Alister Jack
Main Page: Alister Jack (Conservative - Dumfries and Galloway)Department Debates - View all Alister Jack's debates with the Cabinet Office
(3 years, 1 month ago)
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Tim Loughton (East Worthing and Shoreham) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
I regularly discuss with my Cabinet colleagues opportunities for Scotland arising from the signing of trade deals. This Government have already struck deals with more than 65 countries around the world worth £217 billion a year, including with Canada, Japan and Singapore, with many more to come. This will create new markets for Scotland’s exporters, including for our world-leading food and drink sector.
Tim Loughton
I congratulate the Government on the recent agreement with the US Administration on suspending tariffs on a number of key quality UK goods, in particular Scotch. May I ask the Secretary of State how much that will be worth to the Scottish economy, and will he confirm that this benefit for Scotland would not have happened if the UK were still in the EU or a customs union, as the SNP has advocated, rather than having become an independent trading nation?
Mr Jack
My hon. Friend is absolutely right. This is brilliant news for the Scotch whisky industry, in the same week that the Chancellor announced a freeze on alcohol duty. The UK Government have fought incredibly hard on this issue, petitioning the highest levels of the US Administration to remove these tariffs, which were harming our Scottish exports.
Pete Wishart (Perth and North Perthshire) (SNP) [V]
During the comprehensive economic and trade agreement talks between the EU and Canada, little Wallonia, as part of Belgium, managed to block the agreement until the concerns of its Parliament were resolved. Meanwhile, the Canadian state legislatures were in the next room to the Canadian federal delegation during those negotiations, putting their case. Will Scotland, with the most powerful Parliament in the world, as we are always told by the Secretary of State, have similar powers? If not, what will be the role of the Scottish Government in these trade talks?
Mr Jack
It is a pity that the hon. Gentleman could not bring himself to welcome the suspension of the US tariffs, in the same way that the Scottish National party has not welcomed any of our trade deals, but maybe he and his colleagues have other things on their mind at the moment. I also noticed that he did not raise separation, for the first time in my almost two years at the Dispatch Box—always separation, but not today. I think he has finally thrown that broken record away. We consult the Scottish Government on these trade deals, but they are a reserved matter and they are for the whole United Kingdom. As I stressed in my earlier answer, they will be very beneficial for the Scottish agrifoods industry.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
I congratulate my right hon. Friend and, particularly, the Secretary of State for International Trade on their relentless efforts to remove the unjustified and penal US tariffs on whisky and cashmere, which have been so damaging. Does my right hon. Friend agree that, whatever now happens in relation to the Airbus-Boeing dispute, there can be no return to arbitrary retaliatory tariffs on unrelated industries, and that the decoupling of whisky and other products from that dispute must be permanent?
Mr Jack
I absolutely agree with my right hon. Friend. The UK Government will continue to engage with the US to agree a fair settlement to the dispute and permanently remove these punitive tariffs, and that will be a deal that works for the whole United Kingdom. This agreement just shows that the UK and the US are determined to work together, and I look forward to seeing us strengthen that partnership.
Douglas Ross (Moray) (Con) [V]
The Secretary of State knows how welcome the suspension of tariffs has been in Moray, with its many malt whisky distilleries and, of course, Johnstons of Elgin, which produces outstanding cashmere products. Will he outline what the Scotland Office and, indeed, the whole UK Government will do to ensure that this four-month suspension becomes a permanent removal of those damaging tariffs?
Mr Jack
I know that my hon. Friend has more distilleries in his constituency than any other Member of Parliament—47, I think—and I also know that he has been a great champion for the industry and has pressed very hard for the removal of the 25% tariff. We are very pleased to have negotiated an agreement that suspends the tariffs. We now have a space of four months to find a resolution on what has been a 16-year-long dispute. The Secretary of State for International Trade is ready to engage with the US trade representative, Katherine Tai, to agree something that is fair and balanced just as soon as the Senate confirms her appointment.
Mark Menzies (Fylde) (Con) [V]
As a proud Scot and one of the Prime Minister’s trade envoys, I was delighted by last week’s announcement that the Secretary of State and the Department for International Trade have secured a deal to remove export tariffs on Scotch whisky and a whole number of other products for sale to the United States. What estimate does my right hon. Friend make of the trade and investment benefits resulting from Scotland’s continued membership of the Union?
Mr Jack
This deal will be welcomed by businesses on both sides of the Atlantic because it will hopefully bring an end to harmful tit-for-tat tariffs. I agree with my hon. Friend, but to add to the point, the rest of the United Kingdom continues to be Scotland’s largest market for exports. It accounts for more than 60% of all Scotland’s trade.
Sarah Atherton (Wrexham) (Con)
Alun Cairns (Vale of Glamorgan) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
Last week’s Budget provides continued UK-wide support and security to manage the ongoing impacts of covid-19. One in three jobs in Scotland have been supported by the UK Government’s unprecedented employment support package. Scottish businesses have benefited from more than £3.5 billion of loans and support, driven by UK Government schemes. We have also provided a much-needed boost by extending the reduction of VAT for our tourism and hospitality sectors.
Alun Cairns [V]
Does my right hon. Friend agree that the benefits of the Union of four nations have really come to the fore over the last 12 months, in that the strength of the UK Government’s balance sheet has meant not only that families, businesses and individuals in all parts of the UK have been able to benefit from that strength, but that the devolved Administrations have received the resources that they need to support people in all parts of the country?
