Defence

Stewart Malcolm McDonald Excerpts

Thursday 11th January 2018 Commons Chamber

[Douglas Ross]

I am very grateful to the Minister for that. In fact, I would have loved it if SNP Members had gone through their own local press, rather than mine in Moray.

I hope that we do not get too far away from consensus again, but I do want to mention the nat tax. Approximately 10,000 military personnel and 4,000 civilian employees working for the Ministry of Defence are based in Scotland, and the SNP plans to make Scotland the highest-taxed part of the United Kingdom, with everyone earning more than £24,000 paying more tax. I have been contacted by a number of constituents about that.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

I am glad this is the consensual part of the hon. Gentleman’s speech, because he will of course acknowledge that the frontline squaddies—the lowest-paid in the Ministry of Defence—are getting a tax cut in Scotland under the new tax powers, whereas his Government are freezing their pay, which is actually a pay cut because of inflation. He might want to look at his figures a wee bit before he expands on his point.

[Douglas Ross]

There we go—no denial from the SNP that it is making Scotland the highest-taxed part of the United Kingdom. A number of my constituents based at both Kinloss and Lossiemouth are contacting me, aghast at the plans by the SNP that will see them paying more tax than their counterparts based in other parts of the United Kingdom. [Interruption.] If it is the Conservatives who are so wrong, maybe SNP Members also disagree with the Scottish chamber of commerce, which said that their move is a “disincentive to investment” that will be difficult to reverse. The SNP should reconsider the policy before implementing it later this year. I hope the Minister will urge SNP politicians in this place to encourage the SNP Administration in Edinburgh not to go ahead with the nat tax. If they do, will the Minister look at options for supporting our personnel based in Scotland who will be faced with these higher taxes?

[Stewart Malcolm McDonald]

Will the hon. Gentleman give way?

[Douglas Ross]

I have already given way to the hon. Gentleman.

I also want to look at aspects other than just the two bases in Moray. First, the families connected with our serving personnel are an integral part of our communities, as the hon. Member for Caithness, Sutherland and Easter Ross said, and they are involved in all aspects of our communities. A lot of spouses of military personnel work in local schools and hospitals, and are vital to ensuring that those local services remain open. In Moray, it is estimated that 13% of all school pupils have a military connection, ensuring that some of the smaller schools remain open.

Today is 11 January, which means that it is the new year in the Julian calendar. Along with local people in Burghead, military personnel from Kinloss and Lossiemouth will be taking part in the clavie ceremony today, when clavie king Dan Ralph puts a barrel of burning tar on his back and troops it through Burghead up on to Doorie hill. I always try to get the clavie mentioned on 11 January; I have managed to fit it into this debate somehow. I will find out in a few moments if it is the first time the clavie and Doorie hill have ever been mentioned in this Chamber when Hansard ask me for the correct spelling. The clavie ceremony is another example of how military families get involved with local traditions, and that is to be welcomed.

Our military families play a crucial role in Moray, across Scotland and throughout the United Kingdom. There has rightly been much talk today about the Government ensuring that investment continues now and going forward, and I would like to see that. We are seeing investment in Scotland, including in Moray. We are gratefully appreciative of all the money and investment going into Moray, and we will be serving our local area and the country very well from Moray. I look forward to the rest of this debate so we can continue celebrating the contribution of Moray and service personnel across the United Kingdom.

--- Later in debate ---

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

This is one of the few debates in the House that has been not only extremely well mannered, but extremely well informed by Members from all parts of the House. I cannot single out all of them, but I want to mention the typically well-informed duo who make up the chairs of the all-party parliamentary group for the armed forces, the hon. Members for Stoke-on-Trent North (Ruth Smeeth) and for North Wiltshire (James Gray). Of course, the Chair of the Defence Committee gave an incredibly thoughtful speech.

Despite the brief diminution in consensus, I will single out the hon. Member for Moray (Douglas Ross), who spoke incredibly proudly of his constituency and its long, historic connections to the armed forces. He will be glad to know that I will be returning to the issue of tax, which I will be very pleased to do.

In the short time he has been here, the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) has shown himself to be a force to be reckoned with in defence debates. I even found myself hear-hearing at the end of the speech by the hon. Member for Barrow and Furness (John Woodcock), which is possibly a first for an SNP Member and is making him visibly nervous as I finish this sentence. Of course, it is a pleasure to follow my good friend, the hon. Member for Glasgow North East (Mr Sweeney). Of course, there were also excellent speeches from the SNP Benches by my hon. Friends the Members for Glasgow North West (Carol Monaghan), for Glasgow South West (Chris Stephens) and for West Dunbartonshire (Martin Docherty-Hughes).

