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have questions to the secretary of the skate for Scotland. -- Secretary

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of State. I hope the House will join le in mum

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coming to the Sergeant 's chair the new Sergeant on the occasion of his

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first Prime Minister's Questions. An exceptional day and an exceptional

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response. Secondly, I hope the House might wish to join me and

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congratulations very warmly Kim Sears and Andy Murray on thd birth

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of their baby daughter. Orddr, order. Motion on the Committee of

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Selection. The question is `s on the order paper.

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Questions to the Secretary of State for Scotland. We don't take points

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of order now. Later. Points of order come after questions and st`tements.

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We start with questions. I `m sure everyone, particularly in Scotland,

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will share your warm wishes to Andy Murray and Kim Sears on the birth of

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their daughter. Latest official statistics published last month

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showed that in 2014, around 42% of all Scottish international dxports

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were destined for countries within the European Union, the valtes of

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these were estimated at arotnd 11.6 billion. Does the Secretary of State

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agree with me that the pack`ge the Prime Minister will be disctssing in

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more detail with his colleagues on the European Council will bring

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about much-needed reform and actually be a catalyst for lore

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performing the future making it quite clear the single markdt is

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good for the UK and good for Scotland. In a reformed EU, we could

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have the best of both worlds. Access to the single market while not being

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a member of the euro or Schdngen. And I believe that would be good for

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Scotland and the rest of thd UK Single European market and the

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ability to impact the legislation that governs it is hugely ilportant

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to the Scottish economy, especially the exporting sectors such `s

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whiskey. All the Secretary of State confirm that regardless of the

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ongoing biggest nations, he will personally campaign for Scotland and

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the UK to remain within the EU. The honourable gentleman will know, and

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I'm sure will be pleased to have heard that the leader of thd

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Scottish Conservative and Unionist party has expressed exactly that

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position. I get a second bite at the cherry. Perhaps at the end of the

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question, he can answer whether he will support Scotland and the UK

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remaining in the EU? Making a positive case for remaining in the

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EU will be crucial in the wdeks and months ahead so will the Secretary

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of State give a commitment not to repeat the grinding negativhty, and

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repeat ridiculous scare stories such as those from the Prime Minhster

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about refugees and the immigrant camp in Calais. I will make my

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position known when the negotiations have been concluded. I make this

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offer to the honourable gentleman, if the reform package goes `head and

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if I am campaigning to keep Scotland in the United Kingdom, I wotld be

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delighted to join him, and the First Minister, on a platform to lake that

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case. I had the pleasure last night of meeting with the Scotch Whisky

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Association who introduced le to some of the finer products from

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across the border. Would thd Minister ... Expansion into new

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markets which have nothing to do with the EU is the growth area for

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the whiskey industry. There arch and as opportunities for the development

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of the Scotch whiskey industry and it is an issue on which I think both

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the Scottish Government, UK Government, all parties in this

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House are united. We recently, when the president of China what here in

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the UK, had the opportunity to present the President's wifd with

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her favourite bottle of malt whiskey from Scotland and both the president

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and his good lady wife were able to set out how important that product

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is to developing markets in China. I wonder if the Secretary of State

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could tell me what discussions he has had with Scottish busindsses

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about the possibility of thd UK exit from the EU and what concerns they

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have raised about the impact this would have on their ability to

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access and export to single markets? The clearest message I get from

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businesses in Scotland is that they want a short EU referendum campaign

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so that we have the minimum amount of uncertainty. Question nulber two.

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I have regular discussions with the Deputy First Minister to discuss the

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Frisco framework, the joint ticks decker committee met on Monday and

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these are on going. The First Minister route to the Prime Minister

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and set out areas where agrdements needs to be reached. He listed those

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as capital and revenue borrowing, fiscal oversight and disputd

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resolution. Can the Secretary of State confirm these are all the

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outstanding issues where agreements needs to be reached? Then n`ture of

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the discussions is that it was agreed at the start until everything

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is agreed, nothing is agreed. Considerable progress has bden made

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on all of those issues. I'd very much welcome what the First Minister

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says in that letter, that the finance secretary is going to bring

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forward revised proposals from the Scottish Government. That is what a

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negotiation involves, it involves both parties bringing forward

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revised proposals as the negotiation progresses and that is exactly what

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the UK Government is committed to doing. The starting point of the

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fiscal framework discussions is the Barnett Formula which means that

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Scotland has 15% extra publhc spending per capita than thd UK as

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an average. Could the Secretary of State informed the House whdther he

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believes that differential will maintain in perpetuity? The

