Debate on the Address

Lord Bruce of Bennachie Excerpts

Wednesday 4th June 2014 Commons Chamber

[Sir Malcolm Bruce (Gordon) (LD)]

Unlike the hon. Member for Hackney South and Shoreditch (Meg Hillier), I welcome this Queen’s Speech, which contains some very constructive measures, but we need to recognise the mountain that we have been climbing and continue to have to climb. The economy collapsed by more than 7% in 2009, and we inherited a public sector deficit that was bigger in percentage terms than that of Greece. Lord knows that Government Members have had to take some very tough and difficult decisions at a time when our trading partners have also been trapped in recession, which has made it even more difficult to get the economy growing again.

Now that we can, at last, see strong sustainable growth across all sectors, it is to be hoped that from this year on, people will at least begin to feel the benefits of recovery. Having gone through such a long period with no growth, we know that getting growth going again does not happen overnight; it will take time for many people. As a Liberal Democrat, I would stress that this is a coalition Government and that Liberal Democrats have shaped many of the key reformist policies. If we do not say this, nobody else will, but it is important for people to understand how coalition works.

The Queen’s Speech pledged to deliver a stronger economy and a fairer society, enabling everyone to get on in life. It is a Liberal Democrat mantra that the Queen uttered this morning—although I do not know whether she realised that—and it has underpinned our approach to government. I want to give the lie to the idea that the Government’s key achievements could or would have been secured without the Liberal Democrats. I want to make it clear that this is a coalition, in which we share the responsibility, the decisions and the policies.

The fact is that many of the things that have happened would not have happened without the Liberal Democrats. Let me explain what I mean. First, there seems to be a theory out there that the coalition was not even necessary, but there is a real likelihood that, had we not entered the coalition in 2010, there would have been a run on the pound, a great deal of market uncertainty, and a sharp rise in interest rates.

[Mr David Lammy (Tottenham) (Lab)]

I do not know whether I misheard the right hon. Gentleman. Did he really suggest that there would have been a run on the pound had the Liberal Democrats not been part of the coalition?

[Sir Malcolm Bruce]

What I said was that had there not been a coalition delivering stability in Government, there would have been a run on the pound, or it is likely that there would have been a run on the pound, and there would have been a sharp rise in interest rates—and as the only coalition possibility was the one that actually happened, yes, I am saying that had we not entered the coalition, that would have been a real risk.

There is also a presumption that, a short time after the 2010 election, there would have been, or might have been, a second election, which might have produced a similarly indecisive result because the economy had been seen to deteriorate even more, but which, in some people’s opinion, would have produced a Conservative majority Government. I can only say that if that had happened, we should have heard a very different Queen’s Speech from the one that was delivered today. For instance, I do not believe that the Government would have delivered the raising of the tax threshold to £10,000 this year, and the further increase to £10,500 next year. That was not in the Conservative manifesto, and the Prime Minister said that it could not be done, but it has been done, because we were there fighting for it. It has been popular, and of course Conservatives want to be associated with it, but it was and is our policy. It will cut income tax for 24 million people by £800 annually from next year, and it has taken 2 million people out of tax altogether.

If there had been a Conservative majority, we would certainly not have introduced the latest round of the most radical reforms of our state and private pension arrangements since the days of Lloyd George, who, as some Members may recall, was a Liberal. Our pensions Minister, my hon. Friend the Member for Thornbury and Yate (Steve Webb), has secured a legacy as a great reformer. He is probably the best informed, best qualified pensions Minister that the country has ever had, and I believe that the measures he has introduced will serve as the foundation for both public and private sector pensions for decades to come.

Those two measures in themselves represent huge and positive reforms that have happened only because Liberal Democrats have been in government, but Liberal Democrat Ministers have also been the driving force behind the growth of apprenticeships, and we are on target to achieve 2 million by the end of the current Parliament. Liberal Democrats, led by the Deputy Prime Minister, have secured extra child care support, free school meals for every infant, and targeted support for disadvantaged pupils. Those measures have made a significant difference to families and others living in deprived circumstances, and are having, or beginning to have, a qualitative effect on the outcome of education.

