Oral Answers to Questions
David Mundell Excerpts(7 years, 6 months ago)
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Antoinette Sandbach (Eddisbury) (Con)
The Secretary of State for Scotland (David Mundell)
As the Prime Minister has said,
“at the heart of the United Kingdom is the unity of our people: a unity of interests, outlook and principles. This transcends politics and institutions, the constitution and the economy. It is about the values we share”
and our “solidarity”. I will never stop making the passionate and positive case for our United Kingdom, and I look forward to having the opportunity to do so during the forthcoming general election.
Antoinette Sandbach
With the Defence Secretary confirming a £1.7 billion investment in Scottish military bases, does my right hon. Friend agree that Scotland plays a crucial role in defending my constituents in Eddisbury and those throughout the whole United Kingdom from growing threats at sea, in the air and on land, and that the divisive policies of the nationalists threaten that crucial role?
David Mundell
I absolutely agree with my hon. Friend—Scotland is on the frontline of defending the United Kingdom from growing threats at sea, in the air and on land. It is the home to essential defence capabilities, and our commitment to the future of defence in Scotland is underlined by increasing investment in better infrastructure for our armed forces, which is helping them to keep the whole of the United Kingdom safe.
Ian Murray (Edinburgh South) (Lab)
Given that in the last quarter the Scottish economy contracted by 0.2%, is it not about time we got off the independence referendum—and, indeed, the general election—merry-go-round, and got the Prime Minister and the First Minister to concentrate on what is important, which is the economy of Scotland?
David Mundell
The hon. Gentleman would have a lot more credibility in making that statement if he was not standing on the ticket of a leader who has said that he has no problem with another independence referendum and who clearly would do a deal with the Scottish National party to get the keys of No. 10.
Mr Philip Hollobone (Kettering) (Con)
Will the Secretary of State confirm that Scotland’s membership of the single market of the United Kingdom is more important to Scotland than its membership of the single market of the European Union?
David Mundell
My hon. Friend is correct. It is absolutely right to highlight the fact that the market for Scottish goods and services in the rest of the United Kingdom is four times greater than that market in the EU. The UK is the vital Union for Scotland.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
In the last few years, Iceland and Ireland have leapfrogged the UK in terms of growth and deficit reduction, and they have always had a higher GDP per capita over the last 10 years. Norway’s oil fund is now $920 billion, having grown by $105 billion from $815 billion. The equivalent figures for the UK are zero, zero and zero. Does the Secretary of State not agree that Scotland could be as good as tiny Iceland, as good as Ireland and even as good as Norway with our independence? What is he scared of for Scotland?
David Mundell
I well remember when the SNP advocated the “arc of prosperity” for Ireland, Scotland and Iceland. I very much doubt that the people of Scotland would want to endure the pain that the people of both Iceland and Ireland have endured to ensure that their economies are back on a stable footing.
Angus Robertson (Moray) (SNP)
Perhaps all of us on this side of the House can agree that Scotland’s greatest contribution has been to show that there is actually an alternative to the destructive policies of this UK Tory Government. It is worth remembering that in Scotland we have free prescriptions, free eye tests, free childcare and free university tuition. We have scrapped bridge tolls, reopened railways and invested in infrastructure, and we are building more council houses than any UK nation. That is what the SNP has delivered in government in Scotland. Does the Secretary of State not agree that that stands in marked contrast to the Tories’ mismanagement and destruction of public services south of the border?
David Mundell
What I see in my constituency is falling educational standards, with Scotland’s once-proud education system having the lowest international ratings ever. What I see is my constituents experiencing increasing waiting times for the health service and having to deal with inadequate infrastructure. I do not believe that the SNP Government in Scotland are focusing on the day job. They are focusing on their obsession—independence.
Angus Robertson
Quotes about doing the day job when the Government are calling an early general election are a bit cynical. Let us rest on a neutral observer, not a Tory party research officer. What about the director of the Institute of Health and Society, who said:
“Scotland is in a much stronger position than England with respect to both health and social care”?
He went on to say:
“The problem is at the moment that the English government is not committed to a national health service”.
Is not that another example of the fact that the real alternative to the Tory UK Government is the progressive policies of the SNP?
David Mundell
Absolutely not, and I look forward to debating these subjects over the next six weeks. The right hon. Gentleman was very careful not to mention education standards in Scotland, which the latest international figures demonstrate are the lowest ever on record. That is not a proud record of the Scottish Government. I look forward to holding them to account over the next six weeks.
Chris Elmore (Ogmore) (Lab/Co-op)
The Secretary of State for Scotland (David Mundell)
In our negotiations with the EU, we will be seeking the best deal for all parts of the UK. The Joint Ministerial Committee (EU Negotiations) was established to facilitate engagement between the UK Government and devolved Administrations, and has had regular substantive and constructive discussions.
Chris Elmore
If the Secretary of State is so keen on and supportive of the JMC, why did the Government vote against putting it on a statutory footing for Brexit negotiations during the passage of the European Union (Notification of Withdrawal) Act 2017? Secondly, when was the last time a positive idea—I am sure that there have been many from the devolved Administrations—was taken on board to form part of the Brexit negotiations to improve the exit from the EU for the devolved nations?
David Mundell
We have been very clear about “Scotland’s Place in Europe”, the Scottish Government’s contribution to the discussions. There have also been constructive contributions from the Welsh Government and the Northern Ireland Executive. They have set out many things that formed part of the White Paper and the Prime Minister’s speech. They will be part of the discussions as we negotiate our exit from the EU.
Stephen Crabb (Preseli Pembrokeshire) (Con)
The role of the machinery of government in helping to hold together the United Kingdom is an important issue. Does my right hon. Friend agree that a priority for the new Government should be to take a long, hard look at developing new ways of working between Ministers and civil servants across the devolved Administrations to strengthen our United Kingdom?
David Mundell
I absolutely agree with my right hon. Friend, who has considerable experience. Despite what we hear at Question Time and in the media, the UK Government and the devolved Administrations are able to work together very closely and constructively on a range of issues. That is the element that we should support and promote.
Pete Wishart (Perth and North Perthshire) (SNP)
The Prime Minister told the Scottish Parliament that
“now is not the time”
when it wanted to let Scotland decide its own future and relationship with Europe, but now is the time for a screeching U-turn and this opportunistic general election. Does the Secretary of State therefore also believe that it is time for the Scottish people to reject the UK Government’s austerity obsession, their assault on the poor, the obnoxious rape clause, and their desire to drive Scotland over the cliff edge of their hard Brexit?
David Mundell
I acknowledge that the hon. Gentleman is an expert on screeching, but the Prime Minister’s proposal to have a general election in six weeks’ time, to ensure certainty, clarity and security for the period of the Brexit negotiations, is different from a proposal to have a disruptive referendum campaign during the period of those negotiations.
Marcus Fysh (Yeovil) (Con)
Common commercial policies for the UK to pursue as we leave the EU, for example in animal health and food safety, are as essential to Scotland as they are to Somerset. How can the JMC help to ensure that they will be adopted?
David Mundell
I would certainly hope that the JMC(EN) will be involved in the discussion on the repatriation of important powers from the EU to the Scottish Parliament and the other devolved Administrations. I recognise more than anyone how important it is to have common animal welfare arrangements, as the main livestock market for my constituency is a mile south of the Scottish border in England.
Deidre Brock (Edinburgh North and Leith) (SNP)
Scotland voted to remain in the EU and the single market, but the Scottish Government’s paper that would have kept Scotland in the single market and the UK was roundly ignored by a Tory UK Government intent on pursuing a reckless hard Brexit. Will the Secretary of State tell us what personal action he took to convince the Prime Minister to take account of the views of the people of Scotland, and can he provide an explanation for why he failed?
David Mundell
I have been clear that “Scotland’s Place in Europe” did play an important part in the Government’s thinking—[Interruption.] Just so that the hecklers on the Opposition Benches are clear, the Government formally responded to the Scottish Government in relation to “Scotland’s Place in Europe”. Surprisingly, the Scottish Government asked us not to publish our response.
Kevin Foster (Torbay) (Con)
In the Secretary of State’s assessment of the effectiveness of the Joint Ministerial Committee, did he share my conclusion that it would be much more effective if all parties were focused on building a strong UK after Brexit, not separatist agendas?
David Mundell
As we head into unprecedented peacetime negotiations with the EU, it is vital that all parts of the United Kingdom pull together to take a Team UK approach. By doing so, we will get the best possible deal for Scotland and the whole UK.
Mr David Anderson (Blaydon) (Lab)
The JMC is supposed to be the platform through which the devolved Administrations have their voices not just heard but responded to. The Secretary of State paints a rosy picture, but he is not listening to those voices. Northern Ireland voices are not being heard at the moment, because they are not allowed to attend. From what we have heard this morning, the Scots are saying clearly that their voice is being ignored. The Welsh feel, at best, less than impressed. Will the Government give this body the teeth it needs, put it on a statutory footing and let it do its job properly?
David Mundell
The purpose of the JMC is to bring together the UK Government and the devolved Administrations, and to work together to formulate our position as we go forward in the negotiations. I very much regret the fact that the Northern Ireland Executive have not been able to be politically present in recent times—we all want that situation to be brought to a conclusion—but the meetings have been robust and, I believe, certainly in terms of the actions that have flowed from them, constructive.
Chris Davies (Brecon and Radnorshire) (Con)
Mr Ranil Jayawardena (North East Hampshire) (Con)
The Secretary of State for Scotland (David Mundell)
The UK and Scottish Governments continue to engage closely on the devolution of new tax powers. The Scottish Government are now responsible for setting the rates and thresholds of income tax. It is of course incumbent on them to use their powers to make Scotland an attractive place to live and work.
Chris Davies
Now that the Scottish Government have unprecedented power to shape the economy of Scotland, will my right hon. Friend join me in calling on the Scottish National party to start delivering jobs and economic growth in Scotland, rather than focusing on a second independence referendum? [Interruption.]
David Mundell
The shouts from Opposition Members just highlight the complacency of the SNP in relation to the Scottish economy, which contracted by 2% in the fourth quarter of 2016 while the UK economy grew by 0.7%. No Scot can be proud of that comparison.
Mr Jayawardena
Does my right hon. Friend agree that it is terrible that middle earners in Scotland are being penalised £400 this year by the Scottish Government, and by up to £1,400 by 2020-21, compared with England, where we have higher tax thresholds to help hard-working families?
David Mundell
My hon. Friend is right to highlight that point. I might not like the plans to make Scotland the most taxed part of the United Kingdom, but I acknowledge that that is a matter for the Scottish Government. They will have to account for their taxation policies, and the forthcoming general election will no doubt highlight these issues.
Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)
The average band D council tax bill in Scotland is almost £400 lower than it is in England. Will the Secretary of State’s discussions consider how local authorities in England can learn from Scotland’s successes in providing local and national services while maintaining the lowest council tax rate in the UK?
David Mundell
The hon. Lady may have spoken to the SNP press office, but she certainly has not spoken to councils throughout Scotland, which are uniform in their negativity in respect of the Scottish Government’s approach to local government funding.
Hannah Bardell (Livingston) (SNP)
As a last act of kindness, and while he still has his seat and his position, will the Secretary of State address the closure of the Her Majesty’s Revenue and Customs office in my constituency, which threatens 1,000 job losses and a move to Edinburgh? A cross-party group of politicians, including members of his own party, has written to him, but he has ignored that. As his swansong, will he come to Livingston and save those jobs?
David Mundell
As the hon. Lady knows, I have set out clearly, in correspondence with all who have been in touch with me, the rationale for the move and the changes in the arrangements for HMRC. Many of those changes were called for by Members on both sides of the House on the grounds of efficiency and effectiveness, but obviously no Members like to see significant changes in employment patterns in their constituencies, and I commend the hon. Lady for the way in which she has pursued the issue.
Dr James Davies (Vale of Clwyd) (Con)
Alberto Costa (South Leicestershire) (Con)
The Secretary of State for Scotland (David Mundell)
Sales from Scotland to the rest of the UK are now worth nearly £50 billion, an increase of over 70% since 2002 and four times the value of exports from Scotland to the EU. There is no doubt that the United Kingdom is the vital Union for Scotland.
David Warburton
Does my right hon. Friend agree that the best deal for Scotland is to stay part of the United Kingdom and to work with the UK Government to do all it can to support a new free trade agreement with the EU?
Mr Nigel Evans
The International Monetary Fund predicted dire consequences for the UK economy if we voted Brexit, yet it upgraded our growth yesterday, for the second time in three months, to 2%. Much of the confidence about the growth in the UK economy is deserved under the leadership of our Prime Minister. Does my right hon. Friend agree that when people look to buy British, as a quality marque “made in Scotland” is very important?
Stuart Andrew
My constituency has a long and proud tradition of textile companies, many of which trade with all parts of the United Kingdom. How will those companies be helped by Scotland leaving the hugely successful UK single market?
David Mundell
Obviously, they will not, because, as my hon. Friend will know, in 2015 Scotland exported £49.8 billion to the rest of the UK, four times more than exports to the EU and three times greater than sales to the rest of the world.
Alberto Costa
The benefits to Scotland of full access to the UK market are clear. Does my right hon. Friend agree that Scottish representation in this Parliament must focus on what benefits the whole of the UK single market?
David Mundell
Absolutely. That is why I can confirm to my hon. Friend that when Ruth Davidson and the Scottish Conservatives go into the general election, it will be on the basis of keeping Scotland at the heart of our United Kingdom.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
David Mundell
Of course countries can have close trading relationships, but Scotland benefits from being part of the United Kingdom because there are no barriers to trade, and there is freedom of movement between Scotland and the rest of the UK. That is good for Scottish business and the hon. Lady should support it.
Steven Paterson (Stirling) (SNP)
David Mundell
From my discussions with the Scottish food and drink industry, I understand that its greatest concern is that the Scottish National party would seek to drag Scotland out of the United Kingdom.
Kirsten Oswald (East Renfrewshire) (SNP)
Does the Secretary of State stand by his comments last year, when he said:
“My role is to ensure Scotland gets the best possible deal and that deal involves clearly being part of the single market”?
Will he be honest with his constituents in a few weeks’ time? Will they be voting for an MP who supports being in the single market, or for one who wants to go along with a damaging hard Brexit, whatever the cost to families and businesses in his constituency?
David Mundell
When I contest my constituency in the next general election, I look forward to knowing exactly what the SNP position is on the EU. Is it for taking Scotland back into the EU, or is it not? I hope we will find out in the next six weeks.
Martin Docherty-Hughes (West Dunbartonshire) (SNP)
The Tories’ strategy worked a treat against the Liberal Democrats in the south-west of England at the last election. Will the Secretary of State be urging his colleagues to export that strategy to Scotland in the coming election?
David Mundell
Ruth Davidson has already made it absolutely clear that her stance in the forthcoming general election will be to stand up for Scotland’s membership of the United Kingdom and against a divisive second independence referendum.
Oral Answers to Questions
David Mundell Excerpts(7 years, 8 months ago)
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Heidi Allen (South Cambridgeshire) (Con)
The Secretary of State for Scotland (David Mundell)
Following the EU referendum, Scotland Office Ministers have regularly met representatives of Scottish industry and business. What comes out clearly is the appetite to seize and make a success of the opportunities afforded to us by leaving the EU, forging a new role for ourselves in the world to negotiate our own trade agreements and be a champion for free trade.
Heidi Allen
I am a bit scared to ask my supplementary question because I think my Scottish National party colleagues have had three Weetabix this morning. My question is about exports, of which Scotland has made a fantastic success, particularly in food and drink. How confident or worried should we be if we come out of Europe that those markets will be damaged, and what can the Government do to support them?
David Mundell
My hon. Friend is absolutely right to highlight food and drink as Scotland’s top manufacturing export, accounting for £8.9 billion in 2015. Leaving the EU offers us the opportunity to negotiate new trade deals across the globe and create even more opportunities for Scotland’s world-renowned food and drink.
Angus Robertson (Moray) (SNP)
Agriculture and fisheries are key parts of the Scottish economy and Scotland’s export sector. Powers for both are devolved to the Scottish Government. Under the Secretary of State’s Government’s plans, will all decisions on agriculture and fisheries be taken by the Scottish Parliament and the Scottish Government after Brexit?
