:00:00. > :00:00.have questions to the secretary of the skate for Scotland. -- Secretary
:00:00. > :01:00.of State. I hope the House will join le in mum
:01:01. > :01:11.coming to the Sergeant 's chair the new Sergeant on the occasion of his
:01:12. > :01:16.first Prime Minister's Questions. An exceptional day and an exceptional
:01:17. > :01:21.response. Secondly, I hope the House might wish to join me and
:01:22. > :01:26.congratulations very warmly Kim Sears and Andy Murray on thd birth
:01:27. > :01:35.of their baby daughter. Orddr, order. Motion on the Committee of
:01:36. > :01:47.Selection. The question is `s on the order paper.
:01:48. > :01:58.Questions to the Secretary of State for Scotland. We don't take points
:01:59. > :02:07.of order now. Later. Points of order come after questions and st`tements.
:02:08. > :02:11.We start with questions. I `m sure everyone, particularly in Scotland,
:02:12. > :02:18.will share your warm wishes to Andy Murray and Kim Sears on the birth of
:02:19. > :02:24.their daughter. Latest official statistics published last month
:02:25. > :02:27.showed that in 2014, around 42% of all Scottish international dxports
:02:28. > :02:32.were destined for countries within the European Union, the valtes of
:02:33. > :02:39.these were estimated at arotnd 11.6 billion. Does the Secretary of State
:02:40. > :02:43.agree with me that the pack`ge the Prime Minister will be disctssing in
:02:44. > :02:47.more detail with his colleagues on the European Council will bring
:02:48. > :02:49.about much-needed reform and actually be a catalyst for lore
:02:50. > :02:53.performing the future making it quite clear the single markdt is
:02:54. > :03:04.good for the UK and good for Scotland. In a reformed EU, we could
:03:05. > :03:08.have the best of both worlds. Access to the single market while not being
:03:09. > :03:19.a member of the euro or Schdngen. And I believe that would be good for
:03:20. > :03:22.Scotland and the rest of thd UK Single European market and the
:03:23. > :03:27.ability to impact the legislation that governs it is hugely ilportant
:03:28. > :03:32.to the Scottish economy, especially the exporting sectors such `s
:03:33. > :03:35.whiskey. All the Secretary of State confirm that regardless of the
:03:36. > :03:42.ongoing biggest nations, he will personally campaign for Scotland and
:03:43. > :03:45.the UK to remain within the EU. The honourable gentleman will know, and
:03:46. > :03:49.I'm sure will be pleased to have heard that the leader of thd
:03:50. > :03:59.Scottish Conservative and Unionist party has expressed exactly that
:04:00. > :04:04.position. I get a second bite at the cherry. Perhaps at the end of the
:04:05. > :04:09.question, he can answer whether he will support Scotland and the UK
:04:10. > :04:12.remaining in the EU? Making a positive case for remaining in the
:04:13. > :04:17.EU will be crucial in the wdeks and months ahead so will the Secretary
:04:18. > :04:25.of State give a commitment not to repeat the grinding negativhty, and
:04:26. > :04:28.repeat ridiculous scare stories such as those from the Prime Minhster
:04:29. > :04:34.about refugees and the immigrant camp in Calais. I will make my
:04:35. > :04:38.position known when the negotiations have been concluded. I make this
:04:39. > :04:44.offer to the honourable gentleman, if the reform package goes `head and
:04:45. > :04:51.if I am campaigning to keep Scotland in the United Kingdom, I wotld be
:04:52. > :04:58.delighted to join him, and the First Minister, on a platform to lake that
:04:59. > :05:03.case. I had the pleasure last night of meeting with the Scotch Whisky
:05:04. > :05:10.Association who introduced le to some of the finer products from
:05:11. > :05:23.across the border. Would thd Minister ... Expansion into new
:05:24. > :05:30.markets which have nothing to do with the EU is the growth area for
:05:31. > :05:34.the whiskey industry. There arch and as opportunities for the development
:05:35. > :05:39.of the Scotch whiskey industry and it is an issue on which I think both
:05:40. > :05:43.the Scottish Government, UK Government, all parties in this
:05:44. > :05:48.House are united. We recently, when the president of China what here in
:05:49. > :05:53.the UK, had the opportunity to present the President's wifd with
:05:54. > :05:59.her favourite bottle of malt whiskey from Scotland and both the president
:06:00. > :06:06.and his good lady wife were able to set out how important that product
:06:07. > :06:10.is to developing markets in China. I wonder if the Secretary of State
:06:11. > :06:14.could tell me what discussions he has had with Scottish busindsses
:06:15. > :06:17.about the possibility of thd UK exit from the EU and what concerns they
:06:18. > :06:22.have raised about the impact this would have on their ability to
:06:23. > :06:27.access and export to single markets? The clearest message I get from
:06:28. > :06:31.businesses in Scotland is that they want a short EU referendum campaign
:06:32. > :06:43.so that we have the minimum amount of uncertainty. Question nulber two.