I really do want to single out the hon. Member for Gedling (Vernon Coaker), who secured the debate. His opening speech was a forensic, thoughtful, blistering, sobering and eye-opening contribution on the state of defence and the armed forces and on the challenges we face now and will face in the future. The House is much better informed as a result of his securing the debate today. As he mentioned, it comes in the context of international threats from Russia, North Korea and an extremely unpredictable incumbent in the Oval office in the United States; new threats in relation to cyber-security and cyber-defence; and a boisterous Russia, which seems to have been in our waters on an almost weekly basis over the past few years.

Following the reshuffle, Defence is Whitehall’s only all-male, all-white Department. The one woman who was a Minister there was replaced by a man. I make an appeal to the Prime Minister, which perhaps the Minister on the Treasury Bench, who knows that I respect and like him, can take back: why can we not have the promotion of the hon. Lady sat behind him, the hon. Member for Berwick-upon-Tweed (Mrs Trevelyan)? She would not only make a fine Minister, but bring a new sense of dynamism and youth to that extremely male-dominated Department. I fear that my endorsement may have the opposite effect. [Interruption.] The kiss of death, I hear. In the week when the Army launched its diversity recruitment campaign, the one woman who sat in the Ministry of Defence as a Minister was moved elsewhere. So much—[Interruption.] So why not promote another woman to replace her instead of a man? That is the point I make to the House.

I want to look at the condition and state of the armed forces and illustrate what has been mentioned in the debate. Let us start with the Army, which is smaller than at any time since the Napoleonic wars. I will speak about terms and conditions, starting with the issue of pay. Because inflation is about 3%, the 1% pay cap is, in real terms, a cut to armed forces wages. It is no wonder that some on the Government Benches are looking at their feet, because I would be embarrassed to come to this Chamber and defend the Government’s record on armed forces pay.

Under the new rates of Scottish income tax, an Army private on a salary of £18,500 will pay less than their counterparts based anywhere else in the United Kingdom. These personnel make up the vast majority of those who are based in Scotland. Those at the higher ends of the pay scale—who, yes, will pay a bit more—make up a tiny percentage. This is a legacy of decades of under-investment in defence in Scotland by the Conservatives and by Labour. Let us look at the increases in context. Under the new SNP tax plans, an Army sergeant will pay an extra £1.44 a week, and a naval lieutenant will pay an extra £2.61 a week.

The hon. Member for Moray, who was so outraged by all this, may wish to take one figure—the average salary in his own constituency. I took the liberty of looking it up just after his speech: it comes in at £22,584. The average taxpayer in his constituency will not pay any more. The frontline squaddie in Scotland is getting money in his pocket thanks to the SNP, while the hon. Gentleman’s party cuts his wages, insisting on a continuous pay freeze.

[Douglas Ross]

Let me say once again that the nat tax will make Scotland the highest-taxed part of the United Kingdom. The hon. Gentleman will have to accept, despite what he says, that anyone in Scotland earning more than £24,000—hardly a high earner—will pay more tax under the SNP plans than they currently do. That is affecting members of our armed forces, who have been in contact with me about it.

[Stewart Malcolm McDonald]

I am grateful to the hon. Gentleman for allowing me to go over the figures again. An Army sergeant with a salary of about £33,000 pays £1.44 a week more. I think that it is fair to ask them to pay a little more, and entirely fair to ask officers who are earning in excess of £65,000 to pay a little more. Let us bear in mind that the average salary in his seat is under £23,000.

[John Spellar]

Will the Army sergeant, or member of whichever rank, be paying these tax rates based on where he was born, where he was living when he joined the forces, or where he is based?

--- Later in debate ---

[Stewart Malcolm McDonald]

Where they are based. That is why I said that the squaddies in Scotland will get a tax cut. What we can unite on—the right hon. Gentleman’s party; my party; and, I understand, some sympathetic members of the Government party—is that it is time to lift the public sector pay cap, which is affecting serving soldiers.

[Patrick Grady (Glasgow North) (SNP)]

Is it not the case that the sergeant my hon. Friend mentions who will be paying a little more tax will be getting free prescriptions, while their children will go to university for free and their grandparents will get free social care, because that is the social contract that the Scottish Government have with the people of Scotland?

[Stewart Malcolm McDonald]

They will benefit from many elements of the social contract. Of course, they already receive some of these benefits as members of the armed forces anyway.

I turn to the issue of housing. I was amazed to hear what the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) said. Actually, I should have singled him out because he gave a thoughtful speech. Military housing that I have seen is the kind of stuff that you would not put a dangerous dog into. It is one area where the right hon. Member for Rayleigh and Wickford (Mr Francois)—who is not in his place, unfortunately—sees that the Government really need to put some work in.

