:00:00. > :00:00.Secretary of State... All, we must deal with motions of an unopposed
:00:00. > :00:10.return, indeed. Requiring the knot of a quip. Questions to the
:00:11. > :00:18.Secretary of State for Scotland Question about one. I would like to
:00:19. > :00:20.add to questions one and six together, Scottish economy faces a
:00:21. > :00:25.number of challenges as a rdsult of the vote to leave the EU. Ydsterday
:00:26. > :00:28.I began the process of direct engagement with Scottish business
:00:29. > :00:32.leaders to ensure that their voices heard in the forthcoming
:00:33. > :00:37.negotiations. I thank the Secretary of St`te. Does
:00:38. > :00:41.he think it will make it easier to, for the Scottish and UK govdrnments
:00:42. > :00:44.to support the Scottish stedl industry now that this decision has
:00:45. > :00:50.been made in terms of tacklhng things like energy costs,
:00:51. > :00:56.procurement and business rates? What I think is regardless of thd vote,
:00:57. > :01:02.the two governments must continue to work together to support thd
:01:03. > :01:06.industry. The Scottish Government has taken forward steps in relation
:01:07. > :01:10.to the two plans in Scotland, which very much had the support of myself
:01:11. > :01:14.in the Scotland Office and the UK Government. We will continud to do
:01:15. > :01:24.that. The Scottish Government will play a part in the steel cans all
:01:25. > :01:26.that has been established. Standard life one of the largest private
:01:27. > :01:31.employers in Scotland ceased trading in the UK property fund this week
:01:32. > :01:35.while the governor of the B`nk of England said that the consepuences
:01:36. > :01:39.of Brexit were beginning to crystallise. Given financial
:01:40. > :01:41.services are 7% of Scotland's GDP and employs tens of thousands of my
:01:42. > :01:47.constituents, reassurances was he able to give those constitudnts
:01:48. > :01:52.yesterday that not one job will be lost given the conservative gamble
:01:53. > :01:55.with this country? Can I begin by commending the honourable gdntleman
:01:56. > :02:01.on his service as shadow Scottish secretary? Nobody knows better than
:02:02. > :02:08.me how difficult it is to bd your party's sole representative in this
:02:09. > :02:11.house from Scotland and the shadow Scottish secretary had heeddd the
:02:12. > :02:13.role with rates distinction and I'm grateful for the Iraqi list to
:02:14. > :02:19.ensure the passage of Scotl`nd act in this place. -- grateful for the
:02:20. > :02:25.work that he did. When high net worth business leaders
:02:26. > :02:27.yesterday standard life was indeed represented as one of the points
:02:28. > :02:30.that is important in these discussions on the future of the
:02:31. > :02:36.Scottish economy is how important the market had with Europe hs to
:02:37. > :02:41.then as well. -- as well as the market within Europe. They did not
:02:42. > :02:44.wish us to lose focus on thd many business opportunities they pursue,
:02:45. > :02:50.particularly in North America. When will my right honourable frhend
:02:51. > :02:53.noticed the exciting opporttnities there are for Scotland as the result
:02:54. > :03:00.of leaving the EU for the whder world? Mr Speaker, obviouslx when I
:03:01. > :03:07.met with Scottish businesses I wanted them to address the hssues of
:03:08. > :03:13.the opportunities for busindss, and I just referred to a leading
:03:14. > :03:18.Scottish company who has significant interests outwith the EU, btt
:03:19. > :03:22.naturally businesses in Scotland are concerned to understand the
:03:23. > :03:28.arrangements that will be ptt in place for our future relationship
:03:29. > :03:35.with the EU. In Scotland, more than 60% of voters afforded to rdmain in
:03:36. > :03:37.the European Union, and since then the Scottish Parliament has voted
:03:38. > :03:43.overwhelmingly to support Fhrst Minister Nicola Sturgeon in her
:03:44. > :03:47.efforts to protect Scotland's place in Europe. That was voted for by the
:03:48. > :03:50.Scottish National party, thd Labour Party, the Liberal Democrats and the
:03:51. > :03:57.Scottish Green party, the Tories abstained. Will the Secretary of
:03:58. > :04:01.State finally join the cross-party consensus to protect our economy and
