(11 years, 11 months ago)
Commons ChamberI beg to move,
That the draft Scotland Act 1998 (Modification of Schedule 5) Order 2013, which was laid before this House on 22 October 2012, be approved.
I am grateful that we have longer to debate the order than would usually be the case. This reflects the interest that hon. and right hon. Members have shown in the issue and the time they have spent scrutinising it, not least in the Scottish Affairs Committee, whose report is a very important contribution to the parliamentary process.
On 15 October 2012, the Prime Minister, the First Minister, the Deputy First Minister and I signed an agreement on behalf of our respective Governments that will, if the order is approved by this House and the other place, allow a legal, fair and decisive referendum to take place on Scottish independence. We will face the most important political choice that people have taken in Scotland in more than 300 years.
What is the role of the Electoral Commission? Can the Scottish Government override it or is it mandatory for them to accept what it says?
I applaud the hon. Gentleman’s early intervention. He will not be surprised to know that he has anticipated slightly an issue that I will turn to at reasonable length, with the House’s permission, later in my speech. Put simply, we expect the same standards to apply to the Scottish Parliament as apply here—no greater, no less.
This process began with the Scottish National party’s victory in the May 2011 Scottish parliamentary elections and its manifesto pledge to hold an independence referendum. From the very beginning, we recognised the political mandate that the SNP had secured for a referendum. However, as I set out in the House just over a year ago, the Scotland Act 1998 is very clear that the Scottish Parliament cannot legislate on matters reserved to this Parliament. That includes the constitution and, specifically, the Union of the kingdoms of Scotland and England.
That is why we published a consultation paper on 10 January 2012, which set out the different ways to deliver a legal referendum. Shortly afterwards, the Scottish Government set out their own consultation.
Our paper sought views on how to facilitate a legal, fair and decisive referendum. We set out the available legislative options and stated that our preferred option was to provide the Scottish Parliament with the legal competence to legislate itself. This received the overwhelming support of those responding to our consultation. More than 70% of respondents agreed that the Scottish Parliament should be given that power. Throughout the discussions with the Scottish Government, we stressed that there should also be a single question to deal decisively with the issue of independence. Three quarters of respondents to our consultation agreed. In our consultation paper, we set out our view that the Electoral Commission, the independent body responsible for overseeing referendums in the UK, should be responsible for this referendum. That is the same position as for any other referendum.
The UK Government’s position was supported by 86% of respondents. Indeed, that was a point that the Scottish Government accepted fairly quickly. They moved from their initial proposal to establish a separate Scottish body to oversee the poll to a position of accepting that the Electoral Commission was the right body to oversee the referendum.
We also sought views on timing and on the franchise. On timing, we sought views on when the referendum should be held. Many people supported our view that it should be held sooner rather than later. Indeed, the order before us today provides an end date for the referendum, but it does not prevent it from being held sooner. It will be for the Scottish Government and the Scottish Parliament to set the referendum date.
On the franchise, we asked for views on who should be entitled to vote in the referendum.
(12 years, 6 months ago)
Commons ChamberThe Secretary of State recently visited my constituency. I wonder whether he could give us a progress report on how he has got on with the schools-industry liaison committees.
I regret to inform the hon. Gentleman that I have not made as much progress as he would wish me to. I hope, however, that he will recognise the important support that we have given to Irvine, in the form of the enterprise allowances—the 100% capital allowances that are now available—and I will be happy to catch up with him on the school-industry partnership and the Scottish Government’s role in it any time soon.
(12 years, 11 months ago)
Commons Chamber4. How many young people are not in employment, training or education in Scotland.
The annual population survey of 2010 estimates that 36,000 18 to 19-year-olds in Scotland were not in education, employment or training between 2009 and 2010.
I thank the Secretary of State for that response, but it does not really answer the question of what is happening between the ages of 16 and 18, which is as important, if not more important. What is he doing to encourage youngsters to enter industry and to enable them to take up apprenticeships as joiners, electricians and plumbers, because this Government have failed to attract people into those industries? Does he agree that the idea, which I suggested to him at a meeting, of setting up schools-industry liaison committees is worth supporting?
The hon. Gentleman rightly continues to focus on this issue. We are all deeply concerned about youth unemployment. I have visited his constituency, and I have also had other meetings in Ayrshire and elsewhere, and it is right that we should join the Scottish Government, employers and all the agencies to help young people—aged between 16 and 18 and of any age—to find work or support. The youth contract that we announced before Christmas will bring £1 billion of extra investment into supporting the young unemployed, whether through wage incentives, additional work experience and opportunities or money to the Scottish Government. That money could also be used to create the school-industry liaison groups the hon. Gentleman wants.
