Oral Answers to Questions
David Mundell Excerpts(12 years, 2 months ago)
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Miss Anne McIntosh (Thirsk and Malton) (Con)
14. When he last met the Scottish Government’s Agriculture Minister to discuss the common agricultural policy; and if he will make a statement.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
My right hon. Friend the Secretary of State and I have frequent discussions with ministerial colleagues on common agricultural policy reform. I last met UK and Scottish agriculture Ministers during the royal highland show.
Neil Carmichael
With the difficulties in the harvest this year, rising commodity prices and an interest in increasing productivity and production in the world of agriculture, will those talks focus on the need to recalibrate the common agricultural policy towards our production and food costs and prices?
David Mundell
We are in agreement with the Scottish Government that the common agricultural policy and, indeed, policies pursued by both Governments, should seek to maximise food production in Scotland.
Miss McIntosh
Will the Minister assure us that he will be heavily involved in reforms to the common agricultural policy and that, once agreed, they will apply equally to Scotland, England and all parts of the UK, particularly with regard to cross-compliance measures?
David Mundell
The Government have shown by their actions that they are committed to involving not just the Scottish Government, but all the devolved Administrations in developing the UK position on the CAP reform negotiations, and that will continue to be our position.
Margaret Curran (Glasgow East) (Lab)
I am sure that everyone in the House will agree that the current negotiations in Europe may have a significant impact on food prices, especially at a time when Scottish families are under such pressure from rising food prices. Precisely what correspondence or meetings have the Minister and Secretary of State had with other ministerial colleagues to discuss this issue facing Scottish families?
David Mundell
The Secretary of State and I have had a range of meetings with colleagues across Government and in the Scottish Government to address not just the CAP reforms, but issues such as the cost of living and the economic policies being pursued in Scotland. As the hon. Lady well knows, our view is that the Scottish and UK Governments should be working together on economic matters in Scotland. We would much rather that that was also the view of the Scottish Government, rather than their incessant focus on constitutional matters.
Margaret Curran
I thank the Minister for that interesting answer. Yesterday, in response to a question of mine, the Secretary of State seemed to have no grasp of the impact of rising food prices in Scotland. Last week, Save the Children launched its first appeal to fund its work in Scotland, revealing that a quarter of parents have less than £30 a week to spend on food, and Citizens Advice Scotland tells us that applications for support for food and other basics has doubled. We all know, just as the Minister has indicated, that that is a result of the choices that he and his Cabinet colleagues have made. Are he and the Secretary of State proud that food banks are fast becoming the hallmark of his Government in Scotland?
David Mundell
The hon. Lady was not present at this week’s reception at Dover house, where many of the leading stakeholders on child poverty, including Save the Children, were in attendance and there was a significant discussion about the issue. She can be assured that both the Secretary of State and I take these issues very seriously.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
The so-called greening measures proposed for the new CAP have caused consternation throughout the farming community. In a recent National Farmers Union survey, almost three quarters of those surveyed thought that they would have an adverse environmental impact; half thought that they would harm biodiversity; and all of them thought that it would cause financial problems for their business. What is the Minister doing to make sure that those measures do not form part of the new CAP?
David Mundell
The Government are aware of those concerns, not just in Scotland, but throughout the rest of the United Kingdom, and the Environment, Food and Rural Affairs Committee, chaired by my hon. Friend the Member for Thirsk and Malton (Miss McIntosh), has reported to that effect. The Government will seek to do all they can to minimise the impact of such greening measures, if they are adopted.
Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)
4. What assessment he has made of the effect on the Scottish economy of the London 2012 Olympic and Paralympic games.
John Stevenson (Carlisle) (Con)
7. What assessment his Department has made of the introduction of a 50p per unit fixed minimum alcohol price in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
Alcohol abuse harms individuals, families and communities throughout the United Kingdom. Clearly, a range of responses is required to address the problem, and the Government continue to engage with the Scottish Government on the issue of minimum unit pricing.
John Stevenson
Given that this policy has the potential to affect my constituency of Carlisle, what measures are the Government taking to introduce proposals for minimum alcohol pricing in England and Wales?
David Mundell
The Government continue to consider the position in the rest of the United Kingdom, and before any proposals are introduced in England and Wales, there will be an extensive consultation.
Gemma Doyle (West Dunbartonshire) (Lab/Co-op)
12. Sadly, one of the problems that can arise from alcohol misuse concerns people getting into trouble in Scotland’s coastal waters. Is the Minister aware that there will be a delay of 15 months between the closure of the Clyde coastguard and the maritime operations centre being up and running? Is he as concerned as I am about the safety implications of that?
David Mundell
As the hon. Lady will know, although there are changes to the management arrangements of coastguard operation centres, the same local volunteers, lifeboats and helicopters will remain in the coastal waters of Scotland. There will be no change, and it is wrong to suggest otherwise.
Jim Sheridan (Paisley and Renfrewshire North) (Lab)
8. How many publicly funded projects in Scotland have been undertaken by firms which engage in blacklisting against trade union members.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
Information on this is not held centrally. Regulations were introduced in 2010 to outlaw trade union blacklisting in the UK. We welcome the Scottish Affairs Committee’s inquiry into blacklisting in employment, and encourage all hon. Members and interested parties to feed their views into the inquiry.
Jim Sheridan
I thank the Minister for his response. I, too, commend the Scottish Affairs Committee’s inquiry. If there is tangible evidence that Government contracts are being awarded to companies that are engaging in blacklisting trade unionists, will those contracts be reviewed?
David Mundell
The hon. Gentleman is a strong campaigner on this issue. As I said in my original answer, I suggest he put that view to the Scottish Affairs Committee so it can form part of its report. We will certainly take its report very seriously.
John Robertson (Glasgow North West) (Lab)
Talk is cheap, but what would the Minister actually do? He must know that blacklistings are happening today. What will his Government do if we identify people who are doing it? What will he do?
David Mundell
In the first instance, the 2010 regulations provide a route for individuals who believe they have been blacklisted. As I said in my previous answer, the evidence sessions being held by the Scottish Affairs Committee are a good way of reviewing how those regulations and other laws are working in that regard. We will take its report very seriously.
Mr Peter Bone (Wellingborough) (Con)
9. What recent estimate he has made of public expenditure per head of population in Scotland.
Mark Menzies (Fylde) (Con)
11. What involvement his Department had with the London 2012 Olympic and Paralympic games; and if he will make a statement.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
I refer my hon. Friend to the answer the Secretary of State gave to a previous question.
Mark Menzies
Does my right hon. Friend not agree that after a summer of sporting success, the last thing that the people of this country want is to see Team GB torn apart?
David Mundell
I could not agree more. The success of Team GB at both the Olympics and the Paralympics has been celebrated as much in Scotland as in any other part of the United Kingdom.
Mr Ian Davidson (Glasgow South West) (Lab/Co-op)
Does the Minister agree that one of the great successes of the Olympic games was the role played by London’s Mayor? I wonder what will happen to him in the future. Does the Minister also agree that when we come to the games in Glasgow, it is essential that they are run by the city of Glasgow and that we do not have nationalist politicians trying to muscle in?
David Mundell
The hon. Gentleman will know that the Mayor of London is a great supporter of Scotland and the Commonwealth games, and of ensuring that the legacy from the Olympics is carried into the Commonwealth games in Glasgow.
Scottish Separation
David Mundell Excerpts(12 years, 4 months ago)
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Graeme Morrice
I note the hon. Gentleman’s intervention. I am surprised that, although for its entire existence the raison d’être of the Scottish National party has been independence, it wants to get sidelined on the issue of devo-max or devo-plus, without the questions being defined.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
Does the hon. Gentleman agree that, if the SNP truly wanted to get to the meat of the debate on separation, it would press ahead, agree the process—the referendum, the single question—and get on with it? Alex Salmond and the SNP are prevaricating over process.
Graeme Morrice
I could not agree more. I will certainly develop that theme as I progress in my contribution.
Sadly, the other predictable aspect of the campaign so far is the level of vitriol already displayed by the so-called cyber-nats—small-minded people who seem to glory in spewing forth hatred about their opponents on every available website and online forum. The contributions of these people, who often hide behind online anonymity, only serves to harm the debate on Scotland’s future, not to mention our nation’s reputation as a welcoming and tolerant place. Although I am willing to accept that some of these extreme nationalists have nothing officially to do with the SNP or the yes campaign, it would be refreshing if more senior SNP figures condemned and disowned their extremist bile. Any interventions?
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
I am happy to have the opportunity to speak in today’s debate, and I congratulate the hon. Member for Livingston (Graeme Morrice) on bringing such an important issue before the House of Commons.
Before we embark on what the future of Scotland might look like, it is important to reflect on the past. If we do not understand our history, including economic history, we are in danger of becoming victims of it, and there is no way round the fact that over the past 30 years, successive Westminster Governments have let the Scottish economy languish. Our economic growth has lagged well behind that of our neighbours and competitors in the UK, Europe and further afield.
In the three decades before the current financial crisis, growth in Scotland averaged only 2.1%, against 2.7% in other comparable small EU countries, and across the G7 countries. That chronic underperformance has had adverse consequences for generations of people in Scotland, and we must ask ourselves why it has happened. Unless we think that there is something inherently inferior about Scotland or Scottish people, or some inherent weakness in the Scottish economy, we must conclude that such underperformance is a direct consequence of poor political and economic policy decision making, and a systematic failure to address the weaknesses and maximise the strengths of the Scottish economy.
David Mundell
I am interested to hear what the hon. Lady has to say about policy making and political judgments. Does she still support the Scottish Government’s previous position of joining the arc of prosperity with Iceland and Ireland?
Dr Whiteford
The Minister makes an interesting point, and it is important to look at the performance of small nations in the vicinity of Scotland. My constituency in the north-east of Scotland is close to Norway, which I think has outperformed every country in Europe over the past three decades. We should also look at the impact of the recession and at how smaller countries such as Austria, Denmark and Sweden have been more resilient and managed to experience a less deep economic crisis. Even countries such as Iceland that went so far down during the economic crisis have bounced back with much greater dexterity than the UK economy—[Interruption.] The Minister is smiling, but he should be hanging his head in shame at the economic recession that this country is slowly trying to scramble out of. That is a shameful record for a country that has the potential to be prosperous.
Dr Whiteford
The geographical reality with which we are dealing is that much of our renewable energy potential is located on and off the coast of Scotland. We have 10% of wave energy potential, 25% of tidal energy potential and 25% of offshore wind resources. That is a huge legacy across Europe, and we have to make the most of it. At a time when climate change puts pressures on all our energy supplies and when we absolutely have to reduce carbon emissions, that kind of investment has to happen. We must not discriminate against people in the more outlying parts of these islands because that is where such energy can and must be produced.
We absolutely need to capitalise on that opportunity to create jobs and build on our existing research strengths in our world-class universities, which are consistently being assessed as among the top in the world. In the area of science, engineering and technology, relative to our GDP, Scotland is currently No. 1 in the world for research. We also have a worldwide reputation for excellence in medicine and life sciences. We are doing very well at attracting multinational businesses to Scotland, as well as in relation to a growing number of indigenous companies.
Dr Whiteford
I would like to give way to the Minister, but I am not going to because I am conscious that other people want to contribute.
We also have real international competitive advantages and excellence in key sectors such as food and drink—another area that is very important to my constituency—and, despite difficult times for the banking sector, we have a strong and broadly-based financial services industry, where there has recently been some welcome diversification and investment. I see that as a solid foundation for Scotland economically and there is no reason why, with those opportunities, we cannot succeed. Scotland has the assets and the fiscal balances and, with the ability to make independent policy decisions, we would have the tools to grow our economy.
Another myth that has been touched on today is that we would want to abandon sterling. I want to make it absolutely clear that no one is proposing dispensing with sterling. Retaining the pound is in the interests of Scotland, the rest of the UK and the currency itself. A free flow of goods, services, labour and capital is in everyone’s interest, and a sterling zone will provide businesses both in Scotland and in the rest of the UK with the certainty and stability for trade, investment and growth.
There is no doubt that monetary policy underpins price and macro-economic stability, but it is a blunt tool for tackling Scotland’s other economic challenges. It will not address youth unemployment; it will not directly lead to investment in infrastructure or promote innovation; it will not boost skills, target overseas investment or promote investment in key sectors; and, to come back to the point I made at the start, it will not integrate our tax, health, education and benefit systems to maximise economic opportunity and tackle inequality. That is why I believe we need to be independent and to have real policy-making powers in Scotland.
Dr Whiteford
I will not, thank you.
Frankly, the Scottish Parliament would do a better job of welfare reform than the UK Government, who seem intent on vilifying people who do not have a lot of money. Instead, we could develop a more workable system. The Scottish Parliament is already doing a better job on health, and we are not going down the road towards privatisation. In addition, we are doing a better job on education, and we are not charging students £9,000 a year to complete their studies in higher education. The current levers open to the Scottish Parliament do not go nearly far enough to realise our economic potential.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
As always, it is a pleasure to serve under your chairmanship, Mr Robertson. I congratulate the hon. Member for Livingston (Graeme Morrice) on securing this debate on the economic consequences of Scottish separation, and on his detailed and positive case for why Scotland would be better off remaining part of the United Kingdom. I also want to thank all hon. Members who took part in the debate, including the hon. Member for Strangford (Jim Shannon) who set out the positive Unionist case and talked about the support for Scotland staying within the United Kingdom that comes from other parts of the United Kingdom.
The hon. Member for Edinburgh North and Leith (Mark Lazarowicz) identified the increasingly perplexing issue of the separatists arguing on the one hand that everything would be different in a new Scotland, and, on the other, that everything would be the same—if we are in any way worried about any particular aspect of separation.
