Scotland: General Election and Constitutional Future

David Mundell Excerpts

Wednesday 17th March 2021 Commons Chamber

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

It is a pleasure to follow the hon. Member for Edinburgh South (Ian Murray), who was as witty and articulate as ever, but I still have no idea where Anas Sarwar and the Scottish Labour party stand on having another independence referendum.

I was very proud to be part of the process that led to the Edinburgh agreement, which facilitated the 2014 referendum. At the time, Alex Salmond—who is now heavily criticised by some of the same people who portrayed him as father of the nation on whose word everybody in Scotland could rely—said that that was a gold standard agreement and the basis on which such a referendum could and should be held in order that it be fair, legal and decisive. And yet, from the moment that referendum was held—not in 2016, 2018 or 2019, but from 19 September 2014—the SNP has agitated for another referendum. It did not even wait for the dust to settle on the result, and it completely disrespected the outcome, having said that it would respect it.

In each of the elections we have had since 2014, the SNP has sought to downplay independence. In a television debate before the 2016 Scottish Parliament election, Nicola Sturgeon said that there was no prospect of a referendum. In the 2019 general election, my SNP opponent said, “This isn’t about independence at all. It’s nothing to do with independence. It’s about Brexit; that’s what it’s about,” yet each time, from the moment the polls close, every vote cast is portrayed as a vote for independence.

I welcome the fact that the SNP has registered with the Electoral Commission the slogans “Both votes SNP for indyref2” and “Vote SNP for indyref2”, because people will understand, I hope—and I hope it will be on page 1 of the manifesto in big writing, not hidden away on page 16 as some sub-clause, as the “changing circumstances” caveat was.

[Owen Thompson (Midlothian) (SNP)]

I have listened carefully, and I have heard a number of Members say this about every vote cast being a vote for independence. Would the right hon. Gentleman not accept that, in the literature produced and distributed by his party in any given election at any level of government in Scotland, “Vote Conservative to say no to indyref” is doing exactly the same thing—it is suggesting that every vote for the Conservative party is a vote against a referendum?

[David Mundell]

What we are suggesting as we go into this election under the leadership of my hon. Friend the Member for Moray (Douglas Ross) is that there is an alternative to this obsession with independence. It does not all have to be about independence. Despite what the hon. Member for Edinburgh East (Tommy Sheppard) said, Scottish Parliament time has been devoted to an independence referendum. There has been a Bill in the Parliament during the period of covid. There has not been a focus entirely on covid, because the independence issue has always been there.

We hear today that the “once in a generation” claim was only for SNP supporters, to make sure that they got down to the polling station, and it could not be relied on. We hear that Mike Russell’s pronouncements that we will have a referendum by Christmas and those of the right hon. Member for Ross, Skye and Lochaber (Ian Blackford) about having a referendum this year cannot be relied on. Well, what cannot be relied on by the people of Scotland is that the SNP will not press ahead with a referendum regardless. We have heard that they are the people who will determine what people in Scotland think. What arrogance—it is not about elections; the SNP will decide what the people of Scotland think, and if it determines that the people of Scotland are in favour of a referendum it is willing to press ahead with one regardless. Several leading members of the SNP have said that, and I look forward to the contribution of the hon. and learned Member for Edinburgh South West (Joanna Cherry), who is a proponent of this.

I agree with the hon. Member for Edinburgh South that this election is very important. It is important on 6 May that we get Scotland to focus on coming out of the pandemic with a plan for recovery—none currently exists in Scotland. There is a plan for an independence referendum, but there is no plan for recovery. The only realistic way in which people can achieve that is to use both votes on 6 May for the Scottish Conservative and Unionist party. We want to end division. No referendum—let us rebuild Scotland.

--- Later in debate ---

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

Debating time in the House of Commons is a precious commodity. It is an opportunity to raise important matters for our nation—important matters of international concern and, crucially, for the people that we all represent. As one of the political parties in this place, the Scottish National party is in the privileged position of having debating time—time when it decides what to debate and the issues that it wants to promote. I know that my constituents in the Scottish borders will be baffled, given the huge challenges that we are facing in Scotland, that the nationalists have decided to use this debating time to promote their obsession with independence referendums.

Scots are worried about the coronavirus. We are worried about the economy. People are worried about their jobs. Families are worried about their health and the wellbeing of loved ones. And yet here we are, debating the SNP’s obsession—independence and referendums. Scots are rightly asking why the SNP’s priorities are so out of step with those of most people in Scotland.

The SNP has announced that it will hold another independence referendum as early as this year, if it wins a majority in the upcoming elections. At this uncertain time, the only priority I would suggest that we should have is working together to manage the crisis and rebuild our country. Our focus needs to be on defeating the spread of the coronavirus and on the economic recovery plan.

The SNP is trying to distract people today, I believe, with its new independence referendum road map as a shield to hide a catalogue of targets not met, priorities not delivered and promises broken. Time and again we have heard SNP politicians request that their performance be judged on education. The SNP promised to reduce class sizes for primaries 1 to 3, but for 13 years the SNP has failed to deliver on that promise. The recent OECD report slammed the shameful attainment gap that exists between poor and wealthier children, but I am sure it comes as no surprise to Members that the SNP in Edinburgh has refused to publish the latest OECD report until after the elections in May. Under the SNP, Scotland’s science and maths scores have dropped below those of England and Wales, and are at an all-time low since rankings were introduced.

The SNP shows complete contempt for the future prospects of Scotland’s children. In health, too, it has failed. It has failed to deliver on its promises of tackling the chronic shortage of GPs. It has failed on the children’s hospital in Edinburgh which only just opened, four years behind schedule.

[David Mundell]

Does my hon. Friend share my amazement that, when confronted with any of these issues—the real issues that people face in health and education—the only answer the SNP can put forward is independence, despite having had 14 years to resolve these issues?

[John Lamont]

My right hon. Friend is absolutely right; independence is the SNP’s only answer to everything, yet it has failed to deliver for my constituents and most people in Scotland.

Similarly, the SNP has failed Scotland’s economy, having presided over the lowest rate of job creation in the entirety of the UK over the past decade. The SNP has continuously failed rural Scotland too, whether it be its failure to deliver rural broadband or the lack of engagement with the Union transport connectivity review, which would have been an opportunity to improve transport links. Whether it be the A1, the A75 or extending the Borders Railway, the SNP has simply refused to engage.

And of course we have the Salmond/Sturgeon affair, which is perhaps the ultimate failure—this time with a woman at its heart. Misleading the Scottish Parliament on multiple occasions, withholding legal documents and not fully co-operating with the Scottish Parliament’s inquiry, the First Minister and her deputy have shown a blatant disregard for the people of Scotland they claim to serve. The handling of this affair is symptomatic of the SNP’s failure to deliver for the Scottish people across all areas of public life. With such a corrupt, sleazy and tired Government in Edinburgh, it is little surprise that the SNP has picked its obsession of separation to debate today, rather than defend its colleagues’ record in Government in Holyrood.

