Oral Answers to Questions

David Mundell Excerpts

Wednesday 25th February 2015 Commons Chamber

[Jim Sheridan (Paisley and Renfrewshire North) (Lab)]

3. What discussions he has had with the Scottish Government on practical steps to encourage employers to pay the living wage.

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

I have regular discussions with the Scottish Government on a range of employment issues. The UK Government support businesses that choose to pay the living wage, where that is affordable and does not cost jobs.

[Jim Sheridan]

I thank the Minister for that response, which seems somewhat aspirational rather than ambitious. He will be aware that the Scottish Government at Holyrood refused to support the call for a living wage that was put forward by Labour in Scotland. Will he follow the example set by my local Labour-controlled Renfrewshire council, which has not only introduced a living wage, but used the procurement process to encourage its suppliers to pay the living wage?

[David Mundell]

There are excellent examples of local authorities taking forward initiatives with the living wage, and South Lanarkshire council is one. Perhaps the hon. Gentleman heard the speech that my colleague, Ruth Davidson, made to the Scottish Conservative conference on Friday in which she called for help and support for businesses that promoted the living wage. I hope Scottish Labour and the Scottish Government will support her in that regard.

[Gemma Doyle (West Dunbartonshire) (Lab/Co-op)]

A Labour Government will ban the use of exploitative zero-hours contracts, which leave people not only not making the living wage, but unable to make a living on the minimum wage. Why will this Government not do the same?

[David Mundell]

The hon. Lady forgets that there was actually a Labour Government up until five years ago who took no action whatever on zero-hours contracts. This Government have banned exclusivity in zero-hours contracts, which is what leads to exploitation.

[Margaret Curran (Glasgow East) (Lab)]

This Government are constantly making claims about new jobs that have been created in Scotland since the last election. Of those new jobs, what proportion have been in low-paying industries?

[David Mundell]

Since this Government came to power, 107 jobs a day have been created in Scotland. I am afraid that the hon. Lady has had a memory lapse, because she cannot remember the position on employment when this Government came to power and she cannot accept the good news of the creation of new jobs.

[Margaret Curran]

What I do remember is that the Labour Government implemented the minimum wage in the face of opposition from the Conservative party. According to new research from the House of Commons Library, 82% of these new jobs are in the low-paying sectors. That news comes days after the TUC revealed that one in five workers in Scotland is paid below the minimum wage. Just this morning, the Office for National Statistics revealed that 28% of workers are on zero-hours contracts. This Government stand up for the wrong people: they help out their friends who have been avoiding their taxes, yet they do not help those who work hard and play by the rules, but do not even get a decent wage in return. Will the Minister take any action in what remains of the last days of this Government to help ordinary working people to get a decent wage, or is the only hope is that in 71 days’ time, we get rid of this out of touch Government and get a Labour Government who will put working people first?

[David Mundell]

The hon. Lady could start by endorsing Ruth Davidson’s proposal to incentivise the paying of the minimum wage, and that is actually a fact, not rhetoric. As I have told the hon. Lady on numerous occasions, if she has evidence of people not being paid the minimum wage, she should bring that forward. Yesterday, the Government did something the Labour Government never did: we named and shamed 70 companies, including some in Scotland, that do not pay the minimum wage. What she should be celebrating is the fact that this Government have delivered 107 jobs a day in Scotland, 1,645 of which are in her constituency, as can be seen from the drop in jobseeker’s allowance claimants.

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[Sheila Gilmore (Edinburgh East) (Lab)]

6. For what proportion of participants in the Work programme in Scotland job outcome payments have been made to providers of that programme.

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

Work programme participants are some of the hardest to help and can experience multiple barriers to finding work. There are two providers in Scotland: Ingeus has supported 21.2% of all claimants into a job outcome; and Working Links has supported 20.4% of claimants into a job outcome.

[Sheila Gilmore]

The Work programme has performed worse in Scotland than in any English region. In the meantime, successful local projects such as the Engine Shed in my constituency have had to close. Does the Minister agree that powers over this should be devolved as quickly as possible—and not just to the Scottish Parliament, but to local authorities?

[David Mundell]

I certainly agree that the Engine Shed was a great project. I have made it clear to the Deputy First Minister that if proposals are brought forward after the election for the devolution of the Work programme, separate from other items to be devolved, I would have an open mind about that.

[Mary Macleod (Brentford and Isleworth) (Con)]

Thanks to this Government, those helped into employment though the Work programme do not have to pay income tax on the first £10,000 they earn. Does the Minister agree that that represents progress towards economic growth in Scotland and opportunities for its young people?

[David Mundell]

Absolutely. Some 32,620 people in Scotland have found work through the Work programme, which means they can bring home a wage, support their family and play a part in their wider community.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

By any measure the Work programme has been a failure. It has wasted public money and let down the people depending on it. When will the Government listen to not only the Smith commission, but the dozens of civil society organisations in Scotland that have called for employment support to be devolved so that we can develop an integrated system in Scotland that actually works?

[David Mundell]

I do not think that the 32,620 people who have found work through the Work programme would agree with the hon. Lady’s assessment. It is now time for her party to come forward with its proposals for an alternative to the Work programme, rather than just criticising the Government and calling for more powers. This Government have given a commitment to effect a transition to such a programme, but first we need to know what it will be.

[Jim McGovern (Dundee West) (Lab)]

11. The Work programme is obviously failing in my constituency and in the city of Dundee as a whole, where only one in seven participants actually get a job. What will the Minister do to address that problem?

[David Mundell]

I fully acknowledge that the hon. Gentleman has been a fervent campaigner on this issue—and, indeed, on employment—in his constituency, but I am sure that he welcomes the fact that over the past five years, under this Government, the number of jobseeker’s allowance claimants in his constituency has gone down by 842—some 27%.

[Mr Frank Roy (Motherwell and Wishaw) (Lab)]

9. Unemployment in the Motherwell, Wishaw and Bellshill area rose again last month, with more than 500 young people now unemployed. Why has the Tory Work programme failed them?

[David Mundell]

I absolutely dispute the claim that the Work programme has failed them. The Work programme looks to help the most vulnerable people into work, and people have moved into work over the past five years in the hon. Gentleman’s constituency, where the JSA claimant count has come down by 1,403—some 39%. I am sure that even he welcomes that.

--- Later in debate ---

[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

8. What discussions he has had with Scottish Government Ministers on the co-ordination of programmes to dual the A1.

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

The provision of road transport in Scotland is a devolved matter. Department for Transport Ministers did, however, offer to work with Transport Scotland on a joint feasibility study on dualling the A1. The Scottish Government chose not to take up that offer.

[Sir Alan Beith]

Now that this coalition Government have committed £290 million to dualling the A1 on the English side of the border, should not the SNP Government in Scotland bring forward plans to dual remaining single carriageway sections on the Scottish side of the border?

[David Mundell]

I agree with my right hon. Friend. He may be aware that my colleague John Lamont MSP has been making exactly that call.

[Pete Wishart (Perth and North Perthshire) (SNP)]

As we await the dualling of the A1, has the Minister heard of the success of the average speed cameras on the A9? Accidents have been cut by 97%, speeding is down by 90% and the road experience has been totally transformed. Will he now get his right hon. Friend the Chief Secretary to the Treasury to abandon his reckless and irresponsible campaign to take those cameras down and put my constituents at risk once again?

[Mr Speaker]

Order. I think I was very generous. The hon. Gentleman started banging on about the A9, rather than the A1, but we will let him off on this occasion.

[David Mundell]

It is worse than that, Mr Speaker. We constantly hear complaints from the hon. Gentleman about this place intruding into the affairs of the Scottish Parliament, and yet he raises an issue that is solely the responsibility of the Scottish Parliament.

Draft Scotland Clauses

David Mundell Excerpts

Thursday 22nd January 2015 Commons Chamber

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

With permission, Mr Speaker, I wish to make a statement to the House about the further devolution process in Scotland and the publication of draft clauses to implement the Smith commission agreement.

The draft clauses published today deliver a substantial package of new powers to the Scottish Parliament. We are publishing ahead of the Burns night deadline, demonstrating the Government’s commitment to honouring the vow made to the people of Scotland during the referendum and meeting the timetable we set out during the referendum to deliver further powers to Scotland.

The referendum on independence on 18 September 2014 saw Scotland vote decisively to remain within our United Kingdom family of nations, retaining the strength, security and stability of being part of the UK. But the Scottish people did not vote for no change. During the referendum campaign, the Prime Minister, the Deputy Prime Minister and the Leader of the Opposition, made a joint commitment to deliver more powers to the Scottish Parliament.

The Smith commission, chaired by Lord Smith of Kelvin, was the result of that commitment. All five main parties in Scotland came to the table and reached agreement on the proposals for further devolution to Scotland within the United Kingdom. The Government welcomed the fact that this was the first time that all of Scotland’s main parties had taken part in a process to decide the future of devolution. This landmark agreement was signed by all five parties. I am grateful to Lord Smith and the members of the commission for their work.

The commission’s heads of agreement were published on 27 November and the Government committed to bring forward draft clauses to implement the agreement by Burns night, 25 January. This was a challenging timetable, but, by publishing a Command Paper and draft clauses today, I am pleased to say that the Government have delivered on their commitment in advance of that deadline.

The clauses published today will make it possible quickly to translate the Smith commission agreement into law at the beginning of the next Parliament. The draft clauses provide for an already powerful Scottish Parliament to become further empowered and more accountable to those who elect it. As a result, the Scottish Parliament will become one of the most powerful devolved Parliaments in the world.

I will begin with the constitutional measures. The biggest transfer of powers to the Scottish Parliament and Scottish Minsters since the start of devolution comes with greater flexibility for the Scottish Parliament and the Scottish Government to manage their own arrangements, with statutory recognition of the enduring place of a Scottish Parliament in the UK’s constitutional arrangements. Our commitment to the process has already been evidenced by the steps the Government have taken to enable the Scottish Parliament to extend the franchise to 16 and 17-year-olds in time for the 2016 Scottish Parliament elections, with an order now laid before both Parliaments.

On the fiscal framework, the package gives greater financial responsibility to the Scottish Parliament with an updated fiscal framework for Scotland, consistent with the overall UK fiscal framework. As the Smith commission agreement set out, the new fiscal framework will be agreed and implemented jointly by the UK Government and the Scottish Government through the Joint Exchequer Committee, with suitable engagement with both the UK and Scottish Parliaments. For the first time, more than 50% of the money spent by the Scottish Parliament will be funded by the Scottish Parliament. This is an important step that builds on the measures brought forward by this Government in the Scotland Act 2012 and further increases the financial accountability of the Scottish Parliament to the people of Scotland.

Under the tax clauses, Scotland will receive extensive new tax powers without losing the essential elements of our unified tax system that support the single market and make the UK such an attractive place to do business. The Scottish Parliament will be given the power to set the rates of income tax and the thresholds at which these are paid for the non-savings and non-dividend income of Scottish taxpayers. This is the most significant tax in Scotland and a powerful redistributive tool.

The first 10 percentage points of the standard rate and the first 2.5 percentage points of the reduced rate of value added tax will be assigned to the Scottish Government. This means that the Scottish Government will retain half the VAT revenue generated in Scotland. The clauses also give the Scottish Parliament the power to charge a tax on air passengers departing from Scottish airports and on commercial exploitation of aggregate in Scotland.