David Mundell
As the right hon. Gentleman knows, the Government have confirmed in the White Paper that all the powers that the Scottish Parliament currently exercises in relation to agriculture, fisheries and all other issues will continue. We wish to have a dialogue with the Scottish Government, the other devolved Administrations and stakeholders about what happens to powers that are currently held in Brussels and where they will rightly rest after the United Kingdom leaves the EU.
Angus Robertson
Anybody watching this will realise that the Secretary of State did not answer the question. During the Brexit referendum campaign, people were told that decisions currently taken in Brussels on agriculture and fisheries would revert to the Scottish Parliament. The Secretary of State has not given a clear answer to the question, which really matters to our rural industries, our rural economy and Scotland as a trading nation. Let me try the same question again, and I would be grateful if the Secretary of State answered it. Under his Government’s plans, will all decisions on agriculture and fisheries be taken by the Scottish Parliament and the Scottish Government after Brexit—yes or no?
David Mundell
This Government’s plan is to engage with the Scottish Government and with the other devolved Administrations to discuss those serious issues. It is not to go out and tell the people of Scotland that the devolved settlement is being undermined by Brexit, which will lead to the Scottish Parliament exercising more powers. I can give the right hon. Gentleman an absolute guarantee that, after the United Kingdom leaves the EU, the Scottish Parliament and Scottish Ministers will have more powers than they have today.
Mr David Anderson (Blaydon) (Lab)
Before I ask a question, I take the opportunity to send my condolences to the family of my great comrade, Gerald Kaufman, a genuine parliamentarian.
On 12 October, the Secretary of State stood at the Dispatch Box and said
“whatever support is put in place for businesses in the north of England will apply to businesses in Scotland.”—[Official Report, 12 October 2016; Vol. 615, c.287.]
That was in relation to the deal struck with Nissan. Does he stand by that promise?
David Mundell
I associate myself with the hon. Gentleman’s comments about Gerald Kaufman. He was a near neighbour of mine in the previous Parliament and I always found him to be the perfect gentleman.
I made it clear in previous answers that the Government’s approach will be consistent across the United Kingdom.
Mr Anderson
While some businesses and workers are aware of that welcome reassurance, I have yet to meet any businesses in Scotland that know about the commitment to give them the same deal as was done with Nissan. Why has the Secretary of State not been more public about the commitment? Why is it the best kept secret in Scotland?
David Mundell
I have made it clear to the hon. Gentleman how the UK Government are approaching the Brexit negotiations and how we are fully engaged with businesses in Scotland to ensure that we understand their concerns. We can go forward on a basis that will ensure that Scotland and the whole United Kingdom get the best possible deal from the UK leaving the EU.
Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)
Scotland’s international exports have increased by 41% since the Scottish National party Government came into office in 2007, which is a fantastic success story for Scotland. Will the Secretary of State therefore explain why the UK Government failed to negotiate any geographical indications for Scottish produce in the EU-Canada CETA trade deal?
David Mundell
I hope the hon. Lady’s approach on the EU-CETA trade deal is more consistent than that of her parliamentary group. On the Monday of the week when the Canada deal was discussed, SNP Members voted in favour. By the Wednesday, they somehow found that they were against.
Seema Kennedy (South Ribble) (Con)
Ian Murray (Edinburgh South) (Lab)
The Secretary of State for Scotland (David Mundell)
I have regular conversations with the Secretary of State for Exiting the EU on a number of issues. The UK Government have made it absolutely clear in their White Paper that securing the rights of EU citizens in the UK and of UK citizens in the EU is one of our top priorities in the Brexit negotiations.
Ian Murray
The Secretary of State’s answer is not very reassuring given the speculation about a potential cut-off date for EU nationals later this month. The other place will vote on an amendment today that will secure the residency rights of EU nationals. If that is passed, will the Secretary of State urge his colleagues to end this disgraceful uncertainty on residency rights for EU nationals, who contribute so much to the Scottish and UK economies? If he does not, he will send out a very strong message that he is willing to use the lives of EU nationals as a bargaining chip for a hard Tory Brexit.
David Mundell
I agree with one thing the hon. Gentleman says: EU citizens in Scotland, and indeed in the whole United Kingdom, make a significant contribution to civic life and the economy of our country. As the Prime Minister has repeatedly made clear, we want those people to stay. She has sent out a very clear message, and it is clearly set out in the White Paper. We do not believe that the Article 50 Bill is the place to set it out.
Mr Speaker
Order. This is on the importance of the rights of EU nationals. I am sure that that is what the hon. Gentleman meant.
David Mundell
I know that businesses across Scotland value the contribution that EU citizens make to their businesses, and I am clear with them that even when the UK leaves the EU, it will be important for EU citizens still to come to Scotland and play an important part in our economy.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
A recent report from the British Medical Association shows that 40% of European doctors might leave the UK after Brexit because of the Government’s shameful inaction on giving a clear guarantee to EU nationals. Why will the UK Government not do the right thing and give a clear guarantee to EU nationals, who are a valued part of our society in Scotland, that they have the right to remain?
David Mundell
I am absolutely clear about the importance we place on the role of EU nationals in the economy and the health service, but I would take the hon. Lady’s comments about encouraging doctors and other medical professionals to come to Scotland a lot more seriously if her Government had not decided to tax them more than any other part of the UK.
Bob Blackman (Harrow East) (Con)
Does my right hon. Friend agree that as well as safeguarding the role of EU citizens in the UK after we leave the EU, it is vital that we safeguard Scots people who have gone to live in other parts of the EU?
David Mundell
I absolutely agree with my hon. Friend. It is vital that we secure the position of UK citizens in the EU, many of whom are Scots, and it is perfectly legitimate to take forward that issue in conjunction with securing the rights of EU citizens in Scotland and the rest of the UK. I am hopeful that that can be dealt with very early in the negotiations.
Mr David Anderson (Blaydon) (Lab)
It is clear that the Government are happy to play political football with these people’s lives. It shows contempt for 12,000 people working in our health and social care service in Scotland and for 20,000 people working in the food industry, which the Secretary of State has just bragged is the most important part of Scottish industry. When will he stop treating these people this way and give them the guarantee they need to live a happy and secure life in Scotland?
David Mundell
I have made it absolutely clear, as has the Prime Minister, how much we value the contribution that EU nationals make in Scotland to both the economy and civic society. We want them to stay, but we also want UK nationals elsewhere in the EU to be able to stay where they are.
Ben Howlett (Bath) (Con)
Mr Bernard Jenkin (Harwich and North Essex) (Con)
The Secretary of State for Scotland (David Mundell)
The Government are committed to getting the best deal for Scotland and the UK in the negotiations with the EU. The Joint Ministerial Committee on EU Negotiations was established to facilitate engagement between the UK Government and devolved Administrations and has had substantive and constructive discussions in monthly meetings since November.
Ben Howlett
At the last meeting of the JMC, the Prime Minister committed to an intensified engagement with the Scottish Government on their EU proposals. Can he update the House on that process?
David Mundell
When I appeared last week before the Scottish Parliament’s Culture, Tourism, Europe and External Relations Committee, I was able to tell it that in the two weeks since the plenary meeting of the JMC, six substantive meetings had taken place between senior officials so that both Governments could discuss the proposals set out in the document, “Scotland’s Place in Europe”. We regard this as a serious contribution to the debate and continue to engage with it.
Mr Jenkin
May I draw my right hon. Friend’s attention to the fact that the Public Administration and Constitutional Affairs Committee has been taking a great interest in the inter-institutional relationships within the UK, that we produced a report in December on this subject, which I commend to him, and that the main thrust of the recommendations are not about structures and institutions but about natural adversaries sitting down together and developing relationships and bonds of trust and understanding?
David Mundell
Obviously, I very much take my hon. Friend’s work seriously. Despite what often appears in the media, it is possible for the two Governments to engage in a constructive way. We are already in agreement on many issues in the Scottish Government’s document.
Dr Philippa Whitford (Central Ayrshire) (SNP)
It is not just a matter of trying to keep the EU nationals who are currently in our health and social care service. The workforce is the biggest challenge that NHS Scotland faces, so will the Secretary of State support Scotland having the powers to attract EU nationals in future, not just keeping the ones who are here now?
David Mundell
I have said previously from this Dispatch Box that I do not support the devolution of immigration powers to the Scottish Parliament, but I do support arrangements that will ensure that the vital workers needed in depopulating areas, skilled areas and in areas that rely on seasonal workers can come to Scotland.
Tommy Sheppard (Edinburgh East) (SNP)
Earlier, the Secretary of State refused to confirm that Scottish fishing and Scottish agriculture would become the responsibility of the Scottish Parliament. When will his Department present to the Joint Ministerial Committee a list of powers that will be devolved to the Scottish Parliament after Brexit, or will he refuse to do so and simply follow instructions from No. 10?
David Mundell
What I want to do and what I have attempted to do is engage in a constructive discussion and dialogue with the Scottish Government and the Scottish Parliament about how we repatriate powers from Brussels. I do not try to make a serious and wrong political point that this is an attempt to destabilise the Scottish Parliament, because I know that when the process is complete, the Scottish Parliament will have more powers than it does today.
Dr Matthew Offord (Hendon) (Con)
Maria Caulfield (Lewes) (Con)
The Secretary of State for Scotland (David Mundell)
Sales from Scotland to the rest of the UK are worth nearly £50 billion, a figure that has increased by over 70% since 2002 and that is four times greater than the value of exports from Scotland to the EU. There is no doubt that the United Kingdom is the vital Union for Scotland’s economy.
David Mundell
I could not agree more with my hon. Friend. I find it strange that those who make such a fuss about the EU single market seem to have a complete disregard for a market that is four times as large to Scotland’s economy.
Maria Caulfield
Given that Scottish whisky is the largest net contributor to the UK’s balance of trade and goods, is the Secretary of State encouraged by the fact that if we move from the single market to World Trade Organisation arrangements, Scottish whisky will have a zero tariff?
David Mundell
It is important to note that there is a zero tariff for Scotch whisky under WTO rules. As to our future relationship with the EU, my right hon. Friend the Prime Minister has made it absolutely clear that we want to negotiate a free trade agreement with the EU, which would be enormously to the benefit of the Scotch whisky industry.
Pete Wishart (Perth and North Perthshire) (SNP)
All this UK single market business is quite interesting, but is the Secretary of State trying to suggest that a Brexitised isolated UK, desperate for friends and any trading partners, would not trade with an independent Scotland?
David Mundell
What I am suggesting is that if an independent Scotland were to put up tariffs and barriers with its vital largest trading partner, which provides four times as much economic development as the EU, that would be a disastrous series of events.
Mr Andrew Turner (Isle of Wight) (Con)
How is job creation in Scotland affecting the Scottish economy?
David Mundell
It is vital that both the UK and the Scottish Governments work together to maximise the number of jobs created, but it is clear that the one thing the Scottish Government could do to help job creation in Scotland most is take the suggestion of a divisive independence referendum off the table.
Deidre Brock (Edinburgh North and Leith) (SNP)
David Mundell
I also made it clear to that Committee that it was not appropriate to give a running commentary on the Government’s internal discussions on Brexit. What I am committed to do is delivering the best possible deal for Scotland in these Brexit negotiations.
Oral Answers to Questions
David Mundell Excerpts(7 years, 9 months ago)
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Robert Courts (Witney) (Con)
The Secretary of State for Scotland (David Mundell)
As this is the Scottish questions immediately preceding Burns night on Wednesday 25 January, may I wish all those organising Burns suppers or other events in Scotland, across the UK, including here in this House of Commons, and around the world the very best? Robert Burns’ legacy is as relevant today as ever.
The UK Government are committed to a safe and secure transfer of the remaining welfare powers. The majority of welfare powers commenced in 2016, and the transfer of the remaining powers will be overseen by the joint ministerial working group on welfare, which will meet again next month.
Robert Courts
The Scotland Act 2016 gives the Scottish Government powers over benefits in Scotland. Does the Secretary of State agree that the Scottish Government must now set out the detail of how they plan to use those powers to shape Scotland’s welfare system?
David Mundell
My hon. Friend is right about that; the power for the Scottish Parliament to create new benefits in devolved areas came into force in the autumn, and it now has the power to shape that welfare system as it chooses. Some modest measures have already been announced, but it is time that we hear more about the proposals for a new welfare system. A consultation has been held and I look forward to hearing the Scottish Government’s response to it.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
The fact that the UK Government plan to close half of Glasgow’s jobcentres without even knowing the number of affected people is a dereliction of duty. Will the Secretary of State commit to having a word with his Cabinet colleagues and getting those plans dropped?
David Mundell
I do understand the concerns that have been raised about jobcentre closures in Glasgow. I have spoken directly with my colleague the Secretary of State for Work and Pensions. It is the Government’s determination to ensure that there will be no change to the level of service offered to the people of Glasgow. As the hon. Lady and other Glasgow Members will know, there is a public consultation for people who have to travel more than 3 miles or for more than 20 minutes, and it is open until 31 January. I encourage all those affected, and all hon. Members with constituencies affected, to take part in it.
Helen Whately (Faversham and Mid Kent) (Con)
David Mundell
That group has played an important part in establishing the links between the DWP and the Scottish Government. I have been in regular recent contact with Angela Constance, the relevant Minister in the Scottish Government, about their latest proposals on universal credit. Inevitably, the complexity of this area means that as the transfer takes place new issues arise that need to be dealt with. The joint ministerial working group is the ideal place to do that.
Mr David Anderson (Blaydon) (Lab)
I am sure the whole House will join me in sending our condolences to the family of Canon Kenyon Wright, who, sadly, passed away last week. He was a principled man whose legacy should serve as a reminder to all of us that when we work together it is possible to deliver the impossible.
This Tory Government are currently moving disabled people from the disability living allowance to personal independence payments, and it is estimated that the people of Scotland will lose out on £190 million a year as a result. If that was not bad enough, the Government did this a year ago but they withdrew the timetable and have not issued a new one. So can the Secretary of State please inform the House, and indeed the people of Scotland, when they can expect to lose out on this £190 million a year?
David Mundell
First, may I welcome the hon. Gentleman back? He was missed at our last Scottish questions, although the hon. Member for Ealing North (Stephen Pound) entertained the House—I think I can say that. I knew Canon Kenyon Wright and he was indeed a very principled man, with strong personal conviction. He played a very important part in the constitutional convention that led to the establishment of the Scottish Parliament. As we have seen in the media, he is widely mourned.
The hon. Member for Blaydon (Mr Anderson) will know that disability benefits are to be fully devolved to the Scottish Parliament, and the funding of those benefits was dealt with in the negotiations for the fiscal framework. It is now for the Scottish Government to come forward with their proposals for disability benefits in Scotland.
Mike Freer (Finchley and Golders Green) (Con)
David Mundell
My hon. Friend makes a very relevant point. The hon. Member for Blaydon (Mr Anderson) referred to personal independence payments, to which, I know, the Scottish Government are opposed, but I have no idea what they intend to replace them with, or on what timetable.
Angus Robertson (Moray) (SNP)
May I begin by joining colleagues in paying tribute to Canon Kenyon Wright? He not only played a significant role in helping to deliver devolution to Scotland but, of course, in 2014 supported a yes vote for Scottish independence.
The UK Government are planning to close half the jobcentres in Glasgow without even knowing the number of people who will be affected by such a radical change. Was the Secretary of State consulted in advance of the closures, and when did he show enough interest to find out which specific locations would face closure?
David Mundell
I have taken a very close interest in this issue and worked closely on it with my colleagues in the Department for Work and Pensions and the Scottish Government. The Government and I have never suggested that the procedures followed during the process have been perfect, but we have put forward a public consultation for people who are affected and will have to travel more than 3 miles or for more than 20 minutes. I encourage everyone involved to take part in the consultation.
Angus Robertson
The devolution of powers hangs very much together with the hard Brexit plans of the current Government. The Secretary of State has said that his role is
“to ensure Scotland gets the best possible deal and that deal involves clearly being part of the single market.”