Oral Answers to Questions

David Mundell Excerpts

Wednesday 27th January 2021 Commons Chamber

[Mr Jack]

There has been unprecedented support. The sort of support that the United Kingdom has delivered through the furlough scheme, the self-employment income support scheme, the coronavirus business interruption loan scheme, business grants and the £8.6 billion delivered to the Scottish Government to help with the pandemic has not been delivered anywhere else within the European Union.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con) [V]]

Does my right hon. Friend share my concern that, at a time when my constituency has its highest ever level of coronavirus infections, rather than focusing solely on beating this pandemic and planning for a recovery, Nicola Sturgeon and the Scottish Government are prioritising another independence referendum and breaking up the United Kingdom?

[Mr Jack]

I absolutely agree with my right hon. Friend. People in Scotland want to see politicians across the United Kingdom working in partnership to focus on defeating the coronavirus. That remains the top priority of the UK Government, who have supported jobs and businesses across the United Kingdom through the pandemic —as I say, there has been unprecedented support—and now more than ever, we should be pulling together to strengthen our country, instead of trying to separate it.

Oral Answers to Questions

David Mundell Excerpts

Wednesday 11th November 2020 Commons Chamber

[Mr Speaker]

Let us carry on then. If the Secretary of State does not have the answer, it is easy—I call David Mundell.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con) [V]]

There are many different ways that the Government can provide economic support to Scottish businesses during covid-19. For the Scotch whisky industry, the biggest help in retaining jobs and supporting its businesses would be for the Government to resolve the US tariffs dispute, rather than escalate it by applying further retaliatory tariffs. Can my right hon. Friend update the House on progress on this vital issue for Scottish businesses and jobs?

[Mr Jack]

From memory, question 16—it has been withdrawn altogether from the papers I was given this morning—was about transport, and I will say on that—

Oral Answers to Questions

David Mundell Excerpts

Wednesday 7th October 2020 Commons Chamber

[Mr Jack]

The hon. Gentleman raises a very serious issue not just for the whisky industry, but for biscuits and cashmere. I am pleased that biscuits are now off the tariff carousel. The Boeing-Airbus dispute has been many years in the making. It is unfair. It is harmful to both industry and consumers. However, in the trade talks that have opened up with the US, we have now got agreement to have a bilateral discussion—in other words, not using the EU negotiators anymore—with the US. The good news I can tell him is that we have moved to a new phase. The Secretary of State for International Trade this week is starting discussions to try to resolve this problem.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

I very much welcome the fact that 11,000 or more of my constituents have benefited from the furlough scheme. Covid is changing our economy. We therefore need to focus on creating new sustainable jobs. That is why it is even more important that we press ahead in the south of Scotland with the borderlands growth deal. Will my right hon. Friend agree that we need renewed impetus into the deal, in particular into delivering the mountain bike innovation centre of Scotland in Innerleithen?

[Mr Jack]

I thank my right hon. Friend for the invaluable work that he did in bringing the borderlands growth deal to fruition. I am also delighted to inform him that the business case for the mountain bike innovation centre was delivered by the Borderlands Partnership only yesterday. It obviously has to go through further assessments in the usual way, but I am well aware of and support the initiative, because mountain biking in what is a very beautiful part of Scotland is an incredibly popular sport, and it is locally a very popular initiative.

Constitutional Law

David Mundell Excerpts

Tuesday 19th May 2020 Commons Chamber

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con) [V]]

May I add my congratulations to the hon. Member for Edinburgh South (Ian Murray) on his return to the role of shadow Secretary of State for Scotland after his sabbatical? One of the great disappointments to me in my time as Secretary of State was the announcement, following his departure from that role, and in the absence of a Front-Bench spokesman, that either the Leader of the Opposition himself or the shadow Chancellor would participate in Scottish questions. Perhaps not unsurprisingly, immediately before the first such occasion, a shadow Scottish Secretary was appointed.

This process is important. It is unusual not just because we are participating in a virtual Chamber but because we are in the Chamber more generally. Usually, section 104 orders and others that flow from the original Scotland Act are transacted on the Committee corridor and get very little attention, but, as the Minister said, they are in many ways the backbone of the devolution settlement and the relationship between the two Governments and Parliaments. It is very easy, particularly given some of the headlines and media reports that we have seen in recent weeks, to think that the devolution settlement is not working, but this order and all the others that go through Parliament are actually a manifestation of the fact that it is working. Behind the scenes, officials in the UK Government and Scottish Government work closely together to ensure that these orders and the things that really matter to people in Scotland—the provision of a police service and a criminal justice system—go ahead in a way that relates to the whole of the United Kingdom. As the Minister said, this order ensures that, if people are in England or Wales, such orders still apply and the benefits system recognises that.

It is very important, when we see the flare-ups that sometimes happen between politicians north and south of the border, that we understand that, in the day to day, the devolution settlement is working and has been tested through these systems. There were many times when I had to put through orders on matters of substance with which I did not agree, but I did agree that the Scottish Parliament had made that decision, in terms of the devolution settlement, and therefore it was appropriate that the Westminster Parliament and the UK Government ensured that that legislation was fully enacted.

I want to give my thanks and praise to the police in Scotland for the job they do more generally and what they have done specifically during the coronavirus crisis. I particularly commend the chief constable of Police Scotland, Iain Livingstone, for his calm, measured approach to these matters. He said right at the start that it was important that he continued on the basis of policing by consent. From my experience, and from feedback I have received from constituents, I think that has been achieved. That is very important. He underpinned that by setting out three key roles for Police Scotland: ensuring that social distancing is enforced to reduce the mortality rate during the spread of the virus; ensuring that the relationship of trust between the public in Scotland and the police is maintained; and, of course, ensuring the welfare and safety of not just police officers but their families.

I also commend the chief constable on his very reasoned approach. When there were some differences in the guidance between England and Scotland and we heard some unhelpful suggestions, from my point of view, that we should have border patrols, Iain Livingstone was clear that that would be a wholly inappropriate use of police resources. That was very helpful for my constituents, many of whom cross the border regularly.

The Minister and the shadow Secretary of State for Scotland have already alluded to the shocking report that in the first few weeks of the lockdown 100 officers had been attacked or the subject of abuse. As the deputy chief constable Fiona Taylor said, that is outrageous and disrespectful. Abuse and assault are simply not part of the job of police officers and can never be tolerated. I think that that is at the heart of the legislation in the Scottish Parliament and this subsequent order to ensure that we do not in any way accept that the abuse or assault of police officers is regarded as routine or tolerated. In the event of such behaviour they must be supported in every way.

I do not think that we waited six years for this subordinate legislation to come through just so that the hon. Member for East Lothian (Kenny MacAskill), who in 2014 was the Justice Secretary in Scotland and brought forward that Act, could speak in this debate. I am sure he must be disappointed, given the passion that I know he has for this matter and for an effective criminal justice system, that it has taken quite so long for the legislation to be fully enacted and this order put in place, just as I am sure he was disappointed that it took until 2019 for the victim surcharge fund, which was also announced in 2014, to get up and running in Scotland.

This is not, Mr Deputy Speaker, the place to rehearse arguments that are rightly had in the Scottish Parliament, but it would be wrong for me not to ensure that the House is aware that my Scottish Conservative colleagues in the Scottish Parliament are concerned about the Scottish National party Government’s approach to the police and justice system in Scotland, particularly in relation to the ongoing issue of police funding and the ability of the police to do the job that is important to them. Indeed, my colleague Liam Kerr MSP has brought forward legislation in the Scottish Parliament which would give police officers even further protection. The events to which I have just referred, which have happened to police officers on at least 100 occasions, demonstrate that it is appropriate to have additional measures in place. Conservative colleagues in the Scottish Parliament will continue to advocate for that, and to call the SNP Government to account on their approach to policing and justice in Scotland.

