18 Mark Lazarowicz debates involving the Scotland Office

Scottish Separation

Mark Lazarowicz Excerpts
Tuesday 10th July 2012

(12 years ago)

Westminster Hall
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Graeme Morrice Portrait Graeme Morrice
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In terms of setting interest rates and so on. The Chancellor still has a role in that regard —a role that a separate Scottish Government in an independent Scotland would not have. There would be no accountability, no influence and no say in that, and the UK Government have confirmed that officially.

Whichever way one looks at the matter, the SNP’s policy of retaining the pound sterling as a separate currency for Scotland is a proposal engulfed by uncertainty. At the same time, the SNP insists that a separate Scotland would be entitled to automatic membership of the European Union—a position that is in serious doubt, as highlighted by last year’s well documented Library standard note on “Scotland, independence and the EU”, which states:

“There is no precedent for a devolved part of an EU member state becoming independent and having to determine its membership of the EU as a separate entity, and the question has given rise to widely different views.”

Mark Lazarowicz Portrait Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
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Even assuming good will on both sides of the argument for an independent Scotland trying to renegotiate terms with the EU—I do not believe that there is any reason to assume hostility from other EU member states—the fact is that the EU is not, to put it kindly, the swiftest-moving institution. Is it not likely that even with the best will in the world the new arrangements would take a long time—years—to finalise, yet again leading to the continued uncertainty about which we heard earlier?

Graeme Morrice Portrait Graeme Morrice
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I certainly agree with that proposition. Going back to the 1992 general election campaign, I recall that the SNP talked about independence within Europe. I note that it is not banging on about that now.

For the sake of argument, let us assume, although it is unlikely, that a separate Scotland would be permitted to join the EU immediately. We know with some certainty that such a position would require Scotland to commit to joining the euro at some point in the future, taking the nationalists back to the same risky and unpopular position that they have tried desperately to abandon. Again, it seems to be beyond doubt that the unknown risks posed by breaking up Britain are significant and that the uncertainty about which currency the country would use could not possibly be good for business or families in a separate Scotland.

I have tried to focus on a few of the numerous essential economic consequences of separation. I could have looked at many others, including whether the tax base of a separate Scotland could sustain a separate Scottish economy and what personal and business taxation rates would have to be levied, whether the Scottish Government could meet existing UK Government state and public sector pensions commitments, what the impact would be of turning our biggest trading partner into our biggest competitor, what the cost would be to our economy of losing UK Government shipbuilding contracts and what a separate Scottish Government could borrow. I am sure that other Members will want to address those and other questions in the time that remains.

I would like to go back to where I started and the wider debate on this subject. It has been fascinating to watch the twists and turns of the SNP over the past few months. It has demonstrably failed to answer a series of critical questions about the consequences of its plans to separate Scotland from the UK, despite that having been its raison d’être for more than 75 years. Those in the SNP leadership must wonder where they can go next, as they face up to the prospect of support for separation flatlining, no matter how far into the future they push the referendum.

Many in nationalist circles must also be asking themselves how their leaders have managed to squander the considerable political capital that they enjoyed just over one year ago. What remains clear is that the economic dimension to the separation debate is crucial, and there is an absolute responsibility on the UK and Scottish Governments to publish the best available information and projections of the potential economic consequences of breaking up the UK, as debate on that crucial question continues and intensifies. Ultimately, as long as economic evidence continues to show that Scottish families will be better off remaining in the UK, coupled with the wider social, cultural and political strength derived from our interdependence with the rest of the UK, Scotland’s place as an essential part of a strong United Kingdom will be secure for many years to come.

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Mark Lazarowicz Portrait Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
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I will keep my remarks as brief as possible, given the number of hon. Members who want to speak. The hon. Member for Banff and Buchan (Dr Whiteford) gave a comprehensive presentation of the SNP case for independence, but what struck me about it was something we increasingly see in the SNP arguments for independence: that on the one hand, independence is needed because it would make Scotland a better place; but on the other, independence would not change much, either. That is an inherent contradiction that we increasingly see in the SNP policy, precisely because there is a realisation that separation—full independence—is not attracting popular support, so the SNP and those supporting independence are trying to move back from it.

It is not just on economic issues that we have seen that. There is the famous quote, which I think is from the First Minister:

“on independence day…the Queen will be our Head of State, the pound will be our currency and you will still be watching your favourite programmes on the BBC.”

That is an example of how the argument is made that nothing much would change. Of course, on economic policy, fiscal policy and monetary policy, we see that even more.

Ann McKechin Portrait Ann McKechin (Glasgow North) (Lab)
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Does my hon. Friend agree that it is very strange that the First Minister came down to London about a month ago to address the Institute of Directors and intimated to it, but not to the Scottish Parliament, that he intended to align income tax rates, after separation, with those in the rest of the UK? We must ask—why bother?

Mark Lazarowicz Portrait Mark Lazarowicz
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Indeed. That takes us to a point that I intended to deal with later but will deal with now. We are referring, with respect, to the arguments advanced by the hon. Member for Banff and Buchan, who is from the SNP. She seemed to be arguing at one point that Scotland would have a different approach to taxation and redistribution policy, suggesting, presumably, that it would be a higher-tax, higher-spending type of country. On the other hand, the First Minister is saying, as my hon. Friend the Member for Glasgow North (Ann McKechin) pointed out, that income tax in an independent Scotland would be the same as in the rest of the UK. Of course, for the past six years, the SNP Government could have used the existing powers, if they had wanted to, to increase tax in Scotland and increase public spending, but they have not. The SNP is apparently in favour of a lower corporation tax rate in Scotland, yet it tells us that it would maintain the free movement of labour, services and capital throughout the UK. If that is the case, it is difficult to visualise Scotland having a separate corporation tax rate.

The issue of sterling has been—

Mike Weir Portrait Mr Weir
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Will the hon. Gentleman give way?

Mark Lazarowicz Portrait Mark Lazarowicz
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With respect, I had better not, given the time.

The issue of sterling was raised. As we were reminded in an intervention, the Bank of England and monetary policy were of course made independent of politicians by the decision of a Labour Chancellor. However, the SNP Government have said that they want to see a seat for Scotland on the Monetary Policy Committee of the Bank of England. They are trying to have it every which way. There are many areas in which we see that type of contradiction. An important one is, of course, the suggestion that the Bank of England would continue to regulate the financial services industry, even in an independent Scotland. That is incredibly important. The financial services sector is important in Scotland, particularly in my constituency and the constituencies of many other hon. Members.

Decisions such as how banks can advertise financial products and the requirements to maintain stability in terms of their capital base would be regulated by an institution in another country, over which we would have no say if we were a separate, independent state. That leaves aside the question, raised by Scottish Financial Enterprise, of whether it would be legal under EU rules to leave the regulation of our financial services sector to a foreign—as it would then be—country.

We have heard those in the SNP say that they do not want regional pay rates for the civil service, but the biggest regional pay difference across the UK would be if we were a separate country and the rates were negotiated on, presumably, a Scottish basis only. We see contradictions in many areas. Because the SNP recognises that voters and the public do not want full separation, it wants what some describe as independence-lite, but I describe as separation with a major democratic deficit, as my hon. Friend the Member for Glasgow North East (Mr Bain) pointed out.

