Oral Answers to Questions

Michael Moore Excerpts

Wednesday 1st December 2010 Commons Chamber

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

1. What (a) recent meetings he has had and (b) meetings he plans to have with representatives of Scottish Power to discuss the energy industry in Scotland.

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

I have regular meetings with the energy industry, including with Scottish Power, and will continue to do so, given the sector’s importance to the Scottish economy.

[John Robertson]

I thank the Secretary of State for his answer. He says that he has had these meetings, yet British Gas, Scottish Power and Scottish and Southern Energy have said that on no occasion has he ever discussed the price hiking that these companies are undertaking. When will he try to support the people of Scotland by doing something about the price hikes?

[Michael Moore]

What I recognise is the importance of ensuring that we get a fair deal for consumers, as well as for the shareholders—the companies are concerned about that. As the hon. Gentleman will know, Ofgem has announced an inquiry into consumer protection and competition in the sector. I expect that to be a very thorough process.

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

I am glad to see that the Secretary of State was able to get back from Scotland to be here today, despite the cold weather and the travel difficulties. Given that cold weather, and the increase in energy bills that many people have experienced, is he aware of the concern among many of my constituents and many others that the most vulnerable people will struggle to pay their bills, when they should be entitled to be on social tariffs? Will he therefore undertake to convene a summit of the six energy companies to discuss, in particular, what they are doing to ensure that people who should be on social tariffs are on them, and that people in Scotland are not left cold at home this winter?

[Michael Moore]

I am glad of the hon. Gentleman’s welcome, and I appreciate, as he will, that many people in Scotland, and indeed in the whole of the United Kingdom, have been struggling to get to work and go about their business today. He rightly focuses on temperature and the fact that this will cause extra difficulty for people, so I am sure he will welcome the fact that we are maintaining the cold weather payments and the winter fuel allowance. I am certainly happy to discuss ideas of getting together with the different energy companies to make sure that they are properly focused on the needs of their customers.

[Anas Sarwar (Glasgow Central) (Lab)]

2. What discussions he has had with the UK Border Agency on the cancellation of its contract with Glasgow city council to provide services to asylum seekers.

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[Mr David Amess (Southend West) (Con)]

4. What recent discussions he has had with the First Minister on the relationship between the UK Government and Scottish Executive with regard to economic policy under the devolution settlement.

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

I have had a number of exchanges with the First Minister in recent weeks. Yesterday, the Scotland Bill was introduced in this House. If enacted, the Bill will strengthen devolution by giving the Scottish Parliament a financial stake in the Scottish economy while maintaining the economic strength we all desire from being in the United Kingdom.

[Mr Amess]

Now that we know that the Scottish nationalist party—[Hon. Members: “National party.”] It put Holyrood’s tax-raising powers out of commission for two years without telling the Scottish Parliament. Does the Secretary of State agree that the Scottish Government should be made more accountable for their financial management to such an extent that there should be a closer relationship between economic growth and how much money is spent?

[Michael Moore]

My hon. Friend makes some interesting observations. I can confirm that the Scotland Bill, if enacted, will provide exactly what he asks for. It will empower the Scottish Parliament, increase its financial accountability and secure Scotland’s place in the United Kingdom.

[Angus Robertson (Moray) (SNP)]

Where the Scotland Bill makes a real difference to the lives of people in Scotland and to the Scottish economy, it will have the support of the SNP. During the passage of the legislation in this House, will the Secretary of State and his Tory colleagues accept improvements that will deliver additional powers that will give the Scottish economy a competitive advantage?

[Michael Moore]

I welcome the hon. Gentleman’s initial comments. As he is aware, the Bill introduced yesterday and the Command Paper that goes with it are the result of the work not just of the Conservative party and the Liberal Democrats but of the Labour party and others across Scotland. I hope that we will get proper engagement. I am confident that the measures in the Bill get the balance right for Scotland. They are right for this time and I am sure that they will pass the test of time.

[Angus Robertson]

The Secretary of State knows that many of Scotland’s leading businessmen and women issued a statement this week, in which they said that there must be

“real economic levers to help sustain recovery and grow the economy.”

Will the Secretary of State and his Tory colleagues reconsider their plans and consider improvements to the legislation, such as devolving corporation tax to help business grow?

[Michael Moore]

I listen carefully to a range of opinion from business and elsewhere about the future of Scotland’s—

[Mr Speaker]

Order. I apologise for interrupting the Secretary of State. I do not know what the hon. Member for Blyth Valley (Mr Campbell) had for breakfast this morning, but I am not sure that it has had the desired effect. [Interruption.] Order. The hon. Gentleman must not rant at the Government Chief Whip or anybody else. He must calm himself—it is better for his health if he does.

[Michael Moore]

If I can repeat what I was saying before your intervention, Mr Speaker, I listen carefully to a range of opinion from across business and different sectors of Scottish society. The business community was well represented in the Calman commission, which produced and supported the proposal. We will continue to listen to a range of opinion, but we have no intention of devolving powers over corporation tax.

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

In 1997, the Scottish people voted to give the Scottish Parliament tax-varying powers, but in a disgraceful and secret decision, the SNP Government gave up those powers. I welcome the Scotland Bill. Will the Secretary of State assure us that those tax-varying powers will remain with the Scottish Parliament and that the Bill will be phrased in such a way that, were the SNP ever elected again, it would not be able to give up those powers in a secret decision?

[Michael Moore]

As my hon. Friend knows, the consequences of the Scottish Government’s decision not to maintain the Scottish variable rate have been debated in the Scottish Parliament in recent days. The fundamental difference between the existing arrangements and what will follow if the Bill is enacted is that the Bill will create a Scottish income tax that sits alongside United Kingdom income tax, and there will be a requirement to set that rate every year. That is a fundamental change, and it will bring the accountability and empowerment that I discussed earlier, which will be a good thing for Scotland.

