:00:00. > :00:00.Committee but you can continue watching online. Order! Order!
:00:00. > :00:16.Questions to the Secretary of State for Scotland. Can I begin by
:00:17. > :00:22.expressing the solidarity of the people of Scotland with the people
:00:23. > :00:25.of Belgium at this difficult time? Our thoughts, prayers and
:00:26. > :00:31.condolences go to all those who were killed and their families and
:00:32. > :00:36.friends and all those caught up in a yesterday's horrific events. Golf
:00:37. > :00:43.makes a huge contribution to Scotland's economy. Independent
:00:44. > :00:47.analysis in 2013 showed the game contributed ?1 billion in revenue
:00:48. > :00:52.and supported some 20,000 jobs. There are almost 600 golf courses
:00:53. > :00:58.across the country generating annual revenues of ?582 million. Thank you
:00:59. > :01:02.for the answer and I very much share the sentiments of solidarity that he
:01:03. > :01:07.expressed towards the people of Belgium at this difficult time.
:01:08. > :01:12.Given the success he talks about English to golfing in Scotland, what
:01:13. > :01:17.steps is he taking to secure further investment in this important
:01:18. > :01:23.industry for Scotland? There is one new opportunity to support golf and
:01:24. > :01:31.young people in golf which arose from last week's budget, and sugar
:01:32. > :01:37.tax element of it which would see investment in the wider UK in sport
:01:38. > :01:40.in schools and I hope the Scottish Government will follow through and
:01:41. > :01:44.use the funds to develop sport in schools, including golf which is a
:01:45. > :01:47.very popular sport as we have heard. We also have the opportunity to
:01:48. > :01:52.present Scotland's golfing merits to the wider world with the British
:01:53. > :02:00.open at Royal Troon and that will be a showcase for the world on
:02:01. > :02:06.Scotland's golfing opportunities. I thank the honourable gentleman for
:02:07. > :02:09.mentioning my local golf course is the MP for Royal Troon. We've look
:02:10. > :02:15.forward to welcoming people in July. ... We. I wondered if he could
:02:16. > :02:20.discuss with other colleagues on the front bench about having a regional
:02:21. > :02:24.strategy for having smaller airports and at Prestwick you flying over
:02:25. > :02:29.Royal Troon, and perhaps while the Chancellor is on a list include, to
:02:30. > :02:38.perhaps consider a VAT reduction for rural tourism which will help many
:02:39. > :02:48.communities. -- in mood. -- in a listening mood. I would be happy to
:02:49. > :02:52.meet with the honourable lady to discuss those issues further and I
:02:53. > :02:58.am interested in pursuing the proposed Ayrshire regional growth
:02:59. > :02:59.via which I know has golf at the heart of it in terms of promoting
:03:00. > :03:16.tourism in that part of Scotland. Can I add my contribution on that
:03:17. > :03:19.particular topic and say that it was with pleasure that I saw the
:03:20. > :03:24.secretary of state share a platform with the verse minister and I'm sure
:03:25. > :03:26.they discussed the topic just discussed they can you confirm that
:03:27. > :03:32.is an example of the two governments working together for the interests
:03:33. > :03:37.of the people of Scotland? You will be pleased, Mr Speaker, that the
:03:38. > :03:44.First Minister met and shared a platform in St Andrews, which of
:03:45. > :03:48.course is the world home of golf. Of course, on sport and any matter,
:03:49. > :03:54.Scotland does best when Scotland's two governments work together. This
:03:55. > :03:59.is the first opportunity in parliaments to put on record our
:04:00. > :04:03.total revulsion and condemnation of the terrorist atrocities in Brussels
:04:04. > :04:07.and solidarity with everybody affect it and we join the Secretary of
:04:08. > :04:10.State for Scotland in that. The promotion of the Ryder Cup in
:04:11. > :04:14.Scotland was a huge achievement for the Scottish Government and the then
:04:15. > :04:18.First Minister Alex Salmond. Today is the last sitting day of the
:04:19. > :04:22.Scottish Parliament so given that he is standing down from Holyrood, can
:04:23. > :04:27.I pay tribute to him in his remarkable tenure as an MS he and
:04:28. > :04:36.First Minister, and to all others of all parties who are retiring? --
:04:37. > :04:41.MSP. Does the Secretary of State believe there is much to build on
:04:42. > :04:47.following the Ryder Cup? I hope the right honourable gentleman won't
:04:48. > :04:53.object when I say the first part of his question was way off the
:04:54. > :04:56.fairway. The securing of the Ryder Cup to be held in Scotland was a
:04:57. > :05:03.very significant event and I can agree that the former First Minister
:05:04. > :05:07.of Scotland has made a remarkable contribution to Scottish politics.