At best, the new Scottish Government could seek to negotiate with the Government of the remaining UK to have input on matters that affect Scotland’s interests, but they could not do that as a right, and would have to rely on the good will of a new UK Government. There is no reason why there would necessarily be ill will between the two successor states if Scotland separated; but obviously, a UK Government who no longer had Scotland as part of their state would have different interests and perspectives from one that still included Scotland. Scotland has MPs, Ministers and a voice in Parliament, where Ministers and the Chancellor can be held to account—for example, for actions in relation to the Bank of England. All of that will disappear after the separation of an independent Scotland.

It seems to be the worst of all possible worlds—a democratic deficit of no interest to Scotland, with no benefit to Scotland. Let us build on what we have with devolution, as expanded under the Scotland Act 2012 and current proposals, and improve it where we can. Let us get down to using the existing powers and not spend the next few years coming up with a new constitutional arrangement which, at the end of the day, will not even be independence in the full sense of the word, but, given the SNP arguments, will fall well short of it. It would be no good for Scotland or the UK.

John Robertson Portrait John Robertson (in the Chair)
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I intend to call the Front Benchers at six minutes past 12. I have two names here, so, gentlemen, sort it out.

Scotland Bill

Mark Lazarowicz Excerpts
Thursday 26th April 2012

(12 years, 2 months ago)

Commons Chamber
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Pete Wishart Portrait Pete Wishart
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I am very grateful to the hon. Lady for her intervention. As always in these debates, she makes a colourful presence and puts her case passionately and well. I must say, however, that the Bill has been overtaken by events. Things have happened over the past year, and the one big thing that happened was the election of a majority SNP Government. Everything has changed because of that.

Mark Lazarowicz Portrait Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
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I am genuinely sorry that the hon. Gentleman is not more positive in welcoming the Bill, but his support in the voting Lobby is obviously what matters. He mentions the things that have happened over the past year. In the past day, we have heard the amazing announcement by the First Minister that he is in favour of having the same income tax levels even if Scotland were to be given independence. Is it not amazing that a party that has been struggling for independence for 90 years is now telling us that, if Scotland were to become independent, nothing much would change?

Pete Wishart Portrait Pete Wishart
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What the Scottish people are hearing is a compelling case for Scottish independence, and the question will be put to them in a couple of years. The overwhelming majority of them will endorse and support it. We look forward to having that debate over the next couple of years, because we are absolutely confident that we will secure that overwhelming majority.

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David Mundell Portrait David Mundell
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I do not disagree with the hon. Gentleman. I took part in a radio programme with a member of the Scottish National party to debate the currency, and her principal argument was not over which currency Scotland should have, but about the fact that she should have the right to choose which currency; she suggested the Chinese renminbi, but I did not think that that would go down too well with the Politburo.

Lords amendments 12 to 16 would give Scottish Ministers the power to make regulations regulating the speed of all classes of vehicle on roads in Scotland and some consequential amendments. Together with the existing provisions in clause 25, that would enable them to set a national speed limit that is different for different classes of vehicle and the power to make regulations to specify traffic signs that indicate that limit. We think that that is a sensible addition to the Bill and, as right hon. and hon. Members might know, it was promoted in the House of Lords by my noble Friend Lord Forsyth, no less.

Mark Lazarowicz Portrait Mark Lazarowicz
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These are sensible measures and I am sure that Scottish Governments of whatever political colour will use the powers sensibly. If a significant divergence was to develop between practice in England and practice in Scotland in relation to road signage and speed limits, what steps could be taken to make the necessary changes to the Highway Code, the driving test and more generally to inform drivers on both sides of the border?

David Mundell Portrait David Mundell
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It will obviously be for the Scottish Government to advise on changes to signage, among other things, that they make. Changes that are specific to Scotland can be included in the Highway Code, and we currently have differential traffic regulations in different parts of the United Kingdom. I am sure that the hon. Gentleman, like me, will have constituents who have fallen foul of the congestion charge that applies in London but nowhere else in the United Kingdom. There are differential traffic regulations in place at the moment, and these are well advertised.

Scotland (Poverty)

Mark Lazarowicz Excerpts
Wednesday 30th November 2011

(12 years, 7 months ago)

Westminster Hall
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Sandra Osborne Portrait Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)
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I am grateful for having been able to secure this debate on poverty in Scotland on 30 November, St. Andrew’s day, which is also the day of industrial action in support of public sector workers and their pensions. Nothing could be more relevant to the working people of Scotland today than highlighting the threat of the growing poverty in our nation and the attack on workers’ rights by this ideologically driven, right-wing coalition Government. As I describe the Scotland I know, the reality of poverty and the threatened growth in poverty which is facing Scotland, I hope that the Minister will reflect and respond from his perspective of Scotland—although I have my doubts that there will be a shared perspective.

We Scots are often portrayed as a bit sentimental about Scotland, especially on occasions like Burns night or St. Andrew’s day. I want to talk about the reality of poverty in Scotland today. I do not think that the Minister will want to use any notes from my speech at whatever St. Andrew’s night bash he graces this evening. The national heroes and heroines to whom I would like to pay tribute are the anti-poverty organisations such as the Child Poverty Action Group in Scotland, the Poverty Alliance, the churches and other umbrella groups, bringing together those committed to seeing a fairer, more equal Scotland. The heroes and heroines to whom I would like to pay tribute are those in the unions and the Scottish Trades Union Congress who stand up for people’s rights at work and who fight the scourge of unemployment and the attack on working conditions. That is the Scotland to which we should pay tribute today.

I would like to acknowledge the excellent work done by John Dickie, head of CPAG Scotland, particularly for producing the book “Poverty in Scotland”, which contains some relevant facts and figures to which I shall refer. How do we measure poverty? People are considered as living in poverty if they live in households with less than 60% of median household income. That is the key measure used by the UK and Scottish Governments and by the European Union. Using that measure, and after housing costs are taken into account, the latest official data show that a single person is in poverty if he or she is living on less than £124 a week. A lone-parent family with two children aged five and 14 are in poverty if they are living on less than £256 a week, as is a couple with two children aged five and 14 on less than £346 a week—which is just over £12 a day, and not a lot to cover food, fuel bills, household goods and transport, never mind school trips, family visits and leisure activities. About 970,000 people in Scotland live in poverty—19% of the population. About 250,000 children live in poverty—25% of all children. Poverty in Scotland and across the UK is significantly higher than in many other European countries. In Denmark and Norway fewer than 10% of children live in poverty, while Germany has a poverty rate of 15%.

One would have thought that poverty levels in this day and age should be falling, but not any more. Yes, real progress had been made specifically among children—the numbers went down by 100,000 between 1996-97 and 2004-05. The number of pensioners in poverty has decreased by nearly two thirds since 1996-97. However, since 2007 there has been no overall reduction in child poverty or in poverty among adults of working age.

Mark Lazarowicz Portrait Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
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I am grateful to my hon. Friend for giving way and I congratulate her on securing this debate. Given her comments, does she share my disappointment and anger at the fact that 10,000 children in Scotland are likely to be forced into poverty as a result of the tax and benefit decisions made by the Government yesterday?