(12 years, 11 months ago)
Commons ChamberUntil almost to the end of that question, I thought that for once I might be in agreement with my hon. Friend on a matter to do with Europe. He is right to raise the issue of Europe because Scotland’s membership of the European Union, were we to become an independent country, could not be taken for granted. There would have to be a process for getting into the EU, which is vital for our economy. On that basis, I hope we will find common cause.
I seek an assurance from the Secretary of State regarding the uncertainties that arise by virtue of the time being taken to get to the point where we have a referendum, which are very damaging for inward investment possibilities. Right now I am trying to get inward investment of some size into my constituency, but it is highly probable that as a consequence of all this the high levels of unemployment in my constituency will remain. Can he assure me that this process will take place sooner rather than later?
The hon. Gentleman makes a really important point about his constituency. I am aware that huge decisions are being contemplated not just for his part of Ayrshire but for all parts of Scotland, and investors do not like uncertainty. We have seen the Citigroup report and the observations of the CBI and the Institution of Mechanical Engineers. It is bad for Scotland and for the UK to have this uncertainty. I want to see the referendum sooner rather than later and we will do everything in our power to ensure that we can do that.
(13 years, 3 months ago)
Commons ChamberI am always happy to look at these cases and provide support as necessary. My right hon. Friend is absolutely right to say that this is an important step forward for the highlands and islands. I hope that the Scottish Government will reflect carefully on what he and others have been saying.
Yesterday I had an Adjournment debate in Westminster Hall on fuel duty. Is the Secretary of State aware that the duty is then subject to tax by VAT?
I think that everybody in the House is aware of the realities of fuel taxation. I am therefore sure that the hon. Gentleman was welcoming the fact that in our Budget earlier this year we reduced fuel duty rather than increasing it in the way the previous Government had planned. This question gives me the opportunity to remind the House that we have made further progress in the derogation for highlands and islands fuel prices, which is very welcome news indeed, so that we can get a reduction in fuel duty in the islands.
(13 years, 6 months ago)
Commons Chamber14. What assessment he has made of the outcomes of his recent visit to Central Ayrshire.
The seminar I hosted in Irvine last month discussed how to tackle the high level of youth unemployment in Ayrshire. The Scotland Office is working with key partners such as Jobcentre Plus to focus resources on the most challenging areas identified at the seminar. We look forward to working with the Scottish Government on this complex issue.
I thank the Secretary of State for that answer. One of the areas of major concern identified at the seminar was the high unemployment among those aged between 16 and 18, which seemed to have slipped off the radar. It was the Secretary of State for Work and Pensions, who was present at the meeting, who made that very important point. What is the situation, what assessment has been made by the Secretary of State for Scotland and what is going to be done about that issue?
First, may I thank the hon. Gentleman for his full participation in the seminar? It was the first in a series that we will hold across Scotland to tackle a deep-rooted problem, not just in Ayrshire but elsewhere, that has defied Governments through the ages. He rightly points out that my right hon. Friend was at that seminar; we continue to discuss the serious challenges in relation to youth employment and I will be happy to discuss those further with the hon. Gentleman in due course.
(13 years, 7 months ago)
Commons ChamberUnemployment has fallen steadily since August 2010 and employment has increased in the same period. This is a welcome sign. Supporting companies to create and sustain jobs and helping people into work are key priorities for the Government. On 19 May I am hosting a seminar in north Ayrshire, in the constituency of the hon. Member for Central Ayrshire (Mr Donohoe), on youth unemployment, and my right hon. Friend the Secretary of State for Work and Pensions will join me at this important event.
I look forward to our meeting on 19 May. On a another matter concerning unemployment, does the Secretary of State think that the separation of Scotland from the rest of the UK would help or hinder employment prospects for people in Scotland?
It would be an absolute disaster for Scotland to separate from the rest of the United Kingdom. It is interesting that even the Scottish National party appears to recognise that, because it is not campaigning very hard on the subject.
(13 years, 9 months ago)
Commons ChamberThe hon. Lady is right to highlight the issue of youth unemployment, which is a key priority for the Government. Again, it is something that rose significantly throughout her time in office, and it needs to be tackled very seriously. We have already introduced elements of the Get Britain Working programme, the work clubs and the Working Together programme, and the Work programme will come along in the summer. We look forward to debating that further with her.