The welfare clauses provide for key welfare measures to be designed by and delivered in Scotland. The Scottish Government will be responsible for a number of benefits, including those for disabled people and carers. Issues relating to long-term unemployment will be tackled with specific consideration of local circumstances. As set out by the Smith commission, universal credit will remain reserved, but the Scottish Government will have certain flexibilities, including the power to vary the housing cost element. Scotland will continue to share the benefits and strengths of the UK-wide system for pensions, labour market benefits and Jobcentre Plus.

Additional clauses build on the already significant powers of the Scottish Parliament and Government in a range of other policy areas. To give a few examples, there are new powers for the licensing of onshore oil and gas extraction, powers to introduce gender quotas in respect of public bodies in Scotland, and powers to police the railways. Together, these clauses give greater responsibility for more decisions affecting Scotland to be made in the Scottish Parliament and paid for by revenue raised by the Scottish Parliament.

Later today, the Prime Minister and ministerial colleagues will host an event in Edinburgh to present the Command Paper and clauses to representatives of civic Scotland. This will signal the next phase of the work.

The clauses are presented today in draft. They will require further preparation to make them ready for their introduction in a Scotland Bill in the next Queen’s Speech. It has become clear that this legislation will be taken forward by whoever leads a Government after the general election. To get the clauses fully ready, the Government wish to engage with experts from civic Scotland. We are also committed to engaging with the Scottish Government and Her Majesty’s Opposition ahead of finalising the clauses for introduction. Questions of commencement and implementation will need to be answered, and in order to do this we will need to understand what the Scottish Government intend to do with the new powers. It will be necessary for the fiscal framework to be agreed alongside the introduction of the Scotland Bill.

Lord Smith made further observations to which we need to pay heed. In some areas, he recommends further devolution from the Scottish Parliament to local authorities in Scotland. He also recommended better working between the two Governments and the two Parliaments.

The Command Paper and draft clauses provide for a responsible and accountable Scottish Parliament inside a strong United Kingdom. By publishing ahead of time, the Government are demonstrating that they are meeting their guarantee to the people of Scotland. The clauses ensure a set of proposals that do not cause detriment to the UK as a whole or to any of its constituent parts.

The Government remain committed to ensuring that Scotland and the whole of the United Kingdom continue to prosper from our single domestic market, our social union, and the strength that comes from the pooling and sharing of risks. People in Scotland made it clear that they want to keep the advantages of a UK pound, UK pensions, UK armed forces, and a strong UK voice in the world. These clauses allow that to happen.

This is the package that Scotland voted for, it is what all parties in the Smith commission process signed up to, and it is what this Government are delivering today. I commend this statement to the House.

[Mr Russell Brown (Dumfries and Galloway) (Lab)]

I thank the Minister for advance sight of his statement.

Today we mark another milestone in the delivery of the vow made to the people of Scotland before the independence referendum in September. The timetable set out by my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown) during the referendum campaign has now been exceeded at every stage, with a Command Paper on the process towards further powers just 25 days after the referendum; the conclusion of the Smith commission and agreement by all five of Scotland’s political parties before St Andrew’s day just 10 weeks after the referendum; and today, ahead of schedule, just 18 weeks after the referendum, the draft clauses that will form the basis of the next Scotland Bill.

Before I turn to our response to the draft clauses and the Command Paper laid before the House, I want to provide an absolute guarantee from the Labour Benches. As my right hon. Friend the Leader of the Opposition has made clear on a number of occasions, the powers agreed by Smith will be delivered, and the next Labour Government will include a new Scotland Bill in our first Queen’s Speech. Labour created the Scottish Parliament in 1999, we supported more powers for the Parliament in 2012, and we will create a powerhouse Parliament with these new powers when we are in government.

Labour made it clear at the outset of the Smith commission process that we wanted a settlement that, first, respected the outcome of the referendum, namely a strong Scotland inside a UK where we pooled and shared risk; secondly, moved the maximum possible power from Westminster to the Scottish Parliament; and, finally, did not make Scotland worse off.

We are satisfied that the Smith commission delivered that outcome and we can say with confidence that with these clauses we will be delivering home rule—the full powers that Scotland needs. As the Command Paper notes, the powers the clauses will confer on the Scottish Parliament will mean that it will control about 60% of spending in Scotland and retain about 40% of Scottish tax. That will make it the third most powerful devolved Assembly in the OECD.

Before I turn to the detail of the clauses, I wish to press the Minister on two areas that I hope he will address in his reply. The Command Paper makes explicit reference to the Barnett formula and the agreement of all five parties during the Smith commission to its continuation. Can the Minister provide any more clarity about how the adjustment to the block grant will take place and how discussions with the Scottish Government to agree that are progressing?

I also wish to press the Minister on an item on page 40 of the Command Paper, which reproduces the following commitment from Smith:

“MPs representing constituencies across the whole of the UK will continue to decide the UK’s Budget, including Income Tax.”

Given the Chancellor’s comments at the Treasury Committee on Tuesday, can the Minister provide an absolute reassurance that that part of the Smith agreement will be respected, as it is not addressed in the paper?

I now wish to turn to the detail and the precise powers that the clauses will confer specifically over job creation, tax and social security. The clauses confer full power over income tax and a number of other taxes. We welcome the clarity provided by the Command Paper on the areas to be devolved. We welcome the extension of powers over VAT, which go further than the proposals of the Smith commission, but will the Minister explain why that change was made?

On welfare, the clauses will transfer extensive new powers on the Scottish Parliament, including powers worth £2.5 billion for welfare spending and the powers to create new benefits. Will the Minister confirm that the clauses as drafted respect the spirit and the letter of the Smith agreement and allow the Scottish Government to create new benefits? Will he also explain the process that will now be undertaken to examine in more detail the consequential arrangements to adjust the Scottish block grant to reflect what will now be devolved to the Scottish Parliament?

On job-creating powers, my hon. Friend the Member for Glasgow East (Margaret Curran) has already raised with the Secretary of State, and at Scottish questions, our desire to see the job-creating powers of the Work programme passed to Scotland at the earliest opportunity. It continues to be our view that that could be achieved by using a section 106 order to transfer responsibility to the Scottish Government immediately. That would reduce any uncertainty about the effect of continuing contracts in Scotland and it would allow others to start to remedy the failure of this Tory Government’s Work programme in Scotland, which sees only one in five people into a job. Will the Minister consider again the introduction of those powers now?

Finally, I would welcome more clarity from the Minister on the devolution of the Crown Estate. Will he clarify the process that will be followed to determine the transfer scheme and how long it might take? Will he also explain how the Government will ensure that the Smith commission’s recommendation that the powers be further devolved to our island communities will be seen through? Many in our rural and island communities will want guarantees about the devolution of the Crown Estate and that the powers will be passed to the islands as both the UK and Scottish Governments promised during the referendum.

This is another milestone in Scotland’s home rule journey. The Smith agreement was the response to the call for change that we heard, and today one thing is clear: Scotland will have a powerhouse Parliament.

[David Mundell]

I very much welcome the hon. Gentleman’s commitment, and indeed that of his party both in Scotland and across the United Kingdom, to the implementation of the Smith commission proposals. The position could not be clearer: whichever party is in government after the next general election, the proposals will be taken forward in the Queen’s Speech.

The hon. Gentleman raised a number of issues. The Prime Minister, the Leader of the Opposition and the leader of the Liberal Democrats have made it very clear that the Barnett formula is here to stay. The discussions on the creation of the fiscal framework will have to take into account the additional revenue raised by the Scottish Parliament. It is very important for MPs from Scotland to make it clear to our colleagues that the Scottish Parliament’s additional ability to raise funds will not be in addition to the block grant that it receives, because an amount still to be calculated will be deducted from the block grant under the Barnett formula.

The hon. Gentleman raised the issue of VAT. The Smith commission clearly made a recommendation on the standard rate of VAT, and the Government feel that it is entirely consistent to apply the same recommendation to the lower rate—the 5% rate—of VAT. That will ensure that Scotland receives 50% of the revenue raised.

The hon. Gentleman raised several issues about the welfare proposals. We and the Scottish Government have established a joint welfare working group at ministerial level—I will co-chair it with Alex Neil, the Scottish Cabinet Secretary with responsibility for such matters—which will take forward some of the issues. I assure the hon. Gentleman that the Scottish Parliament will have full legislative responsibility for the Work programme. As I understand it—I will provide confirmation—my right hon. Friend the Secretary of State has already written to the hon. Member for Glasgow East (Margaret Curran) to set out why he and the Government do not believe that the section 106 route is the right way to transfer the programme. If the letter has not already been delivered, I will ensure that the hon. Gentleman receives a copy.

Of course we will proceed on the basis of good faith in relation to the Scottish Government and further devolution within Scotland. The hon. Gentleman will be aware that the Scottish Cabinet is coming to Dumfries on Monday, which will be a good opportunity for the Scottish Government to demonstrate that they are listening to people outwith the central belt of Scotland. I am sure that they will discuss the Crown estate, which is certainly an important issue in my constituency.

If I have not covered all the points made by the hon. Gentleman, I will write to him about those matters.

[Sir George Young (North West Hampshire) (Con)]

The coalition Government have moved with commendable speed to meet the aspirations of the Scottish people, and I welcome the statement. Does my right hon. Friend agree that the Government should now move with equal speed to meet the aspirations of the English?

[David Mundell]

As has already been made clear from the Dispatch Box, the proposals for Scotland are stand-alone proposals that will proceed whatever arrangement is reached for other parts of the United Kingdom. My right hon. Friend the Leader of the House has published a Command Paper setting out various options in relation to England, which I am sure will continue to be the subject of vigorous debate in the House.

[Mr Alistair Darling (Edinburgh South West) (Lab)]

I, too, welcome the statement, and the production of draft clauses exactly to the timetable promised during the referendum. May I press the Minister on one matter on which he conspicuously did not respond to my hon. Friend the Member for Dumfries and Galloway (Mr Brown)? The Smith commission recommended that all Members of the House would decide on the Budget, which is all very well and good. That appears to have been accepted in the Command Paper, but it is entirely inconsistent with what the Chancellor and the Prime Minister have said during the past few weeks. Does the Minister accept that any future reforms will have to be fair, but must not undermine the fiscal integrity of the United Kingdom? If they did so, we would end up with all the restrictions we see in the eurozone, which no one in this country—north or south of the border—wants.

[David Mundell]

Nobody in the House, with the exception of one party, wants to see the fiscal nature of the United Kingdom undermined in any way, and my right hon. Friend the Chancellor most certainly does not. He has made it clear that as we move forward with the different settlement in Scotland, there will be elements of the Budget that do not apply to Scotland. Clearly it is appropriate, as there is a debate about the governance of England, to debate that matter too.

[Sir Malcolm Bruce (Gordon) (LD)]

My constituents in Gordon overwhelmingly rejected independence and declared their support for the United Kingdom. They will certainly welcome the statement. However, they are concerned that it is the responsibility of the Scottish Government to provide devolution within Scotland. The people of Gordon feel extremely let down by the Scottish Government, who have diverted resources and powers away from them, leading to a crisis right across our public services.

There is also an abuse of the term “home rule”. Apparently, to the SNP it means everything except foreign affairs and defence, which means that it does not address the single currency, the single market or the single welfare system. In other words, it means independence. Nobody should be in any doubt that voting for the SNP is voting to break up the United Kingdom.

[David Mundell]

I certainly agree with the right hon. Gentleman’s final statement. We have to move the debate on, so that it is a debate about what the powers of the Scottish Parliament are used for, rather than a debate about powers, which always seems to be predicated on blaming someone else for the lack of action by the Scottish Government. I hope that today will be a watershed and that the debate in Scotland will be about what the Scottish Government are doing with the extensive powers the Scottish Parliament has and those that it is going to receive.