Sandra Osborne Portrait Sandra Osborne
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Absolutely. I will come to that point later.

These trends follow dramatic increases in poverty between 1979 and the mid-1990s. Perhaps, like me, the Minister remembers those years and can offer a view on what caused that to happen and on whether we are heading back in that direction, thanks to his Government’s policy. That is exactly the direction in which the Government are taking Scotland. Cuts and reforms currently in train will have a significant negative impact on individuals and communities across Scotland and on devolved issues such as housing, child care, health, social care, equality and anti-poverty policy as a whole.

In June 2010 the Chancellor promised a Budget that would be tough, but fair. He announced an increase in VAT to 20%, a two-year pay freeze for public sector workers, a three-year freeze in child benefit and a tightening of housing benefit entitlements and eligibility for child tax credits, among other austerity measures. Coupled with the comprehensive spending review last October, those measures represent some of the most regressive in living memory. Yet, in the same breath, the Government claim that we are all in this together.

Oral Answers to Questions

Mark Lazarowicz Excerpts
Wednesday 22nd June 2011

(13 years, 1 month ago)

Commons Chamber
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David Mundell Portrait David Mundell
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I acknowledge the hon. Lady’s point. This is a complex issue, which is why the coalition Government are committed to establishing a commission to look at it. I hope that it will be able to take evidence from people such as the hon. Lady.

Mark Lazarowicz Portrait Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
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I am sure the Minister is right when he says that there is no great demand for an English Parliament. Does he not accept that the proposal to have two classes of MPs in this House, which is coming from many supporters of the proposals of the hon. Member for West Worcestershire (Harriett Baldwin), effectively amounts to setting up an English Parliament in this building? Is that not inevitably the road that his Government will go down if they accept having two classes of MPs in this House?

David Mundell Portrait David Mundell
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I do not acknowledge the hon. Gentleman’s point because the devolution settlement means that different MPs in this House already have different responsibilities, depending on whether they are from Scotland, England, Northern Ireland or Wales. The Government are committed to look at the West Lothian question, which is a substantive issue that the previous Government ignored, and will set up a commission later this year.

Scotland Bill

Mark Lazarowicz Excerpts
Tuesday 15th March 2011

(13 years, 4 months ago)

Commons Chamber
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Brian H. Donohoe Portrait Mr Donohoe
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I think that we are wandering into maths rather than arithmetic, but the hon. Gentleman is absolutely right. Of course, that would be a saving to the public purse, which is very important. Perhaps one could call it a Freudian slip. I have come to the conclusion that he is right and that the number should indeed be 117, and not 119 as I suggested.

Moving swiftly on—

Brian H. Donohoe Portrait Mr Donohoe
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I do not think I am going to be allowed to move on swiftly.

Mark Lazarowicz Portrait Mark Lazarowicz
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Surely with the passage of the Parliamentary Voting System and Constituencies Bill, which will reduce the number of parliamentary constituencies, the correct figure would in fact be 103.

Brian H. Donohoe Portrait Mr Donohoe
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If the hon. Gentleman intervenes again to give me some understanding of that point, I might be able to accede to it.

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Brian H. Donohoe Portrait Mr Donohoe
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My hon. Friend may not have slept last night, but what does she think of the fact that I have had to come back here to continue this debate? I will come back to her point later.

Mark Lazarowicz Portrait Mark Lazarowicz
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I disagree with much of what my hon. Friend said yesterday and today, but I concede his point on the role of list MSPs. One list MSP in my area just produced her annual report. By some amazing coincidence, almost every single example of her local work over the last year happens to be from the constituency where she is standing as a constituency candidate.

Brian H. Donohoe Portrait Mr Donohoe
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On the basis of conversations with other hon. Members, there is universal agreement that something is fundamentally wrong with that aspect of list Members. Even a previous Presiding Officer has made that point on numerous occasions in the Scottish Parliament. That is a pertinent issue and it must be given serious consideration, which is why I have proposed new clause 2, which would withdraw funding. Withdrawing the funding available to added list Members would lead to significant savings for the Scottish Parliament. If my arithmetic is correct, there are 56 added list MSPs, given that 73 MSPs are elected for constituencies—I believe my figures are right on this occasion.

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Alan Reid Portrait Mr Reid
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The hon. Gentleman takes the words out of my mouth: it would have been disgraceful gerrymandering if the first-past-the-post system had been adopted in that election, because in an election where the people voted for the SNP there would have been a Labour Government—and not just a minority Labour Government, but one with an overall majority. What is unfair about first past the post and first two past the post is that what counts is not the number of votes a party gets, but how they are distributed.

Mark Lazarowicz Portrait Mark Lazarowicz
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Does the hon. Gentleman accept that if we do the electoral calculations, it is clear that had the AV system been in operation for the Scottish Parliament, the Labour majority would have been even higher?

Alan Reid Portrait Mr Reid
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There is no way of predicting what would have happened, because we do not know how people would have used their later preferences. The hon. Gentleman’s analysis is of interest, but I do not think we can make any such assumption.

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Pete Wishart Portrait Pete Wishart (Perth and North Perthshire) (SNP)
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I do not think that anybody in this House can doubt the tenacity of the hon. Member for Central Ayrshire (Mr Donohoe) on this issue. In the course of the past 12 years or so, he has been absolutely consistent in his contempt for list Members of the Scottish Parliament and the whole concept of proportional representation. I am sure that what he says about there being a large constituency for his views is true and I certainly saw a lot of people nodding along with his speech. I want to explore the issue today to try to see what level of support there is for his views, particularly in the Labour party.

The amendment was tabled in the name of the hon. Member for Central Ayrshire and in the names of five of his hon. Friends—a substantial and significant amount of Scottish Labour Members. An awful lot of Scottish Labour Members support the notion that this House should dictate the membership and voting arrangements for the Scottish Parliament. He also says that there is more support in the Labour movement more widely. If that is the case, it alarms and shocks me and we should hear more about it. If a substantial minority—

Fiona O'Donnell Portrait Fiona O'Donnell
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Will the hon. Gentleman give way?

Pete Wishart Portrait Pete Wishart
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I will give way to the hon. Member for Edinburgh North and Leith (Mark Lazarowicz) first.

Mark Lazarowicz Portrait Mark Lazarowicz
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I think that my hon. Friend the Member for East Lothian (Fiona O'Donnell) and I are going to make the same point. Arguments can be made—I hope to make them in a moment—against the exposition laid out by my hon. Friend the Member for Central Ayrshire (Mr Donohoe), but if the hon. Member for Perth and North Perthshire (Pete Wishart) is going to start playing the numbers game—we have had enough mathematics and arithmetic in the past hour or so—five out of 41 means just under one eighth of the Scottish Labour MPs, or less than 12.5%. Let us not overdo that argument.

Pete Wishart Portrait Pete Wishart
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I am grateful for that intervention, but it still seems an awful lot—almost an eighth, and there are six signatories. It also seems to me that the numbers are growing. I saw the heads nodding in agreement with the hon. Member for Central Ayrshire and I suggest and suspect that he has growing support. If he remains tenacious on this issue, his view might prevail in the Labour party. That is the direction in which things are going and that is what we are beginning to see.