Does he still believe that, or has he changed his mind after being told what he should say by his Tory bosses in London?
David Mundell
I do not recognise the Prime Minister’s speech yesterday as a hard Brexit plan. I do not think that the 500,000 Scottish National party voters who voted for Brexit will take kindly to being referred to as right-wing Tory Brexiteers. They were independently minded people in Scotland who voted for what they thought was the right thing for Scotland. It is absolutely clear, as the Prime Minister said yesterday, that we want to have access to the single market, and that is what the quote from me that the right hon. Gentleman just read out made clear. On the other hand, membership of the single market is a quite different thing, as Mike Russell and, privately, the Scottish Government accept.
Several hon. Members rose—
Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)
The Secretary of State for Scotland (David Mundell)
I regularly meet Cabinet colleagues to discuss a wide range of matters. I recently met the Secretary of State for Environment, Food and Rural Affairs to discuss a number of issues relating to the Scottish agriculture sector, and will continue to do so.
Calum Kerr
Last year, the farming Minister told us that there would be an £18 billion Brexit dividend. He said that farmers would continue to get
“as much support—or perhaps even more”
after Brexit. Does the Secretary of State agree that it would be unacceptable if funding to Scottish agriculture was cut after 2020?
David Mundell
There is no suggestion that funding to Scottish agriculture will be cut, but there is the opportunity to move forward from the constraints of the common agricultural policy, which farmers throughout Scotland have often complained about. We need to seize this opportunity to reshape the support for farming to make it more effective, but to continue to sustain those areas of Scottish farming that need sustaining.
Sir Gerald Howarth (Aldershot) (Con)
My right hon. Friend is aware that my family are extensive farmers in the Scottish borders. Does he not agree that Brexit presents the United Kingdom with a magnificent opportunity to fashion an agriculture policy that is required not by French farmers, but by British farmers, and will he assure the House that hill farmers in Scotland and elsewhere in the United Kingdom will be given proper consideration?
David Mundell
I can absolutely give that undertaking. I hope that, in conjunction with the Scottish Government, we can move forward to shape a new basis of support for Scottish agriculture, especially for those who farm in less-favoured areas. There have been multiple complaints about the operation of the common agricultural policy and its need to take into account farming practices across the continent. We now have the opportunity to have our own support mechanism and we need to work to shape it.
Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)
Mr David Anderson (Blaydon) (Lab)
Almost two thirds of the UK’s agriculture exports are to the EU. After what we heard from the Prime Minister yesterday, there is an increasing possibility that we could revert to World Trade Organisation trade rules on exit from the EU. Does the Secretary of State agree with the NFU Scotland, which says that the potential for 20% tariffs as a result of WTO trade rules will be increasingly damaging for the profitability of Scottish agriculture?
David Mundell
The Prime Minister made it clear yesterday that her objective is to achieve the best possible access to the single market, with the minimum of barriers and tariffs. That will be to the benefit of Scottish agriculture. Scottish farmers see the opportunity that leaving the EU provides them, and I am sure that they will seize it and that we will be able to provide the environment in which they will succeed.
Mr Nigel Evans (Ribble Valley) (Con)
Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)
The Secretary of State for Scotland (David Mundell)
Migrants from outside and within the UK make a significant contribution to Scotland—to its economy, of course, but also to its society and wellbeing. The Government will always welcome the brightest and the best who have come here to work.
Stuart C. McDonald
We know that about 180,000 EU nationals make a hugely valuable contribution to the Scottish economy and that Governments such as Canada’s and Australia’s successfully apply different immigration rules to different parts of their countries. Going beyond warm words, will the Secretary of State listen carefully to proposals for a different arrangement for Scotland, allowing EU citizens freedom to continue to come and live and work there, benefiting us all?
David Mundell
I will always look at evidence-based proposals; that is our commitment, for example, in relation to the Scottish Government’s paper produced just before Christmas. However, it was clear within the settlement agreed under the Smith commission that immigration would remain a reserved power.
Bob Blackman (Harrow East) (Con)
Does my right hon. Friend agree that one of the problems that Scotland will face under the SNP Government is the flight of individuals from high taxes, who will have to be replaced with further immigrants, as well as the fact that businesses will fly down to London rather than be in Scotland?
David Mundell
I find it surprising that the Scottish Government always seem to fail to acknowledge that they have very significant powers to attract people to Scotland. At the moment, about 4% of migrants who come to the United Kingdom go to Scotland. Clearly, more needs to be done to encourage people to come to Scotland, and the Scottish Government need to address that. Making Scotland the highest-taxed part of the UK is not, in my view, the way to do it.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
I associate myself and my party with the expressions of condolence about the late Canon Kenyon Wright—a truly lovely man, for whom it was once my privilege to act as election agent, albeit unsuccessfully.
Will the Secretary of State explain to the Home Secretary the importance of non-EU nationals in making up the crews of many fishing boats, especially in the white fish sector, that operate out of Scottish ports?
David Mundell
I certainly will take that issue forward for the right hon. Gentleman. I am aware of the concerns that have been raised and I would be more than happy to meet directly with him to discuss the matter further.
Iain Stewart (Milton Keynes South) (Con)
The Secretary of State for Scotland (David Mundell)
The UK Government have spearheaded these deals, which will be transformative for the cities of Scotland. The city regions are engines of economic growth, so they will drive forward Scotland’s economy, which means more jobs and a secure future. That is why I am so pleased that the Government have now committed to a city deal for every one of Scotland’s seven city regions.
Iain Stewart
In the autumn statement, the Chancellor gave welcome support to city deals. Will the Secretary of State assure me that he will support the borderlands initiative as part of the programme?
David Mundell
The borderlands initiative is an innovative proposal that seeks to bring together Dumfries and Galloway Council, Scottish Borders Council, Carlisle City Council and other councils in the north of England to recognise the significant economic area that crosses the border. I am delighted to give my support to that proposal.
Alan Brown (Kilmarnock and Loudoun) (SNP)
As well as city deals, the Secretary of State will be aware that the Ayrshire growth deal has been submitted to the Scottish Government. In yesterday’s Treasury questions, the Chief Secretary to the Treasury wrongly said that it is for the Scottish Government to advance that deal. What discussions has the Secretary of State had with Treasury colleagues about supporting the Ayrshire growth deal?
David Mundell
May I first welcome the fact that the hon. Gentleman’s colleague, the hon. Member for North Ayrshire and Arran (Patricia Gibson), has secured an Adjournment debate tomorrow that will focus specifically on the Ayrshire regional growth deal? I have met the councils and I want that deal to receive support from the UK Government in the way that is most appropriate to make it happen.
Mr Speaker
At this Scotland Office questions, I am pleased to inform the House that I have just been notified that Andy Murray has won his second round match in Melbourne.
David T. C. Davies (Monmouth) (Con)
The Secretary of State for Scotland (David Mundell)
Mr Speaker, I noted that in congratulating Andy Murray, you did not display the usual exuberance that you have demonstrated in support of him and the rest of the British team at Davis cup matches.
The UK Government have taken a number of measures to support Scotland’s economy, including by committing to city deals for each of Scotland’s cities, as I just said, and providing an additional £800 million for the Scottish Government’s capital budget through to 2021. Leaving the EU opens up real opportunities for Scotland and we must always remember that the UK market is worth more than four times as much to Scotland as the EU single market.
David T. C. Davies
Adam Smith gave us the theory of modern capitalist economics and William Gladstone put it into practice. Would not those two fine Scotsmen be delighted by the opportunity that Brexit offers to ditch the socialist protectionism of the Scottish Government, and to implement the free trade and free markets that made the country such a powerhouse in the 19th century?
David Mundell
My hon. Friend, as ever, makes a robust case for the benefits of leaving the European Union. Perhaps to his list of posthumous figures from Scottish history I could add David Hume, whose essay “Of the Balance of Trade” predates “The Wealth of Nations” and provides an effective rebuttal to the so-called jealous fear of free trade among merchants at the time.
Kirsten Oswald (East Renfrewshire) (SNP)
A hard Brexit outside the single market threatens to cost Scotland 80,000 jobs over a decade and to cost people an average of £2,000 in wages. What action will the Secretary of State personally take to keep Scotland in the single market, even if the rest of the UK leaves?
David Mundell
It is absolutely clear that Scotland cannot be a member of the single market if it is not a member of the EU, and the United Kingdom will not be a member of the EU. The Scottish Government accept that proposition. What is important is access to the single market and, as the Prime Minister set out yesterday, we aim to achieve the best possible access to that market.
Sir David Amess (Southend West) (Con)
David Mundell
My hon. Friend may be aware that today, in relation to labour market statistics, unemployment is up in Scotland, employment is down, and economic activity is also down. I am in no doubt that the uncertainty caused by the constant reference to an independence referendum is having an impact on the Scottish economy.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
An important part of the Scottish economy is the rural economy, particularly crofting. Yesterday I asked the Secretary of State for Environment, Food and Rural Affairs what exactly, after her careful thinking and planning, would happen to crofting after 2020. The Secretary of State for Scotland set out earlier that he thought that there would be no cuts to funding. Is it the case that we will we see no cuts at all to agricultural support in Scotland post-2020? Will he confirm what he alluded to earlier?
David Mundell
The hon. Gentleman has already heard me answer that question. I have set out that leaving the common agricultural policy is an opportunity. The common agricultural policy has not suited Scotland, particularly those farming in less favoured areas. We now have an opportunity to do something different—we should seize it.
Oral Answers to Questions
David Mundell Excerpts(7 years, 11 months ago)
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Stewart Malcolm McDonald (Glasgow South) (SNP)
The Secretary of State for Scotland (David Mundell)
Lots of good causes across Scotland have put bids in to the Treasury for the next round of allocations from the LIBOR fund, but I am afraid we will need to be patient and wait for the Chancellor’s autumn statement this afternoon to hear which have been successful.
Stewart Malcolm McDonald
The Secretary of State knows that there is no greater cause in my constituency than Holmwood House, a fine piece of Alexander “Greek” Thomson’s architecture. Next year is the bicentenary of his birth, and the Secretary of State knows how keen I am, and the Alexander Thomson Society is, to promote that, both around the UK and internationally. Will he assure me that the full weight of his office is behind making that happen?
David Mundell
The hon. Gentleman is to be commended for his efforts in promoting the bicentenary of Alexander “Greek” Thomson, who is perhaps an underappreciated icon of Scottish architecture. I can assure the hon. Gentleman—especially after my own visit to Holmwood House and meeting the Alexander Thomson Society—that the UK Government will do all we can to support and promote that bicentenary.
Alan Brown (Kilmarnock and Loudoun) (SNP)
I have written to the Chancellor of the Exchequer suggesting that LIBOR money could be used to help fund opencast coal restoration in Scotland. Has the Secretary of State had any similar discussions with the Chancellor, or has he done nothing about the opencast pledge in the 2015 Green Book?
David Mundell
The hon. Gentleman knows that I—and, indeed, the UK Government—have done a great deal to work with East Ayrshire Council to ensure that opencast restoration could proceed in that area following the collapse of various companies involved in opencast mining. We continue that dialogue with both the Scottish Government and East Ayrshire Council to try bring the matter to a satisfactory resolution.
John Stevenson
Thank you very much, Mr Speaker. Scotland has some wonderful tourist attractions, many of which are in the border region and Cumbria. Does the Secretary of State agree that there are real opportunities to promote tourism in the border areas, but that that will involve close co-operation between councils on both sides of the border, and is not just about finance?
David Mundell
My hon. Friend knows that I am very keen to promote cross-border working between Cumbria County Council, his own local authority, Dumfries and Galloway Council and Scottish Borders Council. That is why I am a very big supporter of the so-called borderlands initiative to bring those councils together to try to secure economic development for the area, in which tourism would play a very important part.
Mr Stewart Jackson (Peterborough) (Con)
The Secretary of State for Scotland (David Mundell)
We have made significant progress in transferring powers in the Scotland Act 2016 to the Scottish Parliament. A large number of provisions of the Act are already in force and we are continuing to work with the Scottish Government on the smooth transition of remaining powers.
Mr Jackson
The Scottish National party Government have failed to introduce a single piece of legislation in the past six months; the First Minister prefers grandstanding across Europe to block Brexit. Is it not time she used the powers devolved to her under the Act to start governing, rather than engaging in pointless photo opportunities?
David Mundell
I can update my hon. Friend. The Scottish Government have now brought forward one piece of legislation since the Scottish parliamentary elections in May. He may be interested to know that this Government currently have 19 pieces of proposed legislation before this Parliament. Of course I agree with him, and I think the majority of people in Scotland want the First Minister and the Scottish Government to get on with their day job of running Scotland and seeing to the devolved responsibilities, rather than constantly talking about independence.
Angus Robertson (Moray) (SNP)
The Scottish Government have announced that the new powers over benefits will be used to end the misery being meted out to disabled Scots by the UK Government. First Minister Nicola Sturgeon has pledged to reduce the need for assessments for personal independence payments and disability living allowance, in particular for those with long-term illness. Will the Secretary of State take the opportunity to welcome that and urge his UK Cabinet colleagues to follow suit?
David Mundell
What I will welcome when I see it is some detail behind those fine words. We have heard lots and lots of fine words on welfare, but to date we have absolutely no detail as to what the Scottish Government plan to do.
Angus Robertson
I suppose we should view it as progress that the Secretary of State believes they are fine words, and perhaps he will follow the Scottish Government’s initiative, but it is fair to say that the majority of welfare and economic powers are not being devolved to the Scottish Parliament. Will the Secretary of State confirm that he has no plans to devolve powers to deal with Scottish legal partnerships, and the risks they pose in the fight against global money-laundering and organised crime? I have raised this matter with the Prime Minister and spoken to the right hon. Gentleman. Will he now tell the House what he and the UK Government will actually do about it?
David Mundell
As the right hon. Gentleman knows, the settlement in the Scotland Act 2016 was the outcome of the Smith Commission. The Scottish legal partnerships issue was not a part of that arrangement and will not be devolved, but I take it extremely seriously. I commend him for the way in which he has highlighted it in this House and elsewhere, and I commend The Herald for the way in which it has highlighted the issue. Colleagues in the UK Government are looking at how we can best take the situation forward to end the abuses, which are evident.
Iain Stewart (Milton Keynes South) (Con)
I was concerned to read in The Sunday Times that the Scottish Government are delaying the introduction of the devolved welfare powers. Can my right hon. Friend confirm whether that is the case?
David Mundell
All Members have access to the minutes of the last meeting of the joint welfare group between myself and Scottish Government Ministers. Those minutes confirm that the introduction of the welfare powers in Scotland is indeed being delayed, potentially until 2020.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
Will the Secretary of State consider the transfer of power on visas to the Scottish Government? In the Outer Hebrides, fishing boats are currently tied up because the UK Government will not enable non-EEA fishermen to come in and work on them. People are welcome and are required, but they are blocked from economic activity by the UK Government. This threatens jobs and industries in the Outer Hebrides. Will he act and do something about it, or will he do nothing as usual?
David Mundell
I recognise the hon. Gentleman’s concerns, which others have also expressed. There are specific rules on who can work on fishing boats, but immigration remains a reserved issue and the responsibility of the Home Office.
Stephen Pound (Ealing North) (Lab)
It is always a pleasure to follow Hurricane Angus. Mr Speaker, may I thank you for your generous indulgence in allowing me to appear at the Dispatch Box in the absence of my hon. Friend the Member for Blaydon (Mr Anderson), who is simply unable to be with us today? I have been immersing myself in Scottish legislation—and Irn-Bru—over the past week.
Many of us on the Labour Benches would give our eye teeth to have the powers contained in the Scotland Act 2016. Does the Secretary of State feel that the apparent reluctance of the Scottish Government to take more advantage of them indicates a surfeit of modesty, or, possibly, a lack of ambition?
David Mundell
I welcome the hon. Gentleman to the Dispatch Box at Scottish questions on behalf of the Labour party. The one question I have is, “Who next?” because we have had a selection of individuals. I say to the hon. Gentleman that these are very significant powers over tax and welfare. The autumn statement in this House is a very important event, but on 15 December we will see the Scottish Budget. For the first time, the Scottish Government will be able to raise income tax at their will in the Scottish Budget. That is a very significant moment in terms of taking responsibility and accountability.
