Oral Answers to Questions

David Mundell Excerpts

Wednesday 22nd June 2011 Commons Chamber

[Graeme Morrice (Livingston) (Lab)]

1. What recent discussions he has had with the Chancellor of the Exchequer on the effects on Scotland of the rate of inflation.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

I have regular discussions with my right hon. Friend the Chancellor of the Exchequer on a wide range of issues, including the state of the economy. Inflation is being pushed higher by rising global commodity prices. This is a global problem that requires global solutions.

[Graeme Morrice]

I thank the Minister for his answer. It is now clear that the Government’s VAT hike in January helped to drive up inflation, which is squeezing family incomes, hitting consumer spending and holding back strong growth. Will the Minister now speak up for families and businesses in Scotland and urge the Chancellor to reverse the VAT rise to help to boost consumer confidence and bring down inflation?

[David Mundell]

As the hon. Gentleman knows, the former Chancellor, the right hon. Member for Edinburgh South West (Mr Darling), said that he would have done exactly the same in relation to VAT, and a cut in VAT would do nothing to reverse global commodity price rises. It would, however, do a lot to reverse the Government’s hard-won credibility for getting the deficit down. Of course, credibility on economic matters does not seem to be important to the Opposition.

[Mr Mike Weir (Angus) (SNP)]

In answer to my written parliamentary question, the Office for National Statistics confirms that, in four of the past five years, the rise in domestic gas prices far outstripped the rate of inflation—this is before the latest rise—while family incomes are at best static. What steps can the Government take to protect already hard-pressed families from these escalating costs in the coming winter?

[David Mundell]

The Government are concerned about the rise in fuel prices, especially gas prices. One of the measures we have taken is to ensure that the poorest families have protection in relation to their fuel costs.

[Ann McKechin (Glasgow North) (Lab)]

I am sure that the Minister will welcome the inquiry Ofgem announced today into Scottish Power’s price rise and the way in which it announced the change to consumers. Does he agree that it is completely inappropriate for energy companies to add to the increased cost of living in Scotland by deciding to hike domestic bills? What personally is he doing about this?

[David Mundell]

There is widespread concern in Scotland about these actions, especially about the recent fuel cost rises announced by Scottish Power. As the hon. Lady knows from previous questions, the Secretary of State and I have raised these issues with the energy companies.

[Ann McKechin]

Although it is very nice to meet up, I think that Scottish consumers are looking for action as they face a rise of an average of £198 a year in their bills while wages are being frozen, prices are rising at well above the target inflation rate and borrowing is now £46 billion higher than expected because of the decrease in economic activity. Does the Minister agree that it is now time for a plan B, and for the temporary cut in VAT that Labour has called for?

[David Mundell]

It will not surprise the hon. Lady when I say most certainly not. In setting out those woes, she has not acknowledged her part as a Minister, and that of her party, in bringing this country to the verge of bankruptcy, or the need to take the tough action that this Government have taken. She also knows that the shadow Chancellor is in a majority of one in setting out his proposals—

[Mr Speaker]

I thank the Minister, but we must move on.

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[Mr Turner]

Does my hon. Friend agree that the last thing we want, having passed the Scotland Bill and with new powers devolved to Wales, is another expensive parliamentary assembly or talking shop in England, as the British Parliament here can cope with English matters, but decided by English MPs?

[David Mundell]

I agree with my hon. Friend. I have always expressed the view that there is no desire for an English Parliament—and the same two people have always written to me afterwards to say that I am wrong.

[Sheila Gilmore (Edinburgh East) (Lab)]

Does the Minister agree that this issue is much more complex than Conservative Members sometimes allow? A good example arose in the debates on university tuition fees before Christmas. That might have been regarded as a purely English issue, but it had tremendous consequences for Scotland.

[David Mundell]

I acknowledge the hon. Lady’s point. This is a complex issue, which is why the coalition Government are committed to establishing a commission to look at it. I hope that it will be able to take evidence from people such as the hon. Lady.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

I am sure the Minister is right when he says that there is no great demand for an English Parliament. Does he not accept that the proposal to have two classes of MPs in this House, which is coming from many supporters of the proposals of the hon. Member for West Worcestershire (Harriett Baldwin), effectively amounts to setting up an English Parliament in this building? Is that not inevitably the road that his Government will go down if they accept having two classes of MPs in this House?

[David Mundell]

I do not acknowledge the hon. Gentleman’s point because the devolution settlement means that different MPs in this House already have different responsibilities, depending on whether they are from Scotland, England, Northern Ireland or Wales. The Government are committed to look at the West Lothian question, which is a substantive issue that the previous Government ignored, and will set up a commission later this year.

[Alun Cairns (Vale of Glamorgan) (Con)]

4. What steps the Government plan to take to ensure a stable economic environment for businesses in Scotland.

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[Mr Alan Reid (Argyll and Bute) (LD)]

6. What recent discussions he has had with the Secretary of State for Transport on the Clyde coastguard station in Greenock.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

I have regular discussions with my right hon. Friend the Secretary of State for Transport on a range of issues of mutual interest, including the future of Scottish coastguard stations.

[Mr Reid]

May I pay tribute to David Cairns, who had been campaigning to save the Clyde coastguard station before his tragic early death? The waters around Argyll and Bute, with all its islands, peninsulas and sea lochs, present a unique challenge to seafarers. If the Clyde coastguard station is closed, however, all the valuable local knowledge of the area held by the people who work there will be lost. Will the Minister draw that to the attention of the Secretary of State for Transport and urge him to keep Clyde coastguard station open?

