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Debate between David Mundell and Alistair Carmichael

Wednesday 13th December 2023 Westminster Hall

[Mr Carmichael]

This is not known and not admitted, Mr Mundell. [Laughter.]

[David Mundell (in the Chair)]

Plea noted.

Scotch whisky: US tariffs

Debate between David Mundell and Alistair Carmichael

Thursday 30th January 2020 Westminster Hall

[David Mundell]

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

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

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

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

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

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

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

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

[David Mundell]

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

[Mr Carmichael]

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

[David Mundell]

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

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

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

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

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

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

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

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

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

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

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

Oral Answers to Questions

Debate between David Mundell and Alistair Carmichael

Wednesday 24th July 2019 Commons Chamber

[David Mundell]

It is well known that there would be a multibillion-pound funding gap in the event of Scottish independence that could only be dealt with by significant tax rises or cuts in services. Those who propose independence have still not answered the question on where that money is to be found.

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

A no-deal Brexit will be catastrophic for Scotland’s hill farmers, especially those looking to export sheepmeat to the European Union. That is not just my view but the view of the National Farmers Union Scotland and the NFU across the four parts of the United Kingdom. Can the Secretary of State give me and them some assurance that he will not just sit in Cabinet and watch their livelihoods destroyed?

[David Mundell]

I have been very clear throughout my time in Cabinet about the importance of agriculture to Scotland and the needs of Scotland’s agriculture industry, and I will continue to be so.

Oral Answers to Questions

Debate between David Mundell and Alistair Carmichael

Wednesday 19th June 2019 Commons Chamber

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

5. What recent discussions he has had with the Secretary of State for Environment, Food and Rural Affairs on the Fisheries Bill.

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

I continue to work closely with colleagues on the Fisheries Bill, which will allow us to manage our fisheries sustainably and deliver on our promise to take back control of our waters. It will allow us to decide who may fish in our waters and on what terms as we become an independent coastal state.

[Mr Carmichael]

The last time that I asked the Secretary of State about the Fisheries Bill, he deflected the question by saying that

“we will see what happens when the Bill returns on Report.”—[Official Report, 16 January 2019; Vol. 652, c. 1152.]

That was five months ago, and we have still not had the Fisheries Bill on Report. When are we going to get it?

[David Mundell]

I am sure that the right hon. Gentleman will not be surprised to hear me say that it will be in due course.

Oral Answers to Questions

Debate between David Mundell and Alistair Carmichael

Wednesday 16th January 2019 Commons Chamber

[David Mundell]

If that is the hon. Gentleman’s view, he should have voted for the Prime Minister’s deal last night.

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

If the Government’s commitment to ending the CFP on 31 December next year is sincere, why do they continue to resist amendments to put that date in the Fisheries Bill?

[David Mundell]

I do not think that the right hon. Gentleman, a former colleague, will find that that is an accurate interpretation of the Government’s position. Colleagues such as my hon. Friend the Member for Banff and Buchan (David Duguid) have argued strongly for that case, and we will see what happens when the Bill returns on Report.

Oral Answers to Questions

Debate between David Mundell and Alistair Carmichael

Wednesday 28th November 2018 Commons Chamber

[Mr Speaker]

Order. There is quite a lot of noise in the Chamber, but I want to be able to hear the ordinarily distinctive burr of the right hon. Member for Orkney and Shetland (Mr Carmichael).

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

Why did the Government ever think it would be a good idea to include fisheries in the transitional arrangements?

[David Mundell]

As the right hon. Gentleman knows, the transitional arrangements will involve a period in which things will remain as they are, in order to provide certainty, but there is a clear mechanism for fishing to leave those transitional arrangements and to be part of the Fisheries Council in December 2020, to plan ahead for 2021.

Oral Answers to Questions

Debate between David Mundell and Alistair Carmichael

Wednesday 11th July 2018 Commons Chamber

[David Mundell]

Mr Speaker, you have asked me to be brief, so I will refer my hon. Friend to the Scottish Fishermen’s Federation document “Sea of Opportunity”.

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

I do not know what the Secretary of State plans to be doing at 7 o’clock this evening, but I shall be here, along with the Immigration Minister, for the end-of-day Adjournment debate on the subject of visas for non-EEA nationals in the fishing industry. If he could fix that and get the industry the labour that it needs between now and 7 pm, we could both probably think of something else to be doing.

