Oral Answers to Questions

Debate between Drew Hendry and David Gauke

Tuesday 6th March 2018 Commons Chamber

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

19. I would be delighted to do so. Thank you very much, Mr Speaker.As the Prime Minister has made a number of concessions with regard to the European Court of Justice after Brexit and given that the Scottish Government’s legal continuity Bill provides that, when exercising devolved jurisdiction, Scottish courts may have regard to the decisions of the ECJ, is it not time to amend clause 6 of the European Union (Withdrawal) Bill to the same effect?

[Mr Gauke]

On clause 6 and this question more widely, let us be clear: we are leaving the EU, so the jurisdiction of the ECJ will end, but EU law and the decisions of the ECJ will continue to affect us. For a start, the ECJ determines whether agreements the EU has struck are legal under the EU’s own law. If, as part of our future partnership, Parliament passes an identical law to an EU law, it makes sense for our courts to look at the appropriate ECJ judgments, so that we interpret those laws consistently. We have to remember, however, that our Parliament will remain ultimately sovereign. It could decide not to accept such rules, but there would be consequences for our membership of the relevant agencies and linked market access rights.

Oral Answers to Questions

Debate between Drew Hendry and David Gauke

Tuesday 23rd January 2018 Commons Chamber

[Mr Gauke]

First, I thank the hon. Gentleman for his words. It is pleasing to know that, wherever I go, he follows.

Regarding the hon. Gentleman’s question, we are ambitious—we want to get the best deal. I appreciate that, in the course of negotiations, it is possible that our interlocutors will express an adverse opinion, but we will continue to engage and to be ambitious.

[Drew Hendry]

The Secretary of State has acknowledged Scotland’s distinct legal and judicial system. The role of Lord Advocate in overseeing the investigation and prosecution of crime means that, in Scotland, there is direct co-operation between Scottish law enforcement agencies and their European counterparts. Will the Minister give details of the consultations between his Department, and the Scottish Government and Scottish Law Officers in that regard?

[Mr Gauke]

We continue to engage with the Scottish Government across the board, including on that implementation matter.

Universal Credit Project Assessment Reviews

Debate between Drew Hendry and David Gauke

Tuesday 5th December 2017 Commons Chamber

[Mr Gauke]

I am grateful to my hon. Friend for highlighting the experience in her constituency. Members of Parliament have a role in ensuring that people are aware of the advances system and the support that is available. That is the responsible role for us to play, instead of trying to scare people with concerns that do not necessarily materialise.

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

Since 2013—as leader of the Highland Council and then as an MP—I have been reporting the difficulties of rent arrears. Rent arrears with the Highland Council are now approaching £2 million, and a number of people have been put directly into rent arrears due to universal credit. We have invited the Secretary of State to come to Inverness to hear about this directly. In the light of what he said, will he now come to the highlands and hear about the experiences of rent arrears since 2013?

[Mr Gauke]

Let me assure the House that I visit many parts of the country to see how universal credit is operating. The response I get back, which is consistent with the comments of my hon. Friend the Member for Bury St Edmunds (Jo Churchill), is that it is working on the ground, providing more support to people, and giving jobcentres better tools with which to help people into work.

Work, Health and Disability

Debate between Drew Hendry and David Gauke

Thursday 30th November 2017 Commons Chamber

[Mr Gauke]

My hon. Friend is absolutely right, and I come back to the point about the need for a culture shift. The Government have an important role to play in making the case for that, and I am determined that we will do so.

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

The timely payment of PIP is an important support for disabled people, whether they are in work or not. My constituent Margaret has had two strokes, and she had to make a 70-mile round trip for a PIP assessment with her daughter, who had taken a day off work. Her meeting was cancelled on the day she turned up, despite the fact that she had received written confirmation, and there was no record on the DWP system. Will the Secretary of State investigate the growing problem of PIP appointments being cancelled because of a lack of resources, and the impact that it has on disabled people in the highlands and elsewhere?

