Oral Answers to Questions

Debate between Kirsty Blackman and John Bercow

Tuesday 14th March 2017 Commons Chamber

[Mr Speaker]

I call Martin Docherty-Hughes. I am sad to note the rather uncharacteristic absence of the hon. Gentleman. We will do our best to bear up with such fortitude as we can muster.

[Kirsty Blackman (Aberdeen North) (SNP)]

A number of small businesses in the oil and gas sector supply chain have been hit disproportionately by the oil price reduction. My hon. Friend the Member for Aberdeen South (Callum McCaig) and I held a meeting last week to encourage young businesses to access different methods of capital financing so that they can grow. What are the UK Government doing to encourage such businesses to access capital finance?

Companies Documentation (Transgender Persons)

Debate between Kirsty Blackman and John Bercow

1st reading: House of Commons & 2nd reading: House of Commons
Wednesday 1st March 2017 Commons Chamber

[Kirsty Blackman (Aberdeen North) (SNP)]

On a point of order, Mr Speaker. The next item on the agenda is Second and Third Reading of the Supply and Appropriation (Anticipation and Adjustments) Bill. Standing Order No. 56 states that we shall not have a debate and that both Questions will be put forthwith. The Bill says that we will spend £254,713,662,000, but we will be agreeing to it without any debate or scrutiny. We have had the estimates days, but on those days we are not supposed to talk about the estimates and the budget lines provided. Will you give me some guidance, Mr Speaker? At what stage is this House able to scrutinise properly the departmental estimates that come before it, and is there any place in which we can do so adequately?

[Mr Speaker]

I am very grateful to the hon. Lady for her point of order. Now is not the occasion for me to dilate on the procedure for such matters. I can tell her that her hon. Friend sitting immediately behind her, the hon. Member for Glasgow North (Patrick Grady), is very familiar with this procedure; he is certainly very familiar with his own discontent with it, upon which he briefly expatiated earlier in the week.

The way in which we treat of these matters is based on decisions that the House has made, and on the relationship between the House as a collective entity on the one hand, and our Committees on the other. If the hon. Lady is dissatisfied with the procedure—she has every right to be—that is a matter she should properly pursue through the appropriate channels in the House. For example, she could legitimately raise her concern with the Procedure Committee. My responsibility as the occupant of the Chair is to give effect to the procedure that is extant and has been approved by the House. If she wishes to change it, she can seek to do so, and if it were changed, I would operate the changed procedure. I think we had better leave it there for today.

Supply and Appropriation (Anticipation and Adjustments) Bill

Motion made, and Question put forthwith (Standing Order No. 56), That the Bill be now read a Second time.

Question agreed to.

Bill accordingly read a Second time.

Question put forthwith, That the Bill be now read the Third time.

Question agreed to.

Bill accordingly read the Third time and passed.

House of Lords Reform and Size of the House of Commons

Debate between Kirsty Blackman and John Bercow

Wednesday 19th October 2016 Commons Chamber

[Kirsty Blackman]

Will the Minister—

[Mr Speaker]

Order. I am not entirely clear whether the Deputy Leader of the House concluded his oration or whether he was giving way.

[Mr Speaker]

Very well, but it is very unusual. I do not think the word exists to “unconclude” one’s speech, but if it possible to do so, the hon. Gentleman has done it. Let us hear the hon. Lady’s intervention.

[Kirsty Blackman]

Thank you very much, Mr Speaker.

The Conservative party manifesto said that the Conservatives would

“address issues such as the size of the House of Lords”.

Why does the Minister think that the electorate thought that was less important than some of the other things in the manifesto? How can he get into the heads of the electorate? This was front and centre of the manifesto.

Finance Bill

Debate between Kirsty Blackman and John Bercow

Monday 5th September 2016 Commons Chamber

[Kirsty Blackman (Aberdeen North) (SNP)]

I beg to move, That the clause be read a Second time.

[Mr Speaker]

With this it will be convenient to discuss the following:

New clause 10—Review of the operation of the Patent Box—

“(1) The Chancellor of the Exchequer shall, within six months of the passing of this Act, lay an independent report of the value for money provided by, and the efficacy of, the Patent Box legislation before both Houses of Parliament.

(2) The report shall—

(a) assess the size and nature of the companies taking advantage of the Patent Box legislation;

(b) assess the impact of the Patent Box legislation on research and innovation in the UK, including supporting evidence; and

(c) assess the cost effectiveness of the Patent Box legislation in incentivising research and development compared to other policy options.”