5. When he expects next to discuss with ministerial colleagues trends in the level of youth unemployment in Scotland.
The Government are determined to deal with the long-term legacy of youth unemployment, and this is a key priority in my discussions with ministerial colleagues. Our Get Britain Working measures and the new Work programme will provide the best possible support for young people struggling to find employment.
I thank the Secretary of State for that answer. He will be aware, however, that levels of unemployment among the 18-to-24 age group have soared over the past few months. As a result, in north Ayrshire in particular, we have the highest levels of youth unemployment. What is he going to do about that?
First, I commend the hon. Gentleman for his consistent campaigning on this issue, which is a very significant one in his part of the world. However, I think that he would also acknowledge the point that I made to the hon. Member for Glasgow North (Ann McKechin) a moment ago—that youth unemployment has been a serious problem for a long period. I discussed the issue with the Work and Pensions Secretary only last night. As I have said to the hon. Gentleman previously, I look forward to convening a meeting in his constituency where we will discuss all these issues with the relevant individuals and organisations from across Scotland. I look forward to his being part of that event.
(13 years, 10 months ago)
Commons ChamberI beg to move, That the Bill be now read a Second time.
Over the past decade, the devolution of power and decision making from this Parliament to the Assemblies of Wales and Northern Ireland and to the Parliament in Scotland has transformed the constitutional arrangements of the United Kingdom. With this Bill, we begin a new phase of devolution in Scotland—a phase that we enter with cross-party support and the support of individuals and organisations across the country. The Scotland Bill is, of course, an important step in the coalition Government’s programme to modernise and reform the United Kingdom’s constitution, but its origins lie in the Scottish Parliament itself and in the support given by the previous Government, which I am happy to acknowledge. The Scotland Bill will further empower the Scottish Parliament and make it more accountable to those who elect it. In doing so, it will strengthen Scotland’s position within the United Kingdom.
Let us reflect on how we got here. The late Donald Dewar famously said, while quoting from the first line of the Scotland Act 1998:
“‘There shall be a Scottish Parliament’…I like that”.
He was not alone. His sentiments were, and continue to be, widely shared in this House and throughout Scotland. It is important to pay tribute to Donald Dewar for his historic role in shaping modern Scotland. He was a true statesman, serving both as Secretary of State for Scotland and as Scotland’s original First Minister. In the creation of the Scottish Parliament, he has a fine legacy. However, he would have been the first to insist on recognising the countless others, across different parties, and, crucially, from many different backgrounds in Scotland, who patiently built the case for devolution over many years, indeed decades. Likewise, we should acknowledge those in this place, the Scottish Parliament and beyond who supported the early years of the devolved institutions, building their capacity and establishing their credibility. Today, we build on that work.
When taking the original Scotland Bill through this place, Donald Dewar said that the creation of a Scottish Parliament was not just for Scotland. Nor was it just routine tinkering with the detail of our political system. Rather, it was a fundamental, radical reform of the UK’s constitution. After more than a decade of devolution, the Scottish Parliament is firmly established as part of the fabric of Scottish life. More than that, however, devolution—not just in Scotland, but right across the United Kingdom—is now part of our national life too. The Parliament was established to bring power closer to the people of Scotland, to make government more responsive to their needs, and to put their priorities at the heart of Scottish governance. It has succeeded: decision making on education, health and the environment, among many things, is closer to the people whom those decisions affect. The experience of Scottish devolution has changed the terms of the debate. Few would seriously now argue that there should be no Scottish Parliament.
The Bill builds on the achievements of the 1998 Act and on the experience of devolution, and it further strengthens Scotland’s place within the United Kingdom. Just six months after being elected, we introduced the Scotland Bill on St Andrew’s day. In doing so we made good the Government’s formal pledge, in our programme for government and the Queen’s Speech, to implement the recommendations of the Commission on Scottish Devolution—the Calman commission, as it is more commonly known. However, this was not our commitment alone. The Labour party also pledged in its manifesto to implement the commission’s recommendations, and I welcome its ongoing support without seeking to compromise Labour Members’ important role in scrutinising the detail of the Bill. Once again, however, measures brought to the House on a major piece of Scottish constitutional legislation are founded on support from across the Chamber and within Scotland.