[Ann McKechin (Glasgow North) (Lab)]

It is shocking that both the UK and Scottish Administrations are failing to prioritise job growth. While there was a slight fall in UK-wide unemployment last month, the jobless total for Scotland continued to increase. The latest figures show that in Campbeltown an astonishing 13 claimants are chasing every available job. Our youngest people are suffering the most, and if Labour wins in 2011, we are committed to continuing the future jobs fund to help them into work. Why is the Secretary of State set on removing that vital support, while at the same time supporting tax cuts for our biggest banks, which are at the root of our economic problems?

[Michael Moore]

That was an interesting insight into the Opposition’s economic policy, although I realise that Opposition Front Benchers are divided on exactly what it should be. I remind the hon. Lady that we are dealing with the consequences of the largest deficit in peacetime history—£155,000 million. We took urgent action to deal with that, which has drawn us back from the danger zone. We will announce proposals in due course on the Work programme which will replace the future jobs fund. We are dedicated to ensuring that we create the conditions for growth and for a private sector-led recovery to deal with the problems that we inherited.

[Mr Speaker]

Order. In replying, the Secretary of State must bear in mind that we are referring to economic policy rather than higher education policy.

[Michael Moore]

It is interesting that the hon. Lady interpreted the question by seeking to get away from anything that might focus attention on Labour’s record on the economy and on our determination to create the conditions that will get us back to sustainable growth for Scotland and the United Kingdom.

[Mr Adam Holloway (Gravesham) (Con)]

6. What recent discussions he has had with representatives of the Scotch whisky industry; and if he will make a statement.

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

I regularly have exchanges with the industry and will be meeting the Scotch Whisky Association in the near future.

[Mr Holloway]

The Prime Minister’s recent trade delegation to China succeeded in securing geographical indication of origin status for Scotch whisky. How much will that be worth to the UK trade balance?

[Michael Moore]

The importance of the Scotch whisky industry, not just to Scotland but to the United Kingdom, is shown by the fact that it contributes roughly £4 billion to our economy, £3 billion of which is represented by exports. At the moment our exports to China are very small in comparison with those to the rest of the world. This important new concession—this agreement with the Chinese—which we very much welcome, will ensure that we can grow our exports in China as we have done in the rest of the world.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

I declare an interest as secretary of the all-party group on Scotch whisky and spirits. What representations has the Secretary of State made to the Treasury in connection with the imbalance in the tax on whisky?

[Michael Moore]

As the hon. Gentleman will know from his distinguished position, the industry is well represented in discussions with the Treasury at all times throughout the year, as it was under the previous Administration. I continue to have discussions with my Treasury colleagues on this very important issue, and will continue to do so in the months ahead.

[Stewart Hosie (Dundee East) (SNP)]

The Secretary of State will know that only yesterday the Scotch Whisky Association said that the Treasury’s review on alcohol tax was a missed opportunity. Will he confirm to the House today that he will make specific representations to his Treasury colleagues for fair taxation of all alcoholic drinks based on their alcohol content only, and no other spurious issues?

[Michael Moore]

The hon. Gentleman has a distinguished record of following these issues very carefully. He will have made representations, as has the industry. The review was concluded a few weeks ago and will report in due course. As I said in answer to the earlier question, I will continue to discuss these issues with the Treasury.

[Greg Hands (Chelsea and Fulham) (Con)]

7. What assessment he has made of the lessons learned from the 2010 Delhi Commonwealth games which could inform his Department’s contribution to the 2014 Glasgow Commonwealth games.

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[Julian Smith (Skipton and Ripon) (Con)]

8. What recent discussions he has had with ministerial colleagues on measures to promote economic growth in Scotland.

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

I have regular discussions with ministerial colleagues on this issue. In the spending review, the UK Government took decisive action to reduce the inherited record deficit. Along with the June Budget, the spending review has set the conditions to promote a balanced economy and sustainable economic growth for all parts of the UK.

[Julian Smith]

The Scottish Government used to be very keen on the economic growth achieved by Ireland. Will the Secretary of State assure me that, as well as taking measures to promote growth, he will ensure that the First Minister has fiscal responsibility at the top of his agenda?

[Michael Moore]

All of us are very concerned about what has happened to Ireland in recent months, and our Government have set out some very important steps that we are taking to contribute to the recovery in Ireland and other parts of Europe. We need to ensure Scotland’s place within the stability of the United Kingdom. The Scotland Bill, given its First Reading in this House yesterday, will ensure that we give Scotland the tools to achieve that, and I hope that it will be an Act in due course.

[Mr Frank Roy (Motherwell and Wishaw) (Lab)]

For every job vacancy in Lanarkshire there are 10 people on jobseeker’s allowance. Indeed, in Motherwell and Wishaw, that figure rises to 12 or 13. What priority will the Secretary of State give to the Lanarkshire economy to ensure that it gets back on track as quickly as possible? [Interruption.]

[Mr Speaker]

Order. There are far too many private conversations of a noisy character taking place in the Chamber. I want to hear the Secretary of State.

[Michael Moore]

I recognise the challenges faced by Lanarkshire and other parts of the Scottish economy and by those who are looking for a job. As the hon. Gentleman will be aware, I visited Lanarkshire recently and met people who are working their way into employment, and students at Motherwell college. We have to keep focused, and we have to put in place the right conditions to ensure that we achieve a sustainable recovery across the country. I believe that the measures we are taking will ensure that that happens.

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

The Secretary of State will know from his visit to the north-east of Scotland just how important the region is, not just to the Scottish economy, but to the UK economy as a whole. We received a welcome boost this week with the announcement of the extension of the runway at Aberdeen airport and improvement in that transport link, but will he emphasise to the Scottish Government that all transport links in the north-east need to be improved? They do not need new levers to improve Scotland’s economy; they need to use the existing levers, as well.

[Michael Moore]

My hon. Friend makes an important point. Our Government here in the United Kingdom are committed to ensuring that we invest in infrastructure that will support growth, and we have produced other support for business that is geared towards growth, but I take his points about the Scottish Government. His points will have been heard, and I am sure that they will form the basis of further discussions between myself and Scottish Ministers.