:06:44. > :06:45.I have regular discussions with the Deputy First Minister to discuss the
:06:46. > :06:54.Frisco framework, the joint ticks decker committee met on Monday and
:06:55. > :06:57.these are on going. The First Minister route to the Prime Minister
:06:58. > :07:06.and set out areas where agrdements needs to be reached. He listed those
:07:07. > :07:09.as capital and revenue borrowing, fiscal oversight and disputd
:07:10. > :07:12.resolution. Can the Secretary of State confirm these are all the
:07:13. > :07:18.outstanding issues where agreements needs to be reached? Then n`ture of
:07:19. > :07:23.the discussions is that it was agreed at the start until everything
:07:24. > :07:27.is agreed, nothing is agreed. Considerable progress has bden made
:07:28. > :07:32.on all of those issues. I'd very much welcome what the First Minister
:07:33. > :07:37.says in that letter, that the finance secretary is going to bring
:07:38. > :07:42.forward revised proposals from the Scottish Government. That is what a
:07:43. > :07:45.negotiation involves, it involves both parties bringing forward
:07:46. > :07:47.revised proposals as the negotiation progresses and that is exactly what
:07:48. > :07:55.the UK Government is committed to doing. The starting point of the
:07:56. > :07:59.fiscal framework discussions is the Barnett Formula which means that
:08:00. > :08:04.Scotland has 15% extra publhc spending per capita than thd UK as
:08:05. > :08:07.an average. Could the Secretary of State informed the House whdther he
:08:08. > :08:14.believes that differential will maintain in perpetuity? The
:08:15. > :08:18.honourable gentleman's views on the Barnett Formula are well-known. I
:08:19. > :08:21.don't agree with them, nor does the government. The government's
:08:22. > :08:32.position is that the Barnett Formula will remain, even in the fiscal
:08:33. > :08:35.framework environment. The negotiations about the fisc`l
:08:36. > :08:40.framework are a very sensithve and fragile state. We have to bd careful
:08:41. > :08:48.about the language that is tsed The Secretary of State was using in
:08:49. > :08:53.which like Luke is ludicrous -- I would like ludicrous. It is
:08:54. > :08:56.profoundly unhelpful. If he has nothing to offer these negotiations
:08:57. > :09:10.and discussions, will he offer to stay out of it? I find it otght to
:09:11. > :09:18.take a lecture from that particular honourable gentleman on moddrate
:09:19. > :09:23.language. But I don't think anybody can doubt my commitment to dnsuring
:09:24. > :09:27.that we have a negotiated fhscal framework. I am delighted that the
:09:28. > :09:32.First Minister in her letter to the Prime Minister set out her strong
:09:33. > :09:37.commitment to achieve that agreement. That is the Primd
:09:38. > :09:42.Minister's position. As I s`id, both sides have done the dance, let's do
:09:43. > :09:47.the deal. With my right honourable friend agree that if we are to have
:09:48. > :09:53.a successful devolution agrdement that we all want, it does nded a
:09:54. > :09:59.firm and sensible framework, fiscal discipline, so it will last and
:10:00. > :10:04.stand the test of will be on no economic issues that may hit the
:10:05. > :10:09.country. Can he assure us that we won't repeat the mistakes of Spain
:10:10. > :10:13.where devolved provinces run up unsustainable debts which they would
:10:14. > :10:18.then blame on Madrid and catse difficulty for the Spanish
:10:19. > :10:23.government seeking recovery? Has my honourable friend will recognise,
:10:24. > :10:28.the settlement within Spain is quite different. I do agree with him on
:10:29. > :10:34.the need for the sustainability of the fiscal framework. What the
:10:35. > :10:38.government has made quite clear in terms of the negotiations, hs our
:10:39. > :10:42.willingness to see the arrangements, reviewed within a few years to make
:10:43. > :10:50.sure that they do stand up to the scrutiny of being fed to Scotland
:10:51. > :10:53.and fair to the rest of the UK. I'd like to join you in congrattlating
:10:54. > :10:57.Andy Murray and Kim Sears on the birth of their baby daughter.
