Draft Scotland Clauses

Viscount Thurso Excerpts

Thursday 22nd January 2015 Commons Chamber

[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.

Oral Answers to Questions

Viscount Thurso Excerpts

Wednesday 14th January 2015 Commons Chamber

[Mr Carmichael]

Indeed, my hon. Friend is absolutely right, and that is especially true in areas that are hardest to move, such as youth unemployment, which is down by 5.1% over the past 12 months. Of course it is still too high and of course there is still a great deal to do, but those figures and the ones that she has just mentioned demonstrate that the Government’s plan is right, that it is working and that we should not put it at risk by handing power to those who would just borrow, spend and play games for political ends.

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

When my right hon. Friend next travels down the A9, may I commend to him a stop in Brora to visit Highland Bespoke Furniture? It now employs six people as a direct result of the reduction in national insurance that has helped it to recruit further skilled work. Will the Government consider extending the scheme to workers over 25 who are coming back to work, as that would help further to expand that business and employment in that area?

[Mr Carmichael]

I thank my right hon. Friend for that question. I look forward to joining him in the not-too-distant future, and if Brora is a place in his constituency that he thinks I should see, I will be more than happy to go there with him. He is right to mention the opportunities that have been created as a result of this measure, and businesses the length and breadth of Scotland will tell a story similar to the one he has just related. On his proposal to extend the scheme, he will be aware that a Budget is coming up in March, and he or any hon. Member from across the House who wants to make representations can do so through the Scotland Office.

Oral Answers to Questions

Viscount Thurso Excerpts

Wednesday 2nd July 2014 Commons Chamber

[Mr Carmichael]

We are very much better off as a result of being part of the United Kingdom, and I long for the day when again Ministers here and in Edinburgh can all concentrate on doing their day job of working together to get the maximum benefit to Scotland and Scotland’s economy, and jobs for the people of Scotland that come from inward investment—instead of a referendum distraction.

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

My right hon. Friend will be well aware that marine renewable energy presents a considerable opportunity for inward international investment as well as for export, based on the knowledge we have acquired. In that regard, it is vital that MeyGen’s project goes ahead. What discussions has he had with either the Department of Energy and Climate Change or the Crown Estate to enable that to happen?

[Mr Carmichael]

I have had a number of discussions, as I think my hon. Friend is aware, involving my colleagues in DECC and in the Crown Estate. I am very keen to ensure that no procedural difficulties will stand in the way of the development from MeyGen, which, as he and I both know, is a very exciting and potentially lucrative development for his area.

Scotland’s Place in the UK

Viscount Thurso Excerpts

Thursday 6th February 2014 Commons Chamber

[Mr Andrew Tyrie (Chichester) (Con)]

Unusually, I agree with just about every word I have just heard from the Opposition Benches.

In the short time available, I want to say a few words about the consequences of independence for currency arrangements in the rest of the UK and Scotland, but I ought first to make it clear that the Scots are not without options: they could create their own currency, whether pegged or free floating, they could create a currency board or they could join the euro. All these options are available. But the frontrunner in some quarters seems to be the creation of a formal single currency with the rest of the UK. In the current economic and political circumstances, this should not be attempted, and in the four minutes now available to me, I will try to explain why.

The primary reason is that a British monetary union would need something dramatically tougher than the eurozone rules—so tough that, on both sides of the border, if it was fully explained, I am confident our respective electorates would not want it. And they would be right. It would amount to a common fiscal policy between independent countries, which would be a massive undertaking to design and sustain.

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

Was my hon. Friend struck, as I was, by the Treasury output graphs that we saw at the end of Governor Carney’s speech? They showed that banking in Scotland would represent 12.7 times the economy—five points greater than the seven times for Iceland—and that it would be unsustainable without the currency union provisions my hon. Friend is describing.

[Mr Tyrie]

I think it crucial for us to understand that a banking union could well trigger the migration of banks to London, where they would be able to benefit from the “lender of last resort” facilities provided by the Bank of England.

Let me say something about what a common fiscal policy would entail. It would mean, for instance, pre-approval of budget proposals, which would be accompanied by intensive and very intrusive oversight of budgetary outcomes. It would require rigorous powers to insist on overshoots being corrected quickly and reversed, backed up by credible sanctions for non-compliance.

In order to carry credibility, such powers would probably need to be directly applicable in law on both sides of the border. What that means in practice is that the Bank of England and the Treasury would have the power to direct a large part of Scottish economic and financial policy. For example, the Scots would probably be required to seek their approval before they could borrow in order to build schools and hospitals.

Is it realistic to imagine that all those in Scotland who had just voted for independence would readily accept such intensive supervision and direction from the rest of the United Kingdom? I doubt it.

