Oral Answers to Questions

David Mundell Excerpts

Wednesday 6th December 2017 Commons Chamber

[Tony Lloyd (Rochdale) (Lab)]

1. What recent discussions he has had with (a) the Scottish Government and (b) Cabinet colleagues on the roll-out of superfast broadband in Scotland.

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

May I start by paying tribute to Jimmy Hood, who died earlier this week? Jimmy was formerly my neighbouring MP and a constituent, and although I have to say that we did not agree on very much, we always got on very well. I remain grateful to Jimmy for his help and support when I was first elected to this House. Jimmy would have been proud to see himself as a traditional Labour man through and through, a fighter for mining communities and mining interests and, obviously, a parliamentarian of 28 years’ standing who held many important roles in this Parliament. Our thoughts are with Marion and his family at this time.

I have regular discussions with Cabinet colleagues, the UK Minister for Digital and the Scottish Government regarding the roll-out of superfast broadband. Just last week, the Minister for Digital met the Scottish Government’s Cabinet Secretary for the Rural Economy and Connectivity to discuss broadband roll-out and the delays that we have seen from the Scottish Government.

[Tony Lloyd]

May I join the Scottish Secretary in paying tribute to Jimmy Hood? Jimmy was a friend of mine, and a friend of many of us here. He would have appreciated my saying that he was a bear of a man, and our Parliament was better for him and his kind.

On broadband roll-out, the Prime Minister recently told the House that the Government intend to work through Scottish local authorities. Will the Secretary of State tell us exactly how he will work with local authorities to ensure that, as we roll out broadband, it is delivered to the homes, communities and businesses that are not yet properly connected?

[David Mundell]

I thank the hon. Gentleman for that question. The Minister for Digital made it very clear that his approach to local authorities was based on the fact that the Scottish Government, who previously had responsibility for the roll-out, are three years behind on rolling out broadband in Scotland, and that is not good enough for people living in any of Scotland’s local authority areas. The Minister and I believe that local authorities will give greater priority and expertise to this task than the Scottish Government, which is why we are engaging with them.

[John Stevenson (Carlisle) (Con)]

Does the Secretary of State agree that the borderlands initiative is a real opportunity to ensure that digital connectivity in that area is greatly improved, which will enhance the economy of the borderlands area?

[David Mundell]

I absolutely agree with my hon. Friend. Connectivity is at the heart of the proposal that the five cross-border local authorities have brought forward in the borderlands package. My hon. Friend will be aware that the original intention for the roll-out of broadband in Scotland was to focus on the south of Scotland but, in their centralising way, the SNP Scottish Government put a stop to that.

[Ged Killen (Rutherglen and Hamilton West) (Lab/Co-op)]

10. I echo the Secretary of State’s comments about Jimmy Hood, who will be sadly missed by all on this side of the House.Superfast broadband is very important for those who want to access banking. There are now more cash machines in this House than there are on Cambuslang Main Street in my constituency. What discussions has the Secretary of State had with the Royal Bank of Scotland about its programme of branch closures?

[David Mundell]

I very much accept the point that the hon. Gentleman makes. It is not good enough for RBS to say that people can rely on internet and mobile banking when so many people in Scotland do not have access to the internet or effective mobile services. When I meet the Royal Bank tomorrow, I will convey the concerns—I think from across the House—about its programme of closures.

[Chris Law (Dundee West) (SNP)]

12. In an area that is entirely reserved, the UK Government allocation of £21 million to Scotland’s R100 programme—the Reaching 100% programme—is less than the amount that Devon and Somerset received. Is the Secretary of State not ashamed that, on his watch, he has allowed Scotland to be so chronically underfunded?

[David Mundell]

This is not even about funding; it is about spending the money and taking action to roll out broadband. Three years ago—I repeat, three years ago—there was an allocation of funding, and no action has been taken to procure the roll-out.

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

Does the Secretary of State not think the Scottish Conservatives should just stop embarrassing themselves on the issue of broadband? Thanks to the added value of the Scottish Government’s investment, we have the fastest broadband roll-out in the whole of the UK. Without that investment, only 41% of premises in my constituency would have access to fibre broadband; instead, 82% have. In the Secretary of State’s constituency, the figure is 80% instead of 39%. Perhaps the Scottish Conservatives should avail themselves of Scottish broadband and google how not to embarrass themselves in this House?

[David Mundell]

If anyone has embarrassed himself, it is the Cabinet Secretary for the Rural Economy and Connectivity, who sent out 35 tweets to tell people what a good job he was doing. The First Minister of Scotland sent my hon. Friend the Member for Angus (Kirstene Hair) a seven-tweet thread to tell her what a good job she was doing. People up and down Scotland who do not receive adequate broadband services know who is to blame: the Scottish Government.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

2. What discussions he has had with the Chancellor of the Exchequer on the effect of the autumn Budget 2017 on the level of Scotland’s revenue budget.

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[David Duguid (Banff and Buchan) (Con)]

7. What progress the Joint Ministerial Committee (EU Negotiations) is making.

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

The Joint Ministerial Committee (EU Negotiations) provides a valuable forum for the UK Government and devolved Administrations to discuss EU exit. We took an important step forward at the last meeting in October by agreeing a set of principles to govern the consideration of frameworks. Another meeting will be held next Tuesday, and I hope to see significant progress then.

[Kevin Foster]

I welcome the constructive approach that is being taken to the Joint Ministerial Committee. Does my right hon. Friend agree that it is vital that both sides keep this up and make real progress on the substance, so that as we leave the EU we have a stronger Scottish Parliament as part of a stronger United Kingdom?

[David Mundell]

I agree with my hon. Friend. I look forward to the opportunity to continue the good progress that we are making in our framework discussions, which will lead to significantly more powers for Holyrood while maintaining the integrity of the UK’s internal market.

[David Duguid]

As my right hon. Friend will know, fishing is a totemic industry in my constituency of Banff and Buchan, where there is real concern that the Scottish Government want to take Scotland back into the common fisheries policy. Can he reassure me that in all conversations and negotiations in the JMC (EN), he stands firm on taking Scotland’s fishermen out of the CFP, and keeping them out?

[David Mundell]

In his short time in this Parliament, my hon. Friend has already come to be seen as a champion for the fishing industry. I can give him an absolute guarantee: unlike the Scottish National party, which would take us straight back into the common fisheries policy, this Government will take Scotland and the rest of the UK out of that discredited policy.

[Ian Murray (Edinburgh South) (Lab)]

The Secretary of State rightly argued in September 2014 that if Scotland left the United Kingdom, there would be a barrier at Berwick because of Scotland leaving the UK single market. Can he tell the House why it is any different for the island of Ireland? Is not his Brexit shambles a threat to the United Kingdom?

[David Mundell]

I have been, and remain, absolutely clear that nothing will be done in any Brexit deal that will threaten the integrity of the United Kingdom, and particularly Scotland’s part in it.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

Given the miasma of despair that hangs over this dying Government, Scotland needs a competent and cogent voice at the Cabinet table. To prove that that voice is his, will the Secretary of State tell us his red lines, in Scotland’s interests, that he has laid out to the Prime Minister?

[David Mundell]

I am quite clear that my red line is the integrity of the United Kingdom, and keeping Scotland in the United Kingdom, which people in Scotland voted for in 2014. We are leaving the EU as a United Kingdom, and nothing that the SNP does will stop that.

[Mims Davies (Eastleigh) (Con)]

5. What steps the Government plan to take to ensure that Scotland benefits from the new industrial strategy.

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

The industrial strategy is a comprehensive plan for boosting productivity to raise the earning power of people and businesses. We have been working constructively with the Scottish Government, who hold many of the policy levers that will help to make the industrial strategy a success in Scotland. We have proposed a review of inter-agency collaboration to maximise the coherence and impact of both Governments’ work in Scotland.

[Mims Davies]

This UK-wide industrial strategy is extremely welcome in my constituency. Southampton airport connects Eastleigh to Edinburgh and Glasgow by two busy routes across the UK. Does the Secretary of State agree that regional airports and vital connectivity will increase prosperity in Scotland and England?

[David Mundell]

I was delighted to hear that Edinburgh airport has had its busiest year ever, so I agree absolutely with my hon. Friend and recognise that regional airports across the UK make a vital contribution to the economic health of the whole country. That is why we are developing a new aviation strategy that will consider how best to encourage and improve domestic connectivity, to the benefit of both Scotland and the whole United Kingdom.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

First, may I associate myself and my Liberal Democrat colleagues with the Secretary of State’s comments about the late Jimmy Hood? Every inch of his not insubstantial frame was Labour, but he was always capable of moments of humour and kindness across the party divide, and I am sure that he will be fondly remembered in the House and beyond.

If the industrial strategy is to reach all parts of the United Kingdom, it should be an opportunity for Scotland to develop its potential for wave and tidal power. That will require a dedicated funding stream. What is the Secretary of State doing in collaboration with his colleagues in the Department for Business, Energy and Industrial Strategy to ensure that we get that dedicated funding stream?

[David Mundell]

My colleagues in that Department are well aware of the issues that the right hon. Gentleman raises, which are important in ensuring the development of tidal energy in particular. We will continue to look at what funding can be made available for that.

[Theresa Villiers (Chipping Barnet) (Con)]

Will the Secretary of State ensure that the Government support Scotland’s efforts to be at the forefront of the clean energy and technology industries, which are crucial to our future economic prosperity?

[David Mundell]

I absolutely will do that. My right hon. Friend will know that, at the recent conference of the parties event in Germany, there were considerable efforts on the part of the whole United Kingdom—the Scottish Government working with the UK Government —to deliver just that.

[Martin Whitfield (East Lothian) (Lab)]

At the last Scottish questions, the Secretary of State said that he had shared analysis with the Scottish Government. This morning we discovered that there is no impact assessment, so what analysis was shared with the Scottish Government?

[David Mundell]

First, the material that has been provided to the Exiting the European Union Committee has also been provided to the devolved Administrations. The position was—and is—that officials from the UK and Scottish Governments are working together on the basis of analysis that they have both done.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

6. What recent discussions he has had with Cabinet colleagues on devolving powers to Scotland after the UK leaves the EU.

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[David Linden (Glasgow East) (SNP)]

14. What recent discussions he has had with Cabinet colleagues on devolving powers to Scotland as a result of the UK’s withdrawal from the EU

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

The UK Government are working with colleagues in the devolved Administrations to carefully consider our approach to powers returning from the EU. At the last meeting of the JMC (EN) we agreed a set of principles and I am confident that we can take further steps at the next meeting to be held on 12 December.

[Martyn Day]

Does the Secretary of State agree with his Scottish Tory colleagues who described clause 11 of the European Union (Withdrawal) Bill as “not fit for purpose” and said that it

“needs to be…replaced with a new version”—[Official Report, 4 December 2017; Vol. 631, c.731]?

If so, how does he propose to amend it?

[David Mundell]

I heard the eloquent speech that my hon. Friend the Member for East Renfrewshire (Paul Masterton) made during Monday’s debate. Of course, the Government will respond to the issues that he raised.

[Peter Grant]

The Secretary of State will remember that when the Scotland Bill was on its way through Parliament, we submitted 60 amendments, every one of which he and the Government opposed, but most of which they then adopted through the back door of the House of Lords. Do the Secretary of State and the Government intend to use the same discredited, undemocratic process to correct the faults of clause 11?

[David Mundell]

If the hon. Gentleman has concerns about the procedures of the House of Commons and the House of Lords, he can raise them through the Procedure Committee. He acknowledges exactly what happened: we had a debate; the Government listened and responded; and the Scotland Bill was amended for the better.

[Deidre Brock]

The Federation of Small Businesses Scotland, the Institute of Directors Scotland, the Scottish chambers of commerce, Universities Scotland and many other Scottish organisations have called for a differentiated approach to immigration for Scotland. The problems that my constituents such as Françoise Milne face have crystallised the issue and the human cost. Will the Secretary of State table amendments to clause 11 to support the devolution of immigration and visa controls to Scotland?

[David Mundell]

I do not support the devolution of immigration to Scotland. Three years ago, the Smith commission deliberated on what powers and responsibilities would be held in the Scottish Parliament and what would be held here in Westminster. It was agreed by all parties that Westminster would retain immigration.

[David Linden]

During Monday’s debate on the European Union (Withdrawal) Bill, Scottish Tory MPs said that clause 11 was “not fit for purpose”, but is not the reality that while we hear much talk from them, they are actually just Lobby fodder for the Government?

[David Mundell]

Conservative Members are happy to be judged by our actions. We heard all these things when the Scotland Bill was going through the House of Commons, yet at the end of the process, Lord Smith said that it met his committee’s requirements in full. In this House we will deliver an EU (Withdrawal) Bill that can generate the consent of the Scottish and Welsh Governments.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

May I commend to my right hon. Friend the most recent report of the Public Administration and Constitutional Affairs Committee, which was published last week, on inter-institutional relations in the UK? Will he accept that there is a strong consensus that devolution arrangements are not finished and we need far stronger institutional underpinning of the relations between the four parts of the UK, and that this is an opportunity to achieve that?

[David Mundell]

Of course I have seen my hon. Friend’s excellent report, and the Government are continuing to consider it. Obviously I believe that intergovermental institutions and relations can be improved, and we must continue to work on that.

[Stephen Kerr (Stirling) (Con)]

It is welcome news that good progress was made at the last meeting of the Joint Ministerial Committee, when principles underpinning common frameworks were agreed. Does my right hon. Friend agree that it is vital for Scotland’s two Governments to work together as we leave the European Union, so that the common frameworks that we need to maintain the UK internal market are retained while all remaining powers are devolved?

[David Mundell]

I absolutely agree with my hon. Friend, and that is our approach. I am happy to put on record that I welcome the Scottish Government’s constructive approach to these matters in recent weeks.

[Lesley Laird (Kirkcaldy and Cowdenbeath) (Lab)]

Let me first thank the Secretary of State and other Members for their condolences, on behalf of Jimmy Hood’s family.

On Monday night, the Scottish Tories were herded through the Lobbies and told to trample all over the devolution settlement. Who issued those instructions, the Prime Minister or Ruth Davidson and the Secretary of State?

[David Mundell]

I know that the hon. Lady does not like it, but the Bill is going to be amended not at the behest of the Labour party’s incoherent approach or the Scottish National party’s nationalist approach, but because Scottish Conservatives have tabled practical amendments.

[Lesley Laird]

I welcome that clarification, but the question was really “Why could the Secretary of State not have presented those amendments the other night?” Throughout Monday’s debate his Scottish colleagues acknowledged that there were deficiencies in the Bill, but were unable to name one. Will the Secretary of State now do what they could not? Will he tell us first what deficiencies there are in the Bill, and secondly why they voted for the Bill to be passed unamended when they all knew that it was fundamentally flawed?

[David Mundell]

If the hon. Lady had been in the Chamber at the time, she would have heard the speech made by my hon. Friend the Member for East Renfrewshire (Paul Masterton). He set out very clearly why clause 11 needed to be amended, and what type of amendments would be tabled.

[Tommy Sheppard (Edinburgh East) (SNP)]

May I associate myself and the Scottish National party with the Secretary of State’s comments about the late Jimmy Hood?

We are more than halfway through consideration in Committee of the European Union (Withdrawal) Bill and, in particular, its effect on devolution. I think that the people of Scotland need clarity during this process. The Secretary of State knows that there is widespread concern throughout the House, and in his own party, about the measures in clause 11. He has indicated that there will be amendments, so may I ask him this? Will the Government table amendments to clause 11, yes or no?

[David Mundell]

Yes.

[Mr Speaker]

I hope that the hon. Gentleman’s second question is shorter.

[Tommy Sheppard]

May I ask the Secretary of State when that will happen?

[David Mundell]

The answer is that it will happen on Report. We have been very clear about this. The Committee stage is about listening and adapting to issues that have been raised; we have listened to my hon. Friend the Member for East Renfrewshire, and we will table amendments to clause 11.

[Christine Jardine (Edinburgh West) (LD)]

8. What discussions he has had with the Scottish Government since the autumn Budget 2017 on plans for capital project funding in Scotland.