:05:08. > :05:17.The detail on that will probably differ. I believe that what the
:05:18. > :05:23.former First Minister has done and the former MSPs have done, what we
:05:24. > :05:26.all need to do is promote Scotland together and by doing that, that is
:05:27. > :05:33.when we get the best results for Scotland. I will try and remain on
:05:34. > :05:37.the fairways. Tourism is one of the most important industries that
:05:38. > :05:41.Scotland has an golf and whiskey are key drivers for people visiting the
:05:42. > :05:48.country, so does the secretary of state welcome local initiatives to
:05:49. > :05:52.promote iconic locations, such as Speyside? What encouragement would
:05:53. > :05:57.he give to public and private sector partners in making the most of
:05:58. > :06:04.world-class potential as a tourism draw? I am aware of the specific
:06:05. > :06:11.initiatives to promote Speyside having recently visited the right
:06:12. > :06:15.honourable gentleman's very picturesque constituency and I wish
:06:16. > :06:19.them well. I believe that these opportunities only reach their full
:06:20. > :06:23.potential with significant public and private sector partners playing
:06:24. > :06:26.a full part and I look forward to hearing from the right honourable
:06:27. > :06:31.gentleman about progress from Speyside and other regions of
:06:32. > :06:39.Scotland, making the most of that potential. Government ministers and
:06:40. > :06:43.officials have meetings with a wide variety of organisations within the
:06:44. > :06:47.public and private sectors, including the oil and gas industry.
:06:48. > :06:51.The Chancellor announced last week reforms to support jobs and
:06:52. > :06:53.investment in the oil and gas sector which will help the industry
:06:54. > :06:59.response to the challenging conditions caused the steep fall in
:07:00. > :07:04.oil prices. The excellent budget practice for the oil and gas
:07:05. > :07:10.industry has been welcomed by the industry. Is this not another
:07:11. > :07:12.example that shows that when Scotland's two governments work
:07:13. > :07:20.together they can get the best for Scotland? And independent Scotland
:07:21. > :07:23.could never achieve this. My honourable friend makes an extremely
:07:24. > :07:30.good point and the fact is that the United Kingdom is able to absorb the
:07:31. > :07:36.shock of a volatile oil price and take steps to ensure that we have an
:07:37. > :07:44.oil and gas sector which is as strong as it can be given below oil
:07:45. > :07:48.prices. Will Minister and from bench colleagues commits to taking action
:07:49. > :07:52.to ensure that companies within the oil and gas sector have appropriate
:07:53. > :07:58.access to finance at this time? We do all we can as a governments to
:07:59. > :08:03.support businesses in length and breadth of the United Kingdom in all
:08:04. > :08:08.sectors. The point I would make is that we are able to take action in
:08:09. > :08:13.this area and support the oil and gas because we are a United Kingdom,
:08:14. > :08:17.and had we been in the position where Scotland became independent,
:08:18. > :08:24.it would raise a very, very substantial loss of revenue and we
:08:25. > :08:32.would have great difficulties in absorbing that. I meet with my right
:08:33. > :08:38.honourable friend, the Secretary of State for Scotland, and counterpart
:08:39. > :08:50.ministers on regular occasions to discuss devolution. The budget saw
:08:51. > :08:55.one of the most measures, cutting PIP for 40,000 disabled people in
:08:56. > :08:59.Scotland. I wondered when the Minister 's first realised that this
:09:00. > :09:03.was the wrong thing to do, around the Cabinet table, drawing the
:09:04. > :09:08.budget statement, or on Sunday when the Prime Minister was forced to
:09:09. > :09:13.backtrack on it? The government's position is clear when it comes to
:09:14. > :09:18.PIP and disability reforms as was announced by the Secretary of State
:09:19. > :09:31.for Work and Pensions, and the Chancellor. Could you inform the
:09:32. > :09:36.House when he realised the cuts were running, or was he himself planning
:09:37. > :09:41.a resignation over the weekend? As I have already said, the Dublin
:09:42. > :09:46.position has been abundantly clear, and if he missed the right
:09:47. > :09:49.honourable friend's Secretary of State for Work and Pensions's
:09:50. > :09:58.statement on Monday, I would be happy to share it with him again.