Universal Credit

Debate between Drew Hendry and David Gauke

Thursday 23rd November 2017 Commons Chamber

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

I thank the Secretary of State for advance sight of his statement. I suppose we should be grateful that, in making these changes, the Chancellor and the DWP have accepted that universal credit is failing, but this was not the robust and comprehensive response it should have been. Universal credit should be halted and fixed. The response does nothing to address the structural failings, the delays and errors, the arrears by default, the evictions and the misery they are causing. The reduction in the six-week wait is welcome, but five weeks is still too long—and let us not forget that many people wait far longer than that.

I was disappointed by the Secretary of State’s earlier answer. The Scottish Government are allowing people to receive payments fortnightly, taking account of and showing respect for working people on universal credit and those on zero-hours contacts paid weekly or fortnightly. Will the Government reconsider the freeze on benefits? As the Resolution Foundation has pointed out, work does not pay for people on universal credit, because, with the consumer prices index so high, working claimants lose money, which creates disincentives. Will he also look into the number of DWP cancelled personal independence payment assessments? Finally, at no cost to the Treasury, will the Government reinstate the third-party consent and legacy benefits removed by universal credit for people in difficulty, especially the disabled, cancer patients and the terminally ill?

[Mr Gauke]

On the last point, people can get explicit consent—they just need to get the consent. On the delays and moving to fortnightly payments, I am aware that the Scottish Government have taken a different approach, but they are doing so by ensuring that the second payment, at the end of the second assessment period, is half what it would be in England and Wales, deferring it and then paying it a fortnight later. If the Scottish Government are happy with that and want to defend it to the Scottish people, they are welcome to do so, but it seems a strange way to deliver the benefit. On the public finances, we fought the 2015 general election with a commitment to find savings in the welfare budget, and we will deliver those savings.

Oral Answers to Questions

Debate between Drew Hendry and David Gauke

Tuesday 1st March 2016 Commons Chamber

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

T4. Figures from the Public and Commercial Services Union show that 2,000 HMRC staff in Scotland face redundancy, including 150 experienced and dedicated people in Inverness. At the same time, the HMRC overtime bill is about £6 million a month. Can the Chancellor explain to my constituents how that makes any sense at all?

[Mr Gauke]

HMRC is engaged in changes that will be focused on 13 regional centres across the United Kingdom. The same proportion of its work force will continue to be in Scotland, which is actually a larger percentage than the population of Scotland. We are seeking to improve the efficiency of HMRC, and we believe that regional centres will enable it to achieve more for less. It is already bringing in more money and a better rate of return than we have ever had before.

Air Passenger Duty: Regional Airports

Debate between Drew Hendry and David Gauke

Tuesday 20th October 2015 Westminster Hall

[Mr Gauke]

My right hon. Friend is absolutely right, particularly in the context of a debate secured by my hon. Friend the Member for Solihull, to refer to the progress that we want to make in the west midlands, which is very much a priority area as well. I was going to touch on that. The case for the midlands engine set out today by my hon. Friend and my right hon. Friend the Member for Meriden is important.

I turn to English regional airports; I know they have expressed concerns that air passenger duty devolution will impact negatively on their business. The Government appreciate those concerns. Regional airports play an important role as local employers and enable the transport of people and products nationally and internationally. That improves connectivity, increases trade and helps to create new jobs. Consequently, the Government are undertaking a review of how to support regional airports in respect of such impacts. That is why the Prime Minister stated earlier this year:

“We are not going to accept a situation where there’s unfair tax competition…We will do what’s necessary to make sure that England’s regional airports can succeed.”

[Drew Hendry]

Does the Minister agree with the points made around the Chamber earlier about the fact that, whether someone is in a regional airport in Scotland or England, the economic growth that can be generated by changing the tax regime to encourage trade will enable all the regions to become more successful? They are not necessarily a threat to each other.

[Mr Gauke]

The Government have made significant progress on the devolution of taxes generally. The hon. Gentleman will be aware of the announcement made by the Chancellor of the Exchequer on the retention of business rates, for example. I know that business rates are already devolved in Scotland, but allowing English local authorities to retain business rates is an example whereby through aligning incentives, as it were, we can create the conditions for economic growth in every part of the United Kingdom.

