Constitutional Law

Debate between Pete Wishart and Iain Stewart

Tuesday 15th January 2013 Commons Chamber

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

I very much welcome the chance to participate in this important debate. It is a great pleasure once again to follow my fellow Hutchesonian, who made a powerful speech. If it does not damage his reputation even further, I shall point out that I agree with many of the points that he made, and I hope to build on them.

In many respects, I wish that we were not having this debate. I am a staunch Unionist, and I believe in the United Kingdom. I wish that we did not have to contemplate at all the prospect of the United Kingdom splitting up into its constituent parts. I believe that that very process will cause uncertainty at a time when we need absolute certainty for our economy. There is evidence from Canada that the ongoing constitutional debate and the uncertainty of Quebec’s constitutional status damaged the economy in Quebec, and I wish that we were not in that position. The hon. Member for Glasgow South West (Mr Davidson) made an important point from the perspective of his constituency about the uncertainty for the shipyards in Govan and elsewhere, and the fact that there will be no certainty on future orders while the constitutional question remains unresolved.

We are where we are. I am a democrat, and I fully accept that the SNP won the majority of seats in the Scottish Parliament. However much opinion polls show that the constitutional question was, or was not, part of the debate in that election, it was part of the SNP manifesto, and it is perfectly legitimate for it to hold the referendum. I accept that the Scottish Parliament is the right forum in which to set the terms of the referendum, but it must be absolutely fair, clean and decisive.

I wish to mention a few of my concerns. There must not be any question of gerrymandering with regard to the question, the electorate and the rules by which the campaign is fought. Many Members have expressed legitimate concerns about the prospects for the campaign. I commend members of the Scottish Affairs Committee for their insightful report, which highlighted a number of concerns.

I want to concentrate on one or two misgivings about the franchise. The question of 16 and 17-year-olds voting has been raised. I completely accept that there is a legitimate debate to be had about whether the voting age should be lowered. Eighteen is not set in stone in this country: the age at which someone can vote has changed over the years and has been reduced in recent times. I get young people in my constituency calling on me to consider a reduction in the voting age. I have an open mind on the subject. My view is that we should agree on a common age of majority for a series of things. It is slightly daft that we have different ages of adulthood for learning to drive, voting, getting married, buying alcohol or tobacco, and serving in the armed forced. It is not beyond our wit to agree an age at which most young people achieve a degree of maturity and at which they can exercise adult decisions. I do not have a particular view about whether that should be 16, 17, 18 or some other age, but that is not the point.

That debate should be had in general terms, not in the specific circumstances of one poll. It is utterly wrong that unilaterally for one election or one referendum we make a change, and for that not to apply elsewhere. Whether 16 and 17-year-olds are more likely to support the Union or independence is not the point. The debate should be had in general terms.

[Pete Wishart]

Following the Edinburgh agreement, this is the only election or referendum the Scottish Parliament will have control of. We have no say on UK elections. We do not even have a say on Scottish parliamentary elections. Of course, if we had responsibility for them, we would make sure that 16 and 17-year-olds could vote. We have crofter commissions and local government elections in which we can have 16 and 17-year-olds voting, but we do not have legislative responsibility for UK or Scottish parliamentary elections.

[Iain Stewart]

The hon. Gentleman is making a point about a continuing process of devolution and, in the future, it might fall within the competence of the Scottish Parliament to decide these things. That is a separate debate. But to make the decision unilaterally for one poll in what I believe is the self-interest of the party—whether that is misplaced or not is another question—is fundamentally wrong in my view.

Scotland Bill

Debate between Pete Wishart and Iain Stewart

Thursday 26th April 2012 Commons Chamber

[Iain Stewart]

My hon. Friend makes a very important point, as the essence of the Bill is that it creates additional transparency and provides for democratic scrutiny of the decisions made by the Scottish Parliament. That is important not only in Scotland, but in England. I am sure that constituents write to him to complain about some of what they see as the largesse given to Scotland. Some of what is reported to us is not accurate—the media tend to whip up a storm about the bounty that is provided to Scotland. Some of what is said may be true, but greater transparency will be healthy for democracy and it will remove some of the myths from the debate. I think that this measure will be good for the Scottish Parliament, for devolution and for the Union.

[Pete Wishart]

I am listening to the hon. Gentleman with keen interest and I very much approve of the tone of his remarks. Will he ensure that when nonsensical claims are made about Scotland having this “largesse”, as he describes it, he will deal with them all in the same way as he just has?