:09:59. > :10:03.Can I start by echoing the comments of the secretary of state and leader
:10:04. > :10:08.of the SNP and pass on my heartfelt condolences to all those involved in
:10:09. > :10:12.the events in Brussels. We will defeat terrorism but as the
:10:13. > :10:17.secretary of state is said, that will take solidarity and resolve. We
:10:18. > :10:19.pass the budget last night which was unprecedented and contain a ?4.4
:10:20. > :10:26.billion black hole after the Chancellor was forced to reverse his
:10:27. > :10:28.decision on cutting PIP payments. Their long-term economic plan
:10:29. > :10:35.turning into a long-term economic scam. These savage cuts, following
:10:36. > :10:39.the reduction in VAT, will have an effect on 60,000 Scots, and it would
:10:40. > :10:43.have gone through without the resignation from the Member for
:10:44. > :10:49.Woodford Green. Can the Minister guarantee that when the Chancellor
:10:50. > :10:50.returns that none of these cuts will fall on the disabled and most
:10:51. > :10:56.runnable? Well, thank you Mr Speaker and I
:10:57. > :11:00.thank the honourable gentleman for his comments. I mean, first of all,
:11:01. > :11:05.I welcome his comments with regards to the tribute to my honourable
:11:06. > :11:08.friend the member for Chingford and Woodford Green. We have been very
:11:09. > :11:11.clear as a Government that we are not proceeding with our changes and
:11:12. > :11:16.we will not be seeking alternative off set in savings as well.
:11:17. > :11:19.Well, it is quite clear Mr Speaker from that answer and from the
:11:20. > :11:23.previous answer that the Government has absolutely no idea what to do
:11:24. > :11:28.now. They are creating untold anxiety for those people in Scotland
:11:29. > :11:32.affected. Let me remind the House what the former Secretary of State
:11:33. > :11:37.said. He said that the cuts in this Budget risked dividing society. That
:11:38. > :11:42.put pounds ahead of people and were distinctly political rather than in
:11:43. > :11:48.the national economic interests. Does she agree with her former
:11:49. > :11:52.Cabinet colleague that these cuts are not defenceable and does she
:11:53. > :11:56.want to take this opportunity to apologise on behalf of the Scottish
:11:57. > :12:02.Conservative Party to the tens of thousands of vulnerable and disabled
:12:03. > :12:07.Scots affected by this shambles? Thank you, Mr Speaker. The point
:12:08. > :12:10.that I made already. The Government's position is
:12:11. > :12:15.fundamentally clear. There will be no further changes to disability
:12:16. > :12:18.payments. He may have realised last night that the Budget was passed
:12:19. > :12:22.through this House and that was right and proper and he should
:12:23. > :12:26.recognise that we as a Government are delivering on the Smith
:12:27. > :12:29.commission and devolving powers to the Scottish Government and we will
:12:30. > :12:33.look forward to working with the Scottish Government when it comes to
:12:34. > :12:37.Welfare Reform and the delivery of employment and support programmes
:12:38. > :12:42.going forward for the betterment for the Scottish people.
:12:43. > :12:45.Number four, Mr Speaker. I regularly meet a wide range of business
:12:46. > :12:49.organisations to discuss economic issues in Scotland as I have already
:12:50. > :12:53.alluded to last week, I shared a platform with the First Minister of
:12:54. > :12:56.Scotland at the annual forum of the Scottish council for development in
:12:57. > :13:01.industry, where we discussed the important issue of productivity.
:13:02. > :13:04.Given that businesses in Redditch welcomed the devolution deal for
:13:05. > :13:07.Birmingham, what representations have business groups in Scotland
:13:08. > :13:12.made to my Right Honourable friend about city deals there?
