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Committee but you can continue watching online. Order! Order!

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Questions to the Secretary of State for Scotland. Can I begin by

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expressing the solidarity of the people of Scotland with the people

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of Belgium at this difficult time? Our thoughts, prayers and

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condolences go to all those who were killed and their families and

:00:26.:00:31.

friends and all those caught up in a yesterday's horrific events. Golf

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makes a huge contribution to Scotland's economy. Independent

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analysis in 2013 showed the game contributed ?1 billion in revenue

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and supported some 20,000 jobs. There are almost 600 golf courses

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across the country generating annual revenues of ?582 million. Thank you

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for the answer and I very much share the sentiments of solidarity that he

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expressed towards the people of Belgium at this difficult time.

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Given the success he talks about English to golfing in Scotland, what

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steps is he taking to secure further investment in this important

:01:13.:01:17.

industry for Scotland? There is one new opportunity to support golf and

:01:18.:01:23.

young people in golf which arose from last week's budget, and sugar

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tax element of it which would see investment in the wider UK in sport

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in schools and I hope the Scottish Government will follow through and

:01:38.:01:40.

use the funds to develop sport in schools, including golf which is a

:01:41.:01:44.

very popular sport as we have heard. We also have the opportunity to

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present Scotland's golfing merits to the wider world with the British

:01:48.:01:52.

open at Royal Troon and that will be a showcase for the world on

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Scotland's golfing opportunities. I thank the honourable gentleman for

:02:01.:02:06.

mentioning my local golf course is the MP for Royal Troon. We've look

:02:07.:02:09.

forward to welcoming people in July. ... We. I wondered if he could

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discuss with other colleagues on the front bench about having a regional

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strategy for having smaller airports and at Prestwick you flying over

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Royal Troon, and perhaps while the Chancellor is on a list include, to

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perhaps consider a VAT reduction for rural tourism which will help many

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communities. -- in mood. -- in a listening mood. I would be happy to

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meet with the honourable lady to discuss those issues further and I

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am interested in pursuing the proposed Ayrshire regional growth

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via which I know has golf at the heart of it in terms of promoting

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tourism in that part of Scotland. Can I add my contribution on that

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particular topic and say that it was with pleasure that I saw the

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secretary of state share a platform with the verse minister and I'm sure

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they discussed the topic just discussed they can you confirm that

:03:25.:03:26.

is an example of the two governments working together for the interests

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of the people of Scotland? You will be pleased, Mr Speaker, that the

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First Minister met and shared a platform in St Andrews, which of

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course is the world home of golf. Of course, on sport and any matter,

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Scotland does best when Scotland's two governments work together. This

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is the first opportunity in parliaments to put on record our

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total revulsion and condemnation of the terrorist atrocities in Brussels

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and solidarity with everybody affect it and we join the Secretary of

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State for Scotland in that. The promotion of the Ryder Cup in

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Scotland was a huge achievement for the Scottish Government and the then

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First Minister Alex Salmond. Today is the last sitting day of the

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Scottish Parliament so given that he is standing down from Holyrood, can

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I pay tribute to him in his remarkable tenure as an MS he and

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First Minister, and to all others of all parties who are retiring? --

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MSP. Does the Secretary of State believe there is much to build on

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following the Ryder Cup? I hope the right honourable gentleman won't

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object when I say the first part of his question was way off the

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fairway. The securing of the Ryder Cup to be held in Scotland was a

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very significant event and I can agree that the former First Minister

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of Scotland has made a remarkable contribution to Scottish politics.