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[Mark Menzies (Fylde) (Con)]

11. What steps the Government are taking to increase exports of Scotch whisky.

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

I was delighted to host the ever-popular Scotch Whisky Association reception at Dover House last night. The UK Government work closely with the association, individual distilleries and companies across a range of issues from market promotion to market access.

[Mark Menzies]

The Chancellor’s Budget announcement that he would freeze duty on Scotch whisky is a sign of support for one of Scotland’s great industries. As one of the Prime Minister’s trade envoys, I have recently been in Colombia, Peru and Chile banging the drum for Scotch whisky; does my right hon. Friend agree that the Scotch whisky industry has an enormous opportunity to boost trade with growing markets as we look to build a truly global Britain?

[David Mundell]

I absolutely agree with my hon. Friend that there are huge opportunities for Scotch whisky as we leave the EU, particularly in South America, and I commend him for his activities. I also commend Diageo for the 20th anniversary of the creation of the company on 17 December.

[Mike Amesbury (Weaver Vale) (Lab)]

15. What assessment he has made of the effect of proposed jobcentre closures on local communities in Scotland.

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

We continue to provide excellent support to those seeking work, or who cannot work, through a network of offices which are modern, accessible and meet future requirements. Most jobcentres are staying put. We are merging some neighbourhood offices to create bigger, multi-skilled teams and moving to better buildings, all of which will lead to better customer service.

[Mike Amesbury]

Unemployment in Glasgow has been consistently higher than the national average, child poverty is rising and the use of food banks has increased by 20% in the past two years, so how can the Secretary of State justify closing so many jobcentres, which provide vital support for people to enter the labour market?

[David Mundell]

I set out in my original answer that this was a system to provide better services, and the hon. Gentleman should know that there was a full review of the proposed closures in Glasgow and that the proposal was changed in response to a public consultation.

I would not be doing my duty as Secretary of State for Scotland if I could not in my final words wish Paisley every success in the city of culture competition.

European Union (Withdrawal) Bill

David Mundell Excerpts

Committee: 4th sitting: House of Commons
Monday 4th December 2017 Commons Chamber

[Ian Blackford]

I will give way later.

The Scottish and Welsh Governments have tabled a number of key amendments to the Bill—amendments 164, 165, and 183 to 188—through SNP Members and Labour Members. I am delighted that these amendments have all been selected for debate today, and I will leave my friends to speak to the amendments in their own names. It must be recognised that there is deep disapproval from the devolved Administrations in Cardiff and in Edinburgh about not only how this legislation was drafted, but the extent to which it disrupts the functioning of devolved competences.

During the referendum campaign last year, Scotland was promised all sorts of powers. The Environment Secretary told BBC Scotland that Scotland would get immigration powers with a leave vote. The former Member for Birmingham, Edgbaston promised Scotland powers over fishing and agriculture. But here we are, 17 months after the referendum. There are no new powers for Scotland. In fact, Brexit means Scotland losing powers. [Interruption.] I can hear huffing from the Government Benches. I invite any Government Member to rise now and name one power—just one—that will come back to Scotland as a consequence of Brexit.

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

At the start of his remarks, the right hon. Gentleman sought to give us feedback from the meeting that I held with the First Minister and Deputy First Minister of Scotland and the Minister responsible for exit. If the right hon. Gentleman had been party to those discussions, he would know that all 111 powers were subject to discussion between the two Governments, and the two Governments will bring forward their proposals in due course. This power grab talk and this naming one power—it is pantomime. What this Government are involved in is the reality of negotiating a way forward on this matter.

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[Joanna Cherry]

I ask the hon. Gentleman to seriously consider what he has just said. He said that most of the 111 powers are technical and regulatory. Is he aware that the list affects huge swathes of our justice system in Scotland? Does he consider our devolved justice system and separate legal system to be simply technical and regulatory matters?

[David Mundell]

They are not on the list.

[Joanna Cherry]

They are on the list. You should read it.

[David Mundell]

But not in the form you have said.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

Order!

Oral Answers to Questions

David Mundell Excerpts

Wednesday 25th October 2017 Commons Chamber

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

14. What his policy is on devolving further powers to Scotland as a result of the UK’s withdrawal from the EU; and if he will make a statement.

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

We are in agreement with the devolved Administrations that common frameworks will be necessary in some areas but, as I have made it clear, we expect that there will be a significant increase in the decision-making power of each devolved Administration.

[Patrick Grady]

We hear about this powers bonanza all the time, but the Prime Minister was unable to give us details on Monday, and it seems that the Secretary of State was unable to do so yesterday at the Scottish Affairs Committee. Let us give him another opportunity: can he name one power that will definitely come to the Scottish Parliament as a result of Brexit?

[David Mundell]

We hear repeatedly from the Scottish National Benches about engagement with the Scottish Government, and this engagement will be with the Scottish Government. That is where the discussions are going on in relation to the transfer of powers. I am absolutely certain that, at the end of this process, the Scottish Parliament will have more powers and responsibilities than it does right now.

[David Linden]

Among all the fluff of that answer, there was absolutely no substance. For a second time, may I ask the Secretary of State what new powers will be coming to Holyrood as a result of Brexit?

[David Mundell]

The hon. Gentleman will have seen a list of 111 powers and responsibilities—[Interruption.]

[Mr Speaker]

Order. Mr Linden, you are a most over-excitable individual. Calm yourself. I understand your interest, but the question has been put—[Interruption.] Order. There is no need for excessive gesticulation. Whether or not you like the answer, Mr Linden, you must pay the Secretary of State the respect of hearing it, preferably with courtesy.

[David Mundell]

This is all about grandstanding; it is not about the substantive issue of ensuring a transfer of very significant powers from the 111 powers that were listed to the Scottish Parliament. I believe in devolution. I am committed to devolution and I want to see the maximum number of powers transferred. The Scottish National party does not believe in devolution.

[Martyn Day]

Can I, for the third time, ask the Secretary of State to name one power that is coming? If he is struggling for powers, may I suggest that he considers immigration, so that we can tackle things such as the skills immigration charge, which will be causing a skills shortage and damaging the economy in my constituency?

[David Mundell]

I can give the hon. Gentleman a definitive answer on the last part of his question. Immigration is not being devolved to Scotland. The Smith commission process identified those areas of responsibility to be devolved, and immigration was not one of them. The Scottish National party accepted that report and, on the basis of that, we implemented it in the Scotland Act 2016.

[Gavin Newlands]

I am disappointed that, after three questions, we still have not had an answer. On immigration, I am disappointed that the Secretary of State was disinclined to listen to my hon. Friend the Member for Linlithgow and East Falkirk (Martyn Day). Perhaps he will listen to Nobel laureate Joe Stiglizt who, over the weekend, said that Scotland should have the powers to go its own way in migration policy. He knows a bit more about this than we do, so is he right?

[David Mundell]

I seem to remember that Professor Joe Stiglizt supported independence for Scotland, but the people of Scotland knew a bit more than the professor and decided to keep Scotland in the United Kingdom.

[Colin Clark (Gordon) (Con)]

My right hon. Friend has been crystal clear that Brexit offers opportunities and powers. The SNP talks down Scotland, and specifically Aberdeenshire, the city that has managed to recover from the oil downturn. Why cannot it recognise that the new powers and EU withdrawal offers opportunities to Scotland, specifically to Aberdeenshire?

[David Mundell]

I am disappointed that the SNP is here in Westminster adopting this sort of pantomime approach to the very important issue of powers rather than engaging in a constructive way. Fortunately, it appears that the Scottish Government are adopting a more responsible approach, which is why there are substantial discussions between the UK and Scottish Governments.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

12. May I draw my right hon. Friend’s attention to the new inquiry on devolution and Brexit launched by the Select Committee on Public Administration and Constitutional Affairs? As well as promoting discussion among the governments of the United Kingdom, we want to promote discussion among the parliamentarians in the four parliaments of the United Kingdom in order to resolve these very difficult issues.

[David Mundell]

I very much welcome the contribution to the debate of my hon. Friend’s Committee. Of course, it is very important that there is engagement across Parliaments, and I will be appearing before both the Culture, Tourism, Europe and External Relations Committee and the Finance and Constitution Committee of the Scottish Parliament in the next couple of weeks.

[Luke Graham (Ochil and South Perthshire) (Con)]

My right hon. Friend will be aware that Scotland’s trade with the UK is worth four times as much as its trade with the EU. Does he find it confusing, as my constituents and I do, that the SNP is quite happy for us to stay in one single market, but advocate Scotland leaving the greatest single market right here on its doorstep—the United Kingdom?

[David Mundell]

My hon. Friend makes a good point. It is important that some of the powers and responsibilities that come back from Brussels are subject to UK-wide frameworks so that we can continue to benefit from our internal market in the United Kingdom.

[Ross Thomson (Aberdeen South) (Con)]

Leaving the EU will inherently make the Scottish Parliament more powerful as we take back control from Brussels. Does my right hon. Friend agree that the SNP Government’s confused EU policy would simply see the new powers gained handed straight back to Brussels?

[David Mundell]

It is very important that the 500,000 yes supporters who voted to leave the European Union are absolutely clear that the SNP’s position is to take Scotland right back into the EU.

[Mr Paul J. Sweeney (Glasgow North East) (Lab/Co-op)]

We all know that the Tories have a dubious record on devolution. After all, they opposed the creation of the Scottish Parliament in the first place. In stark contrast, the Labour party laid the foundations for the Scottish Parliament and will always act in its best interests. The Secretary of State says that the Scottish Parliament will get new powers eventually. Well, new powers require additional resources to deliver, so will he tell us how much more money the Scottish Parliament will obtain to fund these new powers? Will he also guarantee, unequivocally, that Brexit will not result in the Scottish Parliament’s budget being cut?

[David Mundell]

I take issue with the hon. Gentleman’s analysis of devolution. I have been in this Parliament to see through both the Scotland Act 2012 and the Scotland Act 2016, which have seen a significant transfer of powers to the Scottish Parliament. I am determined that Brexit will see a further transfer of powers and responsibilities to the Scottish Parliament. Of course, it will need to be done in an orderly way, which will be the purpose of clause 11 of the European Union (Withdrawal) Bill. We will work closely with the Scottish Government and Scottish Parliament to ensure that that transfer of powers is orderly.

[Mr Speaker]

We need to speed up a little bit: a very pithy question, I am sure, from Mr Stephen Kerr.

[Stephen Kerr (Stirling) (Con)]

Does the Secretary of State agree that Scotland’s two Governments—the UK Government and the Scottish Government—should work together in co-operation to get the best Brexit deal for the people of Scotland?

[David Mundell]

Yes.

[Mr Speaker]

Splendid.

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

The London School of Economics has said that a hard Tory Brexit will cost Scotland £30 billion, the Fraser of Allander Institute has said that 80,000 jobs could go and a former Department for Exiting the European Union official has said that Scotland will be get the hardest impact. The Secretary of State said at the Select Committee on Scottish Affairs yesterday that economic impact assessments are available for Scotland. Will he release them to the Scottish people so that they can examine them and know the full scale of this disastrous Tory Brexit?

[David Mundell]

It would not be Scotland questions if we did not hear from the doom-monger-in-chief. Let me be quite clear, as I was in my appearance before his Committee. Both Governments have carried out important analysis, which they will share and discuss, but this Government—as Parliament has approved—will not be publishing anything that would be detrimental to our negotiating position.

[Paul Masterton (East Renfrewshire) (Con)]

In evidence to the Scottish Affairs Committee yesterday, the Secretary of State suggested that a common framework should not be imposed on the devolved Administrations by the UK Government but should instead be the output of a collaborative process. Will he confirm that that is indeed the Government’s position?

[David Mundell]

I very much welcome my hon. Friend’s important question, which gets to the heart of the issue—in marked contrast to the pantomime stuff we had earlier. I can absolutely confirm that. A UK framework does not mean the UK imposes a framework; it means agreement is reached between the UK Government and the constituent parts of the United Kingdom.

[Tommy Sheppard (Edinburgh East) (SNP)]

Four times the Secretary of State has been asked to name a single power that will be devolved to the Scottish Parliament, and four times he has declined to answer. I see little point in asking him a fifth time, but let me ask him this: when will the Government publish a schedule setting out which powers will be devolved to the Scottish Parliament and which will not? [Interruption.]

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[Mr Speaker]

I am grateful for the apology. It was unfair to the hon. Member for Edinburgh East (Tommy Sheppard).

[David Mundell]

If the hon. Gentleman had not prefaced his question with those initial remarks, he would have asked a sensible question. I have set out that there is a dialogue ongoing with the Scottish Government in relation to the 111 powers. I set that out in much more detail at the Committee for which he was present yesterday, so I will not repeat what I said, but I am hopeful that, in early course, we will be able to publish exactly that sort of list.

[Tommy Sheppard]

The right hon. Gentleman’s refusal to name a single power, or even to set a timetable for saying when he will do so, can lead us to only one conclusion: that there are forces in his Government that do not want to see any powers devolved at all. How does that sit with his Department’s responsibility to protect the devolution settlement?

[David Mundell]

I have rarely heard such complete and utter nonsense. I will be judged by the Scotland Office’s record on devolution, and that means implementing the Calman commission in full, implementing the Scotland Act 2016 in full and taking forward the return of powers from Brussels, with a presumption of devolution. We will deliver, and the people of Scotland will see that we have.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

4. What steps the Government are taking to support the marine oil and gas industry in the north-east of Scotland.

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

I have regular discussions with Cabinet colleagues and Scottish Government Ministers on a wide range of issues, including fiscal policy across the UK, fisheries, and the oil and gas industry.

[David Duguid]

My right hon. Friend will know as well as I do the importance of the oil and gas industry in north-east Scotland. Considering the recent decision by the First Minister in Scotland to abolish the Energy Jobs Taskforce, will my right hon. Friend confirm that the UK Government remain fully committed to our North sea industries and will work with colleagues from the Department for Business, Energy and Industrial Strategy to ensure the brightest future for the oil and gas industries in the north-east of Scotland?

[David Mundell]

I absolutely agree with my hon. Friend, and I share his disappointment. Through challenging times, the broad shoulders of the UK Government have supported the oil and gas industry to the tune of £2.3 billion. We have invested in surveying the seabed, established a new independent regulator and invested in developing world-leading infrastructure, research and technology through the Aberdeen city deal. [Interruption.]

[Mr Speaker]

These are very important matters affecting the people of Scotland, and I think we ought to respect them by having some attention to our proceedings.

[Andrew Bowie]

I welcome the announcement last month of the Scottish Business Taskforce. Would my right hon. Friend like to expand on what its role will be with the oil, gas and sub-sea industries, which are predominately based around my constituency?

[David Mundell]

I recognise that my hon. Friend, although a new Member, has become a champion of the oil, gas and sub-sea industries. I can confirm today that the Scottish Business Taskforce, which was announced last month, will meet for the first time on Friday. The taskforce will provide expert advice and guidance on how best to support our most important sectors—not least oil, gas and sub-sea—and strengthen Scotland’s economy. I will be announcing its membership later today.

[Ian Murray (Edinburgh South) (Lab)]

It is difficult to see how we can support the oil and gas industry in Scotland when the Secretary of State refuses to release the assessment of the impact of Brexit on the Scottish economy. Will he tell the House whether the Secretary of State for Brexit was correct today at the Exiting the European Union Committee that that assessment has been shared with the Scottish Government? When will it be shared with the Scottish people?

[David Mundell]

I am surprised that the hon. Gentleman does not follow the Scottish Affairs Committee’s deliberations; he used to be a very prominent member of it. I made it very clear yesterday that there was a sharing of analysis, as is appropriate between Governments, but we will not be publishing anything that will be detrimental to our negotiations, and that is what the people of Scotland would want.

[Christine Jardine (Edinburgh West) (LD)]

Given that, as we have heard, information has been shared with the Scottish Government, would it not be appropriate to make it public and perhaps to impress on the Scottish Government that they should also do that? The people of Scotland should see what the impact of Brexit is going to be in order to make a proper assessment of it.

[David Mundell]

We are regularly called on to respect the Scottish Government. I respect the Scottish Government and this Government respect the Scottish Government—that is why we are working with them on Brexit. But it would not be in the interests of Scotland or the United Kingdom to publish any information that would be detrimental to our negotiating position.