[Pete Wishart (Perth and North Perthshire) (SNP)]

How come the UK austerity parties are so far behind the curve when it comes to more powers for the Scottish people? The Scottish people thought that they were getting real home rule, as the right hon. Member for Gordon (Sir Malcolm Bruce) described it, or “almost federalism”, which is the phrase that was used. Instead, we have this veto-ridden document. Is not the only way the Scottish people will get the further powers they want to have more SNP MPs? That is why we are at 52% in the polls.

[David Mundell]

I could not disagree more with the hon. Gentleman, but he would not expect it to be otherwise. Some of the questions that he has raised today and on other occasions need to be addressed to John Swinney and Linda Fabiani, who were the SNP members of the Smith commission. If these powers were so important to them, why were they not deal-breakers in reaching the Smith agreement? Instead, they signed an agreement at 8 o’clock one night and at 8 o’clock the next morning, they set about deriding it. This agreement is what the people of Scotland voted for by a significant majority. More than 2 million people in Scotland voted for a Scottish Parliament with more powers, and that is what the draft clauses deliver.

[Mr Andrew Tyrie (Chichester) (Con)]

It is right to honour the vow and I warmly welcome the Minister’s announcement. Does not the big increase in devolved powers from this place to Scotland that is embodied in the announcement highlight the need finally to address the West Lothian question? It cannot be right that Scottish MPs should continue to vote on English-only issues and laws in such circumstances. The English and the Welsh need more than a say. Is it not necessary, in order to buttress the Union as a whole, that they have the power to decide whether such a measure is acceptable to them?

[David Mundell]

I absolutely agree with my hon. Friend, and I think that most people in Scotland would agree with his sentiments. However, it is always important to make it clear in such discussions in this Parliament, in case they are misrepresented, that this is a stand-alone package of measures that will be implemented regardless of where the debate in England, Wales and Northern Ireland goes.

[Mr Ian Davidson (Glasgow South West) (Lab/Co-op)]

May I ask the Minister about pensions and benefits? Will he confirm that, under the Smith commission’s proposals, although the pensions system is being reserved, which will provide a floor level for pensioner income in Scotland, things like the winter fuel payment are being devolved, which will effectively allow the Scottish Parliament to double pensioner incomes in Scotland, if it is willing to pay for it? Similarly, will he confirm that the Scottish Parliament will be able to increase every welfare benefit in Scotland through the use of discretion, should it wish to do so, because some benefits are being devolved entirely and those that are not being devolved will have a floor level set by the United Kingdom, meaning that it will be entirely up to the Scottish Government whether they wish to make the money available to double, treble or quadruple any of those benefit levels?

[David Mundell]

I agree with the hon. Gentleman. If he refers to pages 50 and 49 of the Command Paper, he will find a good summary of the benefits for which full responsibility will be devolved to the Scottish Parliament, and of the measures related to universal credit. Although universal credit will remain reserved, as was agreed by all five parties to the Smith commission, the housing element will be subject to Scottish Government engagement.

The hon. Gentleman is right that with their new powers, the Scottish Government will now have a responsibility and will need to explain whatever decisions they take to the people of Scotland.

[John Thurso (Caithness, Sutherland and Easter Ross) (LD)]

May I, too, commend the Government for publishing the clauses and making this statement? The Smith commission recommendations, if properly enacted, are a blueprint for home rule delivered, and the clauses will ensure that. However, the devil is always in the detail, and it will require good will to work through the process in the coming months and ensure that the recommendations are properly enacted. What will the Government do to ensure that there is good will from all parties in the process, so that we do not have a jam further down the line, which the Scottish people would never forgive?

[David Mundell]

I assure my right hon. Friend that I am personally committed to that good will, and the recent meetings that I have held with Alex Neil to discuss welfare matters, for example, have been extremely constructive. The Prime Minister is meeting the First Minister today, which I am sure will also be a constructive dialogue, and the Secretary of State is in almost constant dialogue with the Deputy First Minister, who has responsibility for constitutional matters. Scottish Government and UK Government officials also work extremely well together. I give my right hon. Friend the undertaking that we are committed to delivering not just the letter of the Smith commission proposals but the spirit of them.

[Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)]

The extensive income tax powers that are to be devolved to the Scottish Parliament will give Scotland the opportunity to make different decisions on taxation. The Scottish Labour party is committed to restoring the 50p rate of income tax for those earning more than £150,000 a year. Will the Minister join the Scottish Labour party in supporting that policy, putting some clear blue water between the Conservative party and the SNP, which refuses to support the restoration of the 50p rate?

--- Later in debate ---

[David Mundell]

I thought the hon. Gentleman was asking me to join the Scottish Labour party, which I understand I can do for just £1 at the moment. Although I do not seek to endorse any particular policy of the Scottish Labour party, I welcome a debate on these issues in Scotland. We need a debate on the use of the powers and the difference they can make in Scotland, not simply a debate on the powers themselves.

[Mr Alan Reid (Argyll and Bute) (LD)]

I congratulate the Government on delivering this significant package of powers ahead of schedule, which will bring about a powerful Scottish Parliament. Will the Minister confirm that the Government have completely rejected the submission that the SNP made to the Smith commission to replace the Barnett formula with disappearing oil revenues? It was revealed at a Scottish Affairs Committee hearing that if the black hole were made up purely out of income tax, it would mean a staggering 14p in the pound increase in Scottish income tax rates.

[David Mundell]

The Scottish Affairs Committee is to be commended for its work on the impact that the falling oil price would have on the figures given in the Scottish Government’s White Paper. My hon. Friend is quite right to highlight that black hole.

The position on the Barnett formula is quite clear: the Prime Minister, the Leader of the Opposition and the leader of the Liberal Democrats have made it absolutely clear that the Barnett formula will continue.

[Mr John Denham (Southampton, Itchen) (Lab)]

As a result of this statement it is much clearer what the governance of Scotland will be; it is much less clear what the governance of England will be, and which decisions will be retained at UK level. The paper produced by the Leader of the House before Christmas was inadequate and inconclusive. Is it time for a clear statement that considers all aspects of the governance of England, where power should lie, and how decisions should be taken?

[David Mundell]

It is to be welcomed that the referendum in Scotland and the Smith commission have brought about debate in England about governance within England, and that discussion is clearly ongoing. I do not accept the right hon. Gentleman’s comments about the Command Paper produced by my right hon. Friend the Leader of the House, as that is a significant part of the debate.

[Dame Anne Begg (Aberdeen South) (Lab)]

If 50% of the money spent by the Scottish Parliament will be funded by the Scottish Parliament, is it about time that an independent body, like the Office for Budget Responsibility, is set up in Scotland to ensure that spending is scrutinised properly? Is the Minister aware of whether the Scottish Government plan to publish a timetable of when the powers that they currently hold, or will receive, will be further devolved to local level?

[David Mundell]

The hon. Lady makes a good point, and I am sure that our counterparts will want to raise that issue in the Scottish Parliament to ensure that the Scottish Government set out a timetable for devolution. Of course a strong body—an equivalent to the Office for Budget Responsibility—is required, and I am sure that that will be discussed as we go forward with the fiscal framework.

[Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)]

Does the Minister accept that nothing in this decent and honourable document diminishes the standing of local government, given that local authorities deliver more, day by day, to ordinary people than the Scottish Parliament or even this House?

[David Mundell]

I absolutely agree, and I was appalled by the comments of Joan McAlpine MSP in relation to denigrating local government in Scotland. Local government in Scotland currently does an excellent job under very difficult circumstances. We need devolution within Scotland, not the ever-centralising nature of the current Government.

[Mr Mike Weir (Angus) (SNP)]

The Minister claims a substantial transfer of powers, but is it the case that many new powers, for example those regarding benefits or fuel poverty, remain subject to a veto by UK Ministers?

[David Mundell]

That is the hon. Gentleman’s almost inevitable interpretation. The position on consultation and working together is that the Department for Work and Pensions will continue to administer benefits and therefore clearly needs to work with the Scottish Government on that. The Scottish Government will have the capacity to take forward arrangements as they choose. [Interruption.] Perhaps we are already getting a flavour of what we will see continuing in Scottish politics—when the SNP does not deliver the promises on welfare that it makes to the people of Scotland, it will be somebody else’s fault.

[Pamela Nash (Airdrie and Shotts) (Lab)]

I remain concerned about some of the responses that the Minister has given to my hon. Friends, regarding MPs who represent Scottish constituencies voting with their colleagues across the UK on the Budget, including income tax. He said that there was a commitment to honour the wording and spirit of the Smith commission. The Smith agreement is explicit that that power will be retained, and many believe that that is necessary in order for Scottish people to be represented equally in this place with people across the UK. Will the Minister confirm whether the Conservative party will stick to the commitment in the Smith agreement and support Scottish MPs voting on the Budget, including income tax?

[David Mundell]

The hon. Lady obviously did not hear my response to the former Chancellor, the right hon. Member for Edinburgh South West (Mr Darling). As my right hon. Friend the Chancellor indicated earlier this week, the Budget will be framed in a different way after powers have been transferred to Scotland. It is wholly appropriate to hold a discussion and debate on matters that apply solely to England, or to England and Wales, about who makes decisions in that regard.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

I would like to press the Minister slightly further on the response he gave to my hon. Friend the Member for Airdrie and Shotts (Pamela Nash). At some stage the Budget has to be taken as a whole entity, because it has implications right across the UK. It was clearly the intent of the Smith Commission that all Scottish MPs would have a vote on that Budget. Will the Minister give a simple yes or no answer: will that now happen?

[David Mundell]

I made that very clear in my previous answers. What I welcome from both hon. Ladies is a willingness to engage in the debate on which MPs should vote on which matters. It is disappointing that the Opposition more widely have not been prepared to engage with the Command Paper and the debate instigated by my right hon. Friend the Leader of the House. Let us have that debate on the governance of England and let us all make our contributions to it.

[Mr William Bain (Glasgow North East) (Lab)]

Can the Minister confirm that, with the proposals before the House today, if the Scottish Parliament chooses to introduce discretionary payments, which would effectively top up even reserve benefits such as unemployment benefit or employment and support allowance, that will be a decision purely for the Scottish Parliament and that this Parliament does not have a veto? Does he agree that these powers would make the Scottish Parliament one of the most extensive welfare Parliaments anywhere in the world?

[David Mundell]

Yes.

[Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)]

I thought my ears were deceiving me when I heard the Minister say that there would be powers for gender quotas in public bodies in Scotland. That is excellent news, and something from which the rest of the UK would benefit. A popular measure is the devolution of air passenger duty, which is very important for Prestwick airport and has the potential to help it tremendously with the problems it has been having. Will the Government consider bringing that forward before the general election and giving those powers to Scotland now?

[David Mundell]

I certainly respect the hon. Lady’s championing of both gender issues and Prestwick airport. It is not practical, within the time scale of Parliament ahead of the general election, to introduce the necessary procedures to transfer air passenger duty. We are pressing ahead on a very, very tight time scale with the 16 and 17-year-old vote. I hope that as soon as we have a new Parliament, post general election, we will expedite all the measures in the clauses and have them in legislation as soon as possible.

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

Will the Minister confirm whether the clauses relating to rail mean that the Scottish Government will no longer be required to put rail services out to tender? Will he agree to meet me, and any other interested MP who wishes to see the railways in Scotland brought back into public ownership, to discuss whether that will be possible under the forthcoming legislation?