Mr Jack
My right hon. Friend is absolutely correct and, more importantly, the majority of people in Scotland agree with him. Not only did they emphatically reject independence in 2014, but the most recent opinion polls show that they have realised that neither the Scottish National party nor its leader can be trusted, and that independence would make everyone in Scotland significantly worse off.
Mr Speaker
We now come to the shadow Secretary of State for the first of two questions.
Ian Murray (Edinburgh South) (Lab)
I am sure that the Secretary of State would like to join me—I am sure he accidentally omitted it—in congratulating Anas Sarwar on becoming leader of the Scottish Labour party, the very first ethnic minority leader of any UK political party. I am sure that his positivity and optimism will transform Scotland when compared with what we have at the moment.
Business covid support in Scotland has been sporadic at best, and I hope that the Government will tell us how we will get a full transparent audit from the Scottish Government, following the Audit Scotland report last week that estimated that £2.7 billion was unspent, not including the £1.2 billion from last week’s Budget. Every penny needs to be spent now.
This Government talk a lot, as we have heard already, about a post-covid levelling-up green agenda, yet they are pursuing a policy in offshore renewables that benefits its business solely in the south-east of England. The Government’s fourth contracts for difference auction at the end of this year actively disadvantages viable Scottish offshore renewable projects, as the Department for Business, Energy and Industrial Strategy includes out-of-date and expensive transmission charges in auction bids. What is the Secretary of State doing to ensure that the Government ditch this unfair renewables policy that advantages south-east England at the expense and detriment of perfectly viable offshore renewables projects off our Scottish coasts?
Mr Jack
May I begin by agreeing with the hon. Gentleman in welcoming Anas Sarwar as leader of the Scottish Labour party? I also completely agree with the hon. Gentleman that we need more transparency on the spending of the £9.6 billion of covid support and business support that the Scottish Government have received. On the transmission issue, as he will know, by law, transmission charging is a matter for Ofgem, which is an independent regulator. However, Ofgem is currently considering some aspects of the transmission charging arrangements through its access and forward-looking charges review, and I encourage all Scottish generators to engage with that review at the earliest opportunity.
Ian Murray
I accept the Secretary of State’s answer, but it will disadvantage projects. BEIS has said that it will not change the auction requirements and, therefore, unless the wind blows in the south-east estuary of England, renewables, including in Scotland, will be significantly disadvantaged.
Given the mess that the Scottish Government are making of business and industry in Scotland, from steel to airports, to ferries, to aluminium smelters, I hope that the UK Government deliver on their promise to protect the Scottish financial services sector post-covid and post-Brexit. Financial services have done very well from Brexit, as long as they are in Amsterdam or Frankfurt. In Scotland, the sector employs 162,000 people and is nearly 10% of the Scottish economy, but despite its importance, it was not included in the Brexit deal at all. Will the Secretary of State guarantee today that the sector will get a much needed post-covid boost by ensuring that the memorandum of understanding on financial services, which is due to be signed in a matter of days with the EU, gives this critical industry the equivalence and access to EU markets that it was promised by this Government?
Mr Jack
The UK and the EU have agreed in a joint declaration to establish structured regulatory co-operation for the financial services industry. A memorandum of undertaking will be agreed in discussions between us and the EU to establish a framework. Those discussions are currently ongoing at official level, but as with the Brexit negotiations, we cannot give a running commentary.
Rob Roberts (Delyn) (Con)
Dr Neil Hudson (Penrith and The Border) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
I have regular discussions with Cabinet colleagues on transport connectivity in Scotland and throughout the United Kingdom. I welcome Sir Peter’s interim report and I look forward to his final report in the summer.
Rob Roberts
As connectivity and transport infrastructure are of vital importance not only for business but for the UK’s tourism industry, does my right hon. Friend agree that taking steps such as electrifying the north Wales coast line and improving links with north-west England will not only enable my constituents in Delyn to enjoy the delights of Scotland more easily but allow our Scottish cousins to have greater access to the beauties and wonders of our fantastic north Wales area?
John Lamont
The Minister will know that cross-border transport routes are vital for my constituents, for educational and career opportunities as well as many other day-to-day tasks. That is why I want to see the Borders Railway extended and to see improvements to the A1; these are both vital routes for the Scottish borders. Does he share my frustration and shock that the SNP Scottish Government are failing to engage with and support the connectivity review, which could be an opportunity to accelerate these two projects?
Mr Jack
I share my hon. Friend’s frustration, I really do. This review is part of our levelling-up agenda to improve the national infrastructure and create jobs and prosperity, and I think it is pathetic of the Scottish nationalist Government not to have engaged just because it is a “Union” connectivity review.
Dr Hudson [V]
As an MP for a borderlands region, I know that strengthening and enhancing our Union is of huge importance to my constituency of Penrith and The Border. Does my right hon. Friend agree that projects such as extending the Borders Railway down to Carlisle are a clear example of how the UK and Scottish Governments can work together to improve transport links in the region? Does he also agree that this would be a great boost to the economies of both the north of England and the south of Scotland, and provide a gateway to unlocking the potential of both regions?
Kenny MacAskill (East Lothian) (SNP)