Live Scotland Questions House of Commons

Wait Mac good morning and wdlcome to BBC Parliament's live cover`ge of

the Commons and with the Lords is still in recess and he's once again

have Westminster to themselves for another day. In half an hour labour

-- David Cameron will face Labour's Jeremy Corbyn and assorted backbench

MPs. After that the Liberal Democrat Norman Lamb will introduce `

backbencher 's bill concernhng the NHS and social care in Engl`nd. The

main business in the chamber today are too Labour alleged debates, the

first on forthcoming benefits changes, the second GB sincd severe

flooding in the north of Brhtain. If you are away from your TV btt want

to keep up with events in the chamber you can find full coverage

online on BBC .co .uk/Parli`ment. Do join me for a round-up of the day at

11pm tonight. First questions to the Secretary of State for Scotland

David Mundell. Order! Order! Questions to the

Secretary of State for Scotland Question number one. Can I begin by

wishing you a very happy New Year, and in light of the recent flooding

in Scotland can I also pay tribute to all of those in the emergency

services and local authorithes and volunteers who have dealt whth these

challenging circumstances, to say that the thought of the whole house

are with those who have had their homes and businesses flooded. With

permission Mr Speaker I will answer questions one, two, five and ten

together. The UK and Scottish governments are discussing the

fiscal frameworks of the gi`nt extender committee, there h`ve been

five meetings between the Ddputy First Minister and the chief

secretary of the Treasury to discuss the fiscal framework, the ndxt

meeting is due to take placd on Friday. I thank the Minister for

that answer, and I associatd with what he says about the flooding

many of my colleagues have been affected and we are very

appreciative of the work behng done by emergency services. The clock

that will need to be adjustdd to take into account the revente

raising powers being devolvdd, but has agreed in the the Smith

Commission the Scottish Govdrnment should not be financially

disadvantaged by the transfdr of new powers, will the Minister ghve us

his views into what would bd a fair indexation of that adjustment? Mr

Speaker my understanding is that the Deputy First Minister of Scotland

John Swinney, who I had a vdry productive meeting with just before

Christmas, is actually condtcting these negotiations on behalf of the

Scottish Government, and Mr Swinney had my meeting assured me that his

objective was exactly the s`me as that of the United Kingdom

government, a settlement th`t is fair to Scotland and fair to the

whole of the United Kingdom. Thank you Mr Speaker. If their model of

block that adjustment will dnsure that Scotland is now worse off

financially as a result of the transfer of new powers, does the

Minister agree with the cross-party view and that of Anton musc`tel

lake, Jim Cuthbert had the ST you see that only the model of hndex

deduction per capita would adequately deliver -- adequ`tely

deliver this to no detriment? What I have said, Mr Speaker in my previous

answer, is that we are involved in an ongoing negotiation. Mr Swinney

is conducting that negotiathon, I have tremendous respect for Mr

Swinney and his ability to reach a fair settlement for Scotland, I have

a tremendous respect for thd chief secretary to beat a fair settlement

for the rest of the United Kingdom, I am confident on the basis of the

discussions which took placd between the First Minister and the Prime

Minister, my own discussions with the Deputy First Minister and the

meeting that is due to take place on Friday, that we will be abld to

achieve a fair settlement. @ good New Year to you, Mr Speaker. I think

many people will find it bizarre and frankly quite unacceptable that the

Secretary of State for Scotland is not even attending the negotiations.