[David Mundell]

I am afraid that I cannot meet the right hon. Gentleman’s timescale but, like him and others, I wish England well in their game this evening. On the substantive issue that he raises, I would be very happy to speak to him directly ahead of my meeting with the Home Secretary.

Oral Answers to Questions

Debate between David Mundell and Alistair Carmichael

Wednesday 7th March 2018 Commons Chamber

[David Mundell]

I certainly agree with my hon. Friend that talk of a second independence referendum is unwelcome and unnecessary. We have reached the point in the negotiations where we all need to come together and work with the Prime Minister to get the best possible deal for Scotland and the whole of the United Kingdom.

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

What progress is being made on ensuring that Scotland’s food producers will still have the protection that they need for important geographic brands such as Orkney beef or Shetland lamb after we have left the European Union?

[David Mundell]

I can assure the right hon. Gentleman that, despite scare stories to the contrary that have appeared in some parts of the media, there will be no change to the protection of those brands or an allowing in of false brands purporting to be them.

Oral Answers to Questions

Debate between David Mundell and Alistair Carmichael

Wednesday 6th December 2017 Commons Chamber

[David Mundell]

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

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

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

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

[David Mundell]

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

Oral Answers to Questions

Debate between David Mundell and Alistair Carmichael

Wednesday 19th July 2017 Commons Chamber

[David Mundell]

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

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

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

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

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

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

[Mr Carmichael]

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

[David Mundell]

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

Oral Answers to Questions

Debate between David Mundell and Alistair Carmichael

Wednesday 18th January 2017 Commons Chamber

[David Mundell]

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

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

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

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

[David Mundell]

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

Oral Answers to Questions

Debate between David Mundell and Alistair Carmichael

Wednesday 12th October 2016 Commons Chamber

[David Mundell]

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

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

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

[David Mundell]

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

Oral Answers to Questions

Debate between David Mundell and Alistair Carmichael

Wednesday 6th July 2016 Commons Chamber

[David Mundell]

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

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

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

Oral Answers to Questions

Debate between David Mundell and Alistair Carmichael

Wednesday 11th May 2016 Commons Chamber

[David Mundell]

I thank my hon. Friend. I must get my son elected more often, because there have been more plaudits today than I recall at previous Scottish questions.

We will of course move forward with the implementation of the Scotland Act, but we will also work hard to achieve a positive outcome for Scotland in the EU referendum on 23 June.

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

Does the Secretary of State agree that the already high support in Scotland for remaining in the European Union could be improved further still if Scottish farmers could be confident that they will get their CAP payments when they are supposed to?

[David Mundell]

The right hon. Gentleman raises an important point. The reason CAP payments have not been made to Scottish farmers is entirely due to the previous SNP Scottish Government. Any attempt to suggest that it is down to the EU is incorrect. Farmers and others know the benefits to Scotland of being in the EU and will vote to remain.

Oral Answers to Questions

Debate between David Mundell and Alistair Carmichael

Wednesday 15th July 2015 Commons Chamber

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

Niall Stuart, the chief executive of Scottish Renewables, says of this decision that it is

“bad for jobs, bad for investment and can only hinder Scotland and the UK’s efforts to meet binding climate change targets”.

Why does the Secretary of State think he knows better than Niall Stuart?

[David Mundell]

I certainly think I know better than the Liberal Democrats, who have been complicit in covering Scotland with wind farm developments. It is clear that ours is a popular policy among communities right across Scotland who do not want to see our landscape covered with unnecessary wind farm developments. I stand behind our policy.

Scotland Bill

Debate between David Mundell and Alistair Carmichael

Monday 15th June 2015 Commons Chamber

[David Mundell]

I said that I would reflect on a number of the issues raised by the right hon. Member for Orkney and Shetland (Mr Carmichael) relating to proposals by the Law Society of Scotland. Among those is the debate on the wording currently in part 1, and we will certainly look at that.

I do not accept amendments 58 and 59 because they refer to the term “constitution” whereas clause 1 refers to the term “constitutional arrangements”. The term “constitutional arrangements” is used to reflect the fact that the United Kingdom does not have a written constitution. That is a well-established constitutional arrangement of which a Scottish Parliament is a crucial and enduring part.

In new clause 2, the hon. Member for Edinburgh South (Ian Murray) proposes a constitutional convention. I have said at this Dispatch Box previously that I, and this Government, do not support a constitutional convention for reasons that have been well rehearsed, not least because—on this one matter I am in agreement with the Scottish National party—it would slow down the progress of this Bill, which I am committed to taking through Parliament as quickly as possible.