New clause 11—Assessment of taxation regime for securitisation companies—

“The Chancellor of the Exchequer shall, within six months of the passing of this Act, commission an independent assessment of the efficacy of the taxation regime to which securitisation companies are subject and lay the assessment before both Houses of Parliament.”

Amendment 177, page 87, line 6, leave out clause 44.

Amendment 162, page 87, line 8, ‘leave out clause 45.

Government amendments 152, 153, 1 to 29, 154, 31, 155, 33 to 59, 156, 61 to 113, 157, 115 to 117, 158, 159, 119 to 128, 160, 129 to 131.

[Kirsty Blackman]

I rise to speak to new clause 5, which is in my name and the names of my hon. Friends, but I wish briefly to mention amendment 162, which has been proposed by the Labour party. I look forward to hearing from its Front-Bench Members. If they intend to push the amendment to a vote, we will join them in the Lobby.

New clause 5 is about the corporation tax treatment of the oil and gas industry. The House will not be surprised to hear me speaking on this subject as I have done so a number of times. What we want is a comprehensive review of the corporation tax rates and investment tax allowances applicable to companies producing oil and gas in the UK, or on the UK continental shelf. This is a timeous ask from us for a number of reasons. For a start, this Bill implements measures that were put in place and discussed first in February and March, before the EU vote, and there have not been any substantive changes by the Government to the Bill as a result of the Brexit vote.

Substantive changes to the Bill are needed because we find ourselves in a completely different situation as a result of the fall-out from Brexit. It is unfortunate that changes have not been made and that there have not been more announcements from the Government about how they intend to manage the financial situation going forward. We want to know about the impact on Aberdeen, which I represent, and on the UK’s tax take and the Treasury. It is important that we seriously consider making changes to the Bill.

We have repeatedly asked for changes to the tax rates and for a comprehensive strategic review. We appreciate that the Government made changes earlier this year, but we do not think they go far enough. Alex Kemp, a renowned petroleum economist, and his long-term research partner, Linda Stephen, are both at Aberdeen University, where they have been working on sophisticated modelling tools. If the Minister has not read the article that appears in Energy Voice today, it is worth reading, together with the report that accompanies it. The work that they have done suggests that corporation tax of 30% is too high, and it is far above the non-North sea rate. They said:

“From the analysis of the economics of new field investments and exploration in current circumstances in the UKCS it is clear that, at $50 and $60 prices, there are many ‘marginal project investment situations’.”

That is key. It is what we have been arguing, and now it is backed up by renowned experts.

The position in which the industry finds itself bears repeating. Estimates vary, but we have lost around 125,000 jobs—from 425,000 we are down to about 300,000. That implies a huge reduction in the tax take for the Treasury and it is a massive hit for the local area, particularly Aberdeen and across Scotland and other oil and gas-producing areas. Because of the reduction in the oil price, we have seen changes in the behaviour of companies. As well as making people redundant, they have changed shift patterns and terms and conditions. They have also managed to reduce production costs, which is a good thing.

Finance (No. 2) Bill

Debate between Kirsty Blackman and John Bercow

Carry-over motion: House of Commons
Monday 11th April 2016 Commons Chamber

[Kirsty Blackman (Aberdeen North) (SNP)]

It is a pleasure to speak in this Second Reading debate. I am delighted that you are back in the Chair, Mr Speaker, not least because I have written “Mr Speaker” throughout my speech and I get totally confused if a Deputy Speaker is in the Chair.

[Mr Speaker]

It is good to know that one has one’s uses.

[Kirsty Blackman]

I am sure that they are many and varied, Mr Speaker.

As a relative newbie to Parliament, I am fascinated by the fact that this House manages to have incredibly complicated and incredibly cumbersome processes and hoops to jump through in order to get legislation through, while at the same time managing to ensure that those processes are entirely opaque and provide the general public with the smallest possible amount of useful information.

I want to speak about a number of things: oil and gas—you will not be in any way surprised by that, Mr Speaker; the travel and subsistence changes, for those in rural areas in particular; and the savings changes, which the hon. Member for Leeds West (Rachel Reeves) mentioned. The UK Government are attempting to undertake a savings swizz. This is not a Budget for hard-working people and young people at all. Increasing the level of tax-free savings will help only those who can afford to save thousands of pounds every year. Most hard-working people will not be helped by this. Just because somebody earns a high income, it does not necessarily mean that they are hard-working. A lot of hard-working people earn pretty low incomes.