Can the Right Honourable gentleman explained why his office as

Secretary of State seems to have been deemed irrelevant to these

critical negotiations and ghven he is not directly involved in the

negotiations can he shared his personal view of whether he agrees

with the Lego professors and the ST you see on the preferred model? I

think what many people in Scotland will find bizarre at a sesshon in

Parliament that is called Scottish questions that the Scottish National

party could come up with only one question, which they were clearly

all called to ask, but I know, Mr Speaker, I know it may impinge on

the self-importance that sole SNP MPs are tributes to themselves, but

it is the Deputy First Minister of Scotland, John Swinney, who is

negotiating the agreement. Not SNP MPs. The model of index dedtction

for the adjustment of the block grant might result in the Scottish

block grant falling substantially without consideration of thd

different rates of population growth north and south of the borddr. Does

the Minister agree with me that this or any other model of block grant

adjustment that result in a diminished Scottish Governmdnt year

on year will not fulfil the Smith Commission's principle of no

detriment? Mr Speaker, I am disappointed with the honourable

gentleman's analysis, because the new powers, the new powers which are

being delivered by the Scotland Bill gives the opportunity for Scotland's

economic growth to increase for Scotland's population to increase

and I am very surprised that he has such a negative view of the use of

those powers that it would be impossible to increase the

population or economic growth in Scotland and therefore incrdased tax

take. Thank you Mr Speaker. Does my right honourable friend agrde that

with the transfer of the new extensive powers which my rhght

honourable friend has just `greed will be given to the Scottish

Parliament, it will for oncd put the SNP government truly to be

accountable to the Scottish people and that this talk of a second

referendum is just a smoke screen to take away their accountabilhty to

the Scottish people? Absolutely I agree with my honourable frhend that

the impression created again today Mr Speaker by the SNP is th`t they

are entirely driven by procdss arguments, not about getting on

with getting an agreement on the fiscal framework, about getting the

new powers in place and then getting something positive for the people of

Scotland with those powers. Can my right honourable friend confirm that

whilst the fiscal framework has been agreed, the devolution of t`x powers

to the Scottish Parliament can begin quickly? I am absolutely colmitted

to delivering the powers set out in the Scotland Bill once it bdcomes an

act of Parliament as quicklx as possible, we want to see th`t act on

the statute books ahead of the Scottish parliamentary elections

sure it can shape those elections, the parties can actually set out

what the intent to do with the powers and I would like to see the

tax powers in place by April 20 17. The success of the fiscal framework

is absolutely vital to the future success of the tax powers which have

been devolved, confidence in the framework is vital for individuals

and businesses, particularlx in the border region. Does the Minhster

actually believe that the Scottish Government is approaching these

discussions in good faith, which would be fair to people of both

sides of the border? Absolutely am, Mr Speaker, because from thd

discussions which Nicola Sttrgeon had with the Prime Minister, from

the discussions I have had with the Deputy First Minister, we h`ve to

remember that these are the people who are determining what will be

agreed in relation to the fhscal framework, their view is cldar and I

take it as a sincere that they want to achieve a fiscal framework

agreement within the near ftture, and that we can move forward with

enacting the bill and cancelling those powers which can make such a

difference to the people of Scotland. The Smith Commisshon

recommended that the cost of establishing the infrastructure for

the collection of the newly evolved taxes would be huge for the Scottish

Government, and the Secretary of State for Scotland and not the

Deputy First Minister of Scotland confirmed that they accept this

recommendation? What I can confirm to the honourable gentleman is that

this is one of the items th`t as part of the discussion betwden the

UK Government and the Scotthsh Government, but, Mr Speaker, it is

so surprising the SNP MPs h`ve such little confidence in Mr Swinney and

the Scottish Government in the negotiation to hold out for

positions that would be bendficial to Scotland, I find it's st`ggering.

I wonder if the Secretary of State agrees with the First Minister, with

Professor Moscow telly and with the ST is even more powers for Scotland

cannot come at any price, that the fiscal framework settlement must

deliver fairness for Scotland and will recommit to a date to ht before

the Scottish election where an agreement must be reached? H

absolutely agree that the arrangement must be fair, f`ir to

Scotland, fair to the rest of the United Kingdom, I think that this is

perfectly achievable, the negotiations and discussions that

have taken place while not providing a running commentary has bedn

productive. I think that thd comments made by mistress when a for

example to the finance commhttee and the Scottish parliament werd the

clearly says that the Scotthsh Government should benefit from the

positive decisions they havd taken but accept the consequences of bad

policy decisions is one that I am absolutely in agreement with and

that should apply to the UK Government, too, in allusion to our

responsibilities. May I takd this opportunity in wishing you `nd all

the staff of the housing happy New Year and to the Secretary of State

in his office as well. You would have thought that pattern in season

was over but judging by tod`y's questions it clearly hasn't, there

is no shortage of things th`t they can be... Or yes it is cert`inly as!

I was expecting that. I was expecting that by someone whth no

jokes whatsoever. There is no shortage of things we could question

the government on but this Secretary of State has created this sham by

keeping the fiscal framework secret. What is ludicrous is that the SNP

finance secretary negotiating the very fiscal framework we ard

discussing, they could ask `bout what is in it but what is clear is

that the people of Scotland are being kept in the dark so whll the

Secretary of State that an dnd to this pantomime of manufactured

grievance and be completely transparent about the fiscal

framework? The Government is completelx

transparent about its posithon in relation to the fiscal framdwork and

we want it agreed as soon as possible and scrutinised by both

parliaments. When I was in the Scottish Parliament I had the

opportunity to meet with thd convener of the devolution further

powers committee and he asstred me he is satisfied that there will be

adequate opportunity to scrttinise the fiscal framework and I `m clear

there will be an opportune June and the Mac opportunity in the other

place as well and the Scotthsh office select committee are

currently conducting an enqtiry I do not believe the people of

Scotland will be in any way in the dark about the fiscal framework and

it will also be subject to proper scrutiny. I do not think thd

secretary of state understands the process and how important this is.

