Oral Answers to Questions

Alister Jack Excerpts

Wednesday 12th February 2020 Commons Chamber

[Christian Matheson (City of Chester) (Lab)]

8. What recent discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on the renewable energy sector in Scotland.

[The Secretary of State for Scotland (Mr Alister Jack)]

My Department has regular engagement with colleagues in the Department for Business, Energy and Industrial Strategy on a range of issues relevant to Scotland, including the renewable energy sector.

[Cat Smith]

Scotland has a huge geographical advantage when it comes to wave and tidal energy, with reports suggesting that up to 40,000 jobs could be created in the sector if it had Government support. What work is being done in Government to explore wave and tidal technology?

[Mr Jack]

The hon. Lady is right; we have an advantage with that and with our wind speeds, mountains and hydro schemes. The Government are supporting technology. Wave and tidal technology is being investigated in universities, and we are completely behind that, should it prove to work.

[Christian Matheson]

My hon. Friend the Member for Lancaster and Fleetwood (Cat Smith) is right about the geographical advantage. What infrastructure work are the Government undertaking—for example, interconnectors and storage—so that the clean green energy that Scotland is able to generate can be shared with the rest of the United Kingdom?

[Mr Jack]

As the hon. Gentleman knows, interconnectors are a devolved matter, but we are looking at upgrading the schemes so that we can transfer our power across the United Kingdom and the advantage that we have in Scotland with renewables and our growing renewable industry can benefit the whole UK.

[Tony Lloyd (Rochdale) (Lab)]

The Secretary of State will recall that, when EDF was given a licence to develop the wind farm at Neart na Gaoithe, 10 miles off the Fife coast, there was a commitment that 1,000 jobs would be created in making the jackets for the wind turbines. Can he tell the House how many jobs have been created?

[Mr Jack]

No, because I do not know the answer—that is a perfectly straight answer to a straight question. What I can tell the hon. Gentleman is that the sector deal aims to create 27,000 jobs by 2030.

[Tony Lloyd]

I will tell the Secretary of State how many jobs were created: 1,000—in Indonesia. Is the GMB union right in saying that the transportation of those wind turbines from Indonesia to the Fife coast will be the equivalent of 35 million cars on the road? How does that fit our commitment to greening the economy, and what confidence can people have in Scotland that jobs in a wind farm 10 miles off the Fife coast will be created for people in Scotland, not people in Indonesia?

[Mr Jack]

That is the market economy, and we need to be better at pricing and better at producing our turbines—that is the straight answer. We will discuss this issue and many others at COP 26 in Glasgow later this year, when we discuss the climate emergency, but I do not dispute the fact that bringing turbines from Indonesia is not the answer; we need to find a better way of efficiently delivering them in the UK.

[Karl MᶜCartney (Lincoln) (Con)]

We are 13 minutes in, and I am tempted to ask the Secretary of State—and it is to do with wind, because Saturday was a windy day—about us winning the Calcutta cup. [Interruption.] Come on! You have to be happy with that.

We have had a balance of payments deficit, with lots of wind farms in Scotland being paid not to produce any electricity. Is that likely to take place later this year?

[Mr Jack]

Obviously I disagree with my hon. Friend on the Calcutta cup; that goes without saying. It was a wet, windy and miserable day at Murrayfield for me.

We are trying to improve the way in which wind works for Scotland. Contracts for difference provide certainty for investors over the longevity and protect consumers. In October 2019, at the last round of contracts for difference, six of the 12 awarded went to projects in Scotland.

[Bob Blackman (Harrow East) (Con)]

Can my right hon. Friend update the House on the untapped capacity for using renewables in Scotland, and how many jobs would be created as a result of enhancing that capability?