--- Later in debate ---

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

What a considerable pleasure it is to follow the hon. Member for Na h-Eileanan an Iar (Mr MacNeil). Rarely can a speech with such a terrible lack of facts have graced this hallowed Chamber. What a load of perfectly emotional clap-trap!

[Mr MacNeil]

rose—

[John Thurso]

Do sit down, dear boy.

When I originally put my name down to speak in this debate, I intended to stick to the dismal science, as Governor Carney called it in his address in Edinburgh, and to confine myself to the facts as they have been exposed in the Treasury Committee, but alas, the Chairman of the Committee, the hon. Member for Chichester (Mr Tyrie), was the first to be called and did a far better job than I could.

When I listened to the extraordinarily good and trenchant speech by the hon. Member for Penrith and The Border (Rory Stewart), I was struck by the fact that we should not run away from the emotion involved in this decision. I would therefore like first to touch a little on the “heart” issues before I return to the “facts” issues.

Not long ago, I had the honour of addressing a group of Girl Guides in Thurso who had asked me to come and explain the consequences of independence or the potential for Scotland of independence. I felt it was very important to try to give as balanced a view as I could and to explain both sides of the argument before giving my conclusion as to why I preferred to stay in the Union. Like the hon. Gentleman, I started by giving a bit of history. I did not quite go back to the Romans, but I did point out that it was not until, I think, 1468 —it was certainly around that part of the 15th century—that the northern isles came into the Scotland we now know. The administrative construct of modern Scotland, therefore, existed for less time than the Union.

It is important to put that in context, because we are so often given a wonderful diet whereby somehow the great Gaeldom goes back for millennia to some distant point in history and are told that if we do not give Scotland its independence we will be denying it its destiny. The plain fact is that that is just a load of emotional tosh. We should set it to one side and understand the true history.

If we look back a little further to the battle of Largs, we will see that, up to that point, Caithness and its people owed allegiance, through the Earl of Orkney—one of my ancestors—to the Norsk side and the King of Norway. Were Scotland to find itself in the impossible position of being independent, I think I would join my good friends from the northern isles in seeking independence and going back to that earldom.

We need to assess the risks as well as the benefits, and I hope the debate will be calm and rational. When I first joined the Treasury Committee, we looked at globalisation, and that is what we need to consider in order to understand what is happening in business. When we talk about what might happen to business, we have to consider where companies would be best regulated. The financial services industry in Scotland may well think that business would be better off regulated in a different jurisdiction. We have to think about companies that have treaties with other sovereign nations and may not continue to build things in Scotland if it becomes a separate country. We also have to think about whether people who wish to invest in the United Kingdom would go to Scotland or elsewhere in the UK. I would suggest that the simple, practical commercial decision for most of them would be to go elsewhere in the UK. The benefits cannot be marginal and nor can they be uncertain. If Scotland is to seek independence, the benefits must be substantial and proven, but that case has not yet been made.

We are a brave heart nation. That is a great Scottish characteristic, but another one is the canny heid and this is a time for canny heids. Otherwise, my grandchildren will one day read the headline in one of the Scottish newspapers, “Will the last person leaving Scotland snuff out the candle?”

Oral Answers to Questions

Viscount Thurso Excerpts

Wednesday 18th December 2013 Commons Chamber

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

Is my right hon. Friend aware of the particular difficulties in remote rural areas, where there is no access to main supplies for both gas and oil? Will he commend the concept of heating oil clubs, such as the one I am promoting in Landward Caithness? They have done much to depress that cost. What can the Government do to assist?

[David Mundell]

The Government are keen to support oil clubs like the one in Landward Caithness. I am sure that the issues that concern the hon. Gentleman’s constituents will be ably discussed at our proposed round table in the Scotland Office with DECC and Scottish MPs.

Oral Answers to Questions

Viscount Thurso Excerpts

Wednesday 26th June 2013 Commons Chamber

[Michael Moore]

The hon. Gentleman should perhaps practise his questions a little more. Yet again, there is denial from him and his colleagues of the good progress we have been making on unemployment, and I hope he recognises that. It is absolutely essential that we take the measures to support people into work, which we are doing with the Work programme and the Youth Contract, and we will be making work pay with universal credit. He can shake his head, but he needs to get with the reality.

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

Does my right hon. Friend agree that connectivity through regional air hubs to international hubs is vital to the performance of the Scottish economy? What can the Government do to assist in maintaining those links, particularly at Inverness and to the highlands?

[Michael Moore]

My hon. Friend is a real champion of those vital air links to the north and to the far north, which he represents. I know that he has been making strong representations recently, and we would be happy to have further meetings with him to discuss these issues.

