Oral Answers to Questions

David Mundell Excerpts

Wednesday 26th November 2014 Commons Chamber

[Guy Opperman (Hexham) (Con)]

1. If he will give guidance to the Smith commission on ensuring that its proposals do not hamper cross-border trade with the north of England.

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

At the outset of this process, Lord Smith set out a number of guiding principles underpinning cross-party talks. They included the principle that the proposals should strengthen Scottish devolution and the Scottish Parliament within the United Kingdom, and that they should not cause detriment to the UK as a whole or to any of its constituent parts.

[Guy Opperman]

My constituents campaigned very strongly so that we remained “better together”, and whether that related to farmers, business, trade or joint air passenger duty, it continues. Does the Minister welcome the borderlands initiative between local authorities on either side of the border?

[David Mundell]

I very much welcome the borderlands initiative, which is an excellent example of cross-border working. Councils are working together across the Scottish and English borders to maximise economic and cultural opportunities.

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

I understand that the Smith commission has written to a number of companies asking for their views on the question of what should be devolved. Companies in my constituency are telling me that if Scotland were to be given some of the powers that are being considered, they would leave Scotland. Is that good or bad?

[David Mundell]

The Smith commission has engaged in a widespread consultation with all aspects of Scottish society. I understand that there were some 14,000 submissions, and the commission will obviously look closely at all of them.

[Sheila Gilmore (Edinburgh East) (Lab)]

What everyone wants, in Scotland and in England, is the certainty of knowing how we are to move forward. My party is committed to including a Scotland Bill in the Queen’s Speech when we win the general election next May. Will the Minister’s party make the same commitment?

[David Mundell]

I do not share the hon. Lady’s arrogance, but what I do share is the commitment to delivering the Smith commission’s proposals. We have made it absolutely clear that draft legislation will be produced by 25 January next year, and there will be a commitment to enact that legislation in the next Parliament.

[Angus Robertson (Moray) (SNP)]

A wide range of proposals have been submitted to the Smith commission which would foster economic growth, job-creating powers, and the ability to tackle social inequality. Is the Minister confident that the commission will recommend the devolution of corporation tax, job-creating powers and the setting of a minimum wage?

[David Mundell]

I am not going to prejudge the Smith commission. All that I know in relation to the hon. Gentleman’s proposals is that his party had an opportunity to select him as one of its commissioners so that he could argue for those measures, and, as far as I am aware, it did not do so.

[Angus Robertson]

Following the independence referendum, survey evidence in Scotland showed that 71% of Scottish respondents wanted the Scottish Parliament to control all taxation raised in Scotland, 66% wanted devo-max—that is, the devolution of all areas of Government policy except defence and foreign affairs—and 75% wanted control of the welfare and benefits system to be devolved. Is the Minister confident that the Smith commission will recommend the devolution of those powers?

[David Mundell]

The Smith commission includes two representatives of the Scottish National party, and is seeking to reach cross-party agreement. What we all know is that 55% of people in Scotland—more than 2 million—voted to remain part of the United Kingdom.

[Mr Russell Brown (Dumfries and Galloway) (Lab)]

The Smith commission will report tomorrow. Its report will lay the foundations for greater devolution for Scotland and, hopefully, the devolution of powers from Edinburgh, at the centre, to a more local level. The Minister referred to a closer working relationship between the borderland areas in the north of England and the south of Scotland. Will he guarantee that whatever the Smith commission delivers will add up fiscally, to ensure that it does not work to the detriment of the people of Scotland?

[David Mundell]

That is one of the principles guiding the Smith commission’s work. However, the hon. Gentleman is right to emphasise that, notwithstanding the commission’s recommendations on powers for the Scottish Parliament and more devolution in Scotland, in the south of Scotland we need to continue to work with our friends and neighbours in the north of England.

