 | 'I do not know where George Robertson gets his ideas from. It seems strange that it would take two years for the Inland Revenue to change their computers.' John McAllion, Labour ex-Scottish Constitutional Spokesman, 12 th March 1997. |  |
| 'I do not know where George Robertson gets his ideas from. It seems strange that it would take two years for the Inland Revenue to change their computers.' John McAllion, Labour ex-Scottish Constitutional Spokesman, 12 th March 1997. | |
THE Labour Party was catapulted into a new round of bitter internal disputes last night after the shadow Scottish secretary, George Robertson, revealed that a devolved Scottish parliament will not be able to use its tax-levying powers for at least five years.
Mr Robertson provoked the wrath of the pro-home rulers in his own party and the scorn of his political opponents by admitting the tax power are unlikely to come into operation until the year 2002 - the likely date of the general election after next.
Speaking at the launch of Labour's "Covenant with Scotland" - a mini-manifesto laying out the party's approach to government - Mr Robertson said technical difficulties with the Inland Revenue would prevent the tax-levying powers being used until two years after the parliament was established.
He spelled out a likely timetable for devolution following a referendum in which a "double yes" vote for the principle and to endorse the planned power to raise or lower the basic rate of income tax by three pence in the pound.
If legislation passed through the Houses of Parliament by the end of 1998, the parliament's elections would be held the following year and it would be "up and running" by the year 2,000, Mr Robertson said.
Asked about the tax powers, he added: "The expert advice we have at the present moment is that to put this into place might take up to a maximum of two years after the parliament was established - something which has been discussed before and is not new."
That would take the earliest possible date that the powers could be used to the fifth year of a Labour government - a scenario that some in the Labour Party and its opponents believe would suit the leadership in London which has done all it can to neutralise the tax issue.
Last night, however, Mr Robertson's claims that this was not a change in policy was flatly contradicted by the Labour MP John McAllion, who resigned as a front-bench spokesman on the constitution over the imposition of the referendum plan.
Mr McAllion, the MP for Dundee East who refused to criticise the party after his original resignation statement, said: "I do not know where George Robertson gets his ideas from. It seems strange that it would take two years for the Inland Revenue to change their computers."
The IR could be ordered to begin the work on the technical matter of identifying Scottish taxpayers once there had been a "yes" vote on the tax question in the referendum, he argued.
He also questioned the timetable set out by Mr Robertson saying that this timescale had never been discussed by him during his time as a shadow minister, including a seminar for front-benchers on how to get devolution legislation through parliament.
Mr McAllion added: "The five years seems to be a very convenient number and it is obviously being imposed from on high with nobody being consulted. It's par for the course in the new Labour Party.
"George is entitled to his views, but other people are also entitled to theirs. I do not see why a Scottish parliament could not be up and running with the power, if it chose, to tax by 1999. This will anger many activists and ordinary members of the Scottish party.
"There had been no discussion. The first I heard of this was when I saw it announced on television. We are supposed to believe in devolving power. It's strange we do not do it in practice in the party."
The leader of the Scottish Liberal Democrats, Jim Wallace, said Labour was scared of the tax issue. He added: "Five years is a very convenient figure - the lifetime of a parliament. This is surely the last great cop out of the Scottish Labour Party on the eve of the general election. They have nothing to offer."
The Scottish National Party leader, Alex Salmond, said: "Under orders from London, George Robertson has effectively kicked Labour's devolution policy into touch as well as into the millennium."
Return to home page