[David Mundell]

It will certainly be possible for the franchise in Scotland to be let to a public sector organisation. That was the basis of the agreement on the Smith commission to which the hon. Lady’s Labour colleagues signed up.

[Fiona O'Donnell (East Lothian) (Lab)]

May I say to the House that we will not hear MPs from the Scottish Labour party bleating about the fact that the Smith agreement went beyond our original submission, because we know how to put country before party.

The proposals give powers to the Scottish Parliament to build a fairer Scotland, an issue that was at the heart of the referendum debate. I want to ask the Minister about a particular aspect of that agenda—access to work support grants. I wrote to the Secretary of State for Work and Pensions about that at the beginning of December. There is no certainty in Scotland on how the assessment takes places—there are inconsistencies. Is the Minister proposing that support grants should be part of the settlement?

[David Mundell]

I will certainly speak to my right hon. Friend the Secretary of State to look at the position of the correspondence he entered into with the hon. Lady.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

The Government are currently rolling out the personal independence payment benefit throughout the UK, but PIP benefits will, of course, be devolved to the Scottish Parliament under these proposals. Given that we all know that the PIP system is already causing chaos and misery to many of our constituents, do the Government propose that the PIP benefits should continue to be rolled out in Scotland when, in a year or so, the matter will be devolved to the Scottish Parliament, which might want to do something different?

[David Mundell]

I have two points in response. First, that issue will be discussed at the first meeting of the joint ministerial group. Secondly, whatever happens to the current PIP regime, as we move forward on benefits, we need to have a clear idea of what the Scottish Government are proposing. The transition will be affected by what we are transitioning to, so on the devolution of benefits, it is very important for the Scottish Government to come forward with their proposals. None of us wants to see a UK system being switched off without a Scottish system in place.

[Sheila Gilmore (Edinburgh East) (Lab)]

Following on from that, one important thing that could be done over the next few months would be to get the involvement of many organisations—voluntary organisations, charities and so forth in the disability and carers sector, for example—in framing some of these ideas. Can the Minister tell me how these organisations are going to be involved right from the start, because I believe that they will have important insights into this work? They need to be convinced that this will give them—I believe it will—an ability to shape a much fairer welfare system.

[David Mundell]

The hon. Lady makes an excellent point. I have already discussed that with the Scottish Government, and it will form part of the agenda for the first meeting of the joint ministerial welfare group.

North Sea Oil and Gas (Employment)

David Mundell Excerpts

Tuesday 20th January 2015 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Streeter. I pay tribute to the hon. Member for Aberdeen North (Mr Doran) not only for securing the debate but for his well known support of the sector and, as his time in Parliament draws to a close, for his contribution to politics in the north-east over many years. I welcome his considered contribution. Many other Members also made valuable contributions. I apologise for the absence of the Minister for Business and Enterprise, my right hon. Friend the Member for West Suffolk (Matthew Hancock), who is currently overseas and would otherwise have responded to the debate.

[Mr Doran]

The Minister is apologising for the absence of his right hon. Friend; I should have noted the absence of my hon. Friend the Member for Aberdeen South (Dame Anne Begg), who is with my right hon. Friend the Member for East Renfrewshire (Mr Murphy) in Aberdeen, but would otherwise have been here.

[David Mundell]

I echo the comments of all contributors, who pointed out the importance and timeliness of the debate, given the challenges faced by companies operating in the North sea and all those who work in the sector in the United Kingdom; that was emphasised by my hon. Friend the Member for Waveney (Peter Aldous) and the hon. Member for North Tyneside (Mrs Glindon).

The Government are committed to the long-term future of the sector in the North sea. We recognise that the sustained fall in oil prices presents real challenges for the sector. Announcements of job losses, such as those we have heard about this afternoon, are a real concern and particularly affect Aberdeen and the north-east. The effects will be felt not only in the north-east of Scotland and by big international companies, but by the hundreds of small and medium-sized businesses that are an integral part of the supply chain. Those businesses work across the UK to service the sector, and they play a role in the whole of the UK economy.

We are committed—I hope that the hon. Member for Glasgow North West (John Robertson) accepts this—to working in partnership with others. I welcome the tone of the contribution of the shadow Scottish Secretary, the hon. Member for Glasgow East (Margaret Curran). We are committed to working with the Scottish Government, local authorities and the industry to provide all we can for those affected by job losses. I will pursue the issue that the hon. Member for West Aberdeenshire and Kincardine (Sir Robert Smith) raised about the Department for Work and Pensions. My colleague, the Secretary of State for Scotland, has committed to participate in the First Minister’s jobs taskforce, which was announced last week, and the Aberdeen city council’s oil and gas summit in February.

[Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)]

I apologise to the Minister and the House for not being at the earlier part of the debate; I was at a Committee speaking about, among other things, the issue of autism.

As the Minister was referring to the supply chain and jobs that link to the wider oil industry, may I remind him that in my constituency 30,000 people work in the Bellshill industrial park, and many of them fit that description? All of them are asking for honesty and transparency about the flexibility of the oil market and the oil industry.

[David Mundell]

I certainly take that point on board; it reinforces the fact that this issue is resonant not only in the immediate area of Aberdeen, but in the whole of Scotland and the rest of our United Kingdom.

At the PILOT meeting in London last Tuesday, industry leaders expressed real concern, but recognised the need and opportunity to work collectively with Government to introduce a range of efficiency measures that would help them through the downturn and ensure that the industry was stronger in the longer term. The right hon. Member for Gordon (Sir Malcolm Bruce) made the point strongly that the industry could emerge fitter from this time, without the necessity for sustained job losses.

The sector is a vital economic asset—one that supports growth and investment and one that we will do all we can to support. There are other events in Parliament today, one of which was the Chancellor’s appearance before the Treasury Committee. Given the signal that was asked for, he has made it very clear that he will take further steps in the Budget. As we heard in the debate, Sir Ian Wood and others in the industry have indicated that they think the Budget is the right time to take such steps. I do not think that that message could be clearer. I will undertake to convey the comments and thoughts of everybody who took part in today’s debate directly to the Chancellor, and I am sure that he and the Prime Minister will continue to engage directly with the industry.

The Government have already taken action in a number of areas. Our recent headline cut of the supplementary charge from 32% to 30% sent an important signal, as some contributors have mentioned, that the North sea is open for business. Last year, we commissioned Sir Ian Wood, one of the world’s foremost industry experts, to examine how we could maximise the North sea oil and gas industry economic recovery. Without being unduly partisan, I am very pleased to hear Sir Ian being lauded again for his contribution to the oil industry; only a few months ago, some people—I do not think they are in this room—were deriding him because he said he did not feel independence for Scotland was in the industry’s best interests.

On this matter, Sir Ian’s response is twofold: get the right regulator in place and get the right fiscal regime. The Government have moved fast to implement his recommendations. We have set up the regulator in the form of the Oil and Gas Authority. It will be up and running this year and based in Aberdeen, under the expert stewardship of Andy Samuel. Since starting in his role as chief executive at the beginning of the year, Mr Samuel has been working at pace to ensure that the authority will be ready to start operating effectively by the beginning of April.

Last week, in light of the recent falls in global oil prices, the Secretary of State for Energy and Climate Change asked Andy Samuel to accelerate work with industry to identify key risks to oil and gas production in the UK continental shelf and what further measures might be taken by Government and industry to mitigate them. In addition, we have carried out the oil and gas fiscal review to examine how we can build on the success of our existing field allowances and put in place a regime that is internationally competitive.

The oil and gas industry has acknowledged that our system of allowances has been transformational in incentivising North sea investment. Allowances were directly responsible for £7 billion of 2013’s record-breaking £14.4 billion investment in the North sea. That investment has supported more than 50,000 jobs in the United Kingdom. At the autumn statement, we announced a new allowance for high-pressure, high-temperature oil and gas projects. That allowance will reduce the tax rate on a portion of the company’s profits from 60% to 30%.

Last year, we also announced further reforms to the fiscal regime—reforms to generate investment. We will be introducing a basin-wide investment allowance to simplify and replace the existing system of offshore field allowances over time. We are also taking action to encourage companies that are already investing by extending the ring-fence expenditure supplement from six to 10 years for offshore oil and gas activities, helping the short-term cash flow of companies looking to invest.

Our third area of reform is exploration, where access to good-quality seismic information has been an issue for the industry. Our commitment to provide financial support for seismic surveys in under-explored areas of the UK continental shelf will help the situation.

We want to reward investment in the North sea. As the UK’s economy grows and our recovery strengthens, our direction of travel will be to implement further measures to increase investment. Of course, decommissioning also has to be considered; in the coming decades, that will be increasingly important as the UK continental shelf moves into the decommissioning phase ahead of many other basins. The challenge here is that the North sea, owing to its maturity, will often have to be the site of pioneering methods. Industry will need to develop new operating models and bring in skills and expertise. However, the opportunity is immense. Get this right and we will develop highly valuable—and saleable—expertise here in the UK and reap great rewards down the line. It will be vital to attract new entrants and specialists into the basin to take on decommissioning work.

[Sir Robert Smith]

The Minister is making an important point about the value of decommissioning, but we really want that to be as far away in the future as possible. The crucial thing is to sustain production. I would be grateful if he took the message back to the Treasury that when people drill for oil, they take a big risk, and if they find something, they would like a larger share of what they find as a reward. The supplemental tax needs serious review.

[David Mundell]

I think I had set out in my initial remarks that the issue is a combination of ensuring that what future production there can be is maximised and of taking advantage of the opportunities that may arise through decommissioning.

I want to address a point that the hon. Member for Aberdeen North raised on health and safety and the ageing infrastructure. As many of the UK’s onshore installations are working beyond their original design lives and have been exposed to a harsh environment and heavy usage, it is absolutely essential that asset integrity is maintained. Asset integrity is critical to effectively managing and controlling major accident hazards, protecting the work force and maintaining production. Maintaining such arrangements, even during a period of low oil prices, is essential for the two key reasons that he set out: first, to comply with legislation to manage major risk hazards; and secondly, to maintain these assets for use in the future. I assure him that the Health and Safety Executive will continue to inspect thoroughly asset integrity issues and raise those with the industry at every opportunity to ensure that regulatory standards are not compromised.

It is by bringing a package of measures together and by working together—I think that is the sentiment of this afternoon’s debate—that we will maximise the potential of the industry and support vital jobs across the sector and the supply chain in the north-east of Scotland, as well as in areas such as East Anglia, to which my hon. Friend the Member for Waveney drew attention so adroitly. We have been talking about those jobs today; it is because the UK has such a large and diverse economy, of course, that we are able to commit to these long-term support measures.

We can deal with the volatility of oil prices and continue to provide the stable regime that is so important to the industry. The hon. Member for Glasgow East drew our attention to the many predictions that have been made about oil prices, but it is in a country on the scale of the United Kingdom that changes can be sustained. On that basis, having listened to today’s debate and set out the measures that the Government have taken, I conclude my contribution.

Oral Answers to Questions

David Mundell Excerpts

Wednesday 14th January 2015 Commons Chamber

[Ann McKechin (Glasgow North) (Lab)]

2. What change there has been in the level of child poverty in Scotland since 2010; and if he will make a statement.

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

Estimates of the number and proportion of children in relative low income are published in the National Statistics households below average income series. Those estimates are available for each financial year up to 2012-13, and they show that since 2010 the number and percentage of children in relative low income in Scotland have remained at 200,000 and 17% respectively.

