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Secretary of State... All, we must deal with motions of an unopposed

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return, indeed. Requiring the knot of a quip. Questions to the

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Secretary of State for Scotland Question about one. I would like to

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add to questions one and six together, Scottish economy faces a

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number of challenges as a rdsult of the vote to leave the EU. Ydsterday

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I began the process of direct engagement with Scottish business

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leaders to ensure that their voices heard in the forthcoming

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negotiations. I thank the Secretary of St`te. Does

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he think it will make it easier to, for the Scottish and UK govdrnments

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to support the Scottish stedl industry now that this decision has

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been made in terms of tacklhng things like energy costs,

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procurement and business rates? What I think is regardless of thd vote,

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the two governments must continue to work together to support thd

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industry. The Scottish Government has taken forward steps in relation

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to the two plans in Scotland, which very much had the support of myself

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in the Scotland Office and the UK Government. We will continud to do

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that. The Scottish Government will play a part in the steel cans all

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that has been established. Standard life one of the largest private

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employers in Scotland ceased trading in the UK property fund this week

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while the governor of the B`nk of England said that the consepuences

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of Brexit were beginning to crystallise. Given financial

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services are 7% of Scotland's GDP and employs tens of thousands of my

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constituents, reassurances was he able to give those constitudnts

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yesterday that not one job will be lost given the conservative gamble

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with this country? Can I begin by commending the honourable gdntleman

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on his service as shadow Scottish secretary? Nobody knows better than

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me how difficult it is to bd your party's sole representative in this

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house from Scotland and the shadow Scottish secretary had heeddd the

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role with rates distinction and I'm grateful for the Iraqi list to

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ensure the passage of Scotl`nd act in this place. -- grateful for the

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work that he did. When high net worth business leaders

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yesterday standard life was indeed represented as one of the points

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that is important in these discussions on the future of the

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Scottish economy is how important the market had with Europe hs to

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then as well. -- as well as the market within Europe. They did not

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wish us to lose focus on thd many business opportunities they pursue,

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particularly in North America. When will my right honourable frhend

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noticed the exciting opporttnities there are for Scotland as the result

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of leaving the EU for the whder world? Mr Speaker, obviouslx when I

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met with Scottish businesses I wanted them to address the hssues of

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the opportunities for busindss, and I just referred to a leading

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Scottish company who has significant interests outwith the EU, btt

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naturally businesses in Scotland are concerned to understand the

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arrangements that will be ptt in place for our future relationship

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with the EU. In Scotland, more than 60% of voters afforded to rdmain in

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the European Union, and since then the Scottish Parliament has voted

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overwhelmingly to support Fhrst Minister Nicola Sturgeon in her

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efforts to protect Scotland's place in Europe. That was voted for by the

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Scottish National party, thd Labour Party, the Liberal Democrats and the

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Scottish Green party, the Tories abstained. Will the Secretary of

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State finally join the cross-party consensus to protect our economy and

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place in Europe or will he `bstain from that like his colleaguds? Mr

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Speaker, I think the honour`ble gentleman on this one fact. Which

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was why my colleagues were tnable to support his party's motion. And that

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was because they would not take the toxic and divisive issue of a second

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independence referendum off the table. Anybody who wants to unify

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opinion in Scotland does not start clocking about a second Scottish

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independence referendum. I hope the First Minister was listening

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yesterday to Scottish busindss when they set decisively that in relation

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to discussions about the EU, they did not want to hear about Scottish

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independence. Mr Speaker tens of thousands of European union citizens

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play a massive role in our dconomy and in our society. We on these

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benches want to do more than just pay tribute to them. We want them to

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have guarantees that they c`n stay in Scotland. Willie Secretary of

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State act in the Scottish and European interest and guarantee the

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rights of fellow EU citizens to remain in Scotland and end the

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intolerable worry and concern that the being confronted with? Lr

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Speaker, I share the honour`ble gentleman's view of the importance

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that EU citizens play in Scotland and I share his view that wd want

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them to stay in Scotland and we want them to be able to be guaranteed

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their position in Scotland. We also want British citizens in thd rest of

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Europe to be guaranteed the right to stay there. And I hope that be

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possible to issue both guar`ntees. Thank you. Can I start out with the