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Pete Wishart Portrait Pete Wishart
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Indeed, Mr Hoyle. I hope I was not repeating myself, but I was interested in that free vote concept. I would love to have seen a free vote on the matter under discussion. I hope that the hon. Member for Central Ayrshire will press the new clause to a Division so that we get an opportunity to see who is for and who is against. Labour is totally split on the issue, and the Scottish people need to see where the Labour party is in all this. We in the SNP will of course oppose the new clause, because we believe in fair votes and in the right of the Scottish Parliament to make its own decisions and arrangements on voting and membership. That is how normal, self-respecting Parliaments do their business.

Mark Lazarowicz Portrait Mark Lazarowicz
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I am sure that you will be pleased to hear that I intend to address the new clause, Mr Hoyle.

I want to put the case against what my hon. Friend the Member for Central Ayrshire (Mr Donohoe) has proposed, and to put the case for a system of proportional representation for the Scottish Parliament. The current system should be retained. We could have an interesting academic argument about whether to have the additional Member system or a different form of PR, but AMS is the proportional system that we have now in the Scottish Parliament, and I want to defend that system. Overall, it has worked well, and it should be retained in the interests of Scotland.

The first argument in favour of that system—or, indeed, any system of PR for the Scottish Parliament—is about fairness. I agree with the hon. Member for Argyll and Bute (Mr Reid) on that. Some people seem to take the view that fairness is a luxury for politicians. I do not accept that—fairness is something that we should all be concerned about. Any system in which the seats that one party wins can be grossly disproportionate to the votes that it gets is an unfair system. We have seen some of those distorting effects at the UK level, but at the Scottish level the first-past-the-post system could have much more disproportionate effects, precisely because of the multi-party system in Scotland. We have four parties in Scotland which, according to the opinion polls, get 6% or more of the vote—if we were to add the Lib Dems and their 5%, we would have a five-party system. With that breakdown between the parties, it would be quite feasible for a party with just 30% of the vote to get an absolute majority in the Scottish Parliament. Whatever our perspective might be, that cannot be justified or defended.

Some of my right hon. and hon. Friends take the view that because—as they believe—Labour tends to gain under that disproportionate system, we should support first past the post against any form of proportional representation. However, I do not accept that first past the post always benefits the Labour party. I am old enough to remember the 18 years of Conservative Government, when the Conservatives, never with the majority of the votes cast, nevertheless had a majority of the seats in Westminster, and sometimes a very large majority, so Labour does not always gain from the first-past-the-post system.

It would also be dangerous for my Labour colleagues or anyone else to assume that first past the post would always benefit Labour in Scotland. As the Liberal Democrats have discovered, no party can assume that its recent levels of support will be maintained indefinitely. Parties go up and down, and we cannot necessarily assume that if the Scottish Parliament had first past the post but no regional list system, the constituency votes in the last parliamentary elections would have been the same, because people might have chosen to vote differently if they had had only one vote instead of two. We cannot assume that Labour would always win an overall majority in the Scottish Parliament under first past the post.

Brian H. Donohoe Portrait Mr Donohoe
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Does my hon. Friend understand that the last time the Liberals were in power, which was in 1921, they were opposed to any form of proportional representation and voted in this place for the system that we have today?

Mark Lazarowicz Portrait Mark Lazarowicz
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Indeed. One thing that my hon. Friend and I share on this issue is consistency. He has been consistent in his opposition to PR; I have been consistent in my support for it, so at least we share something in this debate, unlike the Liberal Democrats.

No party can assume that it knows what the vote will be in five, 10, 15 or 20 years’ time, but the attraction—as my hon. Friends and others see it—of first past the post might diminish dramatically if, let us say, the Scottish National party at some stage got 35% of the votes in the Scottish parliamentary elections under that system. That could quite easily give it an absolute majority of seats, which no doubt the SNP would claim as a mandate for independence. Those who suggest that first past the post will always benefit Labour, or any other party, are making a serious mistake if they maintain that position.

Cathy Jamieson Portrait Cathy Jamieson
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So far the debate seems to have centred on what is best for the political parties. Does my hon. Friend agree that one of the problems with the voting system we now have for local government, for example, is that people feel that they have lost the direct link with their elected representative? They prefer a system in which there is certainty; they know who to go to and do not feel that they are being passed from pillar to post.

Mark Lazarowicz Portrait Mark Lazarowicz
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I agree. That is one reason why I do not support STV for the Scottish Parliament or local government, and I will come on to that point as it relates to the Scottish Parliament in a moment.

We should bear in mind some of the arguments made in 1997—those of us who have been around for some time can remember them—on why it was important that there should be a vote on the system of PR in the referendum on the Scottish Parliament, rather than putting a first-past-the-post system to voters. That is precisely because it was recognised, even by some people who were hostile to or sceptical about PR, that if the electors had been offered a choice of a Scottish Parliament with a first-past-the-post system, some might have voted against it because they would be concerned that one party in one part of the country might at some future stage dominate the Parliament, which would have undermined support for the yes vote in the 1997 referendum.

Pete Wishart Portrait Pete Wishart
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Looking around the Chamber, I see four Labour Members who are against the hon. Gentleman and three who support him. Does he feel that in the Labour party he is beginning to lose the argument in favour of PR?

Mark Lazarowicz Portrait Mark Lazarowicz
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I am not sure that I understand the hon. Gentleman’s point—

Pete Wishart Portrait Pete Wishart
- Hansard - - - Excerpts

There are four Members against him and three for him.

Mark Lazarowicz Portrait Mark Lazarowicz
- Hansard - -

I think that we are going down a road that will not take the argument much further forward.

When the Constitutional Convention drew up the plans for a Scottish Parliament, there was a strong case that the Parliament should be elected by a system of PR, and there is certainly no case for changing that, even if we look at it simply from the narrow point of view of Labour’s party political advantage, which, as I have said, we should not do. It is also about how democracy can be improved and how the public relate to the political process, as my hon. Friend the Member for Kilmarnock and Loudoun (Cathy Jamieson) has said.

If we accept that there should be some system of PR for the Scottish Parliament—I know that there are Members on both sides of the House who do not accept that—the obvious question is which PR system should be put in place. There is a wide range of PR systems, as there is a wide range of electoral systems generally, and there are arguments for and against all of them. My hon. Friend the Member for Kilmarnock and Loudoun has pointed out some of the disadvantages, and I agree with her about the STV system that currently operates in local government. Some council wards in my constituency, for example, now have 28,000 voters, and so local councillors are in no sense local in the way that they had been, and I presume that that is the case in her constituency.