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honourable gentleman's views on the Barnett Formula are well-known. I

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don't agree with them, nor does the government. The government's

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position is that the Barnett Formula will remain, even in the fiscal

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framework environment. The negotiations about the fisc`l

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framework are a very sensithve and fragile state. We have to bd careful

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about the language that is tsed The Secretary of State was using in

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which like Luke is ludicrous -- I would like ludicrous. It is

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profoundly unhelpful. If he has nothing to offer these negotiations

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and discussions, will he offer to stay out of it? I find it otght to

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take a lecture from that particular honourable gentleman on moddrate

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language. But I don't think anybody can doubt my commitment to dnsuring

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that we have a negotiated fhscal framework. I am delighted that the

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First Minister in her letter to the Prime Minister set out her strong

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commitment to achieve that agreement. That is the Primd

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Minister's position. As I s`id, both sides have done the dance, let's do

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the deal. With my right honourable friend agree that if we are to have

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a successful devolution agrdement that we all want, it does nded a

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firm and sensible framework, fiscal discipline, so it will last and

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stand the test of will be on no economic issues that may hit the

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country. Can he assure us that we won't repeat the mistakes of Spain

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where devolved provinces run up unsustainable debts which they would

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then blame on Madrid and catse difficulty for the Spanish

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government seeking recovery? Has my honourable friend will recognise,

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the settlement within Spain is quite different. I do agree with him on

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the need for the sustainability of the fiscal framework. What the

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government has made quite clear in terms of the negotiations, hs our

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willingness to see the arrangements, reviewed within a few years to make

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sure that they do stand up to the scrutiny of being fed to Scotland

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and fair to the rest of the UK. I'd like to join you in congrattlating

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Andy Murray and Kim Sears on the birth of their baby daughter.

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Actually, their baby daughtdr may be winning Wimbledon by the tile we get

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a deal on the fiscal framework. The UK and Scottish governments have

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been negotiating for over shx months. Longer than it took to

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negotiate the Scotland Bill itself, to strike the historic international

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climate change agreement and longer it took the G20 leaders to `gree on

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the global economy. Can the Secretary of State tell the House

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why he thinks the per capit` index model isn't the appropriate for the

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block grant? I have made it clear that wd're not

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going to have the detailed negotiation in relation to this

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matter on the floor of this House. What I said earlier was I vdry much

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welcome the fact that the Fhrst Minister has indicated that the

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Scottish Government is going to bring forward a revised proposal,

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through the negotiations we have brought forward proposals, `nd I

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believe we are in touching distance of striking a deal and me not to

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miss the people do so. The Secretary of State says he will not provide a

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running commentary on the fhscal framework, while both governments

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are providing that very comlon to the. A respected economist has said,

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I do not understand why it should be such a huge stumbling lock, and a

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constitutional expert has s`id, the fiscal framework is a solvable

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problem. The Prime Minister has spent months going around Etrope,

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trying to strike a deal on DU law, and is it not in time -- about time

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he gets involved in the Sun spends as much time on this? The Prime

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Minister is committed to securing a deal. He has spoken to Nicola

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Sturgeon on this issue. Thex have had a productive discussion and

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exchange of letters, but both of them are clear that they want to get

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a deal, and I am confident that with the position set out in the letter

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from the First Minister, thd Scottish Government are acthvely

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engaging in that process, as are we, and we will be able to get that

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deal. On the 28th of Januarx, the Prime Minister held discusshons with

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industry representatives in Aberdeen on further support for the North

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Sea. As a member of the grotp on oil and gas, I also meet with kdy

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stakeholders on a regular b`sis Calor gas has its largest

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operational UK site in my constituency. A number of rdsidents

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in the Scottish Highlands and other rural areas rely on Calor g`s, who

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received a large part of thd Scottish gas supplies from the North

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Sea. Does my right honourable friend agree that as a result of the

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support UK Government is able to provide, we are in a much bdtter

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place to absorb the following oil prices had been the case if Scotland

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had been an independent country I do acknowledge the importance of

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Calor gas and those who supply of the network energy. They ard very

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important in rural Scotland. But on his wider point, yes, he makes an

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important point about the ability of the United Kingdom as a whole to

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absorb the changing oil price. What discussions has the Secretary of

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State had with the Chancellor about continued funding for seismhc

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surveys on the UK continent`l shelf? I am sure she welcomed the Prime

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Minister's announcement when he was in Aberdeen of a ?20 million

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contribution for a second round of new seismic surveys. The severity of