The order, however late in the day, is to be welcomed. It is important that, wherever people who have been asked to make such an order are in the United Kingdom, the orders can be effectively approached. I therefore hope that the House will take the view that the order should be passed.

I have one specific query that I want to raise with the Minister, which is in relation to the Department for Work and Pensions and its ability to deal with such things at this time or in the immediate future. As we know, and as the shadow Secretary said, there has been an increase in the existing claimant count, so that is an increasing workload, but it has also obviously prioritised within its workload. I hope the Minister, in his closing remarks, will confirm that the DWP will in due course have the capacity to deal with these orders. We all want to see a minimal amount of these orders, because the optimum situation would be—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. We gave you a bit of injury time to get the question out and I know the Minister heard it. Thank you very much for your contribution. I call Kenny MacAskill.

Scotch whisky: US tariffs

David Mundell Excerpts

Thursday 30th January 2020 Westminster Hall

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

I beg to move,

That this House has considered the effect of US tariffs on the Scotch whisky industry.

It is a pleasure to serve under your chairmanship, Ms Buck. I am delighted that the Minister, my hon. Friend the Member for Moray (Douglas Ross), is responding to the debate, because he is the Member of Parliament with the most whisky distilleries in his constituency. He has been a powerful advocate for the industry since he was first elected.

For some years, the Scotch whisky industry has enjoyed a renaissance. There is a romance about Scotch, a heritage that is unmatched, and a global reach that is unrivalled. As an economic reality, Scotch whisky provides jobs and investment in rural communities, underpins a supply chain that extends across the UK, and has become central to Scotland’s tourism offer, attracting visitors to our shores from all over the world. As Secretary of State for Scotland, I spoke often of the whisky industry’s stand-out success. By the end of my tenure, I could recite the numbers in my sleep: £4.7 billion in exports to 180 countries globally, 40,000 jobs supported across the UK, 20% of UK food and drink exports, 41 bottles exported every second.

Global Britain, which is being debated in the main Chamber right now, is surely about reinvesting in the UK on the world stage; championing rules-based trade; and demonstrating that the UK is open for business, outward-looking and confident in its trading prospects. The Scotch whisky industry has led the way on that in its 150 years of exporting. Distillers large and small bestride the world and the brands have become some of the most recognised globally, as I saw for myself when promoting the industry in countries as diverse as Argentina, Mozambique and Japan, always with positive support from the Scotch Whisky Association and its members.

This great Scottish and British export has been put under considerable pressure since the imposition by the United States last October of a 25% tariff on the import of all single malt Scotch whisky and Scotch whisky liqueurs. I asked an urgent question in Parliament ahead of the tariff’s imposition and during the debate that followed, along with other Scottish Members, I set out the industry’s concerns about its potential impact. The Prime Minister spoke to President Trump, as I requested in those exchanges, and many MPs lobbied US Ambassador Woody Johnson.

Regrettably, the tariff imposition went ahead. I should be clear, however, that the US is legally entitled to impose the tariff because of the World Trade Organisation’s ruling on the long-running dispute between the EU and the US about aircraft manufacture. To cut a long story short, the WTO found that both Europe and America had given illegal subsidies to Airbus and Boeing. The WTO said that until the subsidies were repaid and their impact eliminated, each side was entitled to impose retaliatory tariffs on the other’s exports to encourage compliance. That may be legal, but it is a bitter blow to the Scotch whisky industry.

The US is Scotch whisky’s most valuable global market; more than £1 billion of Scotch whisky was exported there in 2018. The disconnect between the source of the dispute and the UK products affected by the tariffs is particularly galling. The US chose not to impose tariffs on imports from UK aircraft manufacturers, so Scotch whisky is bearing almost two thirds of the total tariff liabilities imposed on UK exports to the United States.

Our cashmere and shortbread industries are feeling the pain every bit as much. As the Minister and my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) have highlighted, those industries have also been targeted and their imports to the US subject to a 25% tariff. Given the importance of cashmere to the Borders, my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk raised his concerns directly with the EU Trade Commissioner. Depressingly, they have not even replied, which suggests that the EU does not recognise the economic impact of those taxes on businesses in rural Scotland.

[Peter Grant (Glenrothes) (SNP)]

I commend the right hon. Gentleman for his tenacity in pursuing this matter, which concerns us all. He has highlighted the vastly disproportionate effect that the tariffs will have on the Scotch whisky industry. He has also referred to other important Scottish exports that are affected. Has he seen any analysis of the proportionate effect on Scotland’s economy, compared with the economy of other parts of the UK, of the imposition of those tariffs? If that has not been produced, does he agree that it would be a good idea for the Government to produce it?

[David Mundell]

I thank the hon. Gentleman for his helpful intervention. I will come on to the initial feedback in relation to the impact of the tariffs. If we cannot resolve the issue in the short term, however, his suggestion has much to commend it.

As the hon. Gentleman alluded to, it is the small businesses, the new distilleries, that will be worst-hit as a consequence of a dispute in an industry with which they have no connection. Large spirits companies have portfolios of products that make them less vulnerable to market changes, but as Diageo chief executive Ivan Menezes recognised today, it is “devastating” for the industry as a whole. He said:

“It’s not a big impact on Diageo on the single malts into the US, however for the industry in Scotland, it’s devastating. It impacts small distillers, farmers and employees there. Thousands of jobs. That’s our focus. We hope sense will prevail between the US and the UK and the EU to get these tariffs down.”

It could get worse. Following a WTO ruling last December that the UK, among other European countries, was still in breach of WTO rules in its support for Airbus, the US Government proposed to increase existing tariffs and expand the coverage to include more products. As early as next week, we will know whether the tariffs on Scotch malt whisky or other Scottish products will rise or widen in their scope. Most troublingly, they could include blended Scotch whisky.

Meanwhile, since June 2018, the EU has imposed a 25% tariff on US whiskies in response to US tariffs on steel and aluminium. That is another long-standing dispute and another unrelated sector bearing the painful consequences of Governments’ failure to resolve disputes. It is a far cry from the mid-1990s, when the US and the EU, together with Canada and Japan, agreed to remove all tariffs on imported brown spirits. That unleashed an increase of 270% in total Scotch exports to the US. That is impressive, but it is put in the shade by the 400% increase in US whisky exports to the UK over the same 25-year period. Friendly competition has been good for both industries, for tax revenues and for consumers.

It could not be clearer that the UK Government need to resolve the outstanding issues on UK subsidies to Airbus to ensure that the UK is fully compliant with international law in the WTO’s view. That is evidently key to ensuring the return to tariff-free trade in whisky across the Atlantic.

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

I commend the right hon. Gentleman for bringing this issue to the Floor of the House. He is making a compelling argument for the virtues of free trade, something that we have not had to do for some decades now, although I fear we may be returning to it again in the future. Does he agree that there is a fundamental disconnect here? If the sector that is in breach of WTO rules is not the one that suffers the penalty, there will never be any incentive for the behaviour to be improved.

[David Mundell]

The right hon. Gentleman makes an excellent point. His constituency makes two excellent whiskies, Highland Park and Scapa. People involved in the distilleries have nothing to do with the steel and aluminium industry; they have nothing to do with competition in the aircraft industry. It is completely wrong that they should be drawn into what is not their dispute. That is why we must resolve the underlying disputes.

