Scottish Devolution and Article 50

Calum Kerr Excerpts

Wednesday 15th March 2017 Westminster Hall

[Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)]

It is a pleasure to speak in the debate, Mr Gray. I must admit that I did not originally intend to, but I was impelled to do so by the excellent lead given by my hon. Friend the Member for Edinburgh North and Leith (Deidre Brock). In my brief contribution I want to drive home the message about the importance of doing things right, particularly for big areas such as agriculture and fishing. I shall focus on agriculture.

My hon. Friend the Member for Glasgow North (Patrick Grady) reinforced the principle: if it is not reserved, it is by definition devolved. Let us consider the distinct nature of Scottish agriculture: 85% of our land has less favoured area status; as a nation Scotland is approximately 8.4% of the population; we received 16.5% of CAP and we are approximately 32% of the land mass. We have to have a policy that reflects that profile and the different challenges in Scotland. I am the Scottish National party Environment, Food and Rural Affairs spokesperson and have yet to meet a Scottish farmer who is happy for this place to be responsible for Scottish agriculture—and, by the way, a lot of those farmers are not traditional SNP supporters.

At the moment we have no confidence. To be honest, English farmers do not have confidence in the Department for Environment, Food and Rural Affairs. At the Oxford conference in January, when I stood in for the Scottish Farming Minister, the audience was asked who had confidence in DEFRA to deliver in a Brexit world, and no hand went up until, belatedly, the Farming Minister, sitting in the front row, put his hand up, thinking “At least I should have confidence in my own Department.” The industry across the UK, but especially in Scotland, lacks confidence in this place’s capability to design a UK framework—particularly one that takes into account the distinct nature of Scottish farming.

The hon. Member for Central Suffolk and North Ipswich (Dr Poulter) made an interesting contribution. There is a bigger picture and the hon. Member for Edinburgh South (Ian Murray) reinforced aspects of that. We are not saying that there should not be a level of negotiation within the UK; absolutely there should. There is a need for common frameworks in certain places. Within the common agricultural policy there is a common framework, but there is a level of devolution and Scotland and England have different CAP deployments. However, we are absolutely clear that we must negotiate that as partners—as equals at the table, looking for the common framework and agreeing it. At the moment, all the mood music and the signs suggest a power grab. The message is “Don’t you worry. We are the head of the family. We’ll look after you.” I am afraid that that will not wash with the rural communities in Scotland.

Before I close, perhaps I might reinforce the explanation of why there is a lack of trust and why the Government should actively seek to be as transparent and open as possible about their intention. The fact that they do not do so sends out the wrong signals. It worries people. That is because of our experience. We have heard what happened to fishing; it was “expendable”. Even today, as Brexit negotiations go on, a certain individual from the UK Independence party who leads the charge on many such things is going around TV studios saying “I’m hearing fishing is expendable again.” There is no trust that a UK Government will stand up for Scottish fishing. Let us remember, more fish were caught in Orkney and Shetland than in the whole of England and Wales put together last year. It is overwhelmingly a Scottish industry.

The second area I want to mention is the convergence uplift. It is EU money—€230 million—almost all of which should have gone to Scottish farming. It was distributed across the UK and we got 16%. Scottish farmers see that and think “If they will take money out of my pocket, will they look after me when they design a UK farming system?” I do not think so. The Government must step up and be clear, and if they do not pass on responsibilities the judgment will be at the ballot box.

Commercial Financial Dispute Resolution Platform

Calum Kerr Excerpts

Thursday 15th December 2016 Commons Chamber

[Richard Arkless (Dumfries and Galloway) (SNP)]

I add my thanks to my hon. Friend the Member for East Lothian (George Kerevan) for securing this very important debate, which has caused a number of Members to be contacted by constituents who own small businesses and have been fleeced and mis-sold the most awful and inappropriate hedging products, leading not only to economic disaster but, as many have said, mental health problems; there have also been other effects on health and wellbeing. My hon. Friend made an excellent speech, as always. He set the tone of the debate perfectly by saying that this is a time to move beyond individual cases. Clearly, we all have these cases, but he meant that we need to look beyond discussing them and see whether we can come to some form of permanent solution.

[Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)]

I commend my hon. Friends for turning up in numbers. I am sure that everybody across the House has constituents deeply impacted by this, and it is disappointing, despite Christmas and all, that the House is so poorly attended. Will my hon. Friend join me in praising the work of Richard Samuel, who back in May, when we first looked at this idea, drew the parallel that we have been discussing? Will he commend my hon. Friends for bringing forward—I hope that the Government will see this for what it is—proactive suggestions as to how we improve things? Yes, we rage against the system, but we are trying to be proactive and work with the Government to improve the world for small businesses.

[Richard Arkless]

I entirely agree. My hon. Friend puts his point passionately and very well. It is time for mourning to stop and for solutions to be found.

My hon. Friend the Member for East Lothian made an incredibly important point about the link between low productivity levels in the UK and the threat and the pressure that small and medium-sized enterprises have been under, particularly since 2007-08. There is no smoke without fire. I am convinced, having listened to him, of the causal link between the problems that we are discussing and low productivity of SMEs.

I was particularly struck by my hon. Friend’s comments about arrangements between solicitors’ practices and large banks. I declare an interest of sorts, in that I was a practising solicitor who was seconded to a large financial services organisation. How it works is very peculiar. I was given to the bank for free by my firm, and the bank created a so-called value account. My salary was set into this value account, which triggered work for my firm. We can see the problem that SMEs have in trying to find highly reputable, highly skilled corporate lawyers; they are all working for firms that have these links with the banks. These firms do not bite the hand that feeds them; they need this work. That is another manifestation of the complete inequality of arms between SMEs and large financial services organisations. My hon. Friend was right to say that banks’ terms and conditions—the secret terms of the contract—have evolved over the years, further exacerbating the inequality of arms.

My colleague on the Justice Committee, the hon. Member for Henley (John Howell), made a very interesting point—I was grateful to him for taking my intervention—about alternative dispute resolution clauses in contracts. While I would clearly welcome ADR clauses in all these types of commercial contracts, I am slightly confused, because I have never seen them in the case of these hedging products. As to asking banks to incorporate these clauses voluntarily, it stands to reason that the commercial risk will drive whether they are included. We are talking about risky derivatives. Have we ever seen ADR clauses in hedging product contracts? If not, I have no idea how we could persuade the banks to incorporate them voluntarily, given the risk.

Scotch Whisky Industry

Calum Kerr Excerpts

Wednesday 9th March 2016 Westminster Hall

[Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)]

I am delighted to get to sum up last. I know that my party likes to claim that we are the official Opposition—but I like this new order in Westminster Hall.

It is rare to have the opportunity to sum up with such a good-looking group of MPs. I do not know whether it is to do with the balance in the Chamber. The hon. Members for Salford and Eccles (Rebecca Long Bailey) and for Brigg and Goole (Andrew Percy) are very welcome to join the Celtic brotherhood—and the Minister too. [Interruption.] He has Celtic connections.

We have heard the benefit of an upbringing and affinity with the product we have been talking about, in the amazing lyrical literary references throughout the speeches.

[Roger Mullin]

I have another one. Does my hon. Friend agree with the great Norman MacCaig? I was sitting one time in Sandy Bell’s and said “Norman, would you like another dram?” and he said, “Roger, my family motto is ‘Excess is not enough.’”

--- Later in debate ---

[Calum Kerr]

I thank my hon. Friend for that wonderful intervention. He is here all night, ladies and gentlemen.

It feels slightly superfluous to sum up in this debate; I do not know if anyone has not figured out by now, whether in the Public Gallery or anywhere in the Chamber, that Scotch whisky adds £5 billion to the UK economy. They should do a test, just to see. It has been repeated so much.

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

I look forward to hearing what is clearly going to be an excellent summation of the debate from my hon. Friend.