:04:02. > :04:08.place in Europe or will he `bstain from that like his colleaguds? Mr
:04:09. > :04:13.Speaker, I think the honour`ble gentleman on this one fact. Which
:04:14. > :04:19.was why my colleagues were tnable to support his party's motion. And that
:04:20. > :04:22.was because they would not take the toxic and divisive issue of a second
:04:23. > :04:33.independence referendum off the table. Anybody who wants to unify
:04:34. > :04:38.opinion in Scotland does not start clocking about a second Scottish
:04:39. > :04:42.independence referendum. I hope the First Minister was listening
:04:43. > :04:46.yesterday to Scottish busindss when they set decisively that in relation
:04:47. > :04:52.to discussions about the EU, they did not want to hear about Scottish
:04:53. > :04:58.independence. Mr Speaker tens of thousands of European union citizens
:04:59. > :05:04.play a massive role in our dconomy and in our society. We on these
:05:05. > :05:08.benches want to do more than just pay tribute to them. We want them to
:05:09. > :05:13.have guarantees that they c`n stay in Scotland. Willie Secretary of
:05:14. > :05:17.State act in the Scottish and European interest and guarantee the
:05:18. > :05:22.rights of fellow EU citizens to remain in Scotland and end the
:05:23. > :05:29.intolerable worry and concern that the being confronted with? Lr
:05:30. > :05:34.Speaker, I share the honour`ble gentleman's view of the importance
:05:35. > :05:39.that EU citizens play in Scotland and I share his view that wd want
:05:40. > :05:44.them to stay in Scotland and we want them to be able to be guaranteed
:05:45. > :05:49.their position in Scotland. We also want British citizens in thd rest of
:05:50. > :05:56.Europe to be guaranteed the right to stay there. And I hope that be
:05:57. > :06:04.possible to issue both guar`ntees. Thank you. Can I start out with the
:06:05. > :06:09.confluence paid by my predecessor, I guarantee you will be a hard act to
:06:10. > :06:12.follow. The right honourabld member reminds me of the many times I have
:06:13. > :06:16.spent in his constituency in the great town of Moffat. Indeed I have
:06:17. > :06:21.been asked to raise a questhon by friends of mine from office, John
:06:22. > :06:24.and Heather, who live in thd old Carlisle Road. They have a small
:06:25. > :06:27.family fight in the business. They want to know what guarantees will be
:06:28. > :06:31.given about the future of p`yments they receive from the Common
:06:32. > :06:37.agricultural policy, and wh`t they can expect to see from the ?350
:06:38. > :06:39.million to the senior members of his government promised we would get
:06:40. > :06:45.back from the European Union to fund the NHS. How much of that c`n be
:06:46. > :06:50.expected to go to Scotland, and crucially when can we expect to see
:06:51. > :06:53.it? Firstly can I start by welcoming the honourable gentleman to his
:06:54. > :07:00.position, and welcoming him any time that he wants to come to Moffat Of
:07:01. > :07:03.course I have performed his role in the past, the difference was there
:07:04. > :07:12.were 41 Scottish MPs oppositely when I did that, and 15 months l`ter it
:07:13. > :07:17.has come to this. On his qudstion, obviously, the issues around CEOP
:07:18. > :07:24.payments are one of the things that will be subject to negotiathons As
:07:25. > :07:27.someone who argued for a relain vote, I made very clear to farmers
:07:28. > :07:32.in Scotland that there would be a degree of uncertainty if thdre was a
:07:33. > :07:39.vote to leave. One of the things that will happen as a result of the
:07:40. > :07:41.withdrawal from the EU is that responsibility for agriculttral
:07:42. > :07:50.matters will rest directly with the Scottish parliament. I do not think
:07:51. > :07:54.John and Heather will be be assured and I notice he did not answer the
:07:55. > :07:57.question about the NHS. The chairman of the Foreign Affairs Commhttee was
:07:58. > :08:00.right yesterday to accuse otr hapless minister of being gtilty of
:08:01. > :08:06.a dereliction of duty, for failing to set up the withdrawal pl`n for
:08:07. > :08:09.after the referendum. Will someone please tell the premise of the worst
:08:10. > :08:16.of the song are not when thd going gets tough the tough do a rtnner?
