Oral Answers to Questions

Alister Jack Excerpts

Wednesday 16th March 2022 Commons Chamber

[Patrick Grady (Glasgow North) (SNP)]

2. What recent discussions he has had with the Scottish Government on legislation that has not received legislative consent from the Scottish Parliament.

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

The Westminster Parliament can and does legislate for all of the UK, and we have always sought to do so with the consent of the relevant devolved Parliament when we legislate in areas of devolved competence. The Scottish Parliament has passed legislative consent motions for seven Bills in this Session where the legislative consent motion process has been engaged. However, as the hon. Gentleman knows, the SNP Scottish Government made it quite clear that they would not grant LCMs for Brexit-related Bills. We understand their position even if we do not agree with it, but following Brexit, it is this Government’s duty to legislate sensibly for the whole of the United Kingdom, which has involved legislating without consent on a small number of occasions and may well mean doing so again in the future.

[Patrick Grady]

That small number of occasions includes the Elections Bill, the Professional Qualifications Bill, the United Kingdom Internal Market Act 2020 and the withdrawal agreement itself. All were rejected by Scotland’s Parliament but are taking effect anyway because this Tory Government never really believed in devolution in the first place. So is this actually the end of the Sewel convention, and is ignoring the Scottish Parliament the new normal?

[Mr Jack]

Quite simply, we are not going to take any lessons on defending devolution from a party that wants to destroy it.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

This morning, as ever, we have heard a lot from the SNP about respecting the Scottish Parliament and ignoring the Scottish Parliament. Does my right hon. Friend agree that it is the height of disrespect for the permanent secretary of the Scottish Government, who remains accountable to the UK Cabinet Secretary and draws a six-figure salary, to refuse to appear in front of a Committee of the Scottish Parliament without giving a reasonable excuse as to why?

[Mr Jack]

I agree with my hon. Friend that reciprocal respect absolutely underpins the devolution settlement. As to the permanent secretary’s decision not to appear in front of the Committee, that is entirely a matter for her.

[Ian Murray (Edinburgh South) (Lab)]

I am sure that the Secretary of State would like to join me in welcoming Dr Riches, who is watching our proceedings today. She is from the Royal Society and she is shadowing me as part of a pairing scheme. She is very welcome.

Holyrood unanimously approved a legislative consent motion for the Economic Crime (Transparency and Enforcement) Bill, which included an amendment from my Labour colleague Michael Marra urging the UK Government to remove a provision that would require ownership of land only from 2014 to be registered in Scotland registered, when the requirement is from 2004 in England. So if someone has laundered Putin’s dirty money in Scotland before 2014, they are in the clear. For example, Perthshire’s Aberuchill castle was bought by the Russian steel magnate Vladimir Lisin for over £5 million in 2005. He has been on the Treasury’s watchlist since 2008, but he is not covered. Vladimir Romanov, who bought Heart of Midlothian football club along with swathes of central Edinburgh, is allegedly hiding in Moscow under the protection of Putin. He would not be covered either, but both of them would be covered in England. Does the Secretary of State think that is right? What is he doing to implement the LCM amendment to sort this smugglers’ cove in Scotland?

[Mr Jack]

I join the hon. Gentleman in welcoming the Royal Society pairs who are in London. I also thank the Labour party for its support for the Economic Crime (Transparency and Enforcement) Bill—it is hugely appreciated.

On the registration of property, England and Wales changed the rules for transparency of ownership in 1999, but in Scotland they were changed in 2014. The problem we have is that, if we go back before 2014, there is a risk that third parties who did not know they were engaging with an overseas entity that was non-compliant could be hurt. That hurt would be for something they were engaged in unwillingly, and we must protect those third parties. That is the reason why we have not gone back before 2014, and the Joint Committee on the Draft Registration of Overseas Entities Bill, which reviewed the draft legislation, agreed with that, but I have every sympathy with the points the hon. Gentleman makes.

[Ian Murray]

I am sure that anomaly could be sorted to ensure that we do not hurt unsuspecting third parties. One of the most important ways to clamp down on illicit Russian money and influence in the UK is through the reform of Companies House. Despite Labour’s attempts, the Economic Crime (Transparency and Enforcement) Act 2022 does not contain such reforms, but they are important, because Scottish limited partnerships, which were set up for Scottish farmers in the 19th century, remain an outdated and opaque vehicle of ownership that is used in the 21st century to obscure beneficial ownership. There is widespread support for that change, but the Government refused to act. Will the Secretary of State commit now to reforming Scottish limited partnerships and wider company law so that we can see who actually owns the companies and shut down those laundering loopholes?

