Oral Answers to Questions

Michael Moore Excerpts

Wednesday 9th November 2011 Commons Chamber

[Jim Sheridan (Paisley and Renfrewshire North) (Lab)]

7. What recent discussions he has had with the First Minister on the construction industry in Scotland.

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

I recognise the vital role that the construction industry plays in the Scottish and UK economy. The plan for growth includes a wide range of measures to support the industry across the UK. I have regular discussions with Scottish Ministers on these and other matters of importance to the Scottish economy.

[Mr Brown]

May I say to the Secretary of State that his Under-Secretary and I have one thing in common? We still have construction workers who remain unemployed after R & D Construction went into administration earlier this year. Does the Secretary of State fully recognise that throughout the UK, and especially in Scotland, there are far too many unemployed construction workers, who desperately want to get back to work? He needs to encourage the Scottish Government to stimulate that sector.

[Michael Moore]

I agree that we must take all appropriate measures to get the economy on the right footing. As he will appreciate, we have a big challenge clearing up the mess left by the previous Government and the challenging situation in the eurozone, but we are determined, through our credible deficit plan and with a strong economy, to get construction and other sectors in the right place.

[Jim Sheridan]

The Secretary of State might be aware of the major lobby today by construction workers throughout the UK, many of them from Scotland. They are concerned about proposals by six national construction companies to change the national agreement for electricians. Given what is going on in Scotland, when he next meets the First Minister will he remind him of the excellent work being done in both Parliaments in providing quality partnerships? The proposal by those construction companies could undermine all that good work.

[Michael Moore]

I agree that it is vital that the UK Government and the Scottish Government work together. Whether that is on terms and conditions or on the general state of the economy, it is extremely important. We as the UK Government have taken important steps to support the Scottish Government in their efforts with the economy.

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

Is my right hon. Friend aware of the considerable construction activity taking place prior to deployment of marine energy in the Pentland firth, particularly at places such as Scrabster harbour? What more can this Government do to ensure that the right infrastructure is constructed now so that we benefit from the opportunity of marine renewable energy in the future?

[Michael Moore]

As my hon. Friend knows, through our plan for growth, which sets out the basis on which we will support the economy through these difficult times—cutting corporation tax, reducing the burden of income tax, reducing the national insurance burden and, with a huge investment in marine renewables, reforming the energy market—we are laying the foundations for that important sector to develop. It is important that that is not undermined by the uncertainty that the independence referendum is causing in Scotland at present.

[Angus Robertson (Moray) (SNP)]

A competitive tax position is vital for the construction sector and the rest of the Scottish economy. That is why the Scottish Government have called for the devolution of corporation tax powers. Will the Secretary of State confirm that the UK Government are actively considering the devolution of corporation tax to Northern Ireland?

[Michael Moore]

The hon. Gentleman knows full well that we have had a consultation about corporation tax devolution to Northern Ireland and we are reviewing the responses to it. I wish we could say the same for the response to the Scottish Government’s consultation on their corporation tax proposals. We have asked a series of fundamental questions about the proposals but they have gone unanswered. We have yet to see the consultation responses, so I suggest the hon. Gentleman ask his friend the First Minister to get on with that.

[Angus Robertson]

The Secretary of State has taken the opportunity in the past to say that the UK Government will consider the devolution of corporation tax powers to Scotland, but Dr Graham Gudgin, an adviser to the Northern Ireland Secretary, confirmed in evidence to the Scottish Parliament that the UK Government have already ruled out the devolution of corporation tax “under any circumstances”. Both statements cannot be true, so which is true?

[Michael Moore]

We have said that we want to consider any valid proposals brought forward by the Scottish Government, but they must first establish a credible, detailed position, maintain the consensus across the parties and ensure that there is no detriment to Scotland or the rest of the UK. The Scottish National party and the First Minister have so far failed to deliver the detail.