[Ian C. Lucas (Wrexham) (Lab)]

5. What recent discussions he has had with his Cabinet colleagues and the Scottish Government on VAT exemptions.

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

I have regular discussions with Cabinet colleagues and Scottish Government Ministers on a wide range of issues, including fiscal policy across the UK.

[Ian C. Lucas]

Will the Secretary of State have a word with his very good friend the Chancellor of the Exchequer about VAT in Scotland to try to help clear up the mess created by the Scottish Government when they centralised police and fire services in Scotland, making them liable for VAT?

[David Mundell]

I am sure that my right hon. Friend the Chancellor will have heard the hon. Gentleman’s contribution.

[Mr Alister Jack (Dumfries and Galloway) (Con)]

6. What progress he has made on the borderlands growth deal initiative in Dumfries and Galloway.

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

Only last week I hosted a meeting with local MPs to review progress. I am pleased to report that we are driving forward the innovative, cross-border borderlands deal and hope to agree a deal next year that will see investment to transform the local economies within the borderlands area. [Interruption.]

[Mr Speaker]

I want to hear the question and I want the people of Dumfries and Galloway to have the chance of hearing it.

[Mr Jack]

Hear, hear to that. Will my right hon. Friend commit to ensuring that local communities have the opportunity to feed their thoughts into what the final deal will look like?

[David Mundell]

I am sure that the people of Dumfries and Galloway will be absolutely delighted to hear what my hon. Friend says. I was very pleased to receive a submission from all five local authorities involved in the borderlands growth deal. I hope that we can now move forward with local communities being able to include their ideas and contributions in this process.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

rose—

[Alan Brown]

There is a risk that the Secretary of State is prioritising the borderland deal over the Ayrshire growth deal. In a simple written question, I asked how many meetings he has had on the borderland initiative, with who, and on what dates. His answer was that he has had numerous meetings. Will he answer the question directly, or otherwise I will report him to the Procedure Committee again?

[David Mundell]

I am afraid that the hon. Gentleman displays an unpleasant SNP trait of seeking to create division within Scotland. I want to see all areas of Scotland benefit from growth. At least the people of Ayrshire know that in their new Member, my hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant), they have a real champion of Ayrshire.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

7. What discussions he has had with his Cabinet colleagues and the Scottish Government on the role of the Joint Ministerial Committee on EU Negotiations in the negotiations on the UK leaving the EU.

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

The Joint Ministerial Committee on EU Negotiations provides a valuable forum for the UK Government and devolved Administrations to discuss exit issues. We held a very constructive meeting on 16 October and I hope to convene another meeting shortly.

[Alex Sobel]

It was agreed at the last JMCEU that common frameworks would be needed in certain areas. What update can the Secretary of State give the House on talks with Scottish Government Ministers on the establishment of common frameworks for progressing, and is he able to identify areas where the need for common frameworks is anticipated?

[David Mundell]

I gave very extensive evidence on this matter to the Scottish Affairs Committee yesterday, and the hon. Gentleman will be able to access the transcript.

[Peter Grant (Glenrothes) (SNP)]

13. When the time comes for decisions to be taken about the fate of the 111 devolved powers coming back from Brussels, will the Secretary of State give an assurance that those decisions will be taken by consensus at the JMC rather than unilaterally by the UK Government?

[David Mundell]

If the hon. Gentleman had listened to my answer to the question asked by my hon. Friend the Member for East Renfrewshire (Paul Masterton), he would know that the position is that although there is a UK framework, the framework is agreed between the constituent parts of the United Kingdom.

[Danielle Rowley (Midlothian) (Lab)]

9. What assessment he has made of the effect of the roll-out of universal credit on families in Scotland.

Oral Answers to Questions

David Mundell Excerpts

Wednesday 19th July 2017 Commons Chamber

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

1. What assessment he has made of the effect of the removal of the public sector pay cap in Scotland on the Barnett formula if that cap is retained in England.

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

Mr Speaker, I am sure you will join me in congratulating Jamie Murray in the mixed doubles and Gordon Reid in the wheelchair doubles for ensuring that we again had Scottish champions at Wimbledon, where your enthusiasm for tennis was in evidence once again.

The Barnett formula applies to changes in UK Government funding and will not be impacted by Scottish Government decisions on public sector pay.

[Angus Brendan MacNeil]

The Secretary of State’s constituents, and mine, have benefited from the Scottish National party Government’s ending of the public sector pay cap for their public sector workers in Scotland. The SNP tried to help public sector workers in England and throughout the UK by voting to end the UK public sector pay cap too. However, Scottish Tory MPs voted against helping workers in England. With the SNP helping workers in his constituency and mine, are he and his colleagues not ashamed of voting against removing the public sector pay cap in England to help workers there? What does he have against English workers?

[David Mundell]

From that question, Mr Speaker, you would not think that since 2007 the SNP Government in Scotland have been responsible for public sector pay and that a public sector pay cap has applied for most of that time. As far as I am aware, the SNP Government have not lifted the public sector pay freeze in Scotland; they have announced a consultation.

[Tommy Sheppard (Edinburgh East) (SNP)]

May I put on record the fact that the Scottish women’s football team will play an important European championship match tonight? I wish them all the best in their endeavours.

I do not think the Secretary of State fully appreciates the sense of grievance about the pay cap among hard-working public sector workers in Scotland. The Scottish Government have declared their intention to review and end the pay cap; will he argue in the United Kingdom Government for the same policy?

[David Mundell]

May I first welcome the hon. Gentleman to his new place? When the new SNP leader at Westminster said that he was reluctant, I did not realise that he was going to be reluctant to do Scottish questions, or that he was going to downgrade them.

I am clear that hard decisions have to be taken on public sector pay. If the Scottish Government, in their responsibilities, are saying that they are going to increase public sector pay, they have to identify where the funds are coming from.

[Tommy Sheppard]

I thank the Secretary of State for his kind words, but he and I will get on a lot better in this process if he does me the courtesy of answering the question. I asked him to state his intention to argue within Cabinet and the British Government to end the pay cap in Scotland so that workers in the public sector there will get the same rate of pay for the job, whether they work for the Scottish Government or for his Government.

[David Mundell]

I think I did answer the hon. Gentleman’s question. The Government have struck the right balance on pay and ensuring continued employment. We see that in Scotland, where we have the lowest unemployment figures on record. It is better that more people are in work in the public sector than that we had changed the public sector pay cap in previous years.

[Lesley Laird (Kirkcaldy and Cowdenbeath) (Lab)]

I, too, send my best wishes to the Scottish women’s football team for tonight. I also congratulate our tennis players on a wonderful tournament.

It is a pity that the SNP has bounced Labour’s proposal on lifting the public sector pay cap in November. Will the Secretary of State tell me what assessment has been made of the effect of the Government’s pay cap on the living standards of public sector employees in Scotland? Does he share the view of the Chancellor, who was recently reported to have said that public sector workers are overpaid?

[David Mundell]

I welcome the hon. Lady to her place and congratulate her on her success in the election. I also send my best wishes to her predecessor, Dave Anderson, who was one of the Members who voluntarily left this Parliament at the last election. Of course, I pass on my best wishes to the Scottish women’s football team as I should have done in answer to the question of the hon. Member for Edinburgh East (Tommy Sheppard). I agree with the Chancellor that we have struck the right balance in public sector pay on the basis that we have ensured that 200,000 public sector jobs were able to be maintained during this period of difficult fiscal conditions.

[Lesley Laird]

I thank the Secretary of State for his answer, but it is very clear that the Government are in complete chaos on this issue, which is very much like the SNP Government, who claim that they will abandon the public sector pay cap—[Interruption.]—despite voting it down in a proposal in May. Is it not the case that public sector workers in Scotland are being let down by two weak and wobbly Governments who have the wrong priorities, and that only a Labour Government have the policies and the political will to lift the public sector pay cap, ban austerity, stand up for public sector workers and stand up for Scotland?

[David Mundell]

Although I might be tempted to agree with the hon. Lady’s comments on the SNP Scottish Government, the position with Labour is absolutely clear in that no funds have been identified to increase public sector pay. The Institute for Fiscal Studies has made it very clear that, if we want to make a real difference on public sector pay, we have to do something that hits everybody—put a penny or two on the rates of income tax or VAT or something such as that. We cannot make a big difference just taxing the rich. The Labour party in Scotland and here in Westminster has the soundbites, but it does not have the policies to deliver what it is promising.

[Bambos Charalambous (Enfield, Southgate) (Lab)]

2. What assessment he has made of the potential effect of the planned closure of job centres in Scotland on local communities.

--- Later in debate ---

[Tonia Antoniazzi (Gower) (Lab)]

12. What recent discussions he has had with his Cabinet colleagues on the public sector pay cap.

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

I hold regular discussions with my Cabinet colleagues on a wide range of matters of importance to Scotland. The Scottish Government are responsible for Scottish Government pay.

[Gerard Killen]

I thank the Secretary of State for that answer and I want to give him another opportunity to clarify his view on the reported comments of the Chancellor of the Exchequer at the weekend. Does he agree that public sector workers are overpaid?

[David Mundell]

The hon. Gentleman will have seen what the Chancellor said on Sunday: he said that there are areas in the public service where recruitment and retention are becoming an issue and areas of the country where public sector wages and private sector wages are getting out of kilter in the other direction. It is important that we have a discussion on those issues.

[Liz McInnes]

Yesterday, in this Chamber, a Treasury Minister declined to answer a question on the grounds that it was way above his pay grade. Should not we be grateful to our public sector workers for not taking that attitude, and is it not high time that they got the pay rise they deserve?

[David Mundell]

I fully acknowledge the contribution that public sector workers make across the UK, and particularly in Scotland. Of course we will listen carefully when the pay boards make their recommendations.

[Tonia Antoniazzi]

Sixty-six per cent. of public sector workers in Wales, another devolved country, are women, and I suspect that the figure is a lot higher in Scotland. In the light of that, does the Secretary of State not agree that the public sector pay gap is now fundamentally unsustainable and is not only eroding the living standards of women and families but damaging the economy?

[David Mundell]

We are all concerned about the gender pay gap. Some figures released within the last hour by a public sector organisation suggest that there are significant gender pay gap issues at the BBC. I set out my position in my previous answer: it is for the Scottish Government to determine pay for Scottish Government employees, and the Government’s position has also been set out.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

7. What discussions he has had with representatives of the Scottish Fishermen’s Federation on the Government’s policy on fishing after the UK leaves the EU.

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

It is perhaps remiss of me not to welcome new Members from Scotland and elsewhere to this House, in particular when I am answering a question from one of the potential Scottish Fathers of the House.

Since the vote to leave the EU last year, I have spoken regularly with the Scottish Fishermen’s Federation, which I most recently met in Peterhead on 16 June. In our discussions I emphasised that we will take Scotland out of the failed common fisheries policy and extend control of our waters up to 200 nautical miles or the median line with nearby coastal states.

[Mr Carmichael]

I hope the Secretary of State will join me in welcoming the news today that the Marine Stewardship Council has again accredited North sea cod as a sustainable species. The cod recovery programme saw some of the best and worst examples of fisheries management. The best were the measures that came from the industry and had credibility with the industry. Will the Government look at the lessons of the cod recovery programme and take the best examples of fishery management to inform future policy?

[David Mundell]

I, too, absolutely welcome today’s announcement on cod. I confirm that we will look to the industry to help shape its future. One thing is clear: this Government will take Scotland and the UK out of the hated common fisheries policy, but the SNP Scottish Government would take us right back in.

[David Duguid (Banff and Buchan) (Con)]

Will the whole Scottish fishing industry, including processors and catchers, have the opportunity to be represented in consultations on the design of the new fisheries policy?

[David Mundell]

I very much welcome my hon. Friend to this House as the MP for one of the most important fishing constituencies in the United Kingdom, for which he will be a strong advocate. As he knows, when I visited Peterhead I had the opportunity to meet processors, and I take on board fully their importance in shaping the future of the industry after the CFP.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

News has reached Westminster that the Secretary of State has a new deputy in the House of Lords. Will he therefore instruct his deputy to procure a copy of the “Brexit: devolution” report that the House of Lords published yesterday, which states

“that, in the event that the UK Government does not secure a UK-wide agreement that adequately reflects Scotland’s specific needs”—

that includes fishing—

“there is a strong political and economic case for making differentiated arrangements for Scotland”?

[David Mundell]

I hope you, Mr Speaker, will forgive me for laughing when I hear the SNP extol the House of Lords, which on every other occasion it condemns. The reference—[Interruption.]

[Mr Speaker]

Order. Mr Docherty-Hughes, despite the fact that your shiny pate is secreted behind the face of Mr Cowan, I can tell what you are up to. You are behaving in your usual outlandish manner, from which I hope you will now desist.

[David Mundell]

There will in any event be no need for the provision to which the hon. Member for West Dunbartonshire (Martin Docherty-Hughes) refers—this United Kingdom Government will deliver a good deal on Brexit for Scotland and the whole of the United Kingdom.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

8. What recent discussions he has had with Glasgow City Council on the future of job centres in Glasgow.

--- Later in debate ---

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

Like previous Northern Ireland support packages and city deals in Scotland and Wales, this funding is a targeted intervention to address a specific set of unique challenges. As with those previous interventions, this exceptional funding will be made outside the normal, ongoing Barnett funding system. [Interruption.]

[Mr Speaker]

Order. There is excessive noise in the Chamber. To my certain knowledge, at least one retired teacher is in the precincts of the Palace observing our proceedings; she would want there to be a seemly atmosphere.

[Alison Thewliss]

The running total given by the UK Government to city deals in Scotland since 2014 is already dwarfed by the sums given by local government and the Scottish Government. If £1.5 billion can be found overnight for the DUP deal to hold up this Tory Government, when will the Government find the money for the Tay cities deal, the Ayrshire growth deal and the Perth deal?

[David Mundell]

I am surprised at the hon. Lady’s tone because the Government have committed to delivering city deals across Scotland. There will imminently be some exciting news about Edinburgh. I would have thought she would welcome that, rather than simply politicking.

[Hannah Bardell]

I would like to put on the record the best wishes of everyone on the Scottish National party Benches to the Scottish football team. I am wearing their colours; I hope they do not mind. I used to play alongside two of Scotland’s national players at university—their football careers have obviously been better than mine.

Livingston and West Lothian already have a low proportion of public sector jobs in Scotland; the local authority ranks 20 out of 32. The private sector is strong, but with the loss of HMRC jobs, the percentage of public sector jobs is going to fall. Will the right hon. Gentleman come to my constituency and face up to the reality of those job closures and at least receive a delegation, as is his duty as Secretary of State?

[David Mundell]

I would be very happy to meet the hon. Lady.

[Martyn Day]

May I remind the Secretary of State of his own words? He said that he would not

“agree to anything that could be construed as back-door funding to Northern Ireland.”

We expect him, as Scotland’s representative in the Cabinet, to fight for fiscal fairness for Scotland and not to be short-changed by £3 billion. Did he make any representations to the Prime Minister before or after the deal was signed?

[David Mundell]

I take my responsibility to fight for Scotland’s fiscal priorities very seriously. That is why, two years ago when the hon. Gentleman was walking through the Lobby to deliver full fiscal freedom and a £9 billion black hole to Scotland, I voted to keep the Barnett formula.

[Ross Thomson (Aberdeen South) (Con)]

Will my right hon. Friend update the House on the benefits to the north-east of Scotland brought about by the UK Government’s Aberdeen city region deal? Does he share my concern at the dither and delay of the SNP Government in improving the rail journey times between Aberdeen and the central belt, which may take until the 2020s? We need urgency from the Scottish Government.

[David Mundell]

I welcome my hon. Friend to his place. As a noted councillor in Aberdeen, he played a significant role in bringing together the Aberdeen city region deal, which has been such a boost to the north-east of Scotland. I am disappointed to hear what he says about the actions of the SNP Government, but, sadly, I am not surprised.

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

The Secretary of State could not be clearer:

“I’m not going to agree to anything that could be construed as back-door funding to Northern Ireland.”

This is not just back door; it is locked away in secure accommodation. Will he therefore detail in full what representations he made to the Prime Minister and what he did at any time to offer any objections on behalf of Scotland?