[Ann McKechin]

It is incredible how complacent the Government are about the fact that child poverty in Scotland is increasing. According to the Institute for Fiscal Studies, it is set to increase by a further 100,000 by 2020 if the current Government’s policies are followed. Is it not about time that both the UK and Scottish Governments, who seem to be relaxed about that increase in poverty, got together and worked out how we can effectively use policy on distribution so that the poorest can benefit?

[David Mundell]

I am somewhat surprised at the hon. Lady taking the nationalist line on the IFS figures. I completely reject those figures about prospective increases in child poverty in Scotland. This Government are not complacent, but what our policies have achieved are a reduction in unemployment, an increase in employment and wage increases outstripping inflation. Work is the best way out of poverty, and that is what this Government’s policy is.

[Mark Menzies (Fylde) (Con)]

Does the Minister agree that with the number of workless households at its lowest level for a generation across the UK as a whole, the best way to help tackle child poverty is to get people back into work?

[David Mundell]

My hon. Friend is absolutely right, and a key figure that demonstrates our ability to deal with the issue is the record number of women in work in Scotland. I would have thought that politicians in all parts of the House would welcome that.

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

The Child Poverty Action Group says that more than one in five children in Scotland are living in poverty, which is far higher than in many other European countries, and that the number is increasing as the days pass. Can the Minister explain why child poverty is continuing to increase under his Government?

[David Mundell]

I do not accept the premise of an increase. The Scottish Government’s most recent report stated that we should not take a snapshot and should instead look at indications over a longer period. I agree with the hon. Member for Glasgow East (Margaret Curran) on one point, however: we have to see closer working together by the United Kingdom Government, the Scottish Government, local authorities and the third sector. That is the best way to achieve a reduction in child poverty.

[Dame Angela Watkinson (Hornchurch and Upminster) (Con)]

3. What assessment he has made of the potential effect on businesses in Scotland of the removal of the requirement for employers to pay national insurance contributions in respect of employees under the age of 21 and apprentices under the age of 25.

--- Later in debate ---

[Mr Mike Weir (Angus) (SNP)]

4. What steps the Government are taking to maintain existing Scottish rail services on and connected to the east coast main line.

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

The new deal the Government have signed for the east coast main line franchise with Virgin and Stagecoach will provide new services, new state-of-the-art trains with more capacity, and reductions in journey times.

[Mr Weir]

I thank the Minister for that answer. He will know that the east coast main line is an important link through my constituency, but it has been reported that the new franchisee intends to drop one station south of Edinburgh from the line, raising fears that other stations may be dropped from the new service. Will he give an absolute assurance that, after the change of franchisee, services on the east coast main line will continue to stop at all the stations currently used?

[David Mundell]

I hoped that the hon. Gentleman and his colleagues would welcome the new franchise with its services to Falkirk and Stirling. There is no suggestion that there will be any reduction in services, but I am happy to make further inquiries for him on that point.

[Sir Malcolm Bruce (Gordon) (LD)]

Will the Minister acknowledge that to increase the reliability, speed and efficiency of the service between Edinburgh and Aberdeen on the east coast main line, we need an upgrade of that line, not least the ending of the single track south of Montrose? What steps can he and/or the Scottish Government, or the two together, take to ensure that investment?

[David Mundell]

My right hon. Friend will be aware that we actively engage in discussions with the Scottish Government on important strategic transport projects that impact the whole United Kingdom, such as the Forth crossing. I am sure that colleagues in the Scottish Government will have heard his points, and I will certainly raise them further with them.

[Fiona O'Donnell (East Lothian) (Lab)]

The Minister said that my constituents can have confidence that there will be no reduction in the service on the east coast main line, but can he explain why the Minister at the Department for Transport who has responsibility for rail franchises said that the service at Dunbar was to be reduced?

[David Mundell]

I think the hon. Lady was not listening to my previous answer. I undertook, on behalf of the hon. Member for Angus (Mr Weir), to investigate what has been said previously about the rail link north of Edinburgh, and I will also take up her point.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

It is important that the train services that are meant to run actually do so. The Minister will know that services on the east coast main line were severely disrupted on 27 December and two days later as well. Will he meet colleagues to try to ensure that when there are disruptions on the line—they were no fault of East Coast, by the way—they are dealt with more effectively, passengers are given real alternative information, and the system is made more resilient to such disruption?

[David Mundell]

As a Member who represents a significant stop on the west coast main line at Lockerbie, I share the hon. Gentleman’s concerns about such disruption. I would be happy to meet him and any other colleagues who share those concerns.

[Mr Alan Reid (Argyll and Bute) (LD)]

5. What assessment he has made of the adequacy of provision of broadband and mobile phone coverage in rural Scotland.

--- Later in debate ---

[Pamela Nash (Airdrie and Shotts) (Lab)]

6. What discussions he has had with his ministerial colleagues on job losses in Scotland resulting from City Link entering administration.

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

It was deeply regrettable that City Link went into administration over the festive period, particularly for its employees and contractors. My right hon. Friend the Business Secretary spoke regularly with the unions to discuss the situation, and our focus now is on supporting those made redundant. The Department for Work and Pensions has been liaising with its counterparts in the Partnership Action for Continuing Employment service to ensure that support is available to those made redundant in Scotland.

[Pamela Nash]

Many people lost their jobs at City Link’s Eurocentral depot in my constituency. I have been struck by the fact that not only direct employees but many so-called self-employed subcontractors lost their jobs. In reality, the latter were solely employed by City Link and had worked there for decades. They have been left not just without redundancy payments but with tens of thousands of pounds of debt. What are the Government doing to ensure that bogus self-employment is tackled and that this never happens again?

[David Mundell]

As the hon. Lady will be aware, the administrators will provide a report to the Insolvency Service on what happened at City Link during the period immediately before the redundancies and administration were announced, and we will obviously reflect on that. I take on board her point about self-employed contractors, and I will raise that directly with DWP colleagues.

[Margaret Curran (Glasgow East) (Lab)]

When I met workers from City Link this week, they told me they found out from the media on Christmas eve that their company was closing, and the redundancies were confirmed on Hogmanay. This is an appalling situation, and no worker should be treated in such a way. It is too late for those workers, but will the Minister ensure that his Government conduct a full and proper inquiry into the circumstances that led to the failure at City Link, so that workers can never be treated in that way again?

[David Mundell]

As the hon. Lady will have heard me say, the administrators will provide a report to the Insolvency Service. The Government have demonstrated, in their action over Comet, that if such a report highlights practices that should be investigated, they will be.

[Lorraine Fullbrook (South Ribble) (Con)]

7. What the next steps are for implementation of the Smith commission proposals.

--- Later in debate ---

[Mike Crockart (Edinburgh West) (LD)]

8. What discussions he has had with the Minister for culture, communications and creative industries on how effectively the Government are protecting vulnerable consumers in Scotland from nuisance calls.

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

I commend my hon. Friend on his work in recent years on this serious issue. Tackling this problem is a priority for the Department for Culture, Media and Sport, and I understand that the Minister with responsibility for culture, communications and creative industries will meet him later today to discuss the matter.

[Mike Crockart]

Over the last two years, trials run by councils and trading standards officers have installed call blockers in the homes of 400 older and vulnerable Scots, blocking more than 100,000 nuisance calls, improving their quality of life and protecting them from becoming the victims of scams. Does the Minister agree that the time for pilots is over, as the technology is proven, and that we need to establish a national scheme to protect 300,000 Scots rather than just 300?

[David Mundell]

I agree with my hon. Friend that this is an important issue. The pilots have been necessary to test the technology involved. I am sure he will be able to make that very point to the Minister from the Department for Culture, Media and Sport when he meets him later today.

The Prime Minister was asked—

Oral Answers to Questions

David Mundell Excerpts

Wednesday 2nd July 2014 Commons Chamber

[Ann McKechin (Glasgow North) (Lab)]

2. What steps he is taking to incentivise employers in Scotland to pay the living wage.

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

The Government support businesses that choose to pay the living wage, where it is affordable and does not cost jobs.

[Ann McKechin]

The Minister will be aware that many people in Scotland have started the holiday season and packed their bags, and many will be visiting the beautiful islands of Scotland, but last week the National Union of Rail, Maritime and Transport Workers reported that foreign-resident seafarers who are working on the ferries are being paid as little as £2.35 an hour. That is a disgrace to Scotland, and I urge the Minister to use his offices to work with the Scottish Government to persuade the ferry companies to pay not only the minimum wage but a living wage to every single one of their workers.

[David Mundell]

I most certainly take on board what the hon. Lady says and I will make representations in that regard. I am sure she welcomes the fact that earlier this month the UK Government published a list of employers who had not paid the minimum wage. Unfortunately, two of them were in Scotland.

[Mike Crockart (Edinburgh West) (LD)]

Mr Speaker, I know that you will be happy to hear that in May I employed an apprentice in business administration in my office and committed to paying her the living wage. Does the Minister agree with me that all MPs’ offices and Government Departments should set an example and move as quickly as possible to being accredited living wage employers?

[David Mundell]

The hon. Gentleman sets a good example, and certainly in apprenticeship schemes offered by Members of Parliament, I support the action he has taken.

[Mr William Bain (Glasgow North East) (Lab)]

14. Seven out of 10 young people in Scotland who are unemployed are applying for benefit for the second time. Is that not testament to the fact that there are simply not enough secure jobs for them that pay the living wage? Why will this Government and their equally bad counterparts in Edinburgh not use the public procurement powers available to them to ensure that every Scottish young person gets the living wage?

[David Mundell]

I would have thought that the hon. Gentleman would welcome the fact that the number of those in the 16 to 19-year-old category in Scotland who are out of work has fallen by 4,000. Work is the way out of poverty, and that is what this Government are encouraging.

[Robert Halfon (Harlow) (Con)]

Does my hon. Friend not agree that the best way to achieve the living wage in Scotland and elsewhere in the country is by continuing to take millions of low earners out of paying income tax altogether?

[David Mundell]

I absolutely agree. Tens of thousands of Scots have benefited from the fact that we have raised the personal allowance. Roughly two thirds of those on the minimum wage are now paying significantly less tax than they were when this Government came to power.

[Mr Russell Brown (Dumfries and Galloway) (Lab)]

I know the Minister recognises that payment of the living wage will ease the pressures of the cost of living that many households experience, but in view of his recent admission to the Scottish Parliament’s Welfare Reform Committee that his Government’s benefits sanctions and welfare reforms have contributed to the increase in the number of food bank users, will he now apologise?

[David Mundell]

What I think politicians should apologise for is making the poor and most vulnerable into political footballs. Poverty is a scourge in our country, not an opportunity for a press release.

[Mr Speaker]

Order. In case the House is not aware, I can inform colleagues that the House of Commons has received its accreditation from the Living Wage Foundation.

--- Later in debate ---

[Jim McGovern (Dundee West) (Lab)]

4. What assessment his Department has made of the effect of the regional air connectivity fund on Scotland.

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

The regional air connectivity fund was announced by the Chief Secretary to the Treasury last year and was doubled to £20 million in the Budget. It has already been successful in securing the air link between Dundee and London, a vital support for economic growth in the hon. Gentleman’s great city.

[Jim McGovern]

I thank the Minister for that answer. Some £2.8 million came from the UK Government to retain the air link between London and Dundee. Is that not just one more example, albeit a crucial one for Dundee, of why Scotland is stronger as part of the UK?

[David Mundell]

I absolutely agree. The air connectivity fund is a good example of the UK Government working to support economic development across all the nations and regions of our United Kingdom.

[Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)]

May I ask the Minister, on behalf of my hon. Friend the Member for Argyll and Bute (Mr Reid) and myself—this is not just a parliamentary pincer movement; it is close to the Secretary of State’s heart, and I am assured that he does have a heart, at least on Wednesdays—about Islay airport and Broadford airport on the Isle of Skye? They could both benefit if that excellent scheme were extended in conjunction with the Scottish Government: in the case of Islay, because it lacks a public service obligation and wants more commercialism; and in the case of Broadford, by re-establishing passenger links. Will he give that his full support?

[David Mundell]

I will most certainly take on board what the right hon. Gentleman says on his behalf and that of his colleagues. I am sure that everybody would welcome the opportunity to fly over the sea to Skye.

[Mr Ian Davidson (Glasgow South West) (Lab/Co-op)]

Does the Minister agree that those who are using that fund to fly from London to Dundee later this week in order to see the launch of the aircraft carrier will be able in two different ways to see the strength of the United Kingdom?

[David Mundell]

Absolutely. The hon. Gentleman will have heard the Secretary of State highlight the importance of the flotation of the aircraft carrier on Friday, which will be a very important moment not only for Scotland, but for our whole United Kingdom.

[David Mowat (Warrington South) (Con)]

5. What assessment he has made of the potential effect of Scottish independence on energy flows between Scotland and the rest of the UK.

--- Later in debate ---

[Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)]

7. What assessment he has made of the effects of the distribution of housing benefit in Scotland.

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

In recent months, I have met every local authority in Scotland to discuss a wide range of issues, including housing benefit.

[Mr McCann]

A report by my trade union, the GMB, shows that huge sums of housing benefit are paid to company landlords in Scotland. Bearing in mind the Secretary of State’s earlier answer, will the Minister meet me to discuss how we can bring together the UK, Scottish and local governments to ensure that we get best value for housing benefit and that we can create new houses and new jobs, rather than fill the pockets of company landlords?

[David Mundell]

I would certainly be happy to meet the hon. Gentleman, with a view to convening such a meeting.

[Mr Alan Reid (Argyll and Bute) (LD)]

I want to thank the Government for recognising the extra costs of living in remote rural areas and giving councils such as Argyll and Bute extra money to give discretionary housing payments to their tenants. I hope the Government will continue to give extra money to such councils in future years.

[David Mundell]

The hon. Gentleman will know that I wrote to the Deputy First Minister of Scotland with an offer to executively devolve the power to Scottish Ministers to set the statutory cap on discretionary housing payments in Scotland. That offer has been accepted and we are working constructively with the Scottish Government to take it forward in relation not just to rural areas, but to all councils in Scotland.

[Michael Connarty (Linlithgow and East Falkirk) (Lab)]

Will the Minister intervene with the Department for Work and Pensions so that we can have a system where someone who is sanctioned and taken off benefits when they have an appeal does not lose their housing benefit until the appeal is heard? Once the appeal is heard, they get their money back, but they then have the problem of finding that they are in debt to the local council. Can we not have a system that is sensible and fair to people who are sanctioned by the DWP?

[David Mundell]

I certainly take note of what the hon. Gentleman says, and I would be happy to meet him to discuss it further.

The Prime Minister was asked—

Trade and Investment in Scotland

David Mundell Excerpts

Tuesday 24th June 2014 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Hollobone. I know from your frequent appearances at Scottish questions that you take a keen interest in Scotland. I congratulate the hon. Member for Glasgow North East (Mr Bain) on securing the debate, on an important subject. The Government’s policy on trade and investment is a key building block of our growth strategy, and that holds as true for Scotland as it does for the whole UK. I noted the hon. Gentleman’s comments on access to finance and will convey them to my colleagues in the Department for Business, Innovation and Skills and the Treasury. I share his concerns about what a yes vote would mean for our membership of the EU and will touch on that later.

When it comes to international trade and investment, as part of the United Kingdom Scottish businesses currently enjoy the best of both worlds—the local expertise of the Scottish Government’s trade and investment agency Scottish Development International, plus the international reach and reputation of the UK and UK Trade & Investment. In Scotland, UKTI works closely with Scottish Development International, which delivers trade services on the ground to local Scottish businesses and organisations. Scottish companies have access to both UKTI services and those provided by SDI. As part of our commitment to ensure that that close working relationship continues to deliver the best for Scottish exporters, in autumn 2012 the then Secretary of State for Scotland asked Brian Wilson, the former Scotland Office Minister, to conduct an independent review of support for Scottish exporting. His report was published last month.

The Wilson report identified many of the positives for business that come from Scotland’s being part of the UK, including the value that Scottish businesses place on the work of SDI and UKTI as a whole. The report suggests, however, that all agencies offering support to exporters need to work together better to deliver a seamless service to businesses, if they are to maximise success. The Government will study the recommendations to help us consider how best to do that. That is part of the UK Government’s continuous work to get the best from the services that they provide to business.

Of course, within the UK we currently benefit from a fully integrated open market. As the Wilson report says,

“it is critical to Scotland’s exporters—including those who currently sell to the rest of the United Kingdom—that their interests, such as having a fully integrated regulatory system and being border-free, are at the forefront of that debate.”

The UK Government have this week delivered to every household in Scotland a booklet entitled, “What staying in the United Kingdom means for Scotland”. There are sections headed, “By staying in the United Kingdom, Scotland’s public services are more affordable” and “By staying in the United Kingdom, your money is safe and goes further.” In the section entitled, “By staying in the United Kingdom, Scotland has a strong voice in the world”, we summarise something highlighted in the Wilson report:

“Companies based in Scotland have access to UKTI’s network of more than 1,200 staff”—

in 169 offices—

“in over 100 overseas markets working to support UK businesses. This is part of the UK’s wider diplomatic and consular network of over 220 locations, which also is able to help UK businesses, including those from Scotland”.

The Scottish Government propose a much smaller network, a third of the size that the UK currently has. That would be a major decrease in the presence and impact overseas that Scotland exerts as part of the UK. Yet they suggest that independence will be good for Scotland’s voice in the world. In their passion for independence, SNP leaders will say anything to make it sound easy, but as I am sure the Scottish people know, if it sounds too good to be true, it usually turns out to be so.

Last year, UKTI helped almost 2,000 firms in Scotland to export. Let us take one example. Exports are vital to the success of Scotland’s impressive food and drink sector, which the hon. Gentleman rightly highlighted. Cutting overseas support on this great scale would be a backward step for that industry. Together we can sell our products and services to the world more effectively against international competition. UKTI also works closely with UK Export Finance, which makes doing business overseas both more accessible and safer for Scottish firms by offering trade finance and insurance in case an overseas partner defaults. The Scottish Government have no plans to match that service, despite the fact that it can help to reduce the risk for Scottish firms as they do business overseas by spreading the risk across the broad shoulders of the United Kingdom.

On inward investment, UKTI promotes the whole of the UK overseas to potential foreign investors. That is another example of Scotland getting the best of both worlds, because, in addition, the Scottish Government and SDI promote the individual benefits of Scotland. UKTI helped to land three quarters of the inward investment projects that generated 13,500 jobs in Scotland last year. Our GREAT campaign has contributed to that, promoting businesses, tourism and education in Scotland, Wales, England and Northern Ireland. We are looking to make that work even more successful by making the most of the international focus that will be on the hon. Gentleman’s city for the Commonwealth games this summer.

The UK Government are working both with the Scottish Government on a joint international business conference to be held during the games period and through the British business house, to be based in Glasgow city chambers. As the hon. Gentleman knows, that is a very impressive venue, and we are most grateful to the leader and members of Glasgow city council for their support of that venture. UKTI will be using those events to promote and support British businesses, both in Scotland and across the whole UK.

Looking at trade policy more widely, in the spirit of Adam Smith, we can use our influence to push for free trade in the wider world. I noted carefully the hon. Gentleman’s comments about the WTO. I did not know about the minimum period that it had taken a new member to enter that organisation and I am very glad that he got that on the record, because, as he knows, those of us taking part in debates in Scotland about separation are often told that everything will happen seamlessly and automatically. To have a tangible example is most helpful.

The UK is using its global reach to lower market barriers and promote Scottish produce overseas. Whisky is a prime example. The UK is working to open markets and reduce tariffs on Scotch all around the world. Last year, we worked with the whisky industry to bring down barriers in 12 countries. As the chief executive of the Scotch Whisky Association said in its annual review,

“we rely on effective support from government in our overseas markets...The Scottish Government White Paper envisages a network of 70 to 90 overseas missions, but we export to around 200 markets. A diplomatic network with the necessary geographic footprint, expertise, and influence...will continue to be essential.”

As the hon. Gentleman said, a particular concern of the Scotch whisky industry is the status of the agreements currently in place, particularly with countries such as India and China. What would the status of those agreements be in the hiatus period between Scottish independence and Scotland’s full membership of the EU, or would they have to be negotiated from scratch? That is of significant concern to the industry and, as with so many aspects of the independence debate, no answers are forthcoming from those who propose separation.

An independent Scottish state would face tough choices about its international priorities. It would be a lengthy, expensive process for Scotland to set up its own diplomatic, consular, trade and other international services— a support structure the UK already has in place—to work for its businesses and nationals all over the world. The argument is not whether Scotland could do so in due course; no doubt it could. The argument at the heart of our referendum campaign is whether it would be better for Scotland to do so or to continue to work in the effective way provided by the UK’s diplomatic, consular and trading arrangements.

The most recent economic analysis shows that Scotland’s economic recovery as part of the UK is going strong. The Fraser of Allander Institute notes that the Scottish economy has been growing for seven consecutive quarters and that the growth rate rose at 1.6% throughout 2013, while the Scottish ITEM Club has revised its forecast for Scottish economic growth upwards by 0.7 percentage points and now expects the Scottish economy to grow by 2.4% this year.

As the hon. Gentleman will know, in the past the Scottish Government have placed a lot of weight on exporting to China and on the views of the Chinese Government. Recently, however, they do not seem to be so much in agreement with the Chinese Government, perhaps because the Chinese Premier, when asked about the referendum on his visit to the United Kingdom, said that he wanted a “united United Kingdom”. I think that that sums it up well. He is the latest in an ever-growing list of world leaders who have made it clear how much rests on the referendum.

We want the best for Scotland. The Government and the people of England, Wales and Northern Ireland believe that Scotland is better off in the UK and that the UK is better off with Scotland in it. We do not need to go through a painful separation. As a United Kingdom, we have the best of both worlds, working together to help international trade and investment in Scotland to thrive. For many of the reasons that the hon. Gentleman has set out in this important debate, we wish and need to remain together. That is why, for reasons of international trade as well as a host of others, I will be urging my fellow Scots to say “No thanks” on 18 September.

Question put and agreed to.

Oral Answers to Questions

David Mundell Excerpts

Wednesday 7th May 2014 Commons Chamber

[Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)]

9. What discussions he has had with his ministerial colleagues on the effects of housing benefit changes in Scotland.

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

I have had regular discussions with ministerial colleagues about the effect of housing benefit changes in Scotland, and in particular about the application of discretionary housing payments to those affected by the removal of the spare-room subsidy. Those discussions led to the announcement on Friday 2 May that the setting of the limit for such payments could become the responsibility of the Scottish Government.

[Katy Clark]

In February the Scottish Parliament voted in favour of full mitigation of the bedroom tax, but much of that money has not yet reached tenants. Given that there has been a discussion about the discretionary cap, does the Minister agree that the Scottish Government could have acted earlier, and, given that an announcement has now been made, will he do everything in his power to ensure that there is co-operation between Westminster and the Scottish Government so that the money reaches the people who need it?

