§ Mr. MichaelTo ask the Secretary of State for Wales if he has anything to add to his answer on 12 February, concerning the respects in which the responsibilities he expects employers in Wales to fulfil for collecting cash from poll tax defaulters differ from the expectations and responsibilities placed on employers in Scotland.
§ Mr. Peter WalkerUnder the Community Charges (Administration and Enforcement) Regulations 1989, a370W Welsh charging authority which has obtained a liability order from a magistrates court may make an attachment of earnings order. This is an order instructing the debtor's employer to make deductions from the debtor's earnings and pay the amounts deducted to the charging authority. The amounts to be deducted will be specified in the attachment of earnings order. The employer may deduct £1 from the debtor's earnings to cover his administrative costs in respect of each deduction. The employer is required to notify the charging authority if the debtor leaves his employment.
The following information in relation to the position in Scotland has been given to me by my right hon. and learned Friend the Secretary of State for Scotland.
The enforcement methods to recover community charge debts are substantially the same as those for ordinary "private" debts. The local authority can choose either to proceed on the basis of a summary warrant or a court order obtained in a court action. Summary warrant procedure is an expedited procedure available since 1947 for the recovery of rates (and subsequently made available for the recovery of tax debts). Almost invariably, local authorities opt for summary warrant procedure. A single summary warrant application to the sheriff can cover a number of community charge debtors.
An important difference between Scottish and English procedures for enforcement is the absence of a court role in the enforcement of Scottish court orders to recover debts, either private or public e.g. taxes. In Scotland, creditors take the initiative in instructing sheriff officers (independent contractors under the supervision of, but not in the employment of, the court) to take enforcement action against debtors. The Debtors (Scotland) Act 1987 abolished civil imprisonment for non-payment of rates and civil imprisonment is also not available if community charge is unpaid.
Methods of enforcing community charge debts:
The summary warrant authorises the use of the following diligences:
- 1. An earnings arrestment (similar to the English attachment of earnings procedure).
- 2. A poinding and sale (roughly comparable to the English "distraint of goods" procedure). ("Poinding" is pronounced "pinding".)
- 3. An arrestment and action of forthcoming or sale. (Abolition of Domestic Rates, etc (Scotland) Act 1987 Schedule 2, Paragraph 7 as amended)
Earnings Arrestment
This is a new diligence introduced by the Debtors (Scotland) Act 1987 and is a system of continuous diligence requiring the debtor's employer to deduct a statutory fixed sum, which is related to net earnings, on each pay day until the debt is cleared. (Abolition of Domestic Rates, etc (Scotland) Act 1987, schedule 2 paragraph 7(3)(b) as amended Debtors (Scotland) Act 1987, section 49 and schedule 2).
An earnings arrestment is started by service on the employer of the prescribed form of schedule of arrestment and it remains in effect broadly until the debt is paid or the debtor leaves that employment. The form was designed to provide the employer with easy-to-follow instructions on how to operate the procedure. The employer receives from the sheriff officer a copy of the statutory deduction tables to enable him to calculate the amount to be deducted. He also receives details of the person or body to whom the payment should be made "as soon as reasonably 371W practicable". In addition, the employer is entitled to deduct from the employee debtor a nominal fee of 50p for each payment. (Act of Sederunt (Proceedings in the Sheriff Court under Debtors (Scotland) Act 1987) 1988, 1988 No. 2013, Paragraph 38 and Form 30)
Poinding and Warrant Sale
This is the method by which the debtor's moveable goods which are in his custody and control are attached, brought within the control of the court, and thereafter and, if necessary, sold with the proceeds being used to pay off the debt. (Abolition of Domestic Rates etc. (Scotland) Act 1987, schedule 2, paragraph 7(3)(a) as amended).
Arrestment followed by an action of forthcoming or sale
This is the method by which a creditor may attach money or goods belonging to the debtor which are in the hands of a third party.
Thereafter the creditor and debtor may agree to the money or goods being transferred to the creditor to settle the debt or failing such agreement a court action of forthcoming or sale is necessary to authorise the transfer of the money or goods to the creditor for sale. (Abolition of Domestic Rates etc. (Scotland) Act 1987, schedule 2, paragraph 7(3)(c) as amended).
§ Mr. Ian BruceTo ask the Secretary of State for Wales how many councils have announced budgeted spending below their standard spending assessment.
§ Mr. Peter WalkerWelsh local authorities are currently in the process of setting their budgets for 1990–91. The information sought is therefore not yet available.