Scotland Bill

Angus Brendan MacNeil Excerpts

Thursday 27th January 2011 Commons Chamber

[Michael Moore]

What I absolutely agree with is the process that we went through as three different parties that came together in the Calman commission, examining the options, scrutinising them and coming forward with a balanced set of proposals. We look forward to seeing fully costed proposals from the hon. Gentleman and his colleagues. They have had months to produce them— indeed, years—but as yet we have seen nothing. That is something that the House will note and that will perhaps reduce the bluster on the part of some.

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

To supplement the extensive list that my hon. Friend the Member for Dundee East (Stewart Hosie) read out, may I add the power of the Crown Estate being returned to the Scottish Parliament? Indeed, four or five years ago five Liberal highlands MPs supported that very proposal in a ten-minute rule Bill. Is that still the position of the Liberal party? If so, will the Liberals try to use the Scotland Bill to ensure that the Crown Estate is returned to Scotland?

[Michael Moore]

The hon. Gentleman is tempting me to get slightly ahead of myself. He will see the proposals that we have set out in the Bill, taking account of the evidence that was supplied to the Calman commission.

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[Michael Moore]

I would hate to destroy the cross-party consensus by making any inappropriate reference to a £155,000 million deficit, so I will move swiftly on. On the technical point the hon. Gentleman raises, if he looks again at the Command Paper, he will see that there are provisions to ensure that no Government will be able simply to borrow in order to stack up a capital reserve to spend in the future or to land a subsequent Administration in debt.

[Mr MacNeil]

On a point of clarification, would the right hon. Gentleman like to see power over the Crown Estate devolved to the Scottish Parliament?

[Michael Moore]

Those provisions are not in the Bill. That case has not been put forward in detail either by the Government of Scotland, of whom his colleagues are members, or by others. If such proposals were to come forward some time in the future, there could be a public debate, but as far as the Scotland Bill is concerned, it is consistent with the Calman commission and will make sure, formally, that we have a Scottish commissioner. That will ensure that Scottish interests on the Crown Estate are well represented in future.

As Secretary of State for Scotland, I am fully aware of my role in ensuring that we keep the Crown Estate focused on its interests across the whole of the United Kingdom. I have had two formal meetings so far and another is planned. That is probably as good a record as most recent Secretaries of State. I assure the hon. Gentleman and others who are concerned about the Crown Estate that we will continue to work to make it more accountable, more transparent and more focused on Scotland’s and the rest of the UK’s interests.

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[Michael Moore]

None whatever.

Implementing our new financial arrangements will require detailed work by the United Kingdom Government, the Scottish Government and a range of other stakeholders. We will approach the task in a carefully planned and phased way. The Bill provides the overall framework for the new arrangements, but more than legislation alone will be needed to give effect to the measures set out.

[Mr MacNeil]

On fiscal autonomy, how is it that tiny places such as the Faroe Islands, with a population of 48,000, and the Isle of Man, with 100,000, have infinitely more power than the Scottish Parliament, which represents more than 5 million people? Does the Secretary of State not see an anomalous situation there? The Scottish Parliament could easily have fiscal autonomy and control our fuel price, which in the Hebrides is £1.45 a litre, but in the Faroe Islands is £1.10 and 94p for petrol and diesel respectively.

[Michael Moore]

If the hon. Gentleman wishes to make his case in that way, people may or may not pay attention to him. What I am suggesting is based on Scotland’s size and where it is within the United Kingdom. I respect the fact that he and I fundamentally disagree about our vision for the future of Scotland. Those of us who are committed to the United Kingdom want a sustainable new financial basis on which Scotland is part of the Union. We believe that the Bill provides that basis, unlike the proposals that his party advocates.

The Bill and the Command Paper are not just about finance. The Calman commission examined the whole of the devolution arrangements and found that the division of policy responsibilities in the original Scotland Act worked well. It did, however, make recommendations to improve it further, which are reflected in the Bill. On justice, we will give the Scottish Parliament the power to legislate on air weapons, and give Scottish Ministers the power to set the drink-drive limit and a Scottish national speed limit. On health, we will give Scottish Ministers the power to decide which doctors in Scotland should be able to use drugs for the treatment of addiction. We will give the Scottish Government a formal role in key appointments to the BBC Trust and the Crown Estate.

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[Pete Wishart]

Of course we will not be voting against new powers for Scotland. We will be raising, throughout the Committee stage of the Bill, the dangerous proposed tax powers and the £8 billion that would have been lost to the Scottish people over the past 10 years had they been in place.