Folk who are earning the Chancellor’s pretendy living wage, which is not recognised as being enough to live on, struggle to make it to the end of the month, let alone to have spare money to save for the future. The help to save scheme included in the Budget is welcome, but folk working the minimum 16 hours a week on the pretendy living wage will be earning only £500 a month, and they are hardly likely to be able to spend 10% of that income on savings rather than on immediate concerns.

The tax measures in this Finance Bill disproportionately reward unearned income, and they continue to ensure that tax avoidance is not illegal—only immoral. Many of my constituents find themselves living from pay cheque to pay cheque, and they cannot imagine having the comfort enjoyed by those with six-figure salaries, large savings and stocks and shares—in much the same way, I presume, as those in charge of the Finance Bill have no idea what is like to exist on a low income with a lack of long-term financial security and the absolute necessity of reliance on the state. Some people are unable to have a cache in the bank to fall back on. Rather than all being in this together, too many Members of this House cannot comprehend the real world that most of my constituents live in, and they could do with being given a reality check before they are allowed to make tax policy. The changes to ISAs and the uplift are hardly useful to anyone. As Opposition Members have said, ISAs disproportionately benefit those earning above £150,000 a year. That is not helpful for hard-working, low-income families or for young people.

I am delighted that repetition is encouraged in this place, because I am going to talk once again about oil and gas. That is quite useful, because I can recycle this speech fairly regularly—[Interruption.] Yes, I am also recycling the speech made by my hon. Friend the Member for Aberdeen South (Callum McCaig). Oil and gas are vital for Aberdeen and for Scotland as a whole. Some of the measures in the Finance Bill go a little way towards easing the situation for oil and gas companies in the current economic climate. Nobody quite knows when the oil price is going to go back up, or what level it will reach when it finally does so. Oil prices are completely unpredictable. The UK Government need to show that they are committed to the future of the industry in the North sea in order to ensure investor confidence.

There is positive movement in the reduction of the supplementary charge from 20% to 10%, but oil and gas companies will still pay significantly more than most companies. The oil and gas industry is vital to Scotland, particularly to the north-east of Scotland and my city of Aberdeen. Back in 2014, Sir Ian Wood published the Wood report. The Energy Bill, which is currently in ping-pong and will be discussed again ben the hoose, tomorrow, cements the position of the Oil and Gas Authority in legislation. The principal objective of the OGA, which arose from the Wood report, is to maximise the economic recovery of UK offshore oil and gas resources. That can only happen if the UK Government seriously consider the tax regime for companies extracting oil and gas in the UK continental shelf.

The tax regime has been built up over the last half century, with measures being added and taken away as the Government of the day make changes to the decisions of Governments past—or, in some cases, to their own decisions. Now that the UKCS can be considered a mature basin—in fact, some are calling it super-mature—I suggest that now is the time to look afresh at the fiscal measures in relation to the taxation of the oil and gas industry. Until the UK Government can commit to doing so, some issues need to be looked at as a matter of urgency. If we are doing only minor overhauls, rather than a major overhaul, these are the key issues for us.

Enhanced oil recovery is mentioned in the OGA corporate plan for 2016 to 2021. The OGA intends to issue an enhanced oil recovery strategy to the industry in the first half of this year. If the UK Government took action so that the activity of enhanced oil recovery could count towards a tax allowance to offset against income, rather than count as operational expenditure, I suggest that the OGA’s strategy could easily be more ambitious, but still achievable. Enhanced oil recovery is very important for the UKCS given its super-mature situation. We really need to work in different and new ways to get out the oil, which is much more difficult and costly, so we would benefit from a fresh look at the tax regime in relation to how that spend is considered.

Finally on specific issues relating to the offshore oil and gas industry, I welcome the fact that HMRC will produce updated guidance notes on the decommissioning allowance. It is very important, particularly for new entrants to the industry, to have the ability to take on such assets in the North sea and exploit them for a longer period than a big player perhaps would, so I am really pleased that that is coming in. On decommissioning terms, we suggested during the passage of the Energy Bill that tax incentives and allowances should be put in place in relation to decommissioning in the UK, so that as much as possible takes place in the UK and benefits UK companies. It is really important that the UK becomes very good at decommissioning, because we can then export that expertise. I would very much appreciate it if the Government considered incentivising UK spend in whatever ways are possible. We will talk about that during the next stage of the Finance Bill.