Paul Blomfield (Sheffield Central) (Lab)
Mr Ranil Jayawardena (North East Hampshire) (Con)
The Secretary of State for Scotland (David Mundell)
I have regular meetings with Scottish Government Ministers. I last met the Cabinet Secretary for Finance and Constitution at the Finance Quadrilateral on 21 October. Both Governments are committed to providing all necessary support for the Scottish Fiscal Commission and the Office for Budget Responsibility.
Mr Jayawardena
Does my right hon. Friend agree that it is a core principle of stable, accountable, mature government that Governments must not fiddle their own forecasts, but must instead answer for their choices, and the consequences of those choices, to the people whom they govern?
David Mundell
I absolutely agree with my hon. Friend, and the transfer of income tax and welfare powers to the Scottish Parliament does just that. No longer will the SNP and the Scottish Government simply be able to complain. If they genuinely have ideas, they will be able to do something about it, and the people of Scotland will understand the tax implications.
John Nicolson (East Dunbartonshire) (SNP)
Mr Speaker
With reference to the work of the Independent Fiscal Commission, I call the Minister to answer.
David Mundell
I am sure that the Independent Fiscal Commission will have noted that my colleagues in the Conservative group in Holyrood voted against the SNP’s motion because we have absolutely no idea where the SNP stands in relation to the UK’s future relationship with the EU.
Oral Answers to Questions
David Mundell Excerpts(8 years, 1 month ago)
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Dr Philippa Whitford (Central Ayrshire) (SNP)
The Secretary of State for Scotland (David Mundell)
Mr Speaker, may I begin by commending you not only on your attendance at the Davis cup semi-final in Glasgow, but on your obvious enthusiasm and exuberance, which the hon. Member for Glasgow Central (Alison Thewliss) and I were witness to? I am sure you will agree that, although the result was not as we would have wished, the event once again confirmed Glasgow’s place as a great international sporting venue.
The UK leaving the EU should be seen as an opportunity for Scotland. Today’s GDP figures are an encouraging sign of growth. However, Scotland is still lagging behind the UK as a whole and that underlines the need for Scotland’s two Governments to work together to take such opportunities.
Mr Speaker
The Secretary of State and his daughter did a fantastic job as well, as did the constituency Member of Parliament.
David Mundell
It is self-evident that, because the devolution settlements within the United Kingdom are predicated on the basis that the United Kingdom was a member of the European Union, those devolution settlements will be changed by the United Kingdom leaving the EU. Those will be matters that will be subject to debate and discussion.
Patrick Grady
I am not entirely certain that the Secretary of State answered that question. Will he categorically rule out powers being re-reserved to this Parliament as a result of the decision to leave the European Union?
David Mundell
What I can say is that no powers which are currently exercised by the Scottish Parliament will be re-reserved to this Parliament as a result of the United Kingdom leaving the EU.
Dr Philippa Whitford
With a constituency that has an interest in having an aerospace cluster, an airport and large pharmaceutical production, may I ask what the Secretary of State’s view will be on the single market, the open skies and the European Medicines Agency?
David Mundell
The Prime Minister made it very, very clear at the Conservative conference that we want to have access to the single market and to ensure free trade. The sectors that the hon. Lady mentioned are very important; they are part of the group of sectors with which we are engaging very closely to identify their specific interests and concerns so that they are part of the UK’s negotiating position.
Mr Philip Hollobone (Kettering) (Con)
David Mundell
Sectors in Scotland would acknowledge that they have benefited from the devaluation of the pound. The tourism sector, which saw a record attendance at the Edinburgh festival recently, and the agricultural sector would acknowledge it, but I do not see that as being an end in itself. What we need to do is ensure that we get the best possible deal for Scotland and the UK from these negotiations so that Scottish business can flourish.
Michael Gove (Surrey Heath) (Con)
My right hon. Friend is absolutely right in saying that we are leaving a dysfunctional union—the European Union—and that that is an opportunity for the people of Scotland. Is it not also the case that if we were to follow the Scottish National party’s advocacy and leave the union that works—the United Kingdom—we would land the people of Scotland with a huge public sector deficit and the prospect of either tax rises or cuts in services?
David Mundell
My right hon. Friend is absolutely right. There seems to be a very strange contradiction here: Members on the SNP Benches are rightly concerned about Scotland’s continued trade with the EU, but they disregard the fact that Scotland’s trade with the rest of the United Kingdom is four times as much as with the EU, and that a million jobs in Scotland are dependent on our trade within the United Kingdom—that is the union that matters to Scotland.
Iain Stewart (Milton Keynes South) (Con)
Given the importance of that single market to Scotland, does my right hon. Friend agree that the last thing that the Scottish economy needs is the perpetual uncertainty of another independence referendum?
David Mundell
If anyone actually listens to businesses in Scotland and, indeed, to the people of Scotland, it is quite clear that people do not want another divisive independence referendum in Scotland—other than individuals who are obsessed with independence. We need to listen to business, take a second independence referendum off the table and concentrate on getting the best possible deal for Scotland and the UK from these negotiations.
Mr David Anderson (Blaydon) (Lab)
As a result of demands from Nissan, the Chancellor of the Exchequer has suggested that companies that will suffer a loss of profits as result of exiting the EU may be due compensation. Can the Secretary of State assure businesses based in Scotland which will suffer the same loss of profits that they will be entitled to the same deal, and if so has he made an assessment of the costs of such compensation?
David Mundell
May I congratulate the hon. Gentleman on retaining his position as shadow Scottish Secretary? I understand that on the Benches behind him is the Westminster spokesman of the Scottish Labour party, and I am sure that it will emerge during these questions how those two positions interrelate.
The point that I would make in response to the hon. Gentleman’s question is that we will have a common response across the United Kingdom and that whatever support is put in place for businesses in the north of England will apply to businesses in Scotland.
Craig Mackinlay (South Thanet) (Con)
David Mundell
I agree that we need to see Brexit as an opportunity, and I was very interested to see yesterday that the leader of Glasgow City Council also took the view that Brexit offered an opportunity for Glasgow to continue to flourish. Rather than doom-mongering, which is the constant refrain of the SNP, let us take a positive approach and seize the opportunities that are out there for Scotland.
Angus Robertson (Moray) (SNP)
May I remind the Secretary of State for Scotland that he was elected on a manifesto commitment to
“safeguard British interests in the Single Market”,
so will he and his Government work with the Scottish Government, respect the 62% of Scottish voters who voted to remain within the European Union and protect our place in Europe?
David Mundell
Of course I will do that, but I will also respect the half of voters in the right hon. Gentleman’s constituency who voted to leave the EU. He does not make much of it, but a higher percentage of people in his constituency voted to leave the EU than voted for him, so let us respect everybody in this debate. I am committed to working with the Scottish Government. I have met Michael Russell on a number of occasions. The First Minister and the Prime Minister will meet on 24 October, and their engagement will be essential to achieving what we want: the best possible deal for Scotland.
Angus Robertson
Yesterday, we learned from statistics emanating from the right hon. Gentleman’s Government that Brexit will cost £66 billion a year. If these statistics are being prepared for the Cabinet Office, surely they are also being prepared for the Scotland Office, so will the Secretary of State for Scotland be candid with the House and with the people of Scotland and tell us how much Brexit will cost Scotland?
David Mundell
We are not even at the stage of beginning the negotiations. What we are going to see—[Interruption.] The Prime Minister has set out the process for taking those negotiations forward. It is inevitable that, over the next few weeks, months and years, we will see press reports and speculation, leaks and all sorts of other supposition. I want to ensure that we go into those negotiations in conjunction with the Scottish Government to get the best possible deal, and that is my commitment.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Has the Secretary of State seen the report published yesterday by the NAFC Marine Centre, showing that half of all demersal fish and two thirds of all pelagic fish caught in UK waters are caught by boats from other EU countries? Does he understand why Scottish fishermen see these negotiations as a once-in-a-lifetime opportunity to undo the damage caused by the common fisheries policy, and will he put their interests at the heart of the negotiations, unlike his Tory predecessors in the 1970s, who saw our fishing industry as expendable?
David Mundell
I commend the Scottish Fishermen’s Federation and others on their approach to the negotiations; they see them as an opportunity, for the very reasons referred to by the right hon. Gentleman and by yesterday’s report. The SFF was quite right to characterise the report as “A Sea of Opportunities”, and it will have my support in realising them.
Kevin Foster (Torbay) (Con)
Has the Minister included, in his assessment of the impact on the Scottish economy of the UK leaving the EU, the impact of Scotland leaving its biggest single market: the rest of the UK—something that some people are demanding, week in, week out?
David Mundell
As I said earlier, I find it very surprising that people who declare a great enthusiasm for the European single market are willing to dismiss the United Kingdom single market, which is worth four times as much to the Scottish economy and employs a million Scottish people.
Ian Murray (Edinburgh South) (Lab)
Today’s GDP figures for Scotland are welcome, as is the major increase in GDP arising from the services sector, probably driven by the financial services sector in Scotland, and in my city of Edinburgh. What specifically is the Secretary of State doing to protect that financial services sector, and can he give the House, and Scotland, an assurance that he will stand by the Conservative party’s commitment in his 2015 manifesto to saying yes to the single market?
David Mundell
First, we fully recognise the importance of the financial services sector in not just Edinburgh but Scotland more generally. I am determined to ensure that its interests are protected. We are working very closely with it to ensure that it is very much at the forefront as we move forward with establishing the UK’s negotiating position.
Chris Philp (Croydon South) (Con)
James Berry (Kingston and Surbiton) (Con)
The Secretary of State for Scotland (David Mundell)
Since the EU referendum, Scotland Office Ministers have held over 50 meetings with Scottish Government Ministers, Scottish organisations and trade bodies to discuss the implications for Scotland. We intend to hold further such meetings in the coming months, to ensure that Scottish business interests are fully represented in the negotiations on the UK’s exit from the EU and in any future trade arrangements.
Chris Philp
Does my right hon. Friend agree that when we negotiate free trade deals outside the European Union, we can remove some of the protectionist tariff barriers that the EU has erected, thereby reducing consumer prices for consumers in Scotland—and, indeed, across the United Kingdom?
David Mundell
I agree with my hon. Friend, and I believe that this Government and this country can be advocates around the world for free trade. Trade liberalisation between advanced economies can have a positive impact on the consumer, and that is what we want to see in Scotland and across the UK.
Mr Harper
Will the Secretary of State reassure the House that as he is conducting discussions around the world and engaging with British business, he gets the maximum opportunities for Scottish business, uses his opportunities to demonstrate that Scotland is better as part of the United Kingdom, and knocks on the head all this talk of independence that we incessantly hear from the Scottish National party?
David Mundell
I agree with my right hon. Friend. It is vital that we promote Scotland’s interests in that way, and do so working in conjunction with the Scottish Government. Both Governments have a role to play—in, for example, as the Scotch Whisky Association identified, developing new markets and promoting that product, which is vital to Scotland’s economy.
James Berry
I was pleased to read last month that exports of Scotch whisky were up for the first time in three years, with a surge of exports to India. Does my right hon. Friend agree that everyone in the UK should work together to support the export of great British products, including great Scottish products such as whisky?
David Mundell
I do agree, as I have set out. Bodies such as the Scotch Whisky Association acknowledge and accept that, and want the two Governments to work together in that regard, and that is what I am committed to doing.
Wayne David (Caerphilly) (Lab)
If the Government leave the European Union without a specific trade arrangement with the EU, is the Secretary of State happy to fall back on World Trade Organisation methods?
David Mundell
I am sure that that is the type of speculation that will constantly be sought from Ministers in the weeks and months ahead. The Prime Minister has set out the process for negotiating our exit from the EU, and at the conclusion of that process I am confident that we will be able to achieve the best possible deal for Scotland and the rest of the UK.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
The Secretary of State has, on many occasions, extolled the trade benefits of the single market for Scotland. Regardless of whether or not the UK is a member state of the EU, does he still believe that it is in Scotland’s interest to have membership of the single market, rather than trying to negotiate third-party access?
David Mundell
What I have also said on many occasions, as the hon. Lady will know, is that the UK will have a bespoke arrangement with the EU when we leave. It is not appropriate or sensible to see the negotiating process in the context of existing arrangements with other countries or, indeed, the existing structure of the EU. We should seek to get the best possible deal for our businesses.
Mr David Anderson (Blaydon) (Lab)
Crucial to promoting trade is the need to support apprenticeships. However, training bodes, organisations, businesses and employers in Scotland have told me that they are struggling to get clear guidance on how the apprenticeship levy will work. Will the Secretary of State ensure, unlike his colleague the Business Secretary, that he works urgently with the Scottish Government to give those people the information that they need?
David Mundell
I am absolutely committed to doing that, and I can confirm that the apprenticeship levy will be discussed when the joint ministerial council meets on 24 October.
Mr Anderson
One area in which apprenticeships could work is the oil industry and the decommissioning of oil rigs. We have already seen the loss of 80,000 jobs in that industry, and that will be compounded if we continue, as has happened recently, to lose decommissioning contracts to other countries. Do the Government have any strategy at all to ensure that those crucial jobs remain in Scottish hands?
David Mundell
The hon. Gentleman will know that the Government are committed to the industry, and a £2.3 billion investment and associated tax changes were exactly the support that it asked for. We have also established, along with the Scottish Government, the £250 million Aberdeen city deal, which will have at its heart a new technology centre to ensure that skills and jobs remain in the north-east.
Henry Smith (Crawley) (Con)
The Secretary of State for Scotland (David Mundell)
A significant number of new welfare powers came into force this September, and give the Scottish Parliament new choices over welfare in Scotland. The joint ministerial working group on welfare, which includes Scottish Ministers, met yesterday to continue its important and constructive work overseeing the transfer of remaining powers.
Henry Smith
With that significant transfer of powers from the UK Government to Edinburgh, does my right hon. Friend agree that the Scottish Government should get on with exercising those powers for the sake of the welfare of the people of Scotland, rather than wasting time on expensive and unnecessary talk of a second independence referendum?
David Mundell
I absolutely agree. These are significant powers, which the Scottish Government and the Scottish National party in this House asked for. People around Scotland will want to see how they are being deployed and what process is being used. The message from the people of Scotland generally to the Scottish Government is “Get on with the day job.”
Neil Gray (Airdrie and Shotts) (SNP)
David Mundell
We have made it absolutely clear that we will respect that desire for the programmes to proceed on a voluntary basis. What I think the people of Scotland will want to know is what the Scottish Government intend to do in relation to people who do not volunteer to be part of the programmes.
Mark Menzies (Fylde) (Con)
Oral Answers to Questions
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Ian Murray (Edinburgh South) (Lab)
6. What assessment he has made of the effect on the economy in Scotland of the outcome of the EU referendum.
The Secretary of State for Scotland (David Mundell)
The Scottish economy faces a number of challenges as a result of the vote to leave the EU. Yesterday I began a process of direct engagement with Scottish business leaders to ensure that their voice is heard in the forthcoming negotiations.
Nic Dakin
I thank the Secretary of State for that answer. Now that the Brexit decision has been made, does he think that it will be easier for the Scottish and UK Governments to support the Scottish steel industry in tackling things like energy costs, procurement and business rates?
David Mundell
Regardless of the vote, the two Governments must continue to work together to support the industry. The Scottish Government have taken steps in relation to the two plants in Scotland, very much supported by me and the Scotland Office and the UK Government. We will continue that support, and the Scottish Government will play a part in the steel council that has been established.
Ian Murray
Standard Life, one of the largest private employers in Scotland, ceased trading in its UK property fund this week, and the Governor of the Bank of England has said that the consequences of Brexit are beginning to crystallise. Given that financial services are 7% of Scotland’s GDP and employ tens of thousands of my constituents, what reassurances was the Secretary of State able to give businesses yesterday that not one job will be lost because of the Conservative gamble with this country?