[David Mundell]

I entirely agree with the hon. Lady. The Scottish Government already had powers that they could have used to take other steps for the purpose of the mitigation that they said was necessary, but they chose not to do so. The Scottish Parliament forced additional funds to be provided, and we will not stand in the way of the spending of those funds. I shall be meeting the Deputy First Minister of Scotland tomorrow morning, and I shall convey the hon. Lady’s comments to her.

[Sandra Osborne]

Does the Minister agree with the far-reaching proposals of Scottish Labour’s devolution commission, including the proposal for the devolution of housing benefit? Does he agree that that would be a progressive, logical and practical step that would enhance devolution and the ability to meet Scottish housing needs?

[David Mundell]

I think that the proposal to devolve the setting of the cap for discretionary housing payments is a positive step, and I welcome the fact that the Labour party has presented proposals. At the end of May, the Scottish Conservative party will present its proposals following the outcome of the work of our own devolution commission.

[Mary Macleod (Brentford and Isleworth) (Con)]

An important part of dealing with housing benefit is ensuring that there is enough affordable housing. Does my right hon. Friend agree that the lack of suitable affordable housing in Scotland is the result and the responsibility of successive Scottish Governments?

[David Mundell]

I do agree with my hon. Friend. She will be aware that since 2010 the Scottish Government have had an additional £1.3 billion in funding that they could have used to provide affordable housing in Scotland. We used to hear constantly in the Chamber about the number of shovel-ready projects in Scotland, but we have not seen much shovelling.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

The bedroom tax has been a costly fiasco in Scotland. It should never have happened, but I am glad that the Government have at long last agreed to allow the Scottish Government to mitigate its worst impacts. However, the Secretary of State recently boasted that we have a “fantastic” benefits system. Does the Minister think that he was talking about the bedroom tax, or is he also living in a parallel universe?

[David Mundell]

I certainly do not live in the universe that the SNP inhabits. It has not given us a single detail of how a welfare system would operate in Scotland. Indeed, in the 670 pages of the Scottish Government’s White Paper, there is just one reference to the establishment of such a system. The SNP set up a commission, but we have heard nothing from it, so I am afraid that I shall take no lessons from the hon. Lady.

[Mr Ian Davidson (Glasgow South West) (Lab/Co-op)]

Does the Minister accept that, now that the Scottish Government have been given the powers for which they asked in relation to discretionary housing payments, there is no reason why they should not first cancel all the bedroom tax for this year, and then write off all the debts that were incurred last year? In order to ensure that no moral hazard is involved, should they not do as the Scottish Affairs Committee has asked, and refund the money that Scottish people paid last year in bedroom tax?

[David Mundell]

I understand that a statement is to be made about the matter in the Scottish Parliament today, and I am sure that the hon. Gentleman’s colleagues will raise those very points with the Scottish Government.

[John Robertson (Glasgow North West) (Lab)]

3. What assessment he has made of the effects of recent trends in household energy bills on standards of living in Scotland; and if he will make a statement.

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

Rising energy bills are a serious concern for consumers in Scotland and across the rest of the UK. We are increasing competition, sustaining vital financial support for vulnerable consumers, and working to ensure suppliers put customers on the cheapest tariff.

[John Robertson]

I thank the Minister for his answer. Does he agree that with the closing of coal-fired power stations and a doctrine of anti-nuclear power stations north of the border, under independence, with the reliance on renewables, energy costs must increase?

[David Mundell]

I certainly agree with the hon. Gentleman about the serious loss to the Scottish economy of closing the door on the nuclear industry, which has brought so much benefit to Scotland, and I pay tribute to him for being such a champion of that cause. He is right that energy costs will go up in an independent Scotland, as set out in the Government’s analysis on energy.

[Guy Opperman (Hexham) (Con)]

Both in Northumberland and in Scotland people are setting up oil-buying clubs to deal with the problem of off-grid energy. Does the Minister agree that the best way to combat energy problems and price rises in off-grid circumstances is to copy this good measure and spread it out across the country?

[David Mundell]

I absolutely agree with my hon. Friend. Oil clubs are developing in Scotland and the Government are keen to promote and support them. I commend him for highlighting this issue.

[Mr Mike Weir (Angus) (SNP)]

11. If the Minister is genuinely concerned about rising costs of energy in Scotland, why is it that Ofgem has yet again delayed the implementation of Project TransmiT, which would finally begin to tackle the discriminatory and expensive transmission charges? Will he press his colleagues to implement it immediately?

[David Mundell]

Project TransmiT is one matter on which I am probably in agreement with the hon. Gentleman. The important thing for Scotland is to get the right answer. Yes, it is disappointing that it has taken some time, but the Scotland Office is determined to work towards getting the right answer, and I urge him and his colleagues to continue to press Ofgem on this as well.

[Margaret Curran (Glasgow East) (Lab)]

Will the Secretary of State explain why, when the Prime Minister said that consumers in Scotland would be £50 better off after cuts to the green levies, hundreds of thousands of Scottish consumers have seen their bills decrease by only £12?

[David Mundell]

There is no reason why consumers in Scotland should not be seeing this £50 benefit, and the Government will continue to do all we can to make sure that they do.

[Margaret Curran]

That is the definition of an inadequate answer, and perhaps goes some way towards explaining why Labour’s policy has gained widespread support across Scotland. In opposing Labour’s energy freeze, the Tory-led Government have had the full support of a surprise friend in the form of the Scottish National party, and it does not stop there: standing up for energy companies, failing to take action on the living wage, proposing tax cuts for those at the top. Does the Minister not agree that Scotland deserves better than this?

[David Mundell]

What I believe is that we do not take any lectures from Labour on energy issues. Gas bills more than doubled under Labour, electricity bills went up by 50%, the leader of the Labour party was responsible for £179 of additional levies on gas bills and fuel duty went up 12 times. I am proud of this Government’s record on energy and Scotland is doing well under it.

[David Mowat (Warrington South) (Con)]

4. What discussions he has had with Ministers in the Scottish Government on the potential role of the Bank of England in the event of Scotland becoming an independent country.

Oral Answers to Questions

David Mundell Excerpts

Wednesday 19th March 2014 Commons Chamber

[Alison McGovern (Wirral South) (Lab)]

2. What assessment he has made of the extent of the use of zero-hours contracts in Scotland.

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

The Secretary of State for Business, Innovation and Skills recently concluded a consultation on zero-hours contracts with proposals on exclusivity clauses, transparency and guidance. A summary of consultation responses will be published in due course.

[Alison McGovern]

The Office for National Statistics has recently had to uprate massively the number of people it estimates are on zero-hours contracts right across the UK. Does the Minister agree that this is the wrong time to see a race to the bottom between UK nations on working standards for ordinary people, whether they live in Scotland, England, Wales or anywhere else?

[David Mundell]

I agree with the hon. Lady. She will know that a 670-page White Paper was produced by the SNP Scottish Government. On zero-hours contracts, as on everything else, it is very short on detail.

[Ann McKechin (Glasgow North) (Lab)]

Will the Minister explain what assessment has been made of Government procurement contracts in relation to zero-hours contracts and how we can encourage best practice?

[David Mundell]

The hon. Lady makes an important point. I will take that up with my colleagues in the Cabinet Office and write to her.

[Margaret Curran (Glasgow East) (Lab)]

Can the Minister tell the House how many people are employed on zero-hours contracts in Scotland?

[David Mundell]

The answer to that question has not changed since the hon. Lady asked it previously. She knows that there is no legal definition of zero-hours contracts.

[Margaret Curran]

Well, the House of Commons Library might take issue with that, because according to the Library, 46,000 people in Scotland are on zero-hours contracts and, in fact, it believes that that is an underestimate. Will the Minister join Labour in calling for an end to exploitative zero-hours contracts? Does he agree that, despite all the talk of recovery, there are still thousands and thousands of Scots on very low and insecure incomes? During the Budget process, has he been fighting in the interests of those Scots or, like the rest of the Tories, is he concerned only with those at the top?

[David Mundell]

It does not surprise me that the hon. Lady does not draw attention to the fact that, on the basis of statistics announced today, employment in Scotland increased by 15,000 over the quarter, and has increased by 79,000 over the year. The Scottish employment rate rose by 0.3%. The way out of poverty is work, and this Government are delivering jobs.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

3. What assessment he has made of the effect of the Government’s welfare reforms on levels of child poverty in Scotland.

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

The Scottish Government child poverty strategy report was published in September 2013 and states that child poverty in Scotland is at its lowest level since 1994. Welfare reform will be subject to the normal policy review process in due course.

[Dr Whiteford]

I am appalled by the Minister’s complacency. He should be aware that more than half the children in poverty in Scotland have working parents, and that the Child Poverty Action Group estimates that 100,000 more children will be pushed into poverty as a consequence of welfare reform. Why do his Government think that it is okay to make children pay the price of austerity, and does he think that it is a price worth paying?

[David Mundell]

Each month, the hon. Lady raises welfare issues and plumbs new depths of hypocrisy. The Scottish Government produced a 670-page—[Interruption.]

[Mr Speaker]

Order. I am quite clear that the context in which the hon. Gentleman is using that term is not collective but individual and personal. [Interruption.] Order. I can handle the matter. The Minister will withdraw that term: it was directed at an individual, and it is inappropriate.

[David Mundell]

I withdraw unreservedly, Mr Speaker. The point I want to make is that the Scottish National party produced a 670-page White Paper on Scottish independence. How many mentions does it make of child poverty? One, on page 41.

[Iain Stewart (Milton Keynes South) (Con)]

Does my right hon. Friend agree that a good way of tackling child poverty in Scotland and England is to raise the personal tax allowance, which would target low earners? That is an effective way of increasing the household incomes of families at the bottom end of the income scale.

[David Mundell]

I absolutely agree with my hon. Friend. Since the coalition Government came to office, 2.2 million people in Scotland have seen their income tax bills reduced.

[Lindsay Roy (Glenrothes) (Lab)]

Will the Minister confirm what impact the imposition of the bedroom tax has had on child poverty in Scotland?

[David Mundell]

On the spare room subsidy, the hon. Gentleman is aware that the Government have introduced significant contributions in relation to discretionary housing payment. He knows as well that the Scottish Government have significant powers to contribute to any mitigation that they think is necessary.

[Guy Opperman (Hexham) (Con)]

Surely the best way to address child poverty is by increasing employment and changing education and skills so that young people in Scotland and England have the skills and aspirations to work their way out of child poverty.

[David Mundell]

My hon. Friend is exactly right, which is why I would have thought that even Opposition Members would welcome the fact that employment in Scotland has increased by 15,000 over the quarter, and that the Scots employment rate rose by 0.3%.

[Mr Russell Brown (Dumfries and Galloway) (Lab)]

Child poverty has long-lasting effects. By the age of 16, children receiving free school meals achieve significantly lower exam grades than their wealthier peers, and they leave school with fewer qualifications, which translates into lower earnings over the course of their working lives. Will the Minister speak with the Secretary of State for Work and Pensions and demand a proper start in life for all children, something that is threatened by this Government’s welfare reform programme?

[David Mundell]

I do not accept the claim that this Government are responsible for child poverty. I agree with the hon. Gentleman’s Dumfries and Galloway council colleague, Marion McCutcheon, who said that the only solution to child poverty is work. That is what this Government are delivering, with 15,000 more people in employment over the past quarter.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

4. What assessment he has made of the financial benefits for Scotland of being part of the UK.

--- Later in debate ---

[Mr Graham Allen (Nottingham North) (Lab)]

7. What discussions he has had on the potential benefits of replicating aspects of the Scottish devolution model in England; and if he will make a statement.

