Scotland and the Union

Tom Clarke Excerpts

Thursday 29th November 2012 Commons Chamber

[Graeme Morrice (Livingston) (Lab)]

I am pleased to be a co-sponsor of the debate, alongside the hon. Member for Epping Forest (Mrs Laing), whom I am delighted to follow. In a way, as a Scot who represents an English constituency, she epitomises what the motion is about: the rich blend of the best of all four corners of our land that has made the United Kingdom of Great Britain and Northern Ireland the success story it so evidently is. There is no doubt that the United Kingdom is greater than the sum of its constituent parts. Although I might disagree with her politics, I have no doubt that we, as Scots, share a love of our country and want to see what is right and proper for its people and for future generations. It is also fitting that we are holding this debate on the eve of St Andrew’s day, the national occasion when we Scots come together to celebrate our patron saint and demonstrate our pride in all things Scottish.

As the motion states, Scotland has made a significant contribution to the United Kingdom over the 305 years of the Union, and it continues to do so. Indeed, our shared history goes back even further to the union of the Crowns in 1603, when a Scot, James VI, sat on the English throne as James I. He was the first of six monarchs in the Stuart line who ruled both England and Scotland, as well as Ireland, until the Glorious Revolution, and then again to 1714. In fact, it was Queen Anne, the last of the Stuart line, who became the first monarch of the political union of Britain.

With the Acts of Union in 1707, Scotland quickly took advantage of the abolition of trade tariffs with England and trade blossomed. The 18th century also saw the Scottish enlightenment, a period characterised by momentous intellectual and scientific accomplishments, so much so that Voltaire said:

“We look to Scotland for all our ideas of civilisation.”

With the advent of the Union, Scots took up positions of power in politics, the civil service, the Army and Navy, trade, economics, colonial enterprises and other areas across the emerging British empire. The historian Neil Davidson has observed:

“Far from being ‘peripheral’ to the British economy, Scotland...lay at its core.”

Indeed, throughout the industrial revolution Scotland more than punched above its weight and became known across the world for its excellence in engineering, as typified by Clyde-built ships.

Through advancements in medicine and its inventive spirit, distinct banking system and contribution to art, literature and culture, Scotland has always added greatly beyond its shores. Even in times of adversity, the people of Scotland have not been wanting. During the first world war, despite Scotland having a population of only 4.8 million, over half a million Scots went to the front. My purpose in touching, albeit briefly, on 300 years of Scottish history is to point out that many of our achievements and benefits were because of our place within the UK, not in spite of it.

Scotland is linked intrinsically to the rest of the United Kingdom socially, politically and economically. The single market within the UK affords significant economic, trade and employment opportunities to people on both sides of the border. Our membership of the European Union, through the United Kingdom, provides a vast marketplace for Scottish exporters. Together we have a place at the top table of the European Council of Ministers and we are one of the G8 forum of the world’s largest economies and a permanent member of the United Nations Security Council, all of which allows us to wield unprecedented influence on the European and global stages. As a member of NATO, we have collectively benefited since the war from international security and defence co-operation on a grand scale.

When it comes to the economy, Scotland has a very important relationship with the rest of the UK. Scotland benefits from access to a market comprising tens of millions of people within a single jurisdiction. Scots are employed by firms based in the rest of the UK, and people in the rest of the UK benefit from employment opportunities with Scottish-based companies. Indeed, in 2010 Scotland’s exports to the rest of the UK were worth double its exports to the rest of the world— £44 billion and £22 billion respectively—and manufacturing exports were estimated at £13 billion.

[Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)]

I welcome my hon. Friend’s point about manufacturing industry. Does he agree that the sizeable increase in manufacturing, which is taking place as we speak, has arisen mainly as a result of the Scottish contribution?

[Graeme Morrice]

I certainly concur with my right hon. Friend on that point.

In addition to the shared opportunities, the pooling of resources across the UK allows risk as well as reward to be spread, as seen most notably in the bail-out of the Scottish-based banks during the financial crisis, when the UK, led by a Scot, injected £37 billion of capital into the banks—an amount in excess of the total budget of the Scottish Government.

The legal framework for business is more or less uniform across the entirety of the UK. That means that there is a similar taxation, regulatory and employment law regime throughout the UK. On the benefit of a single market both to Scotland and to the rest of the UK, the director general of the CBI has stated that the

“raft of common laws and regulations...make operating across the different constituent parts of the union more efficient.”

The National Institute of Economic and Social Research has noted that the Scottish economy is

“more integrated with the rest of the UK than Europe or the rest of the world.”