After the first decade of devolution, it was right to review the Scotland Act, to assess how devolution was working, and to ensure that the Scottish Parliament had the right powers to deliver for people in Scotland. In December 2007, the Commission on Scottish Devolution was established by a vote in the Scottish Parliament. Chaired by Professor Sir Kenneth Calman, the commission included Conservative, Labour and Liberal Democrat representatives, but it was independent of any political party and embraced representatives from business, education, the wider public sector and across civic Scotland. It gathered evidence from a wide range of sources and engaged directly with people in Scotland and elsewhere in the United Kingdom, through detailed consultation, public engagement events, oral evidence from a spectrum of interests in Scottish public and business life and survey evidence. Let me record my thanks to Professor Sir Kenneth Calman and his commissioners for their thorough, inclusive and well-evidenced work. I would also like to acknowledge the impressive and detailed work of Professor Anton Muscatelli and the independent expert group on finance, which supported the commission.
The commission’s final report was submitted jointly to the Scottish Parliament and the UK Government in June 2009, and was widely welcomed. Based firmly on the commission’s findings, the Scotland Bill seeks to implement its key recommendations. The commission’s first and overarching conclusion was that devolution had been a real success; that it was here to stay; and that the balance between reserved and devolved policy powers and functions was, broadly, in the right place. However, it also concluded that there was a shortcoming in how the Parliament was funded, specifically in terms of accountability. At the centre of the commission’s report and the Bill, therefore, are measures to improve the financial accountability of the Scottish Parliament.
The Scottish Parliament can determine policy on a wide range of subjects and how and where money is spent, but at present it cannot be held effectively to account for raising the money it spends. The commission recognised this imbalance. The Bill addresses that imbalance by providing a package of taxation and borrowing powers that will see the Scottish Parliament become accountable for more than a third of the money it spends. In doing so, the Bill represents the largest transfer of fiscal powers from central Government since the creation of the United Kingdom. It is a radical but responsible step. Most significantly, we will create a Scottish income tax. We will create that tax by cutting 10p off the basic, higher and 50p rates for Scottish taxpayers, adjusting the block grant in proportion and allowing the Scottish Parliament—indeed, obliging it—to apply a Scottish income tax at a level of its choosing to meet its spending plans.
Can the Secretary of State tell me and those who have asked me to probe this point what will happen when companies in my constituency or those across the whole of Scotland are paid from south of the border? How will that problem be overcome?
The hon. Gentleman makes a very fair point. Let me reassure him, first, that we have given a lot of attention to the technical issues of implementation, both in a high-level implementation group and, now, technical groups led by Her Majesty’s Revenue and Customs, which are looking at all the different issues. The good news is that the software systems that were created for employees paying the Scottish variable rate under the original legislation were future-proofed and can identify Scottish taxpayers on the payrolls, wherever the company’s head office is, ensuring that the identification of taxpayers is made as painless a process as possible and that the right amounts of tax are taken.
But what happens—this is the question that has been asked of me—when the person is domiciled both in Scotland and in England?
They cannot be domiciled in both places. A person’s status as a Scottish taxpayer will be determined as set out in the Bill. If the hon. Gentleman looks more closely at the detail, I hope that he will be reassured.
(13 years, 11 months ago)
Commons ChamberA very significant part of the vice-premier’s visit, which of course we welcomed enthusiastically here in the United Kingdom, was that he started it in Scotland. I had the great privilege of welcoming him to the UK on behalf of the Government. In the course of that visit, we in Scotland and the rest of the UK were able to see very clearly the opportunities for us to develop our plan to be partners for growth, whether in renewable energy or in many other spheres.
May I add my condolences to those expressed to the family of Phil Gallie? He and I came into this place on the same day, and I have to say that he was more working-class than most Labour MPs are today, and a feisty fighter as well.
Does the Secretary of State think that inward investment to Scotland would be helped if Glasgow Prestwick airport were renamed Robert Burns airport?
From one great defender of Ayrshire to another. The family will be pleased to hear the hon. Gentleman’s tributes to Phil Gallie. As far as the hon. Gentleman’s idea for the renaming of the airport is concerned, I am sure that those who make such decisions will have heard him.
(14 years ago)
Commons ChamberThe 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.
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?
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.
(14 years, 5 months ago)
Commons ChamberMy 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.
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?
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.
(14 years, 6 months ago)
Commons ChamberMy constituency has three of the five biggest users of energy. Does the Secretary of State agree that the only solution is nuclear power?
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.