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The detail on that will probably differ. I believe that what the

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former First Minister has done and the former MSPs have done, what we

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all need to do is promote Scotland together and by doing that, that is

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when we get the best results for Scotland. I will try and remain on

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the fairways. Tourism is one of the most important industries that

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Scotland has an golf and whiskey are key drivers for people visiting the

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country, so does the secretary of state welcome local initiatives to

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promote iconic locations, such as Speyside? What encouragement would

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he give to public and private sector partners in making the most of

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world-class potential as a tourism draw? I am aware of the specific

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initiatives to promote Speyside having recently visited the right

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honourable gentleman's very picturesque constituency and I wish

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them well. I believe that these opportunities only reach their full

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potential with significant public and private sector partners playing

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a full part and I look forward to hearing from the right honourable

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gentleman about progress from Speyside and other regions of

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Scotland, making the most of that potential. Government ministers and

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officials have meetings with a wide variety of organisations within the

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public and private sectors, including the oil and gas industry.

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The Chancellor announced last week reforms to support jobs and

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investment in the oil and gas sector which will help the industry

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response to the challenging conditions caused the steep fall in

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oil prices. The excellent budget practice for the oil and gas

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industry has been welcomed by the industry. Is this not another

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example that shows that when Scotland's two governments work

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together they can get the best for Scotland? And independent Scotland

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could never achieve this. My honourable friend makes an extremely

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good point and the fact is that the United Kingdom is able to absorb the

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shock of a volatile oil price and take steps to ensure that we have an

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oil and gas sector which is as strong as it can be given below oil

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prices. Will Minister and from bench colleagues commits to taking action

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to ensure that companies within the oil and gas sector have appropriate

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access to finance at this time? We do all we can as a governments to

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support businesses in length and breadth of the United Kingdom in all

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sectors. The point I would make is that we are able to take action in

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this area and support the oil and gas because we are a United Kingdom,

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and had we been in the position where Scotland became independent,

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it would raise a very, very substantial loss of revenue and we

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would have great difficulties in absorbing that. I meet with my right

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honourable friend, the Secretary of State for Scotland, and counterpart

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ministers on regular occasions to discuss devolution. The budget saw

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one of the most measures, cutting PIP for 40,000 disabled people in

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Scotland. I wondered when the Minister 's first realised that this

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was the wrong thing to do, around the Cabinet table, drawing the

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budget statement, or on Sunday when the Prime Minister was forced to

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backtrack on it? The government's position is clear when it comes to

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PIP and disability reforms as was announced by the Secretary of State

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for Work and Pensions, and the Chancellor. Could you inform the

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House when he realised the cuts were running, or was he himself planning

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a resignation over the weekend? As I have already said, the Dublin

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position has been abundantly clear, and if he missed the right

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honourable friend's Secretary of State for Work and Pensions's

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statement on Monday, I would be happy to share it with him again.

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Can I start by echoing the comments of the secretary of state and leader

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of the SNP and pass on my heartfelt condolences to all those involved in

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the events in Brussels. We will defeat terrorism but as the

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secretary of state is said, that will take solidarity and resolve. We

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pass the budget last night which was unprecedented and contain a ?4.4

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billion black hole after the Chancellor was forced to reverse his

:10:20.:10:26.

decision on cutting PIP payments. Their long-term economic plan

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turning into a long-term economic scam. These savage cuts, following

:10:29.:10:35.

the reduction in VAT, will have an effect on 60,000 Scots, and it would

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have gone through without the resignation from the Member for

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Woodford Green. Can the Minister guarantee that when the Chancellor

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returns that none of these cuts will fall on the disabled and most

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runnable? Well, thank you Mr Speaker and I

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thank the honourable gentleman for his comments. I mean, first of all,

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I welcome his comments with regards to the tribute to my honourable

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friend the member for Chingford and Woodford Green. We have been very

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clear as a Government that we are not proceeding with our changes and

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we will not be seeking alternative off set in savings as well.