[Mr Carmichael]

The right hon. Gentleman refers to Highland Park and Scapa, both of which are products that are owned by larger groups, and so will probably be better able to sustain the damage brought by the tariffs. Surely, however, we must view the industry as one unit. The small, start-up distilleries, from Arran back in the 1990s to Kilchoman and Ardnahoe on Islay now, are the businesses that will suffer the most serious impact; they play an important role for the success of the conglomerates.

[David Mundell]

I absolutely agree. It was very welcoming to hear Ivan Menezes, head of Diageo, one of the most successful spirits companies in the world, focusing on that. He said that although Diageo has a portfolio of spirits and can weather the storms, this is devastating for the industry as a whole; Diageo wants to see a resolution through its own offices and through the Scotch Whisky Association for the whole industry.

Since a tariff was imposed on 18 October, export figures appear to paint a bleak picture, although there may have been some additional exporting ahead of the possible introduction of the tariffs to avoid them. According to the Scotch Whisky Association, single malt Scotch exports to the US in November 2019 fell by 33% by value compared with November 2018, following a fall of 26% in October. Although it is too early to tell the longer-term impact, if such drops in exports are sustained over a year and mirror the fall in US whisky imports to the EU in the last 18 months, that would mean a loss of around £100 million in exports to the United States, with a corresponding impact on investment, productivity and, eventually, jobs at home.

For medium-sized and smaller distillers, single malt is all they have and the US market is vital. They have invested in single malt because that industry is growing. Over the last decade, global sales of single malt have grown 166%, and growth in the United States has been even higher—up 230% over the past 10 years. These small and medium-sized distillers cannot shift their investment and are being hit particularly hard.

Distillers are waiting now to see what will happen in the next few weeks. They have paused investment, reduced exports and delayed launching new brands. Some have cut jobs in the US and have stopped hiring in Scotland. Over time, as stocks in the US market run down, the impact will be clearer. Some brands will disappear from the US market altogether, as it becomes uneconomic for smaller distillers to export them. Market share and brand recognition built up over many years, once lost, will take a considerable time to rebuild. The longer the tariffs are in place, the more profound the impact will be on the industry and in Scotland.

Three months ago, when it became clear that import tariffs would be imposed on Scotch whisky, the UK Government asked the Scotch Whisky Association to suggest a package of support for the industry to help distillers cope with an unprecedented challenge in its largest marketplace worldwide. That request was welcome, but the industry is now looking for action to follow through on the proposals submitted. The Budget is due soon, and yesterday my hon. Friends the Members for West Aberdeenshire and Kincardine (Andrew Bowie) and for Berwickshire, Roxburgh and Selkirk (John Lamont) and I met the Chancellor to discuss those proposals and how the industry, and cashmere and shortbread, could be helped more generally in the current circumstances. I look forward to his formal response in or before the Budget.

Obviously, any increase in excise duty in the March Budget would be unacceptable, and the potential impact of the introduction of a digital service tax on UK/US trade discussions and on whisky needs to be understood. It is too simplistic to suggest that France’s decision not to proceed with the digital services tax as planned is the reason why champagne and cognac are not subject to the tariffs, but the full implications of the unilateral introduction in the UK of a digital service tax need to be understood before that step is taken.

It is instructive that the EU has already agreed to increase the co-financing for wine promotion schemes to help boost exports in the face of the tariff on wine. Since the EU imposed tariffs on US whisky, the US government have delivered a $3 million package for trade promotion activities in the EU. The UK Government can learn from those actions. Support must clearly be focused on the need to build a more secure UK base while the US market, which is the cornerstone of investment and business plans, is under threat. We also need to see a resolution of the underlying dispute, starting by taking unrelated sectors out of the line of fire, as the right hon. Member for Orkney and Shetland (Mr Carmichael) said.

On a visit to Roseisle Distillery on Speyside last December, the Prime Minister committed to removing the EU’s tariffs on US whisky as soon as the UK is legally able to following its departure from the EU. That was a welcome statement. I know the Prime Minister, the International Trade Secretary and the Trade Minister have raised this issue at the highest levels in the US Administration in multiple meetings and calls. As we embark upon a trade negotiation with the US, eliminating existing tariffs on both single malt Scotch whisky and American whisky would be an important early confidence-building measure. I urge the Government to make that explicit when publishing the UK’s negotiating objectives for trade talks with the US; otherwise, one could understand why an industry as pro free trade as the Scotch whisky industry would start to question the value of such talks.

We need to find a solution that works for the Scotch whisky and US whisky industries together. We need to return to tariff-free trade in whisky across the Atlantic. We need to see a laser focus from the Government on resolving the Airbus issue. I hope the Minister will commit to pressing colleagues in the Department for International Trade and 10 Downing Street to do that, and will reassure us that the concerns we have raised about a digital service tax are well understood within the Government, to ensure that no further unintended or collateral harm is done to the Scotch whisky industry.

Every time a small Scotch whisky distiller exports a bottle of single malt Scotch whisky to the United States, it is writing a cheque to the US Government for an additional 25% of its value, to pay for a dispute that has nothing to do with it. We should think about that for a second. On average, one bottle of single malt is exported to the US every second, and every second since 18 October, each bottle has had an additional 25% tax added to it. That equates to 5,400 bottles being taxed over the course of the debate, if it runs its duration. No business or industry could sustain that for long.

The scale of the industry, and its importance to Scotland and the wider UK economy, should focus minds on a swift resolution to this dispute. From my constituency in the south of Scotland, to communities on Speyside and on the islands of Scotland, ambitious small businesses are paying the price for a trade dispute that is entirely unrelated to their industry. That cannot be fair or proportionate, and we cannot allow it to continue.

[Ms Karen Buck (in the Chair)]

It might be helpful to Members to know that we will start the winding-up speeches at about 2.40 pm. Given the number of people who want to speak, Members should limit themselves to about five minutes, so that everybody has a chance to be called.

--- Later in debate ---

[David Mundell]

Thank you, Ms Buck, for your chairmanship of the debate. By Scottish political standards it was very consensual, and I am grateful to the Members who took part. It was a particular pleasure to be, for the first time in 15 years, in a parliamentary debate that involved the hon. Member for East Lothian (Kenny MacAskill). In a different life, we used to spar in the Scottish Parliament.

It was also good to hear from the new hon. Member for North East Fife (Wendy Chamberlain), who brings a great deal of experience of this industry to Parliament. She touched on the importance of the whisky industry in rural communities. The industry provides jobs of a quality that is not otherwise available in rural communities. Across large swathes of Scotland, the whisky industry is the only industry that can provide such jobs, which is why it has huge importance way beyond simply the revenue it can generate.

Having heard other Members mention the whisky interests in their constituencies, I realise I was remiss in not mentioning those in my own. I should, of course, have referenced the revitalised Annandale Distillery on the outskirts of Annan, which produces two whiskies: Man O’Words and Man O’Sword. I think we have kept mainly to the Man O’Words tradition today. I also have in my constituency a large maturation facility near Poniel in South Lanarkshire, which is part of the Bacardi group under the Dewar’s label. Both are very important to my constituency.

