Oral Answers to Questions

Iain Stewart Excerpts

Wednesday 2nd February 2022 Commons Chamber

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

2. What progress his Department has made on implementing growth deals in Scotland.

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

The Moray full deal and the Falkirk heads of terms were signed in December. We now have nine deals in implementation and three in negotiation covering all of Scotland. The Government have committed over £1.5 billion for the deal programme in Scotland.

[John Lamont]

I am sure that the Minister is aware of the Scottish Government’s strategic transport review, and no doubt he will share my disappointment at the very lukewarm support for the extension of the Borders railway to Hawick, Newcastleton and on to Carlisle. Does he agree that this Government should show their full support for the project and tell us when the feasibility study for the Borders railway extension will be started?

[Iain Stewart]

I absolutely share my hon. Friend’s disappointment. When we signed the Borderlands growth deal, I was determined that the feasibility study for reopening the full Borders line should be in there. I am keen to see that work starting as soon as possible, and we will soon respond to the Union connectivity review, which also references that line. This is a classic example of where the Scottish Government should stop obsessing and spending their time, resources and money on yet more independence preparations and instead deliver on projects that really matter to the people of Scotland.

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

The Borderlands region will see £20 million less investment in its city region deal from the UK Government than from the Scottish Government. Why is that?

[Iain Stewart]

If the hon. Lady looks at the full package of investment that is going into the Borderlands deal, she will see that this Government are full square behind that area. It really is disappointing that it comes down to this petty point scoring when the whole point of the city region and growth deal is that all parts of government—local, Scottish and UK—work together on delivering the priorities that are determined by local people.

[John Stevenson (Carlisle) (Con)]

Talking about the Borderlands growth initiative and the growth deal, does the Minister agree that it is extremely important and beneficial to the whole region, and that Carlisle has become the regional capital of parts not just of England, but of Scotland? Does he also agree that south Scotland recognises the importance of Carlisle’s economic performance to the whole region? Does he further agree that that helps to support the Union?

[Iain Stewart]

I absolutely agree that the Borderlands growth deal is unique in that it straddles the border. The economic footprint of the region is incredibly important. Last year I held a meeting in Carlisle with local authority leaders and other stakeholders to discuss not just the growth deal, but how it can be the starting point for a proper economic partnership that straddles the border and delivers for my hon. Friend and his neighbouring constituencies.

[Stephen Kinnock (Aberavon) (Lab)]

3. What recent steps his Department has taken to help strengthen the Union.

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[Cherilyn Mackrory (Truro and Falmouth) (Con)]

8. What steps the Government are taking to support coastal communities in Scotland.

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

Communities across Scotland have benefited and will continue to benefit from our focus on levelling up. Particularly for coastal communities we are investing a further £100 million over the next three years for transformative seafood projects that will help to rejuvenate our coastal communities.

[Jacob Young]

The petrochemical and oil and gas industries are vital to coastal communities across our United Kingdom, in Teesside and in Scotland. Will the Minister confirm that this Government are committed to supporting our petchem sector and further oil and gas exploration in the North sea, which will inevitably help us achieve net zero, not hinder it?

[Iain Stewart]

Yes, I can. The Government are committed to delivering a North sea transition deal, which will be a global exemplar of how a Government can work with the offshore oil and gas industry in partnership to achieve a managed energy transition. This deal between the UK Government and the oil and gas industry will support workers, businesses and the supply chain through this transition by harnessing the industry’s existing capabilities, infrastructure and private investment potential.

[Cherilyn Mackrory]

This Government’s multimillion-pound investment in the fishing industry will benefit coastal communities right across the UK, from Cornwall to Scotland. Does my hon. Friend agree that only by boosting coastal communities and spreading opportunity to every corner of our country can we succeed in our mission to improve the lives of everybody in our great nation?

[Iain Stewart]

Indeed I do. The Government have gone well beyond their manifesto commitment to replace European Union funding, by investing an additional £100 million over the next three years for these transformative seafood projects that will rejuvenate the industry and our coastal communities. Levelling up is about helping communities across the UK, and that means building back better, spreading opportunity, improving public services and helping to restore and celebrate pride in our coastal communities.

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

The world-leading European Marine Energy Centre in Stromness was developed as a consequence of access to EU Interreg funding, money to which we no longer have access. Does the Minister agree that the UK’s shared prosperity fund should be the source of replacement funding for organisations such as EMEC that no longer have access to Interreg funding? What is the Scotland Office doing to make that case within government?