[David Mundell]

On 8 June, the people of Scotland delivered their verdict on which party in this House stands up for Scotland and Scotland’s financial arrangements. Scottish Conservatives—12 additional MPs. The Scottish National party—21 less.

[Mr Speaker]

Yes, or even “fewer”.

Oral Answers to Questions

David Mundell Excerpts

Wednesday 19th April 2017 Commons Chamber

[Antoinette Sandbach (Eddisbury) (Con)]

1. What assessment he has made of the contribution of Scotland to the future of the UK.

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

As the Prime Minister has said,

“at the heart of the United Kingdom is the unity of our people: a unity of interests, outlook and principles. This transcends politics and institutions, the constitution and the economy. It is about the values we share”

and our “solidarity”. I will never stop making the passionate and positive case for our United Kingdom, and I look forward to having the opportunity to do so during the forthcoming general election.

[Antoinette Sandbach]

With the Defence Secretary confirming a £1.7 billion investment in Scottish military bases, does my right hon. Friend agree that Scotland plays a crucial role in defending my constituents in Eddisbury and those throughout the whole United Kingdom from growing threats at sea, in the air and on land, and that the divisive policies of the nationalists threaten that crucial role?

[David Mundell]

I absolutely agree with my hon. Friend—Scotland is on the frontline of defending the United Kingdom from growing threats at sea, in the air and on land. It is the home to essential defence capabilities, and our commitment to the future of defence in Scotland is underlined by increasing investment in better infrastructure for our armed forces, which is helping them to keep the whole of the United Kingdom safe.

[Ian Murray (Edinburgh South) (Lab)]

Given that in the last quarter the Scottish economy contracted by 0.2%, is it not about time we got off the independence referendum—and, indeed, the general election—merry-go-round, and got the Prime Minister and the First Minister to concentrate on what is important, which is the economy of Scotland?

[David Mundell]

The hon. Gentleman would have a lot more credibility in making that statement if he was not standing on the ticket of a leader who has said that he has no problem with another independence referendum and who clearly would do a deal with the Scottish National party to get the keys of No. 10.

[Mr Philip Hollobone (Kettering) (Con)]

Will the Secretary of State confirm that Scotland’s membership of the single market of the United Kingdom is more important to Scotland than its membership of the single market of the European Union?

[David Mundell]

My hon. Friend is correct. It is absolutely right to highlight the fact that the market for Scottish goods and services in the rest of the United Kingdom is four times greater than that market in the EU. The UK is the vital Union for Scotland.

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

In the last few years, Iceland and Ireland have leapfrogged the UK in terms of growth and deficit reduction, and they have always had a higher GDP per capita over the last 10 years. Norway’s oil fund is now $920 billion, having grown by $105 billion from $815 billion. The equivalent figures for the UK are zero, zero and zero. Does the Secretary of State not agree that Scotland could be as good as tiny Iceland, as good as Ireland and even as good as Norway with our independence? What is he scared of for Scotland?

[David Mundell]

I well remember when the SNP advocated the “arc of prosperity” for Ireland, Scotland and Iceland. I very much doubt that the people of Scotland would want to endure the pain that the people of both Iceland and Ireland have endured to ensure that their economies are back on a stable footing.

[Angus Robertson (Moray) (SNP)]

Perhaps all of us on this side of the House can agree that Scotland’s greatest contribution has been to show that there is actually an alternative to the destructive policies of this UK Tory Government. It is worth remembering that in Scotland we have free prescriptions, free eye tests, free childcare and free university tuition. We have scrapped bridge tolls, reopened railways and invested in infrastructure, and we are building more council houses than any UK nation. That is what the SNP has delivered in government in Scotland. Does the Secretary of State not agree that that stands in marked contrast to the Tories’ mismanagement and destruction of public services south of the border?

[David Mundell]

What I see in my constituency is falling educational standards, with Scotland’s once-proud education system having the lowest international ratings ever. What I see is my constituents experiencing increasing waiting times for the health service and having to deal with inadequate infrastructure. I do not believe that the SNP Government in Scotland are focusing on the day job. They are focusing on their obsession—independence.

[Angus Robertson]

Quotes about doing the day job when the Government are calling an early general election are a bit cynical. Let us rest on a neutral observer, not a Tory party research officer. What about the director of the Institute of Health and Society, who said:

“Scotland is in a much stronger position than England with respect to both health and social care”?

He went on to say:

“The problem is at the moment that the English government is not committed to a national health service”.

Is not that another example of the fact that the real alternative to the Tory UK Government is the progressive policies of the SNP?

[David Mundell]

Absolutely not, and I look forward to debating these subjects over the next six weeks. The right hon. Gentleman was very careful not to mention education standards in Scotland, which the latest international figures demonstrate are the lowest ever on record. That is not a proud record of the Scottish Government. I look forward to holding them to account over the next six weeks.

[Chris Elmore (Ogmore) (Lab/Co-op)]

2. What assessment he has made of the effectiveness of the Joint Ministerial Committee in ensuring that the needs of all regions and nations of the UK are taken into account in negotiations on the UK leaving the EU.

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

In our negotiations with the EU, we will be seeking the best deal for all parts of the UK. The Joint Ministerial Committee (EU Negotiations) was established to facilitate engagement between the UK Government and devolved Administrations, and has had regular substantive and constructive discussions.

[Chris Elmore]

If the Secretary of State is so keen on and supportive of the JMC, why did the Government vote against putting it on a statutory footing for Brexit negotiations during the passage of the European Union (Notification of Withdrawal) Act 2017? Secondly, when was the last time a positive idea—I am sure that there have been many from the devolved Administrations—was taken on board to form part of the Brexit negotiations to improve the exit from the EU for the devolved nations?

[David Mundell]

We have been very clear about “Scotland’s Place in Europe”, the Scottish Government’s contribution to the discussions. There have also been constructive contributions from the Welsh Government and the Northern Ireland Executive. They have set out many things that formed part of the White Paper and the Prime Minister’s speech. They will be part of the discussions as we negotiate our exit from the EU.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

The role of the machinery of government in helping to hold together the United Kingdom is an important issue. Does my right hon. Friend agree that a priority for the new Government should be to take a long, hard look at developing new ways of working between Ministers and civil servants across the devolved Administrations to strengthen our United Kingdom?

[David Mundell]

I absolutely agree with my right hon. Friend, who has considerable experience. Despite what we hear at Question Time and in the media, the UK Government and the devolved Administrations are able to work together very closely and constructively on a range of issues. That is the element that we should support and promote.

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

The Prime Minister told the Scottish Parliament that

“now is not the time”

when it wanted to let Scotland decide its own future and relationship with Europe, but now is the time for a screeching U-turn and this opportunistic general election. Does the Secretary of State therefore also believe that it is time for the Scottish people to reject the UK Government’s austerity obsession, their assault on the poor, the obnoxious rape clause, and their desire to drive Scotland over the cliff edge of their hard Brexit?

[David Mundell]

I acknowledge that the hon. Gentleman is an expert on screeching, but the Prime Minister’s proposal to have a general election in six weeks’ time, to ensure certainty, clarity and security for the period of the Brexit negotiations, is different from a proposal to have a disruptive referendum campaign during the period of those negotiations.

[Marcus Fysh (Yeovil) (Con)]

Common commercial policies for the UK to pursue as we leave the EU, for example in animal health and food safety, are as essential to Scotland as they are to Somerset. How can the JMC help to ensure that they will be adopted?

[David Mundell]

I would certainly hope that the JMC(EN) will be involved in the discussion on the repatriation of important powers from the EU to the Scottish Parliament and the other devolved Administrations. I recognise more than anyone how important it is to have common animal welfare arrangements, as the main livestock market for my constituency is a mile south of the Scottish border in England.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

Scotland voted to remain in the EU and the single market, but the Scottish Government’s paper that would have kept Scotland in the single market and the UK was roundly ignored by a Tory UK Government intent on pursuing a reckless hard Brexit. Will the Secretary of State tell us what personal action he took to convince the Prime Minister to take account of the views of the people of Scotland, and can he provide an explanation for why he failed?

[David Mundell]

I have been clear that “Scotland’s Place in Europe” did play an important part in the Government’s thinking—[Interruption.] Just so that the hecklers on the Opposition Benches are clear, the Government formally responded to the Scottish Government in relation to “Scotland’s Place in Europe”. Surprisingly, the Scottish Government asked us not to publish our response.

[Kevin Foster (Torbay) (Con)]

In the Secretary of State’s assessment of the effectiveness of the Joint Ministerial Committee, did he share my conclusion that it would be much more effective if all parties were focused on building a strong UK after Brexit, not separatist agendas?

[David Mundell]

As we head into unprecedented peacetime negotiations with the EU, it is vital that all parts of the United Kingdom pull together to take a Team UK approach. By doing so, we will get the best possible deal for Scotland and the whole UK.

[Mr David Anderson (Blaydon) (Lab)]

The JMC is supposed to be the platform through which the devolved Administrations have their voices not just heard but responded to. The Secretary of State paints a rosy picture, but he is not listening to those voices. Northern Ireland voices are not being heard at the moment, because they are not allowed to attend. From what we have heard this morning, the Scots are saying clearly that their voice is being ignored. The Welsh feel, at best, less than impressed. Will the Government give this body the teeth it needs, put it on a statutory footing and let it do its job properly?

[David Mundell]

The purpose of the JMC is to bring together the UK Government and the devolved Administrations, and to work together to formulate our position as we go forward in the negotiations. I very much regret the fact that the Northern Ireland Executive have not been able to be politically present in recent times—we all want that situation to be brought to a conclusion—but the meetings have been robust and, I believe, certainly in terms of the actions that have flowed from them, constructive.

[Chris Davies (Brecon and Radnorshire) (Con)]

4. What discussions he has had with the Scottish Government on their new tax powers.

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

8. What discussions he has had with the Scottish Government on their new tax powers.

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

The UK and Scottish Governments continue to engage closely on the devolution of new tax powers. The Scottish Government are now responsible for setting the rates and thresholds of income tax. It is of course incumbent on them to use their powers to make Scotland an attractive place to live and work.

[Chris Davies]

Now that the Scottish Government have unprecedented power to shape the economy of Scotland, will my right hon. Friend join me in calling on the Scottish National party to start delivering jobs and economic growth in Scotland, rather than focusing on a second independence referendum? [Interruption.]

[David Mundell]

The shouts from Opposition Members just highlight the complacency of the SNP in relation to the Scottish economy, which contracted by 2% in the fourth quarter of 2016 while the UK economy grew by 0.7%. No Scot can be proud of that comparison.

[Mr Jayawardena]

Does my right hon. Friend agree that it is terrible that middle earners in Scotland are being penalised £400 this year by the Scottish Government, and by up to £1,400 by 2020-21, compared with England, where we have higher tax thresholds to help hard-working families?

[David Mundell]

My hon. Friend is right to highlight that point. I might not like the plans to make Scotland the most taxed part of the United Kingdom, but I acknowledge that that is a matter for the Scottish Government. They will have to account for their taxation policies, and the forthcoming general election will no doubt highlight these issues.

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

The average band D council tax bill in Scotland is almost £400 lower than it is in England. Will the Secretary of State’s discussions consider how local authorities in England can learn from Scotland’s successes in providing local and national services while maintaining the lowest council tax rate in the UK?

[David Mundell]

The hon. Lady may have spoken to the SNP press office, but she certainly has not spoken to councils throughout Scotland, which are uniform in their negativity in respect of the Scottish Government’s approach to local government funding.

[Hannah Bardell (Livingston) (SNP)]

As a last act of kindness, and while he still has his seat and his position, will the Secretary of State address the closure of the Her Majesty’s Revenue and Customs office in my constituency, which threatens 1,000 job losses and a move to Edinburgh? A cross-party group of politicians, including members of his own party, has written to him, but he has ignored that. As his swansong, will he come to Livingston and save those jobs?

[David Mundell]

As the hon. Lady knows, I have set out clearly, in correspondence with all who have been in touch with me, the rationale for the move and the changes in the arrangements for HMRC. Many of those changes were called for by Members on both sides of the House on the grounds of efficiency and effectiveness, but obviously no Members like to see significant changes in employment patterns in their constituencies, and I commend the hon. Lady for the way in which she has pursued the issue.

[Dr James Davies (Vale of Clwyd) (Con)]

5. What discussions he has had with Scottish businesses on opportunities for the private sector after the UK leaves the EU.

--- Later in debate ---

[Alberto Costa (South Leicestershire) (Con)]

11. What assessment he has made of the contribution of the UK single market to Scotland.

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

Sales from Scotland to the rest of the UK are now worth nearly £50 billion, an increase of over 70% since 2002 and four times the value of exports from Scotland to the EU. There is no doubt that the United Kingdom is the vital Union for Scotland.

[David Warburton]

Does my right hon. Friend agree that the best deal for Scotland is to stay part of the United Kingdom and to work with the UK Government to do all it can to support a new free trade agreement with the EU?

[David Mundell]

I absolutely agree with my hon. Friend.

[Mr Nigel Evans]

The International Monetary Fund predicted dire consequences for the UK economy if we voted Brexit, yet it upgraded our growth yesterday, for the second time in three months, to 2%. Much of the confidence about the growth in the UK economy is deserved under the leadership of our Prime Minister. Does my right hon. Friend agree that when people look to buy British, as a quality marque “made in Scotland” is very important?

[David Mundell]

Yes.

[Stuart Andrew]

My constituency has a long and proud tradition of textile companies, many of which trade with all parts of the United Kingdom. How will those companies be helped by Scotland leaving the hugely successful UK single market?

[David Mundell]

Obviously, they will not, because, as my hon. Friend will know, in 2015 Scotland exported £49.8 billion to the rest of the UK, four times more than exports to the EU and three times greater than sales to the rest of the world.

[Alberto Costa]

The benefits to Scotland of full access to the UK market are clear. Does my right hon. Friend agree that Scottish representation in this Parliament must focus on what benefits the whole of the UK single market?

[David Mundell]

Absolutely. That is why I can confirm to my hon. Friend that when Ruth Davidson and the Scottish Conservatives go into the general election, it will be on the basis of keeping Scotland at the heart of our United Kingdom.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

12. Seventy-five per cent. of Canada’s exports go to the US, whereas only 63% of Scotland’s exports go to the rest of the UK. Canada is a successful, independent country. Does the Secretary of State agree that neighbouring countries can have close trading relations while still maintaining their sovereignty?

[David Mundell]

Of course countries can have close trading relationships, but Scotland benefits from being part of the United Kingdom because there are no barriers to trade, and there is freedom of movement between Scotland and the rest of the UK. That is good for Scottish business and the hon. Lady should support it.

[Steven Paterson (Stirling) (SNP)]

15. The value of Scottish exports of food and drink has doubled in the past 10 years, to £5.5 billion in 2016. This week, the chief executive of Scotland Food and Drink, James Withers, said that he was afraid that the consequences of leaving the European Union without a trade deal would result in tariffs. Can the Secretary of State guarantee that the Scottish food and drink sector will not have to deal with such a situation?

[David Mundell]

From my discussions with the Scottish food and drink industry, I understand that its greatest concern is that the Scottish National party would seek to drag Scotland out of the United Kingdom.

[Kirsten Oswald (East Renfrewshire) (SNP)]

Does the Secretary of State stand by his comments last year, when he said:

“My role is to ensure Scotland gets the best possible deal and that deal involves clearly being part of the single market”?

Will he be honest with his constituents in a few weeks’ time? Will they be voting for an MP who supports being in the single market, or for one who wants to go along with a damaging hard Brexit, whatever the cost to families and businesses in his constituency?

[David Mundell]

When I contest my constituency in the next general election, I look forward to knowing exactly what the SNP position is on the EU. Is it for taking Scotland back into the EU, or is it not? I hope we will find out in the next six weeks.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

The Tories’ strategy worked a treat against the Liberal Democrats in the south-west of England at the last election. Will the Secretary of State be urging his colleagues to export that strategy to Scotland in the coming election?

[David Mundell]

Ruth Davidson has already made it absolutely clear that her stance in the forthcoming general election will be to stand up for Scotland’s membership of the United Kingdom and against a divisive second independence referendum.

