Scottish Government in "conflict of interest" row over Uber


SCOTTISH Ministers are embroiled in a conflict of interest row over the inclusion of controversial taxi firm Uber on a government panel which will consider regulating the company.

The Government announced earlier this year that a team would look at the regulation of firms such as Uber, which has been criticised for the treatment of its drivers, and accommodation provider Airbnb.

However, Uber has been given a seat at the table, and the chair of the panel is employed by an organisation that has done work for the company.

Labour MSP Neil Findlay said: “Increasingly we see the Scottish Government working hand in glove with corporations at the expense of local communities and small businesses. This appears to be a clear conflict of interest.”

According to the Government, the so-called “collaborative economy” connects individuals via online platforms and allows services to be provided “without the need for ownership”.

To this end, a panel was set up to provide “advice and expertise” on the sector and make recommendations to Ministers.

Part of the remit is to ensure that regulation is “fit for purpose” and issues relating to taxation and employment conditions are “understood”.

Panel chair Helen Goulden, who is the executive director of “innovation lab” Nesta, specifically mentioned Uber and Airbnb in her online overview.

The creation of such a panel is believed to be an opportunity to consider the future of companies which, while popular with the public, have generated negative publicity.

Uber, an app-based service that has revolutionised the taxi industry, has been criticised for hiring drivers on a self-employed basis, which means there is no entitlement to holiday pay, pensions or other workers’ rights.

In a landmark decision last year a UK employment court found that Uber drivers are workers, not self-employed contractors. The company appealed the ruling.

However, although there is trade union representation on the panel, the Government is facing heat over why Uber and Airbnb, which have a stake in any changes, have been given places.

It is understood the panel members were chosen by Goulden “in conjunction” with the Government and Cabinet Secretary Keith Brown.

It can also be revealed that a Nesta subsidiary provided consultancy services to Uber for a report last year.

Gary Smith, the Scotland Secretary of the GMB trade union, said: "Whether you call it the precarious, gig or collaborative economy, there's no doubt there is widespread exploitation of workers’ rights in this sector and GMB has been at the forefront of the campaign to tackle it.

“Our concern here is that the Scottish Government is letting the wolves into the sheep pen early in the process. The panel shouldn't be talking about how we 'overcome regulatory, economic and social challenges' – that's worrying rhetoric. The focus should be ensuring the pursuit of economic growth is underpinned by decent rights, terms and conditions for the people who will deliver it.”

A Scottish Government spokesperson said: “There are a wide range of organisations including the STUC and business experts who will bring a global perspective of the sector. The purpose of the panel is to provide advice, expertise and experience for policy development on the collaborative economy and make recommendations to the Scottish Government on how to balance the benefits and challenges that the collaborative economy brings.”

A spokesperson for Nesta referred to the Scottish Government statement, but noted: "Nesta Enterprises Limited, Nesta's wholly-owned trading subsidiary, has previously, on one occasion, provided consultancy services to Uber."

source: http://www.heraldscotland.com/politics/ ... firm_Uber/

Here's the reply I got when highlighting my concern regarding uber having a seat on the panel, I'll keep the MPs identify private

Thanks for taking the time to write to me about the Scottish Government’s Advisory Panel on the Collaborative Economy and for sharing your concerns.



It might be useful to start by explaining that the Scottish Government’s view is that the Collaborative Economy, often based on new technologies, provides Scottish businesses with a huge opportunity to innovate and develop new ways of working. The Scottish Government recognises that there can be significant benefits for consumers too, through lower prices, greater choice and better services.



However, it is important to point out that the Scottish Government have been very clear that they want to establish a level-playing field for new and existing businesses. They have therefore committed to reviewing and developing regulation for the Collaborative Economy that encourages competition and innovation while ensuring fairness for all businesses. The Scottish Government have stated that they are intent on making sure that the business environment in Scotland is one in which all companies can grow and flourish.



The role of the Advisory Panel is to help inform Scottish Ministers on how Scotland can best position itself to take advantage of the many opportunities the Collaborative Economy presents without disadvantaging long established companies. This will be done by paying close attention to the social aspects of new business models including taxation and workers’ rights and by developing regulation that is truly fit for purpose.