[Pamela Nash (Airdrie and Shotts) (Lab)]

9. What recent discussions he has had with the Chancellor of the Exchequer on the effect on average household outgoings in Scotland of raising the rate of value added tax to 20%.

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[Mr Ian Davidson (Glasgow South West) (Lab/Co-op)]

11. What recent assessment he has made of trends in the level of employment in Scotland; and if he will make a statement.

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

In recent months, the numbers in employment have been rising in Scotland, though overall labour market trends remain mixed. This Government will continue to create the conditions to foster sustainable and balanced economic growth.

[Mr Davidson]

What steps are the Government taking to ensure that unemployment in Scotland does not rise to the level in the Republic of Ireland—part of the circle of misery? Does he agree with me that a small country and bad banks result in misery for working people?

[Michael Moore]

I am happy to agree with the hon. Gentleman that Scotland benefits hugely from being part of the United Kingdom, and under our proposals set out in the Scotland Bill, it will firmly stay within the United Kingdom.

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

Does the Secretary of State agree that current levels of unemployment in Scotland are the fault of 13 years of mismanagement by the previous Labour Government and that the people of Scotland need to back this coalition Government to give Scotland a chance again?

[Michael Moore]

Since this Government came to office, they have taken decisive action to tackle the issues that we inherited—a record deficit of £155,000 million. We have pulled Britain back from the danger zone, we are setting out the conditions for sustainable economic growth, and that is the right way for this country.

[Mel Stride (Central Devon) (Con)]

12. What recent estimate he has made of levels of economic growth and inward investment in Scotland.

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

The latest official statistics show strong economic growth in Scotland in the second quarter of this year. We are determined to ensure that Scotland will benefit as the Government tackle the deficit to secure growth, and provide the confidence that businesses and individuals need to invest.

[Mel Stride]

Can my right hon. Friend tell the House whether those figures support the claim made by the last Labour Secretary of State for Scotland that the right hon. Member for Witney (Mr Cameron) would be a “kamikaze” Prime Minister who would “plunge” Scotland “back into recession”?

[Michael Moore]

Funnily enough, I completely disagree with that assessment. I am pleased to say that not only has the Prime Minister led the Government’s efforts to get us away from the danger zone that the economy was in, but he has set out a constitutional path for Scotland that will enhance its economic growth and keep it within the United Kingdom.

The Prime Minister was asked—

Scotland Bill (Publication)

Michael Moore Excerpts

Tuesday 30th November 2010 Written Statements

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

Today the Scotland Bill has been introduced in the UK Parliament. This Bill delivers the commitment in the coalition Government’s programme for government to strengthen and deepen the Scottish devolution settlement. Our proposals, based on the recommendations of the Commission on Scottish Devolution, will extend and develop the arrangements set out in the Scotland Act 1998, which established the first democratically elected Parliament for Scotland.

The Commission was set up by the Scottish Parliament and supported by the UK Government. The Commission’s remit was:

“To review the provisions of the Scotland Act 1998 in the light of experience and to recommend any changes to the present constitutional arrangements that would enable the Scottish Parliament to serve the people of Scotland better, improve the financial accountability of the Scottish Parliament, and continue to secure the position of Scotland within the United Kingdom”.

The Commission, under the chairmanship of Professor Sir Kenneth Caiman, produced a detailed report that was founded on a robust evidence base, sound analysis and extensive engagement with people in Scotland. The consensus arrived at by the Commission was clear: the devolution settlement in Scotland has been “a remarkable and substantial success”. The Commission’s key conclusion was that devolution has brought clear benefits for Scotland, ensuring that Scottish solutions can be developed for Scottish problems. The Scottish Parliament has established itself firmly in public life, bringing greater accountability to the people of Scotland, and innovation in both policy and working methods.

But crucially, the Commission also highlighted a number of areas for reform within the devolution settlement to ensure that it continues to deliver for people in Scotland. The key area of reform related to financial accountability. The Scotland Bill will ensure that from now on the Scottish Parliament and Government can be held to account not just for how they spend money, but also for how they raise it. This imbalance between power and responsibility within the existing Scotland Act will be addressed in the Bill introduced today.

The Scotland Bill creates a new Scottish rate of income tax. The current block grant funding from the UK Government to Scotland will be adjusted in exchange for power for the Scottish Parliament to raise its own taxes. This new tax-raising power will apply alongside the existing UK-wide income tax. In Scotland, the UK rates of income tax will be reduced by 10p from the lower, higher and top rates of income tax. The Scottish Parliament will then make a tax decision to levy a single additional rate, which can either match UK rates, or go higher, or lower. This will replace the Scottish Parliament’s existing power to vary income tax in Scotland by up to 3p, up or down.

In line with the Commission recommendations, the finance changes will be introduced carefully with transitional arrangements in place to ensure there is no windfall gain or adverse shock to the Scottish budget. This new tax-raising power will be in place for the Scottish Parliament elected in 2015. The Scotland Bill also devolves responsibility for two smaller taxes to the Scottish Government: stamp duty land tax and landfill tax. In addition, the Bill will provide the Scottish Government with a substantial power to borrow to finance capital expenditure and a power to borrow to finance current expenditure when tax receipts are less than expected.

The Scotland Bill also sets out a number of adjustments to the distribution of reserved and devolved responsibilities. The Scottish Parliament and Government will take on power to regulate air weapons, set the drink-drive limit and set national speed limits. The Commission, on the basis of the evidence, concluded that some areas would be better administered at the UK level and so in two areas—the regulation of health professions and the administration of corporate insolvency—the Scotland Bill will transfer power back to the UK Parliament and Ministers.

The Scotland Bill is just part of the Government’s response to the Commission’s recommendations. The Bill is accompanied by a Command Paper which sets out how the Government are responding to all the recommendations from the Commission, not only improving the legal framework that established devolution in Scotland, but also supporting the relationships between officials, Ministers and Parliaments to ensure its continuing success.

