Oral Answers to Questions

Michael Moore Excerpts

Wednesday 27th October 2010 Commons Chamber

[The Secretary of State for Scotland (Michael Moore)]

The Government are committed to creating the right conditions in Ayrshire and elsewhere to ensure sustainable economic growth and, with it, employment opportunities.

[Katy Clark]

I thank the Secretary of State for that answer. Has he had the opportunity to look at the Experian report, which has received some coverage in the press over the last few days? It says that, owing to the high dependence on public sector jobs and the poor performance in other sectors of the economy, North Ayrshire will be the part of Scotland that finds it most difficult to recover from the recession. Will he look at that report, consider what impact the loss of public sector jobs will have in North Ayrshire and meet colleagues who represent the area to discuss what needs to be done to protect the economy?

[Michael Moore]

I have seen the report and I appreciate the challenges faced in North Ayrshire and elsewhere. Our challenge as a Government is to tackle the deficit we inherited from the previous Labour Government, under whom unemployment was rising significantly. All the measures we have announced in the Budget and the spending review are designed to tackle that, but I would be happy to meet the hon. Lady and other colleagues to discuss the situation.

[Ann McKechin (Glasgow North) (Lab)]

The Government have repeatedly stated that they always want to make work pay, but in areas such as North Ayrshire, which my hon. Friend the Member for North Ayrshire and Arran (Katy Clark) represents, many families that desperately want to work can find only temporary or part-time jobs. The charity Gingerbread reported this week that one third of all jobcentre vacancies are for jobs offering fewer than 16 hours a week, yet the Secretary of State’s Government propose to remove working tax credits for all families working between 16 and 24 hours a week. How many hard-working families in Scotland will lose their credit because of this change? Will the right hon. Gentleman stand up and urge the Secretary of State for Work and Pensions to abandon this draconian measure?

[Michael Moore]

I welcome the hon. Lady to her post. She knows the Scotland Office well from her previous position as a Minister. I look forward to working with her on issues where we agree, although we will also have robust exchanges where there is room for disagreement. I am afraid that this issue is one such area. As I said to the hon. Member for North Ayrshire and Arran (Katy Clark) a moment ago, we inherited from the Labour Government the largest deficit in peacetime history—£155,000 million. The measures we announced in the Budget to help reduce corporation tax and the burden of national insurance and now the measures in the comprehensive spending review to invest in energy projects for the future show that we are setting out on our plan to get sustainable employment for the whole of Scotland.

[Ann McKechin]

I thank the Secretary of State for his initial remarks. I am sure there will be areas where we can work together, but on this issue his answer is certainly disappointing. Yet again his Government admit to taking twice as much from people with families as they do from our banks. His Government now propose a 10% cut in housing benefit entitlement for those on jobseeker’s allowance for more than 12 months—regardless of the fact that they have complied with all the rules and looked for work at every opportunity. Most people regard this as no better than a form of punishment. The Secretary of State missed the vote on the VAT rise; is he going to miss this vote, too, or will he now stand up for decency and fairness?

[Michael Moore]

What matters is for us to have a welfare system that supports those in need, helps them to get back into work, and, when they get back into work, makes work pay. All too rarely have the existing arrangements met those tests. We are determined to support those in need on an ongoing basis, and to ensure that the system is fair to those who need it and fair to those who pay for it.

[David Cairns (Inverclyde) (Lab)]

3. What recent discussions he has had with representatives of the broadcasting industry in Scotland on the Government’s plans for local television networks.

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[John Thurso (Caithness, Sutherland and Easter Ross) (LD)]

5. What discussions he has had with ministerial colleagues on expenditure on port infrastructure in Scotland for the development of marine renewable energy projects; and if he will make a statement.

[The Secretary of State for Scotland (Michael Moore)]

I was delighted to visit my hon. Friend’s constituency last month, and to find out more about the plans there for the development of marine renewable energy projects.