[Iain Stewart]

I had the pleasure of visiting Stromness last summer, when I saw for myself the huge potential that Orkney has to lead the country in renewable energy. I continue to speak to the leader of Orkney Islands Council to explore all the ways in which we can help to fund these exciting projects.

[Douglas Chapman (Dunfermline and West Fife) (SNP)]

Many coastal communities, including in my constituency, benefit from improved coastal shipping. What actions has the Secretary of State taken to assist in introducing a direct ferry service from Scotland to critically important export markets in Europe?

[Iain Stewart]

I was pleased to reply to a debate that the hon. Gentleman and other colleagues spoke in a couple of weeks ago on exploring the potential for restoring the Rosyth to Zeebrugge link, which, for commercial reasons, ceased operating a few years ago. There are lots of potentials for reopening that. It is primarily a matter for the Scottish Government, but I am happy to work with him and his colleagues to explore all these opportunities.

[Liz Twist (Blaydon) (Lab)]

The ScotWind allocation announced last week has the opportunity to create thousands of jobs in Scotland. The reality is that in its time in office the Scottish National party has created lots of highly-skilled jobs, but they are not in Scotland—they are in China, Poland, Portugal and elsewhere. The Scottish Government failed to put in place sufficient demands for local procurement as part of awarding the contract; it is particularly disappointing for coastal communities, who can see offshore wind turbines being installed but cannot see the jobs. What discussion has the Minister had with the Scottish Government about ensuring that the supply chain for ScotWind creates jobs in Scotland and across the UK?

[Iain Stewart]

I agree with the basic point the hon. Lady is making. Referring back to the answer I gave the right hon. Member for Orkney and Shetland (Mr Carmichael), may I say that if we look at renewable energy as a whole, we see that there are enormous opportunities to develop that technology in Scotland, through our contracts for difference round, which is as big as all the other rounds put together? Huge investment is going in, in offshore wind and in tidal, and I will continue to explore every avenue to make sure that this country is able to secure the lion’s share of that industrial capacity.

[Suzanne Webb (Stourbridge) (Con)]

6. What assessment he has made of the potential economic benefits to Scotland of the Levelling Up Fund.

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[Grahame Morris (Easington) (Lab)]

7. What steps he is taking to improve transport links between Scotland and the north-east of England to promote economic growth.

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

The Union connectivity review recognised the importance of the A1 and recommended that the UK Government should seek to work with the Scottish Government to develop an assessment of the east coast road and rail corridor. The Government will respond to the UCR and publish that response in due course.

[Grahame Morris]

On the day that the levelling-up agenda has been published, will the Secretary of State tell the House what steps he is taking to devolve powers and finance to the northern regions, so that we can strengthen ties with the Holyrood Government independently of Westminster, so increasing rail capacity, trade and opportunities for business?

[Iain Stewart]

I know how passionate the hon. Gentleman is about transport matters as I had the pleasure of serving with him on the Select Committee on Transport for a number of years. If he reads through the levelling-up White Paper, which came out today—I appreciate that it is quite a weighty tome, so he might not have had a chance to digest it all yet—he will see in that the measures to which he is referring. We can encourage better connectivity between the different economic centres of the UK. I would be absolutely delighted to see a strengthening of that corridor between Scotland and the north-east of England.

[Ben Everitt (Milton Keynes North) (Con)]

9. What discussions he has had with Cabinet colleagues on defence investment in Scotland.

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[Alyn Smith (Stirling) (SNP)]

10. What discussions he has had with Cabinet colleagues on the potential effect of the rise in the cost of living on people in Scotland.

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

This Government have consistently said that the best way to support people’s living standards is through good work, better skills and higher wages. Our plan for jobs is working, the economy is growing and unemployment is low. The national living wage, the universal credit taper and allowance changes are putting more money in people’s pockets.

[Alyn Smith]

The UK energy market is demonstrably broken. Surely that is of concern to all of us in all parts of the House. I am particularly concerned about rural energy prices and disparities between urban and rural areas. Competition law and energy law are reserved to this place. Will the Minister support my call for an investigation into uncompetitive energy practices? If he will not, would he care to come to the city of Stirling and explain to the people of Stirling and Scotland how the UK energy market is working for them?

[Iain Stewart]

First, let me welcome the city of culture bid by the hon. Gentleman’s home city. I am always happy to visit Stirling—in fact, I believe that I am coming up to visit in the next couple of weeks. I am very happy to meet him to discuss the measures to which he refers, but energy prices are rising globally. That is a consequence of the coronavirus restrictions easing and demand coming back, together with other geopolitical factors, so I would put the points that he raises in that global context.