The Prime Minister was asked—

Oral Answers to Questions

David Mundell Excerpts

Wednesday 1st March 2017 Commons Chamber

[Heidi Allen (South Cambridgeshire) (Con)]

2. What assessment he has made of trade opportunities for Scotland after the UK leaves the EU.

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

Following the EU referendum, Scotland Office Ministers have regularly met representatives of Scottish industry and business. What comes out clearly is the appetite to seize and make a success of the opportunities afforded to us by leaving the EU, forging a new role for ourselves in the world to negotiate our own trade agreements and be a champion for free trade.

[Heidi Allen]

I am a bit scared to ask my supplementary question because I think my Scottish National party colleagues have had three Weetabix this morning. My question is about exports, of which Scotland has made a fantastic success, particularly in food and drink. How confident or worried should we be if we come out of Europe that those markets will be damaged, and what can the Government do to support them?

[David Mundell]

My hon. Friend is absolutely right to highlight food and drink as Scotland’s top manufacturing export, accounting for £8.9 billion in 2015. Leaving the EU offers us the opportunity to negotiate new trade deals across the globe and create even more opportunities for Scotland’s world-renowned food and drink.

[Angus Robertson (Moray) (SNP)]

Agriculture and fisheries are key parts of the Scottish economy and Scotland’s export sector. Powers for both are devolved to the Scottish Government. Under the Secretary of State’s Government’s plans, will all decisions on agriculture and fisheries be taken by the Scottish Parliament and the Scottish Government after Brexit?

[David Mundell]

As the right hon. Gentleman knows, the Government have confirmed in the White Paper that all the powers that the Scottish Parliament currently exercises in relation to agriculture, fisheries and all other issues will continue. We wish to have a dialogue with the Scottish Government, the other devolved Administrations and stakeholders about what happens to powers that are currently held in Brussels and where they will rightly rest after the United Kingdom leaves the EU.

[Angus Robertson]

Anybody watching this will realise that the Secretary of State did not answer the question. During the Brexit referendum campaign, people were told that decisions currently taken in Brussels on agriculture and fisheries would revert to the Scottish Parliament. The Secretary of State has not given a clear answer to the question, which really matters to our rural industries, our rural economy and Scotland as a trading nation. Let me try the same question again, and I would be grateful if the Secretary of State answered it. Under his Government’s plans, will all decisions on agriculture and fisheries be taken by the Scottish Parliament and the Scottish Government after Brexit—yes or no?

[David Mundell]

This Government’s plan is to engage with the Scottish Government and with the other devolved Administrations to discuss those serious issues. It is not to go out and tell the people of Scotland that the devolved settlement is being undermined by Brexit, which will lead to the Scottish Parliament exercising more powers. I can give the right hon. Gentleman an absolute guarantee that, after the United Kingdom leaves the EU, the Scottish Parliament and Scottish Ministers will have more powers than they have today.

[Mr David Anderson (Blaydon) (Lab)]

Before I ask a question, I take the opportunity to send my condolences to the family of my great comrade, Gerald Kaufman, a genuine parliamentarian.

On 12 October, the Secretary of State stood at the Dispatch Box and said

“whatever support is put in place for businesses in the north of England will apply to businesses in Scotland.”—[Official Report, 12 October 2016; Vol. 615, c.287.]

That was in relation to the deal struck with Nissan. Does he stand by that promise?

[David Mundell]

I associate myself with the hon. Gentleman’s comments about Gerald Kaufman. He was a near neighbour of mine in the previous Parliament and I always found him to be the perfect gentleman.

I made it clear in previous answers that the Government’s approach will be consistent across the United Kingdom.

[Mr Anderson]

While some businesses and workers are aware of that welcome reassurance, I have yet to meet any businesses in Scotland that know about the commitment to give them the same deal as was done with Nissan. Why has the Secretary of State not been more public about the commitment? Why is it the best kept secret in Scotland?

[David Mundell]

I have made it clear to the hon. Gentleman how the UK Government are approaching the Brexit negotiations and how we are fully engaged with businesses in Scotland to ensure that we understand their concerns. We can go forward on a basis that will ensure that Scotland and the whole United Kingdom get the best possible deal from the UK leaving the EU.

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

Scotland’s international exports have increased by 41% since the Scottish National party Government came into office in 2007, which is a fantastic success story for Scotland. Will the Secretary of State therefore explain why the UK Government failed to negotiate any geographical indications for Scottish produce in the EU-Canada CETA trade deal?

[David Mundell]

I hope the hon. Lady’s approach on the EU-CETA trade deal is more consistent than that of her parliamentary group. On the Monday of the week when the Canada deal was discussed, SNP Members voted in favour. By the Wednesday, they somehow found that they were against.

[Seema Kennedy (South Ribble) (Con)]

3. What recent discussions he had with the Scottish Government on their draft budget for 2017-18.

--- Later in debate ---

[Ian Murray (Edinburgh South) (Lab)]

4. What discussions he has had with the Secretary of State for Exiting the EU on the status of EU nationals living in Scotland after the UK leaves the EU.

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

I have regular conversations with the Secretary of State for Exiting the EU on a number of issues. The UK Government have made it absolutely clear in their White Paper that securing the rights of EU citizens in the UK and of UK citizens in the EU is one of our top priorities in the Brexit negotiations.

[Ian Murray]

The Secretary of State’s answer is not very reassuring given the speculation about a potential cut-off date for EU nationals later this month. The other place will vote on an amendment today that will secure the residency rights of EU nationals. If that is passed, will the Secretary of State urge his colleagues to end this disgraceful uncertainty on residency rights for EU nationals, who contribute so much to the Scottish and UK economies? If he does not, he will send out a very strong message that he is willing to use the lives of EU nationals as a bargaining chip for a hard Tory Brexit.

[David Mundell]

I agree with one thing the hon. Gentleman says: EU citizens in Scotland, and indeed in the whole United Kingdom, make a significant contribution to civic life and the economy of our country. As the Prime Minister has repeatedly made clear, we want those people to stay. She has sent out a very clear message, and it is clearly set out in the White Paper. We do not believe that the Article 50 Bill is the place to set it out.

[Mr Speaker]

I call Mr Shailesh Vara.

--- Later in debate ---

[Mr Speaker]

Order. This is on the importance of the rights of EU nationals. I am sure that that is what the hon. Gentleman meant.

[David Mundell]

I know that businesses across Scotland value the contribution that EU citizens make to their businesses, and I am clear with them that even when the UK leaves the EU, it will be important for EU citizens still to come to Scotland and play an important part in our economy.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

A recent report from the British Medical Association shows that 40% of European doctors might leave the UK after Brexit because of the Government’s shameful inaction on giving a clear guarantee to EU nationals. Why will the UK Government not do the right thing and give a clear guarantee to EU nationals, who are a valued part of our society in Scotland, that they have the right to remain?

[David Mundell]

I am absolutely clear about the importance we place on the role of EU nationals in the economy and the health service, but I would take the hon. Lady’s comments about encouraging doctors and other medical professionals to come to Scotland a lot more seriously if her Government had not decided to tax them more than any other part of the UK.

[Bob Blackman (Harrow East) (Con)]

Does my right hon. Friend agree that as well as safeguarding the role of EU citizens in the UK after we leave the EU, it is vital that we safeguard Scots people who have gone to live in other parts of the EU?

[David Mundell]

I absolutely agree with my hon. Friend. It is vital that we secure the position of UK citizens in the EU, many of whom are Scots, and it is perfectly legitimate to take forward that issue in conjunction with securing the rights of EU citizens in Scotland and the rest of the UK. I am hopeful that that can be dealt with very early in the negotiations.

[Mr David Anderson (Blaydon) (Lab)]

It is clear that the Government are happy to play political football with these people’s lives. It shows contempt for 12,000 people working in our health and social care service in Scotland and for 20,000 people working in the food industry, which the Secretary of State has just bragged is the most important part of Scottish industry. When will he stop treating these people this way and give them the guarantee they need to live a happy and secure life in Scotland?

[David Mundell]

I have made it absolutely clear, as has the Prime Minister, how much we value the contribution that EU nationals make in Scotland to both the economy and civic society. We want them to stay, but we also want UK nationals elsewhere in the EU to be able to stay where they are.

[Ben Howlett (Bath) (Con)]

5. What recent assessment he has made of the effectiveness of the Joint Ministerial Committee.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

10. What recent assessment he has made of the effectiveness of the Joint Ministerial Committee.

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

The Government are committed to getting the best deal for Scotland and the UK in the negotiations with the EU. The Joint Ministerial Committee on EU Negotiations was established to facilitate engagement between the UK Government and devolved Administrations and has had substantive and constructive discussions in monthly meetings since November.

[Ben Howlett]

At the last meeting of the JMC, the Prime Minister committed to an intensified engagement with the Scottish Government on their EU proposals. Can he update the House on that process?

[David Mundell]

When I appeared last week before the Scottish Parliament’s Culture, Tourism, Europe and External Relations Committee, I was able to tell it that in the two weeks since the plenary meeting of the JMC, six substantive meetings had taken place between senior officials so that both Governments could discuss the proposals set out in the document, “Scotland’s Place in Europe”. We regard this as a serious contribution to the debate and continue to engage with it.

[Mr Jenkin]

May I draw my right hon. Friend’s attention to the fact that the Public Administration and Constitutional Affairs Committee has been taking a great interest in the inter-institutional relationships within the UK, that we produced a report in December on this subject, which I commend to him, and that the main thrust of the recommendations are not about structures and institutions but about natural adversaries sitting down together and developing relationships and bonds of trust and understanding?

[David Mundell]

Obviously, I very much take my hon. Friend’s work seriously. Despite what often appears in the media, it is possible for the two Governments to engage in a constructive way. We are already in agreement on many issues in the Scottish Government’s document.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

It is not just a matter of trying to keep the EU nationals who are currently in our health and social care service. The workforce is the biggest challenge that NHS Scotland faces, so will the Secretary of State support Scotland having the powers to attract EU nationals in future, not just keeping the ones who are here now?

[David Mundell]

I have said previously from this Dispatch Box that I do not support the devolution of immigration powers to the Scottish Parliament, but I do support arrangements that will ensure that the vital workers needed in depopulating areas, skilled areas and in areas that rely on seasonal workers can come to Scotland.

[Tommy Sheppard (Edinburgh East) (SNP)]

Earlier, the Secretary of State refused to confirm that Scottish fishing and Scottish agriculture would become the responsibility of the Scottish Parliament. When will his Department present to the Joint Ministerial Committee a list of powers that will be devolved to the Scottish Parliament after Brexit, or will he refuse to do so and simply follow instructions from No. 10?

[David Mundell]

What I want to do and what I have attempted to do is engage in a constructive discussion and dialogue with the Scottish Government and the Scottish Parliament about how we repatriate powers from Brussels. I do not try to make a serious and wrong political point that this is an attempt to destabilise the Scottish Parliament, because I know that when the process is complete, the Scottish Parliament will have more powers than it does today.

[Dr Matthew Offord (Hendon) (Con)]

6. What assessment he has made of the importance of the UK single market to Scotland’s economy.

[Maria Caulfield (Lewes) (Con)]

7. What assessment he has made of the importance of the UK single market to Scotland’s economy.

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

Sales from Scotland to the rest of the UK are worth nearly £50 billion, a figure that has increased by over 70% since 2002 and that is four times greater than the value of exports from Scotland to the EU. There is no doubt that the United Kingdom is the vital Union for Scotland’s economy.

[Dr Offord]

Does the Secretary of State agree that we must not create barriers or do anything to impede the functioning of the UK domestic market as we leave the EU, given its vital importance to the economy of Scotland?

[David Mundell]

I could not agree more with my hon. Friend. I find it strange that those who make such a fuss about the EU single market seem to have a complete disregard for a market that is four times as large to Scotland’s economy.

[Maria Caulfield]

Given that Scottish whisky is the largest net contributor to the UK’s balance of trade and goods, is the Secretary of State encouraged by the fact that if we move from the single market to World Trade Organisation arrangements, Scottish whisky will have a zero tariff?

[David Mundell]

It is important to note that there is a zero tariff for Scotch whisky under WTO rules. As to our future relationship with the EU, my right hon. Friend the Prime Minister has made it absolutely clear that we want to negotiate a free trade agreement with the EU, which would be enormously to the benefit of the Scotch whisky industry.

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

All this UK single market business is quite interesting, but is the Secretary of State trying to suggest that a Brexitised isolated UK, desperate for friends and any trading partners, would not trade with an independent Scotland?

[David Mundell]

What I am suggesting is that if an independent Scotland were to put up tariffs and barriers with its vital largest trading partner, which provides four times as much economic development as the EU, that would be a disastrous series of events.

[Mr Andrew Turner (Isle of Wight) (Con)]

How is job creation in Scotland affecting the Scottish economy?

[David Mundell]

It is vital that both the UK and the Scottish Governments work together to maximise the number of jobs created, but it is clear that the one thing the Scottish Government could do to help job creation in Scotland most is take the suggestion of a divisive independence referendum off the table.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

8. The Secretary of State previously told the Scottish Affairs Committee that he attends Cabinet Brexit meetings based on whether he thinks the agenda items are important to Scotland. Will he tell the House which Brexit policy areas he thinks are important to Scotland and which areas he thinks are not important?

[David Mundell]

I also made it clear to that Committee that it was not appropriate to give a running commentary on the Government’s internal discussions on Brexit. What I am committed to do is delivering the best possible deal for Scotland in these Brexit negotiations.

The Prime Minister was asked—

Oral Answers to Questions

David Mundell Excerpts

Wednesday 18th January 2017 Commons Chamber

[Robert Courts (Witney) (Con)]

1. What progress has been made on transferring further welfare powers to the Scottish Government.

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

As this is the Scottish questions immediately preceding Burns night on Wednesday 25 January, may I wish all those organising Burns suppers or other events in Scotland, across the UK, including here in this House of Commons, and around the world the very best? Robert Burns’ legacy is as relevant today as ever.

The UK Government are committed to a safe and secure transfer of the remaining welfare powers. The majority of welfare powers commenced in 2016, and the transfer of the remaining powers will be overseen by the joint ministerial working group on welfare, which will meet again next month.

[Robert Courts]

The Scotland Act 2016 gives the Scottish Government powers over benefits in Scotland. Does the Secretary of State agree that the Scottish Government must now set out the detail of how they plan to use those powers to shape Scotland’s welfare system?

[David Mundell]

My hon. Friend is right about that; the power for the Scottish Parliament to create new benefits in devolved areas came into force in the autumn, and it now has the power to shape that welfare system as it chooses. Some modest measures have already been announced, but it is time that we hear more about the proposals for a new welfare system. A consultation has been held and I look forward to hearing the Scottish Government’s response to it.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

The fact that the UK Government plan to close half of Glasgow’s jobcentres without even knowing the number of affected people is a dereliction of duty. Will the Secretary of State commit to having a word with his Cabinet colleagues and getting those plans dropped?

[David Mundell]

I do understand the concerns that have been raised about jobcentre closures in Glasgow. I have spoken directly with my colleague the Secretary of State for Work and Pensions. It is the Government’s determination to ensure that there will be no change to the level of service offered to the people of Glasgow. As the hon. Lady and other Glasgow Members will know, there is a public consultation for people who have to travel more than 3 miles or for more than 20 minutes, and it is open until 31 January. I encourage all those affected, and all hon. Members with constituencies affected, to take part in it.

[Helen Whately (Faversham and Mid Kent) (Con)]

13. What progress has been made on transferring further welfare powers to the Scottish Government. The transfer of significant powers over welfare decisions clearly raises complicated issues, as we have seen over the past few months. Will my right hon. Friend update the House on the recent work of the joint ministerial working group on welfare and give his assessment of progress?

[David Mundell]

That group has played an important part in establishing the links between the DWP and the Scottish Government. I have been in regular recent contact with Angela Constance, the relevant Minister in the Scottish Government, about their latest proposals on universal credit. Inevitably, the complexity of this area means that as the transfer takes place new issues arise that need to be dealt with. The joint ministerial working group is the ideal place to do that.

[Mr David Anderson (Blaydon) (Lab)]

I am sure the whole House will join me in sending our condolences to the family of Canon Kenyon Wright, who, sadly, passed away last week. He was a principled man whose legacy should serve as a reminder to all of us that when we work together it is possible to deliver the impossible.

