Oral Answers to Questions

Baroness Clark of Kilwinning Excerpts

Wednesday 22nd February 2012 Commons Chamber

[David Mundell]

The severe disability premium and all other benefits are clearly set out by the United Kingdom Government. The Scottish National party has failed to set out how a single benefit in Scotland would be paid for post independence, if it were ever achieved.

[Katy Clark (North Ayrshire and Arran) (Lab)]

9. What discussions he has had with the Secretary of State for Defence on the future of DM Beith.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

I spoke to the Under-Secretary of State for Defence, my hon. Friend the Member for Mid Worcestershire (Peter Luff), last week on this issue. As he confirmed on Monday, there are no current plans to change the status of DM Beith. There is a need to maintain Beith until the Spearfish torpedo has been converted to a single-fuel system, when the need for specialist facilities may lapse. The conversion programme is expected to be completed around 2018.

[Katy Clark]

Defence Munitions Beith is one of the largest employers in North Ayrshire and is wholly dependent on Ministry of Defence contracts. Will the Minister ensure that there is a ministerial visit to the facility from the Scotland Office to find out what more can be done with a view to ongoing representations for future contracts with the Ministry of Defence?

[David Mundell]

I am pleased to be able to confirm to the hon. Lady that the Secretary of State for Scotland will be pleased to visit that facility in her constituency.

Oral Answers to Questions

Baroness Clark of Kilwinning Excerpts

Wednesday 11th January 2012 Commons Chamber

[Michael Moore]

I pay tribute to my hon. Friend’s dad’s sense of patriotism and I am sure that he, like many other Scots around the country and around the world, will wish to contribute to our consultation. Like me, they will want to see this referendum on the most historic decision we will ever take in Scotland carried out legally and fairly, on a straightforward and decisive basis. Let us get that sorted and let us get on with the debate.

[Katy Clark (North Ayrshire and Arran) (Lab)]

9. What steps he has taken to address youth unemployment in Scotland.

[The Secretary of State for Scotland (Michael Moore)]

rose— [Interruption.]

--- Later in debate ---

[Michael Moore]

The Government have committed £1 billion over the next three years to implement the youth contract. Our package of support includes wage incentives for employers to recruit 18 to 24-year-olds from the Work programme and increased work experience opportunities for that age group. Other support is also available.

[Katy Clark]

I thank the Secretary of State for that answer. He is well aware of the rising levels of youth unemployment in North Ayrshire and I know that he has received strong representations about it from all the Ayrshire MPs. What more does he think that this Government can do at Westminster to increase public and private investment in North Ayrshire?

[Michael Moore]

I acknowledge the work that the hon. Lady has done and the fact that we recently met to discuss this very serious issue. It is important that the youth contract, which my right hon. Friend the Deputy Prime Minister visited Scotland to discuss on Friday, is taken advantage of by people across the country. I look forward to coming to the hon. Lady’s constituency in the near future to meet those very people so that we can discuss how to implement it most effectively.

Scotland’s Constitutional Future

Baroness Clark of Kilwinning Excerpts

Tuesday 10th January 2012 Commons Chamber

[Michael Moore]

My hon. Friend has put her finger right at the heart of the issue. There is no distinction in the legal status of referendums in Scotland between one that might be considered advisory or consultative on the one hand, and a so-called legally binding one on the other. The Scottish Parliament does not have the power to have a referendum on independence. We are offering a way by which we can devolve that power on a fair and reasonable basis that will ensure that we get a clear and decisive outcome.

[Katy Clark (North Ayrshire and Arran) (Lab)]

The Secretary of State will be aware that the SNP is putting a significant amount of effort into fundraising, given that this is basically everything that they are all about. What does he think his role should be in ensuring that there is a full debate in Scotland? Does he agree that many people in Scotland have not really given proper consideration to the arguments for and against separation?

[Michael Moore]

The hon. Lady gets to the heart of the issue about how we would conduct the referendum when it takes place and the need for it to be done on a basis that is recognised and not challenged by people who are either participants or voters. It is important that spending limits and all other aspects of the rules of the process are clear. It is for that reason that we are suggesting that the Electoral Commission might be, or would be, the appropriate way to oversee the process. I hope that as we debate this people will agree on that point.

Public Sector Pensions

Baroness Clark of Kilwinning Excerpts

Thursday 8th December 2011 Commons Chamber

[David Mundell]

I know the hon. Gentleman does not want Scotland to remain in the United Kingdom—that is his policy—but he and his Government have the ability to make this choice, as the hon. Member for Dundee West (Jim McGovern) set out, yet they have chosen not to do so.

[Katy Clark (North Ayrshire and Arran) (Lab)]

We should look at what the SNP has actually done in this respect. It has responsibility for the Scottish Public Pensions Agency, whose submissions to the Hutton review were far worse than what the coalition Government propose.

