06 April 2007
An influential Scottish Parliament committee has criticised the standard of information given by ministers on the financial consequences of legislation.
In a legacy paper to be passed to the new Parliament after it is elected on May 3, the finance committee expresses recurring concerns about a lack of adequate information contained in the financial memoranda of Bills.
It highlights issues that need to be addressed, including a lack of systematic consultation over the contents of memoranda, leading to wide-ranging disagreements on costs, due to different assumptions being used.
The MSPs note that the Scottish Executive produces guidance on the preparation of FMs. It adds: 'However, on a number of occasions, it would appear that this internal guidance is not being adhered to. Indeed, the committee has had to recommend in numerous reports on FMs that the Executive adhere to its own guidance.'
The committee suggests that the Parliament should have the power to demand that the Executive produces a revised memorandum if it considers the financial information given to be unsatisfactory. This, it states, would strengthen the scrutiny process.
The committee also underlines the need for better post-legislative scrutiny of the financial consequences of Bills. It found that the Executive does not undertake any systematic evaluation of the cost of legislation and that the actual costs can differ greatly from those originally stated.
The committee argues that the budget process in Scotland is more open than many others, including Westminster. But it says there is 'a lack of engagement in the process' and that the capacity of the committee to influence the budget is rarely used.
PFapr2007
