(11 years, 5 months ago)
Commons ChamberMy hon. Friend is right: this is absolutely key to the whole of the UK’s economy, and I look forward to the benefits being enjoyed by all parts of Britain—north and south.
This Government have delivered just one fifth of the promised growth since 2010. Is the Secretary of State also aware that the working-age employment rate in Scotland has fallen by 2% from five years ago, leaving a jobs gap for Scotland of more than 71,000? Does that not make the case for a jobs guarantee now to get Scotland’s young and long-term jobless people back into work, generate more tax revenues and help cut the deficit, which rose, not fell, last year under this incompetent Government?
The hon. Gentleman should perhaps practise his questions a little more. Yet again, there is denial from him and his colleagues of the good progress we have been making on unemployment, and I hope he recognises that. It is absolutely essential that we take the measures to support people into work, which we are doing with the Work programme and the Youth Contract, and we will be making work pay with universal credit. He can shake his head, but he needs to get with the reality.
(12 years ago)
Commons ChamberI know that the hon. Gentleman always wants to denigrate the Parliament of which he is a part, and I wish he would stop doing that, but I point out to him that a rather important part of that agreement is that we will pass the section 30 order, which will transfer the powers to the Scottish Parliament. Importantly, that will involve debates in this place and in the other place, as well as in the Scottish Parliament. We are all part of this debate, and all Scots will be part of that political process.
When the Secretary of State next meets the First Minister will he share with him the powerful call of President Clinton and Secretary Albright when they visited these shores reminding us that what binds us together is far more powerful than any distinctions in identity?
On economic co-operation, was the Institute for Fiscal Studies not right to point out that if we want to diversify the Scottish economy away from our dependence on oil and gas revenues, we need not only a shared currency and interest rate, but a powerful and strong fiscal union which benefits Scotland? That is the likely result in terms of our shared prosperity in the future.
The hon. Gentleman makes two important points. One is that when senior international figures look at the issue confronting Scots—the most important political decision in 300 years—time and again they say that they think Scotland would be better off as part of the United Kingdom. Secondly, the report he highlights is significant as it shows the strength of Scotland’s economy as part of the UK, both in terms of its opportunity and in reducing the risks attached to it. [Interruption.]
(12 years, 5 months ago)
Commons ChamberI remind the House that the clue is in the heading—“Questions to the Secretary of State for Scotland”.
Listening to the Secretary of State reminds us how totally isolated he is in Scotland in believing that the answer to this crisis of weak economic demand is harsher austerity over the next four years. Does he not accept that nearly twice as many people as on black Wednesday are being forced to work part time because there are not enough full-time jobs in our economy? Some 320,000 people in Scotland are struggling below the poverty line despite being in work, and real wages have fallen every month that this Government have been in office. Is that not the real explanation of why we face a double-dip recession, made in Downing street?
It may suit the hon. Gentleman’s case, but he cannot be allowed to forget the legacy of his Government and the mess that we inherited two years ago, nor can the Opposition be allowed to be blinkered about the challenges around Europe and the world. We are ensuring that we create the right financial and economic conditions to get Scotland and the UK economy back on the right foot.
(12 years, 7 months ago)
Commons ChamberAs we begin debating the Lords amendments, I hope the House will consider it appropriate for the Opposition to mark the significance of what is likely to be our final consideration of the Scotland Bill. If it receives Royal Assent in the coming days, the Bill will represent the largest devolution of financial powers to Scotland in 300 years; will make decisions on spending and taxation more transparently accountable to the Scottish Parliament than at any time since 1999; and create new borrowing powers with the potential to boost economic growth significantly.
This enhancement of devolution is the culmination of a four-year process of cross-party and cross-societal constitutional reform through the Calman commission, which was established by Wendy Alexander and other pro-devolution party leaders in Scotland. Its outcome was accepted in a White Paper by my right hon. Friend the Member for East Renfrewshire (Mr Murphy); was assisted by my hon. Friends the Members for Glasgow North (Ann McKechin) and for Rutherglen and Hamilton West (Tom Greatrex) in various capacities; and has been implemented with cross-party support by the coalition Government.
