Oral Answers to Questions

Iain Stewart Excerpts

Wednesday 27th January 2021 Commons Chamber

[Gary Sambrook (Birmingham, Northfield) (Con)]

What discussions he has had with Cabinet colleagues on the opportunities for Scotland arising from the signing of trade deals with other countries.

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

We regularly discuss opportunities for Scotland arising from the signing of trade deals. This Government have already struck deals worth £217 billion a year with more than 63 countries around the world, including Canada, Japan and Singapore, and with many more to come. This will create new markets for Scotland’s exporters.

[Gary Sambrook]

For the first time in my life, we will be in control of our trade policy, which will allow us to strike ambitious trade deals, allowing us to level up all of our United Kingdom. Does the Minister agree that this will help to benefit exporters, particularly in the Scottish food and drink industries, who will be able to take advantage of new markets?

[Iain Stewart]

I fully agree with my hon. Friend. The new free trade agreements we strike, such as those we are currently negotiating with the US, Australia and New Zealand, on top of the ones we have already done, will grow our GDP, increase our trade with the rest of the world and create new opportunities for our exporters. This is particularly true for the Scottish food and drink sector.

[Ian Murray (Edinburgh South) (Lab) [V]]

Today is Holocaust Memorial Day, as we have heard, and we should use this day to remember the horrors of the holocaust by lighting a candle in our windows at 8 pm tonight, as the Holocaust Memorial Day Trust has asked us to do. I am sure that the Secretary of State will join us in that. Also, I wonder if I may just wish my fellow shadow Scotland Minister, my hon. Friend the Member for Ogmore (Chris Elmore), all the best, as his wife is due to have a baby in the next seven days.

One of the jewels in the crown of the Scottish economy is the Scotch whisky industry, and distillers are deeply angry that they continue to pay the price for a trade dispute with the United States that is not of their making. They are losing £30 million a month in trade with the imposition of tariffs, and that is on top of the collapse of their markets due to covid. No progress has been made, so can the Minister guarantee that the Government are fully singing from the same hymn sheet to end tariffs on Scotch whisky?

[Iain Stewart]

First, may I associate myself with the hon. Gentleman’s remarks on the holocaust?

On whisky, I absolutely agree with the hon. Gentleman that this is a vital industry for Scotland’s economy and the tariffs are hurting. Britain unilaterally made a bold and generous offer to the US to try to break its impasse with the EU. Unfortunately, we were not able to secure a deal with President Trump before he left office, but I spoke to my right hon. Friend the Secretary of State for International Trade yesterday, and she reassured me that it will be her top priority in engaging with the new Biden Administration.

[Ian Murray]

The UK has taken all the tariffs off US products but there are still tariffs on Scottish products, so I hope they are able to resolve this soon. Of course, trade deals with other countries will not make up for what we have lost by leaving the EU. Day after day, we see chaos at our ports, exporters being overwhelmed by paperwork and, as a result, Scottish businesses being damaged. This Government’s lack of planning and no provision for services, matched with growing bureaucracy at our borders, is severely hampering our industries. The Prime Minister said on Christmas eve that the EU Brexit deal would mean

“no non-tariff barriers to trade”.

That is demonstrably false. Will the Minister take this opportunity to apologise to Scottish exporters, who are completely hampered by the very non-tariff barriers to trade that the Prime Minister said would not exist? What are the Government doing to resolve these issues today?

[Iain Stewart]

First, on the US point, there was an impasse with the EU, and we decided it was the right move to make a unilateral offer to try to break that impasse. I hope the new Biden Administration will engage positively with us on that.

Secondly, I do not think it is fair to paint a picture of chaos and tailbacks at the ports. The traffic is flowing freely at most ports. There have been some short-term issues with paperwork, and any new system has some short-term bumps, but we are engaging directly with the exporters affected. We are providing compensation, where necessary, and what we need is some confidence across all sectors.

[Mr Toby Perkins (Chesterfield) (Lab)]

What recent discussions he has had with Scottish Ministers on the covid-19 vaccination programme in Scotland.

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

I was sorry to hear that the hon. Gentleman had contracted coronavirus at Christmas, and I hope he is making a full and speedy recovery.

I and other UK Government Ministers are in frequent contact with Scottish Ministers on all aspects of the response to covid, including the vaccination programme. The virus will be combated most effectively by the UK Government and all the devolved Administrations working together as closely as possible.

[Mr Perkins [V]]

I thank the Minister for his kind words, and I assure him that I am in rude health.

The Minister will be aware that Scotland’s over-80s population has been left more vulnerable than those in England due to far fewer being vaccinated. If the rate of over-80s vaccination in Scotland were equivalent to that in England, 28,875 of the most elderly people in Scotland would now have been vaccinated. What steps can the Minister take to ensure that the Scottish Government get on with protecting the most vulnerable?