David Mundell
May I begin by commending the hon. Gentleman for his service as shadow Scottish Secretary? No one knows better than me how difficult it is to be your party’s sole representative from Scotland in this House and be shadow Scottish Secretary. He performed the role with great distinction, and I am particularly grateful for his work to ensure the passage of the Scotland Act 2016 in this place. He will be pleased to know that when I met business leaders yesterday Standard Life was represented. One point that its representatives made, which is important for discussions on the future of the Scottish economy, is how important the market outwith Europe is, as well as the market within Europe. Standard Life did not wish us to lose focus on the many business opportunities it pursues, in north America in particular.
Bob Blackman (Harrow East) (Con)
When will my right hon. Friend lay out the exciting opportunities there are for Scotland as a result of leaving the European Union for the wider world?
David Mundell
Obviously when I met Scottish businesses I wanted them to address the opportunities for business. I have just referred to a leading Scottish company with significant interests outwith the EU, but businesses in Scotland are naturally concerned to understand the arrangements that will be put in place for our future relationship with the EU.
Angus Robertson (Moray) (SNP)
In Scotland more than 62% of voters voted to remain in the European Union. Since then the Scottish Parliament has voted overwhelmingly to support First Minister Nicola Sturgeon in her efforts to protect Scotland’s place in Europe. That was voted for by the Scottish National party, the Labour party, the Liberal Democrats and the Scottish Green party. The Tories abstained. Will the Secretary of State finally join the cross-party consensus to protect our economy and our place in Europe, or will he abstain like his colleagues?
David Mundell
The right hon. Gentleman omits one fact. My colleagues were unable to support his party’s motion because the SNP would not take the toxic and divisive issue of a second independence referendum off the table. Anyone who wants to unify opinion in Scotland does not start talking about a second Scottish independence referendum. I hope the First Minister was listening yesterday to Scottish businesses when they said decisively in relation to discussions about the EU that they did not want to hear about Scottish independence.
Angus Robertson
Tens of thousands of European Union citizens play a massive role in our economy and society in Scotland. The Scottish National party wants to do more than just pay tribute to them; we want them to have guarantees that they can stay in Scotland. Will the Secretary of State act in the Scottish and European interest, and guarantee the rights of fellow EU citizens to remain in Scotland, and end the intolerable worry and concern with which they are being confronted?
David Mundell
I share the right hon. Gentleman’s view of the important role that EU citizens play in Scotland, and we want them to stay in Scotland and have their position guaranteed. We also want British citizens in the rest of Europe to have their right to stay there guaranteed, and I hope that it will be possible to issue both guarantees.
Mr David Anderson (Blaydon) (Lab)
May I start by echoing the compliments paid to my predecessor, my hon. Friend the Member for Edinburgh South (Ian Murray)? He will be a hard act to follow.
Sitting opposite the Secretary of State reminds me of the many good times that I have spent in his constituency in the great town of Moffat. Friends of mine from Moffat, John and Heather, live on the Old Carlisle Road, where they have a small family farm and a business. They want to know what guarantees have been given about the future of payments that they receive as part of the common agricultural policy, and what benefit they can expect from the £350 million a week that senior members of the Government promised we would get back from the European Union to fund the NHS. How much of that can we expect to go to Scotland and, crucially, when can we expect to see it?
David Mundell
I welcome the hon. Gentleman to his position, and he is welcome in Moffat any time he wants. I have performed his role in the past, but when I did so there were 41 Scottish MPs opposite me, and 15 months later it has come to this. CAP payments will be subject to negotiations, and as someone who argued for a remain vote, I made it clear to farmers in Scotland that there would be a degree of uncertainty if there was a vote to leave. As a result of our withdrawal from the EU, responsibility for agriculture will now rest directly with the Scotland Parliament.
Mr Anderson
I do not think that John and Heather will be reassured by the Secretary of State’s response, and I note that he did not answer my question on the NHS.
The Chair of the Foreign Affairs Committee was right yesterday to accuse our hapless Prime Minister of being guilty of a dereliction of duty for failing to set up withdrawal planning units until after the referendum. Will someone please tell the Prime Minister that the words to the song are not: “When the going gets tough, the tough do a runner”? With that in mind, does the Secretary of State believe that the Prime Minister’s policy of placating fruitcakes and loonies has been a price worth paying for the economic crisis that is now upon us, and the risk of the break-up of the United Kingdom?
David Mundell
I am a democrat. I respect the democratic decision of the people of the United Kingdom, and that decision will be implemented.
Alan Brown (Kilmarnock and Loudoun) (SNP)
9. What discussions he has had with the Scottish Government on the effect of the outcome of the EU referendum on Scotland.
The Secretary of State for Scotland (David Mundell)
Since the outcome of the EU referendum, both the Prime Minister and I have had discussions with Scottish Government Ministers, and we will continue to do so over the coming weeks and months. As the Prime Minister has made clear, we will fully involve the Scottish Government and other devolved Administrations as we prepare for negotiations with the European Union.
Andrew Stephenson
Does my right hon. Friend agree that we should respect the outcome of the democratic process, even if some do not agree with the result?
David Mundell
I am clear that the majority of people across the United Kingdom voted for the UK to leave the European Union, and that decision must be implemented. In doing so, we must secure the best possible deal for Scotland and the rest of the United Kingdom.
Martyn Day
Will the Secretary of State confirm that it is the UK Government’s intention to invite the Scottish Government to participate directly in the EU negotiations?
David Mundell
I confirm that the Scottish Government will be at the heart of the negotiation process. I can also confirm today that I and my Cabinet colleague, my right hon. Friend the Member for West Dorset (Mr Letwin), who is responsible for the European unit within the Government, will meet the First Minister next week to discuss how that might be achieved.
Ian Blackford
The Secretary of State says he is a democrat. Will he support the long-established position in Scotland that sovereignty rests with the people? Now that the Parliament has said that we wish to negotiate Scotland’s remaining in the single market, will he stand up for those rights? Is he Scotland’s man in the Cabinet, or is he, as we suspect, the Cabinet’s man in Scotland?
David Mundell
I expect slightly more original lines from the hon. Gentleman. My position is clear: I very much welcome any initiative pursued by the First Minister or by the Scottish Government that can be to the benefit of Scotland without being to the detriment of the rest of the United Kingdom. I look forward to hearing from the First Minister when I meet her next week how the various initiatives she is pursuing are going. We want to work together. Businesses in Scotland yesterday made it very clear that they want a Team UK approach: the Scottish Government and the UK Government working in tandem in the best interests of Scotland.
Chris Green
Does my right hon. Friend agree that, just as the Scottish referendum was binding for a generation, so too is the United Kingdom’s decision on the European Union? Is it not incumbent on all politicians, including those in the devolved Administrations, now to come together to make this work?
David Mundell
I very much hope that that will be the case. I met Fiona Hyslop, the Minister responsible in the Scottish Government, within hours of the EU declaration being made. My right hon. Friend the Minister for Europe is in Scotland today. I am meeting Fiona Hyslop tomorrow, and, as I have already said, I am meeting the First Minister next week. We want to work as closely as we can with the devolved Administrations to get the best outcome for Scotland.
Alan Brown
On the previous question, I would point out that Scotland voted by a large majority to remain in the EU. As a self-confessed democrat, will the Secretary of State therefore confirm that he will support the Scottish Government’s efforts to find a mechanism to keep Scotland in the European Union?
David Mundell
The hon. Gentleman may not have read the ballot paper, but the question was not about Scottish independence. It was about whether voters in Scotland wanted the United Kingdom to remain in the EU. I was a part of the 1.6 million people in Scotland who voted to remain in the EU, but I did not do so on the basis that Scotland would then be dragged out of the United Kingdom if I did not get the decision I wanted.
Henry Smith (Crawley) (Con)
11. With over 1 million people in Scotland voting to leave the European Union last month, what is my right hon. Friend’s assessment of the rush for a second independence referendum on the Union?
David Mundell
It is important that we respect the views of people we do not agree with. It has become evident that the Scottish National party cannot respect the views of the 2 million people who voted to remain in the United Kingdom in the 2014 referendum and it does not respect the people who voted to leave the EU. I do not agree with the people who voted to leave, but their views need to be respected.
Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)
In the light of statements made by the Secretary of State for Justice and the new shadow Secretary of State for Scotland over the weekend, will the Secretary of State for Scotland give us an unequivocal confirmation that the Barnett formula will not be changed or affected as a result of the EU referendum and that Scotland’s budget will be protected?
David Mundell
The Government were elected on a manifesto that made it clear there would be no changes to the Barnett formula. The hon. Lady has been in several political parties over her political career. Perhaps she noticed earlier this week that there is a vacancy at the head of the UK Independence party; that might be her next destination.
Mrs Sheryll Murray (South East Cornwall) (Con)
12. Will my right hon. Friend tell us what discussions he has had on the possibility of Scotland having to accept joining the euro if, as it claims, it wants to stay in the European Union?
David Mundell
Clearly the parameters have changed, and if any proposition were put forward for any prospective further independence referendum, it would be carried out on an entirely different basis from what we had with the 2014 proposition, and membership of the euro might well be part of that.
Wayne David (Caerphilly) (Lab)
A close relationship between Scotland and the European Union is obviously in the best interests of Scotland. Has the Secretary of State any specific suggestions about how that relationship might be made real in the future?
David Mundell
I think I have set out clearly how I see the way forward on these matters, and it lies with the Scottish Government and the UK Government working as closely as they possibly can together. That is the way we will get the best possible arrangements for Scotland. The message from business leaders I met yesterday was that we need a Team UK approach to get that deal for Scotland.
Helen Hayes (Dulwich and West Norwood) (Lab)
7. What discussions he has had with the Secretary of State for Work and Pensions and Ministers of the Scottish Government on the devolution and implementation of social security powers.
The Secretary of State for Scotland (David Mundell)
I am committed to working with the Scottish Government to ensure a safe and secure transfer of welfare powers. I met Scottish Ministers in the joint ministerial working group on welfare on 16 June. We had a constructive meeting and issued a joint communiqué about our discussions.
Helen Hayes
What assurances can the Secretary of State give that Scotland will be no worse off with the devolution of new social security powers?
David Mundell
I certainly hope that individuals in Scotland will be no worse off. Inevitably, the devolution of these powers means that specific decisions about their use will be made by the Scottish Parliament and Scottish Government. The amount of certain payments and their shape and nature will be matters for them.
Mrs Emma Lewell-Buck (South Shields) (Lab)
14. Will the Secretary of State update us on discussions on the devolution of the social fund funeral payments?
David Mundell
I am hoping to move forward with a commencement order for those powers before this Parliament goes into recess. That effectively means the transfer of the arrangements to the Scottish Government.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
I have asked the Scottish Secretary twice via written questions when he last visited a food bank. The answer has been the same on both occasions—he has not visited a food bank in his capacity as Secretary of State for Scotland. Will he therefore today agree to visit a food bank with me in my constituency so that he can see at first hand the devastating effect of Tory sanctions and welfare policies?
David Mundell
The hon. Lady is very well aware that I have visited a food bank and understand the issues that surround them.
Mr David Anderson (Blaydon) (Lab)
The agreement between the United Kingdom Government and the Scottish Government set out exactly how the new Scottish welfare budget will be agreed. Will the Secretary of State explain what would happen in the event of the UK Government abolishing a specific benefit that has been devolved to Scotland? In that circumstance, will the Scottish Government retain the budget or will they lose it?
David Mundell
The financial arrangements for the transfer of powers were dealt with in the fiscal framework, and that circumstance was contemplated in it. There are two sets of benefits that are subject to transfer: one is a set of benefits for which the Scottish Government will have full responsibility and can therefore shape and make a new benefit or change benefits; and the other set involves powers to top-up existing UK benefits. Clearly, if an existing UK benefit did not exist, the power to top it up would not exist either, but the power to create an equivalent might well do.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
8. What progress the Government are making on implementing the recommendations of the Womenomics report on the role and contribution of women in the Scottish economy, published in March 2015; and if he will make a statement.
Oral Answers to Questions
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Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
8. What assessment he has made of the potential effect on Scotland of the UK leaving the EU.
The Secretary of State for Scotland (David Mundell)
I congratulate Nicola Sturgeon and the Scottish National party on achieving the largest number of seats in last week’s Scottish Parliament elections. I look forward to working with her and the new Scottish Government for the benefit of the people of Scotland.
The Government’s position is that Scotland and the United Kingdom will be stronger, safer and better off remaining in a reformed EU. Membership of the EU reduces costs for Scottish businesses; supports jobs in Scotland; and provides an export market currently worth £11.6 billion.
Patricia Gibson
A re-run of “Project Fear” from the Prime Minister will not win the European referendum. Stories of war, genocide and economic crashes are not in keeping with making a positive case for the EU. When will we will hear the positive case for remaining in the EU?
David Mundell
I would like to add my congratulations to the hon. Lady’s husband on his re-election to the Scottish Parliament, where I am sure his witty repartee will once again be welcomed.
The hon. Lady and her colleagues repeatedly call for a positive campaign for Scotland to remain in the EU, but all we hear about from them is process and calls for a second referendum on independence. I call on them to disregard that approach and actually start setting out the positive case themselves.
Gavin Newlands
The UK Government have shown disregard for Scotland’s higher education sector, severely damaging the talent pool by scrapping the post-study work visa against the unanimous wishes of business, civic society and, uniquely, all Scottish political parties. Does the Secretary of State accept the crippling effect that the Government’s EU referendum is having on the ability to attract young talent to Scotland?
David Mundell
The biggest issue facing Scotland currently is the uncertainty over the Scottish Government’s inability to rule out a second independence referendum, which they could quite easily do. I look forward to the First Minister, if she is re-elected to that post, setting out clearly that we will not have a second independence referendum. The Scottish Affairs Select Committee has produced a good report on the work study visa, and the Government are looking at it.
Ms Ahmed-Sheikh
Does the Secretary of State consider that with 60% of UK landings in Scotland, a Scottish fisheries Minister should lead during the period of the UK presidency of the EU? Would not such an initiative be widely welcomed by Scottish fishermen, or is the Secretary of State still stuck in this Westminster rut of some nations being “more equal” than others?
David Mundell
My position is that Scotland voted decisively to remain part of the United Kingdom, and that the United Kingdom represents Scotland’s interest on fishing in the EU. The hon. Lady may be aware that the Scottish Government and the UK Government have been in discussions on intergovernmental relations, and particularly on how these issues of representation should work in the EU. My understanding is that the previous SNP-led Scottish Government were in agreement with those proposals.
Marion Fellows
This week’s EY report was critical of the UK Government’s approach to the energy sector, stating that it is not only stalling project development and investment but jeopardising UK energy security. Does the Secretary of State agree that the best way for Scotland’s energy policy to develop is within the EU?
David Mundell
I absolutely agree that it is in the best interests of Scotland to remain in the EU, and it is also in the best interests of Scotland to remain in the UK, because it has been clearly set out that what is best for the future of Scotland’s energy sector is a UK-wide common market.
Mike Weir
While we obviously want the UK to remain part of the EU, I am seriously beginning to wonder whether the Secretary of State’s mission is to antagonise as many Scots as possible before the referendum. Will he at least agree that should Scotland be dragged out of the EU against its will, that would be a major constitutional change?
David Mundell
The hon. Gentleman may be interested to know that tomorrow night I shall share a platform with the former deputy leader of the SNP, Jim Sillars. I shall make the positive case for Scotland’s remaining in the EU, and I understand that he will make the case for Scotland’s leaving the EU.
Dr Cameron
Professor Simon Wessely, president of the Royal College of Psychiatrists, has warned that the UK’s withdrawal from the European convention on human rights would remove safeguards that have been
“bolstering the rights of psychiatric service users for decades”.
Will the Secretary of State join me in safeguarding mental health services, and oppose any attempts to withdraw Scotland from the convention?
David Mundell
As the hon. Lady knows, the Government is to launch a consultation on the introduction of a Bill of Rights after the EU referendum. However, I agree with her that the UK’s remaining in the EU benefits everyone in Scotland.
Mr Peter Bone (Wellingborough) (Con)
Does the Secretary of State agree that the Government are split on the issue of whether we should remain in the European Union. Just like the SNP, with Jim Sillars speaking for the leave campaign? Does he not think that it is somewhat embarrassing for the Government to be associated with that lot?
