Tell Them What You Think ^beta

1. This consultation paper has been prepared by the Scottish Government. It contains a draft of the Interest (Scotland) Bill. This Bill has been developed from the Scottish Law Commission ( SLC) Report on Interest on Debt and Damages and draft Bill published (Scot Law Com No. 203) in September 2006. That report recommended the creation of a general statutory entitlement to interest, to run from the time when a sum of money becomes due by one person to another, whether for debt or damages.

2. The draft Bill is a small progressive law reform which could benefit individuals and businesses in Scotland and sits well with the Government's strategic priority of a 'fairer and wealthier' Scotland.

3. The draft Bill is made up of 18 sections and 2 schedules. The text of this paper broadly follows the order of the sections. It is not a comprehensive description of each section of the draft Bill but focuses on the key issues. This consultation paper will also raise some of the potential financial implications of the draft Bill which were not covered in the work of the SLC.

4. The SLC examined the law and issues surrounding entitlement to interest in some detail. The consultation paper will often direct the reader to the SLC discussion paper and report if they want to look at the development of the proposals in more depth.

5. A series of questions has been included to focus on the key issues which are either raised in the draft Bill or which might yet be included in it depending on the responses to the questions. The list of questions is not intended to restrict responses. While we particularly appreciate respondents' views on the questions set out in the paper, all comments and views are welcomed and will be carefully considered. After responses have been analysed Ministers will consider what proposals to introduce to the Scottish Parliament.