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

The devolution settlement is designed to meet the needs and wishes of the people of Scotland. This Government are committed to devolving power across the United Kingdom to the most appropriate level, taking account of local need. In England, we are achieving this in many ways, including the city deals programme in which Nottingham is a participant.

[Mr Allen]

A lasting democratic settlement in the UK must be based on the twin principles of union and devolution. Does the Minister share my view that separatism will be weaker and devolution will be stronger and more believable, not least to the Scottish people, if its benefits are spread to England too?

[David Mundell]

This Government are committed to devolution within England, and the hon. Gentleman is a prominent advocate of that. He recognises, as I do, that independence in Scotland is the end of devolution there.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Does my right hon. Friend agree that devolution should absolutely take place in England, but it should be chosen by the people of its regions and not imposed by central Government as it was by the previous Labour Deputy Prime Minister?

[David Mundell]

I agree that the form that devolution takes within England—and, indeed, within the rest of the United Kingdom outwith Scotland—is a matter for the people of the rest of the United Kingdom.

[Pete Wishart (Perth and North Perthshire) (SNP)]

There are, of course, new proposed models of devolution on offer. Yesterday we had Labour’s devo-dog’s breakfast as an offer to the Scottish people. Does the Minister find anything attractive in Labour’s chaotic plans? Will they form the basis of the joint proposition, and if not, why not?

[David Mundell]

What we know about the SNP’s position is that it opposes devolution to Scotland and devolution within Scotland with its centralist agenda.

[Graeme Morrice (Livingston) (Lab)]

9. What assessment he has made of the potential effect of Scottish independence on investment in the North sea oil industry.

Scotland and North-east England Post-2014

David Mundell Excerpts

Tuesday 4th March 2014 Westminster Hall

[Mr MacNeil]

If I did not know the right hon. Gentleman better, I would imagine that he was threatening the Channel Islands and the Isle of Man, because they are in that situation. Is he saying that the Channel Islands and the Isle of Man will have to give up their independence? I think not. I think that he is quite a reasonable individual, and I do not think that he will go down that route. The argument about the euro is fallacious, because there are vastly different levels of productivity within the eurozone. The strains within the euro are not really between all the countries that use the euro—they are not between Germany, the Netherlands and France—but between Germany and the far more divergent economies of southern Europe, such as Greece.

I want to address the point that has been made about Canada and the United States of America. The comparison is erroneous because the populations of Canada and the United States are more contiguous, particularly in Canada, running east-west rather than north-south, and that is where the problems are. I am pleased to see that the hon. Member for Inverclyde (Mr McKenzie) was not encouraging Canada, which became independent of the United Kingdom, to become part of the United States of America. We must realise that 100 years ago, the world had 50 independent states. It now has 200 independent states—Europe alone has 50 independent states—and it is better for it. Intergovernmental organisations and others come together to deal with things, and the approach is far more mature than the one that existed in the days of empire. I encourage the hon. Gentleman to take further his support for the independence of Canada, of which I am a fervent supporter, and to realise that just as Canada is better off being independent of its 10-times-larger neighbour to the south, the same is true for Scotland. I do not see any animosity between Canada and the United States of America; I see friendship and people trying to get on with each other.

If there has been a discordant note in the debate, it was introduced by the Secretary of State for Business, Innovation and Skills, who described London as a “giant suction machine”. I am glad to say that that was repudiated by no less a figure than the SNP deputy leader Nicola Sturgeon, who said at University college London that the Secretary of State’s comment was a bit harsh. That happened to be on the day that the Chancellor went to Scotland to bully, threaten and harry the people of Scotland, with predictable reactions. I remember the headline from the London Evening Standard: “Chancellor bullies the Scots while Nicola Sturgeon charms London”. The SNP’s deputy leader spoke in a constructive tone not of fears and scares, but of optimism about the future.

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

We did not see that last week.

[Mr MacNeil]

I hear Members, including no less a figure than the Minister, cackling and heckling. The same fears and nonsense about the idea that we would be diminished were no doubt present when Ireland and some of the Dominions were moving towards independence, but I argue that they were wrong. There is more trade between the UK and Ireland now than there ever was when Ireland was part of the UK. Things are better, and the aggregate GDP of the British Isles is higher because of an independent Ireland and an independent Isle of Man. It will be higher still when we have an independent Scotland, because of the giant suction machine that the Secretary of State for Business, Innovation and Skills alluded to. There is an issue, but the best way to solve it is to create a successful second centre of gravity in the island of Britain. The island of Ireland probably benefits from having two Governments, although it has not been helped by the psychopathic elements who have been involved over the past 100 years.

--- Later in debate ---

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

It is a pleasure to serve under your chairmanship, Mr Weir; I commend the fair way in which you have performed your duties. I congratulate the hon. Member for Sedgefield (Phil Wilson) on securing the debate, and I welcome the contributions from Members from both sides of the border and of all political persuasions. Some Members are new to the debate on Scotland that we are regularly subjected to—or take part in, depending on one’s perspective.

Today is an important day in the referendum debate, because I hear from the BBC that Mr Alex Salmond is coming to England to reach out over the heads of the “Westminster elite”—I do not know whether that is us—to the people of England. I understand that he will tell them that they have no right to have a say in whether England enters into a currency union with Scotland, and that if Scotland becomes an independent country in the EU, English students will still have to pay tuition fees, contrary to EU law. That sounds like a very friendly message, which will be much welcomed.

[Phil Wilson]

I have seen the coverage of Alex Salmond’s speech, too. It is being described as an emotional appeal. It always seems to be emotional, but it never gets down to the nuts and bolts of the economics and the impact on people’s lives.

[David Mundell]

The hon. Gentleman makes an astute point. We all listened to the speech of the hon. Member for Na h-Eileanan an Iar (Mr MacNeil), but it did not contain many facts about what independence will mean for an independent Scotland, or what currency it will have. Mr Salmond needs to be clear that the message on the currency union is not a bluff. He needs to tell us what his alternative plan is. Sterlingisation would leave Scotland with no central bank, no lender of last resort and no control over its interest rates. The Scottish Government’s fiscal commission said that sterlingisation

“is not likely to be a long-term solution”.

Mr Salmond looks like a man without a plan. Perhaps the people of England will find out what the people of Scotland have not found out: his plan B for currency.

As a number of Members have pointed out, being part of a strong United Kingdom benefits us all, on whichever side of the border we live. We all benefit from the stability and certainly that comes from being part of the large and diverse UK single market of 63 million people, rather than the market of the 5 million people of Scotland. The UK really is greater than the sum of its parts; we all put something in and we all get something out.

As part of the UK, Scotland has a broad tax base that allows us to share risks across the UK, and enables us to deal with economic shocks such as the 2008 financial crisis, and to support our ageing population. We have influence on the world stage as a member of the UN Security Council, the EU, NATO, the G8, the G20 and the Commonwealth. At home, institutions such as the NHS and the BBC benefit us all. Scotland benefits from having a strong Scottish Parliament that can make decisions about the things that affect our everyday lives, such as our schools and hospitals. We can pool our resources in the good times and share risks in the bad times with our families and friends in other parts of the United Kingdom.

[Mr MacNeil]

The Minister says that we have a strong Scottish Parliament, but will he tell us why he left it to come to this place?

[David Mundell]

I left the Scottish Parliament because I was elected to Westminster. I am a supporter of the Scottish Parliament. I want to remind our friends who are not usually part of this debate that the Scottish National party did not support the devolution proposal in 1997, or the Calman commission’s proposal to give the Scottish Parliament additional powers in 2012.

[Mr Russell Brown]

The Minister is painting a picture of where there have been significant improvements. There has been a devolution of power, yet under the SNP Government, we in Scotland are experiencing centralisation on a scale that has never been seen before.

[David Mundell]

The hon. Gentleman is right. Although he and I did not vote for the SNP Government in Edinburgh—nor did most people in Dumfries and Galloway—we are not saying that we should tear up the devolution settlement simply because we do not like the Government in Edinburgh. Rather, we are campaigning against the Government and saying that they should be changed. We are not tearing up our country simply because we do not believe in individual policies.

The hon. Member for Na h-Eileanan an Iar said that the only change that would come from independence is a change of Prime Minister—I think I heard him correctly, but I will check his words carefully, because I intend to have them printed out and distributed as widely as possible. He gave us the best case against independence that I have heard for some considerable time.

As a number of Members have said, like Scotland, the north-east benefits from the UK’s size and scale, and the ability to share risks and resources. Within the UK’s single market, we all benefit from close trading links, which continue to grow. The hon. Members for Middlesbrough South and East Cleveland (Tom Blenkinsop), for Inverclyde (Mr McKenzie), and for Houghton and Sunderland South (Bridget Phillipson) made those points strongly. Scotland sold goods and services worth more than £45.5 billion to other parts of the UK in 2011; that is double what we sell to the rest of the world, and four times as much as we sell to the EU. About 30,000 people travel between Scotland and the rest of the UK to work each day.

The strong ties between Scotland and the north-east are clearly illustrated by the work of the “Borderlands” initiative. As a Member of Parliament for Dumfries and Galloway and the Scottish borders, I am keen to encourage that close cross-border work. We must bring more closely together the strategic interests on both sides of the border.

[Sir Alan Beith]

Can I count on the Minister’s backing in ensuring that the policy put forward by the Chief Secretary to the Treasury and the Transport Secretary to prepare for the dualling of the A1 goes ahead?

[David Mundell]

The right hon. Gentleman is a powerful advocate of the dualling of the A1 to the border. It was not clear from his contribution that the A1 in Scotland is not dualled to the border; he might have wished to give that impression. However, he makes a strong argument for his proposition. He also made a strong point about cross-border services. Many of my constituents gratefully receive hospital treatment in Newcastle, and they do not want additional bureaucracy to block that. Although the NHS works on a devolved arrangement in Scotland, it is a shared institution and people do not want it to be separated.

The hon. Member for Sedgefield powerfully made the point about the border effect, which can be seen in the case of not only Canada and the US, but Austria and Germany. Creating a border will have an impact on trade. Hon. Members might be aware that our SNP friends have a pick ’n’ mix approach to comparisons with Scotland. Sometimes it is Norway, sometimes Finland, and sometimes Lithuania; today it was Lichtenstein—tomorrow, who knows? What we do know is that Scotland is better off within the United Kingdom. The only way to keep the benefits for trade and the labour market, the UK pound and cultural links is for Scotland to vote no in the referendum. That is why the UK Government will do everything we can to make a positive case for a strong United Kingdom with Scotland as an integral part.

Scotland’s Place in the UK

David Mundell Excerpts

Thursday 6th February 2014 Commons Chamber

[Pete Wishart (Perth and North Perthshire) (SNP)]

It is a pleasure to follow the hon. Member for West Aberdeenshire and Kincardine (Sir Robert Smith), and may I congratulate the hon. Member for Glasgow North East (Mr Bain) on ensuring we have this important, but all too short, debate today? May I also say to hon. Members that I will not be taking any interventions? Members of the other parties will get 90% of the time so it is only fair to the people watching this debate that they get the opportunity to hear from the other side.

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

On a point of order, Mr Deputy Speaker. Can you confirm that next Tuesday the SNP is in control of Opposition business in this House and that it has not tabled a motion to discuss independence for Scotland?

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. That matter is on the record and certainly does not need my confirmation.