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confluence paid by my predecessor, I guarantee you will be a hard act to

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follow. The right honourabld member reminds me of the many times I have

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spent in his constituency in the great town of Moffat. Indeed I have

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been asked to raise a questhon by friends of mine from office, John

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and Heather, who live in thd old Carlisle Road. They have a small

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family fight in the business. They want to know what guarantees will be

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given about the future of p`yments they receive from the Common

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agricultural policy, and wh`t they can expect to see from the ?350

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million to the senior members of his government promised we would get

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back from the European Union to fund the NHS. How much of that c`n be

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expected to go to Scotland, and crucially when can we expect to see

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it? Firstly can I start by welcoming the honourable gentleman to his

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position, and welcoming him any time that he wants to come to Moffat Of

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course I have performed his role in the past, the difference was there

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were 41 Scottish MPs oppositely when I did that, and 15 months l`ter it

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has come to this. On his qudstion, obviously, the issues around CEOP

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payments are one of the things that will be subject to negotiathons As

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someone who argued for a relain vote, I made very clear to farmers

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in Scotland that there would be a degree of uncertainty if thdre was a

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vote to leave. One of the things that will happen as a result of the

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withdrawal from the EU is that responsibility for agriculttral

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matters will rest directly with the Scottish parliament. I do not think

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John and Heather will be be assured and I notice he did not answer the

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question about the NHS. The chairman of the Foreign Affairs Commhttee was

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right yesterday to accuse otr hapless minister of being gtilty of

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a dereliction of duty, for failing to set up the withdrawal pl`n for

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after the referendum. Will someone please tell the premise of the worst

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of the song are not when thd going gets tough the tough do a rtnner?

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With that in mind, can I ask the Secretary of State if he believes

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that the Prime Minister's policy of placating fruitcakes and loonies has

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been a price worth paying for the economic crisis that has bedn put

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upon as in the risk of the break-up of the United Kingdom? Mr Speaker

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and I respect the democratic decision of the people of the United

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Kingdom, and that's decision will be permitted. Question two. Mr Speaker

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with permission I will answdr this question with questions the, four,

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five and nine. Since the outcome of the EU referendum, but the premise

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and I have had discussions with Scottish Government ministers and we

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continue to do so over the coming weeks and months. As the Prhme

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Minister has made very clear, we will fully involve the Scottish

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Government and other devolvdd administrations as we prepare for

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negotiations with the Europdan Union. Does my right honour`ble

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friend agree that we should respect the outcome of the democrathc

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process, even if some did not agree with the results? Mr Speaker I am

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quite clear that the majority of people across the United Kingdom

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voted for the United Kingdol to leave the European Union and that's

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decision must be fermented. But in doing so, we must secure thd best

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possible deal for Scotland `nd indeed the rest of the Unitdd

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Kingdom. Candy Secretary of State confirm that as the UK Government's

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intention to invite the Scottish Government to participate dhrectly

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in the negotiations with thd EU I can confirm that the Scottish

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Government are going to be `t the heart of these negotiations, and I

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can also confirm today that myself and my Cabinet colleagues, the

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member from West bustards, or responsible for the European unit

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within the government, will be meeting with the First Minister to

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discuss how that might be achieved. The Secretary of State says he is a

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Democrat, will he support the long established position in Scotland

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that sovereignty rests with the people? And now that the Palace has

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said that we wish to negoti`te Scotland's remaining within the

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single market, but these ard not for those rights? Is the Scotland man in

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the Cabinet or is the Cabindt 's man in Scotland? Mrs Speaker I do expect

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slightly more original lines from the honourable gentleman. The

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position, my position is quhte clear. I very much welcome `ny

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initiative pursued by the Fhrst Minister or by the Scottish

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Government that can be to the benefit of Scotland without being to

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the detriment of the rest of the United Kingdom, and I look forward

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to hearing from her when I leet with her next week. We want to work

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together, as business yesterday made very clear in Scotland, the Wadi

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team UK approach. The Scotthsh Government UK Government, working in

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tandem for the best interest of Scotland. Does my right honourable

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friend agree that just as the Scottish referendum was binding for

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a generation that so too is the United Kingdom's decision on the EU

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and isn't it incumbent now for all politicians including those in the

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devolved administrations to come together to make this work? Mr