I was pleased by the contributions from across the Chamber, but I was particularly pleased by the Minister’s remarks. He committed to responding to the SWA’s proposals about support for the industry. As he alluded to, that work should be done in conjunction with the Scottish Government; both Governments have levels of responsibility here. He also touched on tourism, and the whisky industry has raised issues about making distilleries more carbon-neutral. There are a number of issues. Duty, however, is very important, and his restatement of the Conservative party manifesto commitment to a duty review is extremely welcome. Given the hard work that he, others and—if I may be so bold as to say so—I put into getting that commitment, we want to see it followed through.

I hope that those in the Treasury, the Prime Minister and others take on board my points on concerns about a digital services tax and how that might impact whisky and other products. I hope we will be able to follow through on the Prime Minister’s commitment—which, as the Minister said, was made at Roseisle Distillery in his constituency—that the UK, once it is legally able to, will remove tariffs on bourbon and other US whiskeys. That would be a huge sign of our commitment to free trade and our positivity about resolving this issue. As I said in my opening speech, I want us to get to the point that we can go into trade talks with the US clear that there will not be duties on whiskies, whether they are from Scotland or the US.

I hope this debate has been a positive contribution to the ultimate resolution of this issue. It is clear that Members from Scotland representing all parties want to see this issue resolved and want this industry, which is vital for our country and our communities, to prosper in the way it has in the recent past. That can be achieved through the removal of US tariffs and the non-application of further tariffs.

Question put and agreed to.

Resolved,

That this House has considered the effect of US tariffs on the Scotch whisky industry.

Claim of Right for Scotland

David Mundell Excerpts

Monday 27th January 2020 Commons Chamber

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Tonight, I rise to remind the House that the claim of right for Scotland is a principle that recognises that the people of Scotland have the sovereign right to determine the form of government best suited to their needs. This right is well established; it was first set out in the Declaration of Arbroath in 1320 and was most recently endorsed by Parliament in the Commons in a debate in July 2018—a debate in which I was privileged and proud to speak.

In Scotland, this House is not recognised as sovereign. The people of Scotland are sovereign, and they are angry that this House, this Government, are over-reaching themselves by trampling all over Scotland’s devolution settlement, with repeated and concerted attempts by Tory Members to shout down Scottish National party Members when we dare to speak up on behalf of Scotland.

The debate tonight comes at a critical time for Scotland, with the UK on the cusp of withdrawing from the European Union—something which the people of Scotland rejected by a significant majority, but which is to be imposed upon them against their expressed democratic wish. However, if one accepts the European Union referendum result in England despite all the cheating and law breaking that we all know went on, because the democratic will of the people of Scotland is different from the democratic will of the people of England, then—too bad—Scotland is to be ignored, dismissed and dragged out of the European Union anyway.

With the Westminster power grab and the lack of consent given to this disastrous Brexit by the Scottish Parliament, the devolution settlement has been trampled underfoot by this Government—so much for a so-called union of equals; so much for Scotland leading the UK, not leaving the UK. How can this be a union of equals when the democratically devolved legislatures in Scotland, Wales and Northern Ireland have all refused to consent to this Tory Government’s withdrawal agreement, which will damage our jobs, our prosperity and our relationships with our European partners? This Brexit, which may yet deliver a no-deal scenario, is to be forced on Scotland against her will, exposing for all to see the myth of the so-called union of equals.

In the general election a few weeks ago, the Tories in Scotland unequivocally urged voters in Scotland to vote Tory to stop indyref2. We in the SNP stood firmly and proudly on a platform of saying no to Brexit and saying yes to the people of Scotland’s right to choose their own future. Scotland, by and large, did not vote Tory, but voted SNP in huge numbers. The SNP won 80% of the seats in Scotland, yet this Government still refuse to accept that the people of Scotland have made their choice—that they want Scotland to have the right to choose its own future because no one is better placed to make decisions for Scotland than the people who live in Scotland.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

I hear what the hon. Lady is saying, but in my constituency and other constituencies in the week of the general election, SNP candidates told voters that the election was nothing to do with independence, but that they were to vote SNP if they were against Brexit or if they were against Boris. However, at 10 o’clock on 12 December, it was all to do with independence.

[Patricia Gibson]

This is the kind of wilful, fingers-in-ears attitude that we have come to expect. Not everybody in Scotland who voted SNP is yet persuaded of the argument for independence, but what they do want is the right to choose.

We know that the Minister will trot out well-worn phrases and lily-livered lines about the SNP not winning more than 50% of the popular vote in the election in 2019. However, he must consider that the first-past-the-post voting system that he supports is the one in which we are working. Further, the SNP in Scotland has won the council elections in 2016, the Holyrood election in 2016, the general election in 2017, the European elections in 2019 and the general election in 2019. Each of those five elections was contested on one proposition by the Tories: “Vote Tory to stop indyref2”. The Tories in Scotland never mentioned any policies or discussed any other issues. They simply said, “Vote Tory to stop indyref2”. And yet, still they could not get close to beating the SNP in these elections.

For anyone to deny the democratic right of Scotland to have a say over her own future path, or to try to shift the goalposts on what winning an election actually means or looks like, is deluded. Doing an impersonation of King Canute trying to hold back the tide simply shows the desperation and arrogance of this Government, who think that if they can just ignore the pesky Scots for long enough, they will just give up. We will not give up. We in Scotland have a right. We have a right which we claim in no uncertain terms, to choose our own future, and we will not be denied.

Oral Answers to Questions

David Mundell Excerpts

Wednesday 8th May 2019 Commons Chamber

[Patrick Grady (Glasgow North) (SNP)]

7. What recent discussions his Department has had with the Scottish Government on the potential effect on the devolution settlement of the UK leaving the EU.

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

Mr Speaker, may I take this opportunity to mark the 20th anniversary of the first elections to the Scottish Parliament? Three current Members of this House were elected to that Parliament back in 1999, including me, but, far more importantly, it is a good time to reflect on devolution and the potential of the Holyrood Parliament to improve the lives of the people of Scotland.

The UK Government, including my Department, continue to engage in frequent and extensive discussions with the Scottish Government in a number of forums to discuss all aspects related to EU exit. Leaving the EU will of course result in substantially increased powers for the Scottish Parliament.

[Pete Wishart]

The Secretary of State reinvented history at the weekend when he said:

“I reject the…myth that people were told they would stay in the EU if they voted to stay in the UK”.

The truth is that Scotland voted to stay within the UK but is being dragged screaming and shouting out of the EU against its national collective will. Better Together in fact said:

“What is process for removing our EU citizenship? Voting yes. #scotdecides”.

What part of that tweet did he not quite understand?

[David Mundell]

I was inclined to vote for the hon. Gentleman to succeed your good self, Mr Speaker, before that intemperate question, although I note from his manifesto that he would no longer support independence if he was in your Chair.

I would point the hon. Gentleman to the debate around the EU at the time of the independence referendum, when the former First Minister of Scotland asserted that Scotland would automatically be in the EU as an independent country. That statement proved to be false.

[Alan Brown]

It is because of nonsense like this and Brexit being imposed on Scotland that many Scots now want a say in their future as regards independence. The Secretary of State’s Government accepted the Scottish National party motion on the Claim of Right, which states that it is the sovereign right of the Scottish people to decide their form of government and their constitutional future. Does he still agree with that principle?