I will deal with the specific points on APD in a moment, but first let me address the issue of the regional airports review, because, as part of that review, the Government published a discussion paper at the summer Budget this year. The paper explored three potential options for supporting regional airports affected by devolution: the first was devolving APD to regions within England; the second was varying APD rates within England; and the third was providing aid to regional airports.

The paper explored how the options could work and highlighted key points for consideration. The period for feedback on the options is now closed. We received a large number of responses and would like to thank all interested parties for their valuable responses to that consultation. We are carefully considering the views and evidence that we have received. We appreciate that the aviation industry values stability and certainty in the UK tax system and we will respond to the views expressed on the options in the discussion paper in due course. The response will set out how the Government wish to take the matter forward.

--- Later in debate ---

[Mr Gauke]

Our rates are higher than those in many other countries; I am not disputing that. I am arguing that we are not convinced that abolition of APD would pay for itself. Presumably the Scottish Government are also not convinced, because they have not brought forward proposals to abolish APD. It may be an aspiration for the long term—when finances allow—but that does suggest that there would be a loss of revenue.

The hon. Member for Central Ayrshire referred to the experience of Prestwick airport and the effect on tourism—a perfectly legitimate point to raise. As I said, we accept that APD rates are high on an international comparison. However, we think that APD is a very small component of a tourist’s overall spending on a trip to the UK. Some analysis done by Treasury officials over the summer suggests that depending on how long a long-haul passenger stays in the UK, APD probably makes up less than 2% of total spending on travel, hotels and subsistence, so although I accept the point, we have to put it into the context of the wider costs that may apply.

[Drew Hendry]

I am listening to the Minister’s comments about the effect on Prestwick airport. Does he accept that Prestwick, along with other regional airports whose local economies rely heavily on tourism, would be affected exponentially by additional costs for passengers? The Scottish Government’s approach—to reduce immediately and then remove APD—is likely to serve those economies better than taking no approach at all.

[Mr Gauke]

What I will say—this is the case for devolution; I suspect that the hon. Gentleman and I might agree on this—is that we shall see. We have the chance to see whether that approach has an impact on tourism levels in that area. We will be able to see that from the evidence that emerges, and that could help to inform future decisions. We have that flexibility, and the Scottish Government are able to exercise the policy that they think fit for Scotland.

--- Later in debate ---

[Mr Gauke]

If there was a dramatically different regime for new routes to and from the UK versus existing ones, there is a risk that there could be a certain gaming of the system. In order to qualify for a lower rate of APD, an operator might attempt to make a relatively minor change to a route, such as flying to a different German airport close to the original one, and thereby replace an existing route with a new one. That would do little to improve the use of, say, Birmingham International airport, as my hon. Friend seeks to do—given the remarks of my right hon. Friend the Member for Meriden, it might be unwise to try to increase the number of users to 36 million—and we would merely see a lot of churn, rather than the increase that my hon. Friend would like. On that and related ideas, we are considering all responses from interested parties to our consultation, and we will respond in due course.

[Drew Hendry]

I am grateful to the Minister for being generous with his time. I believe that he is talking quite a lot of sense on the difficulties with APD holidays, but does he agree that what we need is flexibility over route development? In other words, we need not only starter routes but more frequency on those routes. Indeed, perhaps we need public service obligations to guarantee those routes, which would allow them to bed in, to become established and to reach critical mass.

[Mr Gauke]

The hon. Gentleman, who is his party’s Front-Bench spokesman on transport matters, raises an important point, but I question whether APD is the correct way of achieving the objective that he seeks. In the context of APD, there are some challenges, and the gaming of the system is one risk.

Having welcomed the hon. Member for Salford and Eccles, I must point out that her shadow Treasury colleague the hon. Member for Wolverhampton South West (Rob Marris), the shadow Financial Secretary to the Treasury, told the House on 29 June:

“I would increase the rate of APD.”—[Official Report, 29 June 2015; Vol. 597, c. 1275.]

To be fair, that was before he was appointed to the shadow Front-Bench team. I do not know whether that is the Labour party’s position. I will leave that question hanging.