The Scotland Bill demonstrates the determination of the coalition Government to ensure that the Scottish Parliament is empowered to meet the needs of the Scottish people. Both the Bill and the accompanying Command Paper set out the bold reforms the Government are taking to strengthen the Scottish Parliament and the Scottish Government. Once the measures included in the Scotland Bill and this paper are fully implemented, a historic shift in power will have been accomplished. The Scottish Parliament and Scottish Ministers will have more powers, be more accountable, and be able to be more responsive to Scotland’s needs within the framework of a strong and stable United Kingdom.

Copies of the Command Paper which accompanies the Bill have been placed in the Libraries of both Houses and the Vote Office.

Departmental Expenditure Limits

Michael Moore Excerpts

Tuesday 23rd November 2010 Written Statements

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

Subject to parliamentary approval of the necessary supplementary estimates, the departmental expenditure limit (DEL) for Scottish Government will be increased by £302,413,000 from £28,401,374,000 to £28,703,787,000. Within the total DEL change, the impact on resources and capital is set out in the following table:

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.

Oral Answers to Questions

Michael Moore Excerpts

Wednesday 21st July 2010 Commons Chamber

[Julian Smith (Skipton and Ripon) (Con)]

1. What recent discussions he has had with CBI Scotland on the condition of the Scottish economy.

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

I have had productive discussions with CBI Scotland and others on the Scottish economy, as has my right hon. Friend the Under-Secretary, and I plan to meet them again in the near future. Our plan to cut the record budget deficit that this Government inherited is the key to ensuring a sustained economic recovery.

[Julian Smith]

In the years to come, it must be the private sector that creates the growth and jobs in Scotland; it is not realistic to have an ever-increasing public sector there. Does the Secretary of State agree that for my constituents in Skipton and Ripon to be funding an ever-expanding Scottish state is an unfair situation?

[Michael Moore]

Across the United Kingdom we inherited a huge deficit in the public finances, which we have to tackle. If we do not, it will not be in just the private sector but the public sector where difficulties will arise.

[Angus Robertson (Moray) (SNP)]

Recent economic indicators show that the recession in Scotland has been shorter and shallower than in the rest of the UK, but the recovery is fragile. Does the Secretary of State therefore agree that the case for proper financial responsibility in Scotland to help drive economic growth makes sense?

[Michael Moore]

I quite accept the underlying figures that the hon. Gentleman refers to, and the situation in Scotland and in the whole of the UK is indeed challenging. However, as far as future financial accountability and other issues in Scotland are concerned, we believe that the Calman proposals, which we will bring forward in this House, offer the best way forward.

[Angus Robertson]

Professor Andrew Hughes Hallett, who advised the Calman commission, says that proper fiscal responsibility could significantly add to Scotland’s GDP. Is the Secretary of State looking closely at the proposals for growth and not just at a funding mechanism, which will not achieve that?

[Michael Moore]

I am sorry but I do not accept the hon. Gentleman’s proposition, and nor should he ignore the others who sat with Professor Hughes Hallett on the Calman commission expert group. They have recently again made it plain that they believe these are the most appropriate powers to give to Scotland at this time.

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

In my right hon. Friend’s discussions with the CBI, did he recognise that it is very important to build on the success stories in Scotland in order further to advance the Scottish economy? To that end, with the north-east of Scotland providing so much revenue to the Treasury, will he ensure that all levels of government realise how important it is that there be no barriers to investment there, and that companies locating there benefit both the region and the UK?

[Michael Moore]

My hon. Friend is absolutely right about that, and in getting private sector-led recovery in this country, businesses such as those in the energy sector in the north-east will be absolutely critical. I take on board all the observations he makes.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

The right hon. Gentleman is having meetings with the CBI, but does he understand that the Government’s cancelling the third runway at Heathrow will have a remarkable effect on Scotland’s air transport system? What is he going to do about that?

[Michael Moore]

We fundamentally disagree with the proposal for the third runway, as the hon. Gentleman understands; we do not believe that it is appropriate either economically or environmentally. The important point is that, by ensuring that we work with the private sector across the whole of government—be it our proposals in the Budget to reduce corporation tax, or the many others to do with banking reform—we believe that we will create the right conditions for the private sector and the transport sector to recover and have a sustainable future.

[Mr Jim Murphy (East Renfrewshire) (Lab)]

Scottish employers know that the future jobs fund helps people back into work. The Secretary of State for Scotland claims that it is unsustainable, but he will not publish a shred of evidence to back up his assertion. Employers, the unemployed and even Liberal Democrats in his own constituency support the future jobs fund. As unemployment continues to rise across Scotland, I ask the Secretary of State this specific question: will he now agree to lobby the Chancellor to maintain the future jobs fund in Scotland?

[Michael Moore]

We had this exchange during the last Scottish questions, and the right hon. Gentleman has repeated the phrase that I used then. If I may, I will repeat the point I made then. The future jobs fund was not sustainable in the form it was in. May I remind him, as I did then, that places are still available under that scheme, which will run through to March next year? Some 11,000 places have been funded, but they were temporary, short-term jobs. We believe that a new system of supporting the unemployed is the best way forward.

[Mr Murphy]

So, the Secretary of State will not publish a shred of the evidence behind his assertion, and today he has confirmed that he will not even listen to Scotland and meet the Chancellor in order to maintain the future jobs fund and help the unemployed in Scotland. Does he not share the sense of anger across Scotland about the policy immorality of a gang of millionaire politicians cutting support to the most vulnerable people across Scotland? The only surprise for many people in Scotland is that he, as a Liberal Democrat, is going along with it. But perhaps Scotland should not be surprised, because he is fast developing a reputation not as Scotland’s man in the Cabinet, but as the Tories’ salesman in Scotland.

