Oral Answers to Questions

Alister Jack Excerpts

Wednesday 3rd November 2021 Commons Chamber

[Kirsten Oswald (East Renfrewshire) (SNP)]

1. What recent assessment he has made of the effect of the UK-EU trade and co-operation agreement on Scotland.

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

This is an incredibly significant week for the whole planet, as countries from around the world gather in Glasgow to negotiate on climate action. We are facing a climate emergency, with no time to lose; we must keep 1.5^° alive. I am sure that the whole House will join me in urging all countries at COP to make a real commitment to change. I know that we will all want to take this opportunity to thank Police Scotland for working so hard to ensure a safe and secure COP26. It is supported in that by 7,000 police officers from other UK forces. I am very pleased that the UK Government have brought COP26 to Glasgow, and I am sure the city will receive a long-term boost from being in the world spotlight.

The UK Government have agreed a deal with the EU that fully delivers for Scotland and the rest of the UK. Our deal provides Scottish businesses with exceptional access to EU markets. It is the first time the EU has ever agreed a zero-tariff, zero-quota deal. I regret that the SNP refused to support that deal.

[Kirsten Oswald]

Brexit-induced labour shortages are having a real impact on several sectors of the Scottish economy, with social care, hospitality, and food and drink among the worst hit. For some, the impact has been catastrophic, with up to a third of Scotland’s harvest of some crops left to rot in the fields. Those are the direct consequences of this UK Government’s hard Brexit deal and their ideological decision to abruptly end freedom of movement. The Secretary of State knows that, and he knows that the EU provided over €1 billion in Brexit support to Ireland, so will he back Scotland’s employers and support a compensation fund to mitigate the Brexit damage inflicted on Scotland against our will?

[Mr Jack]

The hon. Lady will know that I backed the increase in the seasonal agricultural workers scheme from 2,500 to 30,000. The National Farmers Union of Scotland is well aware of that; I led on those negotiations. She will know that the EU settled status scheme has been successful. We were told that fewer than 3 million people would apply but in fact over 6 million have applied. Some of those workers have remained in their countries; they can come to the UK freely, as she knows, but they remained in their countries during the pandemic, and the pandemic has been a factor. We also have the shortage occupations list, which creates lower salary requirements for skilled workers. This Government are doing everything they can, but we have to recognise that there is a pandemic effect on labour shortages at the moment.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

The Secretary of State will be aware that the principal export market for most businesses in my constituency is in England. Does he share my frustration that the Scottish Government, rather than supporting those businesses with exports to other parts of the United Kingdom, continue to pursue an independence agenda, which could only mean more barriers for those businesses?

[Mr Jack]

My right hon. Friend is spot on. Scotland’s trade with the rest of the UK is three times more than her trade with Europe. It is worth over £50 billion, it is worth over half a million jobs, and it is critical that we keep the border open.

[Mhairi Black (Paisley and Renfrewshire South) (SNP)]

The Secretary of State will remember that Scotland voted to remain part of the European Union, and that despite every compromise offered, this Government ploughed ahead with Brexit, knowing full well the damage that it would do to Scotland and that it was against the wishes of the people in Scotland. Now, the Office for Budget Responsibility has projected that the UK’s economy will be 4% smaller because of Brexit, and Her Majesty’s Revenue and Customs found that Scottish exports were actually higher last year, during the height of the pandemic, than they are this year, after Brexit.

I know that the Secretary of State mentioned the pandemic, but that means that Brexit is having a worse impact on Scottish exports than the pandemic. Although he could have fooled me with his lack of mask, Mr Speaker, I am going to presume that the Secretary of State is not in favour of the pandemic and its effects. Given that the effects of Brexit are worse, why does he support it?

[Mr Jack]

The hon. Lady quotes the OBR. Actually, the OBR prediction was for economic growth to be 4% in March. The reality is that it has corrected that, and its prediction is now for economic growth to be 6.5% in 2021 and 6% in 2022. Actually, our economy is recovering strongly, and it is the fastest-growing economy in the G7.

[Mhairi Black]

This alternative reality is an international embarrassment. As my hon. Friend the Member for East Renfrewshire (Kirsten Oswald) already mentioned, the EU provided over €1 billion to Ireland as a Brexit compensation fund to combat its effects. Since we know that Brexit is damaging Scotland’s economy and since this place clearly thinks itself so superior to the EU, without mentioning existing funds can the Secretary of State tell us when Scotland will receive its Brexit compensation fund and how much will be in it?

[Mr Jack]

We have just had a Budget where the Chancellor has given £41 billion in the block grant, up £4.6 billion and the largest ever block grant received by the Scottish Government since devolution began in 1998. On top of that, this week there was almost £200 million in structural funds support through the levelling up fund, the community renewal fund and the community ownership fund. More money is going into Scotland than ever before to support Scotland as we go through the pandemic. It is a matter of enormous regret that last night, when the Budget vote took place, the SNP did not support all that extra funding for Scotland.

[Douglas Ross (Moray) (Con)]

The EU announced earlier this week that it would be removing the tariffs on American whisky, in a further de-escalation of the trade dispute between the US and the EU. Clearly, there has already been positive news for the Scotch whisky industry with the five-year suspension, but will the Secretary of State work with me to encourage the UK Government to remove all tariffs on American whisky, which would further support the distillers in Moray and the industry across Scotland?

[Mr Jack]

My hon. Friend makes a very good point. I know that there are over 40 distilleries in his constituency, so I understand why he feels very strongly about this issue. I agree with him. We were successful in taking the 25% tariff away, but it needs to be removed completely and not just suspended for a number of years. The way to do that is for us to also remove our tariffs on bourbon. I would be very happy to meet him to discuss that.