[Mr MacNeil]

Surely the big question for Labour Members is whether they want a strong Scottish Parliament to protect Scotland from any cuts that will come from the Tories and the Liberals. In the 1980s, we saw the Conservatives preferring Margaret Thatcher to independence; this time, we see Labour preferring a Tory Government to an independent Scotland. That is the reality.

[Pete Wishart]

rose—

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[Gemma Doyle]

That is very worrying. Before the general election last year, Alex Salmond in fact said that he would prop up a Tory Government if necessary, and as such I agree with my hon. Friend. When I talk to people in my constituency in West Dunbartonshire—

[Mr MacNeil]

Will the hon. Lady give way?

[Gemma Doyle]

Not at the moment.

People in my constituency tell me that their biggest concerns are about jobs. There are reports that there could be 1,700 local redundancies—[Interruption.] That illustrates the difference between Labour and SNP Members. I am talking about jobs in my constituency and not about independence, which is why I am not giving way at the moment. My constituents are concerned that there could be 1,700 local redundancies in my constituency alone as a result of the actions of this Tory-led Government. They are concerned about the impact of the VAT increase, spiralling fuel price increases, and the effects of cuts in tax credits and child benefits on their families. They fear the impact on local hospitals and their children’s schools of the SNP’s cuts in teachers and NHS staff.

[Mr MacNeil]

Would the hon. Lady prefer that powers over aspects of Scottish life that are important for keeping jobs in her constituency and my constituency were controlled in the Scottish Parliament, or would she prefer them to be controlled by the Tory-Liberal Government here in London? Does she prefer the Scottish Parliament or the Tory-Liberal Government?

[Gemma Doyle]

At the moment, I am afraid that I am not too keen on either, but we must work in both Parliaments.

People in my constituency do not share the SNP’s obsession with the constitution, which is another reason why Scots do not listen to the SNP anymore. Who can blame them, given its record in government? Before the Scottish election in 2007, the SNP promised the earth to the people of Scotland, but it has broken promise after promise. It broke promises on schools and promises to scrap the council tax. Its promise to write off student debt and many others were also broken.

People are furious that the SNP Government are doing the Tories’ job for them in Scotland. They are repeating the mistakes of the Thatcher years by cutting key economic budgets, and by cutting teachers and NHS staff by thousands.

[Mr MacNeil]

Will the hon. Lady give way?

[Gemma Doyle]

I have already given way to the hon. Gentleman, so may I make some progress please?

One reason why Scots voted for devolution in ’97 was that they lived through a Tory Government in the ’80s who did not care about us, and who indeed used Scotland as a testing ground for their most reviled policy—the hated poll tax. The establishment of the Scottish Parliament should mean that we in Scotland have some defence against the worst excesses of any Tory Government, but that will not happen now that we have an SNP Government in Scotland.

People in my constituency have been hit by an SNP double whammy. An SNP-run council is mounting an attack on the most vulnerable by imposing unfair charges on the elderly and disabled, and an SNP Government are making cuts to local services that are deeper in my area than across the rest of Scotland. The figures bear that out. The SNP in government has seriously failed the people of Scotland and Scots continue to reject separation in massive numbers. As the SNP continues to pursue its obsession with separation, it becomes more and more out of touch by the day. That was highlighted by the hon. Member for Perth and North Perthshire (Pete Wishart) when he spent his time failing to speak to his amendment, but talking about Antarctica and caravans.

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[David Mundell]

In that regard, the hon. Gentleman’s comments are as incoherent as his comments in relation to the financial provisions. The SNP stands against the Bill, and will divide the House on the basis that the Bill is unacceptable. If the motion is carried, that, as Mr Deputy Speaker has indicated, would be the basis on which the Bill went forward. The position set out by the SNP is incoherent not just financially but constitutionally.

Let me now deal with some other, more sensible contributions. We heard from a number of old hands—old in terms of the devolution process, although not, of course, in terms of years. We heard from my hon. Friend the Member for Epping Forest (Mrs Laing), who described her experience of the scrutiny of the original Scotland Act. We also heard from the hon. Member for Central Ayrshire (Mr Donohoe), who is no longer in the Chamber, but who is a great supporter of devolution whenever the opportunity arises.

The right hon. Member for Gordon (Malcolm Bruce), who has campaigned on these issues for a long time and with some success, made a thoughtful speech. I can inform him that the United Kingdom Government as a whole will review charity law, and that, as we have made clear in the Command Paper, we felt that it would be better to enact the spirit of the Calman recommendations once that review had been completed in the rest of the UK.