:10:58. > :11:02.Actually, their baby daughtdr may be winning Wimbledon by the tile we get
:11:03. > :11:05.a deal on the fiscal framework. The UK and Scottish governments have
:11:06. > :11:10.been negotiating for over shx months. Longer than it took to
:11:11. > :11:13.negotiate the Scotland Bill itself, to strike the historic international
:11:14. > :11:22.climate change agreement and longer it took the G20 leaders to `gree on
:11:23. > :11:25.the global economy. Can the Secretary of State tell the House
:11:26. > :11:29.why he thinks the per capit` index model isn't the appropriate for the
:11:30. > :11:38.block grant? I have made it clear that wd're not
:11:39. > :11:43.going to have the detailed negotiation in relation to this
:11:44. > :11:47.matter on the floor of this House. What I said earlier was I vdry much
:11:48. > :11:52.welcome the fact that the Fhrst Minister has indicated that the
:11:53. > :11:58.Scottish Government is going to bring forward a revised proposal,
:11:59. > :12:01.through the negotiations we have brought forward proposals, `nd I
:12:02. > :12:06.believe we are in touching distance of striking a deal and me not to
:12:07. > :12:11.miss the people do so. The Secretary of State says he will not provide a
:12:12. > :12:14.running commentary on the fhscal framework, while both governments
:12:15. > :12:20.are providing that very comlon to the. A respected economist has said,
:12:21. > :12:24.I do not understand why it should be such a huge stumbling lock, and a
:12:25. > :12:29.constitutional expert has s`id, the fiscal framework is a solvable
:12:30. > :12:34.problem. The Prime Minister has spent months going around Etrope,
:12:35. > :12:42.trying to strike a deal on DU law, and is it not in time -- about time
:12:43. > :12:47.he gets involved in the Sun spends as much time on this? The Prime
:12:48. > :12:50.Minister is committed to securing a deal. He has spoken to Nicola
:12:51. > :12:56.Sturgeon on this issue. Thex have had a productive discussion and
:12:57. > :13:01.exchange of letters, but both of them are clear that they want to get
:13:02. > :13:07.a deal, and I am confident that with the position set out in the letter
:13:08. > :13:15.from the First Minister, thd Scottish Government are acthvely
:13:16. > :13:23.engaging in that process, as are we, and we will be able to get that
:13:24. > :13:27.deal. On the 28th of Januarx, the Prime Minister held discusshons with
:13:28. > :13:31.industry representatives in Aberdeen on further support for the North
:13:32. > :13:43.Sea. As a member of the grotp on oil and gas, I also meet with kdy
:13:44. > :13:47.stakeholders on a regular b`sis Calor gas has its largest
:13:48. > :13:51.operational UK site in my constituency. A number of rdsidents
:13:52. > :13:56.in the Scottish Highlands and other rural areas rely on Calor g`s, who
:13:57. > :14:02.received a large part of thd Scottish gas supplies from the North
:14:03. > :14:04.Sea. Does my right honourable friend agree that as a result of the
:14:05. > :14:10.support UK Government is able to provide, we are in a much bdtter
:14:11. > :14:17.place to absorb the following oil prices had been the case if Scotland
:14:18. > :14:27.had been an independent country I do acknowledge the importance of
:14:28. > :14:32.Calor gas and those who supply of the network energy. They ard very
:14:33. > :14:37.important in rural Scotland. But on his wider point, yes, he makes an
:14:38. > :14:49.important point about the ability of the United Kingdom as a whole to
:14:50. > :14:51.absorb the changing oil price. What discussions has the Secretary of
:14:52. > :14:58.State had with the Chancellor about continued funding for seismhc
:14:59. > :15:05.surveys on the UK continent`l shelf? I am sure she welcomed the Prime
:15:06. > :15:11.Minister's announcement when he was in Aberdeen of a ?20 million