The hon. Member for Glasgow Central (Anas Sarwar) gave his usual erudite exposition of the issues, and was commendably brief. The nub of the matter is that we must get on with the debate about whether or not Scotland should remain a part of the United Kingdom, and about what would be better for Scotland.
The hon. Member for Glasgow North East (Mr Bain) made a persuasive case for Scotland remaining part of the United Kingdom. I will not repeat his points; suffice it to say that—other than his criticism of the Government—I agreed with everything he said.
The contribution of the hon. Member for Banff and Buchan (Dr Whiteford) was brave because she mentioned independence—something that, as I understand it, is not encouraged nowadays in the Scottish National party. Then both she and the hon. Member for Angus (Mr Weir) went on to say that they supported a single-question referendum. I am glad that they said that here in this debate.
David Mundell
The hon. Gentleman must convey that message to Mr Salmond. If Mr Salmond is in agreement with members of the Scottish National party, he has the opportunity to proceed now with a single-question referendum. It is he who is prevaricating on the issue of the referendum, and not this Government, who have offered to facilitate the SNP manifesto commitment to a single-question independence referendum.
Mr Weir
The Minister is missing the point completely. The referendum is for the Scottish people. There has been a consultation, of which we are awaiting the results, as to whether or not there is demand for a second question. It is about not the First Minister driving that demand but whether there is demand from the Scottish people.
David Mundell
I tend to agree with the editorial of the Daily Record, which often, in my experience, reflects the views of the Scottish people. It has described Mr Salmond’s current tactics as a
“desperate-looking ploy that has left Salmond isolated and open to public ridicule.”
That is the case. Although separation is the Scottish Government’s policy and not ours, we have made it clear that, as a Government, we are prepared to facilitate a legal, fair and decisive referendum to settle this issue.
Michael Connarty
Is not Mr Salmond feart of having a single-question referendum?
David Mundell
I am sure that many people will make that analysis. The UK Government referendum consultation showed a strong majority in favour of a single question and robust reasons why that should be the case. Seventy-five per cent of respondents agreed with the UK Government that a single question would ensure a decisive outcome. The support for a single question is clear and growing, and today’s Scottish papers—if the SNP takes any notice of them—confirm that.
All three pro-UK parties have made it clear that they support a single-question referendum. Even the SNP officially support a single question. Both campaigns in Scotland are in favour of a single question. Margo MacDonald and the Greens have now joined the call for a single question on independence. The coalition Government are offering the Scottish Government the opportunity to deliver a legal referendum by giving them the legal power that they do not currently hold. We are offering to deliver the SNP’s manifesto commitment.
The SNP won a majority at the 2011 Scottish Parliament election on the basis of a manifesto commitment to an independence referendum, not to further devolution, and it is on that single question that it can claim to have a mandate. Independence is of course the founding principle of the SNP; this is its big chance to hold the referendum that it has pledged to hold in successive manifestos. If the SNP now does a U-turn and demands a second question on the ballot paper, it will be an up-front admission of defeat and an acknowledgement that the First Minister believes that he cannot win a single-question referendum on separation.
Tom Greatrex
The hon. Member for Angus probably let the cat out of the bag when he talked about the Scottish Government’s and SNP’s consultation. When the results of that are analysed, does the Minister think it would be interesting and useful to see how many contributions asking for a second question came after the May local government elections, and how many came from SNP councillors and SNP members on a standard format?
David Mundell
That will indeed be an interesting analysis. It is quite clear that the SNP and the First Minister are prevaricating on the question of the referendum. We have been calling for talks with the First Minister to be resumed so that Scotland’s two Governments can work together to deliver a legal, fair and decisive referendum. We need to get the referendum process agreed as soon as possible, so that we can get on to the real debate about Scotland’s future and whether Scotland should remain part of the UK.
Anas Sarwar
Did any SNP parliamentarians, or the SNP itself, put in a submission to the UK Government’s consultation, and if so, did they ask for one question or two?
David Mundell
The SNP did make a submission to the UK Government consultation and we welcomed it. As SNP members have stated, the SNP’s position is to have a single-question referendum. The Daily Record editorial today said:
“Salmond should stop playing games and start campaigning on the issues if he still believes he has a chance of realising his lifelong dream of independence. We need a proper decision as soon as possible. Then Scotland’s leaders can get back to more pressing matters”,
such as the economy, employment and education. That is the UK Government’s position.
In stark contrast with the Scottish Government, we are committed to getting the referendum process agreed and to getting on with the real debate. We have announced a programme of work that will set out in the period leading up to the referendum the benefits of remaining part of the United Kingdom. I am convinced, as are many Members here, that we will convince the people of Scotland that we are better together as part of the United Kingdom.
Oral Answers to Questions
David Mundell Excerpts(12 years, 5 months ago)
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Sheila Gilmore (Edinburgh East) (Lab)
2. What discussions he has had on the effect of the Scottish Government’s modern apprenticeship scheme on employment in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
I am in regular contact with the Scottish Government on a range of issues. Later this week, the British-Irish Council is due to discuss the effectiveness of programmes and policies to support youth employment in Members’ respective Administrations.
Sheila Gilmore (Edinburgh East) (Lab)
In the Scottish Parliament last week, the Labour spokesperson on youth unemployment, Kezia Dugdale MSP, uncovered figures showing that of the 25,000 modern apprenticeships that the Scottish Government claim to have set up, more than 10,000 involved people who were already in work. Does the Minister agree that the Scottish Government should spend public money on creating additional jobs, and not just on rebadging jobs?
David Mundell
I share the hon. Lady’s concerns about how the Scottish Government seek to present facts. The facts of their responsibilities on employment matters are clear, and they have had £22 million of additional money in relation to youth contract consequentials. I should like them to focus on how they spend that money rather than on their obsession with the constitution.
Mrs Eleanor Laing (Epping Forest) (Con)
Is the Minister aware that almost every economic analysis shows beyond doubt that employment prospects in Scotland would be significantly reduced if Scotland were separate from the UK?
David Mundell
I absolutely agree with my hon. Friend, who I am sure will welcome with me the fact that employment in Scotland increased by 18,000 in the last period.
Pete Wishart (Perth and North Perthshire) (SNP)
I am sure that, like me, the Minister has witnessed the Labour party’s ridiculous and scurrilous campaign against what is undoubtedly one of the most successful modern apprenticeship schemes in Scotland. Seemingly, Labour Members’ complaint is against rules that they introduced themselves. Should the Minister not instead congratulate the Scottish Government on almost doubling the number of modern apprenticeships in the past year and on the extra £72 million of investment?
David Mundell
I noticed that the hon. Gentleman did not mention the word “independence”, so he is obviously on message. On unemployment in Scotland, including youth unemployment, the UK and Scottish Governments should work together.
Mr Iain McKenzie (Inverclyde) (Lab)
3. What steps he is taking to expand employment opportunities in Scotland.
Amber Rudd (Hastings and Rye) (Con)
4. What recent discussions representatives of his Department have had with representatives of the Scottish agricultural industry.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
I meet regularly with representatives of the Scottish agricultural industry, including the National Farmers Union of Scotland and individual producers. I look forward to further direct engagement tomorrow, when I attend the royal highland show.
Amber Rudd
Does the Minister agree that those in the Scottish agricultural sector are better off with Scotland remaining part of the UK?
David Mundell
I absolutely agree with my hon. Friend. An independent Scotland would shrink our home market of 60 million consumers to a mere 5 million overnight. Farmers would be reliant on exporting their produce. Some 64% of Scottish beef was sold to the rest of the UK, as the first point of delivery, in 2011.
Mr Mike Weir (Angus) (SNP)
Perhaps the Minister could try answering a question about something that is actually the responsibility of the UK Government. Is he aware of the huge concern in the Scottish agricultural and horticultural sectors about the future of the seasonal agricultural workers scheme, which is due to expire next year? Has he made representations to the Home Office for the continuation of the scheme?
David Mundell
I note the hon. Gentleman’s concerns and I would be happy to meet him to discuss them further.
Michael Connarty (Linlithgow and East Falkirk) (Lab)
6. What recent discussions he has had with the Scottish Government on youth unemployment.
Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)
7. What steps he is taking to reduce energy prices in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The Government are committed to ensuring that consumers get the best deal for their energy usage, and have put in place measures to help to reduce household energy bills. In May, I held a summit in Rutherglen, bringing together the big six energy suppliers, Scottish consumer groups and the regulator, Ofgem, to examine ways of addressing this issue.
Mr Clarke
Over the past eight years, average energy prices have increased by 140% per household, while the increase in average income for households has been a mere 20%. What are the Government doing to respond to people’s worries—especially those of low-income families, elderly people and people with disabilities—and to deal with this onslaught on vulnerable people?
David Mundell
The Government are continuing the cold weather and winter fuel payments, and bringing forward the green deal. We are also working with voluntary organisations across Scotland to help them to support the most vulnerable people, so that they can access all the fuel-related benefits that are available to them.
Mr Alan Reid (Argyll and Bute) (LD)
Many islanders are telling me that the 5p fuel duty discount is not being passed on to the motorist. Will the Minister ask Her Majesty’s Revenue and Customs and the Office of Fair Trading to investigate this matter? They must ensure that this discount is passed on to the motorist in its entirety.
David Mundell
I am concerned to hear what the hon. Gentleman is saying, and I would be happy to meet him and other concerned island MPs to discuss the matter.
Mr Edward Leigh (Gainsborough) (Con)
8. What steps he is taking to reform central Government funding for the devolved Government in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The UK Government have worked hard to influence the content of the “General Approach” at the Fisheries Council. It would deliver positive benefits for Scotland’s fisheries and those who depend on them, and I welcome its commitment to manage fish stocks sustainably, to move towards more regionalised fisheries management and to ensure that discards are eliminated.
Dr Whiteford
I also welcome the progress that was made in Luxembourg last week, but does the Minister think that this would be an appropriate juncture in the process at which to introduce more transparency into fisheries management in the form of the UK Government making public the individuals and companies that hold fish quota here?
David Mundell
I agree with the hon. Lady that it is important for the UK Government and the Scottish Government to work well together, and the recent Fisheries Council is a good example of them doing that for the benefit of Scotland’s fishermen.
Miss Anne McIntosh (Thirsk and Malton) (Con)
The hon. Member for Banff and Buchan (Dr Whiteford) is absolutely right: we need a register of active fishermen—[Interruption.]
Miss McIntosh
—and fisheries. [Laughter.] The hon. Lady is absolutely right that, without a register, we do not know who are active fishermen in Scotland and who are slipper skippers.
David Mundell
Ministers both here in the UK Government and in the Scottish Government will have heard the comments of my hon. Friend, who is a respected contributor on such matters.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
11. What plans he has to mark the bicentenary of Dr David Livingstone’s birth in March 2013.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
I have met representatives of the Scotland-Malawi partnership to discuss the best way for the UK Government to mark this bicentenary. The Scotland Office will hold a commemorative event at Dover house. My officials will work with other interested parties to ensure that this anniversary is celebrated across the UK.
Tom Greatrex
I thank the Minister for his reply. Will he join me in supporting my invitation to the President of Malawi, Joyce Banda, to visit the UK during the bicentenary and as part of that visit to come to Blantyre, Lanarkshire, in my constituency?
David Mundell
I commend the hon. Gentleman for the role he has played in promoting the David Livingstone bicentenary, which has great resonance in his constituency. Yes, the Scotland Office will work with him and others to encourage the President of Malawi to come to Scotland.
Scotland Bill
David Mundell Excerpts(12 years, 7 months ago)
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The Parliamentary Under-Secretary of State for Scotland (David Mundell)
I beg to move, That this House agrees with Lords amendment 1.
Mr Deputy Speaker (Mr Lindsay Hoyle)
With this we may take Lords amendments 7, 8, 10 and 11.
David Mundell
Along with the redoubtable Wendy Alexander, Annabel Goldie, Lord Browne of Ladyton, Lord Stephen and my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael), I took part in the very first meeting that led to the establishment of the Calman commission. I am pleased and proud today to be part of what I hope will be the successful conclusion of the commission’s work. The return of the Scotland Bill to this House comes after the other place has given the Bill a great deal of detailed scrutiny and consideration for many months. Indeed, in handling the Bill in the Lords, Lord Wallace of Tankerness was compared to Kate Adie. That comparison is not correct: he was more like General Montgomery, because he was at the forefront of the action rather than a mere commentator.
Since the Bill was last in this House, there have been two very significant developments. The Scottish Government have changed their position from one of opposition to one of support for the Bill, including many of the amendments we will consider today. On 21 March, the Secretary of State confirmed in a written ministerial statement the terms on which agreement had been reached with the Scottish Government on the Bill, and on 18 April the Scottish Parliament passed the legislative consent motion for the Bill unanimously.
When the Bill was last in this House, it appeared that the Scottish National party would never join the consensus that has been shared throughout both the Calman commission process and the parliamentary process on the Bill.
Stewart Hosie (Dundee East) (SNP)
I know that the Minister wants to pretend that this Bill is incredibly important, but in fact it is a rather modest Bill. If I may correct him—I know that he sometimes struggles with detail—he will remember that on Second Reading, I made it clear that we would not stand in the way of the Bill. I welcome the changes that the UK Government have made, in particular to remove some of the re-reservations, and I hope that we can now get on and pass this modest little measure.
David Mundell
I also remember the occasion on which the Scottish National party voted against the Bill, as we will detail in respect of the specific amendments that come forward. Several changes have been made to the Bill, but all of them have been on the basis of assurances provided by the Scottish Government as to how the matters will be conducted.
Mrs Anne McGuire (Stirling) (Lab)
Except sometimes the right hand of the Scottish National party does not know what the left hand is doing. While down here it was being conciliatory, it was initially prepared to stand in the way of this extensive devolution of powers.