[David Mundell]

I will not presume that the hon. Lady was complimenting the Government, but she is correct in that all four of the suggestions the Scottish Government made to the Hutton inquiry would certainly leave Scottish public sector workers no better off than under the UK Government proposals, and a number of those suggestions would leave them distinctly worse off.

--- Later in debate ---

[David Mundell]

I absolutely agree. The speech from the hon. Member for Arfon seemed to me, particularly on Wales, to be very much an argument for the status quo.

[Katy Clark]

We already know that public sector pensions are, on average, less than £5,600 a year, so if they are going to be even lower what will people live on—state benefits?

[David Mundell]

There is no suggestion that those on the lowest pay will receive lower state pensions. The Labour party has been very keen to engage in such scaremongering, but the Government’s proposals specifically protect those on the lowest earnings of below £15,000.

Before I finish, I want to turn to some of the specifics about Scotland.

--- Later in debate ---

[Guto Bebb]

I thank my hon. Friend for the clarity of his point.

The proposal is a reasonable one. We are aiming to protect those on lower pay. Some in my constituency of Aberconwy will be astounded by the figure given by the hon. Member for Glasgow North East (Mr Bain)—he stated that only 16% of public sector workers earn less than £15,000. The average wage in my constituency is £23,000 and the average private sector wage in Wales is £21,000, so there will be a question about whether the proposal is unfair.

That reminds me of the comments made on the RPI to CPI change. The change was illustrated with the example of a nurse or dinner lady who earns £8,000 a year. I recently did a call-in programme on Radio Cymru. A headmaster from the constituency of the hon. Member for Arfon (Hywel Williams), as it happens, called in and stated that the change from RPI to CPI was extremely unfair because it would cost him £200,000. The average private sector pension pot is £30,000. Hon. Members can imagine that the response of the general public when they heard that comment was pretty strong. The changes that the Government are trying to make are changes for the long-term, to try to ensure that we have a system that works.

It is imperative that hon. Members mention some of the e-mails that they have received from the trade union movement. I received one this morning from the Public and Commercial Services Union stating that the claim that the coalition is trying to protect the lower paid is not sustainable. The PCS directs us to a comment by Cathy Newman, who says that it is “fanciful” for the coalition Government to try to claim that they are protecting the lower paid. I am disappointed with that comment, but then the PCS does not bother to remind us of other comments that Cathy Newman has made. She also says:

“Having said that though, public sector pensions, even after these reforms, will still be the envy of many a worker in private enterprise.”

That is the key point in Wales. We are looking at how we can ensure that the people who benefit from extremely good pensions contribute a fair amount towards them. For example, will increasing a teacher’s pension contribution from 6% to 9% have an impact on their take-home pay? Yes, it will—I would be the first to acknowledge that—but it is important to state that to end up with a pension similar to what will be available to a teacher as a result of the changes, somebody working in the private sector would have to contribute 35% or 38% of their take-home pay.

[Katy Clark]

Will the hon. Gentleman give way?

[Guto Bebb]

No, I will not take another intervention.

That disparity will still exist because the coalition Government value public sector workers. That is not to say that we do not value people who work in the private sector, but we acknowledge the importance of the public sector, we want to protect it and we want to bring in changes that are sustainable, fair to taxpayers and fair to the public sector. I ask any Opposition Member to tell me what is unfair about asking a teacher to contribute 9% of salary for a pension that a comparable worker in the private sector would have to contribute 35% to achieve. I ask any Opposition Member to stand up and tell me why that is fair. I see nothing.

Finally, I will turn to the Welsh context—

[Katy Clark]

rose—

[Guto Bebb]

I want to get a few points in about Wales to finish.

In this debate, Plaid Cymru Members have said that they are standing up for their electorate and their workers. I applaud them for that. Of course people need to stand up for those who elect them to this place, but it is also important to point out that the constituency of the parliamentary leader of Plaid Cymru has the highest rate of self-employed people in the United Kingdom. What has Plaid said about supporting the pension provision of those individuals?

I accept that Wales has a high percentage of people working in the public sector, but in many constituencies the majority of people are striving to earn a living in the private sector. When we have a limited amount of money, the Government have a responsibility to all taxpayers to ensure that we have a system of pension provision that is fair to all. It is simply not sustainable to expect the three quarters of the people in Wales who work in the private sector or who are self-employed—many of whom live in the constituencies of Plaid Cymru Members—to pay through their taxes for the pensions of those who will retire on better pensions.

These changes will ensure that the public sector is protected, but they will share the burden in a slightly fairer way than at the moment, and I applaud the coalition for bringing forward a long-term change with courage and commitment.

