The Scottish Government is facing questions about whether ministers have breached their legal obligations in relation to the Scottish National Investment Bank Act. Under the law through which the SNIB was created, ministers are obliged to set up an advisory group to monitor the Bank’s performance, but nearly three years later, no such group has been established.
Section 29 of the SNIB Act 2020 states that “Scottish Ministers must establish and maintain an advisory group to provide them with advice on the Bank’s objects, conducts, and performance.” In June, Douglas Lumsden, the Tory MSP for North East Scotland, asked the Scottish Government whether its failure to do so meant the Bank was operating illegally. Despite being legally mandated, they replied that “the role of the Advisory Group has no bearing on the legality of the operation of the Bank.”
In August, Lumsden then pursued the issue further by asking Neil Gray, the Scottish Cabinet Secretary for the Economy, “what its position is on whether Scottish Ministers are in breach of Section 29 of the SNIB Act 2020, in light of the Act being passed in January 2020, the SNIB having been operational in lending public money, and the Act stating that the Scottish Ministers must establish and maintain an advisory group to provide them with advice on the Bank’s objects, conduct and performance.”
Gray refused to answer the question, instead repeating: “Under Section 29 of the Scottish National Investment Bank Scottish Ministers must establish and maintain an advisory group. Now that the Bank is fully established, and has a growing portfolio of investments work is underway to create the advisory group. As part of the work currently underway Scottish Government officials are finalising decisions on the membership of the group and how often this group will meet.”
The SNIB has insisted that the Bank is operating lawfully despite Scottish Ministers failing to meet their legal obligations.
Author: Harry Clynch