[Michael Moore]

The immorality would be for us to do nothing about the legacy left behind by the right hon. Gentleman’s Government, which is undermining the public sector and any prospect of a private sector recovery.

[Graham Evans (Weaver Vale) (Con)]

2. What recent discussions he has had with the Deputy Prime Minister on the implementation in Scotland of proposals to equalise the size of constituencies; and if he will make a statement.

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

By equalising the size of constituencies across the UK, we will ensure that people’s votes carry the same weight. We have proposed the two exceptions of Orkney and Shetland and the Western Isles to take account of their special geographic circumstances. The Bill that we will introduce will also provide for an upper limit on the geographical size of a constituency.

[Graham Evans]

In Scotland, there are urban seats that have an electorate of between 50,000 and 80,000; that disparity cannot be justified by extreme geography. Does the Secretary of State agree that it is disappointing that the previous Government had so little regard for the fundamental principle that every vote should have equal value? [Interruption.]

[The Comptroller of Her Majesty's Household (Mr Alistair Carmichael)]

This is Scottish questions!

[Michael Moore]

Yes, we have a few traditions to maintain. I agree with my hon. Friend the Member for Weaver Vale (Graham Evans) on the basic principle that votes should have equal weight across the country, wherever they are cast.

[Ann McKechin (Glasgow North) (Lab)]

Members of the House understand the unique geographical factors that affect island communities, but does the Secretary of State accept that it would be grossly unfair to Scotland’s great cities if their constituency numbers were artificially inflated as a result of that fact, to make up the difference, so that the Government can reach an arbitrary number plucked out by Conservative party central office? Surely the issue should be determined solely by the independent Boundary Commission, not the Conservative party that he seeks to support?

[Michael Moore]

The hon. Lady is trying to advance the very strange principle that across the country there should be different weights for votes, depending on where they are cast. We have to ensure that when we redraw the boundaries, we equalise out those votes to give them equal weight. If people need to register to vote, let us get on with ensuring that they do; there is a responsibility on all of us, and on local authorities, to ensure that that happens.

[Ian Murray (Edinburgh South) (Lab)]

3. What recent discussions he has had with the Secretary of State for Work and Pensions on the effects on levels of employment in Scotland of ending the future jobs fund.

--- Later in debate ---

[Lindsay Roy (Glenrothes) (Lab)]

5. What the proposed timetable is for implementation of the Calman commission’s recommendations.

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

As I outlined in response to questions from hon. Members on 16 June, I have asked officials to work for the autumn introduction of a Bill to take forward legislative proposals, with non-legislative recommendations taken forward under a similar time scale.

[Tom Greatrex]

I thank the right hon. Gentleman for that reply. He knows, or at least I hope he does, that one of the considerations in moving to a Scottish income tax, as proposed in a recommendation by the Calman commission, was whether Her Majesty’s Revenue and Customs systems would be able to collect it. They currently cannot; how does that fact correspond with the comments that the Chancellor made yesterday about tax simplification?

[Michael Moore]

As I have set out, we intend to engage fully with the different sectors in Scotland that will be affected by the changes. As the hon. Gentleman will be aware, we are heavily engaged with the Treasury and HMRC to work our way through the changes that will come as a consequence of Calman, which I believe his party still supports.

[Lindsay Roy]

Does the Secretary of State agree with the leader of the Liberal Democrats in the Scottish Parliament, Tavish Scott, when he says:

“Politicians should not be able to take easy spending decisions without the responsibility of accounting for this money. Blaming Westminster should not be a get-out clause”?

[Michael Moore]

I am in complete agreement with the hon. Gentleman.

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

Does the Secretary of State agree that the devolution settlement in Scotland depends on having free and fair elections to the Scottish Parliament? Does he not see that the integrity of those elections is in danger of being undermined by the Government’s deciding to hold a referendum on the alternative vote on the same day as elections to the Scottish Parliament?

[Michael Moore]

I regret having to disagree with my hon. Friend. We propose a referendum on the change to the voting system for this place on the same day as an election to the Scottish Parliament. We believe that that is entirely sensible. It will reduce cost, it will be more practical and it is on the same way of voting as in elections to the Scottish Parliament, so we will be able to cope with that without too much difficulty.

[Philip Davies (Shipley) (Con)]

6. Whether he has had discussions with the Deputy Prime Minister on the West Lothian question.

--- Later in debate ---

[Mr David Amess (Southend West) (Con)]

7. What recent discussions he has had with the First Minister on the relationship between the Government and the Scottish Executive under the devolution settlement.

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

I am regularly in contact with Ministers from the Scottish Government, including the First Minister, on a range of matters.

[Mr Amess]

I am delighted that the Prime Minister visited the Scottish Parliament on the third day of the new Government, unlike his predecessor who never visited there, but will the right hon. Gentleman have a word with the Prime Minister to encourage him to visit the Scottish Parliament again to have further discussions with the First Minister about the relationship between the Government and the Scottish Executive to see whether the new miracle cure for prostate cancer can be made available throughout England?

[Michael Moore]

I absolutely agree that my right hon. Friend the Prime Minister took an important step when he visited the Scottish Parliament to meet the First Minister at such short notice after the coalition was formed. I understand the anguish, not just in Lockerbie and Scotland generally but across the world, about what happened in the course of the release of the Lockerbie bomber, but I believe that the medical decision was taken in good faith.

[Mr Mike Weir (Angus) (SNP)]

Given what the Secretary of State has said, will he press all relevant UK Government Departments to release all papers relating to both the negotiation of the prisoner transfer agreement between the UK and Libya and the concurrent commercial contract between BP and Libya?

[Michael Moore]

The Prime Minister in his discussions with the President of the United States and other senior American politicians has put forward the proposal that the Cabinet Secretary will review the papers that exist, and we believe that that is a very important step forward, and one that, hopefully, will find support across the House.

