Oral Answers to Questions

David Mundell Excerpts

Wednesday 11th January 2012 Commons Chamber

[John Robertson (Glasgow North West) (Lab)]

2. What assessment he has made of the effect of the autumn statement on child tax credit payments in Scotland.

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

The welfare system must remain fair and affordable, while protecting the most vulnerable. Most working-age benefits, benefits for disabled people and the basic state pension will increase by 5.2% in April. In order to remain on course with the debt consolidation plan and meet their fiscal mandate, the Government will increase the child element of child tax credit by the rate of inflation.

[John Robertson]

According to the House of Commons Library, the Government’s decision not to proceed with the £110 increase in the child element of child tax credit will take £41 million away from nearly 400,000 children in Scotland alone. Worst hit in Scotland will be Glasgow city, where 44,000 children are set to miss out on £4.8 million. When will the Secretary of State stand up for the children of Scotland?

[David Mundell]

The Government are standing up for the children of Scotland. That is why our priority is sorting out the mess that the Labour Government made of our economy. The hon. Gentleman would do well to heed the words of the former Secretary of State for Scotland, the right hon. Member for East Renfrewshire (Mr Murphy):

“The truth is the Labour party would have to make cuts if we were in power.”

[John Stevenson (Carlisle) (Con)]

We all accept that these are difficult economic times, but does the Minister agree that one of the most effective ways of helping the lowest-paid families is raising the income tax threshold to £10,000 and beyond?

[David Mundell]

I entirely agree. The measure has had a significant impact in Scotland, and more than 2 million basic-rate taxpayers will benefit from it during the current Parliament.

[Anas Sarwar (Glasgow Central) (Lab)]

After another week that has been dominated by political debate and headlines relating to Scotland’s constitution, we must not ignore a report by End Child Poverty showing that 50% of local authority areas in Scotland contain wards in which 30% of children are living in poverty, and that in some wards in my constituency the figure is 50%. What action is the Secretary of State taking, along with the Scottish Government, to ensure that every child in Scotland is given the best start and opportunities in life?

[David Mundell]

The hon. Gentleman raises important issues, such as the fact that many of the levers relating to child poverty rest with the Scottish Government. As a result of the autumn statement, the Scottish Government received more than £500 million in additional revenue. I should have thought it would be better if they focused on how to deploy that revenue to deal with such problems as child poverty than to obsess about the constitution.

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

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

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

My right hon. Friend the Secretary of State and I firmly believe that Scotland is the ideal destination for international inward investment, and we have taken a range of actions to promote such investment. My right hon. Friend recently led the largest ever Scottish trade delegation to Brazil to promote closer business links with a key emerging market for the Scottish economy.

[Alun Cairns]

Does my hon. Friend accept that, in an ever more competitive world, uncertainty about independence has not helped the cause of Scotland or any other part of the United Kingdom that is seeking to attract much-needed inward investment?

[David Mundell]

I entirely agree with my hon. Friend, which is why I believe it is better that a referendum on Scottish independence be held sooner rather than later.

[Angus Robertson (Moray) (SNP)]

In contrast to the previous intervention, will the Minister acknowledge that international companies investing in Scotland since the re-election of the Scottish National party Scottish Government include INEOS, PetroChina, Dell, Gamesa, Amazon, Hewlett Packard and Mitsubishi Power Systems? Does he acknowledge that and welcome the investment?

[David Mundell]

I acknowledge that those companies have invested in spite of the uncertainty. We should consider the level of investment that Scotland could achieve if there was not that uncertainty.

[Angus Robertson]

That is the usual mantra that we hear from Government Members. Will the Minister respond to Scotland’s leading entrepreneur, Jim McColl, who said on this very subject that business is “not concerned” about the

“independence referendum…What many of us in business are convinced about is that a productive and prosperous future for this country depends on securing real economic powers for the Parliament through constitutional change”?

Will the UK Government drop their foolish conditions, so that we can secure that change in the autumn of 2014?

[David Mundell]

I am sure the hon. Gentleman will agree that Mr McColl is entitled to his opinion, as is any other citizen of Scotland. I am sure you will encourage them, as your own party’s Scottish Government already have, to contribute to our consultation on the independence referendum.

[Mr Philip Hollobone (Kettering) (Con)]

Does my right hon. Friend believe that were Scotland to become separate from the United Kingdom, and were it to be forced to join the eurozone as a condition of re-entry into the European Union, that would hinder or help inward investment into Scotland?

