 Act;
(b) banking and deposit-taking e.g. the authorisation and regulation of those carrying on banking or deposit-taking business, as in the Banking Act 1987;
(c) collective investment schemes e.g. unit trusts and open-ended investment companies and their regulation and authorisation, as in the 1986 Act; and
The expression "financial services" also includes financial services, other than those expressly mentioned, such as the services provided by building societies or friendly societies.
Exception
The subject-matter of section 1 of the Banking and Financial Dealings Act 1971 is excepted from the reservation.
Section 1 of the 1971 Act deals with the fixing of bank holidays. The Scottish Parliament is able to legislate to fix what are bank holidays in Scotland. A further exception in this regard is made from section 1.5.
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