Liberal Democrats have led the way towards a reform of the electricity market which, unlike the measures proposed by the Opposition, would keep the lights on, keep bills down and promote green energy. Liberal Democrat Ministers have secured a commitment to zero-carbon homes and to international agreement on climate change. Numerous other Liberal Democrat measures pepper the Queen’s Speech, including restrictions on plastic bags, support for garden cities, protection for pub landlords, a definition of child cruelty through a Cinderella clause, tough powers to tackle female genital mutilation, and legislation for the recall of Members of Parliament. None of those measures would have been in the Queen’s Speech if Liberal Democrats had not been in the coalition.

There are other parts of the speech which I warmly welcome, too. As I represent a constituency in the north-east of Scotland, I welcome the fact that maximising North sea resources is committed to in the Queen’s Speech, as is implementing the proposals of the Wood review, which the Government—indeed, the Liberal Democrat Energy Secretary—commissioned and which was supported by the Prime Minister. This will be achieved first through co-ordination between the Government and industry and also by maintaining a tax regime that encourages development. I hope the Government can simplify the tax regime over time, because it is becoming complicated. That is serving to unlock investment but it is also making it very difficult for businesses to assess that against international comparators. We also need to stimulate exploration, which is essential for future development.

I should say in passing that the industry has a concern. It will support this co-operation between Government and industry to maximise returns and to co-ordinate the use of infrastructure, but the regulator that is required to achieve that could be costly and it believes that if there is shared co-operation the costs should be shared, not imposed entirely on the industry. However, this calculation has, in the end, to be made: whatever is done has to enable the industry to make the investment that will ensure we get the maximum returns in the long run.

I also welcome the implementing of new financial powers for the Scottish Parliament. It is the essential next step in devolution. The right hon. Member for Wokingham (Mr Redwood) has left the Chamber, but he was right to say that if—or when, as I believe—Scotland votes to stay in the United Kingdom, the further transfer of powers to Scotland and what is happening in Wales and Northern Ireland will lead to a demand for devolution within England. I recognise that that is a matter for English MPs, but I personally think it would be a welcome development, leading to decentralisation and more localism.

This is the reality in Scotland: the coalition Government had to tackle the recession and the hole in the finances and had to take all the tough decisions, whereas all the Scottish Government had to do was spend the block grant, but they have done that while hurling abuse at all the difficult measures which, frankly, any Government would have to take, and while having no responsibility for those decisions. Giving the Scottish Parliament the responsibility to raise its own revenue and not just spend the block grant will increase transparency and accountability.

[Mr David Davis (Haltemprice and Howden) (Con)]

Does my right hon. Friend agree that had we given the Scottish Parliament those powers of full control in raising and spending revenue at the time of the 1998 Scotland Act—this point was made back then—we would have reduced the demand for independence?

[Sir Malcolm Bruce]

I do agree. I would not say “full” in this context, because in a quasi-federal system each tier in Government needs to have access to its own tax base, but I agree that if the Scottish Parliament could have accessed most of its own revenue and resources, that would, indeed, have been the case. I think it would also have led to a more adult debate in Scotland about how priorities are determined. It is very easy for MPs in the Scottish Parliament to attack the difficult decisions involved in dealing with the deficit, as they have no responsibility for making those decisions.

[Mr MacNeil]

Does the right hon. Gentleman agree that one of the most important reasons for the Scottish Parliament having full control over its tax revenues through, hopefully, independence is that that will enable it to grow the economy? The laudable aims of making Parliament more transparent and politicians more responsible is all well and good, but the most important thing for people in the street is that the economy grows, and we can do that through independence.

[Sir Malcolm Bruce]

The hon. Gentleman will know that I am not going to go down the route to independence. I believe the Scottish Parliament has got substantial powers and, frankly, I believe that the Scottish Government would have served the Scottish people better if they had spent more time using those powers and less time promoting the case for independence. They even let their current tax-raising powers lapse: they did not want to use them as it might have been a bit unpopular or they might have been accountable for that. I do not accept the hon. Gentleman’s argument because what independence does, of course, is raise barriers to the very means of growing the economy. My argument is, yes, we should have access to taxes that help fund the Scottish Parliament, but that we should contribute to, and share in, the whole of the United Kingdom.