If we had an STV system for Scottish Parliament elections, Edinburgh would have four MPs for the entire area, but no local MPs. There might be two Labour Members, one Tory and one SNP, according to present opinion polls, but that would certainly not allow any of them to have a local affiliation in the parts of Edinburgh where there is a strong local identity, such as my constituency of Edinburgh North and Leith. STV would certainly not be the right answer. I do not think that anyone would seriously go for the complete proportional list system in which seats are allocated to parties simply on the basis of the number of votes received nationwide. That would give too much power to the parties, so no one would support that system. Therefore, the additional Member system, which combines the constituency element, so that people know who their local MSP is, and the top-up level, which balances out the disproportionate effects of the first-past-the-post system, is in my view the best compromise, which is why it should be maintained.

There are certainly problems with how some list Members operate. I could refer to one Member in my region and the way in which she has presented herself in the run-up to Scottish Parliament elections, and other examples could undoubtedly be provided from across the country of MSPs from different parties acting that way.

In my case, I have been fortunate, but by and large we have had no great problems of representation in working with list MSPs. There are times when we have political disagreements, but there are also times when we can work together in the interests of the area. Perhaps I have just been fortunate, but I do not think that there have been the dramatic difficulties that my hon. Friend the Member for Central Ayrshire has suggested.

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Ian Davidson Portrait Mr Davidson
- Hansard - - - Excerpts

My understanding is that list Labour MSPs are perfect in every way and have done nothing incorrect or outside the rules. I presume that there are no examples of Labour MSPs misbehaving in such a way; otherwise, we would have heard about them. The fact that the SNP has not raised a single example of a Labour MSP doing anything untoward is an indication of where the balance of advantage in this argument lies.

A further difficulty with the existing system is the way in which getting on the list is so key to success in the proportional representation section of the ballot. That means that the party machine, which controls access to the list, has a much greater say than the electorate in who goes to the Scottish Parliament, because the electorate can only vote for the list—they have no say in who is on it. The loyalty of those who are on the list must therefore be directed not towards the electorate but towards their party managers; otherwise, they run the risk of being put off the list next time.

Mark Lazarowicz Portrait Mark Lazarowicz
- Hansard - -

I do not quite see the strength of my hon. Friend’s argument. In the Labour party, the members choose the ranking of people on the list, but they choose the candidates for first-past-the-post seats as well, so I am not sure how the party is given more power in one situation than in the other. Earlier, he highlighted various deficiencies in the list system, and he may be right. However, those may be arguments for changing the additional member system, but surely not for getting rid of it entirely.

Ian Davidson Portrait Mr Davidson
- Hansard - - - Excerpts

Let me come on to that. At the moment, I am identifying particular difficulties. My hon. Friend perhaps misunderstands my point about the allegiance of people on the list. He is absolutely right that, certainly in the Labour party, it is the membership who determine someone’s place on the list. However, it is often the party hierarchy who determine whether that person enters the ballot to decide whether they are placed on the list, so it is about how that is handled. Increasingly, party managers have had a tendency to try to control who is on that list.

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Ian Davidson Portrait Mr Davidson
- Hansard - - - Excerpts

A very bad boy was trying to tempt me down the highway, Mr Hoyle. Earlier, I heard an SNP Member shouting that they wanted Scotland to join the euro as soon as possible, but that is nothing to do with this debate either, and I therefore do not intend to bring it up.

The deal was a backroom deal and the old politics, in exactly the same way as the coalition was the old politics. Just as the Liberals were bought off for the Scottish Parliament, so they have been bought off with the promise of AV for this Parliament. I noticed yesterday a whole string of Liberals wearing “Yes to AV” badges. I will not mention that now, but come back to it in a later debate—

Lindsay Hoyle Portrait The Chairman of Ways and Means
- Hansard - - - Excerpts

Order. We are going to discuss the abolition of regional Members. We are not going to be dragged back or come back to that other matter later; we will stick to new clause 1. We need to make progress. I think Mark Lazarowicz was about to intervene on you, Mr Davidson. Are you giving way?

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Mark Lazarowicz Portrait Mark Lazarowicz
- Hansard - -

I am grateful to my hon. Friend for giving way and I shall certainly not tempt him off the straight and narrow. On how the electoral system for the Scottish Parliament was adopted, the fine details were a result of detailed discussion within the Constitutional Convention. Surely my hon. Friend accepts that the final system was endorsed by the electorate. The principle of having a proportional system for the Scottish Parliament was worked out at length through debate and consultation—it was certainly not the product of a backroom deal, but the product of many months of discussion and public consultation. As he knows, the Labour party conference voted 2:1 in favour of the final deal after the final agreement between the parties in the convention.

Lindsay Hoyle Portrait The Chairman of Ways and Means
- Hansard - - - Excerpts

Order. We do not need reports on the Labour party conference, so I think we will get back to new clause 1.

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David Mundell Portrait David Mundell
- Hansard - - - Excerpts

As I recall, the reason given for Labour Members taking that approach was that they were encouraging people to vote on the list; they were seeking to demonstrate that prominent people were on the list and so it was an important vote in which to participate.

Mark Lazarowicz Portrait Mark Lazarowicz
- Hansard - -

Will the Minister remind us whether there are any Conservative list MSPs standing for a first-past-the-post seat in the forthcoming elections?

David Mundell Portrait David Mundell
- Hansard - - - Excerpts

Indeed there are, but the Conservative party has been clear and absolutely consistent in its policy. It has not changed its policy to suit the electoral needs of individual constituency MSPs who fear for their future.

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Angus Brendan MacNeil Portrait Mr MacNeil
- Hansard - - - Excerpts

Throughout our proceedings, we have heard claims from the Tories and the Liberal Democrats that this Bill is the greatest transfer of powers from Westminster to Scotland in more than 300 years. To ensure that it is truly a transfer of powers, I propose several additions that will see the Scottish Government gain more control over Scotland’s maritime future.

We seek to devolve the operation and funding of the Maritime and Coastguard Agency to Scotland, to remove restrictions in the Scotland Act 1998 that prevent the Scottish Government from providing incentives to the shipping industry in Scotland and to ensure that the Scottish Parliament agrees to any movement of the border instigated from London. I am aware that those proposals were not recommended in the Calman commission’s report, but we cannot expect Calman to have thought of everything. Anything might have come from Calman, I suppose, but, of course, it does not matter because the Government have picked and mixed the recommendations as they were made.

New clause 3 was sparked by the Government’s proposals to cut the coastguard service throughout the UK. Those proposals seek to leave three to four co-ordination centres south of the border and only one 24-hour co-ordination centre and one part-time centre in Scotland—there are currently five. The proposals were not meant to be debated in this House and were certainly not presented to the Scottish Parliament. That shows a blatant disrespect not only for the Scottish Parliament and Government but for MPs in this House who, to take my case as an example, will be affected by these decisions.

Through my proposals, we seek to alleviate the financial and administrative burden on the Department for Transport by taking the Scottish portion of the coastguard service out of its realm of responsibility. The decision on the future of the coastguard in Scotland should, rightly, take place in Scotland.

Mark Lazarowicz Portrait Mark Lazarowicz
- Hansard - -

Has the hon. Gentleman assessed the views of the trade unions representing those who work in the coastguard service or the seagoing community about whether they want to see the coastguard service split up in that way?

Angus Brendan MacNeil Portrait Mr MacNeil
- Hansard - - - Excerpts

Yes, I have asked people who work in the coastguard and, yes, they do want to see this happen.