With regard to jobs, people on both sides of the border benefit from employment opportunities engendered by Scotland being part of the Union. The UK Government are a major employer in Scotland, with more than 30,000 civil servants bringing almost £700 million annually to Scotland in salaries alone. Thousands of jobs also rely on the defence sector in Scotland, with 40,000 people employed in more than 800 companies. Companies from the rest of the UK contribute about one fifth of private sector economic activity in Scotland.

On energy, North sea oil is an important contributor to the UK economy, accounting for thousands of jobs in the north-east of Scotland, and a valuable source of revenue for the UK Treasury. However, the supply is declining and unstable. Recent reports show that North sea oil production fell by 30% in 2011 compared with the previous year. For the past 18 years, the level of public spending in Scotland has dwarfed the total revenue from North sea oil; in 2009-10, the difference was £18 billion. In fact, welfare spending in Scotland in 2010 was three times higher than North sea oil revenue. Of course, oil and gas remain an important part of the Scottish and UK economies and will do so in the years to come, but to bet Scotland’s economic future on this sector, as the Scottish National party does, is naive at best and foolhardy at worst. Moreover, Scotland being outwith the UK would create uncertainty for the future of Scotland’s renewables industry, and potentially lead to higher fuel bills and a £2 billion burden on Scottish businesses, due to Scotland receiving a disproportionate share of the available subsidy compared with the rest of the UK. These figures highlight the many benefits of Scotland being part of the UK economy in that we are able to work together in partnership to share the risks and rewards involved in harnessing our energy resources.

Scotland being part of the UK also allows us to pool our resources and distribute them on the basis of social need across the welfare state. If it were outwith the UK, that would place a major question mark over its ability to continue to fund benefits at current levels and to meet state and public sector pension commitments. It is simply an illusion for the SNP to promise Scandinavian levels of welfare spending while supporting Irish levels of taxation.

There are many other positives on which I could elaborate, such as the flexibility across borders which has over the years benefited people on both sides and led to high levels of migration in both directions; indeed, I personally have been a beneficiary of that. Our common currency is one of the oldest monetary unions in the world. A practical and more recent example is the benefit derived by Scottish athletes from UK sports funding, facilities and coaching in the run-up to the Olympics and Paralympics. It is interesting to note that all but three of the Scots who won medals at the Olympics had team-mates from the rest of the UK.

--- Later in debate ---

[Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)]

On one point, I think all sides of the House can agree: that in the debate so far, we have made it clear that it is right that the people of Scotland determine their own destiny. Later, if I have time, I will refer to the position on 16 to 18-year-olds, but first I will make a few personal comments.

My own political motivation has been the need for action where and for whom it is most needed, whether in my constituency or in one of the poorest countries in the world. Representing my constituency is my No. 1 priority, as it is for other right hon. and hon. Members, but throughout my time in the House I have worked alongside organisations committed to helping people with disabilities and assisting people from the most impoverished countries in the world—nothing inward-looking, nothing introspective. I managed to get two Acts of Parliament on the statute book covering both the subjects I have mentioned, and I believe that both Acts were to the advantage of the whole of the UK.

Those twin factors are at the heart of my activity, and will continue to be so. In other words, lines on maps do not excite me at all. I do not judge people or their plight by where they live. Many people have no choice in where or how they are born and are not tempted by the ideological Disneyland of the Scottish National party. I abhor the jingoistic mentality that peddles the myth of a Scottish solution for this, or an English solution for that. Time and again in the House, we have seen that the best solutions are those that are in the interest of the whole of the UK.

I do not accept the politics of parochial arrogance, but I worry that Scotland is moving towards that, with the police becoming one authority, likewise the fire services, and the statement from a member of the Scottish Government this week about reducing the already rather small number of Scottish local authorities. I much prefer to take a more international perspective on these matters, and I am much more inclined to the view expressed by former President Bill Clinton:

“The world has become completely interdependent, but we can’t make up our minds what that interdependence is going to look like. Interdependence simply means you can’t get a divorce”.

Time does not allow me to develop the theme, but I think it is fundamentally true.

In 2010, the British people spoke and, like it or not, we have in place a coalition Government. Upon their election, the coalition Government narrative was that the economic mess was all Labour’s fault. It has to be said that that line was successful for a short period, but with the passage of time and increased borrowing, to an extent we have hardly ever known, no one now believes it to be true. Economies throughout Europe are on their knees, and our constituents can see on their television screens public demonstrations in countries where Governments are implementing severe austerity measures. The question is not how many countries are struggling financially; it might be easier to name countries that are not.