Other matters have been raised and we have debated them fully but they do not fully relate to the Bill. On that basis, I propose that we move to vote on the amendments.

[Mr Alistair Carmichael]

I am mindful of the fact that we have spent a considerable amount of time on this group of amendments, so I will not detain the Committee for long at this stage.

We have had a very good debate; in fact, two very good debates. On the first, there is among the three Opposition parties a broad measure of consensus that the Bill is capable of improvement. I will hold the Secretary of State to his word when he says that he will take that away and look at it. I remind him that while he might win a majority quite easily in this House, the Bill will also be scrutinised in the other place. I urge on him further consideration and suggest that the proposals brought forward by me and others tonight—I do not intend to press mine to a vote, but others who choose to do so will have my support—are reasonable.

I was very disappointed by the Secretary of State’s response on the constitutional convention. Ultimately, if we are to continue with this Union, a federal structure is inevitable. That will have to be grasped sooner or later, and the way in which that will be done is through the calling of a constitutional convention.

There has not been the same level of consensus on our other debate about the proposals for full fiscal autonomy. It has not been a particularly good debate: it has been characterised more by the heat it has generated than the light. Like the hon. Member for Edinburgh East (Tommy Sheppard), I favour the idea of evidence-based policy. I am not without sympathy for those on the SNP Front Bench when they say that they could do things differently with the extra powers that would be given to them. However, to simply say that it could all be done by generating extra economic growth is not good enough.

--- Later in debate ---

[David Mundell]

I am happy to respond to the points made and to restate, as I did on the previous group, that I will be meeting the Scottish Parliament’s Devolution (Further Powers) Committee next week, which will be an opportunity to explore some of the issues it raised in its report.

The Government’s starting point is that the Smith commission’s intention was not that the current constitutional position should be changed. Instead, the commission’s intention was that legislation should accurately reflect the political understanding of the convention, and that is exactly what I see the clause as doing.

Currently, the Government do not normally legislate in devolved areas without the consent of the Scottish Parliament. Clause 2 sets out that practice. In doing so, it puts on a statutory footing a convention that has been consistently adhered to by successive United Kingdom Governments. I understand the desire to put beyond doubt that we will seek the consent of the Scottish Parliament when legislating on devolved matters. However, in effect, amendment 56 seeks to limit the sovereignty of this Parliament by removing the word “normally” to state that the Parliament of the United Kingdom cannot legislate with regard to devolved matters without the consent of the Scottish Parliament.

In reality, the amendment would directly contradict section 28(7) of the Scotland Act 1998, which states that the section, which relates to Acts of the Scottish Parliament,

“does not affect the power of the Parliament of the United Kingdom to make laws for Scotland.”

The amendment would radically alter the way in which the practice was intended to operate as envisaged by Lord Sewel.

[Mr Alistair Carmichael]

The Secretary of State is making a compelling case for codification. On a number of occasions and in different ways, the House has limited its sovereignty, particularly in relation to the European Communities Act 1972. As I recall, there is judicial authority on that from the Factortame case. Surely he accepts that the mere act of putting a convention on a statutory footing is a change. For that reason, the adherence to the word “normally” is not appropriate.

[David Mundell]

It is not a change to how things are normally done, but a change to how they are set out on the face of legislation. As part of the Smith process, it was clear that people wanted the convention set out in the Bill, but I do not accept that they want a change to the convention as envisaged by Lord Sewel.

Oral Answers to Questions

Debate between David Mundell and Alistair Carmichael

Wednesday 10th June 2015 Commons Chamber

[David Mundell]

I absolutely agree with my hon. Friend that businesses right across the United Kingdom benefit from the continuance of our United Kingdom. This Government’s commitment particularly to the Scotch whisky industry is evidenced in the last Budget, which was warmly welcomed by the Scotch Whisky Association.

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

First, I thank the Secretary of State for his fine words in relation to the passing of Charles Kennedy and of course associate myself and my party with them.

The Secretary of State will have seen at the weekend reports indicating that the Chancellor of the Exchequer intends to use next month’s Budget to start increasing fuel duty again. As the economic recovery starts to take hold, does the Secretary of State understand the very serious impact that that could have on the economies of rural Scotland, and will he use his office to argue against such a move?

[David Mundell]

The right hon. Gentleman should be wary of newspaper reports. Let us hear what is said in the Budget. The Chancellor has made no clear statement of any intention to increase fuel duty.