[David Mundell]

Of course I agree with that principle, but I would point the hon. Gentleman to the recent opinion poll showing that only one in five people in Scotland want another independence referendum before 2021.

[Ronnie Cowan]

In the four parliamentary elections in Scotland since the 2014 referendum, the people of Scotland have voted overwhelmingly for pro-independence parties. Will the Secretary of State recognise that mandate and support moves for indyref2?

[David Mundell]

My recollection of the 2017 general election is that the SNP lost 500,000 votes and 21 seats and came within 600 votes of losing another six.

[Alison Thewliss]

During the Scottish Tory conference, Ruth Davidson told STV that she was getting ready to fight an independence referendum. Is there something the Secretary of State would like to tell us? Has the Tory party finally realised that it cannot deny the people of Scotland their right to have a choice over their own future?

[David Mundell]

As I myself told that conference, there is only one guaranteed way to get an independence referendum off the table and discussion of independence away from the Scottish Parliament, and that is to elect Ruth Davidson as the First Minister of Scotland. [Laughter.]

[Patrick Grady]

It’s comedy hour in the House of Commons.

I am not sure whether the Secretary of State fully recognises the implications of accepting the Claim of Right, as he did last year. Can he really believe that 20 years after devolution, once the Brexit process is complete constitutional perfection will have been reached on these islands? Is he really channelling Charles Parnell in reverse and saying to Scotland, “Thus far shalt thou go but no further”?

[David Mundell]

I am channelling the Edinburgh agreement, which said we would have an independence referendum in 2014 and that both sides would respect the result.

[Ross Thomson (Aberdeen South) (Con)]

As part of our devolution settlement, air passenger duty was devolved to the Scottish Parliament by the Scotland Act 2016, but yesterday Nicola Sturgeon broke her promise to cut APD. Does my right hon. Friend agree with me and business bodies that this tax disproportionately hits Aberdeen and the north-east and that, despite Derek Mackay trying to blame Westminster, the SNP would be better served arguing against this APD U-turn than arguing for independence?

[David Mundell]

I certainly agree with my hon. Friend that the SNP Government would do better to focus on the domestic issues that are important to the people of Scotland rather than on independence. As we reach this 20th anniversary of devolution, there remains some scepticism about the Scottish Parliament, but I remain very positive about the Parliament; it is the Government in that Parliament who are not delivering for Scotland.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

Given the Scottish Government’s failure to take on the welfare powers that have been devolved under the Scotland Act, what confidence has the Secretary of State that they will be able to take on the vast range of powers that will come to them as we leave the European Union?

[David Mundell]

It is obviously a matter of concern that welfare powers are being delayed, some of them until 2024. However, my hon. Friend may not know that this morning Derek Mackay, the Finance Secretary in the Scottish Government, asked for VAT assignment to be delayed until 2021. It does not seem to me that the Scottish Government are focused on taking on these powers; instead, they are focusing on their independence obsession.

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

How much funding for Brexit preparation has been received by the Scottish Government, and how much of that has been passed on to councils in Scotland?

[David Mundell]

The sum is in the region of £100 million. As far as I am aware, none of it has been directly made over to local government in Scotland, although I am sure that the Brexit Secretary and Mike Russell will discuss that topic when they meet in Edinburgh this morning.

[John Stevenson (Carlisle) (Con)]

What really matters to Scotland, and to many parts of the north of England, is the Union of the United Kingdom. Does the Secretary of State agree that initiatives such as the borderlands growth deal can enhance the economic success of the Union? Does he also agree that part of the success of that initiative was due to the work done by MPs, councils and Ministers, and that perhaps the SNP Government could learn something from that?

[David Mundell]

I commend my hon. Friend—as I have done previously—for his work on the borderlands initiative, which demonstrates that in the south of Scotland and the north of England, so much more binds us together than drives us apart. The one thing that would be absolutely disastrous for the borderlands area is the introduction of a separate Scottish currency, and my constituents have made it very clear that they do not want Nicola Sturgeon’s chocolate money.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

I have the honour to be one of those three people who were first elected to the Scottish Parliament in 1999, and I am very proud of that. As the Secretary of State will recall, during the years that I spent at Holyrood I spent a lot of time arguing for the interests of my constituency, which we often felt was being neglected by all Governments, including one of my own colour. Today my constituents still feel that they are being left behind by the Scottish Government, who seem to be interested only in the central belt. Does the Secretary of State agree that it is crucial for the interests of all parts of Scotland to be brought to the fore and acted on under devolution?

[David Mundell]

I commend the hon. Gentleman and my right hon. Friend the Member for Wyre and Preston North (Mr Wallace), the two other Members who were in that first Scottish Parliament back in 1999. I am very aware of the hon. Gentleman’s efforts to promote the highlands in those days. It is a great disappointment to me, given the range of powers that have been devolved to the Scottish Parliament, that this Scottish Government are one of the most centralist Governments in history, seeking to draw power to the centre rather than to devolve it within Scotland.

[Stephen Kerr (Stirling) (Con)]

Now the SNP says that in its independent Scotland we would have a brand-new currency. Does the Secretary of State agree that the people of Scotland do not want a bureau de change at Berwick, and that the people of Stirling still want to use sterling?

[David Mundell]

I absolutely agree. It is completely ridiculous to suggest that my constituents in Annan should use one currency to get the bus to Carlisle and another currency to get the bus back. This is a ridiculous proposal, and the people of Scotland already see through it.

[Tommy Sheppard (Edinburgh East) (SNP)]

Two weeks tomorrow the people of Scotland go to the polls, and the Scottish National party will be fighting that election not just resisting the shambles of the Tory Brexit but demanding that the voice of Scotland be heard and the people of Scotland be given a choice over their own future. If my party wins that election, will the Secretary of State abandon his resistance to the Scottish Government being able to consult people on their own future?

[David Mundell]

I do not know what the hon. Gentleman’s definition of winning that election will be, but that election is to elect Members from Scotland to the European Parliament for as short a period as possible, and that should be the focus of that election.

[Tommy Sheppard]

That does not answer the question, and it certainly does not sound like the response of someone who believes in the Claim of Right. Is it not really the case that it does not matter how many elections we win and it does not matter how many times the people of Scotland demand a say in their own future, because the Secretary of State is part of a crumbling Government and his party, which has the support of one in five people in Scotland, will continue to deny them the opportunity to determine their own future?

[David Mundell]

The fundamental issue is that when the people of Scotland determined their own future in the 2014 referendum and voted decisively to remain in the United Kingdom, the hon. Gentleman and his friends did not like the answer, and their position is to keep going—to challenge that result until they get what they want. But I have been very clear: this Government will not agree to another independence referendum before 2021.

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

Does my right hon. Friend agree that, contrary to the manufactured myth of a power grab, on our leaving Europe the Scottish Government will receive significantly more powers?

[David Mundell]

That is absolutely the case, and the power grab myth has been deconstructed on many occasions. The reality, as we have heard in previous questions, is that significant powers on welfare and VAT are going to the Scottish Parliament, and the Scottish Government are asking for those powers to be delayed.

