Scotland’s Place in the UK

Debate between William Bain and Angus Robertson

Thursday 6th February 2014 Commons Chamber

[Mr Bain]

I want to keep the focus on positivity in this debate, and I would simply point out to the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) that the one party that was inconsistent in its approach to tax powers being devolved in the Scotland Act 2012 was the party he sits alongside on those Benches.

As a result of the Edinburgh agreement, Scotland faces a choice between two futures in the 18 September referendum: an optimistic path that builds on the strength of the devolution settlement and our common institutions, such as the Bank of England, to make our economy more productive and where ordinary people share more in the benefits of growth; and a pessimistic path implying that erecting borders is more important than bringing down barriers in terms of inequality and lack of opportunity across these islands.

[Angus Robertson (Moray) (SNP)]

The hon. Gentleman says he wants to make a positive case. In a debate about significant constitutional change, to take such a tone is a good thing, but if he is making a positive case and if the Labour party knows what further powers it wants to give to the Scottish Parliament, will he say whether it is true that some of his colleagues are going to boycott his own party conference?

[Mr Bain]

That is an odd intervention, because I am looking forward to my party conference in Perth—I have already booked my rail ticket—and I will enjoy campaigning in the city of the hon. Member for Perth and North Perthshire (Pete Wishart) when I am there.

No silver bullet comes from statehood and no instant answer to declining living standards will come from redrawing lines on a map. It will take politicians at every level of governance, together with civic society and engaged citizens across these islands, to work together so that ordinary people share more fairly in the wealth they produce, to reform our banking system, to work towards a more universal child care system and to reverse the crises of long-term youth unemployment, low business investment and weak productivity before they cause long-term damage to the fabric of our country. We must reshape lives, not reorder our geography.

I am optimistic about Scotland’s future. It is the home of groundbreaking initiatives on science and research, supporting high-level manufacturing and enhancing the huge international reputation of our universities and colleges. Scotland’s economy can have a great future as a beacon for investment in renewable energy, if we combine our natural resources with the strength of UK investment networks and markets. I see a Scotland where, through UK Trade & Investment, we increase our share of global trade, creating thousands of jobs in manufacturing, including in our largest manufacturing sector, our burgeoning food and drink export industries.

We can remove the barriers to work for tens of thousands of women in Scotland by creating a more universal child care system, which is one of the biggest drivers of increased prosperity in working households with children; we can support sectors of the economy that create high-skilled, higher-paying jobs; and we can deliver a revolution in workplace skills to make progression within a job and a career a reality for millions. Our ambition must be to create a society that has better health and educational outcomes and that uses the strengths of every level of government to eliminate the in-work and out-of-work poverty in Scotland described so starkly this week by the Joseph Rowntree Foundation.

Such a vision can be delivered only on foundations that are secure, not built on sand. If Scotland is to prosper, rather than merely survive, we need sterling as our strong and guaranteed currency, backed by a monetary, fiscal, banking and political union and anchored by the Bank of England as our central bank. If Scotland is to thrive rather than languish, we need a single market in goods, capital, labour and products across the United Kingdom, with no internal barriers to ambition or trade. If Scotland is to walk tall in the world and tackle global poverty, hunger and disease, as well as climate change, we need the strongest representation through the United Kingdom in a range of international bodies, stretching from the G8, to the World Bank, the International Monetary Fund, the Commonwealth, the UN Security Council, the Council of Europe and—yes—the European Union.

The only way we can bolster these foundations is by rejecting separation and endorsing devolution and full partnership within the United Kingdom. I look forward to hearing the contributions in this debate, but I reflect on the fact that the nature of politics has to change in Scotland too. The spirit of unity in 1999 has sadly turned into an air of rancour and bitterness. If, as I hope, we achieve a strong and decisive vote in favour of devolution and against separation, people in Scotland will need to move forward not as divided tribes of devolutionists and nationalists consumed by enmity, but filled with a shared political destiny.