A number of Members raised the question of changes in the income tax threshold. The Command Paper makes it clear that the Government would proceed on the basis of no detriment, and that any such changes would be accommodated in the block grant settlement.

I congratulate the hon. Member for East Lothian (Fiona O'Donnell) on the fact that she is celebrating her birthday, although I am slightly concerned that she should enjoy doing so in combat with some members of the SNP. During the course of the debate, I realised that there was an obvious gift for her: the book by my hon. Friend the Member for Milton Keynes South (Iain Stewart). As he revealed that he had a large number of copies, not only the hon. Lady but most of her constituents would be able to receive one.

My hon. Friend the Member for Carlisle (John Stevenson) made some important points about cross-border relations. As both the Secretary of State and I are well aware, people living in the border regions have long been able to cope with the differences on either side of the border. For instance, the well-established difference in the licensing laws that used to prevail did not cause any particular difficulties. The existing devolution settlement does not cause any difficulties, and the revised settlement will not cause any either.

The hon. Member for Livingston (Graeme Morrice) made the important point that strengthening devolution does not undermine the United Kingdom, but strengthens it. As well as giving us a précis of his book, my hon. Friend the Member for Milton Keynes South raised significant points about, for instance, pension plan payments. I can reassure him that the high-level implementation group involving HMRC is examining those issues at this moment.

My hon. Friend the Member for Warrington South (David Mowat) intervened on my hon. Friend the Member for Milton Keynes South on the subject of the Barnett formula, and was subsequently involved in a discussion of the subject. I accept that concern has been expressed about the system of devolution funding, but tackling the deficit is the Government’s top priority, and any changes would await stabilisation of the public finances. The current funding arrangements—in essence, the Barnett formula—are set out in an administrative agreement rather than in statute, but the financing mechanism in the Bill would apply equally well to another way of calculating the block grant. The Bill does not fix the Barnett formula in stone for the future. It neither rules in nor rules out reform of the Barnett formula in the future; indeed, it is designed to be flexible in relation to alternative approaches to funding.

The right hon. Member for Stirling (Mrs McGuire), a seasoned campaigner on these issues, made a number of important points. I can reassure her that the Government are not devolving taxation in relation to savings and unearned income, so most of the things about which she expressed concern will not come to pass. The hon. Member for Glasgow North West (John Robertson), who is no longer in his place, has always been a staunch supporter of the nuclear industry, and he is to be commended for that. However, he will be aware that, after due consideration, the Calman commission concluded that there should be no change to the arrangements for new nuclear power stations in Scotland.

The hon. Member for Glasgow North East made an interesting point about a Scottish office for budget responsibility, and I look forward to hearing more about that in the next stage of the debate. As I have said on previous occasions, I very much welcome the hon. Members for Glasgow East and for Kilmarnock and Loudoun to this House, because they bring a great depth of experience of the Scottish Parliament and of being in government in Scotland—in coalition with the Liberal Democrats, of course. I reassure the hon. Member for Glasgow East, in her absence, that the Government are committed to the Bill’s proposals on airguns and that I listened to the powerful case she made in that regard. Finally, I did welcome the contribution of the hon. Member for West Dunbartonshire (Gemma Doyle). However, although she is one of the younger Members of this House, it appeared that she was somewhat stuck in the 1980s.

My final remarks are for those people who have opposed this process, who have sat on the sidelines every time they have had an opportunity to contribute to this process and who are only able to come forward at the last minute with carping complaints. What I say to them is—

[Mr MacNeil]

rose—

[David Mundell]

I have no time to give way.

I ask those people to reflect, in the few minutes left, on the fact that if they support this process and if their party supports more powers for the Scottish Parliament, they should not press their amendment to a Division. Interestingly, we heard a lot of quotes about academics who support the Calman process but, as Scottish Members will have noted, certain academics were very absent from today’s debate.

I want to finish on a specific financial point. It is absolutely essential that we scotch the idea of an £8 billion deflationary bias that been mentioned repeatedly but has no factual basis. There is no deflationary bias about the financing mechanism that is at the heart of the Scotland Bill. The Scottish Government’s assertions are based on a period when public spending rose faster than tax receipts—the very activity that resulted in record levels of borrowing and debt. That is unsustainable, and it is simply incorrect to infer that the result from that period equates to a deflationary bias. If implemented now, the means of financing would in fact benefit Scotland during the fiscal consolidation. I urge hon. Members to support the Bill.

Question put, That the amendment be made.