To move on from oil and gas to a more general point, I want to flag up issues about the Government’s proposal on the taxation of travel provided for those paid through intermediaries. There is no question but that this change will hit rural communities disproportionately. It is perfectly legitimate and sometimes incredibly sensible to pay individuals as contractors or through intermediaries, but I suggest that the Government have not really thought this one through or have not grasped quite how rural some of these communities are. It can absolutely be necessary for people doing work in rural areas to stay overnight to fulfil a task that can in no way be done as part of a daily commute. I understand what the Government are trying to do on daily commutes, but that does not apply in such situations. For example, on some islands off the coast of Scotland, a locum doctor or relief teacher has to stay because there is no regular transport. Surely they should receive tax relief on their hotel stays: it is not a daily commute, but a necessary part of the job, particularly if they cannot possibly get home because there is no boat.

For communities such as Shetland in particular, where there is heavy reliance on oil and gas companies, that may have a significant negative impact. Due to the level of expertise and specialisation in oil and gas, many people in the industry are employed as contractors—disproportionately so—and removing the tax allowance that workers can claim when they stay overnight in Shetland on the way to a rig would be a bizarre way to support either the oil and gas industry or small rural communities. A specific case could be argued for our rural communities, many of which are not diverse in their employment, and such a change may have a significant and disproportionate negative impact on them.

The SNP is concerned both about the future of the oil and gas industry and about the fate of contractors in rural communities. When we go into Committee, we will table new clauses and amendments. The Chancellor has claimed that he is going to listen and learn. We will test him on that claim.

Finance Bill

Debate between Kirsty Blackman and John Bercow

Monday 26th October 2015 Commons Chamber

[Mr Speaker]

So be it; the House will understand. It is not a matter for the Chair; I am simply playing fair. It is a matter for the Government, and the Minister could speak now if he wished, but he is not under any obligation to do so. The point of order has been heard. The hon. Member for Hayes and Harlington (John McDonnell) will be in his place tomorrow—and so will the Chancellor be—and we will await the development of events.

[Kirsty Blackman (Aberdeen North) (SNP)]

Further to that point of order, Mr Speaker. Given the result of the vote in the other place tonight, I would appreciate it if, in addition to Treasury questions tomorrow, the Prime Minister could assure the House that he will not flood the other place with more cronies and donors.

[Mr Speaker]

Perhaps I can just say to the hon. Lady and the House that, while I hear what she has to say, the late Lord Whitelaw was the author of a vintage phrase in British politics. As he put it, “I tend to prefer to cross bridges only when I come to them.” It seemed to be a very sagacious utterance by Lord Whitelaw. All I will say to the House now—as much for the benefit of those outside this place as of Members—is this. Two sentences: first, the parent Act specifies that the Government cannot make the regulations unless a draft has been approved by both Houses. I think we can all agree upon that. Secondly, it is up to the Government to decide how to proceed. We will leave it there for now.

Third Reading

Oral Answers to Questions

Debate between Kirsty Blackman and John Bercow

Thursday 17th September 2015 Commons Chamber

[Mr Speaker]

On oil and gas—Kirsty Blackman, perhaps? It is not compulsory.

[Kirsty Blackman (Aberdeen North) (SNP)]

I tabled question 17.

[Mr Speaker]

Indeed, but this is a similar question. The hon. Lady can come in now if she wishes.

[Kirsty Blackman (Aberdeen North) (SNP)]

17. Thank you, Mr Speaker. I am sorry; I was slightly thrown.I would appreciate it very much if the Minister would tell us what action the Government are taking to ensure that decommissioning is delayed for as long as possible. A total of 375,000 people are employed in the industry, directly and indirectly, and many of them are based in my city of Aberdeen.

Points of Order

Debate between Kirsty Blackman and John Bercow

Monday 6th July 2015 Commons Chamber

[Mr Speaker]

The hon. Gentleman is an experienced enough denizen of this House to know that sometimes when one objection is removed, others manifest themselves. It does not automatically follow that what he wants and has long hankered after will happen, but it might. Knowing him as I do, I have a feeling that he will be campaigning to ensure that it does.

[Kirsty Blackman (Aberdeen North) (SNP)]

On a point of order, Mr Speaker. On 13 June I submitted a written question to the Leader of the House about English votes on English laws, asking which Bills would affect England only and which would affect England and Wales only. Today I have received the response. Included in the list of England and Wales only Bills is the Scotland Bill. [Laughter.] Yes, that was much the response that I gave. I would appreciate it if the matter could be looked into and the correct response provided.

[Mr Speaker]

I am grateful to the hon. Lady, who has put her point on the record and fully entertained her right hon. and hon. Friends in this early part of the day. It is not a matter for the Chair, but might I suggest that the hon. Lady could be keen to elaborate upon that point in tomorrow’s debate? If she were minded to say, “But Mr Speaker, I have already made the point”, I would say to her that repetition is not a novel phenomenon in the House of Commons.