--- Later in debate ---

[Katy Clark (North Ayrshire and Arran) (Lab)]

I strongly welcome the chance to debate this topic. I will focus very much on the Government, rather than on what the SNP Administration in Edinburgh are going to do, because the focus has to be on making sure that we have national schemes that ensure that everybody in this country has a decent pension. The negotiations are happening down here, but the historical reality has been that the Scottish schemes have simply led to a mirroring of whatever has been decided in the national discussions. So people in Scotland are looking closely at what the coalition Government are doing. It would be very unfortunate to do anything other than maximise the pressure on this Government at the moment.

When we have debates on this issue, Government Members all too often raise the appalling situation of private sector pensions in this country. We do need to treat that as a priority, because the loss of manufacturing, the rise of low-paid and insecure jobs in the private sector, and the decision by firms to take payment holidays and by employers to fail to invest in private pensions schemes when times were good have led to so many private schemes coming to an end. As we have already heard, however, on average public sector pensions in this country give people only up to about £5,600 a year. The reality is that those people will not be able to live on that kind of income in retirement.

I believe the debate we need to have is about how to set up schemes in both the private and public sector that ensure we are saving sufficiently both individually and collectively to ensure a decent income in retirement. I am therefore concerned that the Government are moving away from the decision on auto-enrolment, which will happen in May 2015 rather than April 2014. The Government’s proposals for public sector pensions mean that people will have to pay more with the 3.2% increase, will have to work longer and will get a worse pension at the end of it.

We have heard a lot about teachers from both the Minister and from the hon. Member for Aberconwy (Guto Bebb) and teachers are a good example. We hear so much about the deficit but this debate is not about that; it is about the long-term arrangements that must be put in place. The Government’s proposals are not about the sustainability of the schemes. We must ensure that both employers in the public sector and individuals are putting enough in. The proposals for teachers mean that compared with the current scheme, which costs 20.5% of pay with the employer paying 14.1% and the individual 6.2%, the employer’s contribution would be reduced to 10.5%. We are seeing that throughout the proposals put on the table by the Government.

The Government are using the economic situation to cut their contribution, as an employer, to public sector pensions while at the same time increasing the contributions of the worker. Many people will opt out of pension schemes if the proposals go ahead. Let us ensure that over the coming weeks we put pressure on the Government so that they seriously consider public sector pensions and make proposals that will lead to pensions that people can live on.

Oral Answers to Questions

Baroness Clark of Kilwinning Excerpts

Wednesday 9th November 2011 Commons Chamber

[David Mundell]

I agree with my hon. Friend, just as I agree with Bertie Armstrong, chief executive of the Scottish Fishermen’s Federation, who stated in his evidence to the Environment, Food and Rural Affairs Committee, which she chairs, that the UK should speak with one voice in fisheries negotiations.

[Katy Clark (North Ayrshire and Arran) (Lab)]

What discussions has the Minister had with the Under-Secretary of State for Environment, Food and Rural Affairs, the hon. Member for Newbury (Richard Benyon) about tradeable quotas to ensure that they are not taken advantage of by multinationals who use the UK as a flag of convenience?

[David Mundell]

I am sure that the Under-Secretary will have understood the hon. Lady’s point. She, like me, will welcome the fact that there will be a Backbench Business Committee debate on fisheries next week.

Oral Answers to Questions

Baroness Clark of Kilwinning Excerpts

Wednesday 22nd June 2011 Commons Chamber

[Michael Moore]

First, may I thank the hon. Gentleman for his full participation in the seminar? It was the first in a series that we will hold across Scotland to tackle a deep-rooted problem, not just in Ayrshire but elsewhere, that has defied Governments through the ages. He rightly points out that my right hon. Friend was at that seminar; we continue to discuss the serious challenges in relation to youth employment and I will be happy to discuss those further with the hon. Gentleman in due course.

[Katy Clark (North Ayrshire and Arran) (Lab)]

As the Secretary of State knows, Ayrshire has some of the worst rates of unemployment and youth unemployment in Scotland. In 2007, Scotland had the highest levels of employment in Britain, but it now has the lowest levels of employment and the highest levels of unemployment. What more can the Westminster Government do to work with the Scottish Government to take concrete steps to address the problem?

[Michael Moore]

I make two observations to the hon. Lady. First, we need to get the economy into a place from which we can see sustained, strong and balanced growth, which would be a complete contrast to the situation we inherited from her Government. On her second point about working with the Scottish Government, she is right to highlight the serious economic powers that they already have and it is vital, as I said to the hon. Member for Kilmarnock and Loudoun (Cathy Jamieson) earlier, that we work together to ensure that we do the best for people across Scotland.

