United Kingdom Internal Market Bill

Debate between Alun Cairns and Richard Thomson

Wednesday 16th September 2020 Commons Chamber

[Alun Cairns]

My right hon. Friend is absolutely right, and I have a more practical, current example, relating to my constituency.

When attracting investment, the added complexity of dealing with two Administrations for very large projects detracts from the ease of landing those deals. Let me highlight an example. I have long had the plan and hope to develop what I call battery valley in Wales, akin to silicon valley in the US. I believe that Wales has the capacity to develop expertise in the manufacturing and storage of batteries for electric vehicles as we move from the internal combustion engine. I have had the privilege of travelling to manufacturers and meeting investors around the world to encourage them to consider Wales for that purpose. It is great news that Britishvolt is looking at making such an investment in my constituency. That investment could be well in excess of £1 billion. It could be between £1 billion and £2 billion. Naturally, it will expect some sort of Government support to invest in Wales and specifically—hopefully—in my constituency.

An example of the sort of incentives that the German federal Government have offered for a similar investment to be made in Germany is close to €2 billion. The Welsh Government cannot compete with that sort of scale of spend, but clearly the UK Government have a part to play and can seek to jump-start the industry by making large-scale sums of money available that the Barnett formula could never deal with. As my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) highlighted, the clauses in the Bill fill a major hole in the current devolution settlement in terms of attracting major investment and major infrastructure projects.

The hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones) highlighted briefly the challenges around the shared prosperity fund. Nations and regions across the UK have long been frustrated by the European aid programmes. West Wales and the valleys has seen spend approach £5 billion since the year 2000. Owing to the complexity of the European Union arrangements, I certainly do not think we have had the best value from that. We can look to the Welsh Assembly’s Public Accounts Committee, business groups statements and communities that have been frustrated by it, and we can all point to specific projects in areas across Wales that have not been what the community really wanted or needed, but that just happened to fit the rules that the European Union set.

Finally, I highlight that we are not a federal country. We are a Union of nations, but even in the most federal of constitutions, the central administration has the power to act and to support. It is absolutely right that the United Kingdom Government have the power to act in support of every part of every constituency wherever you are in this kingdom.

[Richard Thomson]

I rise to support my party’s amendments because I firmly believe that seeking the consent of devolved Ministers represents the absolute bare minimum to respect the devolution settlement in the provisions before us.

Although I am not new to politics, I am comparatively new to this place, and my views on politics and self-government for Scotland were forged in the 1980s and the devolution debates of the early 1990s, well before Scotland had a Parliament of its own. When I speak to young Scots of voting age now, very few of them have any memory of there not being a Scottish Government and Parliament. The idea that there ever would not have been seems alien and absurd—almost as absurd to them as it seemed to me that those institutions did not exist back in the 1990s.

Although I was supportive of devolution at that time, the arguments that I and others made at that time in favour of independence referred to devolution and its potential weaknesses. Those arguments did not find favour at that time. They were that devolution was going to create a subordinate Parliament to Westminster, that without a written constitution, its powers and status could not be guaranteed, and that power devolved is power retained—all those arguments, whatever their essential truth and accuracy, were lost in the assurances given at the time about permanence and respect.

The fact that those arguments about permanence and respect were made by politicians of the standing and character of Donald Dewar no doubt helped enormously. For the past 21 years, by and large, that is exactly how it has been. Disputes over money and policy aside, both Parliaments have co-existed. As Holyrood’s stature has grown, and Ministers have begun to act with the stature befitting a Government, rather than a regional subordinate Executive, so too has Scottish confidence grown. I think it is that, rather than any concern about the integrity of the UK internal market, that seems to be driving a large part of the motivation behind this part of the Bill.

A number of speakers have talked about the current settlement. One thing that the current settlement does give is clarity: if a matter is not explicitly reserved under schedule 5 to the Scotland Act 1998, it is devolved. Unionists who proclaim the parliamentary sovereignty of this place should know that that is because this place legislated for that. Throughout devolution, the Sewel convention has operated, meaning that this Parliament will not ordinarily legislate in areas of devolved competence without the express consent of the Parliaments. It is precisely to protect that principle of consent that my party is putting forward this amendment today, to ensure that under that principle of consent, no action in respect of these powers will be taken without the agreement of the relevant devolved Ministers.

Turning to clauses 46 and 47, I think of the ancient proverb that one should beware Greeks bearing gifts. Scots, through long years of experience, have come to be suspicious of Westminster politicians pledging similar gifts. Scottish voters have long been wary of that. The proposed powers are so wide-ranging, covering promoting economic development, infrastructure, cultural activity, sport, education and training activities, that their motivation is quite clear. Indeed, the right hon. Member for Wokingham (John Redwood), who was in earlier, gave the game away: this is nothing more sophisticated than sticking a great big flag on the side of something and saying, “We paid for that.”

There is no money element to these proposals, but I have to say that if they actually represented additional money, we might be having quite a different debate. However, I know from bitter experience that all that will happen is that the Scottish Government’s funding will inevitably find itself top-sliced—a bit like the Scotland Office having to pay for press officers or private polling—and it will be presented as the return of Scottish taxpayers’ money and UK borrowing, and as being somehow down to the largesse of the Treasury and we should all be grateful for it.

The ability that these measures will give UK Ministers of the Crown to bypass devolution and Scottish Ministers —who are also Ministers of the Crown—and to bypass the democratically elected Government of Scotland to make policy and allocate resources in devolved areas, whether that is in line with the priorities of those elected to lead in those devolved areas or not, represents the biggest single attack on devolution imaginable, short of the abolition of those institutions themselves.

Let us take infrastructure as an example. I find it hard to understand the argument that the Bill could improve that situation. Scottish Governments of all political stripes across many years—decades, indeed—have a record of ambitious investment, whether delivered or planned for the future. The magnificent Queensferry crossing was mentioned earlier. We also have the Aberdeen to Inverness rail improvements, involving more than £200 million of improvements that benefit my constituents to a remarkable extent. We have the central belt rail electrification. We have the Aberdeen bypass, and the Balmedie to Tipperty dualling. We also have the completion, after 50 years, of the central Scotland motorway network.