[Margaret Curran (Glasgow East) (Lab)]

I ask the Secretary of State to pay particular attention to the concerns raised this morning about the construction industry in Scotland, where 10,000 jobs have been lost this year and the number of companies facing bankruptcy has risen by 135% in the past two years. With that in mind, will he support Labour’s call, and that of the Scottish Building Federation, for a one-year cut in VAT on home improvements to 5%, a specific action to help boost the construction industry and get the Scottish economy moving again?

[Michael Moore]

I welcome the hon. Lady to her new post, without, if I may say so, wishing her too much success in it. She brings a great deal of experience to the House and I look forward to our encounters. We have heard Labour’s proposals for reducing VAT, but I have to tell her that when that was last done it did not deliver the hoped-for outcome. As we are seeing across the eurozone, countries cannot spend their way out of a debt crisis. We need a credible plan and we have to deliver on it, which is what we are doing.

[Margaret Curran]

I thank the Secretary of State for his kind opening remarks and look forward to robust debates and work in the coming years. I am sorry to say that his answer is completely inadequate, because previous VAT cuts did deliver growth. The Government’s failed policies mean that they are set to borrow £46 billion more this year, rather than reduce the deficit. In reality, Scots face a double-whammy: a Tory-led Government cutting too far and too fast, and an SNP Government presiding over stagnant growth and cuts in capital spending. Scotland is in the midst of a crisis—a jobs crisis and a growth crisis. If he will not follow Labour’s five-point plan to boost jobs and growth in Scotland, what specific action will the Government take in Scotland and for Scotland to get our economy moving again?

[Michael Moore]

The hon. Lady cannot skip so lightly away from the mess we inherited from the previous Government: the highest deficit in peacetime history and we were borrowing £1 for every £4 we spent, which was simply unsustainable. It is absolutely vital that we keep to our credible deficit reduction plan and deliver on the plan for growth by cutting corporation tax, maintaining low interest rates and reducing regulatory and national insurance burdens. As far as Scotland is concerned, I agree that the tax hike in the Scottish Government’s spending review is bad for business. They must acknowledge that we have helped with pre-payments for the replacement Forth crossing and by making land available from the Ministry of Defence. We are helping the Scottish Government in many ways.

[Kevin Brennan (Cardiff West) (Lab)]

2. Whether he has a policy on a threshold that would be required to vote in favour of independence before legislating for Scottish independence.

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

The Government have no such policy. The Scottish Government have said that they will introduce proposals for a referendum, and we urge them to end the delay and uncertainty by doing so. Whenever there is a referendum, the UK Government will make the case for a prosperous Scotland in a modern UK.

[Kevin Brennan]

Should not any referendum that has profound implication for Wales, Northern Ireland and England as well as Scotland involve an absolutely clear and straightforward choice between remaining in the UK and separation, rather than muddying the waters with what my hon. Friend the Member for Glasgow South (Mr Harris) has called the “I can’t believe it’s not independence” option?

[Michael Moore]

The hon. Gentleman makes a fair point. With a BBC poll at the weekend showing that barely a quarter of Scots favour independence, it is no great surprise that the SNP is taking Scotland for granted and running away from an independence poll. It is creating uncertainty that is damaging for business. Let us have a clear question and get on with it.

[Mrs Eleanor Laing (Epping Forest) (Con)]

In considering Scottish independence, has the Secretary of State seen recent legal advice stating that an independent Scotland would be either outside the European Union, and therefore would lose EU funding and access to free markets, or required to join the euro as a new accession state? Does he agree that that is further evidence that breaking up the UK would be bad for the people of Scotland?

[Michael Moore]

I absolutely agree with my hon. Friend. The idea that the SNP can take it for granted that Scotland would enter the EU without negotiation and consideration of such issues is entirely fanciful. That is part of the uncertainty that needs to be resolved sooner rather than later.