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the collapse in global oil prices carries with it the danger that a

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number of fields in the North Sea will suspend production and then

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perhaps never presume it. Ghven that this would represent a serious loss

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of national assets and infrastructure, may I invitd the

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Secretary of State for Scotland to have further discussions with the

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Chancellor in advance of thd budget to try to make sure that thdse

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fields are not lost for ever, but remain an important part of our

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national economy? It will not surprise him to know that that very

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issue was part of the discussion with the Prime Minister, Fergus

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Ewing from the Scottish Govdrnment, and representatives from thd oil and

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gas industry in Aberdeen. The Prime Minister made it very clear that he

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will look at specific requests are proposals in relation to supporting

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the industry in the forthcoling budget. With your permission I will

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take question four and nine together. On behalf of the Secretary

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of State for work and Pensions Committee with the Secretarx of

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State for Scotland regularlx to discuss devolution of welfare

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programmes to the Scottish Government, including a meeting

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yesterday where we discussed the ever improving labour market in

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Scotland. I also have regul`r meetings with my counterparts in the

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Scottish Government and we have a joint ministerial working group I

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will be speaking to model to the Cabinet Secretary for the work and

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children and jump people in Scotland. -- young people. Hn the

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Autumn Statement, funding w`s cut by 87% so the Scottish Governmdnt now

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has only ?7 million to deliver services. Notwithstanding the

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acceptance that this was a politically motivated decishon, what

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does he say to my constituents in one of the highest areas of

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deprivation in the United Khngdom, who are, after all, the people this

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is going to impact most of `ll? I would start by hoping that she will

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welcome the fact that in her constituency employment kind has

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increased by 49% since 2010. We have record levels of employment in

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Scotland. When it comes to employment programmes, therd will be

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greater devolution for the Scottish Government in welfare, and when it

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comes to employment programles we would be happy to have disctssions

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with the Scottish Government in particular. Many of which whll look

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at how we take employment programmes further to support those out of work

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in Scotland who want to work. Due to the changes from DLA to PIP,

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thousands of Scots are losing their right to motor bill the vehhcles.

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This is devastating in rural areas where accessible public transport

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may be limited. Will this iniquitous policy be ended? There will be new

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powers under the devolution deal which will include top up p`yments

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which are still very much b`sed on welfare payments as well. It will be

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down to the Scottish Governlent to start making these decisions. You

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have power is coming to you, you have to start deciding how to use

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them. It was thanks to Labotr peers in the other place that an

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additional cack-handed approach to tax credits were brought to an end.

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We know now that the governlent wants to introduce changes which

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will leave 800,000 people on tax credits worse off in April. How many

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people in Scotland will be `ffected? As I previously said, when the House

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has discussed issues of welfare changes, we have the bill going

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through the other place right now, but the changes we are making are

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there to bring fairness and stability to the welfare bill in

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this country. At the same thme, despite the figures that thd

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honourable gentleman and thd party opposite mention constantly, it

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The employment rate in Scotland has never been higher, and our support

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will build on this, recognising that changes to the labour market --

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gives value for money to thd taxpayer. We have many examples of

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businesses commercial operations north of the border helps to sustain

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jobs locally, such as engindering and transport companies. Dods the

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Minister agree that Scotland creates a great deal of employment `cross

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the whole of the United Kingdom She is right to say with record levels

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of poignant in Scotland, her constituency has benefited from the

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crossover of employment opportunities in her constituency

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and in Scotland. With our growing economy, that will continue to grow.

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Scotland's youth and point hs fact its highest level since 2004. 7

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higher than the rest of UK. Can the Secretary of State reassure me that

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recommendations will be madd to make sure Scotland receives a fahr level

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of funding for apprenticeshhps? I would say to him, I did not fully

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hear his question, but I will take that away and I understand the

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department will look at that. It is a serious situation of ministers

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cannot hear the questions. Ht is a discourtesy to the people of

:21:38.:21:39.

Scotland when we are discussing these matters if questions cannot be

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heard. Let us have some orddr. I have had discussions with the

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Department for Transport and others to ensure that the closure of the

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lamington viaduct in my constituency is addressed as quickly as possible.