David Mundell
The right hon. Lady may recall that during previous consideration of the Bill, I identified London SNP as a quite different body from the Scotland-based SNP. At the same time as the SNP in London opposed the Bill, more sensible forces in the Scottish Parliament were looking to bring forward what will be a significant package of measures that will strengthen devolution by increasing the financial accountability and responsibility of the Scottish Parliament.
Stewart Hosie
Instead of misrepresenting me, why does not the junior Minister understand that the only reason the Scottish Parliament was able to agree the legislative consent motion was because the UK Government agreed to remove the idiotic re-reservations that they had planned; agreed to take out some of the significant and damaging things that they had intended with the Supreme Court; and, fundamentally and very sensibly, agreed proper commencement procedures, about which I will say more later?
David Mundell
I am sure that the SNP at Westminster group leader’s substitute will recognise that when this Bill was previously debated in this Parliament, the Scottish National party indicated that it had six demands that it required to be reflected on the face of the Bill before it would support it. None of those six demands is in the Bill as we debate it today or as it was debated in the Scottish Parliament, where it received unanimous support—including that of all members of the Scottish National party present.
Bob Stewart (Beckenham) (Con)
I do not really like the Bill being called modest by the Scottish National party when the Office for Budget Responsibility says that the Scottish Parliament will be able to have over £500 million of income tax in 2015-16. That is hardly modest.
David Mundell
I could not agree more with my hon. Friend. This is a significant measure which will lead to the largest transfer of fiscal powers between Westminster and Scotland in 300 years, and it should be welcomed by all parties. My hon. Friend may be aware that yesterday that the First Minister apparently told the Institute of Directors that he planned to align taxes in Scotland with the rest of the UK, so the Scottish National party may now regard the actual requirement for tax-varying powers as insignificant.
Lords amendment 1 seeks to improve the drafting of clause 3. Section 113 of the Scotland Act 1998 makes provision about the scope of subordinate legislation powers in that Act. Clause 3(1) amends section 113 of the Scotland Act so that the supplementary powers contained in section 113 also apply to Scottish Ministers’ new power to make subordinate legislation about the administration of Scottish Parliament elections under section 12 of the 1998 Act.
Lords amendment 1 would replace clause 3(1) with new provision having the same effect. The amendment would have the effect of restructuring section 113 and this would make it easier for provisions in this Bill or future legislation to provide that the supplementary powers contained in section 113 apply in relation to other powers that may be conferred on the Scottish Ministers.
Clause 15 changes the name of the Scottish Executive to the Scottish Government. Lords amendments 7 and 8 are minor technical amendments that would ensure that all the references to “Scottish Executive” in section 44 of the Scotland Act are amended to “Scottish Government”.
Clause 22 makes provision for there to be a Crown Estate Commissioner who knows about conditions in Scotland. Lords amendments 10 and 11 would change the name of this Commissioner from the “Scottish Crown Estate Commissioner”, to the “Crown Estate Commissioner with special responsibility for Scotland”. I can confirm that the original title for the commissioner included in the Bill was taken from the Calman commission’s own proposals and discussed with the Crown Estate. However, it is accepted that the amendments to the commissioner’s title will properly reflect the role that the commissioner will play.
Stewart Hosie
The Minister will concede, I hope, that notwithstanding this change there is no material difference between the Bill as it was and the amendment to the title of the Crown Estate Commissioner?
David Mundell
The amendment changes the title. If the hon. Gentleman is alluding to whether the Scottish Government, in their discussions on the Bill, put forward a requirement for further devolution of the Crown Estate, I can tell him that they did not. It was not a red line for the Scottish Government.
Mr Frank Roy (Motherwell and Wishaw) (Lab)
Are any costs associated with the name change?
David Mundell
As far as I am aware, no costs are associated with changing the name from that proposed in the original Bill to the revised one.
Anas Sarwar (Glasgow Central) (Lab)
Will the title of First Minister be changed to “Secretary of State for Rupert Murdoch”?
David Mundell
I am sure that that is a matter on which the hon. Gentleman and many others hold a view but on which the Government do not.
The Select Committee on Scottish Affairs has produced an interesting report on the future of the Crown Estate in Scotland. Obviously, the Government welcome the assiduous work carried out in preparing the report. I am surprised that its Chairman, the hon. Member for Glasgow South West (Mr Davidson), who usually plays a robust part in these deliberations, is not present. I had anticipated his having something to say about his report. However, the Government will consider it in due course. I understand that it has been debated in the Scottish Parliament, where the devolution of Crown Estate activities directly to local communities found support, at least among opposition parties there.
On that basis, I hope that the House will agree with the Lords amendments.
Mr William Bain (Glasgow North East) (Lab)
As we begin debating the Lords amendments, I hope the House will consider it appropriate for the Opposition to mark the significance of what is likely to be our final consideration of the Scotland Bill. If it receives Royal Assent in the coming days, the Bill will represent the largest devolution of financial powers to Scotland in 300 years; will make decisions on spending and taxation more transparently accountable to the Scottish Parliament than at any time since 1999; and create new borrowing powers with the potential to boost economic growth significantly.
This enhancement of devolution is the culmination of a four-year process of cross-party and cross-societal constitutional reform through the Calman commission, which was established by Wendy Alexander and other pro-devolution party leaders in Scotland. Its outcome was accepted in a White Paper by my right hon. Friend the Member for East Renfrewshire (Mr Murphy); was assisted by my hon. Friends the Members for Glasgow North (Ann McKechin) and for Rutherglen and Hamilton West (Tom Greatrex) in various capacities; and has been implemented with cross-party support by the coalition Government.
It is also welcome that the Scottish Government have finally indicated their assent, if not warm-hearted approval, for the Bill, after a significantly longer and more circuitous journey to reach that position than that undergone by Scotland’s other political parties.
Pete Wishart
I have a choice between the two Front Benches. I will give way to the Minister first.
David Mundell
We would not want the hon. Gentleman to mislead the House. The UK Government have not agreed with the Scottish Government on dual commencement. What we have said is that it is desirable and that we will work with the Scottish Government to achieve it, but it has not been agreed on at this stage. I say this just so that right hon. and hon. Members are not misled.
Pete Wishart
I am grateful to the Minister for clarifying that. It is good that he agrees with the Scottish Government that joint commencement is a good idea and I welcome the fact that there will be a veto for the Scottish Parliament in regard to the commencement of potentially damaging tax powers.
The Bill does not meet the aspirations of the Scottish people. It does not meet the aspirations of the anti-independence parties either. They have all moved on as well, and decided that these provisions are not enough. The Conservative-led Unionist alliance and what accounts for their think-tanks are all now considering the next stages of devolution as they move forward. They, as well as the Scottish Parliament and the Scottish people, have passed the Bill by. The Bill is finished, it is dead, it is something that belongs to another day and another era.
David Mundell
I shall make a few points on the issues pertaining to this group of amendments. I can assure the right hon. Member for Stirling (Mrs McGuire) that we on the Government Benches always listen to her wise counsel. I will deal with the specific points she raised, which are important—regardless of when or where they are raised.
As the matter was raised by the hon. Member for Perth and North Perthshire (Pete Wishart), let me be clear about the position on joint commencement. The Scottish Government sought a specific provision for joint commencement in this Bill. The request was refused, as it was unworkable—like so many proposals advanced either by the SNP in London or the Scottish Government. Instead, we focused on delivering this Bill. At last, that objective is shared by the Scottish Government.
Of course we want to achieve circumstances in which joint commencement can take place. I shall quote from a letter sent by the Secretary of State on 20 March to Bruce Crawford and John Swinney:
“Consistent with the principle of consent, our two governments should reach agreement on implementation issues, including adjustments to the block grant, to take account of the Scottish Parliament’s new fiscal powers.”
That is the Government’s position.
Let me respond to a point made by hon. Member for Dundee East (Stewart Hosie). He seemed to suggest that evidence had been produced to support the Scottish Government’s and indeed the Scottish National party’s suggestion that corporation tax should be devolved. Again, I am sure that he would not wish to mislead the House into thinking that actual evidence had been produced to support that proposition. Indeed, it was not.
Stewart Hosie
The Minister’s memory is appalling. I intervened on the Labour Front-Bench spokesman to ask the Labour party’s position on corporation tax. I said no such thing about evidence being provided to the UK Government. I am sure Hansard will bear that out. If, however, the Minister wants to carry on and embarrass himself further, I will be delighted to listen.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I would obviously not allow the Opposition Front-Bench team to respond. I am sure that, as we go through the further provisions, everyone will be able to discuss the issues about taxation that they wish to raise.
David Mundell
Thank you, Mr Deputy Speaker. I shall not use the same tone as the hon. Gentleman, although I think his remarks confirmed that no evidence had been produced at all or in any form to support the proposition of devolving corporation tax. That is why it is not being devolved in this Bill and is not the subject of these or any other amendments brought forward in the House of Lords. I support the amendment on that basis.
Lords amendment 1 agreed to.
Clause 7
Partial suspension of Acts subject to scrutiny by Supreme Court
Mr Deputy Speaker (Mr Lindsay Hoyle)
With this we may take Lords amendments 5, 6, 17, 18 and 26.
David Mundell
As I have already explained, on 21 March the Government announced a package of measures in the Bill, and supporting non-legislative arrangements, to ensure that the Bill would operate in a fair and sustainable way to benefit Scotland and the rest of the United Kingdom. That announcement followed productive discussions with the Scottish Government.
I hope that it does not prove career-limiting for him if I pay tribute to Bruce Crawford MSP, the Cabinet Secretary for Parliamentary Business and Government Strategy in the Scottish Government, who has worked closely with me and with the Secretary of State on the dialogue that has been taking place about the Bill. Mr Crawford and his officials have always engaged constructively in discussions on the Bill, and, even on occasions when we have not agreed, we have always conducted those discussions in an orderly and proper fashion. I am most grateful to Mr Crawford for the way in which he dealt with the legislative consent motion in the Scottish Parliament, securing a unanimous outcome. There was no dissent from any member of the Scottish National party.
Following the agreement announced on 21 March, changes were made to both the finance and non-finance provisions in the Bill. Since its introduction in November 2010, it has been subjected to detailed scrutiny in the United Kingdom and Scottish Parliaments. In Westminster, it has passed successfully through its Commons and Lords stages, and has returned to the Commons today for further consideration. In Holyrood, not one but two Scotland Bill Committees have taken evidence and reported to the Scottish Parliament. I pay tribute to my colleague David McLetchie MSP, who experienced the pleasure of serving on both those Committees. I think that his expertise could rightly be said to be beyond that of Members of this House and the other place, in that he has a true understanding of the Bill and all its ramifications. I also pay tribute to the other MSPs who served on both Committees for their work in dealing with the reports, and subsequently passing the legislative consent motion tabled by the Scottish Government in favour of the Bill.
We have gone further than ever before in working with parties in Scotland and across the United Kingdom to deliver a Bill built on cross-party consensus. We have carefully considered and, when appropriate—that is, when a case based on evidence has been properly made—taken on board the views of the Scottish Government and the Scottish Parliament. We are pleased that we have reached agreement and can make progress with the Bill.
The package of measures announced on 21 March meets the tests that the Government set for changes in the Bill package. They are based on evidence, maintain the cross-party consensus that supports the Bill, and will benefit Scotland without detriment to the rest of the United Kingdom. The amendments in this group are part of those changes. Lords amendments 2, 5, 6, 17 and 26 would remove clause 7, clause 12, schedule 2, clause 13 and clause 26.
Lords amendment 2 would remove clause 7. As it stands, section 33 of the Scotland Act 1998 allows for only a Bill, rather than a single provision of a Bill, in the Scottish Parliament to be referred to the Supreme Court in its entirety on questions of legislative competence. That means that implementation of the whole Bill would be delayed if the matter were referred to the Supreme Court pending a decision of that court. The Government’s intention in pursuing the limited reference procedure contained in clause 7 was to prevent unnecessary delays on Bills the majority of whose provisions were considered to be within the legislative competence of the Scottish Parliament.
The Scottish Government expressed the fear that the clause could have the potential to introduce unintended consequences and delay to the enactment of legislation in the Scottish Parliament. As a result of our discussions with the Scottish Government, we agreed that the clause could be removed. The Scottish Government accept that that will mean that in future, as at present, only a full Act of the Scottish Parliament can be referred to the Supreme Court, even if only a single provision raises competence issues. I should make clear that the provision in the original Bill was intended to be helpful to the Scottish Government. However, they decided that they did not want that helpful measure to be included, and as a result we agreed to remove it.
Lords amendments 5 and 26 would remove the clause on insolvency and the related provision in schedule 2. Clause 12 would return exclusive legislative competence to the UK Parliament in relation to all aspects of the winding up of business associations. It is intended to ensure that the rules on corporate insolvency are consistent on both sides of the border. The UK Government continue to believe that it is important to take into account the view of stakeholders that, when appropriate, Scottish insolvency procedures should be in step with those in the rest of the UK. Our discussions with the Scottish Government have provided us with assurances that we can address those concerns without amending the devolution settlement in this respect.
Let me make clear to Scottish National party Members that the UK Government have removed the clause on the understanding that the Scottish Government will consider the modernisation measures for the devolved areas of winding up in Scotland that were introduced into the reserved insolvency procedures in 2009 and 2010, and have provided assurances that future changes made by the UK Parliament or Ministers in that area will be considered in a timely fashion by the Scottish Government in their area of competence.
Lords amendment 6 seeks to remove clause 13. The clause deals with the regulation of health professionals, to which the right hon. Member for Stirling (Mrs McGuire) has already alluded. Since Royal Assent to the Scotland Act 1998, the regulation of any health professionals not regulated by the legislation listed in schedule 5 has fallen within the legislative competence of the Scottish Parliament, but although the Scottish Parliament has had the power to introduce separate legislation in respect of the regulation of health professionals, it has chosen not to do so.