[Mrs Anne McGuire (Stirling) (Lab)]

2. What recent discussions he has had with his ministerial colleagues on shipbuilding on the Clyde.

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[Ian Murray (Edinburgh South) (Lab)]

9. What steps he is taking to encourage firms in Scotland to pay the living wage.

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

The Government support businesses that choose to pay the living wage, where it is affordable and does not cost jobs. Decisions on what wages to set, above the national minimum wage, are for employers and workers. However, we encourage employers to pay the living wage where possible.

[Jim McGovern]

Last week, Glasgow Celtic, the football club that I support—indeed, I am a season ticket holder—announced that anyone working there who was not on the living wage would be put on to it. That will mean a major increase for many of the club’s employees. Where Celtic leads, many others follow. We have only to look back to 1967 when Celtic became the first British club to win the European cup. They were followed, famously, by Manchester United in 1968—

[Jim McGovern]

What can the Minister do to ensure that more organisations and major employers in Scotland pay the living wage?

[David Mundell]

On this occasion, I share the hon. Gentleman’s view that where Celtic football club has led, others should follow. We want to encourage all employers who are in a position to do so to pay the living wage.

[Ian Murray]

Pay is one of the most important tools in helping to fight poverty, but it also makes perfect business sense. The Government appear to have absolutely no plans to encourage employers to pay the living wage. The Minister will also be aware that the Scottish National party Government have just refused to put the living wage into Government contracts. Should not the Government be supporting Labour’s “make work pay” contracts, which would share tax benefits with employers, thereby encouraging them to pay the living wage?

[David Mundell]

I completely refute the hon. Gentleman’s suggestion that the Government are not encouraging employers to pay the minimum wage where they are in a position to do so and it does not cost jobs. This Government’s commitment to those on low pay is clear from the way in which we have raised the personal allowance. His party’s position is far from clear—Labour claimed that it would reduce the national minimum wage to a level that is actually lower than it is projected to be in 2020.

[Margaret Curran (Glasgow East) (Lab)]

As we approach the first anniversary of the tragedy, I am sure the whole House will join me in remembering the victims of the Clutha helicopter crash that happened in my own city. Our thoughts will be with the victims and their families this Saturday.

Does the Minister agree that the living wage is a means of addressing the scandal of low pay in Scotland, and that tackling low pay should be a higher priority for this Government? In the light of that, can he tell the House how many people in Scotland were paid below the minimum wage in the past year?

[David Mundell]

I join the hon. Lady in highlighting the first anniversary of the terrible Clutha tragedy. It is a credit to all Members of this House and particularly to the people of Glasgow that not just at the time but throughout the past year they have responded to that.

The hon. Lady will know that unlike the Labour Government, this Government have been keen to ease the procedures whereby those who pay below the minimum wage are named and shamed. Earlier this year 25 employers that had not paid the minimum wage were named, three of which were in Scotland.

[Margaret Curran]

That is a most disappointing answer. In fact, 11,000 people in Scotland are paid below the minimum wage, and it is shameful that neither the Minister nor the Government know that figure. In the past two years there has not been a single prosecution, and only two companies in Scotland have been named and shamed. Eleven thousand people in Scotland are not paid what they are entitled to. Given the gross failure of this Government properly to enforce the national minimum wage, should not the Minister apologise to those 11,000 people who have been failed by this Government? He does not even know who they are.

[David Mundell]

It is the hon. Lady who needs to apologise. Anyone watching this exchange would think that there had been were prosecutions under the previous Government. There were absolutely none. If she wants to get her facts right, I can tell her that three companies have been named and shamed in Scotland. They are Sun Shack Ltd in Hamilton, Cargilfield School Ltd in Edinburgh and Perth Hotels Ltd in Perth. If she has the details of additional people who are not receiving the minimum wage, rather than political point-scoring in this House, she should take their details to Her Majesty’s Revenue and Customs so that their employers can be dealt with.

[John Stevenson (Carlisle) (Con)]

4. When he expects the Smith commission to publish its report; and what steps are planned to implement its findings.