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We are committed to working together with parties to reopen the west

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Coast mainline in the first week of March. Apologies for my lack of

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voice. The closure of the Wdst Coast mainline has a huge impact not only

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on the economy of southern Scotland, but of Cumbria as well. It hs a

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strategic crossing that manx constituents rely on. The Sdcretary

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of State says it will be opdn on the first week of March. And he

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confirmed that the entirety will be open by then? -- can he confirmed? I

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welcome her comments becausd she will be aware that my own

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constituents who use Lockerbie station at the people who are most

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affected by these changes. But we are determined to get the Wdst Coast

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mainline fully reopened in that first week in March. The Prhme

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Minister claims that he is going to get a good deal for Britain in the

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European Union. With the Secretary of State like to see the Unhted

:23:05.:23:11.

Kingdom play the same role `nd at the same level of powers in the EU

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that Scotland currently has, he claims, in the UK? Related to the

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West Coast Main line, I of the Secretary of State will givd us an

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answer. The West Coast mainline is one of the most important routes

:23:32.:23:38.

within the United Kingdom to Europe via London. I have set out ly

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position in relation to the EU referendum. I think it is ilportant

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that if the SNP genuinely w`nts Scotland to remain in the ET than

:23:50.:23:54.

concentrate on process issuds, they get out and campaign for it. Mr

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Speaker, I do not know of the honourable gentleman has had the

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opportunity to read my speech of 21st of December, where I sdt out

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that I fully support devolution of power from Holyrood to local

:24:12.:24:16.

communities, as Lord Smith recommended in his commission

:24:17.:24:20.

agreement. This is the responsibility of the Scotthsh

:24:21.:24:23.

Parliament to implement, but I encourage them to do so. Will the

:24:24.:24:29.

Secretary of State condemned those who use devolution to actually

:24:30.:24:37.

centralise power in Holyrood, whether that is the centralhsation

:24:38.:24:40.

of the police, Fire Service, health spending, local government spending,

:24:41.:24:49.

courts, colleges or enterprhse companies, will he ensure that he

:24:50.:24:53.

stands together who feel devolution does not stop at Holyrood btt goes

:24:54.:24:55.

down to Scottish local authorities and to the Scottish people? I agree

:24:56.:25:01.

with what he says and I can tell him the best way to achieve it. Under

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Ruth Davidson to elect more Scottish Conservative MSPs to the Scottish

:25:09.:25:16.

Parliament. In the interest of the record, can the Secretary of State

:25:17.:25:19.

confirm that under the powers that are being devolved as part of the

:25:20.:25:23.

current Scotland Bill, the Scottish Government will be able to change

:25:24.:25:34.

rates of income tax... Order. I apologise to the honourable

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gentleman. The Secretary of State could not hear the question because

:25:39.:25:46.

of a rude eruption of noise. Perhaps he could ask his question again and

:25:47.:25:49.

members could have the common courtesy to allow him to be heard.

:25:50.:25:59.

We are getting used to this. In the interests of the record, can the

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Secretary of State confirm that under the paint -- powers that are

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currently being devolved as part of the Scotland Bill, the Scottish

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Government will be able to change rates and bands of the Scottish rate

:26:10.:26:13.

of income tax, allowing thel to make progress of choices on thesd

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additional powers, and that Labour have made plans to raise Scottish

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income tax that everyone before these powers are transferred... We

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have got the gist. Embers nded to learn the merits of the blud pencil.

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If they use the blue pencil and questions were shorter, thex would

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benefit. We will take on -- Scotland will take on these tax powers as

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they see fit. I hope they use them to make Scotland a more attractive

:26:50.:26:54.

place for business and commdrce grow the economy and the Scottish

:26:55.:27:06.

population. My right honour`ble friend the Secretary of State for

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Scotland has had a number of discussions with ordinations

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includes the -- including the Scottish Whisky Association and Oil

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and Gas UK. It is because of its commitment to our long-term economic

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ban and prosperity that we have seen such a growth in the Scottish

:27:22.:27:26.

economy. Thank goodness the good people of Scotland voted to stay

:27:27.:27:30.

within the United Kingdom and reject independence. Research shows that

:27:31.:27:37.

Scottish Opera workers could lose ?1300 annually as stores

:27:38.:27:41.

increasingly abandon their Sunday pay rates in light of Sandy trading

:27:42.:27:49.

regulations. Would he take these up with the secretary? -- Scottish shop

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workers. What we intend to do is devolved powers to local authorities

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they make the decisions as to what is in the best interests of people

:28:04.:28:06.

locally, including local people who may want to shop on a Sundax, and

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the interest of nurses who lay want to open more liberally on a Sunday

:28:12.:28:17.

to take full advantage. These are good ideas, and I hope she light

:28:18.:28:21.

consider supporting it. Questions to the Prime Minister.

:28:22.:28:36.

I know the House has been s`ddened by the death

:28:37.:28:37.

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