(11 years ago)
Commons Chamber4. What assessment he has made of the effects on businesses in north-west England of Scotland remaining part of the UK.
The detailed Scotland analysis papers we have published underline the value to businesses across the whole of the United Kingdom of Scotland remaining part of the Union. As it stands, the UK is a true domestic single market and currency union with free movement of goods and services, capital and people.
The Minister will be aware of the encouraging economic signs across the north-west of England, with employment up and a recent regional purchasing managers index showing that growth is higher than in any other region in the UK. Does the Minister agree with me that remaining part of the UK is the best way forward for Scottish business?
I absolutely agree with my hon. Friend that that is the best way forward not just for Scottish business but for business in the whole of the UK. Businesses in his constituency benefit from the single domestic market, which includes Scotland.
I expect that Scotland will vote yes to independence next year and in those circumstances, the best hope for businesses in the north-west of England—and, indeed, businesses throughout England, which sell £50 billion of goods and services to Scotland every year—is the maintenance of sterling in a formal currency union, which was described by the right hon. Member for Edinburgh South West (Mr Darling) as logical and desirable. Does the Minister agree with the right hon. Gentleman or with yesterday’s scaremongering “project fear” nonsense from the Chief Secretary?
I most certainly do not share the hon. Gentleman’s expectation of the outcome of the referendum. He now chooses who to listen to. He used to listen to Mr Jim Cuthbert, who said:
“It’s very difficult to have independence within a currency union. Greece says it all. In any currency union, there are restrictions on individual members and that doesn’t equate to independence.”
Businesses in north-west England and in Scotland need much the same things, so will the Minister tell the House what Mark Allan, Axa UK’s economist, Brian Ashcroft, professor of economics at Strathclyde university, Andrew Goudie and John Kay, former economic advisers to Alex Salmond, and Gavin McCrone, former chief economist at the Scotland Office, have in common on the impact of currency decisions on business if Scotland does not remain part of the UK?
All those eminent individuals know that Scotland continues to benefit from being part of the single UK domestic market, and they know that anyone who votes for independence on the basis that Scotland would keep the pound in a currency union is hanging their coat on a very shoogly peg.
5. What assessment he has made of the effects of the privatisation of Royal Mail on people in Scotland.
8. What assessment he has made of the potential effects on cultural tourism in the UK of a yes vote in the referendum on Scottish independence.
Cultural tourism is thriving in Scotland and across the whole United Kingdom. We want Scotland to remain part of the UK to ensure that there are no unnecessary barriers to Scots visiting great cities such as Liverpool, and that people on the Wirral and across the United Kingdom can enjoy the great cultural experience that is Scotland.
When Liverpool became city of culture we took inspiration from our friends in Glasgow. Given the significant sporting and cultural connections between the cities of the north-west of England and the cities of Scotland, does the Minister think that our thriving visitor economy will be helped or hindered by an international border between north-west England and Scotland?
I can see no benefit to putting any barriers between Scotland and other parts of the United Kingdom, and I am sure our great city of Dundee in Scotland will learn from Liverpool’s experience as it seeks to become the city of culture.
(11 years, 2 months ago)
Commons Chamber5. What discussions he has had with Ministers of the Scottish Government on the use of zero-hours contracts in Scotland.
There is no single legal definition of zero-hours contracts and it is not possible to get reliable estimates. The issue was discussed at the Scottish employability forum last week by my right hon. Friend the Secretary of State for Scotland, the Scottish Cabinet Secretary for Finance, Employment and Sustainable Growth and a range of Scottish stakeholders.
Many employers in Scotland insist that employees on zero-hours contracts be available for work even if work is not guaranteed. The Labour party has pledged to outlaw this practice and the Scottish Affairs Committee, under the chairmanship of my hon. Friend the Member for Glasgow South West (Mr Davidson), has initiated an inquiry. When will this Minister and this Government put themselves on the side of working people?
It is important that our work force remain flexible, but it is also important that they are treated fairly. Officials from the Department for Business, Innovation and Skills have undertaken work over the summer better to understand how the contract works in practice, with a view to taking action if widespread abuse is found.
In June, the Scottish Trades Union Congress and the Scottish Government published, following an analysis, a report saying that more than 250,000 people in Scotland are underemployed. Many of them are on zero-hours contracts and the overwhelming majority of them do not want to be. What are the Government doing to address this scandal? As an afterthought, perhaps the Minister could tell us how many people in his Department are on zero-hours contracts.
The hon. Gentleman will know that the Scotland Office does not directly employ any members of the Department, as I have already confirmed in response to a parliamentary question about zero-hours contracts. As I have just indicated to the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Gregg McClymont), we take this issue seriously. That is why BIS officials have been reviewing the operation of the contracts, and I very much welcome the Scottish Affairs Committee inquiry, which will perhaps provide greater illumination on the specific situation in Scotland.
Zero-hours contracts are undoubtedly misused and abused by many employers but, equally, I have spoken to many employees for whom the contracts fit their lifestyle well. Does my right hon. Friend agree, therefore, that reform is necessary, not abolition, and that nothing shows this better than the number of Labour councils using these contracts?
I do not know whether my hon. Friend is aware of the statement by Labour’s shadow Business Secretary, the hon. Member for Streatham (Mr Umunna), who said:
“We’re not actually advocating an entire ban…sometimes people quite like to use them.”
I think that that is something with which we can all agree.
