LAW REFORM (DILIGENCE) (SCOTLAND) BILL (Hansard, 17 April 1973)

§ LORD HOY
My Lords, I beg to move that this Bill be now read a second time. In another place the Lord Advocate described diligence in these 1052 words. He said that diligence is the process by which a movable property, the personal property, of a debtor can be attached by the creditor in settlement, inter alia, of a judgment debt. Recently, in Scotland there has been a great deal of public discussion about the practice and principle of warrant sales and considerable disquiet has been shown. Many societies and social welfare workers have pointed out that in many cases goods that are essential items of household furniture were poinded and disposed of for sums so low that they bring further distress and humiliation to the families concerned. I ought to say that the Law Commission is at present considering the law on diligence in Scotland and we look forward to receiving their report. In the meantime, this modest but important little Bill will go some way towards relieving the distress and hardship of some families.
May I describe the Bill as briefly as possible. Clause 1 defines the test to be applied to the exemption of articles from poinding. Subsection (2) defines the categories of articles, such as crockery, cutlery, cooking utensils, electric fires, beds, chairs and other items of household furniture. Subsection (3) empowers the Secretary of State to make alterations in this list by order. Subsection (4) provides the right of appeal to the Sheriff by the debtor against poinding of any particular article. Subsection (5) describes the appeal provisions contained in the earlier subsection. Subsection (6) modifies very slightly Section 20 of the Small Debt (Scotland) Act 1837. Subsection (7) saves the existing exemptions such as workmen's tools. Subsection (8) makes provision for the inclusion of caravan dwellers by the application of Section 29(1) of the Caravan Sites and Control of Development Act 1960.
My Lords, this is a small but important Bill. It was supported by the Government and all sides in another place. We are grateful to Mr. Gregor Mackenzie, the Member of Parliament for Rutherglen, for introducing and piloting the Bill through another place so quickly and so efficiently. I am grateful to have had the opportunity of placing it before your Lordships. I can only trust that this House will emulate another place in very quickly making it an Act of Parliament. I beg to move.

§ THE MARQUESS OF LOTHIAN
My Lords, I am sure the whole House will be grateful to the noble Lord, Lord Hoy, not only for introducing this Bill but for the very clear way in which he has explained it to us. Although it is small in compass, the Bill, as he rightly pointed out, is humane both in purpose and effect. The reform he proposes is important, affecting as it will several hundreds of families each year. I am glad to be able to state that the Government wholeheartedly support the Bill.
It has long been a matter of concern in Scotland that a debtor who may be blameless in the matter may find his home denuded of those household items without which family life becomes insupportable and intolerable, and frequently without an appreciable reduction of the amount of indebtedness since the almost inevitably low values placed upon the used furniture and effects may be taken up by the expense of what I understand is pronounced the "pinding"—but I do not know which of us is right on that matter. This Bill, by extending the present very limited range of exempted articles (which at present comprise, I believe, only the tools of trade and wearing apparel) to cover basic items falling within the categories listed in Clause 1, will do much to mitigate the distress caused to the debtor and his family. At the same time, by restricting the list to essentials, the Bill recognises the right of the creditor who may be a tradesman in business in a small way and himself not in a position to forego the payment of sums due to him. In this respect we think that the Bill achieves a fair balance between the parties concerned.
Provision is also made for amendment, by order, of the list of exemptions. This seems right since, as social attitudes change, and indeed economic factors as well, to-day's luxury becomes to-morrow's necessity and it is a function of the law to reflect in some respects and to give expression to such social changes. This provision therefore gives every desirable degree of flexibility for the future. The right of appeal provided in Clause 1(5) affords a more ready protection for agreed debtors than is available at present and will facilitate the resolution by the court 1054 of doubts and difficulties which may arise in individual cases where, for instance, it is unclear whether a particular article falls within one of the exempted categories or satisfies the test of undue hardship laid down by Clause 1(1)(b).
Finally, I am glad to see that caravan dwellers are not forgotten. There are considerable numbers of individuals and families living in residential caravans, sometimes by choice, sometimes by reason of the transient nature of their occupations; and it is realistic that the protection afforded by the Bill is extended by Clause 1(8) to cover this section of the population.
As the noble Lord pointed out, the whole subject of diligence, of which poinding and warrant sale is only one aspect, is under examination by the Scottish Law Commission. But the Commission's advice may not be available for some time to come, and therefore families will continue to suffer distress following a warrant sale of their household effects. The practical relief now afforded by this Bill will certainly do much to ease the problem, and we hope it will become the law of the land as soon as possible.

§ LORD FERRIER
My Lords, I feel certain that your Lordships would not like this Bill to be passed without some expression of fervent support from the Back Benches. The present situation, as the noble Lord, Lord Hoy, and the noble Marquess have described it, is inhuman and one could expatiate on the whole thing at great length, but I do not propose to do so. The matter has been well ventilated in another place. One point which has not been made here is that the situation is so inhuman that the actual return in terms of money going towards repaying the debts is very small, largely because people, neighbours, dealers and the like, are unwilling to aapear to bid at such sales. I for one hope your Lordships will without delay give this Bill a Second Reading.

§ LORD HOY
My Lords, may I express my real pleasure at what the noble Lord, Lord Ferrier, has said. One could harrow the House with what has happened in connection with this kind of 1055 business, but one desists because I think the case has made itself. I do express my pleasure that the noble Lord, Lord Ferrier, has taken part and also thank the noble Marquess, Lord Lothian, for giving the Bill such a blessing from the Government side of the House. I am grateful for this support.