[Mr Jack]

There is enormous capability not just with more offshore wind schemes, but with more hydro schemes. As I said earlier, we intend to create 27,000 more jobs through using that untapped capacity.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Offshore wind and contracts for difference entry was cost-free to both the Government and the consumer as the strike price was below the typical wholesale price, but 240 MW of that remains stranded because Ofgem demands that the island of Lewis has at least 369 MW to build an interconnector cable. Another 180 MW could have been consented to, and that would have been cost-free, but they were not consented to due to Government caps. Can we have some joined-up thinking in the Government between the interconnector and the contracts for difference to ensure we are not billowing out fossil fuels when we could instead have 600 MW of wind being produced?

[Mr Jack]

The hon. Gentleman makes a very fair point. One of the things the UK should look at, for future infrastructure and shared prosperity, is building that interconnector.

[James Sunderland (Bracknell) (Con)]

3. What recent economic assessment his Department has made of the value of trade between Scotland and the rest of the UK.

[Greg Smith (Buckingham) (Con)]

12. What recent economic assessment his Department has made of the value of trade between Scotland and the rest of the UK.

[The Secretary of State for Scotland (Mr Alister Jack)]

Busy day—[Hon. Members: “Ah.”] It appears I have woken a few people up.

Scottish exports to the rest of the UK increased in 2018 by £1.2 billion to £51.2 billion. As a result, the rest of the UK continues to be Scotland’s largest market for exports, accounting for three times the value of exports to the European Union.

[James Sunderland]

Given the Secretary of State’s assessment, will he confirm that Scotland’s trade with the rest of the UK is worth more than three times that with the EU, and this is only one of the benefits on offer of being part of the United Kingdom, not least for British firms?

[Mr Jack]

The Scottish Government’s own figures show that Scotland’s most important trading partner is the rest of the UK and, as my hon. Friend said, that is worth more than three times the trade with the other 27 EU countries combined. In other words, the Scottish Government’s figures show that over 60% of Scotland’s exports go to England, Wales and Northern Ireland. Indeed, I would argue that this is just one of the many benefits that Scotland has from being part of the United Kingdom.

[Greg Smith]

Given the excellent figures my right hon. Friend has just given, does he share my concern that the separatist agenda peddled by the SNP is a direct threat to Scottish jobs and that it would inevitably end up, if its dreams come true, in a hard border?

[Mr Jack]

I absolutely agree with my hon. Friend that Nicola Sturgeon’s separatist agenda is a real threat to Scotland’s jobs, businesses and the economy, and that is why I am against the First Minister’s demand for another independence referendum. We want 2020 to be a year of growth, stability and opportunity for Scotland and for the whole of the United Kingdom, whereas the SNP wants 2020 to be a year of more political wrangling and wasteful debate.

[Ian Murray (Edinburgh South) (Lab)]

Labour MSP Monica Lennon has introduced the Period Products (Free Provision) (Scotland) Bill to the Scottish Parliament to give free provision to women in Scotland, but it is opposed by the SNP Government because of “tampon raids” by the English into Scotland to steal the products. If that is the case, what kind of border does the Secretary of State think will be required in the event of an independent Scotland, with a separate currency, a different regulatory environment and different provisions on trade?

[Mr Jack]

The hon. Gentleman makes an exceptionally good point. That is a border we need to avoid, and it makes no sense to have any sort of border between Gretna and Berwick. As for the SNP opposing that, and the opportunity to reduce VAT rates and other things that would help people on the poorest incomes, I simply do not understand what it is thinking.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

If the Secretary of State truly values the trade between Scotland and the rest of the United Kingdom, why is he prepared to countenance a situation in which we would lose frictionless trade between Scotland and Northern Ireland?

[Mr Jack]

As the Prime Minister said, there will be “unfettered access” between Scotland and Northern Ireland and indeed the rest of the United Kingdom.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

4. What discussions he has had with the Secretary of State for Defence on maritime security off the coast of Scotland.

--- Later in debate ---

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

5. What recent discussions he has had with the Scottish Government on the use of its taxation powers.

[The Secretary of State for Scotland (Mr Alister Jack)]

UK Government Ministers and officials have regular discussions with the Scottish Government on matters of importance, including the Scottish fiscal framework. That historic arrangement delivers one of the most powerful and accountable devolved Parliaments in the world, and it is up to the Scottish Government to use those powers wisely further to increase the economic prosperity of Scotland.