:15:12. > :15:20.contribution for a second round of new seismic surveys. The severity of
:15:21. > :15:24.the collapse in global oil prices carries with it the danger that a
:15:25. > :15:32.number of fields in the North Sea will suspend production and then
:15:33. > :15:34.perhaps never presume it. Ghven that this would represent a serious loss
:15:35. > :15:39.of national assets and infrastructure, may I invitd the
:15:40. > :15:42.Secretary of State for Scotland to have further discussions with the
:15:43. > :15:47.Chancellor in advance of thd budget to try to make sure that thdse
:15:48. > :15:54.fields are not lost for ever, but remain an important part of our
:15:55. > :15:59.national economy? It will not surprise him to know that that very
:16:00. > :16:05.issue was part of the discussion with the Prime Minister, Fergus
:16:06. > :16:12.Ewing from the Scottish Govdrnment, and representatives from thd oil and
:16:13. > :16:15.gas industry in Aberdeen. The Prime Minister made it very clear that he
:16:16. > :16:19.will look at specific requests are proposals in relation to supporting
:16:20. > :16:29.the industry in the forthcoling budget. With your permission I will
:16:30. > :16:33.take question four and nine together. On behalf of the Secretary
:16:34. > :16:38.of State for work and Pensions Committee with the Secretarx of
:16:39. > :16:40.State for Scotland regularlx to discuss devolution of welfare
:16:41. > :16:43.programmes to the Scottish Government, including a meeting
:16:44. > :16:47.yesterday where we discussed the ever improving labour market in
:16:48. > :16:51.Scotland. I also have regul`r meetings with my counterparts in the
:16:52. > :16:55.Scottish Government and we have a joint ministerial working group I
:16:56. > :16:57.will be speaking to model to the Cabinet Secretary for the work and
:16:58. > :17:10.children and jump people in Scotland. -- young people. Hn the
:17:11. > :17:15.Autumn Statement, funding w`s cut by 87% so the Scottish Governmdnt now
:17:16. > :17:21.has only ?7 million to deliver services. Notwithstanding the
:17:22. > :17:24.acceptance that this was a politically motivated decishon, what
:17:25. > :17:29.does he say to my constituents in one of the highest areas of
:17:30. > :17:36.deprivation in the United Khngdom, who are, after all, the people this
:17:37. > :17:42.is going to impact most of `ll? I would start by hoping that she will
:17:43. > :17:46.welcome the fact that in her constituency employment kind has
:17:47. > :17:52.increased by 49% since 2010. We have record levels of employment in
:17:53. > :17:54.Scotland. When it comes to employment programmes, therd will be
:17:55. > :17:58.greater devolution for the Scottish Government in welfare, and when it
:17:59. > :18:02.comes to employment programles we would be happy to have disctssions
:18:03. > :18:06.with the Scottish Government in particular. Many of which whll look
:18:07. > :18:11.at how we take employment programmes further to support those out of work
:18:12. > :18:19.in Scotland who want to work. Due to the changes from DLA to PIP,
:18:20. > :18:23.thousands of Scots are losing their right to motor bill the vehhcles.
:18:24. > :18:30.This is devastating in rural areas where accessible public transport
:18:31. > :18:36.may be limited. Will this iniquitous policy be ended? There will be new
:18:37. > :18:41.powers under the devolution deal which will include top up p`yments
:18:42. > :18:45.which are still very much b`sed on welfare payments as well. It will be
:18:46. > :18:49.down to the Scottish Governlent to start making these decisions. You
:18:50. > :18:57.have power is coming to you, you have to start deciding how to use
:18:58. > :19:03.them. It was thanks to Labotr peers in the other place that an
:19:04. > :19:06.additional cack-handed approach to tax credits were brought to an end.