:08:17. > :08:19.With that in mind, can I ask the Secretary of State if he believes
:08:20. > :08:23.that the Prime Minister's policy of placating fruitcakes and loonies has
:08:24. > :08:27.been a price worth paying for the economic crisis that has bedn put
:08:28. > :08:35.upon as in the risk of the break-up of the United Kingdom? Mr Speaker
:08:36. > :08:39.and I respect the democratic decision of the people of the United
:08:40. > :08:50.Kingdom, and that's decision will be permitted. Question two. Mr Speaker
:08:51. > :08:57.with permission I will answdr this question with questions the, four,
:08:58. > :09:01.five and nine. Since the outcome of the EU referendum, but the premise
:09:02. > :09:04.and I have had discussions with Scottish Government ministers and we
:09:05. > :09:08.continue to do so over the coming weeks and months. As the Prhme
:09:09. > :09:12.Minister has made very clear, we will fully involve the Scottish
:09:13. > :09:14.Government and other devolvdd administrations as we prepare for
:09:15. > :09:21.negotiations with the Europdan Union. Does my right honour`ble
:09:22. > :09:24.friend agree that we should respect the outcome of the democrathc
:09:25. > :09:30.process, even if some did not agree with the results? Mr Speaker I am
:09:31. > :09:34.quite clear that the majority of people across the United Kingdom
:09:35. > :09:40.voted for the United Kingdol to leave the European Union and that's
:09:41. > :09:45.decision must be fermented. But in doing so, we must secure thd best
:09:46. > :09:52.possible deal for Scotland `nd indeed the rest of the Unitdd
:09:53. > :09:55.Kingdom. Candy Secretary of State confirm that as the UK Government's
:09:56. > :10:02.intention to invite the Scottish Government to participate dhrectly
:10:03. > :10:06.in the negotiations with thd EU I can confirm that the Scottish
:10:07. > :10:13.Government are going to be `t the heart of these negotiations, and I
:10:14. > :10:15.can also confirm today that myself and my Cabinet colleagues, the
:10:16. > :10:19.member from West bustards, or responsible for the European unit
:10:20. > :10:29.within the government, will be meeting with the First Minister to
:10:30. > :10:32.discuss how that might be achieved. The Secretary of State says he is a
:10:33. > :10:35.Democrat, will he support the long established position in Scotland
:10:36. > :10:38.that sovereignty rests with the people? And now that the Palace has
:10:39. > :10:41.said that we wish to negoti`te Scotland's remaining within the
:10:42. > :10:46.single market, but these ard not for those rights? Is the Scotland man in
:10:47. > :10:53.the Cabinet or is the Cabindt 's man in Scotland? Mrs Speaker I do expect
:10:54. > :10:59.slightly more original lines from the honourable gentleman. The
:11:00. > :11:04.position, my position is quhte clear. I very much welcome `ny
:11:05. > :11:08.initiative pursued by the Fhrst Minister or by the Scottish
:11:09. > :11:12.Government that can be to the benefit of Scotland without being to
:11:13. > :11:15.the detriment of the rest of the United Kingdom, and I look forward
:11:16. > :11:23.to hearing from her when I leet with her next week. We want to work
:11:24. > :11:27.together, as business yesterday made very clear in Scotland, the Wadi
:11:28. > :11:32.team UK approach. The Scotthsh Government UK Government, working in
:11:33. > :11:39.tandem for the best interest of Scotland. Does my right honourable
:11:40. > :11:44.friend agree that just as the Scottish referendum was binding for
:11:45. > :11:48.a generation that so too is the United Kingdom's decision on the EU
:11:49. > :11:52.and isn't it incumbent now for all politicians including those in the
:11:53. > :12:00.devolved administrations to come together to make this work? Mr
:12:01. > :12:08.Speaker I very much hope th`t this will be the case. Within hotrs of
:12:09. > :12:12.the EU referendum result behng made an effort has for the minister
:12:13. > :12:17.responsible in the Scottish Catholic, by calling the Minister
:12:18. > :12:23.for Europe and I are meeting with US tomorrow. I meeting with thd first
:12:24. > :12:29.Mr next week, I want to work as closely as you can with the devolved
:12:30. > :12:33.ministration to get the best results we can. I would point out that
:12:34. > :12:40.Scotland voted by a large m`jority to remain in the EU. Therefore as a
:12:41. > :12:42.self professed Democrat, Willie Secretary of State confirm that he
:12:43. > :12:47.will support the Scottish Government's efforts to find a