During our discussions with the Scottish Government, they raised some concerns about the clause. They pointed out that the delivery of health care is, on the whole, devolved to Scotland. However, they gave us clear assurances that they would work closely with us to ensure that consistent regulatory regimes apply to all health professionals. I assure the right hon. Member for Stirling that it is on the basis of those assurances that the UK Government are content to continue to develop policy in relation to the regulation of health professionals with the Scottish Government.
Mr Frank Roy
Does this not prove that some things should be done on a UK-wide basis rather than on the basis of a separate Scotland?
David Mundell
During consideration of the Bill in the House of Commons and by the Committees of the Scottish Parliament, I was not aware of a single piece of evidence suggesting that the regulation of health professionals would benefit from not being carried out on a UK-wide basis. In fact, it has been pointed out that health professionals are a relatively mobile group who may want to move to and from jobs in Scotland and England, and who would therefore not benefit from separate regulation.
David Mundell
As I said earlier, the Scottish Government have given assurances that although there will not be a relevant clause in the Bill, they will work with the UK Government to ensure that there is a uniform approach to the regulation of health professionals. I think that those remarks are consistent with the First Minister’s statement yesterday that he intended to align taxes in Scotland with those in the rest of the United Kingdom if Scotland became independent. In fact, if Scotland became independent, there would be no difference on virtually any matter.
Lords amendment 17 would remove clause 27. The Government included that clause to provide UK Ministers, concurrently with Scottish Ministers, with a power to implement international obligations in devolved areas. That would have allowed UK Ministers to implement international obligations on a UK basis, where it would be more convenient to do so. Both Governments acknowledge the importance of ensuring that all of the UK’s international obligations are fully implemented across the UK in a timely fashion. The UK Government are willing to remove this clause on the understanding that Scottish Ministers will ensure that any international obligations that fall within their responsibility are implemented on time. We have made clear to Scottish Ministers that the Government would be prepared to use their existing powers of direction under section 58(2) of the Scotland Act 1998 if we were to have concerns about the implementation of international obligations within the remit of Scottish Ministers.
Let me make it absolutely clear that the Government have not conceded on the principle of re-reservation, as the Scottish National party suggested during our earlier debates on this Bill. The Bill does not make devolution a one-way street. Clause 14 re-reserves the regulation of activities in Antarctica.
Pete Wishart
If it is not a one-way street, which powers are now coming back to this House apart from those on Antarctica?
David Mundell
The hon. Gentleman forgets that he and his colleagues moved an amendment to remove the clause re-reserving activities in Antarctica. They were defeated in this House, and the Scottish Government have accepted that the regulation of activities in Antarctica should be re-reserved. I fail to understand the SNP negotiating position, because it appears that the regulation of dental hygienists—important though that is, as the right hon. Member for Stirling said—cannot be re-reserved, yet matters such as the administration of the Crown Estate, corporation tax, excise duties and further broadcasting powers were not red lines for the SNP in its discussions on this Bill.
Pete Wishart
To ensure that the Minister does not mischaracterise the approach of the Scottish Government, let me state that we are not for any re-reservations of powers now. That is why the Bill is now more acceptable to the SNP and the Scottish Government.
David Mundell
Again, I would not want the hon. Gentleman to mislead the House. The regulation of activities in Antarctica are re-reserved to this House.
Mr Deputy Speaker (Mr Lindsay Hoyle)
And I know that no Member would mislead this House.
David Mundell
This re-reservation—which some Members on the Opposition Benches sought to remove at an earlier stage—is a sensible measure.
We have removed provisions from the Bill where we have been given necessary assurances that their effect will be achieved by other means, or where we now take the view that we can sufficiently rely on existing powers.
Finally, let me turn to the proposed new clause under Lords amendment 18. Its purpose is to provide information to both Houses in the UK Parliament on the implementation and operation of the financial powers in this Bill. It requires the Secretary of State for Scotland to publish an annual report to both Houses of Parliament within one year of the Scotland Bill becoming an Act and until a year after the tax and borrowing powers are fully transferred to the Scottish Parliament. The last report is therefore expected to be published in 2020. The Secretary of State will send a copy of his report to Scottish Ministers, who will lay a copy of it before the Scottish Parliament. The proposed new clause also requires Scottish Ministers to lay a report of the same title to the Scottish Parliament on an annual basis and to provide a copy to lay before both Houses of the UK Parliament.
This amendment was proposed by the Government during discussions with the Scottish Government. The new provision will ensure that there is a transparent mechanism of reporting to both Parliaments on implementation. Passing the Bill is just one part of the process to ensure that these new powers are delivered and the accountability and responsibility of the Scottish Parliament are increased. The important implementation work that both Governments need to undertake to ensure that the financial measures operate successfully will now begin in earnest. This amendment will ensure that both Parliaments are kept properly informed of progress on implementation by both the Secretary of State for Scotland and the Scottish Government.
Stewart Hosie
I want to say only a few words about this group of amendments. They are very welcome, particularly the scratching out of some of the re-reservations. We tabled amendments, of course, to remove the re-reservation of insolvency and health professional regulation matters in a previous stage, but the Government rejected them at that point, as did the British Labour party. I am delighted that there is now unanimity that those re-reservations should be removed.
David Mundell
Will the hon. Gentleman confirm that he also tabled an amendment at an earlier stage to remove the re-reservation of Antarctica and that the re-reservation of Antarctica remains in the Bill?
Stewart Hosie
Indeed it does. We can safely say that we have no territorial claims on Antarctica. This is a Scotland Bill, and the re-reservation removal is sensible.
Lords amendment 18 deals with reports on the implementation and operation of financial measures in the Bill. That is a sensible provision, and it is linked closely to the commencement of those financial provisions. We made that point repeatedly throughout debates on the Bill. In the Committee of the whole House, on the second day of debate, we discussed commencement powers to ensure that things were done at the correct time. We had a good debate on six separate commencement provisions for various financial measures. We said:
“If the commencement arrangements are left unchanged, many of the most important questions about the Bill will be left unanswered.”—[Official Report, 14 March 2011; Vol. 525, c. 89.]
On Third Reading, we said that the amendments that we had tabled on commencement would ensure that the tax provisions could not
“be brought into effect unless the Scottish Parliament...specifically consented.”—[Official Report, 21 June 2011; Vol. 530, c. 248.]
That was not just a point of principle—matters that affect the Scottish Parliament should be decided by the Scottish Parliament—but concerned some practical, technical issues. If a number of fiscal measures were introduced at the wrong time in the economic cycle that could be detrimental economically. Several Labour Members understood that point, and did so very clearly indeed, and it was interesting that Labour abstained from decisions on commencement—the party did not object to it, and I am glad that it welcomes what we have at the moment.
I want to take the opportunity, unusually, to be generous to the Secretary of State. The discussions and negotiations between his team and Bruce Crawford, the Cabinet Secretary for Parliamentary Business and Cabinet Strategy, and the letter that the Secretary of State sent to Bruce and to the Cabinet Secretary for Finance, Employment and Sustainable Growth, John Swinney, were extremely helpful, particularly the part of the letter that said:
“Consistent with the principle of consent”—
which was what we were determined to deliver—
“our two governments should reach agreement on implementation issues, including adjustments to the block grant…Each government should also provide assurance to its Parliament before the relevant provisions of the Bill are brought into force and before implementation arrangements are brought into effect.”
That agreement on the requirement properly to engage the Parliaments, and the principle of consent, were what we were trying to achieve. For the avoidance of doubt—and I have said this to the Secretary of State for Scotland, so it is not a surprise to him—of course there will be a bun fight about the contents of the Bill. Of course the matters that are being devolved do not go far enough for the Scottish National party—that is not a huge surprise—but making sure that we avoid the dangers of the financial provisions commencing at the wrong time was always the key thing that we needed to change. The Secretary of State knows that, so I very much welcome that exchange of letters to ensure that commencement is done properly on the basis of consent.
Pete Wishart
It is a pleasure to follow the hon. Member for Congleton (Fiona Bruce). The Scottish people are always pleased at the interest and indulgence of English Members of Parliament in our affairs and business. We are all grateful for that.
It is a pity that the hon. Member for Penrith and The Border (Rory Stewart) has left the Chamber. I did not know whether to reach first for my horned helmet or my longboat during his comments about Vikings. I do not know how many people in Denmark are rushing to join a greater union with Germany—certainly I have never come across a Dane who has been keen to be part of that particular union.
The most notable thing about these Lords amendments is how little they were discussed in the Lords. I do not know whether other Members spent any time looking at the debates in the House of Lords, but I did, and “interminable” would not be the word to describe some of them. At times it seemed like the Michael Forsyth show—he was on his feet all the time. Such is his pre-eminent place in the Tory-led cross-Unionist alliance that people like him are leading the debate just now.
David Mundell
Does the hon. Gentleman recognise that, unlike the Scottish National party, Lord Forsyth achieved extra devolution to Scotland in the Bill? Lord Forsyth introduced amendments that extended the Scottish Parliament’s powers, which were accepted in the House of Lords and will be proposed in this Chamber. The Scottish National party has failed—
Madam Deputy Speaker (Dawn Primarolo)
Order. I would like both the Minister and the hon. Member for Perth and North Perthshire (Pete Wishart) to return to the subject of the amendments. We should talk about the subject, not what debates went on elsewhere. I am sure, Mr Wishart, you will do so immediately.
Pete Wishart
I am grateful, Madam Deputy Speaker.
We have effectively ensured that there will no longer be re-reservations of health professionals because the clause was dropped, but the point I was trying to make was on how we managed to get to that point. I remember the debate and the passionate case that was put for the re-reservation of health professionals. The right hon. Member for Stirling (Mrs McGuire) does not agree with that, but I do not know whether Labour Front Benchers take that position or whether they believe that re-reservation is no longer required. I would be interested to find out how we got to this position.
David Mundell
Perhaps the hon. Gentleman did not hear what I said earlier. The Government reached this position because the Scottish Government gave assurances that they would work with the UK Government to ensure that the regulation of health professionals was the same across the UK. On the basis of those assurances, which I understand still hold good, the UK Government agreed that we would not put that clause in the Bill, hence the amendment. We have acted on the basis of assurances given by the SNP Government. I do not expect that they will renege on those assurances, and I hope the hon. Gentleman is not suggesting they will.
Pete Wishart
That sort of clarifies things, but I do not understand why the Minister did not accept the amendments when they were debated in the House in March last year. We know the right hon. Member for Stirling does not like the amendments and that the Minister has grudgingly given the re-reservation away, but we do not know the position of Labour Front Benchers.
David Mundell
With the leave of the House, I shall respond specifically to the points raised by my hon. Friend the Member for Warrington South (David Mowat), because I understood all the other Members who have spoken to be expressing support for the amendments, some more grudgingly than others.
I do not wish to question the accuracy of my hon. Friend’s analysis of the debates that have taken place in the House of Lords and the Scottish Parliament, but according to my reading of Bruce Crawford’s contribution to the Scottish debate, he made no reference to the no-detriment principle. He did, however, refer to the Holtham approach. There are two separate issues in play. The Holtham approach is about the adjustment of the block grant.
Lindsay Roy (Glenrothes) (Lab)
Can the Minister confirm that the same Bruce Crawford did not describe the Bill as a poison pill, a dog’s breakfast, and dangerous?
David Mundell
I accept the hon. Gentleman’s recollection of what Mr Crawford may have said about the Bill on previous occasions, but as I said earlier, I welcomed his constructive approach in his dealings with me, with the Secretary of State and with the UK Government in taking the Bill through the Scottish Parliament by way of a unanimously expressed legislative consent motion.
During the debate in that Parliament, Mr Crawford referred to the Holtham approach, which, as I said a moment ago, relates to the adjustment of the block grant and is separate from the no-detriment principle. The Government have accepted that, as in relation to Wales, the Holtham methodology should apply for calculating block grant adjustments. That is the basis on which we will move forward. I do not accept that over the past 12 years or so the Scottish Parliament and Government have been deprived of funds. As others have said, no matter how much money is allocated to the current Scottish Government under whatever mechanism, it would never be enough.
The no-detriment principle refers to how the financial system will operate after the Scottish rate of income tax comes into force. Under that principle, the UK Government would either compensate the Scottish budget for the costs of their policy change on the devolved tax base through the block grant, or receive funds back if the Scottish budget benefits from the policy change in raised receipts. The cost or benefit to the UK from decisions taken on the income tax structure is therefore exactly the same as it would have been before this Bill devolved 10p on income tax to Scotland, and the Scottish budget would be no better or worse off.
The Office for Budget Responsibility will forecast the impact of UK decisions on the Scottish rate of income tax, and we will take steps to ensure that the Scottish budget is compensated. There is therefore a principle of reciprocity. Where one Administration either gains or loses as a result of decisions taken by the other Administration, across the shared income tax there are measures in place to compensate for that loss or gain. This is simply a matter of common sense. It is based on the principle of accountability, which lies at the heart of the statement of funding policy.
I assure my hon. Friend the Member for Warrington South that where decisions taken by any of the devolved Administrations have financial implications for UK Departments, or where UK decisions lead to additional costs for any of the devolved Administrations, the body whose decision leads to the additional cost will meet that cost.
Lords amendment 2 agreed to.
Clause 10
Continued effect of provisions where legislative competence conferred for limited period
Madam Deputy Speaker (Dawn Primarolo)
With this we may take Lords amendment 4.
David Mundell
Lords amendment 3 would remove clause 10, and Lords amendment 4 would replace it with a new clause making similar, but expanded, provision.