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Well, it is quite clear Mr Speaker from that answer and from the

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previous answer that the Government has absolutely no idea what to do

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now. They are creating untold anxiety for those people in Scotland

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affected. Let me remind the House what the former Secretary of State

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said. He said that the cuts in this Budget risked dividing society. That

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put pounds ahead of people and were distinctly political rather than in

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the national economic interests. Does she agree with her former

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Cabinet colleague that these cuts are not defenceable and does she

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want to take this opportunity to apologise on behalf of the Scottish

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Conservative Party to the tens of thousands of vulnerable and disabled

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Scots affected by this shambles? Thank you, Mr Speaker. The point

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that I made already. The Government's position is

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fundamentally clear. There will be no further changes to disability

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payments. He may have realised last night that the Budget was passed

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through this House and that was right and proper and he should

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recognise that we as a Government are delivering on the Smith

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commission and devolving powers to the Scottish Government and we will

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look forward to working with the Scottish Government when it comes to

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Welfare Reform and the delivery of employment and support programmes

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going forward for the betterment for the Scottish people.

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Number four, Mr Speaker. I regularly meet a wide range of business

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organisations to discuss economic issues in Scotland as I have already

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alluded to last week, I shared a platform with the First Minister of

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Scotland at the annual forum of the Scottish council for development in

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industry, where we discussed the important issue of productivity.

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Given that businesses in Redditch welcomed the devolution deal for

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Birmingham, what representations have business groups in Scotland

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made to my Right Honourable friend about city deals there?

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Mr Speaker, I have been particularly delighted at welcome from business

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groups in Scotland for the announcement yesterday of the

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Inverness and Highland City Dale which in combination the Scottish

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Government, UK Government and Highland Council, will deliver a

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package of ?315 million and I also particularly welcome the Early Day

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Motion from the member from Inverness and his colleagues and I

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pay trib tut to his part in bringing that deal about.

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The Secretary of State will be aware that around 400,000 workers in

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Scotland earn less than the Living Wage. The Government claims to be on

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the side of working people so why have his Scottish Tory colleagues

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repeatedly voted alongside the SNP Government to thwart Scottish Labour

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proposals to extend the Living Wage? Well, I will resist the temptation

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Mr Speaker to give the honourable lady a lecture on the Scottish

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Labour Party's woes and the fact that they have not been a credible

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Opposition to the SNP in Scotland. This Government is very, very clear

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on its proposals to increase the wages of the poorest in society by

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the introduction of the national Living Wage.

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Local Government quite clearly has a role to play in economic

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development. Would the minister agree that it is important that the

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Scottish Parliament also devolves power to Local Government and they

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could look to England for a lead such as elected mayors?

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Mr Speaker, I very much take on board what my honourable friend had

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to say, but when I spoke with the First Minister of Scotland at the SC

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dismt Forum last week, I was particularly encouraged about what

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she had to say about her support for city deals and I hope that the city

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deals that we see emerging in Scotland will not just include the

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financial packages, but they will go on to include greater devolution

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within Scotland. People in my constituency are

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extremely concerned by the perceived impact on the local economy and

:15:32.:15:37.

local jobs of the proposed closure of HMRC sites, what impact

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assessment is being made of these closures on our local economy and

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jobs? Mr Speaker, initial proposals have

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been set out in relation to the future shape of HMRC and of course

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we hear in this House about wishes to make HMRC more efficient and more

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effective, but no steps will be taken in the honourable lady's

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constituency or elsewhere without full consultation with all those

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involved. Number six, Mr Speaker. As the First

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Minister and I both confirmed when we shared a platform in St Andrew's

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in his own constituency last week, the official position of both the UK

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and Scottish Governments is that the UK is better off in a reformed EU.

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Thank you, Mr Speaker. Firstly, can I associate myself with the remarks

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on Brussels having spent many happy years in that wonderful city. The

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Secretary of State will be aware of the benefits the EU membership has

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brought us such as paternal rights, quality entitlement, does he agree

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we should be focussing on these benefits and not a re-run of project

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fear? I don't know if the honourable gentleman saw the details of my

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speech yesterday which set out the benefits to Scotland of remaining in

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the EU and in which I set out a positive case and I look forward to

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sharing platforms over the coming weeks with him and his colleagues to

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make that case. Thank you, Mr Speaker. Given that we

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have a ?62 billion a year trade deficit with the European Union,

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does the Secretary of State think that if we were to leave the EU, the

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Prime Minister has the ability to negotiate a free trade deal with the

:17:31.:17:34.