[Mr Jack]

The hon. Gentleman will also know that the UK Government clamped down on the abuse of Scottish limited partnerships in 2018, but we want to do more, and early in the next Session of Parliament there will be an updated economic crime Bill and further measures will be taken. He is absolutely right that those partnerships were being used by foreign individuals and companies to launder money. We know that. The reforms in 2018 increased transparency and put more stringent checks on the individuals forming those companies, but, hopefully with the support of the Labour party, we will tackle them in the next Session of Parliament.

[David Duguid (Banff and Buchan) (Con)]

The Scottish National party likes to present itself as the defender of devolution, but does my right hon. Friend agree that there is an inherent contradiction between that position and its desire to rip our United Kingdom completely apart? Does he also agree that it is the UK Government who are promoting devolution, including the transfer of powers regained from the European Union?

[Mr Jack]

My hon. Friend will be delighted to know that I absolutely agree.

[Mr Speaker]

We come now to SNP spokesperson Pete Wishart.

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

Is it not the truth that Scotland has never experienced such sustained attacks on our democracy and our democratic institutions? As we have heard, legislative consent is now almost dead and buried, a feature of history, with Westminster now legislating in devolved areas. What is next in the Secretary of State’s sights?

[Mr Jack]

There are various Bills that come through that are Brexit related: the Professional Qualifications Bill, which is linked to trade Bills, a reserved matter, would be one of them, and the Subsidy Control Bill would be another where we will not get an LCM. We know that, but we need to bring in subsidy controls, because state aid has reverted to the United Kingdom from the EU and it is a UK matter.

[Pete Wishart]

The Secretary of State does not get an LCM because Scotland’s directly elected representatives do not agree with it and do not want it. That is why LCMs are withheld. Everybody can see what is going on, and everybody can see his attempts to undermine our democracy. Is it not the case that his muscular Unionism has been a disaster for Scottish democracy? In fact, it has even been a disaster for the Scottish Conservatives, who may or may not now have confidence in their Prime Minister. Is it not also the case that the Scottish people have no confidence in this Government to defend our parliamentary institutions?

[Mr Jack]

Absolutely not. We do the right things for Scotland. On the United Kingdom Internal Market Act 2020, we brought the Bill forward without an LCM to protect Scotland’s trade with the rest of the United Kingdom. The two principles that underpin it are mutual recognition and non-discrimination. That is because 60% of Scotland’s trade is with the rest of the UK and a lot of jobs rely on it.

[Dean Russell (Watford) (Con)]

3. What steps the Government are taking to support Scotland’s transition to net zero.

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

The Government’s net zero strategy outlines a comprehensive set of measures to transition to a green and sustainable future. This will support hundreds of thousands of well-paid jobs and leverage up to £90 billion of private investment by 2030 across the entire United Kingdom, including Scotland. All previously licensed fields, such as Cambo, are accounted for in projected production and estimated emissions. We are confident that they can be developed, even as we seek to achieve our commitment to net zero by 2050.

[Dean Russell]

Yesterday, I met my “Dean’s Green Team” in Watford to talk about initiatives around making sure that the economy is greener and having a better environment. Does my right hon. Friend agree that the net zero strategy is even more important for energy security and that we are stronger as a Union when we work together on that?

[Mr Jack]

I agree with my hon. Friend. I know he is a great champion of net zero policies. As the Prime Minister set out earlier this week, now more than ever what the UK needs is a balanced approach to energy. Both the North sea and renewables can help guarantee a secure energy supply for households and businesses without relying on foreign imports, and it is greatly to be regretted that we cannot agree a UK-wide position on these issues, because by opposing the development of new oil and gas fields, the Scottish National party and the Greens risk driving jobs and investment elsewhere. However, I say to those working in the industry that fortunately for them, oil and gas is a matter reserved to the Westminster Government.

