David Mundell
Main Page: David Mundell (Conservative - Dumfriesshire, Clydesdale and Tweeddale)Department Debates - View all David Mundell's debates with the Cabinet Office
(8 years, 9 months ago)
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Neil Carmichael (Stroud) (Con)
1. What assessment he has made of the value to the economy in Scotland of UK membership of the single market.
The Secretary of State for Scotland (David Mundell)
Mr Speaker, I am sure that everyone, particularly in Scotland, will share your warm wishes to Andy Murray and Kim Sears on the birth of their daughter.
Latest official statistics published last month show that in 2014 around 42% of all Scottish international exports were destined for countries within the European Union. The value of these exports is estimated at around £11.6 billion.
Neil Carmichael
Does the Secretary of State agree that the package that the Prime Minister will discuss in greater detail with his colleagues on the European Council will bring about much needed reform and be a catalyst for further reform in the future, thus making it quite clear that the single market is good for the United Kingdom and, of course, good for Scotland?
David Mundell
In a reformed EU, we could have the best of both worlds—access to the single market while not being a member of the euro or Schengen. I believe that would be good for Scotland and good for the rest of the United Kingdom.
Angus Robertson (Moray) (SNP)
The single European market and the ability to affect the legislation that governs it is hugely important to the Scottish economy, especially the exporting sectors such as whisky. Will the Secretary of State confirm that, regardless of the ongoing negotiations, he will personally campaign for Scotland and the UK to remain within the European Union?
David Mundell
The right hon. Gentleman will know and will, I am sure, be pleased to have heard that the leader of the Scottish Conservative and Unionist party, Ruth Davidson, has expressed exactly that position.
Angus Robertson
The good news is that I get a second bite of the cherry, so perhaps at the end of this question the Secretary of State will answer my question about whether he will support Scotland and the UK remaining within the European Union. Making a positive case for remaining in the EU will be crucial in the weeks and months ahead, so will the Secretary of State give a commitment not to repeat the grinding negativity of project fear and condemn ridiculous scare stories such as those from the Prime Minister on immigration and the refugee camp in Calais?
David Mundell
I will make my position known when the negotiations have been concluded, but I make this offer to the right hon. Gentleman: if the reform package goes ahead and if I am campaigning to keep Scotland in the United Kingdom I would be delighted to join him, the right hon. Member for Gordon (Alex Salmond) and the First Minister on a platform to make that case.
Mrs Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)
Last night I had the pleasure of meeting the Scotch Whisky Association, which introduced me to some of the finer products from across the border. Simpsons Malt in my constituency produces an enormous amount of the malted barley sold across the border in Scotland to produce this whisky. Does my right hon. Friend agree that expansion into new markets that have nothing to do with the EU is the growth area for the whisky industry?
David Mundell
There are tremendous opportunities for development of the Scotch whisky industry. I think that the Scottish Government, the United Kingdom Government and all parties in the House are united on that. When the President of China was in the United Kingdom recently, we had the opportunity to present his wife with a bottle of her favourite malt whisky from Scotland, and both he and his good lady were able to make clear how important the product is to developing markets in China.
Kirsten Oswald (East Renfrewshire) (SNP)
What discussions has the Secretary of State had with Scottish businesses about the possibility of a UK exit from the European Union, and what concerns have those businesses expressed about the impact it would have on their ability to gain access to, and export to, the single market?
David Mundell
The clearest message that I receive from businesses in Scotland is that they want a short EU referendum campaign so that we can have the minimum amount of uncertainty.
Nic Dakin (Scunthorpe) (Lab)
2. What recent discussions he has had with the Chancellor of the Exchequer and Ministers of the Scottish Government on negotiation of a revised fiscal framework for Scotland.
The Secretary of State for Scotland (David Mundell)
I have regular discussions with the Deputy First Minister to discuss the fiscal framework. The Joint Exchequer Committee met on Monday, and negotiations are ongoing.
Nic Dakin
Yesterday the First Minister wrote to the Prime Minister listing the issues on which agreement still needed to be reached. They were the method for
“block grant adjustment…set-up and administration costs, capital and revenue borrowing, fiscal oversight and dispute resolution.”
Can the Secretary of State confirm that those are all the outstanding issues on which agreement still needs to be reached?
David Mundell
It was established at the start of the discussions that until everything was agreed, nothing was agreed, but considerable progress has been made on all those issues. I was very pleased to learn from the First Minister’s letter that the Finance Secretary would be presenting revised proposals from the Scottish Government. That is what a negotiation involves: it involves both parties presenting revised proposals as the negotiation progresses, and that is exactly what the UK Government are committed to doing.
David Mowat (Warrington South) (Con)
The starting point of the fiscal framework discussions is the Barnett formula, which means that Scotland’s public spending per capita is 15% higher than the United Kingdom average. Does the Secretary of State believe that that differential will be maintained in perpetuity?