Mark Lazarowicz Portrait Mark Lazarowicz
- Hansard - -

Just to be clear, I did not mean somebody in the coastguard service whom the hon. Gentleman knows. I asked whether trade unions collectively —at least at a Scottish level—support the change.

Angus Brendan MacNeil Portrait Mr MacNeil
- Hansard - - - Excerpts

I hope that the trade unions would act in the best interests of their members’ employment and the coastguard service throughout Scotland and try to maintain coastguard stations in Scotland. I am quite sure that if the Scottish Government—regardless of their party—were in charge of this matter, the savage cuts would not be happening.

Scotland has an estimated 60% of all the coastline in the UK, so the Scottish Parliament and Government should surely be the primary body that decides the future of the force that protects mariners and the community. We have already seen the beginning of the process with the passing of the Marine and Coastal Access Act 2009, and we must continue that through these proposals, which would ensure that the Maritime and Coastguard Agency in Scotland enforced Scots law on environmental matters. We seek to have the MCA fall in line with the local operation of the police, health service and other devolved agencies.

According to the Maritime and Coastguard Agency, the seas and coastlines are getting more congested, ships are getting larger and the weather is getting worse. With that information in mind, it surely makes sense to implement a division of labour and allow the MCA in England to focus on Southampton and London and leave Scottish waters to Scotland.

Our new clause removes the restrictions in the Scotland Act that prevent the Scots Government from running the coastguard. Once we place it in the category of a cross-border public authority, we will remove nearly £5 million of coastguard co-ordination centre operating costs from the Department for Transport’s budgets alone. That would give us the opportunity in Scotland to secure a proper coastguard service for Scotland. In the past year, we have heard that contracts to provide life-saving helicopters have been bungled completely. Our tugboat services have been cut to save money, in line, we are told, with these austere times, but that unfortunately exposes Scotland to severe gaps in coastline coverage. On a side note, we want to know what will happen to our tugs when these front-line services come up for contract renewal in September.

If Members look closely at the proposals, they will see that we are not attempting to change international agreements or safety legislation. We are simply seeking to ensure that decisions regarding the Scottish coastline are taken in the best interests of Scotland. In short, they move power from Westminster to the most democratic institution representing Scotland—the Scots Parliament.

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David Mundell Portrait David Mundell
- Hansard - - - Excerpts

My point, which I am sure that the hon. Gentleman does not recognise for dogmatic reasons, is that there are important rail services in Scotland that cross the border, and that those services remain important.

Mark Lazarowicz Portrait Mark Lazarowicz
- Hansard - -

Given that that is the current situation, why on earth are the Government opposing a new clause that refers to services that “start and finish”, not “start or finish”, in Scotland?

David Mundell Portrait David Mundell
- Hansard - - - Excerpts

If the hon. Gentleman had listened to the hon. Member for Dunfermline and West Fife, he would have heard him give a very narrow definition of services which start and finish in Scotland, without giving sufficient recognition to the fact that there are significant services that cross the border.

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David Mundell Portrait David Mundell
- Hansard - - - Excerpts

The hon. Gentleman, as always, offers wise words. I thought that he was going to refer to the debate in this House on 31 March 1998, although he was not then a Member, in which rail powers were debated in the context of the original Scotland Bill. The hon. Member for Central Ayrshire was prominent in that debate, as he was in our earlier discussion on voting systems.

Mark Lazarowicz Portrait Mark Lazarowicz
- Hansard - -

Again, I honestly do not understand the Minister’s position. The new clause refers to the provision of rail services, but it does not provide for the devolution of the rail infrastructure. The tracks and the rest of it could not be sold off. I suggest that he remembers that he is in a coalition and rethinks this issue before he is deserted by some of his colleagues to his right.

David Mundell Portrait David Mundell
- Hansard - - - Excerpts

I have set out why the Government cannot accept the new clause. The Government believe that the devolved powers, which are significant, are best exercised within a coherent GB structure, as provided under the Railways Acts of 1993 and 2005. We believe that it is essential that the overall regime for the provision of rail passenger services and their regulation remains a reserved matter. It would not be sensible to run the railway in such a way that the Scottish Parliament could overturn the framework that governs the operation of passenger services on a GB basis. Our policy is to maintain a unified national rail network that is subject to appropriate oversight by Scottish Ministers. I believe that the current system achieves that. I therefore ask the hon. Member for Dunfermline and West Fife to withdraw the new clause.

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Angus Brendan MacNeil Portrait Mr MacNeil
- Hansard - - - Excerpts

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

This is my third speech of the evening and I plan not to take too much time about it. The hon. Member for Rutherglen and Hamilton West (Tom Greatrex) asked whether we could have the past five hours back. For most of that I blame the hon. Member for Central Ayrshire (Mr Donohoe), who took up more than half that time.

My ongoing dispute with the assignation of time in the UK is firmly on record, with three speeches in Hansard over the past few years. It is my intention with the new clause to put an end to my shouting at the sun that happens periodically in this place. The new clause has more to do with how we deal with the amount of sunlight that we have in Scotland and how that relates to time. It deals with any changes to the clocks in the UK.

As anyone north of Manchester knows, the northern part of the island known as Great Britain and the islands to the west and the north of Great Britain are subject to very odd sunlight patterns at times, owing to our longitude and latitude and the alignment of our islands. We have very different periods of daylight in the UK, both summer and winter. Our winter days are short, with sunrise not happening till 9 am, so we must be able to adjust our clocks for the best use of time. Over the past few centuries, politicians have been bringing forward proposals to address the issue, with the most recent proposal occurring in this Parliament as a private Member’s Bill, when the hon. Member for Castle Point (Rebecca Harris) demonstrated that there is still a drive to change the clocks unilaterally.

At present, 65% of Scots are against changing the clocks, according to a YouGov survey in February 2010. However, if fewer than 300 MPs at Westminster voted to change the clocks in the UK, those MPs would change the lives of millions. The Government can make these changes and the Scots Parliament has no redress. It has been and will continue to be argued that it will be impossible for someone in Scotland to call someone in England because of the time difference, which is bunkum, or that it will not be possible to take a train, because it is beyond the capability of the human mind for someone to adjust their watch by an hour—again, bunkum. I have faith that everyone can adapt to the slightest change.

Mark Lazarowicz Portrait Mark Lazarowicz
- Hansard - -

I am not sure why the hon. Gentleman has changed his position from the one that he took in the debate on 26 January 2007 on the Energy Saving (Daylight) Bill, when he said:

“Unfortunately, we cannot go down the two time zones route. . . We cannot have two different time zones in the UK.”

When pressed by some amazed MPs, the hon. Gentleman repeated that

“we cannot operate two time zones”.—[Official Report, 26 January 2007; Vol. 455, c. 1733.]

He said a third time in that debate that he could not support two time zones in the UK, but his new clause would allow precisely that. I wonder why he has changed his position.

Angus Brendan MacNeil Portrait Mr MacNeil
- Hansard - - - Excerpts

My position has not changed. The point of the new clause is to make sure that nothing is foisted on Scotland. It will also put the brakes on any attempt to introduce two time zones.