Clause 10 makes provision regarding the status of the Acts of the Scottish Parliament after temporary changes to legislative competence following an order under section 30 of the Scotland Act 1998. There is widespread recognition that clarity is required on the status of Acts of the Scottish Parliament in the event that its legislative competence is reduced. The Government introduced these amendments in the other place to provide clarity following comments from the previous Scottish Parliament Scotland Bill Committee and the Law Society of Scotland.
Lords amendment 4 would ensure that Acts of the Scottish Parliament that have been validly made within the legislative competence that existed at the time do not cease to have effect purely because of changes to the boundaries of competence. Therefore, provisions contained in Acts of the Scottish Parliament will not automatically fall following an alteration of legislative competence, and no gaps in the law will inadvertently be created as a result. Such provisions would cease to have effect only if explicitly provided for in an enactment.
I hope the House will agree that Lords amendment 4 is sensible and will strengthen the provision originally contained in clause 10, and that Lords amendments 3 and 4 will be agreed to.
Mr Bain
Lords amendment 3 removes clause 10, and Lords amendment 4 inserts a new clause before clause 11 on the matter of provisions ceasing to be within the legislative competence of the Scottish Parliament.
Clause 10 would have permitted laws passed by the Scottish Parliament under a temporary transfer of powers—such as under a section 30 order—to remain in force after that transfer had come to an end. We note that the new clause widens the scope of the transfer, with the effect that any such laws, whether in the form of an Act of the Scottish Parliament or subordinate legislation, would have effect even where the competence of the Scottish Parliament to legislate had been removed, irrespective of whether this had been granted on a short or longer-term basis. We consider the new clause to remove any potential future ambiguities, and on that basis we are content to support Lords amendment 3.
Lords amendment 3 agreed to.
Lords amendments 4 to 8 agreed to.
Clause 17
The Lord Advocate: Convention rights and Community law
Madam Deputy Speaker (Dawn Primarolo)
With this it will be convenient to take Lords amendments 19 to 25.
David Mundell
There has been much debate about the role of the Lord Advocate and the Supreme Court in Scottish criminal proceedings. That debate has come a long way, and there is now agreement that the Supreme Court should have a role in relation to the European convention on human rights and EU law issues arising in Scottish criminal appeals.
The amendments tabled by the Government in the Lords took account of the many views expressed on these issues, including those of the expert group set up by the Advocate-General for Scotland. It would be appropriate at this point to remark on the passing of Paul McBride QC, who served on the expert group. Paul McBride was a well respected lawyer in Scotland and a highly regarded member of civic Scotland, and he is greatly missed by all who knew him and by the wider legal community. The amendments also took account of the views of the review group led by the noble and learned Lord McCluskey. On Report in the other place, he commented on the Government’s amendments. The end result of that process is something that even I could agree to about 98% of—which for anyone, never mind a lawyer, is a pretty good outcome, given where the debate started. In addition, the amendments tabled by the Government reflected the agreement that was reached with the Scottish Government to ensure that the legislative consent motion in support of the Bill was passed in the Scottish Parliament.
Lords amendments 9 and 19 to 22 replace clause 17 and make further provision about Scottish criminal proceedings. Subsection (2) of the new clause inserted by Lords amendment 21 would make the same provision as provided for by clause 17(2). That would mean that acts or failures to act by the Lord Advocate in prosecuting any offence, or as head of the system of criminal prosecutions and investigations into death in Scotland, would not be ultra vires should those acts be incompatible with the European convention on human rights or EU law. However, it will still be possible for acts of the Lord Advocate to be unlawful under section 6(1) of the Human Rights Act 1998 if the Lord Advocate acts in a way that is incompatible with the convention.
Lords amendments 19 to 21 provide for a new route of appeal to the Supreme Court for compatibility issues—questions raised in criminal proceedings about convention and EU law issues. Those issues would no longer be able to be raised as devolution issues. Lords amendment 21 would provide a right to appeal a compatibility issue from the High Court, acting as an appeal court, to the Supreme Court. The permission of the High Court or the Supreme Court would be needed for most appeals. An application for permission to appeal would have to be made within specified time limits, which could be extended if the Court considered that equitable.
Lords amendment 21 provides that the Supreme Court would only be able to determine a compatibility issue and would then have to remit the case back to the High Court. The High Court would then decide what steps needed to be taken in the light of the Supreme Court’s decision. For example, the Supreme Court would not be able to decide to overturn an accused’s conviction; that would be for the High Court to decide.
Stewart Hosie
I welcome that part of the group, but will the Minister make it absolutely clear—I believe he is just about to do so—that what we are seeing with these changes is an ending of the Supreme Court’s ability to substitute its decision for that of the High Court?
David Mundell
On this occasion, I am able to welcome the hon. Gentleman’s welcome. The provisions in the Bill, if these amendments are approved, will mean exactly that: the Supreme Court will not be able to substitute its own judgment for that of the High Court.
Sir Menzies Campbell (North East Fife) (LD)
Many of us in the House would wish to associate ourselves with the very generous and entirely appropriate remarks that the Minister made about Paul McBride. May I put it to the Minister that these amendments are an entirely effective antidote to the ill judged and ill informed comments made about the Supreme Court and its members by Scottish Ministers last summer?
David Mundell
I absolutely agree with my right hon. and learned Friend. The remarks made by the First Minister about members of the Supreme Court were beneath him; they demeaned his office and were wholly inappropriate.
Mr Davidson
Just for clarification, were the First Minister’s comments successful, in that his criticisms resulted in these amendments? If so, we would obviously take note of that. If not, that deserves to be spelt out.
David Mundell
I am happy to make it clear to the hon. Gentleman that views expressed by the First Minister about the Supreme Court played no part in these amendments or the completion of the Scotland Bill. Indeed, in dialogue involving the Scottish Government and Lord Advocate a much more moderate and sensible tone was adopted in relation to these matters, hence the ability to agree on what I would regard as a sensible and fair set of provisions that deal with the matters at hand.
Mr Davidson
Leaving aside the vehemence of the language used by the First Minister, was the substance of his comments the cause of the changes being introduced?
David Mundell
No. The changes being introduced today are a result of a process that was instigated by the Advocate-General for Scotland.
Sir Menzies Campbell
The Minister will recall that the attitude taken, to which both of us have referred, was to suggest that there should be no role of any kind for the Supreme Court in relation to any criminal issue arising out of Scotland. The proposals that he is now arguing for so eloquently represent an effective and entirely acceptable compromise.
David Mundell
I thank my right hon. and learned Friend for his comments. The proposals that form part of these amendments were part of the legislative consent motion that went before the Scottish Parliament and received unanimous support of that Parliament. Indeed, they were not opposed or spoken against by any Member of the Scottish National party, including the First Minister.
Lords amendment 20 would provide powers for compatibility issues to be referred to the High Court and the Supreme Court. That will enable such issues to be dealt with more quickly, where appropriate, which will be useful when a compatibility issue has implications for other cases. There are currently no time limits for appealing devolution issues in criminal proceedings to the Supreme Court. It is important that there is finality and certainty, especially for victims, in relation to criminal proceedings. Lords amendment 22 would impose time limits for seeking permission to appeal devolution issues from the High Court to the Supreme Court for devolution issues raised in Scottish criminal proceedings. The time limits are the same as those that will apply to compatibility issues.
Lords amendment 23 makes provision for a review to be arranged by the Secretary of State of the new compatibility issue procedure and of the introduction of time limits for certain devolution issue appeals. The review is to be carried out as soon as practicable after the provisions have been in force for three years. The review may be carried out earlier if that is considered appropriate. It will be wide ranging and will look at all aspects of the provisions and consider whether changes should be made. The UK Government and the Scottish Government have agreed that the review will be chaired by the Lord Justice General.
Lords amendments 24 and 25 make consequential amendments to clause 41.
Mr Bain
First, let me associate the official Opposition with the Minister’s remarks about Paul McBride. I also thank the right hon. and learned Member for North East Fife (Sir Menzies Campbell) for reminding the House of the importance of the Supreme Court in ensuring that institutions of government are exercised in accordance with the rule of law. That is a vital element of our constitution and one that must not go unheard in the House today.
Lords amendments 9 and 19 to 25 collectively omit clause 17 from the Bill and add new clauses before clauses 38 and 41 in respect of the relationship between the Supreme Court and the functions of the Lord Advocate in criminal prosecutions in Scotland, Acts of the Scottish Parliament thereby affected, and the role of the Advocate-General for Scotland.
Lords amendment 19 amends the Criminal Procedure (Scotland) Act 1995 to provide that the Advocate-General may take part as a party in criminal proceedings in Scotland in so far as they relate to a compatibility issue over the actions or omissions of a public authority relating to convention rights or EU law or over whether an Act of the Scottish Parliament or any provision thereof raises issues of compatibility with EU law or convention rights in Scottish criminal proceedings.
Lords amendment 20 makes further amendment to the 1995 Act to provide that when a compatibility issue arises in criminal proceedings in a court, other than any High Court of Justiciary proceeding heard before two or more judges, compatibility issues may be referred to the High Court of Justiciary. That may be required by the Lord Advocate or by the Advocate-General, if he is a party to the proceedings. In turn, the High Court of Justiciary may refer a compatibility issue to the Supreme Court, and may be required to do so by the Lord Advocate or by the Advocate-General, if he or she is a party to the proceedings.
Lords amendment 20 makes it clear that the role of the Supreme Court is restricted to determining the compatibility issue, whereby the case is then remitted back to the High Court of Justiciary for determination in the light of the Supreme Court ruling on the compatibility issues. That amends the relationship between the two courts, and while it preserves the ability of the Supreme Court to make entirely authoritative and decisive rulings on questions of the compatibility of the decisions of the Lord Advocate in relation to Scottish criminal proceedings and the prosecution system, it also ensures that the High Court of Justiciary is the judicial forum in which any convictions required to be reduced in the light of such a compatibility ruling are reduced.
Lords amendment 22 introduces a new clause that creates a time limit for application to the High Court of Justiciary in some cases, and to the Supreme Court in more serious criminal cases, of 28 days following the initial decision or, in the latter case, against the refusal to give permission for a compatibility reference. However, as the Minister suggested, that time limit can be extended by either court on the ground of equity.
Mr Bain
I entirely agree with the right hon. and learned Gentleman. One of the strengths of the devolution settlement is that it allows a court of the seniority of the Supreme Court to make these determinations. It would have been wholly irresponsible to remove these basic protections from people in criminal cases in the way that other politicians in the Scottish Parliament sought to achieve.
We are content with the amendments that have been made by the Lords and we will support them in the Chamber today.
Lords amendment 9 agreed to.
Lords amendments 10 and 11 agreed to.
Clause 25
Speed limits
Madam Deputy Speaker (Dawn Primarolo)
With this it will be convenient to consider Lords amendments 13 to 16.
David Mundell
Clause 25 allowed the Scottish Ministers to determine the national speed limit on roads in Scotland and to make regulations to specify traffic signs to indicate that limit. Clause 25 limited these powers to cars, motorcycles and vans under 3.5 tonnes.
We listened carefully to the arguments presented by noble Lords, together with the case made by the Scottish Parliament and Scottish Government for the Bill to provide for the devolution of powers to set different speed limits for different classes of vehicles—for example, cars towing caravans or goods vehicles. Lords amendments 12 to 16 would give the Scottish Ministers the power to make regulations regulating the speed of all classes of vehicle on roads in Scotland.
Mr Davidson
Will there be any restrictions under the Bill on the speed with which Scottish Government Ministers can change policy on issues such as income tax for a separate Scotland?
David Mundell
As the hon. Gentleman knows, in the devolution of powers such as speed limits, which are devolved in the clauses to which the amendments relate, it is entirely a matter for the Scottish Parliament and Scottish Government to determine how they use those powers and whether they apply them to themselves as they would to others.
John Stevenson
Although I fully support the Bill and what we are trying to achieve by devolving power to the Scottish Parliament, with regard to the road traffic regulations I have one concern, being the Member of Parliament for Carlisle, which is on the border—that is, that we ensure that there are sufficiently sensible signs on the border to indicate whether we should be speeding up or reducing our speed as we cross the border. I hope my right hon. Friend will ensure that the Scottish Parliament makes sure that that happens.
David Mundell
I am responsible for many things, but I am not responsible for the Scottish Government acting in a sensible manner. We are seeking to devolve these powers, which apply not just to the setting of limits, but to the signage. I am a Member of Parliament for a border constituency, as is the Secretary of State. We want to ensure that appropriate measures are in place so that people know what the law is on both sides of the border. As my hon. Friend pointed out on Second Reading, there are numerous legal differences between Scotland and England, which our respective constituents have managed to cope with over many years, not least the licensing laws.
Mr Davidson
Is it not the case that the Scottish Government want these powers in order to keep the speed limits the same? Just as with the monarchy, tax, the currency and NATO membership, they want the power to decide themselves that there will be no change.
David Mundell
I do not disagree with the hon. Gentleman. I took part in a radio programme with a member of the Scottish National party to debate the currency, and her principal argument was not over which currency Scotland should have, but about the fact that she should have the right to choose which currency; she suggested the Chinese renminbi, but I did not think that that would go down too well with the Politburo.
Lords amendments 12 to 16 would give Scottish Ministers the power to make regulations regulating the speed of all classes of vehicle on roads in Scotland and some consequential amendments. Together with the existing provisions in clause 25, that would enable them to set a national speed limit that is different for different classes of vehicle and the power to make regulations to specify traffic signs that indicate that limit. We think that that is a sensible addition to the Bill and, as right hon. and hon. Members might know, it was promoted in the House of Lords by my noble Friend Lord Forsyth, no less.
Mark Lazarowicz
These are sensible measures and I am sure that Scottish Governments of whatever political colour will use the powers sensibly. If a significant divergence was to develop between practice in England and practice in Scotland in relation to road signage and speed limits, what steps could be taken to make the necessary changes to the Highway Code, the driving test and more generally to inform drivers on both sides of the border?