David Mundell
My hon. Friend’s views on the Barnett formula are well known. I do not agree with them, and nor do the Government. The Government’s position is that the formula will remain, even in the post-fiscal framework environment.
Pete Wishart (Perth and North Perthshire) (SNP)
The negotiations on the fiscal framework are in a very sensitive and fragile state, and we must be very careful about the language that is used. However, the Secretary of State has used language like “ludicrous” and “chancing his arm” when it comes to one party to the negotiations, which is profoundly unhelpful. If the Secretary of State and the Scotland Office have nothing to offer the negotiations, will the Secretary of State vow to stay right out of it, and leave those who want to find a solution to try to get those negotiations fixed?
David Mundell
I find it a little odd to take a lecture from that particular hon. Gentleman on moderate language.
I do not think anyone can doubt my commitment to ensuring that we have a negotiated fiscal framework, and I am delighted that, in her letter to the Prime Minister, the First Minister set out her strong commitment to achieving such an agreement, because that is the Prime Minister’s position. As I said at the weekend, both sides have done the dance; now let us do the deal.
Mr Kenneth Clarke (Rushcliffe) (Con)
Does my right hon. Friend agree that if we are to have the successful devolution that we all want, we need a firm and sensible framework for fiscal discipline that will last, and will stand the tests of all the unknown economic vicissitudes that may hit the country? Will he assure us that we will not repeat the mistakes that have been made in Spain, where devolved provinces frequently run up unsustainable debts which they then blame on Madrid, causing great difficulties to Spanish Governments who are seeking recovery?
David Mundell
As my right hon. and learned Friend will recognise, the settlement in Spain is entirely different. I agree with him about the need for a sustainable fiscal framework, but, as the Government have made clear in the negotiations, we are willing to accept a review of the arrangements in a few years to ensure that they stand up to scrutiny, and are seen to be fair to both Scotland and to the rest of the United Kingdom.
Ian Murray (Edinburgh South) (Lab)
Mr Speaker, I join you in congratulating Andy Murray and Kim Sears on the birth of their baby daughter. However, their baby daughter might be winning Wimbledon by the time we get a deal on the fiscal framework. The UK and Scottish Governments have now been negotiating it for more than six months, which is longer than it took to negotiate the Scotland Bill itself, longer than it took to strike the historic international climate change agreement and longer than it took the G20 leaders to negotiate $1.1 trillion of support for the global economy. It is clearly the indexation model that is contentious, so will the Secretary of State tell the House why he thinks the per capita index model is not appropriate for the indexation of the block grant?
David Mundell
I have made it clear in previous discussions that we are not going to have detailed negotiations on this matter on the Floor of the House. I have also said that I very much welcome the fact that the First Minister has indicated that the Scottish Government are going to bring forward a revised proposal, just as we have done through the negotiations. I believe that we are within touching distance of striking a deal and I remain optimistic that we will do so.
Ian Murray
The Secretary of State says that he will not provide a running commentary on the fiscal framework, yet both Governments are providing exactly that. The respected economist Anton Muscatelli has said of the fiscal framework:
“I do not understand why it should be such a huge stumbling block.”
The constitutional expert Jim Gallagher has said:
“This fiscal framework is an eminently solvable problem.”
The Prime Minister has spent recent months shuttling around Europe trying to strike a deal on EU reform. Is it not time that he got involved and showed the same enthusiasm for striking a fair deal for Scotland in our own Union as he has shown for the European Union?
David Mundell
The Prime Minister is committed to securing a deal. He has spoken to Nicola Sturgeon about this issue and they have had productive discussions. They are now involved in an exchange of letters, but they are both quite clear that they now want a deal. I am confident, given the position set out in the letter from the First Minister that the Scottish Government are actively engaging in that negotiation process, as are we, that we will be able to get that deal.
Alberto Costa (South Leicestershire) (Con)
3. What discussions he has had with representatives of the North sea oil and gas industry on Government support for that sector.
The Secretary of State for Scotland (David Mundell)
On 28 January, the Prime Minister and I held discussions with industry representatives in Aberdeen on further support for the North sea. As a member of the joint ministerial group on oil and gas, I also engage with key stakeholders, such as the Oil and Gas Authority, on a regular basis.
Alberto Costa
Calor Gas has its largest operational UK site in my constituency in South Leicestershire. A number of residents in the Scottish highlands and other rural areas rely on Calor Gas, which receives a large part of its Scottish gas supply from the North sea. Does my right hon. Friend agree that, as a result of the support that the UK Government are able to provide, we are much better placed to absorb the fall in oil prices than would have been the case had Scotland been an independent country?