This Tory Government are currently moving disabled people from the disability living allowance to personal independence payments, and it is estimated that the people of Scotland will lose out on £190 million a year as a result. If that was not bad enough, the Government did this a year ago but they withdrew the timetable and have not issued a new one. So can the Secretary of State please inform the House, and indeed the people of Scotland, when they can expect to lose out on this £190 million a year?

[David Mundell]

First, may I welcome the hon. Gentleman back? He was missed at our last Scottish questions, although the hon. Member for Ealing North (Stephen Pound) entertained the House—I think I can say that. I knew Canon Kenyon Wright and he was indeed a very principled man, with strong personal conviction. He played a very important part in the constitutional convention that led to the establishment of the Scottish Parliament. As we have seen in the media, he is widely mourned.

The hon. Member for Blaydon (Mr Anderson) will know that disability benefits are to be fully devolved to the Scottish Parliament, and the funding of those benefits was dealt with in the negotiations for the fiscal framework. It is now for the Scottish Government to come forward with their proposals for disability benefits in Scotland.

[Mike Freer (Finchley and Golders Green) (Con)]

11. Does my right hon. Friend agree that we need to hear less from the Scottish Government about the powers they want and more about how they are going to use the powers we have given them?

[David Mundell]

My hon. Friend makes a very relevant point. The hon. Member for Blaydon (Mr Anderson) referred to personal independence payments, to which, I know, the Scottish Government are opposed, but I have no idea what they intend to replace them with, or on what timetable.

[Angus Robertson (Moray) (SNP)]

May I begin by joining colleagues in paying tribute to Canon Kenyon Wright? He not only played a significant role in helping to deliver devolution to Scotland but, of course, in 2014 supported a yes vote for Scottish independence.

The UK Government are planning to close half the jobcentres in Glasgow without even knowing the number of people who will be affected by such a radical change. Was the Secretary of State consulted in advance of the closures, and when did he show enough interest to find out which specific locations would face closure?

[David Mundell]

I have taken a very close interest in this issue and worked closely on it with my colleagues in the Department for Work and Pensions and the Scottish Government. The Government and I have never suggested that the procedures followed during the process have been perfect, but we have put forward a public consultation for people who are affected and will have to travel more than 3 miles or for more than 20 minutes. I encourage everyone involved to take part in the consultation.

[Angus Robertson]

The devolution of powers hangs very much together with the hard Brexit plans of the current Government. The Secretary of State has said that his role is

“to ensure Scotland gets the best possible deal and that deal involves clearly being part of the single market.”

Does he still believe that, or has he changed his mind after being told what he should say by his Tory bosses in London?

[David Mundell]

I do not recognise the Prime Minister’s speech yesterday as a hard Brexit plan. I do not think that the 500,000 Scottish National party voters who voted for Brexit will take kindly to being referred to as right-wing Tory Brexiteers. They were independently minded people in Scotland who voted for what they thought was the right thing for Scotland. It is absolutely clear, as the Prime Minister said yesterday, that we want to have access to the single market, and that is what the quote from me that the right hon. Gentleman just read out made clear. On the other hand, membership of the single market is a quite different thing, as Mike Russell and, privately, the Scottish Government accept.

[Several hon. Members rose—]

--- Later in debate ---

[Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)]

2. What discussions he has had with Cabinet colleagues on support for the Scottish agriculture sector.

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

I regularly meet Cabinet colleagues to discuss a wide range of matters. I recently met the Secretary of State for Environment, Food and Rural Affairs to discuss a number of issues relating to the Scottish agriculture sector, and will continue to do so.

[Calum Kerr]

Last year, the farming Minister told us that there would be an £18 billion Brexit dividend. He said that farmers would continue to get

“as much support—or perhaps even more”

after Brexit. Does the Secretary of State agree that it would be unacceptable if funding to Scottish agriculture was cut after 2020?

[David Mundell]

There is no suggestion that funding to Scottish agriculture will be cut, but there is the opportunity to move forward from the constraints of the common agricultural policy, which farmers throughout Scotland have often complained about. We need to seize this opportunity to reshape the support for farming to make it more effective, but to continue to sustain those areas of Scottish farming that need sustaining.

[Sir Gerald Howarth (Aldershot) (Con)]

My right hon. Friend is aware that my family are extensive farmers in the Scottish borders. Does he not agree that Brexit presents the United Kingdom with a magnificent opportunity to fashion an agriculture policy that is required not by French farmers, but by British farmers, and will he assure the House that hill farmers in Scotland and elsewhere in the United Kingdom will be given proper consideration?

[David Mundell]

I can absolutely give that undertaking. I hope that, in conjunction with the Scottish Government, we can move forward to shape a new basis of support for Scottish agriculture, especially for those who farm in less-favoured areas. There have been multiple complaints about the operation of the common agricultural policy and its need to take into account farming practices across the continent. We now have the opportunity to have our own support mechanism and we need to work to shape it.

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

14. Will the Secretary of State confirm what he said to The Sunday Times in November that the Scottish Parliament will retain full responsibility over agriculture and fisheries following Brexit and that“no powers will be re-reserved to Westminster.”Will he tell us: yes or no?

[David Mundell]

Yes.

[Mr David Anderson (Blaydon) (Lab)]

Almost two thirds of the UK’s agriculture exports are to the EU. After what we heard from the Prime Minister yesterday, there is an increasing possibility that we could revert to World Trade Organisation trade rules on exit from the EU. Does the Secretary of State agree with the NFU Scotland, which says that the potential for 20% tariffs as a result of WTO trade rules will be increasingly damaging for the profitability of Scottish agriculture?

[David Mundell]

The Prime Minister made it clear yesterday that her objective is to achieve the best possible access to the single market, with the minimum of barriers and tariffs. That will be to the benefit of Scottish agriculture. Scottish farmers see the opportunity that leaving the EU provides them, and I am sure that they will seize it and that we will be able to provide the environment in which they will succeed.

[Mr Nigel Evans (Ribble Valley) (Con)]

3. What discussions he has had with the Scottish Government on recent changes to its taxation powers.

--- Later in debate ---

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

5. What assessment he has made of the effect of immigration on Scotland's economic performance.

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

Migrants from outside and within the UK make a significant contribution to Scotland—to its economy, of course, but also to its society and wellbeing. The Government will always welcome the brightest and the best who have come here to work.

[Stuart C. McDonald]

We know that about 180,000 EU nationals make a hugely valuable contribution to the Scottish economy and that Governments such as Canada’s and Australia’s successfully apply different immigration rules to different parts of their countries. Going beyond warm words, will the Secretary of State listen carefully to proposals for a different arrangement for Scotland, allowing EU citizens freedom to continue to come and live and work there, benefiting us all?

[David Mundell]

I will always look at evidence-based proposals; that is our commitment, for example, in relation to the Scottish Government’s paper produced just before Christmas. However, it was clear within the settlement agreed under the Smith commission that immigration would remain a reserved power.

[Bob Blackman (Harrow East) (Con)]

Does my right hon. Friend agree that one of the problems that Scotland will face under the SNP Government is the flight of individuals from high taxes, who will have to be replaced with further immigrants, as well as the fact that businesses will fly down to London rather than be in Scotland?

[David Mundell]

I find it surprising that the Scottish Government always seem to fail to acknowledge that they have very significant powers to attract people to Scotland. At the moment, about 4% of migrants who come to the United Kingdom go to Scotland. Clearly, more needs to be done to encourage people to come to Scotland, and the Scottish Government need to address that. Making Scotland the highest-taxed part of the UK is not, in my view, the way to do it.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I associate myself and my party with the expressions of condolence about the late Canon Kenyon Wright—a truly lovely man, for whom it was once my privilege to act as election agent, albeit unsuccessfully.

Will the Secretary of State explain to the Home Secretary the importance of non-EU nationals in making up the crews of many fishing boats, especially in the white fish sector, that operate out of Scottish ports?

[David Mundell]

I certainly will take that issue forward for the right hon. Gentleman. I am aware of the concerns that have been raised and I would be more than happy to meet directly with him to discuss the matter further.

[Iain Stewart (Milton Keynes South) (Con)]

6. What assessment he has made of the effect of city deals on cities in Scotland.

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

The UK Government have spearheaded these deals, which will be transformative for the cities of Scotland. The city regions are engines of economic growth, so they will drive forward Scotland’s economy, which means more jobs and a secure future. That is why I am so pleased that the Government have now committed to a city deal for every one of Scotland’s seven city regions.

[Iain Stewart]

In the autumn statement, the Chancellor gave welcome support to city deals. Will the Secretary of State assure me that he will support the borderlands initiative as part of the programme?

[David Mundell]

The borderlands initiative is an innovative proposal that seeks to bring together Dumfries and Galloway Council, Scottish Borders Council, Carlisle City Council and other councils in the north of England to recognise the significant economic area that crosses the border. I am delighted to give my support to that proposal.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

As well as city deals, the Secretary of State will be aware that the Ayrshire growth deal has been submitted to the Scottish Government. In yesterday’s Treasury questions, the Chief Secretary to the Treasury wrongly said that it is for the Scottish Government to advance that deal. What discussions has the Secretary of State had with Treasury colleagues about supporting the Ayrshire growth deal?

[David Mundell]

May I first welcome the fact that the hon. Gentleman’s colleague, the hon. Member for North Ayrshire and Arran (Patricia Gibson), has secured an Adjournment debate tomorrow that will focus specifically on the Ayrshire regional growth deal? I have met the councils and I want that deal to receive support from the UK Government in the way that is most appropriate to make it happen.

[Mr Speaker]

At this Scotland Office questions, I am pleased to inform the House that I have just been notified that Andy Murray has won his second round match in Melbourne.

[David T. C. Davies (Monmouth) (Con)]

7. What assessment he has made of the potential effect on the Scottish economy of the UK leaving the EU.

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

Mr Speaker, I noted that in congratulating Andy Murray, you did not display the usual exuberance that you have demonstrated in support of him and the rest of the British team at Davis cup matches.

The UK Government have taken a number of measures to support Scotland’s economy, including by committing to city deals for each of Scotland’s cities, as I just said, and providing an additional £800 million for the Scottish Government’s capital budget through to 2021. Leaving the EU opens up real opportunities for Scotland and we must always remember that the UK market is worth more than four times as much to Scotland as the EU single market.

[David T. C. Davies]

Adam Smith gave us the theory of modern capitalist economics and William Gladstone put it into practice. Would not those two fine Scotsmen be delighted by the opportunity that Brexit offers to ditch the socialist protectionism of the Scottish Government, and to implement the free trade and free markets that made the country such a powerhouse in the 19th century?

[David Mundell]

My hon. Friend, as ever, makes a robust case for the benefits of leaving the European Union. Perhaps to his list of posthumous figures from Scottish history I could add David Hume, whose essay “Of the Balance of Trade” predates “The Wealth of Nations” and provides an effective rebuttal to the so-called jealous fear of free trade among merchants at the time.

[Kirsten Oswald (East Renfrewshire) (SNP)]

A hard Brexit outside the single market threatens to cost Scotland 80,000 jobs over a decade and to cost people an average of £2,000 in wages. What action will the Secretary of State personally take to keep Scotland in the single market, even if the rest of the UK leaves?

[David Mundell]

It is absolutely clear that Scotland cannot be a member of the single market if it is not a member of the EU, and the United Kingdom will not be a member of the EU. The Scottish Government accept that proposition. What is important is access to the single market and, as the Prime Minister set out yesterday, we aim to achieve the best possible access to that market.

[Sir David Amess (Southend West) (Con)]

15. Has my right hon. Friend considered the effect on the Scottish economy if a further independence referendum is held?

[David Mundell]

My hon. Friend may be aware that today, in relation to labour market statistics, unemployment is up in Scotland, employment is down, and economic activity is also down. I am in no doubt that the uncertainty caused by the constant reference to an independence referendum is having an impact on the Scottish economy.

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

An important part of the Scottish economy is the rural economy, particularly crofting. Yesterday I asked the Secretary of State for Environment, Food and Rural Affairs what exactly, after her careful thinking and planning, would happen to crofting after 2020. The Secretary of State for Scotland set out earlier that he thought that there would be no cuts to funding. Is it the case that we will we see no cuts at all to agricultural support in Scotland post-2020? Will he confirm what he alluded to earlier?

[David Mundell]

The hon. Gentleman has already heard me answer that question. I have set out that leaving the common agricultural policy is an opportunity. The common agricultural policy has not suited Scotland, particularly those farming in less favoured areas. We now have an opportunity to do something different—we should seize it.

The Prime Minister was asked—

Oral Answers to Questions

David Mundell Excerpts

Wednesday 23rd November 2016 Commons Chamber

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

1. What discussions he has had with the Chancellor of the Exchequer on the amount of LIBOR funding available to museums, galleries and tourist attractions in Scotland.

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

Lots of good causes across Scotland have put bids in to the Treasury for the next round of allocations from the LIBOR fund, but I am afraid we will need to be patient and wait for the Chancellor’s autumn statement this afternoon to hear which have been successful.

[Stewart Malcolm McDonald]

The Secretary of State knows that there is no greater cause in my constituency than Holmwood House, a fine piece of Alexander “Greek” Thomson’s architecture. Next year is the bicentenary of his birth, and the Secretary of State knows how keen I am, and the Alexander Thomson Society is, to promote that, both around the UK and internationally. Will he assure me that the full weight of his office is behind making that happen?

[David Mundell]

The hon. Gentleman is to be commended for his efforts in promoting the bicentenary of Alexander “Greek” Thomson, who is perhaps an underappreciated icon of Scottish architecture. I can assure the hon. Gentleman—especially after my own visit to Holmwood House and meeting the Alexander Thomson Society—that the UK Government will do all we can to support and promote that bicentenary.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I have written to the Chancellor of the Exchequer suggesting that LIBOR money could be used to help fund opencast coal restoration in Scotland. Has the Secretary of State had any similar discussions with the Chancellor, or has he done nothing about the opencast pledge in the 2015 Green Book?

[David Mundell]

The hon. Gentleman knows that I—and, indeed, the UK Government—have done a great deal to work with East Ayrshire Council to ensure that opencast restoration could proceed in that area following the collapse of various companies involved in opencast mining. We continue that dialogue with both the Scottish Government and East Ayrshire Council to try bring the matter to a satisfactory resolution.

[John Stevenson (Carlisle) (Con)]

rose—

[John Stevenson]

Thank you very much, Mr Speaker. Scotland has some wonderful tourist attractions, many of which are in the border region and Cumbria. Does the Secretary of State agree that there are real opportunities to promote tourism in the border areas, but that that will involve close co-operation between councils on both sides of the border, and is not just about finance?

[David Mundell]

My hon. Friend knows that I am very keen to promote cross-border working between Cumbria County Council, his own local authority, Dumfries and Galloway Council and Scottish Borders Council. That is why I am a very big supporter of the so-called borderlands initiative to bring those councils together to try to secure economic development for the area, in which tourism would play a very important part.

[Mr Stewart Jackson (Peterborough) (Con)]

2. What progress has been made on the transfer of powers to the Scottish Government under the provisions of the Scotland Act 2016.

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

We have made significant progress in transferring powers in the Scotland Act 2016 to the Scottish Parliament. A large number of provisions of the Act are already in force and we are continuing to work with the Scottish Government on the smooth transition of remaining powers.

[Mr Jackson]

The Scottish National party Government have failed to introduce a single piece of legislation in the past six months; the First Minister prefers grandstanding across Europe to block Brexit. Is it not time she used the powers devolved to her under the Act to start governing, rather than engaging in pointless photo opportunities?

[David Mundell]

I can update my hon. Friend. The Scottish Government have now brought forward one piece of legislation since the Scottish parliamentary elections in May. He may be interested to know that this Government currently have 19 pieces of proposed legislation before this Parliament. Of course I agree with him, and I think the majority of people in Scotland want the First Minister and the Scottish Government to get on with their day job of running Scotland and seeing to the devolved responsibilities, rather than constantly talking about independence.

[Angus Robertson (Moray) (SNP)]

The Scottish Government have announced that the new powers over benefits will be used to end the misery being meted out to disabled Scots by the UK Government. First Minister Nicola Sturgeon has pledged to reduce the need for assessments for personal independence payments and disability living allowance, in particular for those with long-term illness. Will the Secretary of State take the opportunity to welcome that and urge his UK Cabinet colleagues to follow suit?