[Mr Jayawardena]

Does my right hon. Friend agree that the Scottish Government’s decision to make Scotland the highest taxed part of the United Kingdom is not only regrettable but yet another broken SNP promise?

[Mr Jack]

It goes without saying that I agree with my hon. Friend, and it is disappointing that Scottish taxpayers who earn more than £27,000 will pay more tax in Scotland than they would in the rest of the UK. Furthermore, taxpayers in Scotland will pay 41% income tax on earnings between £43,500 and £50,000, compared with just 20% in the rest of the UK. That means that a police officer with 10 years’ experience—mid thirties; bringing up a family—will pay 21% more tax on earnings between £43,500 and £50,000 in Scotland than they would pay in the rest of the UK.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

Will the Secretary of State acknowledge that for the third consecutive year more than half of Scottish income tax payers will pay less tax than taxpayers in the UK? Will he explain to those UK taxpayers why his Government is ripping them off?

[Mr Jack]

That figure about less tax is correct—about 56% of Scots will pay less tax. [Interruption.] Before the Scottish nationalists become over-jubilant, I point out that that is the grand amount of 40p per week.

[Ruth Jones (Newport West) (Lab)]

6. What recent assessment his Department has made of the (a) economic and (b) social effect on Scotland of the UK leaving the EU.

--- Later in debate ---

[John Stevenson (Carlisle) (Con)]

9. What recent discussions he has had with the Chancellor of the Exchequer on the forthcoming Budget.

[The Secretary of State for Scotland (Mr Alister Jack)]

I have regular discussions with all my Cabinet colleagues on issues important to Scotland’s economy, including the forthcoming Budget in March. The Government will deliver a Budget for Scotland’s businesses and Scotland’s people. We will set out ambitious plans to unleash Britain’s potential, and level up across the nations and regions of the UK.

[John Stevenson]

Given the close economic relationship between the south of Scotland and the north of England, particularly within the borderlands region, will the Minister make representations to the Chancellor on and give his support to a freeport at the Carlisle Lake District airport?

[Mr Jack]

I welcome the recent freeports announcement, and I have no doubt that freeports will unleash the potential of our proud historic ports, boosting and regenerating communities across the UK. I and other Ministers on the Front Bench—the Chancellor is here—have heard my hon. Friend’s early representations on behalf of his airport and his area. Not only is he a great champion for the borderlands, but he is a great champion for the Carlisle Lake District airport.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Page 64 of the 2015 statement of funding policy document confirms that HS2 should have 100% Barnett consequentials for Scotland. Will the Secretary of State ask for those Barnett consequentials, roughly £750 million in relation to what is being spent on HS2, to be delivered in the Budget?

[Mr Jack]

There already has been a Barnett consequential relating to HS2 spending. In the next spending round, we will see what money is allocated to the Department for Transport. That money will have a Barnett consequential.

[Wendy Chamberlain (North East Fife) (LD)]

Over the weekend, Kingsbarns distillery in my constituency won the “Best Lowlands Scotch, 12 years and Under” award at the world whisky awards. However, the impact of US tariffs continues to impede the growth of the Scotch whisky industry in my constituency and across Scotland. Will the forthcoming Budget include provisions to help our distilleries to compete internationally, despite those stifling tariffs?

[Mr Jack]

I know that the hon. Lady has a lot of experience of this, having formerly worked for Diageo. The 25% tariffs on malt whisky are a consequence of the Boeing-Airbus dispute between the EU and the USA. In the next carousel, by having useful negotiations on a US trade deal, we want to get those tariffs removed.

The Prime Minister was asked—