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

I share the Secretary of State’s sentiments in reflecting on the second decade of the Scottish Parliament. As someone who has served in both Parliaments he will be well aware of the importance of the Barnett formula, which is the financial mechanism that ensures that the resources of the UK are pooled and shared across each nation based on the needs of the population. In March the UK Government announced the stronger towns fund, which allocates £1.6 billion of funding for towns in England. However, no Barnett consequentials have been announced with respect to Scottish towns. So can the Secretary of State enlighten us on how much Scottish towns will receive from this fund, when they will receive it and who will administer the payments?

[David Mundell]

An announcement on the Scottish towns fund will be made shortly.

[Ruth George (High Peak) (Lab)]

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

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

Evidence shows that universal credit is working. We are working closely with the Scottish Government to help them achieve their goals on UC flexibilities. UC Scottish choices are now available to all claimants in Scotland on full service who are not in receipt of a Department for Work and Pensions alternative payment arrangement.

[Ruth George]

The Scottish choices do not help people to be paid differently if they are receiving less, and Citizens Advice Scotland has raised numerous concerns about the process of migrating on to UC. In one case a 24-year-old single parent was left £90 a week worse off. What are the Government doing to ensure that those on natural migration are aware of their entitlements and do not suffer like that financially?

[David Mundell]

I am always willing to look into individual cases, and we are working extremely closely with the Scottish Government on their proposals to make the changes they are able to make under the Scotland Act 2016, but of course the Scottish Government are also able to make additional payments to any individual if they choose to do so, but so far they have not chosen to do so.

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

First, I would like to associate myself with the comments made in relation to the 20th anniversary of the Scottish Parliament—undoubtedly Labour’s finest achievement.

Universal credit is subject to a two-child cap and the subsequent rape clause. In the Scottish Parliament the Tories called it a fair policy; their Scottish leader calls it a “box-ticking exercise”. Can the Secretary of State for Scotland explain why his Government believe it is fair to force the survivors of rape to relive their trauma to claim the support they and their children need?

[David Mundell]

As the hon. Lady knows, this issue has been debated frequently in this House and in the Scottish Parliament, and the justification for the process has been set out: it is actually to help people in those circumstances. As she knows, the Scottish Parliament has the power to do something different, and if it does not agree with this policy, it could do something different right now. Instead, it is focused on independence rather than on bringing in new welfare arrangements.

[Lesley Laird]

That is a pathetic response to what really is a callous and cruel policy. The reality is that the right hon. Gentleman’s Government chose this policy; they chose to cut support to the poorest while giving tax cuts to the richest. They say that the best route out of poverty is a job, but under this Government, jobs are paying less than the living wage and often involve zero-hours contracts. At the weekend, Ruth Davidson talked about the Scottish Tories not wanting anyone to be left behind. Can the Secretary of State explain how cutting tax credits for working families and forcing them to go to food banks is not leaving anyone behind?

[David Mundell]

What a surprising contribution from the hon. Lady—I would have thought that if she believed that, her colleagues in the Scottish Parliament would be advocating it. Instead, we learned recently that Richard Leonard’s keynote policy for Scottish Labour is an NHS pet service.

[Martin Whitfield (East Lothian) (Lab)]

5. What assessment he has made of the adequacy of arrangements for voter registration for the forthcoming European parliamentary elections in Scotland.

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

I am content that the arrangements are robust. The UK Government have worked to ensure that the “register to vote” website, which has been running since 2014, is secure against malicious attacks and robust enough to manage traffic in line with registration deadlines.

[Martin Whitfield]

If it is robust enough, how come only 288 of the 2,000 non-UK EU citizens in East Lothian have managed to register? Is that really the foundation of the Secretary of State’s democracy?

[David Mundell]

If the hon. Gentleman can bring forward details of any citizens who have tried to register but not succeeded in doing so, I will obviously look at that. There have been many campaigns to encourage people to register, and I particularly commend the Daily Record newspaper for its efforts in that regard.

[Ian Murray (Edinburgh South) (Lab)]

The Secretary of State is a big advocate of the Prime Minister’s Brexit deal. If he has such great confidence in that deal, why does he not have confidence in the people and allow them to decide whether it is a deal that they want?

[David Mundell]

The people of Scotland made their decision in 2014; the people of the United Kingdom made their decision in 2016.

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

8. What recent discussions his Department has had with the Scottish Government on the potential effect on the devolution settlement of the UK leaving the EU.

--- Later in debate ---

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

11. What recent discussions his Department has had with the Scottish Government on the potential effect on the devolution settlement of the UK leaving the EU.

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

I refer the hon. Members to my answer to Questions 1, 2, 3, 6 and 7.

[Deidre Brock]

It has emerged that the polling company Ipsos MORI has been commissioned by the Cabinet Office to conduct polling in Scotland on the state of the Union. That is surely a sign that this Government are deeply rattled by the growing support for independence. Was the Secretary of State made aware of this, and will he support the full publication of this taxpayer-funded polling?

[David Mundell]

It might surprise the hon. Lady to learn that all Governments, including the Scottish Government, poll on their policies.

[Mhairi Black]

The Secretary of State asked for context in an earlier answer. The House of Commons Library has a Government-issued leaflet from 2014 explaining why people should vote against Scottish independence. Under the heading “An influential voice in important places”, it says:

“As one of the EU’s ‘big four’ nations, the UK is more able to protect Scottish interests”.

Ruth Davidson herself said that voting no meant that we would stay in the EU. Will the Secretary of State take this opportunity to get his story straight?

[David Mundell]

To give the hon. Lady some context, David Cameron made it very clear in 2013 that there would be an EU referendum. The SNP and the former First Minister’s assertion was that Scotland would automatically stay in the EU if it became independent. That was not correct. The question for those advocating a yes in 2014, as it is now, is how an independent Scotland would become a member of the EU.

[Brendan O’Hara]

Many of us in Argyll and Bute have been trying for a long time to pin down the Secretary of State on this question. Will he now take the opportunity to spell out exactly what he believes the economic benefits will be, specifically for my Argyll and Bute constituency, of ending freedom of movement?

[David Mundell]

We are engaged in a year-long consultation on the immigration White Paper. I am happy, as part of that consultation and engagement, to come to Argyll and Bute, just as the Home Secretary went to Aberdeenshire last week, to hear what businesses and people there have to say.

[Drew Hendry]

It was reported at the weekend that the Secretary of State could not even get toast out of a toaster. We cannot get an answer out of him. Are there any circumstances whereby he would support the right of the Scottish people to determine their own future through a referendum?

[David Mundell]

I support the right of the Scottish people to determine their future through a referendum. They already have—on 18 September 2014, when they voted decisively to remain in the United Kingdom.

[Paul Masterton (East Renfrewshire) (Con)]

They asked for more powers over welfare and they have delayed them or handed them back to the Department for Work and Pensions; they asked for the power to cut air departure tax and they have U-turned; they asked for power over VAT assignment receipts and they have postponed it. Does my right hon. Friend agree that, rather than moaning about all the powers they do not have, Nicola Sturgeon and the Scottish Government should get on with using the extensive powers they do have to make the lives of my constituents in East Renfrewshire better?

[David Mundell]

I absolutely agree. The Scottish Parliament has tremendous potential to make a difference for the people of Scotland, but it will not do so as long as it is bogged down in the SNP’s independence agenda. We hear about further legislation being introduced on that rather than on issues that matter: health, education and transport.

[Tom Pursglove (Corby) (Con)]

People in Corby are overwhelmingly pro the United Kingdom Union, but voted overwhelmingly to leave the European Union. What impact does my right hon. Friend believe that ignoring referendum results and not leaving the European Union would have on the devolution settlement?