David Mundell
What the Government do, and what the Scottish National party does not always do, is respect the fact that people have different opinions. My view is very firmly that Scotland should remain in the EU, but I recognise and respect the fact that there are people in Scotland, including SNP voters and supporters, who want Scotland to leave the EU. That is why we are having a referendum, and that is why we are having a debate, and the people will have their say.
Mr Christopher Chope (Christchurch) (Con)
Why has my right hon. Friend not emphasised that when we leave the European Union, the Scottish Parliament, the Scottish Government and the Scottish people will have sole control over Scottish fishing waters?
David Mundell
I do not believe that the best interests of Scottish fishermen, Scottish farmers or the general population of Scotland would be served by our leaving the EU. My hon. Friend—who now serves on the Scottish Affairs Committee—will know that, for example, large amounts of fish, particularly shellfish caught off the west coast of Scotland, go to a European market.
Mr David Nuttall (Bury North) (Con)
Does my right hon. Friend agree that Scotland, like the rest of the United Kingdom, would be safer if it left the European Union because, as Sir Richard Dearlove, the former head of MI6, has said,
“Britain is Europe’s leader in intelligence and security matters and gives much more than it gets in return”?
Mr John Baron (Basildon and Billericay) (Con)
What assessment has the Secretary of State undertaken of why the SNP is so keen on the EU when it is clear that the EU is in the global economic slow lane, when the EU’s unemployment rates are so much higher—including youth unemployment of more than 50% in certain countries—and when it is an indisputable fact that the common fisheries policy has, over the years, decimated the Scottish fishing fleet?
David Mundell
I note the inherent contradiction in SNP Members’ position, because every argument its members use for Scotland remaining in the EU is an argument that was dismissed when it related to Scotland remaining in the United Kingdom. However, on this occasion I will forgive them because, like them, I believe that it is in Scotland’s best interests to remain in the EU.
Mike Freer (Finchley and Golders Green) (Con)
Mrs Freer, a pensioner in my right hon. Friend’s constituency, would like to say how pleased she now is to have two Mundells to choose from. She is also seeking reassurance that, as a pensioner, she would be better off in a reformed EU.
David Mundell
I am absolutely clear that the reforms that the Prime Minister brought forward will improve the EU for pensioners and citizens right across Scotland. I also believe that this is not the end of the reform process. The EU is not perfect, even after these reforms, but it is up to the UK to lead in reforming the EU, not to withdraw from it.
Kevin Foster (Torbay) (Con)
The Secretary of State will be aware that the EU is based on its current member states. What assessment has he made of last week’s Scottish Parliament election results in regard to ensuring the integrity of one of its largest members and removing the prospect of Scotland having to apply to join as a new member?
David Mundell
There was one clear message from last week’s Scottish Parliament elections: the people of Scotland do not want another referendum. I hope that the First Minister has heard that message loud and clear. The EU referendum is about the UK’s membership of the EU. It is not a rerun of the Scottish independence referendum.
Ian Murray (Edinburgh South) (Lab)
May I also take this opportunity to congratulate all the MSPs who were elected last week, and to congratulate the SNP on its historic third term in government in Scotland? However, on a bad night for my party, my own seat of Edinburgh Southern saw a net gain from the SNP. I also want to congratulate the Secretary of State on his son Oliver being elected to the Scottish Parliament. His family now has two elected members, and they both have fetching beards—the word “fetching” being used loosely in this context.
The evidence is clear that the UK and Scotland are stronger in the EU. In the Scottish context, for example, as the Secretary of State has already said, the benefits include a market for 42% of our exports, a quarter of a million jobs, 10% of our higher education spending and a whole host of social protections. Can he assure the Scottish people that all Conservative MSPs will campaign to stay in the European Union?
David Mundell
I thank the hon. Gentleman for his congratulations to my son. I have to say that the high point of the election for me was when someone on the doorstep said, “You look a lot like your dad.” That aside, I can assure the hon. Gentleman that there will be a robust and proper debate in Scotland. Ahead of this referendum process, Ruth Davidson made her position very clear on supporting Scotland remaining in the EU. However, we cannot hide the fact that there are people in Scotland who would like to leave the EU, and I think their views should be reflected. The Conservative party in Scotland is not frightened to hide the fact that there are different views. Indeed, there are different views across Scotland.
Ian Murray
The Secretary of State has not told us what Oliver’s response was when the constituent told him he looked awfully like his dad. Perhaps he could tell us when he comes back to the Dispatch Box. Everyone knows that this EU referendum is more about settling old scores in the Conservative party than about doing what is best for the UK, and indeed Scotland. We also know that the Scottish National party is desperate for any excuse to trigger another independence referendum. However, the truth is that the UK is better off in the EU, and that Scotland is better off in the UK. So is it not the case that this Secretary of State and his Government have taken a huge gamble with the UK’s future, and with Scotland’s future too?
David Mundell
Absolutely not. What we have done is to allow the people of Scotland and the people across the United Kingdom to have their say on this important issue, and they will do so. We need to have a debate in Scotland, and I am campaigning vigorously—as the hon. Gentleman appears to be—for Scotland to remain in the EU. The SNP parliamentary party here at Westminster is campaigning for that as well. People like Jim Sillars are campaigning for Scotland to leave the EU. Let us have a vigorous debate in Scotland over the next few weeks. I look forward to sharing a platform with the hon. Gentleman and with SNP colleagues.
Alberto Costa (South Leicestershire) (Con)
May I also congratulate Oliver Mundell on his election to the Scottish Parliament?
Will the Secretary of State confirm that he will continue to champion the Scotland Act 2016, which he steered through the House and which has given so many powers to the Scottish Parliament to ensure that the Scottish people continue to benefit from being not only in the UK, but in the EU?
David Mundell
I thank my hon. Friend. I must get my son elected more often, because there have been more plaudits today than I recall at previous Scottish questions.
We will of course move forward with the implementation of the Scotland Act, but we will also work hard to achieve a positive outcome for Scotland in the EU referendum on 23 June.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Does the Secretary of State agree that the already high support in Scotland for remaining in the European Union could be improved further still if Scottish farmers could be confident that they will get their CAP payments when they are supposed to?
David Mundell
The right hon. Gentleman raises an important point. The reason CAP payments have not been made to Scottish farmers is entirely due to the previous SNP Scottish Government. Any attempt to suggest that it is down to the EU is incorrect. Farmers and others know the benefits to Scotland of being in the EU and will vote to remain.
Oliver Colvile (Plymouth, Sutton and Devonport) (Con)
Were the UK to withdraw from the EU, what impact would that have on Scotland and the EU’s relationship with Malawi, to which I know my right hon. Friend has recently been?
David Mundell
My hon. Friend knows that I recently visited Malawi, and, without being indiscrete, I can firmly say that the Malawian Government are in favour of Scotland and the UK remaining in the EU.
Pete Wishart (Perth and North Perthshire) (SNP)
There is little evidence that Scotland wanted this Tory EU referendum, and it seems like only a minority of the Scottish people want to leave the EU. When the Secretary of State is putting Scotland’s membership of the EU at risk, what is his message to the Scottish people if we are taken out of the EU against our national collective will?
David Mundell
That is another positive campaigning point from the SNP. It is not for me to give advice to the SNP, but if my vote had fallen by 500,000 between the general election and the election for the Scottish regional list I would be focusing on getting my supporters out to vote on 23 June to ensure that Scotland votes to remain.
Angus Robertson (Moray) (SNP)
In the run-up to the European Union referendum, we are delighted on these Benches that the Scottish electorate has returned a pro-European SNP Government with the highest vote of any current party in any national election anywhere in western Europe. Most people in Scotland are pleased that, when given the opportunity, the Scottish electorate did not return a single MSP from the Europhobic UK irrelevance party and that there is a majority in the Scottish Parliament for Scottish independence as a member of the European Union. On the powerful case for remaining in the EU, will the UK Government please concentrate on making a positive, inspiring case to stay, rather than on rewarming endless scare stories?
David Mundell
I have made it clear to the right hon. Gentleman that that is my exact intention. Perhaps he could undertake today to stop obsessing about process and a second Scottish independence referendum and to concentrate entirely on the positive reasons for Scotland to remain in the EU.
Angus Robertson
Scotch whisky is the largest net goods exporter to the European Union, both from Scotland and from the United Kingdom as a whole. Does the Secretary of State agree that the European single market is profoundly important and positive for that £1 billion trade, meaning that there is no need for customs forms, duplication of labelling, and safety requirements? Will he stress the positive advantages to the whisky industry, and all exporters from Scotland, to jobs and to profitability of remaining within the European single market and the European Union?
David Mundell
I am absolutely clear that what the right hon. Gentleman states is the case, and I am sure he will have welcomed the visit to Scotland made yesterday by my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs to stress the importance to the whisky industry of remaining in the single market. The particular points he makes about duplication in relation to labelling, certification and licensing are ones the Scotch Whisky Association has made, and I am sure the public will take them into account when they vote in the referendum.
Glyn Davies (Montgomeryshire) (Con)
4. What steps the Government are taking to support the North sea oil and gas sector.
Oral Answers to Questions
David Mundell Excerpts(8 years, 7 months ago)
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Tom Pursglove (Corby) (Con)
1. If he will estimate the contribution of golf to the economy in Scotland in the last 12 months.
The Secretary of State for Scotland (David Mundell)
May I begin by expressing the solidarity of the people of Scotland with the people of Belgium at this difficult time? Our thoughts, prayers and condolences go to the families and friends of all those who were killed and, indeed, everyone caught up in yesterday’s horrific events.
Golf makes a huge contribution to Scotland’s economy. Independent analysis in 2013 showed that the game contributes more than £1 billion in revenues and supports some 20,000 jobs. There are almost 600 golf courses across the country, generating annual revenues of £582 million.
Tom Pursglove
I thank the Secretary of State for his answer, and I very much share his sentiments of solidarity towards the people of Belgium at this very difficult time.
Given the success that my right hon. Friend talks about in relation to golf in Scotland, what steps is he taking to try to secure further investment in this very important industry for Scotland?
David Mundell
One new opportunity to support golf and young people in golf arose in last week’s Budget: the sugar tax element of the Budget will see investment in sport in schools in the wider UK. I hope the Scottish Government will follow through on that and use those funds to develop sport in schools, including golf—a very popular sport, as I have said. This year, we also have the opportunity to present Scotland’s golfing merits to the wider world during the British Open at Royal Troon. It will be a showcase for the world of Scotland’s golfing opportunities.
Dr Philippa Whitford (Central Ayrshire) (SNP)
I thank the right hon. Gentleman for mentioning my local golf course; I am the MP for Royal Troon, and we look forward to welcoming people in July.
Will the Secretary of State discuss with Front-Bench colleagues a regional strategy for smaller airports—at Prestwick, people fly in over Royal Troon—and, while the Chancellor is in a listening mood, will they consider a VAT reduction for rural tourism, which would help many constituencies across the UK?
Mr Speaker
Indeed they do, as the hon. Lady pertinently observes from a sedentary position.
David Mundell
I would be very happy to meet the hon. Lady to discuss those issues further. I am also very interested in pursuing the proposed Ayrshire regional growth deal, which, in promoting tourism in that part of Scotland, will have golf at its heart.
Alberto Costa (South Leicestershire) (Con)
May I add my contribution on this topic by saying that it was with pleasure, last week, that I saw the Secretary of State sharing a platform with the First Minister, who I am sure raised the topic we are discussing? Will my right hon. Friend confirm that that is an example of the two Governments working together in the interests of the people of Scotland?
David Mundell
Mr Speaker, you will be pleased to hear that the First Minister and I met and shared a platform in St Andrews, which is of course the world home of golf. On sport, as on any matter, Scotland of course does best when Scotland’s two Governments work together.
Angus Robertson (Moray) (SNP)
This is the first opportunity in Parliament to put on the record our total revulsion at and condemnation of the terrorist atrocities in Brussels, as well as our solidarity with everybody affected. We join the Secretary of State for Scotland in that.
The promotion of the Ryder cup in Scotland was a huge achievement for the Scottish Government and the then First Minister, my right hon. Friend the Member for Gordon (Alex Salmond). Today is the last sitting day of the Scottish Parliament. Given that he is standing down from Holyrood, may I pay tribute to my right hon. Friend for his remarkable tenure as an MSP and as First Minister, and pay tribute to all other MSPs from all parties who are retiring? Does the Secretary of State agree that there is much that can be built on following the success of the Ryder cup? How does he plan to contribute to that?
Mr Speaker
I am sure that that was a courteous tribute, but I hope the right hon. Gentleman will not object if I say that the first part of his question was way off the fairway.
David Mundell
Securing the Ryder cup to be held in Scotland was a significant event. I agree that the former First Minister of Scotland has made a remarkable contribution to Scottish politics, although the right hon. Member for Moray (Angus Robertson) and I will probably differ on the detail of that. What the former First Minister and many MSPs who are standing down—I also pay tribute to them—have done, and what we all need to do, is promote Scotland together, because that is when we get the best results for Scotland.
Angus Robertson
I will try to remain on the fairway, Mr Speaker.
Tourism is one of Scotland’s most important industries, and golf and whisky are key drivers for people visiting the country. Does the Secretary of State welcome local initiatives better to promote iconic Scottish regions and locations, such as Speyside? What encouragement would he give to public and private sector partners in making the most of Scotland’s world-class potential as a tourism draw?
David Mundell
I am aware of the initiatives to promote Speyside, having recently visited the right hon. Gentleman’s picturesque constituency, and I wish them well. Such opportunities reach their full potential only with significant public and private sector partners playing a full part, and I look forward to hearing about progress from Speyside and other regions of Scotland that are making the most of that potential.
Stuart Andrew (Pudsey) (Con)
2. What discussions he has had with representatives of the North Sea oil and gas industry on UK Government support for that sector.
Karen Lumley (Redditch) (Con)
4. What recent discussions he has had with business groups on economic trends in Scotland.
The Secretary of State for Scotland (David Mundell)
I regularly meet a wide range of business organisations to discuss economic issues in Scotland. As I alluded to, last week I shared a platform with the First Minister of Scotland at the annual forum of the Scottish Council for Development and Industry, where we discussed the important issue of productivity.
Karen Lumley
Given that businesses in Redditch have welcomed the devolution deal for Birmingham, what representations have business groups in Scotland made to my right hon. Friend about city deals there?
David Mundell
I have been particularly delighted at the welcome from business groups in Scotland for the announcement yesterday of the Inverness and Highland city deal. The Scottish Government, UK Government and Highland Council will deliver a £315 million package. I welcome in particular the early-day motion from the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) and his colleagues. I pay tribute to him for his part in bringing the deal about.
Liz McInnes (Heywood and Middleton) (Lab)
The Secretary of State will be aware that about 400,000 workers in Scotland earn less than the living wage. The Government claim to be on the side of working people, so why have his Scottish Tory colleagues voted repeatedly alongside the SNP Government to thwart Scottish Labour proposals to extend the living wage?
David Mundell
I will resist the temptation to give the hon. Lady a lecture on the Scottish Labour party’s woes and the fact that it has not been a credible opposition to the SNP in Scotland. This Government are very, very clear on our proposals to increase the wages of the poorest in society by the introduction of the national living wage.
John Stevenson (Carlisle) (Con)
13. Local government clearly has a role to play in economic development. Does the Secretary of State agree that it is important that the Scottish Parliament also devolves power to local government? Might it look to England for a lead—on elected mayors, for example?
David Mundell
I very much take my hon. Friend’s comments. When I spoke with the First Minister of Scotland at the Scottish Council for Development and Industry forum last week, I was particularly encouraged by what she said about her support for city deals. I hope that the city deals we see emerging in Scotland will not just include financial packages but go on to include greater devolution within Scotland.
Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
People in my constituency are extremely concerned about the perceived impact on the local economy and local jobs of the proposed closure of HMRC sites. What impact assessment is being made of these closures on the local economy and jobs?
David Mundell
Initial proposals have been set out for the future shape of HMRC. We hear repeatedly in the House about the wish to make HMRC more efficient and effective, but no steps will be taken in the hon. Lady’s constituency or elsewhere without full consultation with all those involved.