[David Mundell]

Uncertainty over Scotland’s position in the EU, and uncertainty over which currency Scotland would use if it were ever to become independent, would certainly hinder inward investment into Scotland.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

4. How many young people are not in employment, training or education in Scotland.

--- Later in debate ---

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

5. What assessment he has made of the effect of the autumn statement on levels of poverty in Scotland.

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

The Government took action at the autumn statement to build a stronger and more balanced economy. As a result, more than £500 million has been added to the existing Scottish budget by the UK Government, which provides the Scottish Government with additional resources in these uncertain times.

[Cathy Jamieson]

I thank the Minister for that answer. Does he agree that one of the most important ways of tackling poverty is ensuring full employment? Does he therefore share my concern that Mahle Engine Systems in my constituency seems set to remove jobs from an area hit by high unemployment, taking those jobs out of Scotland and out of the UK?

[David Mundell]

I would be very disappointed if that were the case. I know that the hon. Lady is a doughty campaigner for employment in her constituency. We must continue to stress the benefits of employers remaining in Scotland, which is why the current constitutional uncertainty is so damaging.

[Mr Jim Hood (Lanark and Hamilton East) (Lab)]

On Monday, when 700 of my constituents employed by WJ Harte Construction returned to work, they were told that the company had gone into administration, without any consultation whatsoever. I am told that Scottish Enterprise and the trade unions were not even aware of this. The MSP was not aware of it, and the MP certainly was not. The company was taken over by a venture capitalist more than two years ago, when it had a turnover of £100 million. It has now been run into the ground and the executives have run away with the money. Will the Minister meet me to discuss what we can do to save as many of these 700 jobs as possible? This is a disgraceful situation.

[David Mundell]

Obviously, as a fellow south Lanarkshire MP I am very disappointed to hear what the hon. Gentleman has to relate, and I should be very pleased to meet him to ensure that employment continues to be secured in south Lanarkshire.

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

6. What discussions he has had with the Secretary of State for Work and Pensions on the work capability assessment in Scotland.

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

My right hon. Friend the Secretary of State and I are in regular contact with Ministers from the Department for Work and Pensions on a range of issues concerning welfare reform. We also recently met Professor Malcolm Harrington to discuss his second review of the work capability assessment.

[Tom Greatrex]

I thank the Minister for that answer. I am sure he will be aware of a report published today by Citizens Advice entitled “Right First Time?”, which examines the high level of incorrect and inaccurate decisions made in the work capability assessment. Given the amount of money that Atos Healthcare receives from the public purse for undertaking these assessments, is it not now time for the Government to consider the report’s recommendation that financial penalties be imposed on Atos for a number of those incorrect assessments? [Interruption.]

[David Mundell]

This was one of the issues that the Secretary of State and I discussed with Professor Harrington, and as he prepares his further report, this is inevitably one of the issues he will address. [Interruption.]

[Mr Speaker]

Order. There are far too many noisy private conversations taking place in the Chamber. I would like to hear Dame Anne Begg.

[Dame Anne Begg (Aberdeen South) (Lab)]

Now that the move from incapacity benefit to employment and support allowance is well under way, anecdotally, it would appear that Atos is finding it very difficult to carry out the necessary work capability assessments, so there could be extra delays. Will the Minister please engage with his fellow Ministers in the DWP to make sure that Atos can deliver on the contract?

[David Mundell]

I can certainly assure the hon. Lady that I will pass on her concerns to the Department.

--- Later in debate ---

[John Mann (Bassetlaw) (Lab)]

12. What comparative assessment he has made of the level of subsidy from the public purse for postal, transport and health services in Scotland and the north of England.

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

Health and large aspects of transport are devolved areas, and it is for the Parliament in Scotland to decide how to allocate its budget. The Government have provided an annual subsidy to Post Office Ltd of £150 million for the last financial year and £180 million for this financial year. The subsidy is not distributed by country or region.

[John Mann]

Does the Minister think it would help the forthcoming debate if all the figures were made public so that my constituents and others can fully participate?

[David Mundell]

I absolutely agree that the debate on the independence of Scotland should be based on facts and on the issues. That is why we need to move on from the process and get on with the referendum.

[Andrew Percy (Brigg and Goole) (Con)]

The question of the referendum on Scotland is not a matter just for the Scottish Government or for the Scottish people. How and when will my constituents in England be consulted on this important matter?

[David Mundell]

My hon. Friend’s constituents have the opportunity to be represented on these issues through him in this House.

The Prime Minister was asked—