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Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 2008

My Lords, I am grateful to my noble friend Lord Sewel and the Liberal Democrat Front Bench for the clear way in which they have illustrated that which I had rendered opaque in my opening statement. I am grateful to both noble Lord for answering most of the central points of the noble Duke, the Duke of Montrose. He is right in his obvious point that the order mixes up an energy issue with an environment issue. A great deal of the European order, which is to be carried out by member states, will be carried out by the Scottish Environment Protection Agency, which has powers to act in certain respects. In relation to the Energy Act 1976, some aspects are reserved to this Parliament, but we have always adopted a pragmatic approach to the issue of such reserved powers. Most reserved powers are central to the debate we had on the limits of devolution, but it was always recognised that for administrative reasons there might be areas where some flexibility would be necessary and for additional matters to be devolved by order to enhance the capacity of the Scottish Administration to carry out their proper obligations. The Scottish Administration have a certain range of powers and obligations that their environment protection agency intends to carry out. However, the Administration want to include within them certain areas that are under the Energy Act 1976 and are reserved but will, in administrative terms, be much better if they are specifically devolved to the Scottish Ministers for administrative efficiency. They raise no major issues of principle and powers. With the order, the Government are merely responding to a European order that, as the noble Duke, the Duke of Montrose, accurately identified, is predominantly concerned with the environment. We are seeking to devolve certain powers under the Energy Act that are otherwise reserved in order that the administrative operation can be more effective, from the point of view of both the Government of Scotland and business in Scotland, which will be responding to one agency regarding the obligations that it has to fulfil in controlling pollution. The noble Duke is right: this imposes an obligation upon industrial and commercial establishments with regard to effective control of their potential pollution. It does not have a great deal to do with the Climate Change Bill that has just gone through the House—except that I sometimes feel that everything is to do with climate change these days. The noble Duke was present often enough to know how wide-ranging that Bill was. This is a European directive concerned with the control of pollution, and we are seeking to create clarity for Scottish Ministers and Scottish business about the enforcement processes and understanding of what is required to be done.