--- Later in debate ---

[Fiona Bruce (Congleton) (Con)]

11. What recent discussions he has had with CBI Scotland on the state of the Scottish economy.

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

I have had productive discussions with CBI Scotland and others on the Scottish economy, as has my right hon. Friend the Under-Secretary, and I plan to meet them again in the near future.

[Fiona Bruce]

Bearing in mind that trade and industry is a reserved matter while economic development is devolved—and that both are vital in addressing the key challenge of economic growth—how will the Secretary of State use his role to work effectively to stimulate private enterprise and job creation in Scotland?

[Michael Moore]

Given the legacy that we were left by the Labour Government, it is essential that we tackle the deficit so that we can tackle interest rates and do not pay the cost in jobs. As far as the private sector is concerned, the measures introduced by my right hon. Friend the Chancellor in the Budget, which we passed in the Third Reading of the Finance Bill last night, will see corporation tax lowered over the course of this Parliament, and include others to boost the private sector.

[Katy Clark (North Ayrshire and Arran) (Lab)]

Given the delicate state of the Scottish economy and the fears about the recovery, does the Secretary of State accept that the proposed massive cuts in public spending—including the huge job losses and the taking of so much money out of the economy—risk a double-dip recession?

[Michael Moore]

If we do not get rid of the historic deficit inherited by the Government—at £155 billion, the largest in peacetime history—we will pay the price in lost jobs for years and years to come. It is essential that we tackle that and take on board the other measures set out in the Budget to ensure we get a good private sector-led recovery, which will fund future public services.

[Mary Macleod (Brentford and Isleworth) (Con)]

Does my right hon. Friend agree that it was wrong of the Scottish Parliament to release al-Megrahi supposedly on compassionate grounds, and that this matter should be looked into given that he committed a horrendous crime?

[Michael Moore]

The decision to release al-Megrahi was a decision for the Scottish Government—it was entirely theirs, and they answer for that decision—but we, as a Government, have made plain what we felt about it. However, there have been inquiries in the House and the Scottish Parliament, and I do not believe that, at this stage, a public inquiry would be appropriate.

[Margaret Curran (Glasgow East) (Lab)]

Is the Secretary of State aware of research by Oxford Economics that states that 2.3 million jobs in the private sector will be lost because of the Government’s public sector cuts? Can he explain the devastation that that will cause in Glasgow, which it predicts will be the second-hardest hit city? What does he plan to do for jobs in Glasgow, not only in the public sector but in the private sector? Will the number of jobs go up or down in Glasgow because of his Government?

[Michael Moore]

Across the country we want rising levels of employment and to ensure that, through a private sector-led recovery, we will have a sustainable economy going forward. Were we just to keep going as the hon. Lady’s colleagues in the previous Labour Government did, we would be in very deep trouble indeed.

[Guy Opperman (Hexham) (Con)]

12. What discussions he has had with ministerial colleagues and the Scottish Executive on upgrading the A1 in Scotland.

--- Later in debate ---

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

13. If he will take steps to ensure that account is taken in the strategic defence and security review of the implications for the Scottish economy of that review.

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

Maintaining a strong Scottish economy is one of my top priorities, and I have, and will continue to have, regular conversations with my right hon. Friends the Secretary of State for Defence and the Chancellor of the Exchequer on the implications for Scotland of the strategic defence and security review.

[Thomas Docherty]

Thousands of highly prized, highly skilled and highly paid jobs in manufacturing and engineering are dependent on the aircraft carriers going ahead. Back in Fife, all political parties, including the Liberal Democrats and Conservatives, support the building of the second aircraft carrier. The Secretary of State’s former special adviser said that scrapping the second aircraft carrier would be crazy. Will the Secretary of State therefore come to Fife and meet the management and work force at Babcock during the summer recess, so that they can present their case—

[Mr Speaker]

Order. We have got the essence of it, and we are grateful.

[Michael Moore]

I join the hon. Gentleman in paying tribute to the skills and expertise of the engineering sector, not just in defence but in so many other parts of the Scottish and UK economies. I fully understand the concerns that he is raising, and many of these issues are being considered as part of the strategic defence review. He might also be aware that I am planning to visit Babcock in the next few weeks.

[Mr Ian Davidson (Glasgow South West) (Lab/Co-op)]

Does the Secretary of State want to go down in history as the man who presided over the closure of the Clyde shipyards, or will he defend the two aircraft carriers?

[Michael Moore]

The hon. Gentleman, particularly in his distinguished new role as Chair of the Scottish Affairs Committee, is a strong campaigner on these issues. As he knows, I intend to visit with him the shipyards and other defence installations in Glasgow in the near future.

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

14. What recent devolution issues the Advocate-General has considered.

Oral Answers to Questions

Michael Moore Excerpts

Wednesday 16th June 2010 Commons Chamber

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

The first person I spoke to after my appointment was the First Minister. I have since had further discussions with him and Scottish Ministers, including on the subject of the fossil fuel levy and transmission charging. I remain committed to having constructive discussions with Scottish Ministers.

[Mr Brown]

I welcome the Secretary of State and the Under-Secretary to their new posts. For the Under-Secretary it will be déjà vu, recalling his initial days as a Social Democratic party councillor sitting with the Liberals. On future nuclear electricity generation, can the Secretary of State explain to the House how his position and that of the Energy Secretary squares with the stance taken by the Under-Secretary?

[Michael Moore]

I thank the hon. Gentleman for his warm welcome. I am sure that as a fellow south of Scotland MP, he is delighted to see the region so well represented in the Scotland Office.

On energy policy and particularly electricity supply, my right hon. Friend the Secretary of State for Energy and Climate Change and the Government have set out clearly in the coalition programme our commitment to ensuring that under our policy we tackle the twin issues of climate change and a secure, clean and affordable supply of energy. We have set out how we intend to go about that in respect of all forms of energy, and I am sure the hon. Gentleman will support us in developing that programme to ensure a successful and productive future for Britain’s energy and Scotland’s energy within it.