Why then am I against Scotland seeking a divorce from the United Kingdom? I am against it mainly for economic reasons, but there are other reasons that, if time allows, I will explain. One third of newly created manufacturing jobs in the UK have been created in Scotland recently. UK firms employ one in five Scottish workers. Scottish exports to countries outside the UK had a value of £22 billion. Scottish exports to England, Wales and Northern Ireland totalled £44.9 billion. The Scottish banking sector was saved by the UK and the decisions of the former Chancellor, my right hon. Friend the Member for Edinburgh South West (Mr Darling).

Leaving one economic union of 63 million to join one of 330 million and expecting an equivalent say in monetary policy is an absurd notion, while a race to the bottom with Ireland when it comes to corporation tax rates does not fill me with optimism—quite the reverse. Likewise, relying on oil when we have experienced 12 consecutive years of decline in the amount of gas and oil extracted from the North sea is not wise. It is a dwindling resource, not a foundation for the future.

[Mr William Bain (Glasgow North East) (Lab)]

My right hon. Friend is making an exceptional and passionate case for economic co-operation within the United Kingdom. Does he share my concern that, according to the Office for Budget Responsibility, by 2040 we will see an elevenfold decline in oil and gas revenues? Does that not demonstrate why, if we are to diversify the economy, we should do it from a position of strength within the UK?

[Mr Clarke]

That is an excellent point, and I am delighted that my hon. Friend makes it.

Last weekend, I was in a town centre of my constituency talking to my constituents and listening to their views, mainly on independence. I am bound to say that my experience was clear and unequivocal: there is no appetite in Scotland for a referendum, and people are curious to know why, if we insist on having one, we have to wait until 2014. They are worried about issues of concern to this House: unemployment, food prices, energy prices, petrol prices and much more. People are struggling to cope financially, and for many a referendum is a complete and utter waste of time and money, but that is the reality we face, so let us have the debate. Economies all over the globe are struggling with the worldwide downturn, so let us not pretend it is happening only in the UK. Of course some people want independence, and they are entitled to that view—I respect it, but disagree profoundly with them. When I visit schools in my constituency, I find that some pupils want independence, but the vast majority do not want to separate Scotland from the United Kingdom.

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

When my right hon. Friend was out on the streets of Coatbridge on Saturday, how many people came up to him and said, “I would like an independent Scotland to join Schengen and to have the euro as my currency”?

[Mr Clarke]

My hon. Friend makes a good point. I cannot remember anyone saying that. I remember what I would describe as a great surge among my constituents against independence and them telling me to get down here and fight what they are opposed to: separatism.

Still talking about young people, I recently visited Cardinal Newman school in Bellshill—an important part of Scotland, represented by my hon. Friend and I —and spoke to a modern studies class. At the end, I asked about a subject that we did not touch on in our earlier discussion. I asked, “How many people here would reduce the voting age to 16 for the referendum?” Eight voted for, 22 voted against. I hope that the independent Electoral Commission will decide such matters, not those who have abused powers whenever they have had the opportunity.

[Jim McGovern (Dundee West) (Lab)]

I recently visited a secondary school in my constituency. Quite a few pupils in the fourth and fifth years said it seemed crazy to them that in November they could not buy a packet of sparklers, but that they might be allowed to vote on the future of the country.

[Mr Clarke]

That is an interesting point and I am glad my hon. Friend has made it.

I am no different from the constituents I have described. In the last Parliament—my hon. Friends will not be surprised that I am raising this issue—I worked with my right hon. Friend the Member for Morley and Outwood (Ed Balls), now the shadow Chancellor. Our joint activity produced £340 million to help children with disabilities throughout the United Kingdom. Scotland’s share was £34 million, but none of the money was ever seen by children with disabilities. Sadly, children with disabilities did not receive one penny of the cash. It became known as the missing millions. Obfuscation was the response from the First Minster to questions posed by Wendy Alexander and Johann Lamont. The First Minster was given every opportunity to come clean on what had happened to the money. I wrote to him and asked for a meeting. He replied that he was too busy and his diary too full, but he passed my office on at least six occasions on his way to and from a neighbouring by-election, and I passed him on the stairs when he was down here voting against the Labour Government.

That was a shocking and disgraceful decision by a Scottish Government led by Mr Salmond. Indeed, that high-handed imperious attitude cast a doubt in my mind about whether the First Minister could ever be trusted as the leader of a country. In the last few years the SNP has attempted to define Scottish patriotism to the outside world—a patriotism that in their hands is simple to the point of being simple minded, self-loving to the point of being self-deceiving, and nostalgic to the point of being destructively naive. I have greater faith that the people of Scotland have a great sense of what is right and what is wrong, and will vote accordingly when the time comes.

[Several hon. Members]

rose—