Oral Answers to Questions

Baroness Clark of Kilwinning Excerpts

Wednesday 9th March 2011 Commons Chamber

[David Mundell]

I am aware of the sense of outrage, not just in Scotland but throughout the UK, at the state of the economy that the last Labour Government left us with, which has required such measures to be taken.

[Katy Clark (North Ayrshire and Arran) (Lab)]

Does the Minister not accept that the recent increase in VAT, particularly on fuel such as petrol and diesel, is having a more dramatic effect on the economy in rural areas? Does he not think that his Government should address that?

[David Mundell]

The hon. Lady would be much more credible on that point if she had spoken out against her Government’s rises in duty. The issue of fuel prices in rural areas is serious, and it is already clear that my right hon. Friend the Chancellor has heard the concerns.

Oral Answers to Questions

Baroness Clark of Kilwinning Excerpts

Wednesday 1st December 2010 Commons Chamber

[David Mundell]

This Government are committed to supporting the voluntary sector in Scotland and elsewhere in the UK, but the hon. Lady should tell people in that sector and elsewhere in Scotland that the rise in VAT is a consequence of her party’s Government’s overspending.

[Katy Clark (North Ayrshire and Arran) (Lab)]

10. What discussions he has had with ministerial colleagues on commissioning a Ministry of Defence hospital unit in Scotland.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

Although there are currently no plans to extend the existing network of Ministry of Defence hospital units, I can assure the hon. Lady that the Government recognise the importance of maintaining world-class medical services for our armed forces in the UK.

[Katy Clark]

Despite the increase in the number of injured coming back, we have no MOD hospital unit in Scotland. Organisations such as the Royal British Legion Scotland believe that there should be one. Will he meet the Royal British Legion Scotland, myself and any interested colleagues to discuss the matter?

[David Mundell]

Indeed, I am happy to meet the hon. Lady and any colleagues. It is important to say, though, that many military personnel are treated extremely well in non-military hospitals in Scotland, where they are closer to their friends and family.

Oral Answers to Questions

Baroness Clark of Kilwinning Excerpts

Wednesday 27th October 2010 Commons Chamber

[David Mundell]

The Scotland Office has been in dialogue with Citizens Advice Scotland—and, indeed, with the Scottish Government—about the services it currently provides and those it will provide if the functions from Consumer Focus Scotland are transferred to it. The hon. Lady makes an important point about the provision of advice, not just about the benefit she mentioned, but about all benefits.

[Katy Clark (North Ayrshire and Arran) (Lab)]

2. What recent discussions he has had with ministerial colleagues on trends in levels of employment in Ayrshire; and if he will make a statement.

[The Secretary of State for Scotland (Michael Moore)]

The Government are committed to creating the right conditions in Ayrshire and elsewhere to ensure sustainable economic growth and, with it, employment opportunities.

[Katy Clark]

I thank the Secretary of State for that answer. Has he had the opportunity to look at the Experian report, which has received some coverage in the press over the last few days? It says that, owing to the high dependence on public sector jobs and the poor performance in other sectors of the economy, North Ayrshire will be the part of Scotland that finds it most difficult to recover from the recession. Will he look at that report, consider what impact the loss of public sector jobs will have in North Ayrshire and meet colleagues who represent the area to discuss what needs to be done to protect the economy?

[Michael Moore]

I have seen the report and I appreciate the challenges faced in North Ayrshire and elsewhere. Our challenge as a Government is to tackle the deficit we inherited from the previous Labour Government, under whom unemployment was rising significantly. All the measures we have announced in the Budget and the spending review are designed to tackle that, but I would be happy to meet the hon. Lady and other colleagues to discuss the situation.

Oral Answers to Questions

Baroness Clark of Kilwinning Excerpts

Wednesday 21st July 2010 Commons Chamber

[Michael Moore]

Given the legacy that we were left by the Labour Government, it is essential that we tackle the deficit so that we can tackle interest rates and do not pay the cost in jobs. As far as the private sector is concerned, the measures introduced by my right hon. Friend the Chancellor in the Budget, which we passed in the Third Reading of the Finance Bill last night, will see corporation tax lowered over the course of this Parliament, and include others to boost the private sector.

[Katy Clark (North Ayrshire and Arran) (Lab)]

Given the delicate state of the Scottish economy and the fears about the recovery, does the Secretary of State accept that the proposed massive cuts in public spending—including the huge job losses and the taking of so much money out of the economy—risk a double-dip recession?

[Michael Moore]

If we do not get rid of the historic deficit inherited by the Government—at £155 billion, the largest in peacetime history—we will pay the price in lost jobs for years and years to come. It is essential that we tackle that and take on board the other measures set out in the Budget to ensure we get a good private sector-led recovery, which will fund future public services.