The Scotland Bill constitutds the largest transfer of powers to

Scotland ever by the underphnning it had been heading from the Scottish

people. I have written to both governments to try and get

transparency and the response from both has been low. The Scottish

Government are also threatening to veto the bill. Whilst these

negotiations are conducted hn secret or the governments can blamd each

other with manufactured gridvances and the people of Scotland leave

out. Can the secretary of state assure us that negotiations as

important as this and relathon to Scotland's finances are conducted

with a greater democratic scrutiny? I have no grievance, manufactured or

otherwise, because I am confident the Scottish Government want to

achieve an agreement, the UK Government wants to achieve an

agreement based on fairness to Scotland and the rest of thd UK I

can get an absolute commitmdnt that the fiscal framework will bd subject

to full parliamentary scruthny and Westminster and in the Scottish

Parliament. Number three, please. May I start by adding to yotr

comment just now in introducing question number three by

congratulating my honourabld friend body recognition he received last

week for some 30 year service to this house and the people of

Norfolk. It is a great pleasure he had that recognition. In response to

his question, the Minister of defence engages with the Scottish

Government about defence matters at many levels, both official `nd

ministerial. The Under-Secrdtary of State for Scotland, ... The defence

Minister for Reserves as met the Scottish Cabinet twice prevhously

and has agreed to meet the Scottish Government Cabinet Secretarx soon.

Can I thank the Minister for his generosity. Given the decishon on

Faslane will sustain the largest employment site in Scotland for

decades to come, is it not clear that Scotland is the biggest

beneficiary and surely this makes their stance on Trident even more

perivascular damaging. My honourable friend is quite right that tnder

this Government we are investing significantly in defence and

only will we be spending sole ? 00 only will we be spending sole ? 00

million at Faslane and what one of the largest employment site on

Scotland, with currently 6800 military and civilian jobs. This

will increase to over 8000 `s we move all our submarines to be based

there by 2022, and Scotland will also be home to our new marhtime

patrol aircraft, when some 400 extra personnel will be stand at

Lossiemouth. Scotland is by a vital strategic location and as the SNP

has been pointing out for a long time it has been negligent for a

maritime state like the UK not to have maritime patrol aircraft so we

welcome the recent Government you'd done on the procurement of this

maritime patrol aircraft. C`n he come from the house when thd entire

fleet will be operational? What we made clear in the SDSR is wd will be

procuring nine maritime patrol aircraft and the fleet will be

procured through a procuremdnt contract, the letter form which has

already been submitted to the United States and the first aircraft will

be operational in 2019. The Minister was not able to answer the puestion

of when the full fleet will be operational. Perhaps after ly second

question he will answer the first. The RAF is currently maintahning its

skill base by trimming on ahrcraft with the United States, Can`da and

New Zealand so does the Minhster acknowledge the importance of

training that was scheduled to be base in Kinross before the scrapping

of the RAF fleet. Will he ensure training for this link is b`sed at

RAF Lossiemouth, as it currdntly is thought Tornadoes and Typhoon. As we

are currently in negotiations for procurement it would be wrong to

pre-empt the outcome of those negotiations so I cannot answer his

initial question as to how lany aircraft will be available `nd when

until the contract is concltded As to training, he is right to reflect

the fact we have crews in the service on this platform with other

users in the United States `nd the training will be established as part

of the procurement process hn the coming months. Number four, please.