On the point about investment, will my hon. Friend join me in welcoming the massive investment by Diageo in Scotland, particularly in my constituency, where there has been an investment of £10 million in a state-of-the-art cooperage, and £80 million in a new filling store, at Cambus; £30 million in a new warehouse at Blackgrange Bond; and £1.5 million to expand and upgrade the Diageo global archive? I encourage all Members to come and visit if they have not already done so.

[Calum Kerr]

I thank my hon. Friend for that wonderful intervention—and Diageo thanks her too. I agree that it plays a huge role in our industry—but a positive and constructive one—and is part of the success story.

As well as the £5 billion value that I mentioned, the trade deficit would be 11% higher without Scotch whisky; and there are 40,000 jobs. Every job supports a further 2.7 jobs in the broader economy. One point of particular importance, which has come up in a number of debates—not least in contributions by my hon. Friend the Member for Argyll and Bute (Brendan O'Hara)—is the importance of the industry to the rural economy, where there are fragile economies that people are leaving and where depopulation is a challenge. The industry is a success story in the rural economy.

Turnover in the industry has increased by 27% since 2008, and employment is up 6%. Salaries have risen too. Another challenge in the rural economy is low pay, but salaries in the Scotch whisky industry have risen by 12% and now average £47,000 a year. That is a great track record, and it demonstrates how important the industry is to our economy and country.

Whisky may be our national drink, but it is not a homogenous product, and as my hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford) outlined—when he used the words “alluring” and “full-bodied” I thought he was talking about himself, but it turned out he was talking about one of the whiskies in his region—our malts are highly regional and wonderfully varied. Each area produces its own highly distinctive variations. It is sacrilegious to put Coca-Cola in them, though, and I fear that my hon. Friend the Member for Glasgow North West (Carol Monaghan) has done herself immense damage by what she said. Clearly, she is but a novice, and there is time yet. Perhaps the hon. Member for Brigg and Goole can help there, because he does frequent the bars, I am told. I think the different characteristics are what make Scotch whisky such a wonderful success story. I am with my hon. Friend the Member for Argyll and Bute in that Islay malts are my favourite. Their peaty, smoky nature is just fantastic.

One region of Scotland does not have a distillery at present. As my hon. Friend said, the last time whisky was produced in the borders, legally at least, was in 1837, but times are changing. It shows the success that can be harnessed in all the regions of our country that no fewer than three distilleries are currently planned in the Scottish borders, most of which I represent. R&B Distillers is looking at a site in Peebles, and the Three Stills Company has a £10 million project for a fantastic distillery in the centre of the wonderful town of Hawick. Last week, I visited a new site just outside Jedburgh operated by Mossburn Distillers, which has fantastic and ambitious plans for new distilleries on the site. I witnessed the full scale of its ambition and how significant the operations could be. Taken together, the companies could invest £50 million in the borders economy and create more than 100 jobs. In the borders, the distilleries will of course reflect the history and landscape of the region, as well as making use of our fantastic borders barley and pure water. Indeed, Mossburn is considering names such as “the Borderer” and “the Teviot” for its whiskies. [Interruption.] It is a river.

[Andrew Percy]

It is not the Humber.

[Calum Kerr]

Thankfully not. Those wonderful titles pay tribute to the region’s rich heritage and will help to promote us as the whiskies are sold across the world. Of course, I am sure the distilleries will produce lighter, lowland-style whiskies, and I am sure I am not the only one looking forward to tasting them—they cannot come soon enough, but we will have to wait.

The companies behind the new borders distilleries are certainly entrepreneurial, and they have plans, beyond traditional distilleries, to produce other spirits, including gin. The sites have the potential to be highly popular attractions in their own right, and the visitor centres look fantastic. If I had £1 for every person who has offered to be a taster, particularly at the Hawick distillery’s gin lab, where people can make their own gin, I would be a rich man. I am taking names if anyone here wants to sign up. The sites will be fantastic tourist operations.