[Iain Stewart]

I am delighted that the hon. Gentleman is very much on the path to recovery. As my right hon. Friend the Secretary of State said a few moments ago, the supply of vaccines is done equitably across all parts of the UK, but the administration is a matter for the Scottish Government. We have already provided many practical measures to help combat covid in Scotland, and we stand ready to supply any additional help that the Scottish Government may require.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

What discussions he has had with (a) Cabinet colleagues and (b) industry leaders on the effect of the UK-EU trade and co-operation agreement on Scottish exports.

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

We regularly speak to ministerial colleagues and industry leaders on this matter. We are beginning a new chapter in our national story, one of great opportunity. This is an unparalleled chance for us to do things differently and better, increasing businesses’ access to new markets and boosting our national prosperity.

[Martyn Day [V]]

Scottish exporters need clarity and certainty on how long it will take the UK Government to resolve the calamitous situation that has been created at the UK-EU border, so my question to the Minister is: has anyone in the Scotland Office worked out how long a piece of string is yet?

[Iain Stewart]

I repeat to the hon. Gentleman the reply I gave a few moments ago: we are engaging directly and providing very practical support to exporters who have encountered some short-term difficulties as they adjust to the new system. In the case of the fish and seafood sector, we have provided them with compensation for any losses that they encountered.

[Chris Elmore (Ogmore) (Lab) [V]]

The Minister will be fully aware of the chaos that Scottish fishing exports have been thrown into over the past few weeks because of his Government’s broken promises on Brexit to the industry. I understand he has already said that the Department has announced an injection of funding for the hardest hit, but this is about timing and reputation as well, so how is he working with potential buyers of these world-class fishing exports to promote the sector? How is he ensuring that extra support reaches those hardest hit as quickly as possible, given the absolute devastation that these businesses have faced in this year so far?

[Iain Stewart]

First, may I wish the hon. Gentleman and his family every success and good fortune in the arrival of the new addition to their family?

As I have said, we are providing very practical support. This is not affecting the whole industry. The industry faces many challenges at the moment, not least the loss of some of its markets because top-end restaurants, at home and abroad, are having to close because of covid. In addition to that short-term compensation, we are providing a £100 million fund to grow and boost the capacity of our seafood sector. We have not broken promises to it. We were taking back control of our waters. We are out of the common fisheries policy and British fishermen will land more stocks year on year.

[Kirsten Oswald (East Renfrewshire) (SNP) [V]]

The EU is still our closest and most important trading partner, but Scottish businesses are suffering because of this disastrous Brexit we did not vote for, and the inability and unwillingness of the Minister’s Government to effectively use the transition period. Will he now push for the grace period that businesses are urgently calling for? If not, why not? What is his answer to them?

[Iain Stewart]

As I have said repeatedly, we are engaging with all sectors to help them prepare for this transition. I respectfully point out to the hon. Lady that she voted for a no-deal Brexit, and she and her fellow separatists want to impose additional trade barriers within Britain.

[Rachael Maskell (York Central) (Lab/Co-op)]

What assessment his Department has made of the effect of the UK-EU trade and co-operation agreement on the Scottish economy.

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

We have agreed a deal with the EU that fully delivers for Scotland and the rest of the UK. Our deal provides Scottish businesses with exceptional access to the EU’s market: it is the first time the EU has ever agreed a zero-tariffs, zero-quota deal. But of course we also now have the freedom to strike new deals with the fastest-growing parts of the global economy.

[Rachael Maskell [V]]

But almost one in six jobs in Scotland is based in the financial and business services sector, which is dependent on the UK Government negotiating a trade in services agreement with the EU, having failed to do so before the end of last year. What progress have the Secretary of State and his Cabinet colleagues made since leaving the transition arrangements in this area? What further steps is he taking to ensure that these jobs are secure for the future?

[Iain Stewart]

Alongside the agreement, we agreed a joint declaration on regulatory co-operation in the area of financial services. The parties will codify that in a memorandum of understanding by March.

[Angela Richardson (Guildford) (Con)]

What discussions he has had with Cabinet colleagues on the opportunities for Scotland arising from COP26.

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

I have frequent discussions with colleagues about the opportunities that COP26 offers for Scotland and the whole of the UK. The Government are committed to delivering an all-UK COP26 event in Glasgow. This will bring significant economic benefits to the community in Glasgow and those across Britain.

[Angela Richardson [V]]

My constituents in Guildford take a keen interest in environmental concerns and, along with me, are delighted that Glasgow is hosting COP26 this year. Does my hon. Friend agree that we are better placed to tackle climate change as a strong Union of nations?

[Iain Stewart]

My hon. Friend is absolutely right. I should also point out that it is disgraceful that, while we will be showcasing our global leadership on climate change and the world’s gaze will be on Glasgow, the SNP would rather be pitting community against community in another divisive referendum.

The Prime Minister was asked—