Scottish Ministers can direct Ofgem to pay an amount from the Scottish fossil fuel levy account to the Scottish Consolidated Fund, which could be used for such projects. If Scottish Ministers do that, they will benefit from our arrangements for the devolution of at least £250 million for Scotland from the green investment bank.

[John Thurso]

I am sure that my right hon. Friend is aware of the immense potential of the Nigg yard in Easter Ross. Is he also aware that its current owner, KBR, has declined to use it, and is dragging its feet over selling it? Will he make it clear to KBR that a speedy completion is necessary to return the yard to use and create important jobs?

[Michael Moore]

When we visited Scrabster and other parts of my hon. Friend’s constituency, I was impressed by the serious efforts that are already being made to develop marine renewable projects in the far north. I recognise my hon. Friend’s concern about the situation at Nigg, and his comments will have been heard by the management team there. It is important for us to secure, across Scotland, as much investment as possible in the new renewables projects. I hope that the Scottish Government will respond positively now that we have ring-fenced money in the green investment bank.

[Gordon Banks (Ochil and South Perthshire) (Lab)]

What representations has the Secretary of State made on behalf of Scotland for the green investment bank to be located there?

[Michael Moore]

The hon. Gentleman and others are making a strong case for that, and I am certainly interested in working with colleagues in all parts of the House to make the strongest possible case for it as well.

[Mr Alan Reid (Argyll and Bute) (LD)]

I am sure that the Secretary of State will be aware of the announcement earlier this week that Danish company Skykon has suspended payments to creditors. Skykon owns a factory in my constituency that makes towers for wind turbines and it was building a new factory. Will he do his best to ensure that that partially completed factory is completed and goes into production, protecting badly needed jobs and producing towers for the wind industry?

[Michael Moore]

Like my hon. Friend, I regret the announcement that was made. I realise that that will have a huge impact on that community in his constituency. It is important that we get to the bottom of this and understand the reasons behind it, but I hope that, working with the Scottish Government and through any meetings that he and I might have, we will be able to work our way through this.

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

I ask the Secretary of State to join me in pressing for the green investment bank to be based in Scotland, to take a bit of initiative and to put some urgency and energy into that matter, because, given the level of expertise and knowledge in Scotland, it is the ideal place for the green investment bank to be based.

[Michael Moore]

First, I am delighted to have the opportunity to welcome the hon. Gentleman to his new responsibilities. Like the shadow Secretary of State, he knows the Scotland Office very well and I look forward to our encounters across the Dispatch Box and to working together where we can. The decision on the location of the green investment bank has still to be taken. His comments, those of his hon. Friends and those of Members on the Government Benches are strongly made, and I will work with everyone to make the best possible case for Scotland.

[John Glen (Salisbury) (Con)]

6. what discussions he has had with the Department for Work and Pensions on the implementation in Scotland of proposals to establish a universal credit.

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[Michael Connarty (Linlithgow and East Falkirk) (Lab)]

8. What discussions he has had with the Chancellor of the Exchequer on the implications of the mechanisms for calculating the effects of the comprehensive spending review year on year in Scotland.

[The Secretary of State for Scotland (Michael Moore)]

The Scottish Government’s budget is calculated using the Barnett formula. The Chancellor has set out a decisive plan to reduce the UK’s unprecedented deficit and restore confidence in the UK economy. For Scotland, the spending review provides a fair deal in tough times.

[Michael Connarty]

The Secretary of State has not answered the question. I was asking about the year-on-year calculations. Is it not a fact that his Tory puppet-masters offered the Scottish National party Government a deal whereby there is less of a cut in the first year and more of a cut in future years to help the SNP in its efforts to get re-elected as the Scottish Government? Will the Secretary of State talk about the implications year on year for future years, when Scotland will be punished more than it is being this year?

[Michael Moore]

May I reassure the hon. Gentleman that his fears about political machinations are ill founded? I can confirm, however, that, in response to a request from the Scottish Government, flexibility was given to transfer some of the in-year savings from the current financial year to future years. It is for the Scottish Government to respond to, and make decisions on, such matters, and they are accountable for the spending choices they will make for the next four years.