[David Mundell]

What I will welcome when I see it is some detail behind those fine words. We have heard lots and lots of fine words on welfare, but to date we have absolutely no detail as to what the Scottish Government plan to do.

[Angus Robertson]

I suppose we should view it as progress that the Secretary of State believes they are fine words, and perhaps he will follow the Scottish Government’s initiative, but it is fair to say that the majority of welfare and economic powers are not being devolved to the Scottish Parliament. Will the Secretary of State confirm that he has no plans to devolve powers to deal with Scottish legal partnerships, and the risks they pose in the fight against global money-laundering and organised crime? I have raised this matter with the Prime Minister and spoken to the right hon. Gentleman. Will he now tell the House what he and the UK Government will actually do about it?

[David Mundell]

As the right hon. Gentleman knows, the settlement in the Scotland Act 2016 was the outcome of the Smith Commission. The Scottish legal partnerships issue was not a part of that arrangement and will not be devolved, but I take it extremely seriously. I commend him for the way in which he has highlighted it in this House and elsewhere, and I commend The Herald for the way in which it has highlighted the issue. Colleagues in the UK Government are looking at how we can best take the situation forward to end the abuses, which are evident.

[Iain Stewart (Milton Keynes South) (Con)]

I was concerned to read in The Sunday Times that the Scottish Government are delaying the introduction of the devolved welfare powers. Can my right hon. Friend confirm whether that is the case?

[David Mundell]

All Members have access to the minutes of the last meeting of the joint welfare group between myself and Scottish Government Ministers. Those minutes confirm that the introduction of the welfare powers in Scotland is indeed being delayed, potentially until 2020.

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

Will the Secretary of State consider the transfer of power on visas to the Scottish Government? In the Outer Hebrides, fishing boats are currently tied up because the UK Government will not enable non-EEA fishermen to come in and work on them. People are welcome and are required, but they are blocked from economic activity by the UK Government. This threatens jobs and industries in the Outer Hebrides. Will he act and do something about it, or will he do nothing as usual?

[David Mundell]

I recognise the hon. Gentleman’s concerns, which others have also expressed. There are specific rules on who can work on fishing boats, but immigration remains a reserved issue and the responsibility of the Home Office.

[Stephen Pound (Ealing North) (Lab)]

It is always a pleasure to follow Hurricane Angus. Mr Speaker, may I thank you for your generous indulgence in allowing me to appear at the Dispatch Box in the absence of my hon. Friend the Member for Blaydon (Mr Anderson), who is simply unable to be with us today? I have been immersing myself in Scottish legislation—and Irn-Bru—over the past week.

Many of us on the Labour Benches would give our eye teeth to have the powers contained in the Scotland Act 2016. Does the Secretary of State feel that the apparent reluctance of the Scottish Government to take more advantage of them indicates a surfeit of modesty, or, possibly, a lack of ambition?

[David Mundell]

I welcome the hon. Gentleman to the Dispatch Box at Scottish questions on behalf of the Labour party. The one question I have is, “Who next?” because we have had a selection of individuals. I say to the hon. Gentleman that these are very significant powers over tax and welfare. The autumn statement in this House is a very important event, but on 15 December we will see the Scottish Budget. For the first time, the Scottish Government will be able to raise income tax at their will in the Scottish Budget. That is a very significant moment in terms of taking responsibility and accountability.

[Paul Blomfield (Sheffield Central) (Lab)]

3. What steps he is taking to ensure that Scottish small and medium-sized enterprises are protected from economic uncertainty.

--- Later in debate ---

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

8. What discussions he has had with the Scottish Government on the work of the Independent Fiscal Commission.

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

I have regular meetings with Scottish Government Ministers. I last met the Cabinet Secretary for Finance and Constitution at the Finance Quadrilateral on 21 October. Both Governments are committed to providing all necessary support for the Scottish Fiscal Commission and the Office for Budget Responsibility.

[Mr Jayawardena]

Does my right hon. Friend agree that it is a core principle of stable, accountable, mature government that Governments must not fiddle their own forecasts, but must instead answer for their choices, and the consequences of those choices, to the people whom they govern?

[David Mundell]

I absolutely agree with my hon. Friend, and the transfer of income tax and welfare powers to the Scottish Parliament does just that. No longer will the SNP and the Scottish Government simply be able to complain. If they genuinely have ideas, they will be able to do something about it, and the people of Scotland will understand the tax implications.

[John Nicolson (East Dunbartonshire) (SNP)]

9. Exports from the services sector could be cut by 60% if the UK is out of the single market. That would result in a £2.3 billion hit for Scotland. Given that, can the Secretary of State tell us why his Conservative colleagues at Holyrood voted against the Scottish Government motion to protect Scotland’s position?

[Mr Speaker]

With reference to the work of the Independent Fiscal Commission, I call the Minister to answer.

[David Mundell]

I am sure that the Independent Fiscal Commission will have noted that my colleagues in the Conservative group in Holyrood voted against the SNP’s motion because we have absolutely no idea where the SNP stands in relation to the UK’s future relationship with the EU.

The Prime Minister was asked—

Oral Answers to Questions

David Mundell Excerpts

Wednesday 12th October 2016 Commons Chamber

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

4. What assessment he has made of the potential effect of the UK leaving the EU on the economy of Scotland.

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

Mr Speaker, may I begin by commending you not only on your attendance at the Davis cup semi-final in Glasgow, but on your obvious enthusiasm and exuberance, which the hon. Member for Glasgow Central (Alison Thewliss) and I were witness to? I am sure you will agree that, although the result was not as we would have wished, the event once again confirmed Glasgow’s place as a great international sporting venue.

The UK leaving the EU should be seen as an opportunity for Scotland. Today’s GDP figures are an encouraging sign of growth. However, Scotland is still lagging behind the UK as a whole and that underlines the need for Scotland’s two Governments to work together to take such opportunities.

[Mr Speaker]

The Secretary of State and his daughter did a fantastic job as well, as did the constituency Member of Parliament.

[David Mundell]

It is self-evident that, because the devolution settlements within the United Kingdom are predicated on the basis that the United Kingdom was a member of the European Union, those devolution settlements will be changed by the United Kingdom leaving the EU. Those will be matters that will be subject to debate and discussion.

[Patrick Grady]

I am not entirely certain that the Secretary of State answered that question. Will he categorically rule out powers being re-reserved to this Parliament as a result of the decision to leave the European Union?

[David Mundell]

What I can say is that no powers which are currently exercised by the Scottish Parliament will be re-reserved to this Parliament as a result of the United Kingdom leaving the EU.

[Dr Philippa Whitford]

With a constituency that has an interest in having an aerospace cluster, an airport and large pharmaceutical production, may I ask what the Secretary of State’s view will be on the single market, the open skies and the European Medicines Agency?

[David Mundell]

The Prime Minister made it very, very clear at the Conservative conference that we want to have access to the single market and to ensure free trade. The sectors that the hon. Lady mentioned are very important; they are part of the group of sectors with which we are engaging very closely to identify their specific interests and concerns so that they are part of the UK’s negotiating position.

[Mr Philip Hollobone (Kettering) (Con)]

12. Is it not the case that there should be a substantial boost for Scottish exports as a result of the depreciation of the pound since the Brexit vote?

[David Mundell]

Sectors in Scotland would acknowledge that they have benefited from the devaluation of the pound. The tourism sector, which saw a record attendance at the Edinburgh festival recently, and the agricultural sector would acknowledge it, but I do not see that as being an end in itself. What we need to do is ensure that we get the best possible deal for Scotland and the UK from these negotiations so that Scottish business can flourish.

[Michael Gove (Surrey Heath) (Con)]

My right hon. Friend is absolutely right in saying that we are leaving a dysfunctional union—the European Union—and that that is an opportunity for the people of Scotland. Is it not also the case that if we were to follow the Scottish National party’s advocacy and leave the union that works—the United Kingdom—we would land the people of Scotland with a huge public sector deficit and the prospect of either tax rises or cuts in services?

[David Mundell]

My right hon. Friend is absolutely right. There seems to be a very strange contradiction here: Members on the SNP Benches are rightly concerned about Scotland’s continued trade with the EU, but they disregard the fact that Scotland’s trade with the rest of the United Kingdom is four times as much as with the EU, and that a million jobs in Scotland are dependent on our trade within the United Kingdom—that is the union that matters to Scotland.

[Iain Stewart (Milton Keynes South) (Con)]

Given the importance of that single market to Scotland, does my right hon. Friend agree that the last thing that the Scottish economy needs is the perpetual uncertainty of another independence referendum?

[David Mundell]

If anyone actually listens to businesses in Scotland and, indeed, to the people of Scotland, it is quite clear that people do not want another divisive independence referendum in Scotland—other than individuals who are obsessed with independence. We need to listen to business, take a second independence referendum off the table and concentrate on getting the best possible deal for Scotland and the UK from these negotiations.

[Mr David Anderson (Blaydon) (Lab)]

As a result of demands from Nissan, the Chancellor of the Exchequer has suggested that companies that will suffer a loss of profits as result of exiting the EU may be due compensation. Can the Secretary of State assure businesses based in Scotland which will suffer the same loss of profits that they will be entitled to the same deal, and if so has he made an assessment of the costs of such compensation?

[David Mundell]

May I congratulate the hon. Gentleman on retaining his position as shadow Scottish Secretary? I understand that on the Benches behind him is the Westminster spokesman of the Scottish Labour party, and I am sure that it will emerge during these questions how those two positions interrelate.

The point that I would make in response to the hon. Gentleman’s question is that we will have a common response across the United Kingdom and that whatever support is put in place for businesses in the north of England will apply to businesses in Scotland.

[Craig Mackinlay (South Thanet) (Con)]

13. Scotland has a long and proud history of invention, innovation and creativity, and has always looked out to the world. Could the Government do more to rekindle that outlook in Scotland, rather than the First Minister creating uncertainty and constantly talking about independence?

[David Mundell]

I agree that we need to see Brexit as an opportunity, and I was very interested to see yesterday that the leader of Glasgow City Council also took the view that Brexit offered an opportunity for Glasgow to continue to flourish. Rather than doom-mongering, which is the constant refrain of the SNP, let us take a positive approach and seize the opportunities that are out there for Scotland.

[Angus Robertson (Moray) (SNP)]

May I remind the Secretary of State for Scotland that he was elected on a manifesto commitment to

“safeguard British interests in the Single Market”,

so will he and his Government work with the Scottish Government, respect the 62% of Scottish voters who voted to remain within the European Union and protect our place in Europe?

[David Mundell]

Of course I will do that, but I will also respect the half of voters in the right hon. Gentleman’s constituency who voted to leave the EU. He does not make much of it, but a higher percentage of people in his constituency voted to leave the EU than voted for him, so let us respect everybody in this debate. I am committed to working with the Scottish Government. I have met Michael Russell on a number of occasions. The First Minister and the Prime Minister will meet on 24 October, and their engagement will be essential to achieving what we want: the best possible deal for Scotland.

[Angus Robertson]

Yesterday, we learned from statistics emanating from the right hon. Gentleman’s Government that Brexit will cost £66 billion a year. If these statistics are being prepared for the Cabinet Office, surely they are also being prepared for the Scotland Office, so will the Secretary of State for Scotland be candid with the House and with the people of Scotland and tell us how much Brexit will cost Scotland?

[David Mundell]

We are not even at the stage of beginning the negotiations. What we are going to see—[Interruption.] The Prime Minister has set out the process for taking those negotiations forward. It is inevitable that, over the next few weeks, months and years, we will see press reports and speculation, leaks and all sorts of other supposition. I want to ensure that we go into those negotiations in conjunction with the Scottish Government to get the best possible deal, and that is my commitment.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

Has the Secretary of State seen the report published yesterday by the NAFC Marine Centre, showing that half of all demersal fish and two thirds of all pelagic fish caught in UK waters are caught by boats from other EU countries? Does he understand why Scottish fishermen see these negotiations as a once-in-a-lifetime opportunity to undo the damage caused by the common fisheries policy, and will he put their interests at the heart of the negotiations, unlike his Tory predecessors in the 1970s, who saw our fishing industry as expendable?

[David Mundell]

I commend the Scottish Fishermen’s Federation and others on their approach to the negotiations; they see them as an opportunity, for the very reasons referred to by the right hon. Gentleman and by yesterday’s report. The SFF was quite right to characterise the report as “A Sea of Opportunities”, and it will have my support in realising them.

[Kevin Foster (Torbay) (Con)]

Has the Minister included, in his assessment of the impact on the Scottish economy of the UK leaving the EU, the impact of Scotland leaving its biggest single market: the rest of the UK—something that some people are demanding, week in, week out?

[David Mundell]

As I said earlier, I find it very surprising that people who declare a great enthusiasm for the European single market are willing to dismiss the United Kingdom single market, which is worth four times as much to the Scottish economy and employs a million Scottish people.

[Ian Murray (Edinburgh South) (Lab)]

Today’s GDP figures for Scotland are welcome, as is the major increase in GDP arising from the services sector, probably driven by the financial services sector in Scotland, and in my city of Edinburgh. What specifically is the Secretary of State doing to protect that financial services sector, and can he give the House, and Scotland, an assurance that he will stand by the Conservative party’s commitment in his 2015 manifesto to saying yes to the single market?

[David Mundell]

First, we fully recognise the importance of the financial services sector in not just Edinburgh but Scotland more generally. I am determined to ensure that its interests are protected. We are working very closely with it to ensure that it is very much at the forefront as we move forward with establishing the UK’s negotiating position.

[Chris Philp (Croydon South) (Con)]

3. What discussions he has had with businesses and trade bodies in Scotland on opportunities for overseas trade.

[James Berry (Kingston and Surbiton) (Con)]

7. What discussions he has had with businesses and trade bodies in Scotland on opportunities for overseas trade.

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

Since the EU referendum, Scotland Office Ministers have held over 50 meetings with Scottish Government Ministers, Scottish organisations and trade bodies to discuss the implications for Scotland. We intend to hold further such meetings in the coming months, to ensure that Scottish business interests are fully represented in the negotiations on the UK’s exit from the EU and in any future trade arrangements.

[Chris Philp]

Does my right hon. Friend agree that when we negotiate free trade deals outside the European Union, we can remove some of the protectionist tariff barriers that the EU has erected, thereby reducing consumer prices for consumers in Scotland—and, indeed, across the United Kingdom?

[David Mundell]

I agree with my hon. Friend, and I believe that this Government and this country can be advocates around the world for free trade. Trade liberalisation between advanced economies can have a positive impact on the consumer, and that is what we want to see in Scotland and across the UK.

[Mr Harper]

Will the Secretary of State reassure the House that as he is conducting discussions around the world and engaging with British business, he gets the maximum opportunities for Scottish business, uses his opportunities to demonstrate that Scotland is better as part of the United Kingdom, and knocks on the head all this talk of independence that we incessantly hear from the Scottish National party?

[David Mundell]

I agree with my right hon. Friend. It is vital that we promote Scotland’s interests in that way, and do so working in conjunction with the Scottish Government. Both Governments have a role to play—in, for example, as the Scotch Whisky Association identified, developing new markets and promoting that product, which is vital to Scotland’s economy.

[James Berry]

I was pleased to read last month that exports of Scotch whisky were up for the first time in three years, with a surge of exports to India. Does my right hon. Friend agree that everyone in the UK should work together to support the export of great British products, including great Scottish products such as whisky?

[David Mundell]

I do agree, as I have set out. Bodies such as the Scotch Whisky Association acknowledge and accept that, and want the two Governments to work together in that regard, and that is what I am committed to doing.

[Wayne David (Caerphilly) (Lab)]

If the Government leave the European Union without a specific trade arrangement with the EU, is the Secretary of State happy to fall back on World Trade Organisation methods?

[David Mundell]

I am sure that that is the type of speculation that will constantly be sought from Ministers in the weeks and months ahead. The Prime Minister has set out the process for negotiating our exit from the EU, and at the conclusion of that process I am confident that we will be able to achieve the best possible deal for Scotland and the rest of the UK.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

The Secretary of State has, on many occasions, extolled the trade benefits of the single market for Scotland. Regardless of whether or not the UK is a member state of the EU, does he still believe that it is in Scotland’s interest to have membership of the single market, rather than trying to negotiate third-party access?