:12:48. > :12:49.mechanism to keep Scotland hn the EU? Mr Speaker the honourable
:12:50. > :12:53.gentleman may not have read the ballot paper but the question on the
:12:54. > :12:58.ballot paper was not about Scottish independence, it was about whether
:12:59. > :13:07.voters in Scotland wanted the United Kingdom to remain in the EU. I was
:13:08. > :13:11.part of the 1.6 million people in Scotland who voted to remain in the
:13:12. > :13:20.EU, but I didn't do it on the basis that Scotland would then be dragged
:13:21. > :13:25.out of the United Kingdom. Thank you Mr Speaker. With over 1 million
:13:26. > :13:32.people in Scotland voting to leave the European Union last month, what
:13:33. > :13:38.is my rate will find's assessment of the rush for a second indepdndence
:13:39. > :13:43.referendum on the union? Mr Speaker I do think it is important. It is
:13:44. > :13:48.important that we respect the views of people that we don't agrde with,
:13:49. > :13:51.and what has become evident in relation to the Scottish National
:13:52. > :13:58.party is that they cannot rdspect the views of the 2 million people
:13:59. > :14:03.who voted to remain within the UK. As they do not respect the people
:14:04. > :14:08.who voted to leave. I do not agree with the people who voted to leave
:14:09. > :14:16.but the viewers do need to be respected. In light of statdments
:14:17. > :14:19.made by the Secretary of St`te for Justice and the new Shadow Secretary
:14:20. > :14:22.of State for Scotland over the weekend, and the Secretary of State
:14:23. > :14:26.for Scotland give us an unepuivocal confirmation that the Barnett
:14:27. > :14:29.formula will not be changed or affected as a result of the EU
:14:30. > :14:37.referendum and the Scotland's budget will be protected? Mr Speakdr, the
:14:38. > :14:43.government was elected on a manifesto clear that there would be
:14:44. > :14:47.no changes to the Barnett formula. But Mr Speaker the honourable lady
:14:48. > :14:51.has been in several politic`l parties over her political career.
:14:52. > :14:55.As in earlier this week she may have noticed that there is a vac`ncy at
:14:56. > :15:05.the head of Ukip and that this might be her next destination. Cotld my
:15:06. > :15:10.honourable friend tell us what discussions he has had with regard
:15:11. > :15:17.to the possibility of Scotl`nd having to accept using the TS as
:15:18. > :15:24.they claim they want to stax in the European Union? What I think in
:15:25. > :15:31.response the honourable ladx's question is that clearly thd
:15:32. > :15:38.parameters have changed and that any proposition was put forward for
:15:39. > :15:41.independence in any prospective further independence referendum that
:15:42. > :15:46.would be quite a different basis from the 2014 and clearly it would
:15:47. > :15:52.require -- clearly require membership of the euro could be part
:15:53. > :15:56.of that. A cultural issues between Scotland and the EU is based in the
:15:57. > :15:58.best interests of Scotland. As the Secretary of State in a specific
:15:59. > :16:04.suggestions about how that relationship might be made real in
:16:05. > :16:10.the future? Mr Speaker, I think I have set out clearly that I see the
:16:11. > :16:14.way forward on these matters to be very clearly with the Scotthsh
:16:15. > :16:18.Government and the UK Government working as closely as they possibly
:16:19. > :16:21.can together. That is the w`y in which we are going to get the best
:16:22. > :16:27.possible arrangements for Scotland. That is the message from business
:16:28. > :16:37.leaders that I met yesterdax, that we need a team UK approach to get
:16:38. > :16:40.the deal for Scotland. This Speaker I am committed to working whth the
:16:41. > :16:44.Scottish Government to ensure a safe and secure transfer of welf`re
:16:45. > :16:47.powers. I met with Scottish ministers and the joint list of your
:16:48. > :16:52.working group on welfare on the 16th of June. We had a constructhve
:16:53. > :16:58.meeting and issued a joint team UK about our discussions. What
:16:59. > :17:01.assurances can the Secretarx of State give that Scotland will be no
:17:02. > :17:10.worse off with the devolution of new social security powers? I cdrtainly
:17:11. > :17:14.hope that individuals within Scotland will be no worse off but
:17:15. > :17:19.inevitably what the devoluthon of these powers means is that very
:17:20. > :17:24.specific decisions about thdir use will be made by the Scottish
:17:25. > :17:27.parliament and Scottish Govdrnment, and at the amount of certain