[Iain Stewart]

I am grateful to the hon. Gentleman for that intervention. I always try to be reasonable and measured in my comments. These issues are important and I have long argued—I will not repeat the arguments that I have made in other debates, as I think you would quickly rule me out of order, Madam Deputy Speaker—that there is a great deal of confusion about the fiscal relationship between Scotland and the rest of the United Kingdom. I think that this measure will give extra clarity. Some of the claims are justified; others are not. I shall not be tempted down the path of identifying which are and which are not, but, as my hon. Friend the Member for Carlisle (John Stevenson) says, it is important to have that scrutiny so that we can keep tabs on this very complex change. The last thing our economy needs in these difficult economic times is additional uncertainty about changes that are being rushed through that might provide uncertain trading conditions for companies. The proposed process is measured, calm and sensible.

I am glad that some of the other demands for fiscal transfers have been resisted at this stage. We have talked about corporation tax and I will not re-enter that debate. The demands made by the Scottish National party initially included the transfer of excise duties, but even they now realise the complexity that that would involve, thanks to the fact that such an august body as the Scotch Whisky Association—a very fine body—pointed out that different alcohol duties north and south of the border would require the introduction of some sort of tax border policing to ensure that there was no abuse of the system. I am glad that that demand has been dropped.

As my hon. Friend says, the additional transparency will be good for our constituents. The publication of the annual reports will also be helpful in relation to another sensible change that has been made during the progress of this Bill, which is the proposed adjustment to the annual block grant. Initially, I think there was to be a one-off assessment of what change should be made to the block grant as a result of the fiscal changes. That has now been amended to be an annual assessment of what I think is known as the Holtham approach, which has been considered for funding for the Welsh Assembly. Having that annual check on a very complex and dynamic fiscal situation will be sensible. I recall that similar changes were made to the calculation of the Barnett formula in the 1990s when the initial formula, which had been set in stone since it was first introduced in the late 1970s, had resulted in some disparities and anomalies as a result of changing population levels. That has since been adjusted to an annual change.

Scotland Bill

Debate between Pete Wishart and Iain Stewart

Monday 14th March 2011 Commons Chamber

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

It is a pleasure to serve under your chairmanship, Mr Evans. I shall address the Scottish National party Members’ amendments in a moment, but first let me make an observation about this part of the Bill, particularly clause 24. I strongly support the proposal to devolve substantial tax powers to the Scottish Parliament, making it responsible for raising approximately a third of its revenue. I shall not repeat the arguments I made on Second Reading, but the principle of the Scottish Parliament raising a good part of its revenue is vital. If that does not happen, the threat to the Union will be very real. To underline that point, let me quote from an e-mail that I received last night from a constituent, Mr Haig. It is worth repeating a couple of the points he expressed.

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

He’s bored and is going to resign.

Scotland Bill

Debate between Pete Wishart and Iain Stewart

Thursday 27th January 2011 Commons Chamber

[Iain Stewart]

My right hon. Friend makes an important point. The whole subject is difficult and complex, given the shorthand of Barnett and the vast difference between public spending in Scotland and England. In some areas, however, for the reasons that he has set out, there is a big difference, and those reasons will also be found in England. For instance, in remote parts of Cumbria or Devon, spending per head will be higher than in central London or Manchester.

[Pete Wishart]

If the hon. Gentleman looks at the study by Oxford Economics, he will find that London secures more public spending than any region or nation in the UK. If he and the hon. Member for Warrington South (David Mowat) are concerned about grant formula and Scotland’s spending relative to England’s, I have good news for them: they can vote to change that in the next few weeks and allow Scotland to have full fiscal responsibility. That would allow all the Barnett issues to disappear. If we were allowed to have the economic levers to grow our economy, we would be self-reliant on taxation.

[Iain Stewart]

As I said to the hon. Member for Angus (Mr Weir), if the hon. Gentleman allows me to make a little progress, I will come to the issue of full fiscal autonomy in a moment.

Clearly, the existing Scotland Act contains some fiscal powers for the Scottish Parliament: principally, the ability to vary the basic rate of income tax by 3p higher or lower than the UK rate. That has never been used, partly because the SNP Administration in Edinburgh has allowed the levy required each year for the mechanism to stay in place not to be paid. There is a more fundamental point, however: the administrative and set-up costs for making that small change in the income tax rate are disproportionate to the revenue that would be raised.

When the House was considering the Bill that became the Scotland Act 1998, it was calculated that it would raise, at the most, an additional £450 million. Given a total Scottish Office budget of over £22 billion, it was a tiny measure and would involve considerable start-up and administrative costs and not generate enough revenue. I can understand why it has not been introduced so far.