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

In those discussions with the First Minister, did my right hon. Friend take on board the great potential that Scotland has for marine renewable electricity generation? In that context, will he make a commitment to an early visit to the north-east of Scotland to see the sub-sea engineering skills that have been developed in the oil and gas industry, which have so much to offer that marine renewable industry?

[Michael Moore]

I thank my hon. Friend for that question. Yes, indeed we discussed marine and other renewables—briefly, it must be said. There are many areas in which, under the new arrangement whereby we will engage constructively with one another under the respect agenda, we can work productively together. I have already had discussions with representatives of the oil and gas industry, who made the very point to me that my hon. Friend makes about the skills and how those may apply to marine renewables. I would be delighted to come to the north-east of Scotland to further my understanding of those issues and discuss them with him and others in due course.

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

Is the Secretary of State aware that Peterhead power station pays £29 million every year in transmission charges, whereas a similar facility in London would attract subsidy of about £3 million per annum, and that as a consequence Scottish and Southern Energy is planning up to 50 job losses at the Peterhead plant? Does he accept that the transmission charges regime is discriminatory and is discouraging investment in renewable energy in the very parts of Scotland best equipped to produce it? When he comes to the north-east of Scotland, as he has just pledged to do, will he agree to meet me and representatives of the management and work force at Peterhead power station to discuss the transmission charges regime and the future of the Peterhead plant?

[Michael Moore]

As the hon. Lady knows, the transmission charging regime is primarily a matter for the National Grid. It is an issue that others have raised with me and Ofgem. I shall be keen to talk further about it with her and others from the Scottish Government. There have been representations from all sides of the House already—it has been a busy few days—and I look forward to taking forward those discussions in the most appropriate form in the future.

[Jo Swinson (East Dunbartonshire) (LD)]

I welcome my right hon. Friend to his position. I am pleased to hear what he said about marine renewables, for which Scotland clearly has a massive potential, yet six years after it was set up, the marine renewables development fund still has £42 million lying unclaimed and unused because of the criteria attached to it. Will my right hon. Friend look into the matter and ensure that under this Government the support announced for green energy becomes reality?

[Michael Moore]

I thank my hon. Friend for her kind welcome. I take on board her observations about the criteria that have been used, and I look forward to having further discussions with her and my right hon. Friend the Secretary of State for Energy and Climate Change.

[Mr David Hamilton (Midlothian) (Lab)]

2. What assessment he has made of the likely effect on economic growth in Scotland of the programme of expenditure reduction announced on 24 May 2010.

--- Later in debate ---

[Miss Anne Begg (Aberdeen South) (Lab)]

5. When he expects to bring forward proposals to implement the recommendations of the final report of the Commission on Scottish Devolution.

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

I have had a positive dialogue with the First Minister on a number of subjects, including the Government’s commitment to implementing the recommendations of the Commission on Scottish Devolution. On the question of timing, I have asked officials to work for the autumn introduction of a Bill to take forward legislative proposals, with non-legislative recommendations taken forward on a similar timetable.

[Richard Ottaway]

Is my right hon. Friend aware of the growing concern at the disparity in public services between England and Scotland? If he wants to retain support for the Union in England, he will have to address this sooner rather than later. Will he set out a timetable to deal with these financial disparities now?

[Michael Moore]

May I congratulate the hon. Gentleman on his new position as Chair of the Foreign Affairs Committee? I am sure that that will be a very interesting and challenging role for him to fulfil, and I wish him all the best with it.

The Commission on Scottish Devolution was set up with the remit of ensuring that it reviewed how devolution was working for Scotland, and particularly whether it was serving the interests of the people of Scotland. It was designed to increase the financial accountability of the Scottish Parliament, and thereby the Scottish Government, and also to secure the Union. On two of those three counts, I am sure that the hon. Gentleman would agree that it is a very well-focused commission. I look forward, later this year, to introducing the proposals that I have set out; we are determined to get on with that as quickly as possible.

[Miss Begg]

I welcome the right hon. Gentleman to his new job, and I very much hope he is enjoying it. When he introduces the Bill in October, will the proposals include a measure either to abolish or to keep the Secretary of State for Scotland?

[Michael Moore]

I congratulate the hon. Lady on her new position as Chair of the Select Committee on Work and Pensions and wish her all the best. Clearly, that will be an important part of Government policy and the Committee will be an important place for debate.

The Calman proposals envisage that at some point in future, a Secretary of State for Scotland will no longer be required. The hon. Lady knows that that was a part of Liberal Democrat policy for a long time, but right here and now the position is important, particularly in delivering that legislation and in focusing on the economy, so it holds.

[Iain Stewart (Milton Keynes South) (Con)]

Does the Secretary of State agree that the fiscal relationship between Scotland and the United Kingdom as a whole is more complex than just the Barnett formula or crude overall spending-per-head figures, and that great care should be taken in any review to consider all aspects of the fiscal relationships between all parts of the UK?

[Michael Moore]

I agree with my hon. Friend, and that is perhaps a broader discussion we can have with some of our colleagues over the next little while. The Commission on Scottish Devolution looked exhaustively at fiscal relationships and the need to ensure not only greater financial accountability but the ongoing equity and stability of finances. All those strands together mean that we have a good package which, under the proposals in the Bill, will improve Scotland’s accountability and the devolution settlement.

[Mr Jim Murphy (East Renfrewshire) (Lab)]

I welcome the Secretary of State to his first Scotland Office questions. Of course, it is a very big day for him: it is his 16th day in office, which is exactly the length of time his predecessor survived in the job. I hope the rest of today goes well for him and that he is still here tomorrow. I have always got on very well with him. In fact, I was delighted, just before the election, to meet a delegation that he led, pleading for the extension of the future jobs fund in his constituency.

On the Calman commission, the right hon. Gentleman has previously argued for the abolition of the Scotland Office. When did he change his mind?