[Stewart Hosie (Dundee East) (SNP)]

On 8 May the Scottish Secretary ruled out a 40% rule in a rigged referendum. He also said that the referendum was entirely a matter for the Scottish Government and that he would not be raising any constitutional questions. Does he stand by that?

[Michael Moore]

I do not think we should take any lessons on rigged referendums from the hon. Gentleman’s party, which is determined not to have a straightforward question on Scottish independence—the whole reason it exists—but to bring in other issues as well. Let us get a straightforward question now and end the damaging uncertainty.

[Mr Peter Bone (Wellingborough) (Con)]

3. What steps he is taking to reduce administrative costs in his Department.

--- Later in debate ---

[Mark Menzies (Fylde) (Con)]

4. What recent assessment he has made of the benefits to Scotland of the Union; and if he will make a statement.

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

As part of the United Kingdom, Scotland’s economic opportunities are larger, our public finances are more robust, our defence is stronger, our influence on the international stage is greater, the welfare system is more secure and our cultural and family ties are closer. Those are just half a dozen reasons why we are stronger together.

[Mark Menzies]

Does the Secretary of State agree that, given the tough economic crisis facing small European countries, the worst thing for Scotland would be to become a small independent country dependent on the eurozone, rather than being part of the United Kingdom and having the strength that brings?

[Michael Moore]

My hon. Friend is absolutely right to highlight the issues that face Scotland if it chooses to be independent and the fact that such a process cannot take place without some very hard-nosed negotiations with our European partners, who are facing real difficulties all over the continent. We need the SNP to spell out its plans on how it will deal with those issues—then let us get on with the independence referendum.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Does the Secretary of State agree that the social union, the Commonwealth, the monarchy and particularly the current Queen—Queen Elizabeth—will be important whatever constitutional arrangements Scotland has in the future? That, of course, would mirror the situation in independent Canada, New Zealand and Australia, with Scotland being the Queen’s 17th independent realm.

[Michael Moore]

I understand the hon. Gentleman’s passion for Scotland’s independence, but I wish it were shared with some intention to get on with the debate. The chairman of the independence campaign is sitting beside him. What are they scared of? Let us get on with it.

[Sir Menzies Campbell (North East Fife) (LD)]

My right hon. Friend has outlined the benefits to Scotland of European Union membership and the uncertainty that would surround those benefits in the event that Scotland were to be independent. Does he agree that it would help to resolve that uncertainty if the Scottish Government published the legal advice they have had on the point, so that it may contribute properly to the debate?

[Michael Moore]

My right hon. and learned Friend makes a very important point. The idea that we would somehow simply get membership of the European Union with complete agreement, without discussion and without needing to worry about the terms of negotiation is quite fanciful. It is a journey into the unknown and we need to have the detail.

[Mr William Bain (Glasgow North East) (Lab)]

One of the many benefits associated with the Union is the certainty provided by Scotland’s continuing membership of the European Union. Has the Secretary of State seen the impartial Library research published yesterday, which indicates that Scotland may have to go through an accession process to stay in the EU if it becomes a separate state? That research also shows that if Scotland were accepted as a member state, according to the most recent data, net annual contributions to the EU from Scottish taxpayers would rise to £92 per capita compared with only £57 per capita from the rest of the UK. Would it not be contrary to Scotland’s national and economic interests to separate from the rest of the UK if it meant Scotland ended up out of the EU or paying more to stay in the EU, and only if it adopted the euro?

[Michael Moore]

I welcome the hon. Gentleman to his new role, in which he is already demonstrating his forensic attention to detail. I am delighted that he has put his point across, and I completely agree with him about the uncertainty that all this causes.

[John Robertson (Glasgow North West) (Lab)]

5. What recent discussions he has with Ofgem on energy prices in Scotland.

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

I recently discussed this issue with Ofgem and other key stakeholders at the energy summit I held in Bathgate on 20 October. This Government are determined to help people to reduce their energy bills and I welcome Ofgem’s recent proposals to reform the retail energy market.