On recruitment, as my hon. Friend the Member for Glasgow North West said, we need an urgent alternative to the Capita recruitment contract, which rakes in about £44 million per year over 10 years. It was the right hon. Member for Rayleigh and Wickford who suggested, in his marvellous report last year, that an alternative way needed to be found to fill the ranks. On terms and conditions, let us get our house in order. The right hon. Gentleman has now rejoined us.

I say to Labour Members, in the genuine hope that we can work together on this, that we should get an armed forces trade union Bill before the House. Let us give the armed forces the dignity and decency they deserve as workers in uniform so that they are in a better position to bargain for better terms and conditions for themselves and their families. I am very pleased not only that that was in the SNP manifesto, but that my party is currently undertaking some policy work—led by our armed forces and veterans spokesperson, my hon. Friend the Member for Glasgow North West—on how we can improve the terms and conditions offered to the armed forces.

[Mr Francois]

The hon. Gentleman has mentioned accommodation. I do not know whether he is aware that Carillion, the parent company of CarillionAmey, is in an extremely difficult financial situation at the moment. It is actually in discussions with its creditors about whether the company will be allowed to continue. Under those circumstances, does he agree that it is extremely important for the Ministry of Defence to have a plan B, so that if the worst were to happen to the corporate entity, its personnel can still receive a housing service?

[Stewart Malcolm McDonald]

I am very grateful to the right hon. Gentleman for his intervention because he is absolutely right. My preferred option would be to bring this back in house. I do not know whether he would go that far, but his central point is right that the MOD needs a plan B. I have been watching with interest the news on Carillion, which made the papers just this morning, and this is a really critical time for it.

I want to talk about capability, and I will do so briefly. We are running slightly ahead of time, but I wish to hear what the Minister has to say. Following the 2015 SDSR, there is a new mini-review, led by Sir Mark Sedwill, as several right hon. and hon. Members have mentioned. The review is looking at both security and defence aspects. My fear, which other Members have adumbrated, is that it is about what the Government can get away with spending, as opposed to what they need to spend given the threats they face.

As the hon. Member for Gedling said in his speech, we learned from a report in the Financial Times at the weekend that the review will now be split. Many of the Members who regularly attend defence debates will recall that the report was supposed to be published, and presumably a ministerial statement would have been made, early in the new year. I would have been charitable and extended that right up to the end of March. We now learn, however, that the defence aspects will be kicked later into the year. I would be grateful to the Minister if he told us in his summing up whether that is the case. The cynic in me does wonder—I am not normally one for being cynical—if this is about getting beyond the local elections in May. I sincerely hope not, because that kind of politics is not on.

[James Gray]

The hon. Gentleman seems to imply that there is some plot or conspiracy involved in splitting up the security and defence parts of the review. If that is the case, I strongly welcome it, because that means there is a much greater chance that the defence budget will not be cut. If the two parts are announced together next week, the extra spend—on cyber, for example—will come straight out of the defence budget. If he wants them to be announced next week, he is actually speaking in favour of defence cuts.

[Stewart Malcolm McDonald]

The hon. Gentleman is much more optimistic than me. I have seen just this week, on the European Union (Withdrawal) Bill, how the Government do this kind of thing. They take every opportunity to pull the wool over people’s eyes. He need only ask his colleagues the hon. Members for Moray and for West Aberdeenshire and Kincardine, as well as the rest of the Scottish Conservative intake. We need a proper SDSR that takes account of the fact that we will no longer be members of the European Union, and of the fact that we have had currency fluctuations and the devaluation of the pound. I am in favour of taking more time if we get a more considered outcome, but the cynic in me suggests that that is not what is at play.

[Dr Julian Lewis]

I hope that the hon. Gentleman will see that separating defence from the amalgam that has been created could be a good thing, by focusing attention on the purely defence aspect, as he acknowledges, and by giving a new Defence Secretary the opportunity to fight and win the battles with the Treasury that need to be fought and won.

[Stewart Malcolm McDonald]

I am amazed that with their combined experience, the hon. Member for North Wiltshire and the right hon. Member for New Forest East (Dr Lewis) appear so optimistic, and I fear they are trying to square a circle that cannot be squared. For more than a year, the SNP has called for a proper SDSR to take account of the fact that we are leaving the European Union, as well as the devaluation of the pound and currency fluctuations.

We must also address the nonsense that we have heard about 2% of GDP. The Government do not spend 2% of GDP on defence, and we should not let them get away with claiming that they do. That 2% includes things such as pensions, efficiency savings, and all sorts of things that it ought not to include. [Interruption.] I see that you are getting nervous about the time, Madam Deputy Speaker, so I will conclude my remarks and say that I think we should have more such debates on defence in the House. I think we should do that in Government time, and that the Defence Secretary should have turned up to the first defence debate of his tenure. It should not always be up to the Opposition to drag the Government to this Chamber to explain their woeful record.