[Angus Robertson (Moray) (SNP)]

The UK Government have known for months the social and economic consequences of defence cuts in Scotland, so will the Secretary of State confirm what specific resources were allocated as part of the comprehensive spending review to mitigate the effects of base closures?

[Michael Moore]

I welcomed the opportunity to meet the hon. Gentleman in Moray last week. I recognise that the decisions taken in the defence review following an overall assessment of Britain’s national security needs have not been good for him and his constituents, and I appreciate that there is a lot of concern about the future. I repeat today what I said in Moray: I am happy to work with the hon. Gentleman to ensure we work through the consequences of this.

[Angus Robertson]

So, one week after the closure announcement, is the Secretary of State confirming to the House today that no specific resources have been put in place and that the UK Government are providing no support on the ground in places such as Moray?

[Michael Moore]

I am happy to repeat what I made clear to the hon. Gentleman when we were in Moray: we will work with him, the taskforce and others who are interested in the future of the Moray bases to ensure we resolve things as well as possible. May I also assure the hon. Gentleman, particularly since he has raised this issue separately this week, that no decision has been taken on the future of the Tornadoes at RAF Lossiemouth?

[Mr Speaker]

Order. As usual at this time, far too many private conversations are taking place in the Chamber. That is very unfair on the hon. Member asking the question and the Minister answering it. Let us have a bit of order, therefore.

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[Robert Halfon (Harlow) (Con)]

15. What recent discussions he has had with ministerial colleagues on the relationship between the UK Government and the Scottish Executive under the devolution settlement.

[The Secretary of State for Scotland (Michael Moore)]

I have discussions with ministerial colleagues on a range of issues, including the relationship between the UK Government and the Scottish Government under the devolution settlement. We will introduce a Scotland Bill in the near future, which will implement our proposals for strengthening and deepening the devolution settlement for Scotland.

[Alun Cairns]

Does the Secretary of State believe that the public in Scotland recognise the need to tackle the budget deficit? If so, will he condemn the Scottish Executive for manufacturing disagreements with the Westminster Government and encourage them to work constructively with the Scotland Office on tackling the budget deficit?

[Michael Moore]

I certainly agree with my hon. Friend that the settlement for Scotland was better than the Scottish Government anticipated, and it should now be for them to get on with setting out their plans for not only the next year, but the next four years.

[Robert Halfon]

Does the Secretary of State recognise that residents in my constituency and elsewhere believe that alongside his plans for Scottish devolution, England deserves a fair constitutional settlement, with English votes for English laws?

[Michael Moore]

The hon. Gentleman’s passionate case has been heard in a very busy Chamber, but I am concentrating on getting on with the continuation of Scottish devolution.

[Mr Jim Hood (Lanark and Hamilton East) (Lab)]

Will the Secretary of State accept that this would be an excellent subject for discussion in the Scottish Grand Committee? Can he have a word with the Leader of the House, who is sitting two up from him, so that we can immediately initiate the next meeting of that Committee, which has not sat for many a year?

[Michael Moore]

I pay tribute to the hon. Gentleman for his unhesitating campaigning on this issue, but may I gently point out to him that the imminent publication of the Scotland Bill means that there will be more than a little chance to debate these issues?

[Pete Wishart (Perth and North Perthshire) (SNP)]

Does the Secretary of State not agree that the relationship between Westminster and the Scottish Government has gone from being one of respect to one of almost total contempt? Why will the UK Government not consult the Scottish Government in advance about very important constitutional issues?

[Michael Moore]

I am absolutely astounded by the hon. Gentleman’s charge because, unlike the previous Government, we have gone out of our way to work with the Scottish Government to ensure that this takes place. [Interruption.] We cannot get around the fact that there are fundamental disagreements about the way we see the constitutional settlement developing, but I say to him that we have been sharing information and discussing things with his ministerial colleagues in Scotland regularly, and we will continue to do so—I hope that they will engage.

[Mr Speaker]

Order. There is still far too much noise in the Chamber. I want to hear Mr Frank Doran.