David Mundell
It will obviously be for the Scottish Government to advise on changes to signage, among other things, that they make. Changes that are specific to Scotland can be included in the Highway Code, and we currently have differential traffic regulations in different parts of the United Kingdom. I am sure that the hon. Gentleman, like me, will have constituents who have fallen foul of the congestion charge that applies in London but nowhere else in the United Kingdom. There are differential traffic regulations in place at the moment, and these are well advertised.
Mr Russell Brown (Dumfries and Galloway) (Lab)
What discussions were held when it was decided that it would be the right thing to devolve the power that would allow the Scottish Government to determine what traffic should be flowing and at what speed? Was there any sense behind the decision that, for example, heavy goods vehicles should be allowed to travel at 60 mph on single track roads?
David Mundell
I share the hon. Gentlemen’s concerns about traffic speeds in our part of Scotland, Dumfries and Galloway, particularly on the A75. I hope that these powers will allow the Scottish Government for once to focus on Dumfries and Galloway and address such issues. They will have the powers and it will be for them to make the decisions. I commend my noble Friend Lord Forsyth for achieving this significant amendment to the Bill. It is the only amendment made during the passage of the Bill that will ensure that the powers of the Scottish Parliament are increased, and I do not think that the irony of that was lost on him.
Mr Davidson
Given that speed is a product of both distance and time, has there been any further submission from the nationalists on their ambition to have Scotland in a separate time zone, because it is obvious that if it was in a separate time zone—
David Mundell
Before the debate becomes any more raucous, I should recognise that this is possibly my final opportunity to speak to the Bill, so I should like to use it principally to thank the officials in the Scotland Office who have worked so hard to deliver it. We are often the subject of scrutiny, but we are a very small Department and we, along with the Treasury and, indeed, Scottish officials, have worked to deliver this major piece of constitutional legislation. I thank all those who have participated in that process. As I said at the very start of our proceedings, I participated at the beginning of the process that led to the Bill, and I am very proud to be here at the end.
Oral Answers to Questions
David Mundell Excerpts(12 years, 7 months ago)
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David Mowat (Warrington South) (Con)
3. What discussions he has had with the Chancellor of the Exchequer on the funding formula for Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The Government are aware of the concerns that have been expressed about the current system of devolution funding, whereby changes to the block grant are calculated according to the Barnett formula. Owing to the unprecedented deficit that we inherited, our immediate priority is to reduce the deficit, and we have no plans to change the present arrangements before the public finances have been stabilised.
David Mowat
Given that the Government have no plans to replace the current formula with a formula based on need, and given the requirement for clarity so that the people of Scotland know what proportion of the national debt they will inherit before they vote, does my hon. Friend agree that the Barnett multiplier would provide a good solution?
David Mundell
I believe that we need to move on from the discussion of issues of process relating to the referendum, and engage in a substantive debate on the issues that would affect Scotland if it became independent. Having, it would appear, campaigned relentlessly for independence, the SNP now seems to want to delay the question and the issues for as long as possible.
Mr Brian H. Donohoe (Central Ayrshire) (Lab)
Does the Minister agree that the high price of fuel is creating major problems in Scotland, and that, at a stroke, cutting VAT, which is perhaps the unfairest tax in the country, would help Scottish families, who are suffering greatly as a result of the Budget.
Mr Speaker
Order. I hope that the answer will refer to the funding formula for Scotland, as the question should have done.
David Mundell
The funding formula for Scotland is calculated on the basis of a basket of taxes raised by the United Kingdom Government. Scots would be much worse off if fuel duty were 10p higher, as it would have been if Labour were in power.
Mr David Evennett (Bexleyheath and Crayford) (Con)
Does my hon. Friend agree that it is vital to maintain the Union in the interests of both England and Scotland, but that the funding formula should be fair to both countries?
David Mundell
I agree absolutely with my hon. Friend’s sentiments, but as he and many other Members are aware, this Government inherited the worst deficit in peacetime history from the Labour Government, and stabilising our nation’s finances must be the focus of their efforts.
Gordon Banks (Ochil and South Perthshire) (Lab)
My question relates directly to the question from the hon. Member for Bexleyheath and Crayford (Mr Evennett) and the Minister’s answer to it. Does the Minister agree that the Scotland Bill will increase the amount of revenue gathered in Scotland to about a third of its spend, and will thus decrease dependency on a block grant?
David Mundell
I agree that the Scotland Bill represents a radical, historic and significant change to Scotland’s financing. More than a third of spending by the Scottish Parliament will result from funding from taxes that it determines and raises. That is a major step forward in terms of devolution and accountability, and should be welcomed by all Members.
Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)
13. How many pensioners in Scotland will be affected by the Chancellor of the Exchequer’s decision on age-related personal allowances.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
Three hundred and sixty-seven thousand.
Michael Connarty
Will the Government not admit that the figures do not reveal the fact that this is an attack on people who have put away money for their retirement? The amount involved is up to £30,000 a year. This is an attack on middle-class people. There is also an attack on single people, who will lose income through being hit by the bedroom tax. People cannot be elderly and they cannot be single—and it would appear they cannot be hungry either, as there is a tax on fish and chips.
David Mundell
It will not surprise the hon. Gentleman that I do not accept his analysis. He and others who scaremonger on this issue fail to point out that more than half of those in Scotland aged over 65 will not pay any tax at all.
Lindsay Roy
Is the Minister not ashamed of his Government’s decision to reduce tax for the wealthiest Scots while at the same time penalising pensioners with a tax grab, whereby they will lose up to £322 per annum?
David Mundell
I know that the hon. Gentleman was not a Member of this Parliament for most of the 13 years of the last Labour Government, but most of his colleagues from Scotland were, and I did not hear them calling at that time for an increase in the higher rate of income tax. He is wrong to say that there will be losers in relation to the age-related allowances; there will be no cash losers.
Sandra Osborne
If, as the Government say, this measure is about fairness and simplification, why did they not wait until the full £10,000 personal allowance was in place before imposing this stealth tax on pensioners?
David Mundell
I acknowledge that the hon. Lady is well known for speaking up both for the low-paid and for those on the minimum wage. That is why I would have thought that she would have welcomed the fact that the Government are raising the personal allowance to £10,000 during this course of this Parliament. [Interruption.]
Mr Speaker
Order. There are a lot of noisy private conversations taking place in the Chamber. I would like to hear the questions and the answers.
Gregg McClymont
What does it say about the priorities of this Government that they impose a granny tax on 367,000 Scots while giving a tax cut to the wealthiest 14,000 Scots?
David Mundell
What the hon. Gentleman and his colleagues fail to acknowledge is that this Government have delivered the largest pension rise in the last 30 years, whereas the last Government, which his party led, introduced a pension rise of 75p, so we are not going to take any lectures from Labour on the treatment of pensioners in Scotland.
Mr William Bain (Glasgow North East) (Lab)
Just how out of touch are this Government if they think that it is right or fair that almost 400,000 Scottish pensioners should pay on average £83 a year more in tax from next April just so that 16,000 top-rate taxpayers receive a tax cut of £10,000 a year on average? People retiring next April will face an annual tax hike of £322 a year because of the granny tax and the ending of the savings credit in 2017, on top of higher VAT and cuts in winter fuel allowance introduced by this Chancellor. With a record in government like that, surely it is no surprise to the Minister that Tory election strategists are gloomy about winning any seats at all in Scotland at the next general election.
David Mundell
What I think is fair is that half of pensioners over 65 in Scotland will not pay any tax at all; that those earning less than £10,000 will, by the end of this Parliament, be subject to a personal allowance of £10,000; and that this Government have delivered the largest increase in the pension—£270 compared with the 75p offered by the previous Government.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
Those pension increases will, of course, be wiped out by this tax grab. People living on modest pension incomes have already paid a very high price for the financial crisis. They have lost the value of their savings and investments, and they are having to face inflation and extremely low interest rates. How can the Minister justify this tax grab on pensioners while taxes are being cut for millionaires?
David Mundell
I am afraid that I am not going to accept any lectures on economics from the hon. Lady. She is offering pensioners in Scotland the prospect of breaking up the United Kingdom, with no certainty as to where pension funding would come from.
Julian Smith (Skipton and Ripon) (Con)
6. What assessment his Department has made of the implications for the currency used in Scotland of a vote in favour of independence for Scotland.
Guy Opperman (Hexham) (Con)
7. What steps are being taken by the Government and the Office of Fair Trading to tackle fuel poverty in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The Secretary of State chaired the first ever annual summit in Scotland on fuel poverty, bringing together the heads of the big six energy companies and Scottish consumer groups. That led to suppliers providing information to improve the application of key policies in Scotland, such as the warm home discount scheme. I am convening a follow-up meeting soon to review progress.
Guy Opperman
Does the Minister agree that the problem of a lack of competition in the availability and provision of heating oil in the Scottish border region needs addressing urgently?
David Mundell
I represent a large rural constituency in the Scottish borders, so I certainly share my hon. Friend’s concerns, although I understand that in his constituency there are some innovative initiatives whereby communities are coming together to purchase heating oil and are therefore able to negotiate better prices with suppliers.
Mr Mike Weir (Angus) (SNP)
As well as pressing the Office of Fair Trading, will the Minister press his own Cabinet colleagues to look at providing practical help, for example by bringing forward the pensioners’ winter fuel allowance for off-grid consumers to allow them to fill up their tanks before winter hits, when prices tend to be lower?
David Mundell
The off-grid issue is of concern in rural Scotland, as elsewhere, and I would be happy to meet the hon. Gentleman to discuss his concerns.
Mr Graham Allen (Nottingham North) (Lab)
11. What powers would be devolved to Scotland under devo-max.
Livingston New Town
David Mundell Excerpts(12 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Scotland (David Mundell)
I congratulate the hon. Member for Livingston (Graeme Morrice) on securing the debate, which marks a significant year in the history of the community of Livingston. He mentioned my constituency, which is one of the largest in Scotland and borders his, as it does many others. He also mentioned Bristow Muldoon, under whose convenorship of the Local Government and Transport Committee I was happy to serve when I had the privilege of being a Member of the Scottish Parliament.
The hon. Gentleman will be aware that it was a Conservative Secretary of State for Scotland, John Maclay, who backed the plans for the development of Livingston back in the early 1960s. Livingston was designated under the New Towns Act 1946 and the Local Government (Scotland) Act 1947 as one of the new towns to be built, as the hon. Gentleman said, to relieve overcrowding in Glasgow and other areas.
Scotland’s five new towns—East Kilbride, Glenrothes, Cumbernauld, Livingston and Irvine—have added much to the fabric of our country. Their development corporations may have come and gone, with their functions transferred to local authorities, but the towns themselves have put down enduring roots. They have proved to be pacesetters in Scotland’s economic transformation in recent decades, and that has most certainly been the story of Livingston.
The hon. Gentleman has enabled us to celebrate Livingston at 50. Like many of us, Scotland’s fourth new town has moved into middle age. However, it has a lot to celebrate and even more to look forward to. It has been an eventful half century, packed full of highs and a few lows, but freshly forged spirit and community have combined to drive the town onwards and upwards. The result is that, in 2012, Livingston is firmly fixed on the national and international map as a centre for business, innovation, education, health care and sport.
Livingston was also purposely planned, which brings me to a subject that the hon. Gentleman did not mention: roundabouts. Only after the winding up of the Livingston Development Corporation in 1997 did Livingston get its first traffic lights. Roundabouts have become synonymous with new towns both north and south of the border. Residents of Livingston have referred to their town as “Roundabout City”, but roundabouts in Livingston are a bit special. Landmark sculptures designed by David Wilson in the 1990s adorn the four major roundabouts. Built from reclaimed dyking stone, NORgate, Compass, Dyke Swarm and Chrysalis have been local landmarks in their own right for more than a decade.
Over five decades, Livingston has moved and progressed on many fronts. It has grown into a community of more than 50,000 residents and enhanced its connectivity to Scotland’s road and motorway network. Its proximity to Edinburgh airport is an added attraction for businesses seeking to locate or invest in the town. It is better connected with the two railway stations—Livingston South and Livingston North were established in the 1980s, offering direct links into Edinburgh and Glasgow.
Sport has also brought success and attention to the town. As the hon. Gentleman said, the 1990s witnessed the arrival of Livingston FC and the building of Almondvale stadium, home to a team that played in European competition and won the league cup in 2004. Of course, darker days followed with the club going into liquidation, but happily for the hon. Gentleman, Livingston FC is on the up again in the first division.
Livingston has always been a leader in business. For half a century, Livingston has been at the cutting edge of innovation and technology. High-tech and pharmaceutical firms were in the vanguard of the wave of light industry attracted to Livingston from the 1960s. Some of us remember the slogans—“Make it in Livingston” and “Build it in Livingston”—of the now-departed Livingston Development Corporation, to which the hon. Gentleman referred. Those slogans have become a reality down the years.
In the 1990s, Livingston was an important hub in Scotland’s silicon glen. While some companies such as Motorola and NEC have come and gone, an abundance of new businesses have arrived in their place. As well as multinational companies maintaining factories in the town, BSkyB’s main call centre is the largest private sector employer in West Lothian.
Livingston is equipped with a modern and diverse economy. Retail and business services co-exist alongside modern manufacturing. Livingston attracts people from across central Scotland to shop, with an array of established names operating out of state-of-the-art shopping centres, which the hon. Gentleman described in detail. Livingston is also a centre for significant public sector employment. The civic centre, West Lothian college of further education and St John’s hospital illustrate the town’s importance for public administration, education and health care.