Stephen Gethins (North East Fife) (SNP)
5. What recent discussions he has had with Ministers of the Scottish Government on UK membership of the EU.
The Secretary of State for Scotland (David Mundell)
As the First Minister and I both confirmed last week when we shared a platform in St Andrews, in the hon. Gentleman’s own constituency, the official position of both the UK and Scottish Governments is that the UK is better off in a reformed EU.
Stephen Gethins
First, may I associate myself with the remarks about Brussels, having spent many happy years in that wonderful city? Secondly, the Secretary of State will be aware of the benefits that EU membership has brought us, such as paternal rights and holiday entitlement. Does he agree that we should focus on those benefits, not a rerun of “Project Fear”?
David Mundell
I do not know whether the hon. Gentleman saw the details of my speech yesterday, in which I made a positive case setting out the benefits to Scotland of our remaining in the EU, but I look forward to sharing platforms over the coming weeks with him and his colleagues to make that case.
Philip Davies (Shipley) (Con)
Given that we have a £62 billion a year trade deficit with the EU, does the Secretary of State think that, were we to leave the EU, the Prime Minister would have the ability to negotiate a free trade deal with the EU?
David Mundell
My position is clear: I believe that Scotland and the UK are better off in the EU under the reformed arrangement that the Prime Minister has already negotiated.
Douglas Chapman (Dunfermline and West Fife) (SNP)
14. Will the right hon. Gentleman recognise that a recent survey confirmed that the Scottish Government were one of the most trusted Governments in Europe? Does he look forward to the re-election of Nicola Sturgeon and her team so that we can continue being the most trusted Government in Europe, including beyond 23 June?
David Mundell
I want to ensure that Nicola Sturgeon and her team are held properly to account in the Scottish Parliament, which is why I am encouraging people to vote for Ruth Davidson and the Scottish Conservatives.
Clive Lewis (Norwich South) (Lab)
6. What discussions he has had with the Secretary of State for Energy and Climate Change and Ministers of the Scottish Government on withdrawal of funding for the carbon capture and storage scheme at Peterhead.
The Secretary of State for Scotland (David Mundell)
I have regular discussions with the Secretary of State for Energy and Climate Change and Ministers of the Scottish Government on a number of important energy issues affecting Scotland. The most recent was last night.
Clive Lewis
The Government’s own advisers on energy and climate change have warned that the cost of meeting our climate change targets could double without Peterhead and CCS. Given that the Government are having a good run on U-turns when it comes to saving the Chancellor, perhaps they would also like to make a U-turn when it comes to saving the planet—something that people feel is far more worth while.
David Mundell
We are looking carefully at all options in developing our approach to CCS, informed by Lord Oxburgh’s CCS advisory group. In parallel, the Government continue to engage with the CCS industry—including Shell, which is leading the proposed Peterhead project.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
At the time of the announcement of £1 billion of funding for the CCS scheme at Peterhead, the Energy Secretary was forced to deny that it was a bribe prior to the independence referendum. Now that the withdrawal of this supposedly ring-fenced capital investment exposes it as just that, will the Secretary of State take this opportunity to apologise today to the people of Scotland?
David Mundell
If anybody should apologise to the people of Scotland, it is the hon. Lady and her friends for suggesting that oil tomorrow would have a price of $103 a barrel. What is clear in relation to CCS is that the costs are high and must come down. We have not ruled CCS out, and we are committed to working with the industry to bring forward innovative ideas for reducing the cost of this potentially important industry.
Wayne David (Caerphilly) (Lab)
I am reluctant to refer to the Budget because we cannot be absolutely sure what is in and what is out. For example, the Chancellor’s support for the oil and gas industry is welcome, but it does not take us very far forward. Unfortunately, it appears that the Government here in London are taking their cue from the Government in Holyrood. There, the SNP Government recently axed £10 million of tax breaks for renewable firms, yet they like to see themselves as a green Administration. Are we not seeing two Governments who are confused, pursuing contradictory policies, and not knowing whether they are coming or going?
David Mundell
I can point out one distinct difference between this Government and any Labour Scottish Government, or indeed SNP Scottish Government—and that is that we are not putting up tax for ordinary people as both those parties propose. We have made it very clear that the door is not closed on CCS, but the costs must come down.
Nigel Huddleston (Mid Worcestershire) (Con)
7. What discussions he has had with the Scottish Government on commencement of the fiscal powers in the Scotland Bill.
Oral Answers to Questions
David Mundell Excerpts(8 years, 9 months ago)
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Neil Carmichael (Stroud) (Con)
1. What assessment he has made of the value to the economy in Scotland of UK membership of the single market.
The Secretary of State for Scotland (David Mundell)
Mr Speaker, I am sure that everyone, particularly in Scotland, will share your warm wishes to Andy Murray and Kim Sears on the birth of their daughter.
Latest official statistics published last month show that in 2014 around 42% of all Scottish international exports were destined for countries within the European Union. The value of these exports is estimated at around £11.6 billion.
Neil Carmichael
Does the Secretary of State agree that the package that the Prime Minister will discuss in greater detail with his colleagues on the European Council will bring about much needed reform and be a catalyst for further reform in the future, thus making it quite clear that the single market is good for the United Kingdom and, of course, good for Scotland?
David Mundell
In a reformed EU, we could have the best of both worlds—access to the single market while not being a member of the euro or Schengen. I believe that would be good for Scotland and good for the rest of the United Kingdom.
Angus Robertson (Moray) (SNP)
The single European market and the ability to affect the legislation that governs it is hugely important to the Scottish economy, especially the exporting sectors such as whisky. Will the Secretary of State confirm that, regardless of the ongoing negotiations, he will personally campaign for Scotland and the UK to remain within the European Union?
David Mundell
The right hon. Gentleman will know and will, I am sure, be pleased to have heard that the leader of the Scottish Conservative and Unionist party, Ruth Davidson, has expressed exactly that position.
Angus Robertson
The good news is that I get a second bite of the cherry, so perhaps at the end of this question the Secretary of State will answer my question about whether he will support Scotland and the UK remaining within the European Union. Making a positive case for remaining in the EU will be crucial in the weeks and months ahead, so will the Secretary of State give a commitment not to repeat the grinding negativity of project fear and condemn ridiculous scare stories such as those from the Prime Minister on immigration and the refugee camp in Calais?
David Mundell
I will make my position known when the negotiations have been concluded, but I make this offer to the right hon. Gentleman: if the reform package goes ahead and if I am campaigning to keep Scotland in the United Kingdom I would be delighted to join him, the right hon. Member for Gordon (Alex Salmond) and the First Minister on a platform to make that case.
Mrs Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)
Last night I had the pleasure of meeting the Scotch Whisky Association, which introduced me to some of the finer products from across the border. Simpsons Malt in my constituency produces an enormous amount of the malted barley sold across the border in Scotland to produce this whisky. Does my right hon. Friend agree that expansion into new markets that have nothing to do with the EU is the growth area for the whisky industry?
David Mundell
There are tremendous opportunities for development of the Scotch whisky industry. I think that the Scottish Government, the United Kingdom Government and all parties in the House are united on that. When the President of China was in the United Kingdom recently, we had the opportunity to present his wife with a bottle of her favourite malt whisky from Scotland, and both he and his good lady were able to make clear how important the product is to developing markets in China.
Kirsten Oswald (East Renfrewshire) (SNP)
What discussions has the Secretary of State had with Scottish businesses about the possibility of a UK exit from the European Union, and what concerns have those businesses expressed about the impact it would have on their ability to gain access to, and export to, the single market?
David Mundell
The clearest message that I receive from businesses in Scotland is that they want a short EU referendum campaign so that we can have the minimum amount of uncertainty.
Nic Dakin (Scunthorpe) (Lab)
2. What recent discussions he has had with the Chancellor of the Exchequer and Ministers of the Scottish Government on negotiation of a revised fiscal framework for Scotland.
The Secretary of State for Scotland (David Mundell)
I have regular discussions with the Deputy First Minister to discuss the fiscal framework. The Joint Exchequer Committee met on Monday, and negotiations are ongoing.
Nic Dakin
Yesterday the First Minister wrote to the Prime Minister listing the issues on which agreement still needed to be reached. They were the method for
“block grant adjustment…set-up and administration costs, capital and revenue borrowing, fiscal oversight and dispute resolution.”
Can the Secretary of State confirm that those are all the outstanding issues on which agreement still needs to be reached?
David Mundell
It was established at the start of the discussions that until everything was agreed, nothing was agreed, but considerable progress has been made on all those issues. I was very pleased to learn from the First Minister’s letter that the Finance Secretary would be presenting revised proposals from the Scottish Government. That is what a negotiation involves: it involves both parties presenting revised proposals as the negotiation progresses, and that is exactly what the UK Government are committed to doing.
David Mowat (Warrington South) (Con)
The starting point of the fiscal framework discussions is the Barnett formula, which means that Scotland’s public spending per capita is 15% higher than the United Kingdom average. Does the Secretary of State believe that that differential will be maintained in perpetuity?
David Mundell
My hon. Friend’s views on the Barnett formula are well known. I do not agree with them, and nor do the Government. The Government’s position is that the formula will remain, even in the post-fiscal framework environment.
Pete Wishart (Perth and North Perthshire) (SNP)
The negotiations on the fiscal framework are in a very sensitive and fragile state, and we must be very careful about the language that is used. However, the Secretary of State has used language like “ludicrous” and “chancing his arm” when it comes to one party to the negotiations, which is profoundly unhelpful. If the Secretary of State and the Scotland Office have nothing to offer the negotiations, will the Secretary of State vow to stay right out of it, and leave those who want to find a solution to try to get those negotiations fixed?
David Mundell
I find it a little odd to take a lecture from that particular hon. Gentleman on moderate language.
I do not think anyone can doubt my commitment to ensuring that we have a negotiated fiscal framework, and I am delighted that, in her letter to the Prime Minister, the First Minister set out her strong commitment to achieving such an agreement, because that is the Prime Minister’s position. As I said at the weekend, both sides have done the dance; now let us do the deal.
Mr Kenneth Clarke (Rushcliffe) (Con)
Does my right hon. Friend agree that if we are to have the successful devolution that we all want, we need a firm and sensible framework for fiscal discipline that will last, and will stand the tests of all the unknown economic vicissitudes that may hit the country? Will he assure us that we will not repeat the mistakes that have been made in Spain, where devolved provinces frequently run up unsustainable debts which they then blame on Madrid, causing great difficulties to Spanish Governments who are seeking recovery?
David Mundell
As my right hon. and learned Friend will recognise, the settlement in Spain is entirely different. I agree with him about the need for a sustainable fiscal framework, but, as the Government have made clear in the negotiations, we are willing to accept a review of the arrangements in a few years to ensure that they stand up to scrutiny, and are seen to be fair to both Scotland and to the rest of the United Kingdom.
Ian Murray (Edinburgh South) (Lab)
Mr Speaker, I join you in congratulating Andy Murray and Kim Sears on the birth of their baby daughter. However, their baby daughter might be winning Wimbledon by the time we get a deal on the fiscal framework. The UK and Scottish Governments have now been negotiating it for more than six months, which is longer than it took to negotiate the Scotland Bill itself, longer than it took to strike the historic international climate change agreement and longer than it took the G20 leaders to negotiate $1.1 trillion of support for the global economy. It is clearly the indexation model that is contentious, so will the Secretary of State tell the House why he thinks the per capita index model is not appropriate for the indexation of the block grant?
David Mundell
I have made it clear in previous discussions that we are not going to have detailed negotiations on this matter on the Floor of the House. I have also said that I very much welcome the fact that the First Minister has indicated that the Scottish Government are going to bring forward a revised proposal, just as we have done through the negotiations. I believe that we are within touching distance of striking a deal and I remain optimistic that we will do so.
Ian Murray
The Secretary of State says that he will not provide a running commentary on the fiscal framework, yet both Governments are providing exactly that. The respected economist Anton Muscatelli has said of the fiscal framework:
“I do not understand why it should be such a huge stumbling block.”
The constitutional expert Jim Gallagher has said:
“This fiscal framework is an eminently solvable problem.”
The Prime Minister has spent recent months shuttling around Europe trying to strike a deal on EU reform. Is it not time that he got involved and showed the same enthusiasm for striking a fair deal for Scotland in our own Union as he has shown for the European Union?
David Mundell
The Prime Minister is committed to securing a deal. He has spoken to Nicola Sturgeon about this issue and they have had productive discussions. They are now involved in an exchange of letters, but they are both quite clear that they now want a deal. I am confident, given the position set out in the letter from the First Minister that the Scottish Government are actively engaging in that negotiation process, as are we, that we will be able to get that deal.
Alberto Costa (South Leicestershire) (Con)
3. What discussions he has had with representatives of the North sea oil and gas industry on Government support for that sector.
The Secretary of State for Scotland (David Mundell)
On 28 January, the Prime Minister and I held discussions with industry representatives in Aberdeen on further support for the North sea. As a member of the joint ministerial group on oil and gas, I also engage with key stakeholders, such as the Oil and Gas Authority, on a regular basis.
Alberto Costa
Calor Gas has its largest operational UK site in my constituency in South Leicestershire. A number of residents in the Scottish highlands and other rural areas rely on Calor Gas, which receives a large part of its Scottish gas supply from the North sea. Does my right hon. Friend agree that, as a result of the support that the UK Government are able to provide, we are much better placed to absorb the fall in oil prices than would have been the case had Scotland been an independent country?
David Mundell
I acknowledge the importance of Calor Gas and all those who supply off-the-network energy to people living in rural Scotland. On my hon. Friend’s wider question, he makes an important point about the ability of the United Kingdom as a whole to absorb the change in the oil price.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
What discussions has the Secretary of State had with the Chancellor about continued funding for seismic surveys on the UK continental shelf?
David Mundell
I am sure that the hon. Lady welcomed the Prime Minister’s announcement when he was in Aberdeen of a £20 million contribution to a second round of new seismic surveys.
Sir Alan Duncan (Rutland and Melton) (Con)
The severity of the collapse in global oil prices carries with it the danger that a number of fields in the North sea will suspend production and perhaps never resume it. Given that this would represent a serious loss of national assets and national infrastructure, may I invite the Secretary of State to have further discussions with the Chancellor in advance of the Budget to try to ensure that these fields are not lost forever and that they remain an important part of our national economy?
David Mundell
It will not surprise my right hon. Friend to know that that issue was part of the discussion with the Prime Minister, Fergus Ewing from the Scottish Government and representatives of the oil and gas industry at the recent meeting in Aberdeen. The Prime Minister made it very clear that he would look at any specific request or proposal in relation to supporting the industry in the forthcoming Budget.
Anne McLaughlin (Glasgow North East) (SNP)
4. What recent discussions he has had with the Secretary of State for Work and Pensions on the effects of the Government’s welfare programme on social and economic inequalities in Scotland.
Sue Hayman (Workington) (Lab)
6. What discussions he has had with the Secretary of State for Transport and Ministers of the Scottish Government on the effect on communities in Scotland of the partial closure of the west coast main line.
The Secretary of State for Scotland (David Mundell)
I have had a number of discussions with the Department for Transport and others to ensure that the closure of the Lamington viaduct, which is in my own constituency, is addressed as quickly as possible. We remain absolutely committed to working together with all parties to reopen the west coast line in the first week of March.
Sue Hayman
I apologise for my lack of voice. The closure of the west coast main line has a huge impact not only on the economy of southern Scotland, but on Cumbria, too, as it is a strategic cross-border crossing on which many businesses in my constituency rely. I was pleased to hear the Secretary of State say that it will be open in the first week of March, as it is so important. Will he confirm that the entirety will be open by 1 March?
David Mundell
I welcome the hon. Lady’s comments because, as she will be aware, my own constituents who use Lockerbie station are among those most affected by these changes. We are determined to get the west coast main line fully reopened in that first week in March.
John Nicolson (East Dunbartonshire) (SNP)
The Prime Minister claims that he will get a good deal for Britain in the European Union. Would the Secretary of State like to see the United Kingdom play the same role and have the same powers in the EU that he claims Scotland currently has in the UK?