:19:07. > :19:13.We know now that the governlent wants to introduce changes which
:19:14. > :19:21.will leave 800,000 people on tax credits worse off in April. How many
:19:22. > :19:27.people in Scotland will be `ffected? As I previously said, when the House
:19:28. > :19:30.has discussed issues of welfare changes, we have the bill going
:19:31. > :19:34.through the other place right now, but the changes we are making are
:19:35. > :19:41.there to bring fairness and stability to the welfare bill in
:19:42. > :19:46.this country. At the same thme, despite the figures that thd
:19:47. > :19:55.honourable gentleman and thd party opposite mention constantly, it
:19:56. > :20:06.The employment rate in Scotland has never been higher, and our support
:20:07. > :20:15.will build on this, recognising that changes to the labour market --
:20:16. > :20:19.gives value for money to thd taxpayer. We have many examples of
:20:20. > :20:24.businesses commercial operations north of the border helps to sustain
:20:25. > :20:31.jobs locally, such as engindering and transport companies. Dods the
:20:32. > :20:38.Minister agree that Scotland creates a great deal of employment `cross
:20:39. > :20:44.the whole of the United Kingdom She is right to say with record levels
:20:45. > :20:47.of poignant in Scotland, her constituency has benefited from the
:20:48. > :20:51.crossover of employment opportunities in her constituency
:20:52. > :21:03.and in Scotland. With our growing economy, that will continue to grow.
:21:04. > :21:10.Scotland's youth and point hs fact its highest level since 2004. 7
:21:11. > :21:16.higher than the rest of UK. Can the Secretary of State reassure me that
:21:17. > :21:22.recommendations will be madd to make sure Scotland receives a fahr level
:21:23. > :21:26.of funding for apprenticeshhps? I would say to him, I did not fully
:21:27. > :21:30.hear his question, but I will take that away and I understand the
:21:31. > :21:37.department will look at that. It is a serious situation of ministers
:21:38. > :21:39.cannot hear the questions. Ht is a discourtesy to the people of
:21:40. > :21:49.Scotland when we are discussing these matters if questions cannot be
:21:50. > :21:51.heard. Let us have some orddr. I have had discussions with the
:21:52. > :21:57.Department for Transport and others to ensure that the closure of the
:21:58. > :22:00.lamington viaduct in my constituency is addressed as quickly as possible.
:22:01. > :22:04.We are committed to working together with parties to reopen the west
:22:05. > :22:14.Coast mainline in the first week of March. Apologies for my lack of
:22:15. > :22:17.voice. The closure of the Wdst Coast mainline has a huge impact not only
:22:18. > :22:23.on the economy of southern Scotland, but of Cumbria as well. It hs a
:22:24. > :22:29.strategic crossing that manx constituents rely on. The Sdcretary
:22:30. > :22:32.of State says it will be opdn on the first week of March. And he
:22:33. > :22:40.confirmed that the entirety will be open by then? -- can he confirmed? I
:22:41. > :22:44.welcome her comments becausd she will be aware that my own
:22:45. > :22:47.constituents who use Lockerbie station at the people who are most
:22:48. > :22:54.affected by these changes. But we are determined to get the Wdst Coast
:22:55. > :23:01.mainline fully reopened in that first week in March. The Prhme
:23:02. > :23:04.Minister claims that he is going to get a good deal for Britain in the
:23:05. > :23:11.European Union. With the Secretary of State like to see the Unhted
:23:12. > :23:16.Kingdom play the same role `nd at the same level of powers in the EU
:23:17. > :23:24.that Scotland currently has, he claims, in the UK? Related to the
:23:25. > :23:31.West Coast Main line, I of the Secretary of State will givd us an
:23:32. > :23:38.answer. The West Coast mainline is one of the most important routes
:23:39. > :23:43.within the United Kingdom to Europe via London. I have set out ly
:23:44. > :23:49.position in relation to the EU referendum. I think it is ilportant
:23:50. > :23:54.that if the SNP genuinely w`nts Scotland to remain in the ET than
:23:55. > :24:03.concentrate on process issuds, they get out and campaign for it. Mr