:13:13. > :13:16.Mr Speaker, I have been particularly delighted at welcome from business
:13:17. > :13:21.groups in Scotland for the announcement yesterday of the
:13:22. > :13:24.Inverness and Highland City Dale which in combination the Scottish
:13:25. > :13:30.Government, UK Government and Highland Council, will deliver a
:13:31. > :13:35.package of ?315 million and I also particularly welcome the Early Day
:13:36. > :13:38.Motion from the member from Inverness and his colleagues and I
:13:39. > :13:45.pay trib tut to his part in bringing that deal about.
:13:46. > :13:48.The Secretary of State will be aware that around 400,000 workers in
:13:49. > :13:53.Scotland earn less than the Living Wage. The Government claims to be on
:13:54. > :13:59.the side of working people so why have his Scottish Tory colleagues
:14:00. > :14:08.repeatedly voted alongside the SNP Government to thwart Scottish Labour
:14:09. > :14:13.proposals to extend the Living Wage? Well, I will resist the temptation
:14:14. > :14:17.Mr Speaker to give the honourable lady a lecture on the Scottish
:14:18. > :14:22.Labour Party's woes and the fact that they have not been a credible
:14:23. > :14:27.Opposition to the SNP in Scotland. This Government is very, very clear
:14:28. > :14:32.on its proposals to increase the wages of the poorest in society by
:14:33. > :14:37.the introduction of the national Living Wage.
:14:38. > :14:40.Local Government quite clearly has a role to play in economic
:14:41. > :14:44.development. Would the minister agree that it is important that the
:14:45. > :14:48.Scottish Parliament also devolves power to Local Government and they
:14:49. > :14:54.could look to England for a lead such as elected mayors?
:14:55. > :14:59.Mr Speaker, I very much take on board what my honourable friend had
:15:00. > :15:05.to say, but when I spoke with the First Minister of Scotland at the SC
:15:06. > :15:09.dismt Forum last week, I was particularly encouraged about what
:15:10. > :15:13.she had to say about her support for city deals and I hope that the city
:15:14. > :15:16.deals that we see emerging in Scotland will not just include the
:15:17. > :15:25.financial packages, but they will go on to include greater devolution
:15:26. > :15:31.within Scotland. People in my constituency are
:15:32. > :15:37.extremely concerned by the perceived impact on the local economy and
:15:38. > :15:40.local jobs of the proposed closure of HMRC sites, what impact
:15:41. > :15:47.assessment is being made of these closures on our local economy and
:15:48. > :15:55.jobs? Mr Speaker, initial proposals have
:15:56. > :16:00.been set out in relation to the future shape of HMRC and of course
:16:01. > :16:06.we hear in this House about wishes to make HMRC more efficient and more
:16:07. > :16:09.effective, but no steps will be taken in the honourable lady's
:16:10. > :16:17.constituency or elsewhere without full consultation with all those
:16:18. > :16:21.involved. Number six, Mr Speaker. As the First
:16:22. > :16:25.Minister and I both confirmed when we shared a platform in St Andrew's
:16:26. > :16:29.in his own constituency last week, the official position of both the UK
:16:30. > :16:36.and Scottish Governments is that the UK is better off in a reformed EU.
:16:37. > :16:40.Thank you, Mr Speaker. Firstly, can I associate myself with the remarks
:16:41. > :16:44.on Brussels having spent many happy years in that wonderful city. The
:16:45. > :16:52.Secretary of State will be aware of the benefits the EU membership has
:16:53. > :16:57.brought us such as paternal rights, quality entitlement, does he agree
:16:58. > :17:02.we should be focussing on these benefits and not a re-run of project
:17:03. > :17:06.fear? I don't know if the honourable gentleman saw the details of my
:17:07. > :17:10.speech yesterday which set out the benefits to Scotland of remaining in
:17:11. > :17:14.the EU and in which I set out a positive case and I look forward to
:17:15. > :17:19.sharing platforms over the coming weeks with him and his colleagues to
:17:20. > :17:23.make that case. Thank you, Mr Speaker. Given that we
:17:24. > :17:26.have a ?62 billion a year trade deficit with the European Union,
:17:27. > :17:30.does the Secretary of State think that if we were to leave the EU, the
:17:31. > :17:34.Prime Minister has the ability to negotiate a free trade deal with the
:17:35. > :17:37.European Union or does he think that the Prime Minister hasn't got the
:17:38. > :17:43.ability to negotiate a free trade deal with the European Union?