It is also welcome that the Scottish Government have finally indicated their assent, if not warm-hearted approval, for the Bill, after a significantly longer and more circuitous journey to reach that position than that undergone by Scotland’s other political parties.
I would like to pay tribute to the hon. Gentleman, his colleague the shadow Secretary of State, the hon. Members for Glasgow North (Ann McKechin) and for Rutherglen and Hamilton West (Tom Greatrex) and those from all parties in the House and elsewhere who have helped to make this Bill what it is today. I hope that the hon. Member for Glasgow North East (Mr Bain) will agree that this is a good model for how parties should work together to produce consensus and plan, and then devolve significant powers to Scotland.
(12 years, 9 months ago)
Commons ChamberFirst, I am not contemplating Scotland actually becoming independent, because I am confident that Scotland will vote to stay in the United Kingdom. However, my hon. Friend highlights a central issue. The SNP cannot dodge some of the issues that there would be in relation to Europe if we were to become separate, including those to do with the borders. As a borders MP, I think that those issues are as absurd as he does.
Has the Secretary of State considered the recent study by the National Institute of Economic and Social Research, which shows that even if it formed a sterling zone with the UK, a separate Scotland would experience volatile public finances, inherit debts at either 70% or 80% of GDP, and face tougher constraints on levels of tax and borrowing than it does as an equal participant in fiscal union with the UK?
Of course I have studied that report. The hon. Gentleman puts its conclusions succinctly. Those are points that the SNP has failed to answer.
(12 years, 10 months ago)
Commons ChamberOver many months now, I have been bringing together exactly those groups in different parts of Scotland—including Ayrshire, Falkirk and the borders. At the end of March, I, along with the Secretary of State for Work and Pensions and the Scottish Finance Secretary, will bring everybody together so we can focus as two Governments and as all the interested parties on tackling this scourge that we must get rid of.
The problem with the Secretary of State’s complacent answers is that he simply does not grasp the scale of the crisis of slumping demand, employment and confidence that grips Scotland’s economy due to the crushing austerity being imposed by this Government. Does he not share the real fears of young people that, with youth unemployment at over 21% and seven people chasing every vacancy in Scotland, there simply are not enough jobs to go around, and is it not time to change course by boosting demand through a cut in VAT now, before this Government’s failing economic plan plunges Scotland into the misery of another downturn?
I think it is wrong for the Labour party to be complacent about its record on the economy, which landed us in this mess in the first place. The shadow Defence Secretary, one of my predecessors as Scottish Secretary, said this week that Labour has to face up to the realities of the economy and the deficit, and the hon. Gentleman should do that, too. We want to work with everybody so that we can reduce youth unemployment, and I invite him to look at the youth contract in more detail.
(13 years ago)
Commons ChamberMy right hon. and learned Friend makes a very important point. The idea that we would somehow simply get membership of the European Union with complete agreement, without discussion and without needing to worry about the terms of negotiation is quite fanciful. It is a journey into the unknown and we need to have the detail.
One of the many benefits associated with the Union is the certainty provided by Scotland’s continuing membership of the European Union. Has the Secretary of State seen the impartial Library research published yesterday, which indicates that Scotland may have to go through an accession process to stay in the EU if it becomes a separate state? That research also shows that if Scotland were accepted as a member state, according to the most recent data, net annual contributions to the EU from Scottish taxpayers would rise to £92 per capita compared with only £57 per capita from the rest of the UK. Would it not be contrary to Scotland’s national and economic interests to separate from the rest of the UK if it meant Scotland ended up out of the EU or paying more to stay in the EU, and only if it adopted the euro?
I welcome the hon. Gentleman to his new role, in which he is already demonstrating his forensic attention to detail. I am delighted that he has put his point across, and I completely agree with him about the uncertainty that all this causes.