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Angus Brendan MacNeil Portrait Mr MacNeil
- Hansard - - - Excerpts

I would ask the hon. Gentleman whether he prefers the possibility of a time zone that the Scots do not want being foisted on them to having two different time zones in the UK. I would prefer the Scots to be able to control their own time zone to the possibility of something being foisted on them, so that they had the same power as the Northern Ireland Assembly in Stormont and the people of the Isle of Man.

Mark Lazarowicz Portrait Mark Lazarowicz
- Hansard - -

I genuinely do not understand how the hon. Gentleman has changed his position from the one that he took in 2007. His new clause would not give Scotland a veto power; it would give it the power to decide on time zones and the subject matter of the Summer Time Act 1972. He is bringing the possibility of having two different time zones closer, as the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith) pointed out. The hon. Gentleman’s new clause would not give Scotland a veto power, and if that is what he wants, why has he not tabled a new clause that would?

Angus Brendan MacNeil Portrait Mr MacNeil
- Hansard - - - Excerpts

The question of a veto goes both ways. I would not seek to veto what the good people of England might want to do, but they would be far less likely to do it, given the realpolitik of the situation, if the people entering the argument on both sides had that power. I am seeking to give the Scots Parliament the same authority as Stormont—an Assembly that seems to have a number of dispensations, including on corporation tax and, in this case, time—and the Isle of Man.

Scotland Bill

Mark Lazarowicz Excerpts
Thursday 27th January 2011

(13 years, 5 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Michael Moore Portrait Michael Moore
- Hansard - - - Excerpts

First, I pay tribute to the right hon. Gentleman’s distinguished career of campaigning on these issues and to all the hard work and effort he has put into that over many years. The fundamentals of devolution since 1999 mean that the Scottish Parliament and then the Scottish Government are able to decide how to spend all the revenue that comes to them, whether it be directly through the grant or, to use a shorthand term, as a result of the Barnett consequentials. The hon. Gentleman is, of course, entitled to draw a distinction between how the money is spent south of the border and how it is spent north of the border. On occasions, the advantage might be the other way round, but I am afraid that that is the essence of devolution—it is for them to decide. The Bill enhances those principles rather than claws anything back.

Mark Lazarowicz Portrait Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
- Hansard - -

The right hon. Gentleman is right that the essence of devolution means that the Scottish Government should not have their funding ring-fenced, as some have suggested it should be. However, the point raised by my right hon. Friend the Member for Coatbridge, Chryston and Bellshill (Mr Clarke) related to accountability. I do not think that he was suggesting that we should ring-fence the funding transferred to the Scottish Parliament. It is a question of how there can be accountability to the UK Parliament. Perhaps there could be some way of bringing to this Parliament the ability to question the way in which money is spent by the Scottish Parliament. Intergovernmental and inter-parliamentary co-operation should allow such questioning to be pursued and, although my right hon. Friend has been trying to do that, he has not always been successful in getting the Scottish Parliament to respond.

Michael Moore Portrait Michael Moore
- Hansard - - - Excerpts

I respect the hon. Gentleman’s interest in these matters and I commend the way he has followed devolution developments over the years. The primary responsibility for accountability is to the Scottish Parliament. Governments of different hues have gone before the committee system and made statements in the Scottish Parliament; there are 129 Members of the Scottish Parliament and that is their primary function. Ultimately, as in this House, all are accountable to the electorate. What we are trying to do with accountability in this Bill is enhance the financial powers so that parliamentarians in Scotland can be made accountable not just for the spending decisions, but for the tax-raising decisions that precede them.

Let me finish my point about the Barnett formula. We do not intend to alter it or review its arrangements at this time. Nothing in the Bill, however, prejudges future changes to the funding formula. Rather, the Bill’s effect will be to make the Scottish Parliament more reliant on its own revenues and less reliant on the block grant to fund public spending in Scotland.

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Ann McKechin Portrait Ann McKechin
- Hansard - - - Excerpts

I am happy to provide my hon. Friend with that assurance. Unlike some other parties, we are already listening carefully to and speaking with people and bodies in Scotland, as we have done throughout this process, which has already lasted three years.

There has been much discussion, both in the Scotland Bill Committee in Holyrood and beyond, of the effect of the proposed devolution of the fiscal powers set out in the Bill to the Scottish Parliament. We urge the Secretary of State to set out and make transparent at the earliest opportunity the precise plans that the Government intend to introduce to ensure operational stability during the transition and the measures he intends to put in place to control the costs incurred during those changes. In particular, it is imperative that the Scotland Office, the Scottish Government and Her Majesty’s Revenue and Customs are in full and frank consultation and that operational systems are put in place to ensure that changes are fully effective so that Scottish taxpayers do not see public moneys wasted during a period of difficult financial constraint. What discussions has the Secretary of State held with HMRC and the Scottish Government on the initial planning required to implement those substantial changes, and will he undertake to report regularly to the House on progress during the preparation period leading up to the next general election?

We also seek clarity on the definition of “Scottish taxpayer”, which experts have already highlighted could lead to a series of what we suspect are unintended anomalies. According to the Institute of Chartered Accountants of Scotland, a worker who spends 101 days in Scotland, 99 days in England and 165 days working overseas, for example, will still be deemed to be a UK resident and a Scottish taxpayer, despite spending less than half the calendar year in Scotland. A person who lives in Scotland but works in England would derive all their income from their activities in England but still be classified as a Scottish taxpayer because that is where they end their day. As the Secretary of State and his No. 2, the Under-Secretary of State, the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell), both represent border constituencies, that issue might be of direct relevance to their constituents. We understand that HMRC currently has no intention of introducing a concession to split the tax fiscal year to deal with the movement of workers across the border. None of those consequences seems particularly sensible, so we urge the Government to look carefully at the definition.

We are disappointed that the Government have not taken the opportunity to tackle the problems caused by the different approaches to the definition of “charitable purposes” and “charity” in the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Act 2006, which applies to England and Wales. They have failed to use this opportunity to introduce measures to reduce the regulatory burdens on UK charities that operate in both Scotland and other parts of the UK —particularly in difficult times when charities are already affected by the spending review cuts and bearing the brunt of the economic downturn. The Bill is the ideal place to address the issue, and to quote the Secretary of State’s right hon. Friend the Prime Minister, “If not now, then when?”

Let me conclude by reminding the House that the Bill is intended to preserve the political and economic union that has benefited both great countries over the past three centuries. The case for fiscal autonomy has disintegrated around the SNP, and its vision for Scotland is small, isolated and weak. Conversely, the Bill is designed to ensure that Scotland’s future in the United Kingdom is strong, enabling the Scottish Parliament to flourish further and to carry on improving the lives of people in Scotland.

Mark Lazarowicz Portrait Mark Lazarowicz
- Hansard - -

A large number of charities are headquartered in my constituency, and they regret the fact that the opportunity has not been taken to deal with this anomaly. Does my hon. Friend agree that, to allow the point to be dealt with, the Government could well consider tabling amendments in Committee? I myself am a director of a Scottish charity, but it is a local one that is unlikely to be affected by the provisions.