Mr Speaker
That was quite tangentially related to the west coast main line, but I hope that the dexterity of the Secretary of State will admit of an answer.
David Mundell
Mr Speaker, the west coast main line is one of the most important routes within the United Kingdom to Europe via London. I have set out my position in relation to the EU referendum. If the SNP genuinely wants Scotland to remain in the EU, it is important that, rather than concentrate on process issues, it gets out and campaigns for it.
Mr Graham Allen (Nottingham North) (Lab)
7. What recent discussions he has had with Ministers of the Scottish Government on the effect of devolution on the powers and autonomy of Scottish local government; and if he will make a statement.
The Secretary of State for Scotland (David Mundell)
I do not know whether the hon. Gentleman has had the opportunity to read my speech of 21 December, in which I set out that I fully support the devolution of power from Holyrood to local communities, as Lord Smith recommended in his commission agreement. This is the responsibility of the Scottish Parliament to implement, and I encourage them to do so.
Mr Allen
Will the Secretary of State condemn those who use devolution to centralise power in Holyrood—whether it is the centralisation of the police, the fire service, health spending, local government spending, courts, colleges and enterprise companies? Will he ensure that he stands together with those who feel that devolution does not stop at Holyrood, but goes down to the Scottish local authorities and to the Scottish people?
David Mundell
I absolutely agree with the hon. Gentleman, and I can tell him the best way to achieve it, which is, under Ruth Davidson, to elect more Scottish Conservative MSPs to the Scottish Parliament.
Philip Boswell (Coatbridge, Chryston and Bellshill) (SNP)
In the interests of the record, can the Secretary of State confirm that, under the powers that are being devolved as part of the current Scotland Bill, the Scottish Government will be able to vary rates and bands of the Scottish rate of income tax—[Interruption.]
Mr Speaker
Order. Members need to learn the merits of the blue pencil. If they used the blue pencil and questions were shorter, they would benefit.
David Mundell
The Scottish Parliament will indeed take on those very significant tax powers, which it will be able to use as it sees fit. I hope it will use them to make Scotland a more attractive place for business and commerce and to grow the Scottish economy and the Scottish population.
Oral Answers to Questions
David Mundell Excerpts(8 years, 10 months ago)
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Ronnie Cowan (Inverclyde) (SNP)
10. What recent discussions he has had with the Scottish Government on Scotland’s fiscal framework.
The Secretary of State for Scotland (David Mundell)
May I begin by wishing you a very happy new year, Mr Speaker?
In the light of the recent flooding in Scotland, may I pay tribute to all those in the emergency services and in local authorities, and the volunteers, who have dealt with the challenging circumstances? The thoughts of the whole House will be with those whose homes and businesses have been flooded.
The UK and Scottish Governments are discussing the fiscal framework through the Joint Exchequer Committee, and there have been five meetings between the Deputy First Minister and the Chief Secretary to the Treasury to discuss it. The next meeting is due to take place on Friday.
Mike Weir
I thank the Secretary of State for his answer and associate myself with what he said about the flooding, which has affected my constituency and those of many of my colleagues. We appreciate the work the emergency services are doing.
The block grant will need to be adjusted to take account of the revenue-raising powers that are being devolved, but, as agreed by the Smith commission, the Scottish Government should not be financially disadvantaged by the transfer of the new powers. What is the Secretary of State’s view of what a fair indexation for the block grant adjustment would be?
David Mundell
My understanding is that the Deputy First Minister of Scotland, John Swinney, with whom I had a productive meeting just before Christmas, is conducting the negotiations on behalf of the Scottish Government. At our meeting, Mr Swinney assured me that his objective was exactly the same as that of the United Kingdom Government—a settlement that is fair to Scotland and fair to the whole United Kingdom.
Marion Fellows
A fair model of block grant adjustment would ensure that Scotland is no worse off financially as a result of the transfer of new powers. Does the Secretary of State agree with the cross-party view, and that of Anton Muscatelli, Jim Cuthbert and the Scottish Trades Union Congress, that only the model of indexed deduction per capita would adequately deliver the principle of no detriment?
David Mundell
As I said, we are involved in an ongoing negotiation, which Mr Swinney is conducting. I have tremendous respect for his ability to reach a fair settlement for Scotland, and for the Chief Secretary’s ability to reach a fair settlement for the rest of the United Kingdom. On the basis of the discussions that took place between the First Minister and the Prime Minister, my own discussions with the Deputy First Minister and the meeting that is due to take place on Friday, I am confident that we will be able to achieve a fair settlement.
Dr Eilidh Whiteford
A good new year to you, Mr Speaker.
Many people will find it bizarre, and frankly unacceptable, that the Secretary of State for Scotland is not even attending the negotiations on Scotland’s fiscal framework. Can he explain why his office of Secretary of State seems to have been deemed irrelevant to those critical negotiations? Given that he is not directly involved in the negotiations, will he share his personal view on whether he agrees with the learned professors and the STUC on the preferred model?
David Mundell
I think what many people in Scotland will find bizarre is that at a session in Parliament that is called Scottish questions, the Scottish National party could come up with only one question, which all its Members were clearly told to ask.
I know that it may impinge on the importance that some SNP MPs attribute to themselves, but it is the Deputy First Minister of Scotland, John Swinney, who is negotiating the agreement, not them.
Ronnie Cowan
The model of indexed adjustment for the adjustment of the block grant may result in the Scottish block grant falling substantially without consideration of the different rates of population growth north and south of the border. Does the Secretary of State agree that that or any other model of block grant adjustment that results in a diminished Scottish budget year on year will not fulfil the Smith commission’s principle of no detriment?
David Mundell
I am disappointed with the hon. Gentleman’s analysis because the new powers that are being delivered by the Scotland Bill create the opportunity for Scotland’s economic growth to increase and for Scotland’s population to increase. I am very surprised that he has such a negative view of the use of those powers that it would be impossible to increase population or economic growth in Scotland and therefore increase tax take.
Alberto Costa (South Leicestershire) (Con)
Does my right hon. Friend agree that the transfer of the new extensive powers that he has agreed will be given to the Scottish Parliament will for once make the SNP Government truly accountable to the Scottish people, and that the talk of a second referendum is just a smokescreen to take away their accountability to the Scottish people?
David Mundell
I absolutely agree that the impression created again today by SNP Members is that they are entirely driven by process arguments, and not by getting on and getting an agreement on the fiscal framework, getting the new powers in place and then doing something positive for the people of Scotland with those powers.
Maggie Throup (Erewash) (Con)
Will my right hon. Friend confirm that, once the fiscal framework has been agreed, the devolution of tax powers to the Scottish Parliament can begin quickly?
David Mundell
I am absolutely committed to delivering the powers set out in the Scotland Bill when it becomes an Act as quickly as possible. We want that Act on the statute book ahead of the Scottish Parliament elections so that it can shape those elections, and so that the parties can set out what they intend to do with the powers. I would like the tax powers in place by April 2017.
John Stevenson (Carlisle) (Con)
The success of the fiscal framework is vital to the future success of the tax powers that have been devolved. Confidence in the framework is vital for individuals and businesses, particularly in the border region. Does the Secretary of State believe that the Scottish Government are approaching the discussions in good faith, which will be fair to people on both sides of the border?
David Mundell
I absolutely do, because, from the discussions that Nicola Sturgeon, the First Minister of Scotland, has had with the Prime Minister, and from the discussions I have had with the Deputy First Minister—we have to remember that they are determining what will be agreed in relation to the fiscal framework—their view is clear. I take it as sincere that they want to achieve a fiscal framework agreement in the near future. We can then move forward with enacting the Bill and transferring those powers, which could make such a difference to the people of Scotland.
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
12 . The Smith commission recommended that the cost of establishing the infrastructure for the collection of the newly devolved taxes would be borne by the UK Government. Will the Secretary of State for Scotland, and not the Deputy First Minister of Scotland, confirm that the UK Government accept that recommendation?
David Mundell
I can confirm to the hon. Gentleman that that is one of the items that is part of the discussion between the UK Government and the Scottish Government. It is so surprising that SNP MPs have such little confidence in Mr Swinney and the Scottish Government in the negotiation to hold out for positions that would be beneficial to Scotland—I find it staggering.
Kirsten Oswald (East Renfrewshire) (SNP)
13. Does the Secretary of State agree with the First Minister, Professor Muscatelli and the STUC that more powers for Scotland cannot come at any price, but that the fiscal framework settlement must deliver fairness for Scotland? Will the Secretary of State commit to a date before the Scottish elections by which an agreement must be reached?
David Mundell
I absolutely agree that the arrangements must be fair—fair to Scotland and fair to the rest of the United Kingdom. That is perfectly achievable. I do not want to provide a running commentary, but the negotiations and discussions that have taken place have been productive. For example, I absolutely agree with the comments of Mr Swinney to the Scottish Parliament Finance Committee —he clearly said that the Scottish Government should benefit from the positive decisions they take but accept the consequences of bad policy decisions. That should also apply to the UK Government in relation to our responsibilities.
Ian Murray (Edinburgh South) (Lab)
May I take this opportunity, Mr Speaker, to wish you and all the staff of the House, as well as the Secretary of State and his office, a happy new year? Mr Speaker, you would have thought that the pantomime season was over, but judging by today’s questions, it clearly is not—[Interruption.] Oh, yes, it certainly is. I was expecting that, from someone who has no jokes whatsoever. We could be questioning the Government on no shortage of things, but the Secretary of State has created this sham by keeping the fiscal framework secret. What is ludicrous is that the SNP Finance Secretary, who is negotiating the very fiscal framework that we are discussing, could be asked what is in it. It is clear that it is the people of Scotland who are being kept in the dark. I have asked the Secretary of State this before, but will he put an end to this pantomime of manufactured grievance and be completely transparent about the fiscal framework?
David Mundell
The Government are completely transparent about our position on the fiscal framework. We want it agreed as soon as possible and we want it to be scrutinised by both Parliaments. When I was in the Scottish Parliament recently I had the opportunity to meet Bruce Crawford, convener of the Devolution (Further Powers) Committee. He assured me that he is satisfied that in conjunction with the Finance Committee in the Scottish Parliament there will be adequate opportunity to scrutinise the fiscal framework. I am clear that there will be an opportunity in the other place to scrutinise it, and the Select Committee on Scottish Affairs is currently conducting an inquiry. I do not think that the people of Scotland will be in the dark in any way about the fiscal framework. It will achieve what we want it to achieve but it will also be subject to proper scrutiny.
Ian Murray
I do not think that the Secretary of State understands the process and how important this is. The Scotland Bill constitutes the biggest transfer of powers to Scotland ever, but the underpinning financial provisions are being hidden from the Scottish people. I have written to both Governments and questions have been asked in both Parliaments to try to get transparency, but the response from both Governments has been “no”. Meanwhile, the Scottish Government are threatening to veto the Bill. The danger is that while these negotiations are being conducted in secret, both Governments can blame each other with manufactured grievance, and it is the people of Scotland who will lose out. Will the Secretary of State at least assure us that in future negotiations as important as this on Scotland’s finances will be conducted with greater transparency and democratic scrutiny?
David Mundell
I have no grievance, manufactured or otherwise. I am confident that the Scottish Government want to achieve an agreement. The UK Government want to achieve an agreement based on fairness to Scotland and fairness to the rest of the United Kingdom. I give the hon. Gentleman an absolute commitment that the fiscal framework, as agreed, will be subject to full parliamentary scrutiny here in Westminster and in the Scottish Parliament.
Karen Lumley (Redditch) (Con)
6. What assessment he has made of the level of growth in the economy in Scotland.
The Secretary of State for Scotland (David Mundell)
The Government’s long-term economic plan has laid the foundations for a stronger economy. The Scottish economy has been growing for 11 quarters in a row. Scotland continues to benefit from being part of the UK, which was the fastest growing G7 economy in 2014 and is forecast to be the joint fastest in 2015.
Karen Lumley
My constituency has a number of manufacturing companies that do a great deal of business in Scotland, contributing to the growth of the local economy of Redditch as well as to the economy of Scotland. Does my right hon. Friend agree that that is just one element that makes the Union so successful?
David Mundell
I do agree with my hon. Friend. It is a fundamental part of the growth in Scotland’s economy that we are part of a single market within our United Kingdom. I recently had the pleasure of visiting Alexander Dennis, the bus manufacturer in Falkirk, and I am sure that they would agree that the rest of the United Kingdom was one of their most important markets.
George Kerevan (East Lothian) (SNP)
Given that employment in Scotland is now 53,000 higher than it was before the crisis, and that output in Scotland is now 3% higher than at the pre-crisis point, does the Secretary of State concur with Scottish business leaders who oppose the Treasury’s savage cuts to the UK’s trade export agency in the autumn statement?
David Mundell
I very much welcome the figures the hon. Gentleman set out on the positive economic position in Scotland. What I do not subscribe to is the frequently voiced Scottish National party and Scottish Government position that anything good that happens in Scotland is in relation to the Scottish Government and anything bad is in relation to the UK Government. We have two Governments working together for the benefit of Scotland’s economy.
Wayne David (Caerphilly) (Lab)
The North sea oil and gas industry is obviously vital to Scotland’s economy. Yesterday, a Scottish nationalist MSP claimed that there is no crisis in the industry, even though it has been estimated that 65,000 jobs have been lost since 2014. The SNP clearly inhabits a different world from everybody else. Will the Secretary of State tell us what his Government are doing to support the oil industry and to protect the thousands of jobs that depend on it?
David Mundell
I find it extraordinary that anyone who represents the north-east of Scotland could claim that there was no crisis in the oil and gas industry. This Government have demonstrated, yet again, in the Chancellor’s autumn statement that we are committed to that industry and the thousands of jobs that it supports right across the United Kingdom. There will be further evidence of our commitment to Aberdeen and the north-east in the weeks ahead.
Robert Flello (Stoke-on-Trent South) (Lab)
7. What assessment he has made of the effect on household incomes in Scotland of the changes to welfare announced in the summer budget 2015 and the spending review and autumn statement 2015.
Mr Christopher Chope (Christchurch) (Con)
8. What discussions he has had with the Scottish Government on increasing the number of undergraduates attending Scottish universities.
The Secretary of State for Scotland (David Mundell)
I regularly discuss a range of matters with the Scottish Government. Although higher education is a devolved matter, the available figures show that application rates for those aged 18 in 2014 and 19 in 2015 were 37% in Scotland compared with 44% in England. [Interruption.]
Mr Speaker
Order. I also wish to hear the voice of Christchurch on the matter of Scottish universities.
Mr Chope
How can it be in the United Kingdom national interest that school leavers from Scotland are being denied access to their own universities because of the arbitrary cap on numbers imposed by the Scottish Government, when school leavers with lower qualifications from the rest of the UK are able to gain such access?
David Mundell
My hon. Friend makes an important point. Students from my constituency have been refused entry to Scottish universities because of the cap imposed by the Scottish Government; we hear a lot about free tuition in Scotland but that is one of the consequences, and I am sure it will be part of the debate in the forthcoming Scottish Parliament elections.
Pete Wishart (Perth and North Perthshire) (SNP)
As the hon. Member for Christchurch (Mr Chope) knows, the Scottish Affairs Committee has been looking into higher education, specifically into a post-study work scheme for Scotland. What the Secretary of State will find is that everybody—the universities, the trade unions, and the employers’ association—wants that scheme for Scotland. Will he now be a Secretary of State for Scotland and put that case to the Home Office?
David Mundell
We always listen with interest and take forward in a positive way anything that is forthcoming from the Scottish Affairs Committee, and I look forward to reading the hon. Gentleman’s report.
The Secretary of State for Scotland (David Mundell)
The administrative cost of running the Scotland Office and Office of the Advocate General for Scotland in the financial year 2010-11 was £7.688 million. The administrative provision for both offices in 2019-20, agreed at the recent spending review, is £9.240 million.
Mr Hollobone
Will the Secretary of State confirm to the House what percentage of his Department’s administrative costs is met by Scottish taxpayers?
David Mundell
My hon. Friend knows that the funding arrangements within the United Kingdom do not work on that basis. He also knows that this Government are committed to retaining the Barnett formula, which delivers a fair allocation of funding to Scotland.