Michael Moore: Calman is the only show in town

ELEVEN years after the first elections to a Scottish Parliament, few would turn back the hands of time.

Devolution has empowered the Scottish people to make choices about their own destiny, and they have made those choices with relish. Today we are in an interesting new phase of our politics where a minority SNP administration in Edinburgh is working alongside a Conservative and Liberal Democrat coalition government at Westminster. I want that relationship to be strong and productive because that is the way to make decisions that will benefit people and communities across Scotland.

To that end, the Prime Minister visited Holyrood in his first week in office and both myself and Danny Alexander, the Chief Secretary to the Treasury, have made formal appearances in the Scottish Parliament. Astonishingly, I am the first Scottish Secretary ever to do so. The two governments now have an opportunity to work together. We will disagree on some things, but both administrations must deal with the record deficit that we have inherited from Labour, and that means hard choices for all of us.

But improving relationships between our governments is not the only change we must make to the devolution settlement. The Scottish Parliament is a powerful institution, but it has few tax-varying powers and it lacks accountability for the money it spends. Under the coalition government, that will change.

The Calman Commission made its detailed recommendations last year to enhance the power of the Scottish Parliament. This autumn we will publish a bill which will do just that. In line with the Commission's conclusions, it will have financial accountability at its heart. It will enhance the devolution settlement and inject a new dimension into Scottish politics.

The bill will ensure that the Scottish Government's spending levels are made in light of their tax policies. The Scottish Parliament will be both empowered and accountable. This will give voters the ability to choose a Scottish Government with the tax and spend policies that they believe in.

But the package of tax proposals, by nature, is complex and we need to get its implementation right - not least because public services in Scotland will become directly dependent on them. That is why David Gauke, the Exchequer Secretary to the Treasury will join me tomorrow to co-chair the first meeting of a high-level implementation group that will draw on external financial expertise and work through the tax compliance issues arising from the Calman finance proposals. This shows our determination to work with others and get the detail right, but it is also a statement of purpose and progress. We are moving to implementation.

It is also important to note the level of expertise and engagement that went into the original Calman Report. Yes, a group of 15 experts led the work, but it was also the culmination of an extensive programme of engagement all across Scotland.

Academics, economists, representatives of civil society and prominent business figures, including the then Chair of the Scottish Council for Development and Industry and the Director of CBI Scotland, all took part.

The taxation system Calman recommends already works well overseas - for example, in Canada where provincial and federal governments share a number of tax bases.

And it will deliver the direct benefits of a financially accountable Parliament while continuing to allow enterprises and individuals to benefit from the economic resilience associated with diversification across many economic sectors and the large internal market that the UK provides. This is a stable and effective model in which the Scottish economy can prosper through flexibility and strength.

It is in light of this that the Conservatives, Labour and the Liberal Democrats all made manifesto commitments around the Calman Report and why, by extension, the coalition government also endorsed its principles, announcing a Scotland Bill in the first Queen's Speech of this administration.

Of course there are alternative models and different opinions out there. I respect them. But changing the constitutional settlement requires detailed analysis, proper consultation and a substantial cross-party agreement. When these three key tests are applied, it is Calman alone that passes each one. That is why debate about alternatives is a theoretical exercise - quite aside from the legitimate debate about the real risks and merits inherent to full fiscal autonomy and other possible outcomes.

Right now, the choice to be made is Calman. A team of officials is working on the legislation and direction of travel is clear. I want as many people as possible to come on board and make this new settlement a lasting and rewarding one for the Scottish economy and Scottish society.

• Michael Moore MP is the Secretary of State for Scotland