Ann McKechin Portrait Ann McKechin
- Hansard - - - Excerpts

I am grateful to my hon. Friend. On that point, I agree that it would be helpful if the Government reconsidered their response to that recommendation by the Calman commission, because there is an additional burden on many very good charities that operate not only in Scotland but in other parts of the UK. They face two licensing processes and two sets of regulatory burdens, and, for a Government who always lecture people on reducing the regulatory burden, this is a good opportunity, working with the consensus among charities, to try to alleviate the amount of time they have to spend on paperwork and to increase the amount of time they have to spend on charitable purposes.

We will support the Bill’s Second Reading, not the Scottish National party’s amendment, if it is put to a vote. That does not mean we will not scrutinise the Bill carefully and closely, but, after almost three years of study and engagement with the Scottish public and with experts, and given the express will of the Holyrood Parliament, whose Committees are currently considering the matter in close detail, it is now important to get on with business and to put the Calman commission into legislation.

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Iain Stewart Portrait Iain Stewart
- Hansard - - - Excerpts

My right hon. Friend makes a powerful point.

Mark Lazarowicz Portrait Mark Lazarowicz
- Hansard - -

Perhaps I should add that the Basque country and Catalonia have always had higher gross national product rates than the rest of Spain, so I do not think that the point made by the hon. Member for Dundee East (Stewart Hosie) has much weight.

Iain Stewart Portrait Iain Stewart
- Hansard - - - Excerpts

I am grateful for that intervention. I think it is unhelpful to make an exact analogy with a particular model. Spain has a very curious multi-speed system of devolution between its different constituent parts.

I promised to discuss why I do not believe, certainly at this point, that fiscal autonomy is feasible or desirable for the Scottish Parliament. There are huge unknowns in the fiscal relationship between Scotland and England, for the simple reason that we have never assigned tax revenues or allocated public spending on a straight territorial basis—that just has not happened. As part of our research for the book, I spent many hours enjoying and analysing the various forecasts and documents that the Scottish National party had published over the years giving its view on what Scotland’s net contribution to or net borrowing from the United Kingdom had been.

Part of the SNP’s criticism was that the official Government figures, as published in the annual Government Expenditure and Revenue Scotland survey, were based on assumptions about what Scotland’s share of corporation tax or income tax should be. However, the SNP’s own figures are based on assumptions and projections. They disagree with the assumptions made, but they could not analyse particularly and exactly what the Scottish revenues were.

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Iain Stewart Portrait Iain Stewart
- Hansard - - - Excerpts

I believe that it would be a difficulty, and I have seen no evidence from the Scottish National party that properly costs this or assesses what the split would be.

Mark Lazarowicz Portrait Mark Lazarowicz
- Hansard - -

Are not the economies of England, Scotland and the rest of the UK so closely integrated and dependent on each other that the consequences would not be the same as might be the case for, say, Germany and France? On the hon. Gentleman’s point about Standard Life, I am not normally someone who tries to air scare tactics about what might happen to the financial services sector under independence, but would there not be a danger that some companies, faced with the choices and difficulties that he has outlined, might choose to move their headquarters out of Scotland precisely because of the consequences of a differential in corporation tax rates?

Iain Stewart Portrait Iain Stewart
- Hansard - - - Excerpts

That is exactly the point. The relationship between Scotland and England is so interwoven that to start to unpick it now would be hugely complicated and difficult. On the point about pensions, I have mentioned the potential difficulties under the current proposals that would need to be clarified. If there were full fiscal autonomy, those problems would be magnified many times over. People might have made national insurance contributions all through their lives. How would all that be untangled to sort out the different rights and contributions? The process would be enormously complicated. I am not saying that it would be impossible, but I do not believe that it is practical at this point in time. I hope that my right hon. Friends on the Front Bench will take up my point that we should move towards assigning revenues and spending on a straight territorial basis, so that in time we might be able to move to a system involving much greater devolution of fiscal power down to the Scottish Parliament.

Oral Answers to Questions

Mark Lazarowicz Excerpts
Wednesday 26th January 2011

(13 years, 5 months ago)

Commons Chamber
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Michael Moore Portrait Michael Moore
- Hansard - - - Excerpts

Thank you, Mr Speaker.

On my hon. Friend’s first point, may I just emphasise what I said earlier, which was that the vice-premier was very impressed by what he saw of Scotland’s renewable energy sector when he visited Edinburgh, and not only by the presentations that he saw about the country’s potential but specifically by seeing the Pelamis factory in Leith? My hon. Friend also makes a strong and compelling case for the green investment bank, and we will announce details of that shortly. We look forward to making an announcement about its location at an appropriate moment.

Mark Lazarowicz Portrait Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
- Hansard - -

I welcome the support that the Secretary of State has given to the establishment of the green investment bank headquarters in Edinburgh. Given that leading economists have said this morning that Scotland faces an even greater danger than the rest of the UK of a double-dip recession, does he accept that the decision on the location of the bank should be taken sooner rather than later? We want it to be set up so that we can have the advantage of the jobs that it will bring now, not in three or four years’ time.

Michael Moore Portrait Michael Moore
- Hansard - - - Excerpts

Unlike the previous Government, we have actually made a firm commitment to the green investment bank, and we intend to deliver on that. We will be making further announcements on the detail as soon as possible.

Constitutional Law

Mark Lazarowicz Excerpts
Wednesday 24th November 2010

(13 years, 8 months ago)

Commons Chamber
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David Mundell Portrait David Mundell
- Hansard - - - Excerpts

If I had been able to complete my response to the hon. Member for Kilmarnock and Loudoun (Cathy Jamieson), I would have acknowledged that Mr Ron Gould’s preference was for separate elections. It was also his preference that there should be no overnight counts at elections because of the opportunity for mistakes to be made. He said:

“The marking of yes or no on a referendum ballot is much easier to understand and carry out than the requirements of marking an STV ballot.”

He also said:

“I do not believe that the same factors which led to voter confusion and the large number of rejected ballots at the last Scottish Parliamentary and Municipal elections would arise if both the…Parliamentary Election and the Referendum were held on the same date”.

Mark Lazarowicz Portrait Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
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What assessment has the Minister made of the possibility of confusion arising from some people being able to vote in the Scottish Parliament elections next year but not being entitled to vote in the referendum?

David Mundell Portrait David Mundell
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I am confident that that issue will be addressed by the electoral authorities. There are different electoral franchises, and the electoral registers make it clear who is on which franchise. I cannot guarantee that no one will be disappointed after turning up to vote in an election and finding that they are not entitled to do so, but their status and their entitlement to vote will be determined not by their confusion but by the legal position in relation to the franchise.

Mark Lazarowicz Portrait Mark Lazarowicz
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I understand that, but at some polling stations in my constituency, up to 10% of the electorate could be entitled to vote in the Scottish parliamentary election but not in the AV referendum. Does that not create the potential for confusion not only for those voters but for the people working in the polling stations and for every other elector as well?

David Mundell Portrait David Mundell
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The hon. Gentleman’s comments will no doubt have been heard by the Electoral Commission and those who are going to produce the information material about the elections to be held next May that will be delivered to every household in Scotland.