:17:44. > :17:48.Mr Speaker, my position is clear. I believe that Scotland and the UK are
:17:49. > :17:55.better off in the EU, with the reformed arrangement that the Prime
:17:56. > :18:03.Minister has already negotiated. Thank you. Will my Right Honourable
:18:04. > :18:05.friend recognise that a survey confirmed that the Scottish
:18:06. > :18:12.Government is one of the most trusted governments in the hole of
:18:13. > :18:21.Europe. Will he look forward to the re-election of Nicola Sturgeon and
:18:22. > :18:26.her team? Mr Speaker, what I want to ensure is that Nicola Sturgeon and
:18:27. > :18:29.her team are properly held to account in the Scottish Parliament
:18:30. > :18:35.and that's why I'm encouraging people to vote for Ruth Davidson and
:18:36. > :18:46.the Scottish Conservatives. Question number six, Mr Speaker.
:18:47. > :18:49.Thank you. I have regular discussions with the Secretary of
:18:50. > :18:53.State for Energy and climate change and ministers of the Scottish
:18:54. > :18:58.Government on a number of important energy issues affecting Scotland
:18:59. > :19:02.most recently last night. The Government's own advisors on
:19:03. > :19:12.energy and climate change warned that the cost of meeting our climate
:19:13. > :19:15.change targets, could, double without carbon capture and storage.
:19:16. > :19:22.Seeing as the Government are having a good run on U-turns when it comes
:19:23. > :19:27.to saving George Osborne the Chancellor, perhaps you would like
:19:28. > :19:32.to make a U-turn when it comes to saving the planet, something I think
:19:33. > :19:38.people think is far more worthwhile? Mr Speaker, we are looking carefully
:19:39. > :19:42.at all options in developing our approach to CCS. In parallel the
:19:43. > :19:46.Government continues to engage with the CCS industry including shale who
:19:47. > :19:54.are leading the proposed Peterhead project.
:19:55. > :19:59.At the time of the announcement for the ?1 billion of funding for the
:20:00. > :20:04.carbon capture and storage scheme at Peterhead, the Energy Secretary was
:20:05. > :20:08.forced to deny that it was a bribe prior to the independence
:20:09. > :20:12.referendum. Now that the withdrawal of this supposed ring-fenced capital
:20:13. > :20:15.investment exposes that it was just that, will the Secretary of State
:20:16. > :20:22.take this opportunity today to apologise to the people of Scotland?
:20:23. > :20:27.Mr Speaker, if anybody should apologise to the people of Scotland,
:20:28. > :20:35.it's the honourable lady and her friends for suggesting that oil
:20:36. > :20:41.tomorrow would have a price of $103 a barrel. What is clear in relation
:20:42. > :20:45.to CCS is that the costs are high and must come down. We haven't ruled
:20:46. > :20:49.KCS out and we're committed to working with the industry to bring
:20:50. > :20:57.forward innovative ideas for reducing the costs of this
:20:58. > :21:01.potentially important industry. Mr Speaker, I amming reluctant to
:21:02. > :21:06.refer to a Budget because we can't be absolutely sure what is in and
:21:07. > :21:08.what is out! For example, the Chancellor's
:21:09. > :21:13.support for the oil and gas industry is welcome, but it doesn't take us
:21:14. > :21:18.very far forward. And unfortunately it appears that the Government here
:21:19. > :21:23.in London, it is taking its cue from the Government in Holyrood. There
:21:24. > :21:27.the SNP Government recently axed ?10 million of tax breaks for renewable
:21:28. > :21:33.firms and they see themselves as a green administration.
:21:34. > :21:35.Aren't we seeing two governments who are confused, pursuing contradictory
:21:36. > :21:43.policies and not knowing if they are coming or going?