David Mundell
I acknowledge the importance of Calor Gas and all those who supply off-the-network energy to people living in rural Scotland. On my hon. Friend’s wider question, he makes an important point about the ability of the United Kingdom as a whole to absorb the change in the oil price.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
What discussions has the Secretary of State had with the Chancellor about continued funding for seismic surveys on the UK continental shelf?
David Mundell
I am sure that the hon. Lady welcomed the Prime Minister’s announcement when he was in Aberdeen of a £20 million contribution to a second round of new seismic surveys.
Sir Alan Duncan (Rutland and Melton) (Con)
The severity of the collapse in global oil prices carries with it the danger that a number of fields in the North sea will suspend production and perhaps never resume it. Given that this would represent a serious loss of national assets and national infrastructure, may I invite the Secretary of State to have further discussions with the Chancellor in advance of the Budget to try to ensure that these fields are not lost forever and that they remain an important part of our national economy?
David Mundell
It will not surprise my right hon. Friend to know that that issue was part of the discussion with the Prime Minister, Fergus Ewing from the Scottish Government and representatives of the oil and gas industry at the recent meeting in Aberdeen. The Prime Minister made it very clear that he would look at any specific request or proposal in relation to supporting the industry in the forthcoming Budget.
Anne McLaughlin (Glasgow North East) (SNP)
4. What recent discussions he has had with the Secretary of State for Work and Pensions on the effects of the Government’s welfare programme on social and economic inequalities in Scotland.
Sue Hayman (Workington) (Lab)
6. What discussions he has had with the Secretary of State for Transport and Ministers of the Scottish Government on the effect on communities in Scotland of the partial closure of the west coast main line.
The Secretary of State for Scotland (David Mundell)
I have had a number of discussions with the Department for Transport and others to ensure that the closure of the Lamington viaduct, which is in my own constituency, is addressed as quickly as possible. We remain absolutely committed to working together with all parties to reopen the west coast line in the first week of March.
Sue Hayman
I apologise for my lack of voice. The closure of the west coast main line has a huge impact not only on the economy of southern Scotland, but on Cumbria, too, as it is a strategic cross-border crossing on which many businesses in my constituency rely. I was pleased to hear the Secretary of State say that it will be open in the first week of March, as it is so important. Will he confirm that the entirety will be open by 1 March?
David Mundell
I welcome the hon. Lady’s comments because, as she will be aware, my own constituents who use Lockerbie station are among those most affected by these changes. We are determined to get the west coast main line fully reopened in that first week in March.
John Nicolson (East Dunbartonshire) (SNP)
The Prime Minister claims that he will get a good deal for Britain in the European Union. Would the Secretary of State like to see the United Kingdom play the same role and have the same powers in the EU that he claims Scotland currently has in the UK?
Mr Speaker
That was quite tangentially related to the west coast main line, but I hope that the dexterity of the Secretary of State will admit of an answer.
David Mundell
Mr Speaker, the west coast main line is one of the most important routes within the United Kingdom to Europe via London. I have set out my position in relation to the EU referendum. If the SNP genuinely wants Scotland to remain in the EU, it is important that, rather than concentrate on process issues, it gets out and campaigns for it.
Mr Graham Allen (Nottingham North) (Lab)
7. What recent discussions he has had with Ministers of the Scottish Government on the effect of devolution on the powers and autonomy of Scottish local government; and if he will make a statement.
The Secretary of State for Scotland (David Mundell)
I do not know whether the hon. Gentleman has had the opportunity to read my speech of 21 December, in which I set out that I fully support the devolution of power from Holyrood to local communities, as Lord Smith recommended in his commission agreement. This is the responsibility of the Scottish Parliament to implement, and I encourage them to do so.
Mr Allen
Will the Secretary of State condemn those who use devolution to centralise power in Holyrood—whether it is the centralisation of the police, the fire service, health spending, local government spending, courts, colleges and enterprise companies? Will he ensure that he stands together with those who feel that devolution does not stop at Holyrood, but goes down to the Scottish local authorities and to the Scottish people?
David Mundell
I absolutely agree with the hon. Gentleman, and I can tell him the best way to achieve it, which is, under Ruth Davidson, to elect more Scottish Conservative MSPs to the Scottish Parliament.
Philip Boswell (Coatbridge, Chryston and Bellshill) (SNP)
In the interests of the record, can the Secretary of State confirm that, under the powers that are being devolved as part of the current Scotland Bill, the Scottish Government will be able to vary rates and bands of the Scottish rate of income tax—[Interruption.]
Mr Speaker
Order. Members need to learn the merits of the blue pencil. If they used the blue pencil and questions were shorter, they would benefit.
David Mundell
The Scottish Parliament will indeed take on those very significant tax powers, which it will be able to use as it sees fit. I hope it will use them to make Scotland a more attractive place for business and commerce and to grow the Scottish economy and the Scottish population.