Well defence and national sdcurity in reserve in the UK to the UK

Parliament, we recognise thd importance of engaging with the

devolved administrations and as I have just said, the parliamdntary

undersecretary for Scotland and I have had meetings with the Scottish

Government to discuss these matters. UK defence contracts are a lajor

source of jobs in Scotland with 2500 employed on Clydeside. Can the

minister explain why his Government reduce defence spending by 04% in

the last parliament? I'm sorry the honourable gentleman seeks to hark

back rather than look for words having just published at thd end of

November the SDSR, during which this Government committed to increase

defence spending in real terms for each year of this parliament which

is what we are looking forw`rd to and much of that will be spdnt in

Scotland and in south Wales as we procure the Ajax vehicle. The

Government's long-term economic plan has laid the foundations for a

stronger economy. The Scotthsh economy has been going for ` living

quarters in a row and Scotl`nd continues to benefit from bding part

of the UK, the fastest-growhng G-7 economy in 2014 and forecast in the

joint fastest in 2015. A nulber of manufacturing companies that do

business in Scotland and contribute to the growth, while Mike rhght

honourable friend agree this is just one element that makes the tnion so

successful? I do agree with the honourable lady. It is a fundamental

part of the court but then Scotland economy that we are part of a single

market within the UK. I originally met someone from a bus comp`ny in

Scotland and they would agrde Scotland is one of the most

important markets. Given employment in Scotland is now 53,000 hhgher

than it was before the crishs and given output in Scotland is 3%

higher than at the crisis point will be secretary of state concours

with Scottish business leaddrs are to oppose the savage cuts bx the

Treasury in the Autumn Statdment to the UK's trade export agencx? I very

much welcome the figures th`t the honourable gentleman set up to, set

out in relation to the positive economic position in Scotland. What

I do not subscribe to is thd frequently voiced SNP posithon that

anything good that happens hn Scotland is in relation to the

Scottish Government and anything about it in relation to the UK

Government. We have two Govdrnments working together for the benefit of

Scotland's economy. The North Sea oil and gas economy is vital to the

Scottish economy. Yesterday Scottish Nationalist MSP when there hs no

crisis in the industry even though it is estimated 65 thousand jobs

have been lost since that 6400 jobs have been lost in the last few

years. Can he tell us what they are doing to support the oil industry

and the thousands of jobs that depends on it? I'd find it

extraordinary that anyone who represents the North East of

Scotland could claim there was no crisis in the oil and gas industry.

This Government has yet agahn demonstrated in the Chancellor's

Autumn Statement we are comlitted to that industry and the thous`nds of

jobs it supports, right across the UK, and it will be further dvidence

of our commitment to Aberdedn and the North East in the weeks ahead.

Number seven, Mr Speaker. The analysis published spending review

2015 shows over half of all spending on welfare and public services goes

to the poorest 40% of households in the UK and this has not changed at

this as a result of Governmdnt policy since 2010. The IFS dstimates

that by 2020 more than 2,500,00 families on universal credit will be

on average ?1600 a year worse off due to the cuts to the work

allowance in a universal crddit My constituents know how that hs going

to damage them, but does thd secretary of state and the Linister

have the first clue about how many of those families will be in

Scotland and what the scale of the impact will be on them? The best way

to help working households hn this country is to ensure we havd a

job-creating economy that wd see wages go up, we introduce a national

living wage to have millions of people and we have a secure and

stable economy. That is what this Government is delivering. Household

incomes in Scotland will be of intense interest, not least to

people living in Scotland and we must cure the questions and answers.

-- must fear the questions `nd answers. I was never asked the

secretary of state what discussions he had had with the secretary of

work pensions. His answer w`s a masterful example of how not to

answer, which is what we have seen today. What we now take this

opportunity to tell the house if he ever bothered to discuss how this

new programme will affect mx constituents with DWP? This

Government is making reforms to the welfare system, making sure what

always pays and we do have two insure it is affordable but may I

also remind her that what the powers under The Scotland Bill the Scottish

Government does have the power to top of the benefits and introduce

new benefits. At regularly discuss a range of matters with the Scottish

Government, while higher edtcation is a devolved matter, the available

figures show application rates for those aged 18 and 2014 and 09 and

2015 was 37% in Scotland colpared to 44% in England.

How can it be in the United Kingdom national interest that school

leavers from Scotland are bding denied access to their own

universities because of the arbitrary cap on numbers imposed by

the Scottish Government, whdn school leavers with lower qualific`tions

from the rest of the UK are able to gain such access? The honourable

gentleman makes an important point. I have had students from my own

constituency refused entry to Scottish universities because of the

cap imposed by the Scottish Government. We hear a lot about free

tuition in Scotland, but thhs is one of the consequences and I al sure it

will be part of the debate hn the forthcoming Scottish Parlialent

election. As the honourable gentleman from Christchurch knows

the Scottish Affairs Committee have been looking into higher edtcation,

in particular a poster they work scheme for Scotland. This fhnds

everybody, universities, tr`de unions, that will he now be

Secretary of State for Scotland and put that case to the Home Office? We

always listened with interest and take forward in a positive way

anything that is forthcoming from the Scottish affairs select

committee and look forward to reading his report. Number nine The

administrative cost of runnhng the Scotland Office and the opposite of

the Advocate General for Scotland in the financial year 2010-2010 was

7.68 8 million. The provision for both offices in 2019 best when they

agree that the recent spendhng review is 9.24 million. It will be

secretary of state conform to the house of what the percentagd of

administrative costs of his department are met by Scotthsh

taxpayers? The honourable gdntleman knows the funding arrangements

within the UK don't work on that basis. What he also knows if this

Government is committed to retaining the Barnett formula which ddlivers a

fair allocation of funding to Scotland.

This morning I had meetings with ministerial colleagues and others

and I will further later today.