[David Mundell]

It is appropriate that there is mention of David Cairns, who gave distinguished service as a Scotland Office Minister, at this first Scottish questions since his tragic death. I assure my hon. Friend that his points will have been heard, as they were in the recent Westminster Hall debate in which he took part. The Department for Transport will make no announcement on the future of coastguard stations until the Transport Committee has reported.

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

I associate myself with the comments that have been made about David Cairns.

As the Minister will know, concern is sometimes expressed in Scotland about what he actually does. In a spirit of co-operation, may I offer him an opportunity to allay that concern by expressing, in clear and unambiguous terms, his opposition to the disastrous plans of the Department for Transport to close the coastguard centre in Greenock? Will he stand up for Scotland in that regard?

[David Mundell]

As the hon. Gentleman knows, the Scotland Office always makes the case for Scotland, and for facilities and resources in Scotland. I welcome the approach of my colleagues in the Department for Transport, who say that they will listen to all representations following their consultation and await the report of the Select Committee on Transport.

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

Clyde coastguard is important to the west coast of Scotland. As one who represents a west coast constituency, I believe that we have already suffered from the loss of Oban coastguard a decade or so ago. Does the Minister agree that—as the doughty fighter Anne McLaughlin is always reminding me—we need Stornoway, Shetland and Clyde coastguards on the west coast as a maritime insurance policy?

[David Mundell]

I would characterise the hon. Gentleman himself as a doughty fighter for the station in Stornoway. He has made significant representations, and they have been heard. My colleagues in the Department for Transport will announce their conclusion after the Select Committee has delivered its report.

[Ian Lucas (Wrexham) (Lab)]

7. What recent discussions he has had with the Secretary of State for Business, Innovation and Skills about the transfer to the Scottish Parliament of the power to set rates of corporation tax.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

My right hon. Friend the Secretary of State and I regularly discuss a range of devolution issues with the Advocate-General. We regularly discuss devolution issues in relation to the Scotland Bill, which is delivering the Government’s commitment to strengthening the devolution settlement.

[Anne Marie Morris]

No doubt the Minister is acutely aware of the importance of reform of the common agricultural policy to farmers both in Scotland and elsewhere in the United Kingdom. Given the importance of agriculture to the economy, does he agree that it is essential that we secure a deal for our farmers that is fairer and more transparent?

[David Mundell]

rose—

[Mr Speaker]

Order. The Minister’s mellifluous tones diverted me from the fact that the content of his answer did not relate to the question that had been asked. I am sure that he will now talk about agriculture and not about devolution.

[David Mundell]

Thank you, Mr Speaker. I can inform the hon. Member for Newton Abbot (Anne Marie Morris) that my right hon. Friend the Secretary of State for Scotland was in Brussels last week, where he made the very points that she has just made.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

9. What recent discussions he has had with the Advocate-General on devolution issues.

[David Mundell]

I refer my hon. Friend to my previous answer.

[Miss McIntosh]

As ever, I am grateful to my hon. Friend. Has the Advocate-General yet received an update on the progress made by the expert group set up by the Scottish Government, which is examining the role of the United Kingdom Supreme Court?

[David Mundell]

The Advocate-General wrote to the chair of the Scottish Government expert group, Lord McCluskey, offering a meeting, but has now received a response from the group’s secretariat saying that, owing to their timetable, members of the group have not had time in the first instance to receive submissions or hear evidence. What appears to have happened is that an expert group is set up by the First Minister one week, meets the following week—with no evidence taken in any week—and reports the week after.

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

That was a most disappointing response. Will the Government start supporting the integrity and independence of Scots law, work constructively with the Scots group chaired by the eminent Lord McCluskey and promise to do nothing to reform the Supreme Court until the group has reported?

[David Mundell]

I should have hoped that the hon. Gentleman, like his colleague, Jim Sillars, the former deputy leader of the Scottish National party, would have sought to disassociate himself from the appalling comments that the First Minister has made about Lord Hope, which Jim Sillars described as “foolish” and “juvenile”. [Interruption.]

[Mr Speaker]

Order. There are far too many private conversations taking place in the Chamber. It is very discourteous to the Member asking the question and to the Minister answering it. I want to hear Sir Menzies Campbell.

[Sir Menzies Campbell (North East Fife) (LD)]

What possible confidence can we have in the findings of a group that is unwilling to meet the Advocate-General, who last year established an inquiry for precisely the same purpose as this group has been established?

[David Mundell]

The right hon. and learned Gentleman makes an extremely good point. As I said in my initial response, it seems incredible that a group set up to consider this very complicated issue is not going to take evidence or receive submissions. I am pleased that the Advocate-General has in any event made his information available to the group, so that might give us some confidence in the report it produces.

[Mark Menzies (Fylde) (Con)]

10. What steps he is taking to promote Scotland as a destination for international inward investment.

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[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

This issue was raised in discussions between my right hon. Friends the Deputy Prime Minister and the Secretary of State for Scotland and the First Minister on 9 June. As announced by my right hon. Friends the Chancellor and the Secretary of State on 13 June, the Government are bringing forward to 2011 the power for Scottish Ministers to make prepayments, which will allow work on the Forth replacement crossing to begin.

[David Mowat]

I thank the Minister for that reply. He will be aware that two major bridge schemes are about to take place in the UK: the Forth road bridge, to be funded by the Treasury and by the means that he has just given us, and the Mersey gateway in Cheshire, to be funded substantially by tolls. How can the Government justify that difference in the same country?

[David Mundell]

The justification is devolution; it is a decision of the Scottish Government to proceed with the Forth replacement crossing on the basis that there will be no tolls on it.

The Prime Minister was asked—