I hope we can reach out the hand of friendship to those on the other side of the debate and begin the conversation that my right hon. Friend the Member for Paisley and Renfrewshire South (Mr Alexander) mentioned in order to move from the low divisiveness of these times to the uplands of a Scotland that can thrive within a strong United Kingdom. I look forward to hearing the rest of this debate, but my wish is that by the end of this year we can proceed in one direction, as one people, one Scotland, as part of one United Kingdom whose best days are ahead of us.

European Union (Croatian Accession and Irish Protocol) Bill

Debate between William Bain and Angus Robertson

Tuesday 6th November 2012 Commons Chamber

[Mr Bain]

It does not follow from the EU’s deliberations with Croatia that Croatia’s offering another state’s central bank would have been acceptable to the EU in order to obtain the Commission’s recommendation for approval. That has intriguing lessons for future accessions and re-accessions. That is the implication of the Bill.

Croatia, through the State Agency for Deposit Insurance and Bank Rehabilitation, can guarantee bank deposits. It made significant improvements to this scheme in anticipation of complying with EU directive 94/19/EC, which specifies that all member states must have in place a safety net for bank depositors. It cannot be a criterion, then, for future accession or re-accession countries to fail to have a system to protect bank deposits. That is the implication that comes from Croatia’s accession process and which is reflected in the Bill.

The obvious question arises—the FCO mentioned this in a statement on Thursday—of how, if part of the EU were put into limbo, it could possibly meet the terms of such an EU directive, having no independent central bank, no machinery to guarantee bank deposits and having to rely on the central bank of another state to guarantee bank deposits. Those are all implications that come from Croatia’s accession process.

The lessons of the negotiations for any new aspirant state highlight the following issues: does it have its own financial services regulator or would it seek to continue with the current regulatory framework, which would be conducted by another state? What would be the governance arrangements for any financial services regulator? What degree of independence from Government would that have? What institution would be prepared to stand behind financial services firms with large deposits or policy holder liabilities? Indeed, how would it be possible to provide lender of last resort facilities without assuming regulatory control over financial transactions such as mortgages, insurance and even pensions? All these are issues that arise out of the Bill and the accession process that Croatia went through.

Finally, a framework to wind up failing or failed banks is required. In Croatia’s case, in chapter 9 of the 2009 common position document, the EU welcomed the alignment of Croatia’s legislation to the EU acquis with regard to bank accounts, branch accounts and the re-organisation and winding up of banks. In addition, the European Bank for Reconstruction and Development, in its 2010 to 2013 strategy for Croatia, considered the securities market regulator highly effective in pursuing complex cases. All those steps were essential in showing compliance with the EU acquis in order for Croatia’s application for membership to be accepted.

With reference to the rights of EU citizenship being conferred on Croatians joining the EU, it is appropriate that the Bill permits a phasing in of the right to work. The Minister was right to say that the UK should make use of the flexibility that allows up to seven years before full free movement rights will apply to Croatian nationals in the UK, as was the case with the accession of Bulgaria and Romania to the EU earlier.

The Opposition support future enlargement on the proper criteria. We note the applications made by Serbia, Montenegro and Turkey. Serbia was granted candidate status on 1 March this year, but has been advised by the EU that it can commence formal accession negotiations only if progress is made on the status of Kosovo and its future relations with Kosovo.

The Bill is important for Croatia’s relations with the rest of the EU and the outside world. In demonstrating that a country engaged in a bloody conflict two decades ago can emerge and be in a position to join the EU now, it shows the powerful benefits of full membership of the EU—benefits that go far beyond being a member of the European Free Trade Association. Simply being a member of that institution could render a country liable to be a net contributor to the EU budget but without any influence over how it is spent, and to be bound by the rules of the single market but with no ability to shape those rules. It was interesting that we had some figures this morning from the recent past of Scottish politics advising that a separate Scottish state should, instead of seeking EU membership, seek membership of EFTA instead—

[Angus Robertson]

On a point of order, Mr Deputy Speaker. Would I be right in remembering your ruling to Members of the House that the debate should be about Croatia, not Scotland?

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

That is not a point of order, but the hon. Gentleman is absolutely correct. I have mentioned to Mr Bain that I need him to come to order on Croatia. I am sure he will do that, in the same way as other Members did who drifted when we pulled them back into order. That is where Mr Bain is now going.