European Union or does he think that the Prime Minister hasn't got the

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ability to negotiate a free trade deal with the European Union?

:17:38.:17:43.

Mr Speaker, my position is clear. I believe that Scotland and the UK are

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better off in the EU, with the reformed arrangement that the Prime

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Minister has already negotiated. Thank you. Will my Right Honourable

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friend recognise that a survey confirmed that the Scottish

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Government is one of the most trusted governments in the hole of

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Europe. Will he look forward to the re-election of Nicola Sturgeon and

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her team? Mr Speaker, what I want to ensure is that Nicola Sturgeon and

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her team are properly held to account in the Scottish Parliament

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and that's why I'm encouraging people to vote for Ruth Davidson and

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the Scottish Conservatives. Question number six, Mr Speaker.

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Thank you. I have regular discussions with the Secretary of

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State for Energy and climate change and ministers of the Scottish

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Government on a number of important energy issues affecting Scotland

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most recently last night. The Government's own advisors on

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energy and climate change warned that the cost of meeting our climate

:19:03.:19:12.

change targets, could, double without carbon capture and storage.

:19:13.:19:15.

Seeing as the Government are having a good run on U-turns when it comes

:19:16.:19:22.

to saving George Osborne the Chancellor, perhaps you would like

:19:23.:19:27.

to make a U-turn when it comes to saving the planet, something I think

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people think is far more worthwhile? Mr Speaker, we are looking carefully

:19:33.:19:38.

at all options in developing our approach to CCS. In parallel the

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Government continues to engage with the CCS industry including shale who

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are leading the proposed Peterhead project.

:19:47.:19:54.

At the time of the announcement for the ?1 billion of funding for the

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carbon capture and storage scheme at Peterhead, the Energy Secretary was

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forced to deny that it was a bribe prior to the independence

:20:05.:20:08.

referendum. Now that the withdrawal of this supposed ring-fenced capital

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investment exposes that it was just that, will the Secretary of State

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take this opportunity today to apologise to the people of Scotland?

:20:16.:20:22.

Mr Speaker, if anybody should apologise to the people of Scotland,

:20:23.:20:27.

it's the honourable lady and her friends for suggesting that oil

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tomorrow would have a price of $103 a barrel. What is clear in relation

:20:36.:20:41.

to CCS is that the costs are high and must come down. We haven't ruled

:20:42.:20:45.

KCS out and we're committed to working with the industry to bring

:20:46.:20:49.

forward innovative ideas for reducing the costs of this

:20:50.:20:57.

potentially important industry. Mr Speaker, I amming reluctant to

:20:58.:21:01.

refer to a Budget because we can't be absolutely sure what is in and

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what is out! For example, the Chancellor's

:21:07.:21:08.

support for the oil and gas industry is welcome, but it doesn't take us

:21:09.:21:13.

very far forward. And unfortunately it appears that the Government here

:21:14.:21:18.

in London, it is taking its cue from the Government in Holyrood. There

:21:19.:21:23.

the SNP Government recently axed ?10 million of tax breaks for renewable

:21:24.:21:27.

firms and they see themselves as a green administration.

:21:28.:21:33.

Aren't we seeing two governments who are confused, pursuing contradictory

:21:34.:21:35.

policies and not knowing if they are coming or going?

:21:36.:21:43.

Mr Speaker, I can point out one very distinct difference between this

:21:44.:21:48.

Government and any Labour Scottish Government or indeed SNP Scottish

:21:49.:21:51.

Government and that is that we are not putting up the tax for ordinary

:21:52.:21:57.

people as both those parties propose. Mr Speaker, we have made it

:21:58.:22:02.

very clear that the door is not closed on CCS, but the costs must

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come down. Number seven, Mr Speaker.