[Liz Twist (Blaydon) (Lab)]

Our journey to net zero is critical not only to saving the planet, but to weaning us off any reliance on Russian gas. ScotWind, the largest offshore wind project in the world, has huge potential, but we must also live up to our values and ensure that Scotland’s wind is not being used to power Putin’s war. Will the Secretary of State ask Scottish Ministers to conduct an audit of ScotWind to guarantee that no ill-gotten Russian money is part of its financing and ensure that all successful contracts for difference are free of Russian involvement?

[Mr Jack]

As the hon. Lady will know—she makes a fair point—ScotWind is a matter for the Scottish Government, but I am sure they will be doing all they can to ensure that no Russian money is financing any of the successful contracts. On contracts for difference, the UK Government are working to ensure that no Russian money is underpinning UK infrastructure.

[Stephen Flynn (Aberdeen South) (SNP)]

You have to admire the brass neck of the Secretary of State, because it is his Government who have failed to deliver carbon capture and underground storage in Scotland, it is his Government who have failed to match fund the Scottish Government’s just transition fund, and it is his Government who oversee Scotland paying the highest electricity transmission charges in the entirety of Europe. When will he stop doffing his cap to Westminster and stand up for Scotland’s renewable future?

[Mr Jack]

I agree with the hon. Gentleman on this point, and we have raised it many times with Ofgem, but it is an independent regulator, and it is looking again at transition charge reform.

[Dr Neil Hudson (Penrith and The Border) (Con)]

4. What recent discussions he has had with Cabinet colleagues on strengthening Union connectivity.

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[Dr Luke Evans (Bosworth) (Con)]

8. What recent discussions he has had with Cabinet colleagues on the potential impact on the Scottish economy of establishing two green freeports in Scotland.

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

I have regular discussions with my Cabinet colleagues on all relevant UK Government policies that support economic growth in Scotland. The landmark agreement between Scotland’s two Governments to establish two new UK freeports will support the regeneration of communities in Scotland.

[Dr Luke Evans]

Freeports are a real opportunity to bolster the UK’s economy. In the east midlands we have a freeport that is bringing 60,000 jobs and green investment. Does my right hon. Friend agree that that will be the case if two freeports go ahead in Scotland? Does that not demonstrate levelling up across the UK and our Union?

[Mr Jack]

Everyone who cares about Scotland’s prosperity will welcome the additional UK Government investment of up to £52 million, on top of the massive tax and customs benefits to the Scottish economy, drawing in more private sector investment. I would have thought that all parties in Scotland would have welcomed the opportunities and jobs that will flow from the new freeports in Scotland. However, sadly the Scottish Greens, the SNP Government’s coalition partners, oppose them, which shows how irresponsible it was for Mrs Sturgeon to invite a party so opposed to economic growth to join her in government.

[Alison Thewliss (Glasgow Central) (SNP)]

Freeports around the world have long had an association with tax dodging and economic crime. In light of the Government’s responsibility to bring forward an economic crime Bill No. 2, will they review their freeports policy?

[Mr Jack]

That is an utterly ridiculous question. I received a letter from a Scottish Government Minister saying that freeports were a “tarnished brand” reminiscent of smuggling and tax evasion, just before they signed up to our policy.

[Jacob Young (Redcar) (Con)]

9. What steps his Department is taking to support the hydrocarbons sector in Scotland.

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

The UK Government remain committed to our domestic offshore oil and gas sector, which continues to keep us warm, fuel our vehicles and strengthen our security of supply. At present, 75% of the UK’s primary energy demand comes from oil and gas and it is therefore an essential part of our energy mix.

[Jacob Young]

The oil and gas industry in Scotland, in Teesside and around the country provides thousands of people with good quality, well-paid jobs, while keeping the lights on and keeping Britain moving. Does the Secretary of State agree with me that it is vital that we encourage North sea oil and gas exploration to ensure we have energy security and independence in this time of uncertainty, and that these sectors will help us to decarbonise in the long run and achieve our net zero goals through projects such as Net Zero Teesside?

[Mr Jack]

I agree with my hon. Friend about the importance of our domestic oil and gas sector. The North sea transition deal is a global exemplar of how a Government can work with the offshore oil and gas industry to achieve a managed energy transition that leaves no one behind. This Government support oil and gas, and the 100,000 jobs linked to that industry in Scotland, but we also support the transition, rather than the extinction, of that industry.