[David Mundell]

What I have also said on many occasions, as the hon. Lady will know, is that the UK will have a bespoke arrangement with the EU when we leave. It is not appropriate or sensible to see the negotiating process in the context of existing arrangements with other countries or, indeed, the existing structure of the EU. We should seek to get the best possible deal for our businesses.

[Mr David Anderson (Blaydon) (Lab)]

Crucial to promoting trade is the need to support apprenticeships. However, training bodes, organisations, businesses and employers in Scotland have told me that they are struggling to get clear guidance on how the apprenticeship levy will work. Will the Secretary of State ensure, unlike his colleague the Business Secretary, that he works urgently with the Scottish Government to give those people the information that they need?

[David Mundell]

I am absolutely committed to doing that, and I can confirm that the apprenticeship levy will be discussed when the joint ministerial council meets on 24 October.

[Mr Anderson]

One area in which apprenticeships could work is the oil industry and the decommissioning of oil rigs. We have already seen the loss of 80,000 jobs in that industry, and that will be compounded if we continue, as has happened recently, to lose decommissioning contracts to other countries. Do the Government have any strategy at all to ensure that those crucial jobs remain in Scottish hands?

[David Mundell]

The hon. Gentleman will know that the Government are committed to the industry, and a £2.3 billion investment and associated tax changes were exactly the support that it asked for. We have also established, along with the Scottish Government, the £250 million Aberdeen city deal, which will have at its heart a new technology centre to ensure that skills and jobs remain in the north-east.

[Henry Smith (Crawley) (Con)]

5. What steps the Government are taking to transfer welfare powers to the Scottish Government.

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

A significant number of new welfare powers came into force this September, and give the Scottish Parliament new choices over welfare in Scotland. The joint ministerial working group on welfare, which includes Scottish Ministers, met yesterday to continue its important and constructive work overseeing the transfer of remaining powers.

[Henry Smith]

With that significant transfer of powers from the UK Government to Edinburgh, does my right hon. Friend agree that the Scottish Government should get on with exercising those powers for the sake of the welfare of the people of Scotland, rather than wasting time on expensive and unnecessary talk of a second independence referendum?

[David Mundell]

I absolutely agree. These are significant powers, which the Scottish Government and the Scottish National party in this House asked for. People around Scotland will want to see how they are being deployed and what process is being used. The message from the people of Scotland generally to the Scottish Government is “Get on with the day job.”

[Neil Gray (Airdrie and Shotts) (SNP)]

11. I am sure that at yesterday’s meeting of the joint ministerial working group Scottish Ministers will have stressed their desire to see their employment programmes proceed on a voluntary basis. What steps will the Secretary of State take to ensure that his Government respect that desire?

[David Mundell]

We have made it absolutely clear that we will respect that desire for the programmes to proceed on a voluntary basis. What I think the people of Scotland will want to know is what the Scottish Government intend to do in relation to people who do not volunteer to be part of the programmes.

[Mark Menzies (Fylde) (Con)]

8. What discussions the Government have had with oil and gas companies on support for North sea industry.

Oral Answers to Questions

David Mundell Excerpts

Wednesday 6th July 2016 Commons Chamber

[Ian Murray (Edinburgh South) (Lab)]

6. What assessment he has made of the effect on the economy in Scotland of the outcome of the EU referendum.

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

The Scottish economy faces a number of challenges as a result of the vote to leave the EU. Yesterday I began a process of direct engagement with Scottish business leaders to ensure that their voice is heard in the forthcoming negotiations.

[Nic Dakin]

I thank the Secretary of State for that answer. Now that the Brexit decision has been made, does he think that it will be easier for the Scottish and UK Governments to support the Scottish steel industry in tackling things like energy costs, procurement and business rates?

[David Mundell]

Regardless of the vote, the two Governments must continue to work together to support the industry. The Scottish Government have taken steps in relation to the two plants in Scotland, very much supported by me and the Scotland Office and the UK Government. We will continue that support, and the Scottish Government will play a part in the steel council that has been established.

[Ian Murray]

Standard Life, one of the largest private employers in Scotland, ceased trading in its UK property fund this week, and the Governor of the Bank of England has said that the consequences of Brexit are beginning to crystallise. Given that financial services are 7% of Scotland’s GDP and employ tens of thousands of my constituents, what reassurances was the Secretary of State able to give businesses yesterday that not one job will be lost because of the Conservative gamble with this country?

[David Mundell]

May I begin by commending the hon. Gentleman for his service as shadow Scottish Secretary? No one knows better than me how difficult it is to be your party’s sole representative from Scotland in this House and be shadow Scottish Secretary. He performed the role with great distinction, and I am particularly grateful for his work to ensure the passage of the Scotland Act 2016 in this place. He will be pleased to know that when I met business leaders yesterday Standard Life was represented. One point that its representatives made, which is important for discussions on the future of the Scottish economy, is how important the market outwith Europe is, as well as the market within Europe. Standard Life did not wish us to lose focus on the many business opportunities it pursues, in north America in particular.

[Bob Blackman (Harrow East) (Con)]

When will my right hon. Friend lay out the exciting opportunities there are for Scotland as a result of leaving the European Union for the wider world?

[David Mundell]

Obviously when I met Scottish businesses I wanted them to address the opportunities for business. I have just referred to a leading Scottish company with significant interests outwith the EU, but businesses in Scotland are naturally concerned to understand the arrangements that will be put in place for our future relationship with the EU.

[Angus Robertson (Moray) (SNP)]

In Scotland more than 62% of voters voted to remain in the European Union. Since then the Scottish Parliament has voted overwhelmingly to support First Minister Nicola Sturgeon in her efforts to protect Scotland’s place in Europe. That was voted for by the Scottish National party, the Labour party, the Liberal Democrats and the Scottish Green party. The Tories abstained. Will the Secretary of State finally join the cross-party consensus to protect our economy and our place in Europe, or will he abstain like his colleagues?

[David Mundell]

The right hon. Gentleman omits one fact. My colleagues were unable to support his party’s motion because the SNP would not take the toxic and divisive issue of a second independence referendum off the table. Anyone who wants to unify opinion in Scotland does not start talking about a second Scottish independence referendum. I hope the First Minister was listening yesterday to Scottish businesses when they said decisively in relation to discussions about the EU that they did not want to hear about Scottish independence.

[Angus Robertson]

Tens of thousands of European Union citizens play a massive role in our economy and society in Scotland. The Scottish National party wants to do more than just pay tribute to them; we want them to have guarantees that they can stay in Scotland. Will the Secretary of State act in the Scottish and European interest, and guarantee the rights of fellow EU citizens to remain in Scotland, and end the intolerable worry and concern with which they are being confronted?

[David Mundell]

I share the right hon. Gentleman’s view of the important role that EU citizens play in Scotland, and we want them to stay in Scotland and have their position guaranteed. We also want British citizens in the rest of Europe to have their right to stay there guaranteed, and I hope that it will be possible to issue both guarantees.

[Mr David Anderson (Blaydon) (Lab)]

May I start by echoing the compliments paid to my predecessor, my hon. Friend the Member for Edinburgh South (Ian Murray)? He will be a hard act to follow.

Sitting opposite the Secretary of State reminds me of the many good times that I have spent in his constituency in the great town of Moffat. Friends of mine from Moffat, John and Heather, live on the Old Carlisle Road, where they have a small family farm and a business. They want to know what guarantees have been given about the future of payments that they receive as part of the common agricultural policy, and what benefit they can expect from the £350 million a week that senior members of the Government promised we would get back from the European Union to fund the NHS. How much of that can we expect to go to Scotland and, crucially, when can we expect to see it?

[David Mundell]

I welcome the hon. Gentleman to his position, and he is welcome in Moffat any time he wants. I have performed his role in the past, but when I did so there were 41 Scottish MPs opposite me, and 15 months later it has come to this. CAP payments will be subject to negotiations, and as someone who argued for a remain vote, I made it clear to farmers in Scotland that there would be a degree of uncertainty if there was a vote to leave. As a result of our withdrawal from the EU, responsibility for agriculture will now rest directly with the Scotland Parliament.

[Mr Anderson]

I do not think that John and Heather will be reassured by the Secretary of State’s response, and I note that he did not answer my question on the NHS.

The Chair of the Foreign Affairs Committee was right yesterday to accuse our hapless Prime Minister of being guilty of a dereliction of duty for failing to set up withdrawal planning units until after the referendum. Will someone please tell the Prime Minister that the words to the song are not: “When the going gets tough, the tough do a runner”? With that in mind, does the Secretary of State believe that the Prime Minister’s policy of placating fruitcakes and loonies has been a price worth paying for the economic crisis that is now upon us, and the risk of the break-up of the United Kingdom?

[David Mundell]

I am a democrat. I respect the democratic decision of the people of the United Kingdom, and that decision will be implemented.

--- Later in debate ---

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

9. What discussions he has had with the Scottish Government on the effect of the outcome of the EU referendum on Scotland.

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

Since the outcome of the EU referendum, both the Prime Minister and I have had discussions with Scottish Government Ministers, and we will continue to do so over the coming weeks and months. As the Prime Minister has made clear, we will fully involve the Scottish Government and other devolved Administrations as we prepare for negotiations with the European Union.

[Andrew Stephenson]

Does my right hon. Friend agree that we should respect the outcome of the democratic process, even if some do not agree with the result?

[David Mundell]

I am clear that the majority of people across the United Kingdom voted for the UK to leave the European Union, and that decision must be implemented. In doing so, we must secure the best possible deal for Scotland and the rest of the United Kingdom.

[Martyn Day]

Will the Secretary of State confirm that it is the UK Government’s intention to invite the Scottish Government to participate directly in the EU negotiations?

[David Mundell]

I confirm that the Scottish Government will be at the heart of the negotiation process. I can also confirm today that I and my Cabinet colleague, my right hon. Friend the Member for West Dorset (Mr Letwin), who is responsible for the European unit within the Government, will meet the First Minister next week to discuss how that might be achieved.

[Ian Blackford]

The Secretary of State says he is a democrat. Will he support the long-established position in Scotland that sovereignty rests with the people? Now that the Parliament has said that we wish to negotiate Scotland’s remaining in the single market, will he stand up for those rights? Is he Scotland’s man in the Cabinet, or is he, as we suspect, the Cabinet’s man in Scotland?

[David Mundell]

I expect slightly more original lines from the hon. Gentleman. My position is clear: I very much welcome any initiative pursued by the First Minister or by the Scottish Government that can be to the benefit of Scotland without being to the detriment of the rest of the United Kingdom. I look forward to hearing from the First Minister when I meet her next week how the various initiatives she is pursuing are going. We want to work together. Businesses in Scotland yesterday made it very clear that they want a Team UK approach: the Scottish Government and the UK Government working in tandem in the best interests of Scotland.

[Chris Green]

Does my right hon. Friend agree that, just as the Scottish referendum was binding for a generation, so too is the United Kingdom’s decision on the European Union? Is it not incumbent on all politicians, including those in the devolved Administrations, now to come together to make this work?

[David Mundell]

I very much hope that that will be the case. I met Fiona Hyslop, the Minister responsible in the Scottish Government, within hours of the EU declaration being made. My right hon. Friend the Minister for Europe is in Scotland today. I am meeting Fiona Hyslop tomorrow, and, as I have already said, I am meeting the First Minister next week. We want to work as closely as we can with the devolved Administrations to get the best outcome for Scotland.

[Alan Brown]

On the previous question, I would point out that Scotland voted by a large majority to remain in the EU. As a self-confessed democrat, will the Secretary of State therefore confirm that he will support the Scottish Government’s efforts to find a mechanism to keep Scotland in the European Union?

[David Mundell]

The hon. Gentleman may not have read the ballot paper, but the question was not about Scottish independence. It was about whether voters in Scotland wanted the United Kingdom to remain in the EU. I was a part of the 1.6 million people in Scotland who voted to remain in the EU, but I did not do so on the basis that Scotland would then be dragged out of the United Kingdom if I did not get the decision I wanted.

[Henry Smith (Crawley) (Con)]

11. With over 1 million people in Scotland voting to leave the European Union last month, what is my right hon. Friend’s assessment of the rush for a second independence referendum on the Union?

[David Mundell]

It is important that we respect the views of people we do not agree with. It has become evident that the Scottish National party cannot respect the views of the 2 million people who voted to remain in the United Kingdom in the 2014 referendum and it does not respect the people who voted to leave the EU. I do not agree with the people who voted to leave, but their views need to be respected.

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

In the light of statements made by the Secretary of State for Justice and the new shadow Secretary of State for Scotland over the weekend, will the Secretary of State for Scotland give us an unequivocal confirmation that the Barnett formula will not be changed or affected as a result of the EU referendum and that Scotland’s budget will be protected?

[David Mundell]

The Government were elected on a manifesto that made it clear there would be no changes to the Barnett formula. The hon. Lady has been in several political parties over her political career. Perhaps she noticed earlier this week that there is a vacancy at the head of the UK Independence party; that might be her next destination.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

12. Will my right hon. Friend tell us what discussions he has had on the possibility of Scotland having to accept joining the euro if, as it claims, it wants to stay in the European Union?

[David Mundell]

Clearly the parameters have changed, and if any proposition were put forward for any prospective further independence referendum, it would be carried out on an entirely different basis from what we had with the 2014 proposition, and membership of the euro might well be part of that.

[Wayne David (Caerphilly) (Lab)]

A close relationship between Scotland and the European Union is obviously in the best interests of Scotland. Has the Secretary of State any specific suggestions about how that relationship might be made real in the future?

[David Mundell]

I think I have set out clearly how I see the way forward on these matters, and it lies with the Scottish Government and the UK Government working as closely as they possibly can together. That is the way we will get the best possible arrangements for Scotland. The message from business leaders I met yesterday was that we need a Team UK approach to get that deal for Scotland.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

7. What discussions he has had with the Secretary of State for Work and Pensions and Ministers of the Scottish Government on the devolution and implementation of social security powers.

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

I am committed to working with the Scottish Government to ensure a safe and secure transfer of welfare powers. I met Scottish Ministers in the joint ministerial working group on welfare on 16 June. We had a constructive meeting and issued a joint communiqué about our discussions.

[Helen Hayes]

What assurances can the Secretary of State give that Scotland will be no worse off with the devolution of new social security powers?

[David Mundell]

I certainly hope that individuals in Scotland will be no worse off. Inevitably, the devolution of these powers means that specific decisions about their use will be made by the Scottish Parliament and Scottish Government. The amount of certain payments and their shape and nature will be matters for them.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

14. Will the Secretary of State update us on discussions on the devolution of the social fund funeral payments?

[David Mundell]

I am hoping to move forward with a commencement order for those powers before this Parliament goes into recess. That effectively means the transfer of the arrangements to the Scottish Government.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

I have asked the Scottish Secretary twice via written questions when he last visited a food bank. The answer has been the same on both occasions—he has not visited a food bank in his capacity as Secretary of State for Scotland. Will he therefore today agree to visit a food bank with me in my constituency so that he can see at first hand the devastating effect of Tory sanctions and welfare policies?

[David Mundell]

The hon. Lady is very well aware that I have visited a food bank and understand the issues that surround them.

[Mr David Anderson (Blaydon) (Lab)]

The agreement between the United Kingdom Government and the Scottish Government set out exactly how the new Scottish welfare budget will be agreed. Will the Secretary of State explain what would happen in the event of the UK Government abolishing a specific benefit that has been devolved to Scotland? In that circumstance, will the Scottish Government retain the budget or will they lose it?

[David Mundell]

The financial arrangements for the transfer of powers were dealt with in the fiscal framework, and that circumstance was contemplated in it. There are two sets of benefits that are subject to transfer: one is a set of benefits for which the Scottish Government will have full responsibility and can therefore shape and make a new benefit or change benefits; and the other set involves powers to top-up existing UK benefits. Clearly, if an existing UK benefit did not exist, the power to top it up would not exist either, but the power to create an equivalent might well do.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

8. What progress the Government are making on implementing the recommendations of the Womenomics report on the role and contribution of women in the Scottish economy, published in March 2015; and if he will make a statement.