Scotland’s Constitutional Future

Viscount Thurso Excerpts

Tuesday 10th January 2012 Commons Chamber

[Michael Moore]

As I mentioned, I spoke to the First Minister earlier this afternoon, and I hope we will be able to meet soon to discuss the proposals that we have set out in the consultation. We have, of course, for some time been discussing with colleagues in the Scottish Government when they were going to bring forward their own proposals on a referendum. None has been forthcoming, although I hear that today they might be hurrying that up. We have provided the basis for a discussion, and I hope the two Governments can work well together for the people of Scotland.

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

My right hon. Friend and a number of other hon. Members have referred to the uncertainty, particularly over jobs and investment. Can I tell my right hon. Friend that mature opinion in the far north, whether it be in favour of the United Kingdom or in favour of independence, recognises that uncertainty and wishes to see it resolved. Will he therefore ensure that his consultation goes to those of mature political opinion throughout Scotland and ignores the bleatings of those in the nationalist playpen opposite?

[Michael Moore]

I think everybody in Scotland, whatever their temperament, will be welcomed to be part of the consultation, but I agree with my hon. Friend that many from both sides of the debate want the clarity and the legal certainty that we are offering and to get on with the debate—which, after all, has been the reason the SNP has existed for decades. I still am not sure why it is resisting a way forward. I hope that when we discuss the detail, it will agree with us and we will resolve this and get on and have the referendum.

Oral Answers to Questions

Viscount Thurso Excerpts

Wednesday 9th November 2011 Commons Chamber

[Michael Moore]

I agree that it is vital that the UK Government and the Scottish Government work together. Whether that is on terms and conditions or on the general state of the economy, it is extremely important. We as the UK Government have taken important steps to support the Scottish Government in their efforts with the economy.

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

Is my right hon. Friend aware of the considerable construction activity taking place prior to deployment of marine energy in the Pentland firth, particularly at places such as Scrabster harbour? What more can this Government do to ensure that the right infrastructure is constructed now so that we benefit from the opportunity of marine renewable energy in the future?

[Michael Moore]

As my hon. Friend knows, through our plan for growth, which sets out the basis on which we will support the economy through these difficult times—cutting corporation tax, reducing the burden of income tax, reducing the national insurance burden and, with a huge investment in marine renewables, reforming the energy market—we are laying the foundations for that important sector to develop. It is important that that is not undermined by the uncertainty that the independence referendum is causing in Scotland at present.

Oral Answers to Questions

Viscount Thurso Excerpts

Wednesday 22nd June 2011 Commons Chamber

[Michael Moore]

My hon. Friend is right to highlight what we are focusing on as a Government. “The Plan for Growth” seeks to give us the most competitive tax system in the G20, to ensure we are the best place in Europe to start, grow and finance a business and to bring about further investment and a flexible work force. None of that can be done if we have the uncertainty that the independence referendum casts over the Scottish economy.

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

Does my right hon. Friend agree that the Olympics offer a splendid opportunity for promoting inward investment to Scotland? In that regard, is it not tragic that the torch, having visited Land’s End, will fly over John O’Groats?

[Michael Moore]

My hon. Friend makes his point as eloquently as I would expect him to and I am sure that those who are organising the trip will have heard his points.

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[The Prime Minister]

I have huge respect for the people who run our armed services. They do an incredibly good job. They are highly professional people and they are involved in the National Security Council. They were involved in drawing up the strategic defence review. The only point that I have tried to make in recent days is that when we are at war, as we are in both Afghanistan and Libya, it is extremely important, whether one is a political leader or a military leader, to think very carefully about what one is about to say.

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

Is the Prime Minister aware of the decision, abruptly made, to close the passport office in Wick, which has obliged a six-year-old boy to make a 300 mile round trip for an interview and another constituent to travel to Newcastle? Is that acceptable?

[The Prime Minister]

Obviously, I will look closely at the point my hon. Friend raises, but in the modern age we have all sorts of ways of carrying out interviews that do not necessarily involve people having to travel to a passport office. What matters is having an efficient service so that people can get the documentation they need so they can go on the holiday they want.

Oral Answers to Questions

Viscount Thurso Excerpts

Wednesday 4th May 2011 Commons Chamber

[David Mundell]

I do not think that the hon. Gentleman was listening to my last response. His leader, Alex Salmond, previously described the UK regulation as “gold-plated” and, at the previous Scottish elections, offered the voters “light-touch regulation”. This is the same Alex Salmond who said that the banking crisis was down to “spivs and speculators”.

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

One of the most pernicious effects of the banking failure in Scotland at the moment is the withdrawal by nationalised banks at short notice of funding for small businesses, such as TDI Ltd in my constituency. What will the Minister do to hold the moneylenders’ feet to the fire and get Project Merlin properly adhered to?

[David Mundell]

The Secretary of State and I are in regular contact with the banks operating in Scotland to ensure that Merlin goes forward as envisaged. We are also willing to take up individual cases such as the one that my hon. Friend mentions, which, if he refers it to us, we will refer directly to the banks in question. [Interruption.]