To ask the Secretary of State for Business, Innovation and Skills, whether (a) legal costs and (b) compensatory payments resulting from investor state dispute settlement claims relating to acts by the Scottish Government would be paid by the Scottish Government; and if he will make a statement.
23 March 2016
If the UK were to lose a claim brought under the investor-state dispute settlement (ISDS) mechanism of a trade and investment treaty which relates to an act of a devolved administration, the memorandum of understanding between the UK and the devolved administrations would apply. This provides that the devolved administration would be responsible for the payment of legal costs and awards made by the tribunal to the extent that they arise from the failure of the devolved administration to implement or enforce an obligation or fail to meet their share of an international quota. However, the UK has a good record of creating the right environment for investors and treating them fairly – we have over 90 such agreements in place with other countries and there has never been a successful ISDS claim brought against the UK.