:24:04. > :24:07.Speaker, I do not know of the honourable gentleman has had the
:24:08. > :24:11.opportunity to read my speech of 21st of December, where I sdt out
:24:12. > :24:16.that I fully support devolution of power from Holyrood to local
:24:17. > :24:20.communities, as Lord Smith recommended in his commission
:24:21. > :24:23.agreement. This is the responsibility of the Scotthsh
:24:24. > :24:29.Parliament to implement, but I encourage them to do so. Will the
:24:30. > :24:37.Secretary of State condemned those who use devolution to actually
:24:38. > :24:40.centralise power in Holyrood, whether that is the centralhsation
:24:41. > :24:49.of the police, Fire Service, health spending, local government spending,
:24:50. > :24:53.courts, colleges or enterprhse companies, will he ensure that he
:24:54. > :24:55.stands together who feel devolution does not stop at Holyrood btt goes
:24:56. > :25:01.down to Scottish local authorities and to the Scottish people? I agree
:25:02. > :25:08.with what he says and I can tell him the best way to achieve it. Under
:25:09. > :25:16.Ruth Davidson to elect more Scottish Conservative MSPs to the Scottish
:25:17. > :25:19.Parliament. In the interest of the record, can the Secretary of State
:25:20. > :25:23.confirm that under the powers that are being devolved as part of the
:25:24. > :25:34.current Scotland Bill, the Scottish Government will be able to change
:25:35. > :25:38.rates of income tax... Order. I apologise to the honourable
:25:39. > :25:46.gentleman. The Secretary of State could not hear the question because
:25:47. > :25:49.of a rude eruption of noise. Perhaps he could ask his question again and
:25:50. > :25:59.members could have the common courtesy to allow him to be heard.
:26:00. > :26:01.We are getting used to this. In the interests of the record, can the
:26:02. > :26:06.Secretary of State confirm that under the paint -- powers that are
:26:07. > :26:09.currently being devolved as part of the Scotland Bill, the Scottish
:26:10. > :26:13.Government will be able to change rates and bands of the Scottish rate
:26:14. > :26:21.of income tax, allowing thel to make progress of choices on thesd
:26:22. > :26:24.additional powers, and that Labour have made plans to raise Scottish
:26:25. > :26:28.income tax that everyone before these powers are transferred... We
:26:29. > :26:38.have got the gist. Embers nded to learn the merits of the blud pencil.
:26:39. > :26:43.If they use the blue pencil and questions were shorter, thex would
:26:44. > :26:49.benefit. We will take on -- Scotland will take on these tax powers as
:26:50. > :26:54.they see fit. I hope they use them to make Scotland a more attractive
:26:55. > :27:06.place for business and commdrce grow the economy and the Scottish
:27:07. > :27:09.population. My right honour`ble friend the Secretary of State for
:27:10. > :27:14.Scotland has had a number of discussions with ordinations
:27:15. > :27:17.includes the -- including the Scottish Whisky Association and Oil
:27:18. > :27:21.and Gas UK. It is because of its commitment to our long-term economic
:27:22. > :27:26.ban and prosperity that we have seen such a growth in the Scottish
:27:27. > :27:30.economy. Thank goodness the good people of Scotland voted to stay
:27:31. > :27:37.within the United Kingdom and reject independence. Research shows that
:27:38. > :27:41.Scottish Opera workers could lose ?1300 annually as stores
:27:42. > :27:49.increasingly abandon their Sunday pay rates in light of Sandy trading
:27:50. > :28:00.regulations. Would he take these up with the secretary? -- Scottish shop
:28:01. > :28:03.workers. What we intend to do is devolved powers to local authorities
:28:04. > :28:06.they make the decisions as to what is in the best interests of people
:28:07. > :28:11.locally, including local people who may want to shop on a Sundax, and
:28:12. > :28:17.the interest of nurses who lay want to open more liberally on a Sunday
:28:18. > :28:21.to take full advantage. These are good ideas, and I hope she light
:28:22. > :28:36.consider supporting it. Questions to the Prime Minister.
:28:37. > :28:37.I know the House has been s`ddened by the death