[Michael Moore]

I thank the right hon. Gentleman for his typically generous welcome. I am happy to confirm that we were able to work very productively across party lines in the last Parliament, but may I just correct him on a matter of fact? When I went to see him with that delegation, the focus was on bank lending, on which the previous Government, frankly, did not have a good record. If he wishes me to remind him of the specific issues that were raised by those four companies, I would be happy to do so, but I shall not detain the House on that now.

On the position of Secretary of State for Scotland, I am not changing Liberal Democrat policy one bit—it is eventually to see the position abolished. However, in the course of getting the coalition agreement together, and recognising the exciting opportunity to get this settlement through and deliver improvements to Scottish devolution, I was very happy to support the continuation of the office, not least because the economic legacy of the previous Government, of whom he was a member, is something that we seriously need to tackle.

[Mr Murphy]

I again welcome the right hon. Gentleman to his position. It is clear that he is one of a minority in the Cabinet and may from time to time find it difficult to have his voice heard—he is, of course, one of the few non-millionaires sitting around the Cabinet table.

Turning to the success of the Calman commission, should there not be an independent commission to look into the abolition of the future jobs fund? Will the right hon. Gentleman support an independent commission, perhaps to be chaired by Sir Ken Calman, on the impact of the shameful decision of a gang of millionaires to turn their backs on the unemployed of Scotland?

[Michael Moore]

Mr Speaker, you will not be surprised that I reject the right hon. Gentleman’s analysis of the situation. Like him, I care very deeply about unemployment, not least among young people, in Scotland and anywhere else in the United Kingdom. The reality, however, is that the future jobs fund was set up on an unsustainable basis. We need to ensure that we get a sustainable basis for the future of youth unemployment support. Those proposals will come forward in very close order. In the meantime, before he sets up too many scare stories, let us remember that existing bids will be honoured under the future jobs fund.

[Mr Speaker]

Order. We really do need a bit of order in the House. There are far too many private conversations taking place. It is a very unattractive spectacle so far as those outside the Chamber are concerned.

--- Later in debate ---

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

Tackling the budget deficit and creating a fairer and more balanced economy will ensure a stable economic environment for businesses in Scotland.

[Mary Macleod]

Under the last Government, the Scotland Office’s attempts to help to maintain a strong economic environment in Scotland had something of a credibility problem. What is my right hon. Friend doing to dispel the myth promoted by his predecessors that the level of Government borrowing is somehow unconnected to the level of interest rates and taxation?

[Michael Moore]

The hon. Lady makes an important point. We must not lose sight of the fact that the deficit left behind by the previous Government was £155,000 million. We have to establish our credibility not just with the people of Britain, but with the international financial markets. If we do not, we will see higher interest charges that will bear down on the level of public services that we can afford and affect the pockets of everyone in Scotland, both businesses and individuals. We have to tackle that urgently, and I am determined that we will do so.

[John Howell]

I am sure the Secretary of State would agree that the crisis in the financial sector was especially detrimental to the economic stability of Scotland. Will he now confirm that the Scotland Office will no longer issue press releases saying that it is taking advice from Sir Fred Goodwin, and will take advice from a more representative group of Scottish financiers?

[Michael Moore]

The hon. Gentleman is correct to highlight the important place that financial institutions play in the Scottish and United Kingdom economy. I assure him that I will be taking as broad a range of advice on these subjects as necessary. Indeed, I am already making early contact with some of the largest financial institutions in the country, including RBS and HBOS.

[Stewart Hosie (Dundee East) (SNP)]

I welcome the Secretary of State to his new job. On a stable economic environment, one of the key issues is business cost stability, and the area that businesses find most difficult is that of fuel and haulage costs. Can he confirm, therefore, that it remains the policy of at least the Conservative side of the coalition to introduce a fair fuel stabiliser or fuel duty regulator to smooth out the spikes in the cost of fuel and bring some cost stability to haulage for businesses throughout Scotland?

[Michael Moore]

I thank the hon. Gentleman for his opening remarks. He will understand, I am sure, that I am not in a position to pre-empt, and have no intention of pre-empting, the Chancellor’s statement introducing the Budget next week. The hon. Gentleman’s representations, and those of others, are among the many being received by the Treasury and the Scotland Office, and I am sure that he will pay attention when the Budget is announced next week.

[Ann McKechin (Glasgow North) (Lab)]

I welcome both right hon. Gentlemen to their new positions in the Scotland Office. Given the unique position of the Scottish media and the Government’s disastrous cancellation of the tendering process for provision of local news on Scottish television, despite the winners having already been announced, what discussions has the Secretary of State had with the Secretary of State for Culture, Olympics, Media and Sport about the threat now posed to news on STV?

[Michael Moore]

I thank the hon. Lady for her initial comments. An independently financed news consortium was another idea that on closer scrutiny did not have the financial backing to make it sustainable, either through the pilot stage or in a more general process. I have spoken to members of the consortium, and my right hon. Friend the Under-Secretary has spoken to representatives from STV. We will work with them and others in Scotland to ensure that we get the right local news across the country.

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

8. What recent discussions he has had with ministerial colleagues on the support available for manufacturing in Scotland.

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[Mr Adam Holloway (Gravesham) (Con)]

9. What recent discussions he has had with ministerial colleagues on Scotland’s future energy needs.

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

My colleagues and I are fully committed to ensuring that Scotland is able to continue to play an important role in meeting the UK’s aspirations for climate change and security of supply.

[Mr Holloway]

Can my right hon. Friend give us an assurance that Scotland’s energy capacity will remain at the forefront of global renewable advances?

[Michael Moore]

I am very happy to give that assurance.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

My constituency has three of the five biggest users of energy. Does the Secretary of State agree that the only solution is nuclear power?

[Michael Moore]

As I said earlier, the Government have set out a clear policy on their energy strategy, and arrangements are in place to ensure that we have diverse sources of supply and security for the future.

[Andrew Rosindell (Romford) (Con)]

10. What recent discussions he has had with ministerial colleagues on measures to reduce the level of economic inactivity in Scotland.