We must today wrestle with the challenge of giving a new life to a mature new town. Livingston faces the same employment challenges that confront similar communities throughout Scotland, the UK and the western world, although as the hon. Gentleman will know, the jobseeker’s allowance claimant rate is below the national average. In a fiercely competitive global marketplace, Livingston is blessed with real advantages as it seeks to secure new investment and jobs.
The town’s location, transport links and highly skilled work force are beacons for business. Livingston is still at the cutting edge of Scotland’s future. It is equipped with a modern and diverse economy, including some of the most innovative businesses in Scotland. I would like to highlight the superb example of Cyberhawk Innovations, a Livingston company that has developed unmanned helicopters that allow engineers to inspect the inner workings of tall and inaccessible structures such as oil installations. Founded less than four years ago, it is now expanding and exporting overseas. It is a marvellous illustration of commercialisation from Scottish engineering excellence and inventiveness. Similarly, there is Touch Bionics, a spin-out from the NHS and a world-class leader in the design and manufacture of prosthetic limbs. That is why it is showcased in the UK Government GREAT campaign to promote investment in the UK during this diamond jubilee and Olympic year.
I know that Livingston is planning to mark its golden anniversary with style. The hon. Gentleman’s debate will be a significant part of that celebration. As well as a new logo designed by schoolchildren and new trees, plenty of events, exhibitions and activities are planned around the anniversary on 17 April. It is great to see that this anniversary will be marked with specials events, with arts, music and dance the centrepieces of the celebrations next month. As Livingston reaches its golden jubilee, it can reflect on a successful past. Officially, it has not been a new town for 15 years. It has matured into an established feature of the Scottish landscape. I hope that it can look forward to a great future as a significant centre at the forefront of the Scottish and UK economies. On behalf of the UK Government, I wish Livingston all the best for its second half century.
Question put and agreed to.
Supermarkets And Public Land (Scotland)
David Mundell Excerpts(12 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Scotland (David Mundell)
I congratulate the hon. Member for East Kilbride, Strathaven and Lesmahagow (Mr McCann), my neighbouring MP in south Lanarkshire, on securing debating time tonight. Adjournment debates are an important opportunity for Members to put matters of concern on the record, and the hon. Gentleman has been able to do that.
The issues that have been set out have already been the subject of a great deal of investigation by the relevant authorities. I am conscious that a number of the issues raised are still under consideration by both the procurator fiscal and the civil courts, and therefore it would not be appropriate for me to comment on those. The issues raised also relate closely to the decision-making process for planning applications in Scotland and to economic development policy in Scotland. It is important to recognise that these matters in Scotland are devolved and are properly for the relevant local authorities, the Scottish Government and their agencies. I can therefore offer no comment on the merits or otherwise of the applications in question.
With regard to the responsibilities and accountability of civil servants, I understand the hon. Gentleman’s frustration. However, there are proper processes in place. The civil service code, first published in 1996, sets out the core civil service values and the standards of behaviour expected of civil servants in upholding these values. A Scottish Executive version of the civil service code was first published in 2006.
On 11 November 2010, the civil service provisions of the Constitutional Reform and Governance Act 2010 came into force, placing the civil service values on a statutory footing. Under the terms of the 2010 Act, a revised civil service code was laid before the UK Parliament on 11 November 2010 and is available on the Cabinet Office website, and a revised separate code of conduct governing civil servants who serve the Scottish Executive was laid before the UK Parliament and Scottish Parliament on 11 November 2010.
As the hon. Gentleman said, he pursued the matter also with the then head of the civil service, who fully investigated the matter.
Thomas Docherty (Dunfermline and West Fife) (Lab)
I am grateful for the opportunity to speak in the debate. Having worked in the property industry, I know that Mr Gallagher has something of a reputation for being what in Moffat would be called a wide boy. Is the Minister satisfied that the code covers the culture of behaviour, as well as the actions?
David Mundell
I am satisfied that the terms of the code are appropriate and are appropriately administered. As the hon. Gentleman knows, complaints regarding the Scottish Government and their agencies which have gone through those organisations’ own formal complaints procedure can also be raised with the Scottish public services ombudsman. It is for the public services ombudsman to deal with these matters, and it is right that the appropriate avenues are used. The Scotland Office does not have any locus in such matters and it would not be appropriate for us to take on any investigatory role in relation to these matters.
Mr McCann
Having served for a considerable time in my career as a full-time trade union official in the civil service, and having represented people who work in Scottish Enterprise, I know how the procedures operate. In the situation that I described, I made a formal complaint to the head of the civil service that someone, as I set out in my opening address, committed a serious disciplinary offence. No action was taken whatsoever, and he was allowed to leave the service with a handsome package paid for by the taxpayer. Those questions have never been answered. Therefore the question that I must put to the Minister is how am I to pursue such questions to a logical conclusion when all I got from the civil service was a brick wall constructed in front of me and my questions not being answered?
David Mundell
As I set out in my opening remarks, the hon. Gentleman has had the opportunity this evening to place all his concerns on the record. I undertake to ensure that a transcript of tonight’s proceedings is conveyed to all the relevant parties that have been discussed, including Scottish Enterprise, the Scottish Government, Sir Peter Housden, the Information Commissioner, and the current head of the civil service, Sir Bob Kerslake, so that everyone who has an interest in the matter can read the points that the hon. Gentleman has raised. However, the Scotland Office is unable to take forward further investigations. Indeed, it would be inappropriate to do so while a criminal investigation and civil court proceedings are taking place. As I have said, he has used the important opportunity of an Adjournment debate to place his concerns on the record.
Oral Answers to Questions
David Mundell Excerpts(12 years, 9 months ago)
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Michael Connarty (Linlithgow and East Falkirk) (Lab)
3. What steps he is taking to ensure that the findings of the Equality and Human Rights Commission’s inquiry into human trafficking in Scotland are discussed by the relevant officials in England and Wales.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The Government are considering the findings of the Equality and Human Rights Commission’s inquiry into human trafficking in Scotland, in line with the ongoing implementation of the human trafficking strategy we launched in July 2011.
Michael Connarty
If the Minister had read the inquiry report, he would have seen that its main recommendation is that there should be a new human trafficking Bill for Scotland. I suggest to him that that would solve the problem of implementing the EU human trafficking directive, which we have signed up to, across the UK. I invite him and other interested parties to attend the all-party group on human trafficking next Monday in Room 7 to hear the inquiry being reported on in the House and perhaps take some advice.
Fiona Bruce (Congleton) (Con)
Does my right hon. Friend agree that the field of human trafficking, where co-ordination between involved agencies is critical if we are to find real solutions, is yet another practical example of a policy area that is best tackled at UK level?
David Mundell
I absolutely agree with my hon. Friend that the UK can bring great weight to this issue on behalf of Scotland. It is also an issue where we have been able to work with the Scottish Government, demonstrating that the two Governments can work together on matters of great importance on a day-to-day basis.
Andrew Selous (South West Bedfordshire) (Con)
4. What recent discussions he has had with the Chancellor of the Exchequer on a credit rating for Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
Mr Speaker, you will be aware that the Chairman of the Work and Pensions Committee, the hon. Member for Aberdeen South (Dame Anne Begg), who is a regular attendee at Scotland questions, has suffered a fall. I am sure that we all wish her well in her recovery.
My right hon. Friend the Secretary of State for Scotland and I are in contact with Ministers in the Department for Work and Pensions on a range of issues concerning welfare reform.
Mark Menzies
Is it not clear that if the nationalist Government in Scotland had control of welfare policy, there would be no benefits cap in Scotland, despite widespread public support for it?
David Mundell
What is clear is that the Scottish National party is making a proposition for independence without explaining to people how benefits at current levels would be paid in future, or where the money would come from.
Mike Freer
With the average income in Scotland being £419 a week, does the Minister not agree that a benefit cap of £500 a week is a reasonable and sensible level?
David Mundell
I do agree that that is a reasonable and fair measure, and constituents in constituencies such as mine cannot understand how the Labour party and the nationalists can promote the idea that the benefit cap should be higher than £35,000.
Sheila Gilmore (Edinburgh East) (Lab)
Is not the truth about the benefit cap, however, that if such a household on £419 a week, as cited by the previous questioner, had six children—like some of my constituents do—who had to be cared for, they would also receive child benefit, and that therefore the comparison that has been made is not fair? What is going to happen when the discretionary housing payments to a council—that is the only answer from the Government—run out?
David Mundell
The hon. Lady should listen to her hon. Friend the Member for Leeds West (Rachel Reeves), when she says that if Labour is to be taken seriously on any issue it has to
“pass the test of fiscal credibility.”
On this issue, that is a very relevant point.
John Robertson (Glasgow North West) (Lab)
The right hon. Gentleman will not be aware that I have the highest percentage of single women in any constituency in the country. What is he doing to help those women—[Interruption.] This is not a joke. This is a serious point, and Government Members can laugh all they like, but there are single women in this country who are struggling. What is his party going to do to help them?
David Mundell
What this Government are doing is tidying up the mess that the hon. Gentleman’s Government left, which has placed single women and many other people in a perilous financial position.
Pamela Nash (Airdrie and Shotts) (Lab)
7. How many disabled children receive the severe disability premium in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
As at 3 April 2011 in Scotland, there were 4,800 in-work families benefiting from the severely disabled child element and with child tax credit above the family limit. There are 5,000 severely disabled children in these families.
Pamela Nash
I thank the Minister for that answer. The Prime Minister told this House on 14 December and again on 23 January that his Government will not be cutting benefits for disabled children. Given that almost 8,000 children in Scotland will lose £1,400 a year through the child tax credit changes, does the Minister agree that the Prime Minister was plain wrong and clearly does not understand his own policy?
David Mundell
What I agree with is the fact that the Government are not making any savings at all from these changes. Savings from abolishing the adult disability premiums and changes to the child rate will not return to the Exchequer; those savings will be recycled into higher payments for more severely disabled people. [Interruption.]
Mr Speaker
Order. There are far too many noisy private conversations taking place in the Chamber. I know that the House will want to hear Mrs Eleanor Laing.
Mr Speaker
The Minister should answer with reference to the disability premium.
David Mundell
The severe disability premium and all other benefits are clearly set out by the United Kingdom Government. The Scottish National party has failed to set out how a single benefit in Scotland would be paid for post independence, if it were ever achieved.
Katy Clark (North Ayrshire and Arran) (Lab)
9. What discussions he has had with the Secretary of State for Defence on the future of DM Beith.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
I spoke to the Under-Secretary of State for Defence, my hon. Friend the Member for Mid Worcestershire (Peter Luff), last week on this issue. As he confirmed on Monday, there are no current plans to change the status of DM Beith. There is a need to maintain Beith until the Spearfish torpedo has been converted to a single-fuel system, when the need for specialist facilities may lapse. The conversion programme is expected to be completed around 2018.
Katy Clark
Defence Munitions Beith is one of the largest employers in North Ayrshire and is wholly dependent on Ministry of Defence contracts. Will the Minister ensure that there is a ministerial visit to the facility from the Scotland Office to find out what more can be done with a view to ongoing representations for future contracts with the Ministry of Defence?
David Mundell
I am pleased to be able to confirm to the hon. Lady that the Secretary of State for Scotland will be pleased to visit that facility in her constituency.
Mary Macleod (Brentford and Isleworth) (Con)
11. What assessment his Department has made of the financial effect on Scotland of independence.
Female Employment (Scotland)
David Mundell Excerpts(12 years, 10 months ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
It is a pleasure, Mr Hood, to serve under the chairmanship of a constituent. I congratulate the hon. Member for Glasgow North (Ann McKechin) on securing this debate about female employment trends in Scotland. It is one of a number of debates relating specifically to Scotland that have been held recently in both Westminster Hall and the main Chamber, and such debates are welcome. Following on from some of the hon. Lady’s remarks, I congratulate Johann Lamont on becoming the leader of the Scottish Labour party, which relates to the hon. Lady’s arguments. Moreover, at the end of last year, my colleague Ruth Davidson became the leader of the Scottish Conservative party, so the political process in Scotland has some female leadership. I am sure that both ladies will bring significant influence to bear in the months ahead.
The fight against unemployment is a priority for the UK Government. We are committed to getting Scots off benefits and into the workplace. Work remains the best and most sustainable route out of poverty. The UK Government have measures in place to support all claimants to find work. These measures are not gender specific. We want women and men to get the job opportunities that they need.
Nevertheless, this challenge must be set against the context of the UK recovering from the biggest financial crisis for generations and the deepest recession of almost all major economies. The uncertainty and instability in the eurozone area, where unemployment is higher than in the UK, continue to have a chilling effect on our economy.
Despite the difficult environment, we are still trying to help women. Many of the 90,000 Scots who have been lifted out of tax at the lowest end are women. The measures that we are taking on additional child care are helping women south of the border, with Barnett consequentials for Scotland. At the same time, our reforms of public service sector pensions will mean that lower-paid public sector employees, including many women, will get better pensions. On top of this, the UK Government have announced new support for women’s enterprise, with funding to provide 5,000 mentors for new and existing female entrepreneurs. Similarly, the establishment of the Women’s Business Council is geared towards helping the Government to maximise women’s contribution to future UK economic growth.
I recognise that there are concerns that women are being disproportionately affected by unemployment. Fears have been raised because of the predominance of women in the retail sector, in local government employment, in the NHS and in part-time work. However, as John Philpott, the chief economic adviser at the Chartered Institute of Personnel and Development said last month, it has been tough for both sexes in the 2011 jobs market. He commented:
“What we do know is that the relative position of women has not so far worsened as much as commonly perceived or as widely anticipated given the high concentration of women workers in the public sector and in part-time jobs more generally.”
Labour market analysis published last month by the Scottish Government shows the trend in Scotland over the past year is for women moving out of unemployment and inactivity into employment. As the Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Epsom and Ewell (Chris Grayling), said today,
“The latest figures reflect the current challenging economic climate but also show more women entering the workforce.”