[John Robertson]

The right hon. Gentleman’s Government want to put a bonfire under quangos, so how does Ofgem chairman Lord Mogg’s £200,000-a-year salary for a three-day week sit with not going above the Prime Minister’s salary?

[Michael Moore]

rose—

[Mr Speaker]

Order. We are talking about energy prices rather than salaries, but I am sure that the talents of the Secretary of State will allow him to remain in order.

[Michael Moore]

I am delighted to say to the hon. Gentleman that I recognise his long-standing concerns on all these issues—not only salaries but energy prices. Our proposals to simplify matters and to help people to switch and to get greater transparency in their bills, and all the other reforms being introduced by Ofgem, are crucial. I look forward to Ofgem getting on with that work.

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

One of the key groups of customers facing high energy prices this year is those who are not on the gas main and heat their homes with oil, LPG and other fuels. At the moment, sadly, Ofgem does not have a remit for them. Will my right hon. Friend discuss with the Secretary of State for Energy and Climate Change whether there is any way that those suppliers can be made to engage with their vulnerable consumers in the same way as mains gas suppliers have to?

[Michael Moore]

My colleagues in the Department for Energy and Climate Change will meet to discuss this in the next few weeks. My hon. Friend is right to highlight the issue, and I look forward to picking it up with him at some time in the near future.

[Mr Mike Weir (Angus) (SNP)]

Yesterday the Secretary of State for DECC sent a letter to all MPs promoting the Government’s policy of check, switch and insulate, but how does the Secretary of State suggest that off-grid customers can check or switch when in many areas there is a virtual monopoly on home fuel oil? [Interruption.]

[Mr Speaker]

Order. Far too many private conversations are taking place in the Chamber. We need to hear the Secretary of State.

[Michael Moore]

As I said in answer to my hon. Friend the Member for West Aberdeenshire and Kincardine (Sir Robert Smith), we want to discuss these issues. Representing a big rural area without gas grid access, I recognise that this is an important matter, and I am happy to discuss it with the hon. Gentleman too.

[Mike Freer (Finchley and Golders Green) (Con)]

6. What assessment his Department has made of the report of Electoral Commission Scotland on the 2011 elections to the Scottish Parliament; and if he will make a statement.

--- Later in debate ---

[Mr Frank Doran (Aberdeen North) (Lab)]

8. What recent discussions he has had on the deployment of carbon capture and storage technology in Scotland.

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

My most recent meeting with the Secretary of State for Energy and Climate Change to discuss this issue was on 10 October. Although it was not possible to reach a deal on Longannet, the Government remain firmly committed to carbon capture and storage and I welcome the confirmation given by the Treasury that the £1 billion of funding will be made available for future CCS projects.

[Mr Doran]

The Government in the 1980s refused to invest in wind power and threw away our world lead in renewables. Are this Government making the same mistake by refusing to invest in the most advanced industrial-scale carbon capture and storage project in the world at Longannet?

[Michael Moore]

I do not agree with the hon. Gentleman on that, but I do agree that we are determined to see Britain take a leading role in this important technology. That is why the £1 billion of investment is still available and why Peterhead and other parts of the UK will be able to bid for it.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

I hope that the Secretary of State will welcome this morning’s announcement by Scottish and Southern Energy and Shell that they are bringing the project at Peterhead one step closer. What assurances can he give that the project will not be shelved, as the last Peterhead project for carbon capture and storage was by the previous Government, and that we will see this investment?

[Michael Moore]

In a week when a major international bank has talked about the impact that the uncertainty over independence is having on renewables investment in Scotland, we will take no lessons from the SNP about uncertainty. As I said to the hon. Member for Aberdeen North (Mr Doran), it is vital that Peterhead and other places come forward with their bids, and £1 billion is available to support them.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

9. What discussions he has had with the First Minister on reform of the common fisheries policy.