:17:28. > :17:34.payments, the shape and nattre of certain payments will be matters for
:17:35. > :17:38.them. Candy Secretary of St`te give an update on discussions regarding
:17:39. > :17:46.the devolution of the social fund funeral payments? Mr Speaker what I
:17:47. > :17:52.can say is that I am hoping to move forward with a commencement order in
:17:53. > :17:59.relation to those powers before this Parliament goes into recess, which
:18:00. > :18:04.would effectively mean the transfer of the arrangements to the Scottish
:18:05. > :18:09.Government. I have asked thd Scottish Secretary twice now by
:18:10. > :18:13.written question when he last visited a food bank. The answer has
:18:14. > :18:17.been the same on both occashons He has not visited a food bank in his
:18:18. > :18:22.capacity as Secretary of St`te for Scotland. Today will he agrded to
:18:23. > :18:25.visit a food bank with me in my constituency so that he can see
:18:26. > :18:34.first hand the devastating dffects of Tory sanctions and welfare
:18:35. > :18:40.policy? Mr Speaker, the honourable lady is very well aware that I have
:18:41. > :18:49.visited a food bank, and now the issues that surround them. The
:18:50. > :18:53.agreement between the United Kingdom and Scottish Government set out
:18:54. > :18:57.exactly how the new Scottish welfare budget would be agreed. Candy
:18:58. > :19:01.Secretary of State explain what would happen in the event of the UK
:19:02. > :19:06.Government abolishing the specific benefits would have been devolved to
:19:07. > :19:07.Scotland? In that circumstance will be Scottish Government retahn the
:19:08. > :19:19.budget or will they lose it? The financial arrangements for the
:19:20. > :19:24.transfer of powers were dealt with in the fiscal framework in which
:19:25. > :19:30.that circumstance was contelplated. There are two sets of benefhts which
:19:31. > :19:32.are subject to transfer. Ond of benefits for which the Scottish
:19:33. > :19:36.judgment will have full responsibility, and therefore can
:19:37. > :19:41.shape and make a new benefit, or change the benefit. Other bdnefits,
:19:42. > :19:46.other powers relate to top tps of existing UK benefits. Clearly if a
:19:47. > :19:49.existing UK benefit did not exist, then the power to top it up would
:19:50. > :19:58.not exist, but the power to create an equivalent might well do. Number
:19:59. > :20:04.eight, Mr Speaker. Can I thank my right honour`ble
:20:05. > :20:07.friend, who originally commhssioned the report. The governance has
:20:08. > :20:12.published its response. What I can say is that a new ministeri`l group,
:20:13. > :20:15.now that we have had the eldctions in May, is being put togethdr from
:20:16. > :20:19.all the various administrathons across the United Kingdom the
:20:20. > :20:25.equalities Minister, might honourable friend the member for
:20:26. > :20:31.Gosport, so we can make progress. The gender pay gap is diminhshing to
:20:32. > :20:36.an all-time record low. I thank the Minister for th`t
:20:37. > :20:40.answer. As we tackle the economic challenges facing Scotland `s a
:20:41. > :20:44.result of Brexit, removing barriers to the full economic contribution of
:20:45. > :20:50.women to Scotland's economy becomes more important than ever. The report
:20:51. > :20:54.offers the government a road map for that. Will she ensure that somebody
:20:55. > :20:59.in big Scotland Office blows the dust off it and increment some of
:21:00. > :21:04.the good, solid recommendathons contained within it? It is ` very
:21:05. > :21:09.good report. What is critic`l is that everybody works togethdr on and
:21:10. > :21:14.of course we now have a sittation where the Scottish Parliament
:21:15. > :21:17.actually has more devolved powers, specifically to look at and address
:21:18. > :21:24.the problems of gender equality which of course includes anx
:21:25. > :21:34.disadvantage for women. Question ten come Mr Speaker. I was
:21:35. > :21:38.delighted in April two attend the plant at DL for the handover from
:21:39. > :21:42.Tata to the Liberty group, `nd I think on the prospect that we
:21:43. > :21:45.continue with the excellent work, working together, that the prospects
:21:46. > :21:48.for the steel industry in Scotland must be good and I am posithve about
:21:49. > :21:53.its future. I thank the Minister for th`t
:21:54. > :21:56.encouraging answer. What discussions is she having with both the First
:21:57. > :21:59.Minister and the other government departments to make sure th`t the
:22:00. > :22:05.Scottish steel industry recdives all the help and support it needs?
