Scotland Bill

Callum McCaig Excerpts

Monday 6th July 2015 Commons Chamber

[Callum McCaig (Aberdeen South) (SNP)]

Low pay is one of the key problems of our age, as has been said. The minimum wage is in need of being undermined because it undermines people’s lives. I would be happy for the Scottish Parliament to increase the minimum wage in Scotland and to fundamentally undermine the minimum wage, so that the embarrassment of poverty wages is eradicated right across the United Kingdom.

[Ian Murray]

That is exactly what we want to see. We want the issue of poor wages across the United Kingdom to be resolved in its entirety. The hon. Gentleman will remember that in 1998, many of my colleagues and former colleagues sat all night for three nights in a row to ensure that the National Minimum Wage Act was passed by this House. It eradicated the worst of low pay in our country, such as security guards being paid 60p an hour. As I said, the national minimum wage has become a maximum wage for too many people and we have to drive it up across the United Kingdom to eradicate poor pay. I caution the hon. Gentleman that there is a danger that we will undermine the national minimum wage across the United Kingdom if we fragment it.

--- Later in debate ---

[Mr Allen]

If other hon. Members wish to speak—forgive me, but I did not see anyone else rising—it is a very good reason for me to shut up and sit down.

[Callum McCaig]

Amendment 154 addresses the consultation process on the renewable electricity incentive schemes. Paragraph 41 of the Smith commission report states:

“There will be a formal consultative role for the Scottish Government and the Scottish Parliament in designing renewables incentives”.

Clause 53 provides that that would not apply in relation to

“any levy in connection with a renewable electricity incentive scheme”—

or to anything that the Secretary of State deems to be a minor, technical or administrative change. In the light of recent matters that certain parties seem to think are minor, administrative or technical, but that my party views as a major attack on Scotland’s renewable energy industry, the inclusion of those words gives some cause for concern, as does the rowing back on what was promised in the Smith report.

The fundamentals of this are clear. The all-party devolution committee, about which we have heard much in the last few days of debate, said:

“Clauses 56 and 58 are identical to draft clauses 42 and 44 but Clause 53”—

the one I am talking about—

“has been changed, and does not require the Secretary of State to consult the Scottish Ministers about any levy in connection with a renewable electricity incentive scheme, it is understood that this relates to Contract for Difference—Supplier Operational Levies and Capacity Market—Settlement Cost Levies. These are levy payments made by Suppliers to cover the operational cost of administrating Contract for Difference and Capacity Market.”

Such levies are fundamental to designing renewable incentives. The spirit and letter of Smith demand formal consultation with the Scottish Government. Frankly, I do not understand what the consultation on renewable incentives will be about if it does not include the money required to enable them to happen.

I want to hear from the Minister on this issue, but I have one final point to make about the message that will be sent to the renewable industry in Scotland and beyond if amendment 154 is rejected. Investors are already on edge because of the disastrous handling of the early closure of the renewables obligation. If the promise of meaningful consultation is withdrawn, it prompts the question of what else the Government have in store to wreck Scotland’s renewables potential.

--- Later in debate ---

[Andrea Leadsom]

I think the hon. Gentleman means an interconnector. I am absolutely a huge fan of interconnectors. That is not a part of the Bill, but I can assure him that I am happy to discuss that at any time and to facilitate conversations with the Scottish Parliament. I am, however, quite sure he will not need me to do that and is able to discuss that with them directly.

Our proposals on energy company obligations and fuel poverty are fair to all consumers and align with the Smith commission agreement. I urge hon. Members not to press amendments 149 to 153.

Let me turn to renewables incentives. Amendment 154 would remove subsections (2) and (3) of new section 90C of the Scotland Act 1998, in clause 53, such that changes of a minor, technical or administrative nature would no longer be excluded from the requirement to consult Scottish Ministers, nor those made by the Secretary of State that are not subject to parliamentary procedure. The hon. Member for Aberdeen South (Callum McCaig) has raised his concerns about this area of consultation. Removing subsection (3) would remove the exclusion to consult the Scottish Ministers on any levy in connection with a renewable electricity incentive scheme. Amendment 154 would require consultation not just on the design of renewable incentive schemes, but on their operation. This would not be in keeping with the Smith commission agreement and would lead to over-complex and time-consuming consultations that would affect the smooth operation of the schemes.

[Callum McCaig]

The Smith commission refers to

“a formal consultative role for the Scottish Government and the Scottish Parliament in designing renewables incentives”.

I simply cannot understand or fathom how excluding levies gives the Scottish Parliament a consultative role in designing those incentives.