[David Mundell]

I am absolutely clear that the results of both referendums—in 2014 and in 2016—should be honoured. The Government are determined to do so.

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

12. What recent discussions he has had with Cabinet colleagues on the level of child poverty in Scotland.

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

I have regular discussions with Cabinet colleagues on a range of issues and we are committed to action that will make a meaningful difference to the lives of disadvantaged children and families. This goes beyond a focus on the safety net of the welfare system to tackle the root causes of poverty and disadvantage. The UK Government will work with the Scottish Government on their child poverty strategy given that this spans both devolved and reserved interests.

[Hugh Gaffney]

In a recent report, the Resolution Foundation projected that the Scottish child poverty rate will hit 29% by 2023-24—the highest rate in 20 years —and concluded that the Government’s welfare reforms are to blame. Will the Secretary of State take a stand in the Cabinet against policies like the unfair benefit freeze or will he allow more children to fall into poverty?

[David Mundell]

I do not accept that analysis. Of course there is concern about the number of children in poverty in Scotland, but, as I outlined in my initial answer, the best way to resolve it is for the Scottish Government and the UK Government to work together and focus on a really important issue rather than constantly discuss the constitution.

[Danielle Rowley (Midlothian) (Lab)]

While the Secretary of State gives false assurances about child poverty in Scotland, the Trussell Trust tells me that in my constituency it is giving out more and more food parcels to families and children. How is he using his power to ensure families in Scotland are not relying on food banks?

[David Mundell]

The first thing, as I have outlined in virtually every answer today, is to get the political debate in Scotland off the constitution and on to the issues that really matter to ordinary families. The idea of bringing forward a new independence referendum Bill in the Scottish Parliament, which would take up time when the Scottish Parliament could focus on issues such as this, is the problem right now.

[Douglas Ross (Moray) (Con)]

13. What assessment he has made of the findings of the Scotch Whisky Association’s “Scotch Whisky Economic Impact Report 2018”, published on 30 April 2019.

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

I am very pleased to see how this important sector is thriving. The UK Government are supporting the Scotch whisky success story by freezing duty on spirits again this year. That demonstrates clearly how the UK Government are taking the right decisions on taxes and delivering for the businesses and people of Scotland.

[Douglas Ross]

The report highlighted that the Scotch whisky industry’s contribution to the UK economy has increased by 10% to £5.5 billion. Due to the UK Government’s welcome announcements, the industry has reinvested £500 million over the past five years in production, distribution and tourism. Does the Secretary of State agree, however, that we can do more to ensure a fairer taxation system for the Scotch whisky industry?

[David Mundell]

My hon. Friend represents the constituency with the most distilleries in the United Kingdom and is a very powerful advocate for the industry. We consider it to be of very great importance, and we will look at any proposals it cares to bring forward in that regard.

The Prime Minister was asked—

Supreme Court Judgment on the UK Withdrawal from the European Union (Legal Continuity) (Scotland) Bill

David Mundell Excerpts

Thursday 13th December 2018 Written Statements

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

Today the Supreme Court handed down its judgment on the UK Withdrawal from the European Union (Legal Continuity) (Scotland) Bill. The Bill was passed by the Scottish Parliament in March of this year. In April the UK Government’s Law Officers referred the legislation to the Supreme Court for a ruling on whether it is within devolved legislative competence.

As I stated when the Bill was referred to the Supreme Court, given the view of the Presiding Officer that the continuity Bill was not within the legal competence of the Scottish Parliament, it was right to seek clarity. The reference was simply in line with the processes provided for in the Scotland Act 1998, which anticipated such situations occurring.

And so I am grateful to the Supreme Court for examining the issues here and for providing greater clarity. This is not simply a question of where constitutional powers lie, important as those questions are. Greater clarity was needed to ensure that our statute book functions properly and that the law is clear for businesses and individuals.

The UK Government thank the Court for its time in considering this case.

The Court’s judgment that significant parts of the Bill are outside the competence of the Scottish Parliament shows that the UK Government was right to refer the Bill to the Supreme Court. We will now carefully review the Court’s judgment.

We want to continue to work with the Scottish Government to provide much needed clarity for businesses and individuals in Scotland. This has been our aim throughout this process.

I have always been clear that it is in the best interests of the people of Scotland for the UK and Scottish Governments’ to work together as we leave the EU.

This remains my commitment and this will continue following this judgment.

[HCWS1180]

Response to Opposition Day Debate: the Claim of Right for Scotland

David Mundell Excerpts

Thursday 13th September 2018 Written Statements

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

On 4 July 2018, this Parliament debated a motion to endorse the principles of the claim of right for Scotland.

This debate was an opportunity to discuss the democratic tradition in Scotland, of which both the 1689 and 1989 claim of right documents form a significant part. The claim of right, set out by the Scottish constitutional convention in 1989, was a key part of a process which ultimately led to the devolution of powers from the Parliament of the United Kingdom to the new Scottish Parliament in the Scotland Act 1998.

The claim of right sought to mobilise and secure the approval of the Scottish people for a new Parliament and then to see that Parliament established. The referendum of 1997 resoundingly secured that approval and the new Parliament was convened in 1999.

While this debate on 4 July secured the UK Parliament’s endorsement of the principles of the claim of right, with the Parliament and the Government voting to support the motion, the UK Parliament has already demonstrated its endorsement quite clearly by legislating for the existence of the new Scottish Parliament in the first place.

Furthermore, the UK Parliament has continued to demonstrate its support with significant deepening of devolution via further Scotland Acts in 2012 and in 2016, along with many statutory instruments which have further strengthened the settlement. For example, the Scotland Act 2016 has transferred a wide range of powers to the Scottish Government and Scottish Parliament, including significant powers relating to the transfer of £12 billion worth of income tax powers and welfare powers worth £2.8 billion in 2015-16. By devolving historic new powers, the Act makes the Scottish Parliament one of the most powerful devolved Parliaments in the world and demonstrates the UK Government’s commitment to the devolution envisaged in the claim of right.

Devolution and implementation of the Scotland Act 2016 remains a key priority for the UK Government and we are committed to implementing the Scotland Act in full. We are working constructively with the Scottish Government to bring remaining sections into force.

In line with the principles of the claim of right the people of Scotland have also provided their approval to another key part of Scotland’s democratic tradition: that of the Union. In the referendum of 2014 the people of Scotland voted clearly to remain part of the United Kingdom, and have two Parliaments and two Governments.

As we prepare to leave the EU, the arguments for Scotland remaining a part of the UK are just as compelling as they have always been.

Now is the time for the United Kingdom to be pulling together, not pulled apart. The Scottish Government should be working with the UK Government to get the right deal for the whole of the UK, and we should be putting all our energies into making sure that we get that right deal for the UK and the right deal for Scotland in our negotiations with the European Union.

The debate featured passionate voices from all sides of the House. It also demonstrated the importance of respecting Scotland’s democratic tradition, which this Government have done and will continue to do; a tradition which respects the principles of the claim of right and of the Union which the people of Scotland have determined is the best way to achieve a strong Scotland.

The focus now should be on working together to achieve our aims and ensure that the significant powers that the Scottish Government and Parliament have are used in ways that deliver practical benefits for the people of Scotland.

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