:21:44. > :21:48.Mr Speaker, I can point out one very distinct difference between this
:21:49. > :21:51.Government and any Labour Scottish Government or indeed SNP Scottish
:21:52. > :21:57.Government and that is that we are not putting up the tax for ordinary
:21:58. > :22:02.people as both those parties propose. Mr Speaker, we have made it
:22:03. > :22:10.very clear that the door is not closed on CCS, but the costs must
:22:11. > :22:17.come down. Number seven, Mr Speaker.
:22:18. > :22:21.The UK and Scottish governments met ten times under joint exchequer
:22:22. > :22:24.committee since the election last year. These resulted in a new fiscal
:22:25. > :22:27.framework for the Scottish Government, agreement on fiscal
:22:28. > :22:32.framework and enables us to deliver on the vow we made to the Scottish
:22:33. > :22:35.people and delivers one of the most powerful and accountable devolved
:22:36. > :22:38.parliaments in the world with the economic and national security that
:22:39. > :22:44.comes from being part of the United Kingdom.
:22:45. > :22:47.Does the minister agree that it would be bad news for Scotland if it
:22:48. > :22:53.became the highest tax part of the United Kingdom? And does he agree
:22:54. > :22:58.with Ruth Davidson that Scottish taxpayers shouldn't have to pay
:22:59. > :23:01.anymore in tax than fellow Britons in England, Wales and Northern
:23:02. > :23:05.Ireland? Well, the Scottish people have got
:23:06. > :23:09.essentially three choices in their elections. Two of those choices
:23:10. > :23:20.where they will be voting Labour or voting SNP would involve paying more
:23:21. > :23:24.in income tax. Does the secretary agree with me
:23:25. > :23:29.that the Chancellor's last minute intervention to agree the framework,
:23:30. > :23:33.would the Secretary of State of Scotland aware that the Chancellor's
:23:34. > :23:39.intentions endanger of framework at the very last moment?
:23:40. > :23:44.The answer is, no. An agreement has been reached. We're pleased we've
:23:45. > :23:50.got that agreement and now it is for the Scottish Government to be held
:23:51. > :23:57.accountable by the Scottish people. Question number eight, Mr Speaker.
:23:58. > :24:00.The Chancellor has delivered a Budget that delivers for Scotland.
:24:01. > :24:05.This will be the last Budget where a UK chancellor sets out income tax
:24:06. > :24:09.rates and thresholds for Scottish earners, the changes to the income
:24:10. > :24:13.tax personal allowance will benefit 2.6 million taxpayers in Scotland.
:24:14. > :24:17.The Budget delivers on our plans to build a stroker economy as part of
:24:18. > :24:22.the UK, but the next generation first.
:24:23. > :24:25.Thank you, Mr Speaker. I congratulate the minister on finding
:24:26. > :24:30.the Chancellor to have those discussions!
:24:31. > :24:37.Earlier this week, we thought he gone walk-about. The Budget had ?1
:24:38. > :24:43.billion of cuts to the Scottish Budget and ?650 million of cuts to
:24:44. > :24:47.the English NHS. Does he think he might persuade the Chancellor to
:24:48. > :24:51.reverse Scotland's cuts and put in a good word for the English NHS as
:24:52. > :24:58.well? Can I just remind the House that
:24:59. > :25:01.there were three asks coming from the SNP, freezing whisky duty and
:25:02. > :25:11.freezing fuel duty and helping the oil and gas industry. That's exactly
:25:12. > :25:17.what the Chancellor delivered. Thank you, Mr Speaker. Can I ask the
:25:18. > :25:22.Secretary of State for Scotland did they discuss with the Chancellor the
:25:23. > :25:27.merits of a corporation tax cut, a ?6 billion capital gains and
:25:28. > :25:30.inheritance tax versus the ?4 billion cut to the disabled and how
:25:31. > :25:37.that would affect the people of Scotland or did he sit there and...
:25:38. > :25:41.Can I remind the honourable gentleman that there are 73,000
:25:42. > :25:45.businesses in Scotland that will benefit from a cut in corporation
:25:46. > :25:50.tax. As he is he saying he opposes that?
:25:51. > :25:52.THE SPEAKER: Order. Questions to the Prime Minister.
:25:53. > :25:55.Sir Peter Bottomley.