If I may, I would like to express my condolences and pay tribute to those who lost their lives in the terrible Super Puma crash that happened while the House was in recess.
Until recently, Kyle McLean from Airdrie worked in a sports store. Like thousands of people across Scotland, his zero-hours contract meant that he could not take on other work and some weeks he earned less than £20. What does the Minister plan to do about the exploitative use of zero-hours contracts?
The hon. Lady is right to highlight the Super Puma crash and pay tribute to those who were involved in it.
The hon. Lady has a blind spot when it comes to understanding what her own Government did. She seems to suggest that zero-hours contracts suddenly materialised recently, but they were in existence under the Labour Government, who took no steps to review or do anything about them. I explained in my previous answer that BIS officials are reviewing the contracts, because while we want the employment market to be flexible we also want it to be fair.
Perhaps if the Minister looked at Labour’s policies he would get some ideas. The truth is that while the Government have sold off workers’ rights and made it easier to fire rather than hire, they have no plan to address the circumstances of people such as Kyle. Will the Minister follow Labour’s lead and outlaw the use of exploitative zero-hours contracts? Will he also confirm that the Secretary of State for Scotland is on a zero-hours contract so that he can do the Tories’ dirty work in Scotland?
There is one person in this Chamber who is on a zero-hours contract: the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown). I will take no lessons from the hon. Lady, because Labour did nothing about zero-hours contracts. I have set out clearly that BIS officials are reviewing the matter, because our policy is to have a flexible work force and fair employment policies.
6. What assessment he has made of the potential effect on pensions of Scottish independence.
The “Scotland analysis: Financial services and banking” paper considered private sector pensions. We will be examining state and public pensions in later papers in the series.
The Institute of Chartered Accountants of Scotland highlighted that, on independence, cross-border defined benefit pension schemes would have to be fully funded, which would leave a deficit of some £230 billion. That was dismissed by the First Minister, who said that he would merely call for a derogation from the EU. Given that the Czech Republic has not only been refused that, but has been fined, what does the Minister think will happen to Scottish pension arrangements now and in the future?
Spending on state pensions and public sector pensions is driven by demographics and is set to rise. The UK Treasury and the Department for Work and Pensions absorb the risk of growth in demand and there would be more volatility in spending in an independent Scotland. Those are not my words, but the words of John Swinney. It is a pity that he said them in private, not in public.
10. Does the Minister agree that the ability of the Scottish economy to support the pensions that the people of Scotland depend on will be greater and better if Scotland remains part of the United Kingdom?
I absolutely agree with my hon. Friend, not least because the Scottish Government and the Scottish National party have set out no coherent plans for a sustainable pensions system in an independent Scotland.
The Minister must think that people in Scotland are buttoned up the back. He knows as well as I do that in terms of both revenue and GDP, Scotland spends a lower percentage of its money on pensions than other parts of the UK. Does he accept that the lower life expectancy in Scotland and other demographic trends make it important that decisions on pensions are made in Scotland by Scotland for Scotland?
I know that the people of Scotland are not buttoned up the back. They understand that the Scottish Government and the SNP say one thing in private and another thing in public. In private, John Swinney has made it absolutely clear that the affordability of pensions would be a serious issue in an independent Scotland. That is a fact. [Interruption.]
Order. Far too many noisy private conversations are taking place in the Chamber. I am sure that they will now end so that we can hear Mary Macleod.
(14 years, 1 month ago)
Commons ChamberWe were never promising it on the same day.
Let me deal with the question of contamination. Many previous speakers have indicated the way in which they believe the debate will be contaminated in Scotland because of the spill-over. As time goes on, the main focus of debate will not be on the minutiae of the AV referendum; it will be on the impact when the AV referendum is lost by the Liberals. Will the coalition split? What price will they then demand as a reward, because what they got as a reward before will have come to naught? That will be a matter of immense focus, certainly in Scotland, and I am sure elsewhere. The collapse of the coalition only a year into a Government will be of considerable significance, not only in Scotland, but in Britain and across the world. That will be the main focus of attention and will overwhelm the coverage of the Scottish election.
Some of my colleagues, particularly the Alliance Member, the hon. Member for Belfast East (Naomi Long), spoke about the difficulties of joint campaigning on the referendum. While MPs never usually take the fact that something has been said already as an excuse not to repeat it, on this occasion she has said it perfectly adequately so I will refrain from doing so. But there will also be—a point that she did not touch on particularly—confusion about costs. There will be two elections in Scotland, one for the first-past-the-post seats and one for the list seats, and then there will be referendum. People involved in both those elections will be campaigning on behalf of their parties in both elections and on the yes and no side, and there will be cross-cutting cleavages. The process of allocating expenditure will be almost impossible, I should have thought.
Many of us in Scotland are aware—I am glad to see in his place the right hon. Member for Ettrick, Lauderdale and Tweeddale—is it?
Ettrick, Tweeddale and Lauderdale? No? Well, whatever seat he has, it is quite a big and complicated seat to describe, which is perhaps an excuse for why he was unable to fill in his expenses properly. One can imagine how difficult it will be in that constituency when not only are they filling in the expenses for the first-past-the-post seat and the list seat, but the referendum as well. I wish him well in resolving his difficulties, but one can imagine the problems there being replicated all over the country, with the scope for legal actions and threats. They are enormous. On those grounds alone, if there were not so many other grounds to do so, we should be supporting the amendment tabled by the hon. Member for Harwich and North Essex (Mr Jenkin) and opposing the idea of having these elections on the same day.