While I do understand your concerns about the inclusion of Uber on the Advisory Panel I would point out that the Panel has a wide range of members including the Scottish Trades Union Congress. It is also worth noting that by including organisations like Uber the Scottish Government is encouraging big players in the Collaborative Economy to play a constructive role in developing regulations that will prevent dominant companies abusing their position.



You may also be interested to know that the Advisory Panel have asked for evidence and opinions to be submitted to them for consideration. They are keen to hear a wide range of views so I would encourage you and any of your colleagues who have an interest in this area to make a submission by 26th May 2017. That way your voices will be heard. You can make a submission to the Panel here.



The Advisory Panel is due to report back to the Scottish Government later this year. I would suggest that the SNP Government’s track record demonstrates that they will listen carefully to what the Panel has to say and ultimately the decisions Scottish Government Ministers take will be in the interests of all businesses and consumers across Scotland.

Question, Why are the Scottish National Taxi Association excluded from sitting on this advisory panel.

Here's the reply I got when highlighting my concern regarding uber having a seat on the panel, I'll keep the MPs identify private

Thanks for taking the time to write to me about the Scottish Government’s Advisory Panel on the Collaborative Economy and for sharing your concerns.



It might be useful to start by explaining that the Scottish Government’s view is that the Collaborative Economy, often based on new technologies, provides Scottish businesses with a huge opportunity to innovate and develop new ways of working. The Scottish Government recognises that there can be significant benefits for consumers too, through lower prices, greater choice and better services.



However, it is important to point out that the Scottish Government have been very clear that they want to establish a level-playing field for new and existing businesses. They have therefore committed to reviewing and developing regulation for the Collaborative Economy that encourages competition and innovation while ensuring fairness for all businesses. The Scottish Government have stated that they are intent on making sure that the business environment in Scotland is one in which all companies can grow and flourish.



The role of the Advisory Panel is to help inform Scottish Ministers on how Scotland can best position itself to take advantage of the many opportunities the Collaborative Economy presents without disadvantaging long established companies. This will be done by paying close attention to the social aspects of new business models including taxation and workers’ rights and by developing regulation that is truly fit for purpose.



While I do understand your concerns about the inclusion of Uber on the Advisory Panel I would point out that the Panel has a wide range of members including the Scottish Trades Union Congress. It is also worth noting that by including organisations like Uber the Scottish Government is encouraging big players in the Collaborative Economy to play a constructive role in developing regulations that will prevent dominant companies abusing their position.



You may also be interested to know that the Advisory Panel have asked for evidence and opinions to be submitted to them for consideration. They are keen to hear a wide range of views so I would encourage you and any of your colleagues who have an interest in this area to make a submission by 26th May 2017. That way your voices will be heard. You can make a submission to the Panel here.



The Advisory Panel is due to report back to the Scottish Government later this year. I would suggest that the SNP Government’s track record demonstrates that they will listen carefully to what the Panel has to say and ultimately the decisions Scottish Government Ministers take will be in the interests of all businesses and consumers across Scotland.

My response to the MP I contacted:


Hi, thanks for the clear response I accept what your saying but I can't accept why the Scottish Taxi Federation wasn't asked to sit on the panel also City Cabs Edinburgh 90 years a co-operative could have been invited, transportation technology isn't unique to the likes of Uber and Gett, the panel would have been more democratically viewed if it had co-operative representation as well as corporate, instead we get bad publicity, conflict of interest, an eu non binding ruling has ruled uber as a transportation company, they are corporate, in edinburgh our capital cities two main taxi providers are co-operatives, what happened to democracy when the panelists where selected, it doesn't feel right mine and the majority of Scots political ideology is being denied a seat on important panels/think tanks like this hugely important consultation. We are as you rightly point out have a right/avenue to respond but our extreme capitalist competition have access to directly influence, they can learn from responses they have a huge privilege and importantly an advantage.

My comment is sent with concern of what we the majority of scots are, we are Centre Left, we hope and vote for centre left policies and regulations but here we are inviting the extreme right to sit on think tanks.

I get people getting the hump with Uber, for good reason.

But don't put them in the same boat as Airbnb.

The latter is no more than a rooms for rent booking process.

As an aside what constitutes a 'big player' in the Scottish economy?