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The UK and Scottish governments met ten times under joint exchequer

:22:18.:22:21.

committee since the election last year. These resulted in a new fiscal

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framework for the Scottish Government, agreement on fiscal

:22:25.:22:27.

framework and enables us to deliver on the vow we made to the Scottish

:22:28.:22:32.

people and delivers one of the most powerful and accountable devolved

:22:33.:22:35.

parliaments in the world with the economic and national security that

:22:36.:22:38.

comes from being part of the United Kingdom.

:22:39.:22:44.

Does the minister agree that it would be bad news for Scotland if it

:22:45.:22:47.

became the highest tax part of the United Kingdom? And does he agree

:22:48.:22:53.

with Ruth Davidson that Scottish taxpayers shouldn't have to pay

:22:54.:22:58.

anymore in tax than fellow Britons in England, Wales and Northern

:22:59.:23:01.

Ireland? Well, the Scottish people have got

:23:02.:23:05.

essentially three choices in their elections. Two of those choices

:23:06.:23:09.

where they will be voting Labour or voting SNP would involve paying more

:23:10.:23:20.

in income tax. Does the secretary agree with me

:23:21.:23:24.

that the Chancellor's last minute intervention to agree the framework,

:23:25.:23:29.

would the Secretary of State of Scotland aware that the Chancellor's

:23:30.:23:33.

intentions endanger of framework at the very last moment?

:23:34.:23:39.

The answer is, no. An agreement has been reached. We're pleased we've

:23:40.:23:44.

got that agreement and now it is for the Scottish Government to be held

:23:45.:23:50.

accountable by the Scottish people. Question number eight, Mr Speaker.

:23:51.:23:57.

The Chancellor has delivered a Budget that delivers for Scotland.

:23:58.:24:00.

This will be the last Budget where a UK chancellor sets out income tax

:24:01.:24:05.

rates and thresholds for Scottish earners, the changes to the income

:24:06.:24:09.

tax personal allowance will benefit 2.6 million taxpayers in Scotland.

:24:10.:24:13.

The Budget delivers on our plans to build a stroker economy as part of

:24:14.:24:17.

the UK, but the next generation first.

:24:18.:24:22.

Thank you, Mr Speaker. I congratulate the minister on finding

:24:23.:24:25.

the Chancellor to have those discussions!

:24:26.:24:30.

Earlier this week, we thought he gone walk-about. The Budget had ?1

:24:31.:24:37.

billion of cuts to the Scottish Budget and ?650 million of cuts to

:24:38.:24:43.

the English NHS. Does he think he might persuade the Chancellor to

:24:44.:24:47.

reverse Scotland's cuts and put in a good word for the English NHS as

:24:48.:24:51.

well? Can I just remind the House that

:24:52.:24:58.

there were three asks coming from the SNP, freezing whisky duty and

:24:59.:25:01.

freezing fuel duty and helping the oil and gas industry. That's exactly

:25:02.:25:11.

what the Chancellor delivered. Thank you, Mr Speaker. Can I ask the

:25:12.:25:17.

Secretary of State for Scotland did they discuss with the Chancellor the

:25:18.:25:22.

merits of a corporation tax cut, a ?6 billion capital gains and

:25:23.:25:27.

inheritance tax versus the ?4 billion cut to the disabled and how

:25:28.:25:30.

that would affect the people of Scotland or did he sit there and...

:25:31.:25:37.

Can I remind the honourable gentleman that there are 73,000

:25:38.:25:41.

businesses in Scotland that will benefit from a cut in corporation

:25:42.:25:45.

tax. As he is he saying he opposes that?

:25:46.:25:50.

THE SPEAKER: Order. Questions to the Prime Minister.

:25:51.:25:52.

Sir Peter Bottomley.

:25:53.:25:55.

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