I visited Springbank in Campbelltown with a number of friends, and I was struck by the number of people who were there because of the distillery. I met one group from Sweden who had matching blazers, and another group from America had whisky-tasting ties. I am not suggesting that we all had to get into uniform, but it reinforced the huge way in which a distillery puts a town on the map, raises its profile globally, brings more investment and creates more jobs than just those directly involved in the distillery.

[Margaret Ferrier]

I congratulate Speyside Distillers in my constituency. Founded in 1770, it has just secured a £2.3 million funding package to help it grow its market in the far east. Does my hon. Friend agree that the Chancellor should seriously consider duty reduction in next week’s Budget so that all distillers can expand, grow and contribute to the UK economy?

[Calum Kerr]

I agree with my hon. Friend. If the Minister has missed that point, why not reinforce it? I am sure he agrees with us. I notice a lot of nodding, and I am sure it is in agreement that the reduction should be at least 2%.

This is a hugely exciting situation, as is reflected in the energy and enthusiasm of the Members gathered here. Our export market is strong, and the hon. Member for Edinburgh West (Michelle Thomson) mentioned something that I wanted to highlight, too. The planned distillery in Hawick mentioned the duty in India. If we raise 76% in our own country, it puts us in a difficult position to argue for reduced duty elsewhere. Clearly, the Indian situation of 150% is unacceptable. I will be interested to hear the Minister’s comments on what we are doing about that.

We should also remember that the UK domestic market is the third biggest market by volume, with only France and the USA selling more. It still accounts for seven times more sales than China, so its importance to our producers is clear. We have already heard the case, so I will not reiterate how reducing duty is a win-win situation. By reducing duty, although there is not necessarily causality—good word—we might raise more money in total.

People often use the word “iconic” about whisky. I prefer to describe it another way. Whisky is literally the spirit of Scotland. It embraces all the very best aspects of our history and culture, and it is both romantic and emblematic. It uses our finest national ingredients and has strong green credentials. Of course, it is a product of very high quality and reputation. Just as the money it earns helps to bind together the UK economy, so its character and the joys of its depth and warmth bind Scots together as people. Whisky is one of Scotland’s great products and great successes. Now we need the Government to celebrate that success, to build on it and to work with the industry to grow this fantastic drink’s reach and prosperity. I urge the Minister to take that message away today. If he can secure the backing of his colleagues in Government, I am sure that is something to which we would all raise a glass.

Royal Bank of Scotland

Calum Kerr Excerpts

Thursday 5th November 2015 Commons Chamber

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

It is a pleasure to speak in this debate. I should declare that I am an ex-banker but one reformed, once described as a humble crofter on the Isle of Skye.

[Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)]

Never humble!

[Ian Blackford]

I thank my hon. Friend.

I am grateful to the hon. Member for Edmonton (Kate Osamor) for securing this important debate, and I commend the hon. Member for Wycombe (Mr Baker) who provided the House with great detail about how he views the financial issues surrounding the Royal Bank of Scotland.

We keep hearing from the Government about their long-term economic plan, but to have any kind of effective economic plan we need a dynamic banking sector that is fit for purpose and engages in appropriate and responsible consumer and business lending. It is therefore important that we pay cognisance to what is happening to the money supply, and in particular the definition of broad money or M4.

Figures released by the Bank of England for the year to end September 2015 are a cause of some concern. Money supply fell by 0.6%, although I concede that that was largely a result of a fall in wholesale deposits. Worryingly, however, lending fell by 0.1%. There is concern that availability to bank lending for businesses and consumers is running below the rate that can be considered sustainable, and certainly below the level that is consistent with the delivery of sustainable economic growth.

There is also a legitimate debate about what kind of lending we should have, and about interaction with savers—many speakers have already raised that point. We must encourage industrial and commercial investment that focuses on innovation and skills, driving up wages and living standards, and we must have less focus on consumer debt. In Scotland, Scottish Enterprise has a limited but successful investment bank, and we must consider how to support and grow that model elsewhere in the UK.