If I may, I will pay tribute to someone. Just in the past week, a great champion of Scotland’s role in the UK, Maitland Mackie, died—I am going to his funeral on Friday. People might have heard of him, as he was famous for Mackie’s ice cream and was a great pillar of the Scottish agricultural community. One of his uncles was a Liberal Democrat MP and another was a Labour MP. Maitland Mackie was committed to the view that Scotland would thrive provided it had control over its own affairs domestically but shared in the full benefits of the Union; as he pointed out, 80% of his ice cream is sold south of the border, and he did not wish to undermine that. I pay tribute to him, because he was a very fine example of Scottish enterprise and success—

[Mr McCann]

Unlike Scottish Enterprise.

[Sir Malcolm Bruce]

He was a former chairman of Grampian Enterprise Ltd, but he recognised that that enterprising Scottish business flourished better inside the UK.

[Mr MacNeil]

The right hon. Gentleman makes an interesting point about selling ice cream; he is trying to give the impression that if Scotland were independent it would sell less ice cream outwith its borders. I ask him this: where is most Guinness sold? It is not sold in the Republic of Ireland; it is sold worldwide. The idea that borders would stop that trade is nonsense, and he knows it.

[Sir Malcolm Bruce]

I do not know that, because I do not know what the currency transactions would be—because we have not got an answer on that from the Scottish Government. The problem is that all the uncertainties—the potential barriers and the potential changes—will have an effect. Like Maitland Mackie, many others in the food industry who are doing business in England daily are overwhelmingly concerned that independence will damage their market and are privately saying that they do not want to see Scotland vote yes in September.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Does the right hon. Gentleman agree that the thing that finally swung the Quebec independence campaign referendum was the fact that the rest of Canada made it very clear that it wanted Quebec to stay within the union? Does he agree that we can throw all the facts and figures we like at the Scottish people but if we could get it across to them that they are actually wanted by the rest of the United Kingdom, that would do more good?

[Sir Malcolm Bruce]

It is a simple statement as far as I am concerned and the better way to put it is that if the United Kingdom breaks up, we are all diminished: Scotland is diminished; Wales, Northern Ireland and England are diminished; and everything we stand for together is diminished. It is as simple as that. When all the ins and outs—the costs and the figures—are taken into account, the reality cannot be measured just in money. We will all be diminished, and our influence and standing in the world will be diminished.

[Mr MacNeil]

On that point—

[Sir Malcolm Bruce]

No, I am not going to accept another intervention. I say to the hon. Gentleman that on the doorsteps—this is not about slogans—people are increasingly telling me, in very simple terms, “You know what, we are better together.” I believe that will be the prevailing argument.

In my role as Chairman of the International Development Committee, I wish to say that I share pride in our achievement of 0.7% of gross national income being spent on official development assistance. When I say “our achievement” I mean the achievement of this Parliament, across parties; it could only have been achieved because all parties supported it. I welcome the fact that we have achieved it and that the Queen’s Speech specifically sets out a commitment to improve the humanitarian situation in Syria. On the information that my Committee and I have—we will be publishing a report in a few weeks’ time—UK support has been crucial to being able to provide access and support to people in distress which other countries have not stepped up to the plate to deliver. We should recognise that this country has every reason to be proud of that.

I also welcome the explicit commitment in the Queen’s Speech to preventing sexual violence in conflict worldwide. We have all seen too many horrors recently, in the Democratic Republic of the Congo, Nigeria, Pakistan, India and Afghanistan to name but a few, of the appalling ways in which women are treated: how they are valued—how they are undervalued; how they are denied access to education; how they are abducted; and how they are murdered. This is an intolerable situation. The UK alone cannot prevent those things from happening, but as the world’s second largest bilateral donor and an internationally acknowledged force for good we can provide leadership that can make a difference. I welcome the fact that that is explicitly set out in the Queen’s Speech, and I hope that Members on both sides of the House can unite behind that.

I conclude by saying that I believe that, for the last Session of this Parliament, with only 10 months to run, this is an excellent Queen’s Speech containing a lot of very substantial and worthwhile measures. It is substantially a Liberal Democrat Queen’s Speech and for that reason I am very happy to commend it to the House.