That was backed up by the Prime Minister, who told the House earlier this afternoon that 59,000 more women are now in the workplace than at the time of the 2010 general election.
Ann McKechin
Female unemployment in Scotland has increased by 25% in the last quarter, so would the right hon. Gentleman not acknowledge, given the statistics that he has just quoted, that there needs to be a much more thorough analysis, so that we can get to the root of the reason why there has been such a rapid increase, whether that is likely to be a permanent shift in the job market and what sectors will be particularly affected?
David Mundell
I agree with the hon. Lady that analysis is important to getting to a full understanding of what the situation is. I assure her that the Government are not complacent in that regard.
The Government also have an ambitious agenda to reform the benefit system and to support those who are able to go back into work. The increase in female jobseeker’s allowance claimants in Scotland can be partially attributed to the change in the rules for lone parents. Most lone parents with a youngest child aged seven or over are no longer entitled to income support purely on the grounds of being a lone parent. They must now claim jobseeker’s allowance or employment and support allowance or find work. There are plans to apply that rule to lone parents with a youngest child aged five or over from this year. Our policies for lone parents strike a balance between the right to benefit to support the family and wider responsibilities to support themselves and lift their children out of poverty when that is feasible.
We also understand the importance of flexible working. It is the Government’s intention that the law will better support families juggling work and life, and the businesses that employ them. We are currently developing our proposals for extending flexible working legislation and will be consulting with stakeholders on how best to implement them.
Ann McKechin
The right hon. Gentleman mentioned the fact that more lone parents are coming into the job market because of changes to regulations. Will he tell us what dialogue he has had with the Scottish Government about the fact that, in Scotland, child care costs are so high? Proper, affordable child care is absolutely vital if people, particularly those on lower incomes, are to get back into employment.
David Mundell
The Secretary of State and I have had ongoing discussions with the Scottish Government on employment and wider economic issues and on how we can dovetail our policies to ensure that they work in the best way for people in Scotland. The hon. Lady clearly highlights a significant issue, which I will take up again with the Scottish Government the next time I have the opportunity to do so. I appreciate the importance of the issue that she is raising.
The UK Government recognise the issue of child care and are implementing measures geared to helping more women into work. The hon. Lady will be aware that, following the autumn statement, the Scottish Government will receive more than £500 million in addition to the sums that they had anticipated they would receive. In relation to that funding, the Scottish Government will have the opportunity to invest more in child care and skills development.
Looking forward, the integration of child care into universal credit when it is introduced in 2013 will protect work initiatives and ensure that support is focused on low-earning families. As I have said, we know how important child care is in helping mothers into work. Child care costs will be supported through an additional element in the universal credit. Support for the costs of child care within the universal credit will be made available to all lone parents and couples, where both members are at work, regardless of the number of hours they work. On average, families with children are more likely to have a higher than a lower entitlement under the universal credit.
More broadly, the Department for Work and Pensions is taking a number of measures to assist all claimants into work. The advisory support in job centres across Scotland is tailored and personalised to the individual’s needs. Claimants of both genders have access to a range of “Get Britain Working” initiatives, including work clubs, enterprise clubs, the work together scheme, work experience, new enterprise allowance and sector-based work academies. Similarly, work trials allow employers and employees the chance to try out employment opportunities.
The Work programme is a key part of our reforms and, as the hon. Member for Glasgow North knows, it went live in June. We are also helping to break down the barriers to employment through the flexible support fund, which can assist with child care expenses, travel costs and clothing costs. It also targets support to particular groups of claimants. The DWP is looking at bids for grant funding from bodies that specifically support lone parents and women with special needs, such as mental health issues.
Across Scotland, there is huge concern about youth unemployment and, obviously, a significant number of the people affected by that are female. Youth unemployment has been rising since 2004.
Dr Whiteford
Does the Minister agree that the Scottish Government’s commitment to ensuring that every young person in Scotland between the age of 16 and 19 has an apprenticeship, college or university place or training opportunity is a good thing and that it is the right direction to be moving in to tackle youth unemployment?
David Mundell
I can certainly assure the hon. Lady that I accept that many things the Scottish Government do are good. What I do not accept is the often presented premise that, if the Scottish Government do something, it is a good thing, and if the UK Government do something, it is a bad thing. We need to work together, particularly on issues such as youth unemployment.
As I said, youth unemployment has been rising since 2004 and is an issue on which we all need to take an interest. That is why I am particularly pleased that John Swinney is going to join the Secretary of State and me at a national convention to consider the issue of youth unemployment, with all other relevant stakeholders from throughout Scotland. In terms of identifying issues and concerns, we have undertaken a number of very successful events in Irvine, Hawick and Falkirk to date, and a national event will take place in Dundee in March.
We have also announced the youth contract, which will bring an extra £1 billion of extra investment into supporting the young unemployed, whether through wage incentives, additional work experience and opportunities or money to the Scottish Government. There will also be the offer of a work experience place for every 18 to 24-year-old who wants one before they enter the Work programme.
The UK Government cannot solve the employment challenges facing Scotland alone. The Scottish Government have many policy levers, with important responsibilities for education, skills, business tax and enterprise, which can be used to improve the employment situation. Scotland’s two Governments must work together to achieve this.
Question put and agreed to.
Oral Answers to Questions
David Mundell Excerpts(12 years, 10 months ago)
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John Robertson (Glasgow North West) (Lab)
2. What assessment he has made of the effect of the autumn statement on child tax credit payments in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The welfare system must remain fair and affordable, while protecting the most vulnerable. Most working-age benefits, benefits for disabled people and the basic state pension will increase by 5.2% in April. In order to remain on course with the debt consolidation plan and meet their fiscal mandate, the Government will increase the child element of child tax credit by the rate of inflation.
John Robertson
According to the House of Commons Library, the Government’s decision not to proceed with the £110 increase in the child element of child tax credit will take £41 million away from nearly 400,000 children in Scotland alone. Worst hit in Scotland will be Glasgow city, where 44,000 children are set to miss out on £4.8 million. When will the Secretary of State stand up for the children of Scotland?
David Mundell
The Government are standing up for the children of Scotland. That is why our priority is sorting out the mess that the Labour Government made of our economy. The hon. Gentleman would do well to heed the words of the former Secretary of State for Scotland, the right hon. Member for East Renfrewshire (Mr Murphy):
“The truth is the Labour party would have to make cuts if we were in power.”
John Stevenson (Carlisle) (Con)
We all accept that these are difficult economic times, but does the Minister agree that one of the most effective ways of helping the lowest-paid families is raising the income tax threshold to £10,000 and beyond?
David Mundell
I entirely agree. The measure has had a significant impact in Scotland, and more than 2 million basic-rate taxpayers will benefit from it during the current Parliament.
Anas Sarwar (Glasgow Central) (Lab)
After another week that has been dominated by political debate and headlines relating to Scotland’s constitution, we must not ignore a report by End Child Poverty showing that 50% of local authority areas in Scotland contain wards in which 30% of children are living in poverty, and that in some wards in my constituency the figure is 50%. What action is the Secretary of State taking, along with the Scottish Government, to ensure that every child in Scotland is given the best start and opportunities in life?
David Mundell
The hon. Gentleman raises important issues, such as the fact that many of the levers relating to child poverty rest with the Scottish Government. As a result of the autumn statement, the Scottish Government received more than £500 million in additional revenue. I should have thought it would be better if they focused on how to deploy that revenue to deal with such problems as child poverty than to obsess about the constitution.
Alun Cairns (Vale of Glamorgan) (Con)
3. What steps he is taking to promote Scotland as a destination for international inward investment.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
My right hon. Friend the Secretary of State and I firmly believe that Scotland is the ideal destination for international inward investment, and we have taken a range of actions to promote such investment. My right hon. Friend recently led the largest ever Scottish trade delegation to Brazil to promote closer business links with a key emerging market for the Scottish economy.
Alun Cairns
Does my hon. Friend accept that, in an ever more competitive world, uncertainty about independence has not helped the cause of Scotland or any other part of the United Kingdom that is seeking to attract much-needed inward investment?
David Mundell
I entirely agree with my hon. Friend, which is why I believe it is better that a referendum on Scottish independence be held sooner rather than later.
Angus Robertson (Moray) (SNP)
In contrast to the previous intervention, will the Minister acknowledge that international companies investing in Scotland since the re-election of the Scottish National party Scottish Government include INEOS, PetroChina, Dell, Gamesa, Amazon, Hewlett Packard and Mitsubishi Power Systems? Does he acknowledge that and welcome the investment?
David Mundell
I acknowledge that those companies have invested in spite of the uncertainty. We should consider the level of investment that Scotland could achieve if there was not that uncertainty.
Angus Robertson
That is the usual mantra that we hear from Government Members. Will the Minister respond to Scotland’s leading entrepreneur, Jim McColl, who said on this very subject that business is “not concerned” about the
“independence referendum…What many of us in business are convinced about is that a productive and prosperous future for this country depends on securing real economic powers for the Parliament through constitutional change”?
Will the UK Government drop their foolish conditions, so that we can secure that change in the autumn of 2014?
David Mundell
I am sure the hon. Gentleman will agree that Mr McColl is entitled to his opinion, as is any other citizen of Scotland. I am sure you will encourage them, as your own party’s Scottish Government already have, to contribute to our consultation on the independence referendum.
Mr Philip Hollobone (Kettering) (Con)
Does my right hon. Friend believe that were Scotland to become separate from the United Kingdom, and were it to be forced to join the eurozone as a condition of re-entry into the European Union, that would hinder or help inward investment into Scotland?
David Mundell
Uncertainty over Scotland’s position in the EU, and uncertainty over which currency Scotland would use if it were ever to become independent, would certainly hinder inward investment into Scotland.
Mr Brian H. Donohoe (Central Ayrshire) (Lab)
4. How many young people are not in employment, training or education in Scotland.
Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)
5. What assessment he has made of the effect of the autumn statement on levels of poverty in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The Government took action at the autumn statement to build a stronger and more balanced economy. As a result, more than £500 million has been added to the existing Scottish budget by the UK Government, which provides the Scottish Government with additional resources in these uncertain times.
Cathy Jamieson
I thank the Minister for that answer. Does he agree that one of the most important ways of tackling poverty is ensuring full employment? Does he therefore share my concern that Mahle Engine Systems in my constituency seems set to remove jobs from an area hit by high unemployment, taking those jobs out of Scotland and out of the UK?
David Mundell
I would be very disappointed if that were the case. I know that the hon. Lady is a doughty campaigner for employment in her constituency. We must continue to stress the benefits of employers remaining in Scotland, which is why the current constitutional uncertainty is so damaging.
Mr Jim Hood (Lanark and Hamilton East) (Lab)
On Monday, when 700 of my constituents employed by WJ Harte Construction returned to work, they were told that the company had gone into administration, without any consultation whatsoever. I am told that Scottish Enterprise and the trade unions were not even aware of this. The MSP was not aware of it, and the MP certainly was not. The company was taken over by a venture capitalist more than two years ago, when it had a turnover of £100 million. It has now been run into the ground and the executives have run away with the money. Will the Minister meet me to discuss what we can do to save as many of these 700 jobs as possible? This is a disgraceful situation.
David Mundell
Obviously, as a fellow south Lanarkshire MP I am very disappointed to hear what the hon. Gentleman has to relate, and I should be very pleased to meet him to ensure that employment continues to be secured in south Lanarkshire.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
6. What discussions he has had with the Secretary of State for Work and Pensions on the work capability assessment in Scotland.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
My right hon. Friend the Secretary of State and I are in regular contact with Ministers from the Department for Work and Pensions on a range of issues concerning welfare reform. We also recently met Professor Malcolm Harrington to discuss his second review of the work capability assessment.
Tom Greatrex
I thank the Minister for that answer. I am sure he will be aware of a report published today by Citizens Advice entitled “Right First Time?”, which examines the high level of incorrect and inaccurate decisions made in the work capability assessment. Given the amount of money that Atos Healthcare receives from the public purse for undertaking these assessments, is it not now time for the Government to consider the report’s recommendation that financial penalties be imposed on Atos for a number of those incorrect assessments? [Interruption.]
David Mundell
This was one of the issues that the Secretary of State and I discussed with Professor Harrington, and as he prepares his further report, this is inevitably one of the issues he will address. [Interruption.]
Mr Speaker
Order. There are far too many noisy private conversations taking place in the Chamber. I would like to hear Dame Anne Begg.
Dame Anne Begg (Aberdeen South) (Lab)
Now that the move from incapacity benefit to employment and support allowance is well under way, anecdotally, it would appear that Atos is finding it very difficult to carry out the necessary work capability assessments, so there could be extra delays. Will the Minister please engage with his fellow Ministers in the DWP to make sure that Atos can deliver on the contract?
David Mundell
I can certainly assure the hon. Lady that I will pass on her concerns to the Department.
John Mann (Bassetlaw) (Lab)
12. What comparative assessment he has made of the level of subsidy from the public purse for postal, transport and health services in Scotland and the north of England.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
Health and large aspects of transport are devolved areas, and it is for the Parliament in Scotland to decide how to allocate its budget. The Government have provided an annual subsidy to Post Office Ltd of £150 million for the last financial year and £180 million for this financial year. The subsidy is not distributed by country or region.
David Mundell
I absolutely agree that the debate on the independence of Scotland should be based on facts and on the issues. That is why we need to move on from the process and get on with the referendum.
Andrew Percy (Brigg and Goole) (Con)
The question of the referendum on Scotland is not a matter just for the Scottish Government or for the Scottish people. How and when will my constituents in England be consulted on this important matter?
David Mundell
My hon. Friend’s constituents have the opportunity to be represented on these issues through him in this House.