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

Brexit has been nothing other than an unmitigated disaster for Scotland. We now have food shortages, labour shortages, businesses unable to export their products and food rotting in the fields. Is it not about time, instead of all this mealy-mouthed nonsense, that the Secretary of State got to his feet and apologised to the people of Scotland for dragging our nation out of the European Union against its national collective will?

[Mr Jack]

I simply do not recognise what the hon. Gentleman says. We have been through the pandemic and it is far too early to say what any impacts are to make predictions, but what we do know is that our economy is growing. We are doing fantastic trade deals around the world, which will benefit the Scottish economy, and Scottish food and drink. He just needs to get positive about that: stop talking down Scotland’s businesses, stop talking down Scotland, and start to get optimistic about the opportunities we face.

[Mr Speaker]

May I just gently say to Ministers that they are meant to speak through the Chair? That was becoming a very personal battle and I am trying to not allow that.

--- Later in debate ---

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

The UK Government’s commitment to shipbuilding in Scotland is unwavering. Over the past 15 years, we have delivered: six Type 45 destroyers, launched from the Clyde; two aircraft carriers, assembled at Rosyth; five offshore patrol vessels, built on the Clyde; and we have ensured a bulging order book for the future—eight Type 26 frigates have been ordered, with three of them already under construction on the Clyde, and five Type 31 frigates have been ordered and are destined for Rosyth.

[Sarah Atherton]

I am pleased that the first deal has been cut for the Type 31 frigate, HMS Venturer, which is being built at Rosyth. With the fleet’s construction due to support 1,250 jobs and 150 apprenticeships, does my right hon. Friend agree that such projects are integral to the Union?

[Mr Jack]

I absolutely agree: the shipbuilding industry makes a huge contribution to strengthening the Union. It directly supports UK security and prosperity, and it supports 25,200 jobs across the UK and 7,000 direct jobs in Scotland. I was fortunate to visit BAE Systems in Govan recently and I met the excellent workforce building HMS Glasgow; I am assured that she will be a very fine ship.

[Jack Lopresti]

Does my right hon. Friend share my disappointment that Scotland’s state-owned shipyard could not even compete for a Scottish ferry building contract, and does he note that the Scottish Government’s failure may cost many shipbuilding jobs?

[Mr Jack]

I do share my hon. Friend’s disappointment that the Scottish Government-owned shipyard was unable to compete in the tenders for two new ferries for Scotland. That disappointment is shared by the whole of Scotland, particularly island communities, who are suffering every day as a result of the SNP’s self-inflicted ferry fiasco.

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

The Orbital O2 tidal generator was the first marine vessel launched from Dundee in 40 years. Wave and tidal offer massive opportunities for the wider maritime industry in Scotland. All that is required for these technologies to scale up is a ring-fenced pot of money in the forthcoming contracts for difference auction. Will the Secretary of State, given his power, raise this with the Department for Business, Energy and Industrial Strategy to make sure that that happens? I would be happy to meet him.

[Mr Jack]

Yes, and yes.

[Chris Elmore (Ogmore) (Lab)]

In 2019, the Scottish Government took shipbuilding company Ferguson Marine into public ownership. The yard was supposed to deliver two ferries by the end of 2019 at a cost of £97 million. The ferries still have not been delivered and the total cost has ballooned to more than double the original budget, leaving islanders without new ferries and taxpayers footing the bill. As we have just heard, rather than now using the shipbuilder to build more ferries, they are sending the contracts abroad to create jobs in other countries. Does the Secretary of State think that that represents value for money for Scottish and UK taxpayers? If he does not, will he raise the issue with Scottish Ministers, because taxpayers really do deserve better?

[Mr Jack]

The hon. Gentleman makes a very good point. The Scottish Government’s incompetence in this area has cost the taxpayer very, very heavily. Eleven organisations responded to the original procurement process. The three chosen to tender were shipyards in Romania, Poland and Turkey. I would have preferred the Scottish Government to show some loyalty to UK shipyards, even if their own one could not fulfil the contract.

[Duncan Baker (North Norfolk) (Con)]

4. What steps the Government are taking to support the Scottish seed potato industry.

--- Later in debate ---

[Greg Smith (Buckingham) (Con)]

7. What discussions he has had with Cabinet colleagues on the legislative competence of the Scottish Parliament.

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

I have frequent conversations with Cabinet colleagues about maintaining and strengthening the devolution settlement and ensuring that the Government’s focus is on delivering for Scotland. It is important that all legislation clearly reflects the competence and roles of Scotland’s two Parliaments and two Governments.

[Greg Smith]

Does my right hon. Friend agree that the key issue here is the need for the Scottish Government to exercise their existing powers more effectively, rather than asking for new powers or seeking to go outside the realms of the Scotland Act 1998?

[Mr Jack]

As my hon. Friend will know, we routinely engage with the Scottish Government on the use of devolved powers. It is in the interests of citizens across the UK for both Governments to operate within their respective powers, as set out in the Scotland Act. That is why I informed the Deputy First Minister back in March that I felt that the United Nations Convention on the Rights of the Child (Incorporation) (Scotland) Bill and the European Charter of Local Self-Government (Incorporation) (Scotland) Bill contained clauses that were outside the competence of the Scottish Government. Sadly, our warnings and suggestions for changes to the Bills were ignored, so our Law Officers referred the relevant clauses to the Supreme Court. The Court agreed with our views on every count. I hope that the Scottish Government will in future work with us to ensure that their Bills respect the devolution settlement, so that we do not waste any more time and money when enacting important legislation.

[Kenny MacAskill (East Lothian) (Alba)]

8. What steps he is taking to support onshore employment from renewables and other forms of green energy in Scotland.