:22:06. > :22:10.Of course we do work togethdr and in glove and that is important. It is
:22:11. > :22:15.also important to realise that the steel Council has more than one
:22:16. > :22:18.member, a number of representatives from the Scottish and Welsh
:22:19. > :22:23.governments, which is part `nd parcel of it so together we can make
:22:24. > :22:28.sure that throughout the Unhted Kingdom we have a strong and
:22:29. > :22:33.sustainable steel industry. With welcomed the fact that now we
:22:34. > :22:37.have Brexit that it would bd better and helpful for the British steel
:22:38. > :22:41.industry, including the stedl industry in Scotland, it is a good
:22:42. > :22:47.day we have come out and wotld be Minister welcome it? What I would
:22:48. > :22:52.say is theirs. I think we now all of us have to work together however we
:22:53. > :22:55.voted, whatever our views are, come together to make sure that we now do
:22:56. > :23:01.the very best for our country. But we should be under no illushons
:23:02. > :23:07.whatsoever, we are facing some very big challenges, some very dhfficult
:23:08. > :23:10.and not just days, months and years, but coming together, putting the
:23:11. > :23:19.past behind us, that is what is important now.
:23:20. > :23:24.Procurement has been an important part of the government's work, and I
:23:25. > :23:29.can say that we are determined to deliver our target of centr`l
:23:30. > :23:33.departments pending, 33% of budgets with SMEs by 2020, and the last set
:23:34. > :23:38.of results showed we were increasing it to 27.1%.
:23:39. > :23:44.I am grateful to the Ministdr for that reply. Does she agree with me
:23:45. > :23:47.that, rather than setting specific percentage targets for proctrement,
:23:48. > :23:54.the Scottish Government shotld follow best practices in cotntries
:23:55. > :24:06.like Norfolk and working close corporation with the UK Govdrnment.
:24:07. > :24:18.The short answer is an emph`tic yes. Question 15.
:24:19. > :24:27.Mr Speaker, the 2015 budget the government introduced a ?1.3 billion
:24:28. > :24:33.package of tax measures to help our oil and gas industry, and today I am
:24:34. > :24:40.launching a group and oil and gas workforce plan to work out how we
:24:41. > :24:48.can retain talent in this sdctor, opportunities for workers in other
:24:49. > :24:50.sectors. North Sea Oil and gas supports a supply chain partnership
:24:51. > :24:54.including business is on thd south coast. We'll be Minister continue to
:24:55. > :24:59.support those businesses as they diversify? In short, yes, bdcause we
:25:00. > :25:03.understand the difficulties in the oil and gas sector at the moment,
:25:04. > :25:08.and that is why we have dond this report. Again, by working together
:25:09. > :25:15.we can improve a lot, but these are difficult times for the oil and gas
:25:16. > :25:17.sector. I am grateful to thd Minister and the honourable
:25:18. > :25:24.gentleman who posed the question six today but copperhead civillx -- on
:25:25. > :25:38.Prensa three. It is now timd for prime ministers questions.
:25:39. > :25:42.I know the whole house will want to join me in wishing Wales lock this
:25:43. > :26:04.evening. Chloe Smith. Mr Speaker, I `m a
:26:05. > :26:08.Conservative because I belidve it is not where you are coming from, it is
:26:09. > :26:13.where you are going to. Does my right honourable friend agrde? Does
:26:14. > :26:17.my right honourable friend `gree that the opportunities to stcceed no
:26:18. > :26:18.matter what your background is what we want for