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Speaker I very much hope th`t this will be the case. Within hotrs of

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the EU referendum result behng made an effort has for the minister

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responsible in the Scottish Catholic, by calling the Minister

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for Europe and I are meeting with US tomorrow. I meeting with thd first

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Mr next week, I want to work as closely as you can with the devolved

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ministration to get the best results we can. I would point out that

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Scotland voted by a large m`jority to remain in the EU. Therefore as a

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self professed Democrat, Willie Secretary of State confirm that he

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will support the Scottish Government's efforts to find a

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mechanism to keep Scotland hn the EU? Mr Speaker the honourable

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gentleman may not have read the ballot paper but the question on the

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ballot paper was not about Scottish independence, it was about whether

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voters in Scotland wanted the United Kingdom to remain in the EU. I was

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part of the 1.6 million people in Scotland who voted to remain in the

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EU, but I didn't do it on the basis that Scotland would then be dragged

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out of the United Kingdom. Thank you Mr Speaker. With over 1 million

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people in Scotland voting to leave the European Union last month, what

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is my rate will find's assessment of the rush for a second indepdndence

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referendum on the union? Mr Speaker I do think it is important. It is

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important that we respect the views of people that we don't agrde with,

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and what has become evident in relation to the Scottish National

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party is that they cannot rdspect the views of the 2 million people

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who voted to remain within the UK. As they do not respect the people

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who voted to leave. I do not agree with the people who voted to leave

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but the viewers do need to be respected. In light of statdments

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made by the Secretary of St`te for Justice and the new Shadow Secretary

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of State for Scotland over the weekend, and the Secretary of State

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for Scotland give us an unepuivocal confirmation that the Barnett

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formula will not be changed or affected as a result of the EU

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referendum and the Scotland's budget will be protected? Mr Speakdr, the

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government was elected on a manifesto clear that there would be

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no changes to the Barnett formula. But Mr Speaker the honourable lady

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has been in several politic`l parties over her political career.

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As in earlier this week she may have noticed that there is a vac`ncy at

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the head of Ukip and that this might be her next destination. Cotld my

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honourable friend tell us what discussions he has had with regard

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to the possibility of Scotl`nd having to accept using the TS as

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they claim they want to stax in the European Union? What I think in

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response the honourable ladx's question is that clearly thd

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parameters have changed and that any proposition was put forward for

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independence in any prospective further independence referendum that

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would be quite a different basis from the 2014 and clearly it would

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require -- clearly require membership of the euro could be part

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of that. A cultural issues between Scotland and the EU is based in the

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best interests of Scotland. As the Secretary of State in a specific

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suggestions about how that relationship might be made real in

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the future? Mr Speaker, I think I have set out clearly that I see the

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way forward on these matters to be very clearly with the Scotthsh

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Government and the UK Government working as closely as they possibly

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can together. That is the w`y in which we are going to get the best

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possible arrangements for Scotland. That is the message from business

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leaders that I met yesterdax, that we need a team UK approach to get

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the deal for Scotland. This Speaker I am committed to working whth the

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Scottish Government to ensure a safe and secure transfer of welf`re

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powers. I met with Scottish ministers and the joint list of your

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working group on welfare on the 16th of June. We had a constructhve

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meeting and issued a joint team UK about our discussions. What

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assurances can the Secretarx of State give that Scotland will be no

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worse off with the devolution of new social security powers? I cdrtainly

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hope that individuals within Scotland will be no worse off but

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inevitably what the devoluthon of these powers means is that very

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specific decisions about thdir use will be made by the Scottish

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parliament and Scottish Govdrnment, and at the amount of certain

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payments, the shape and nattre of certain payments will be matters for

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them. Candy Secretary of St`te give an update on discussions regarding

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the devolution of the social fund funeral payments? Mr Speaker what I

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can say is that I am hoping to move forward with a commencement order in

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relation to those powers before this Parliament goes into recess, which

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would effectively mean the transfer of the arrangements to the Scottish

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Government. I have asked thd Scottish Secretary twice now by

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written question when he last visited a food bank. The answer has

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been the same on both occashons He has not visited a food bank in his

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capacity as Secretary of St`te for Scotland. Today will he agrded to

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visit a food bank with me in my constituency so that he can see

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first hand the devastating dffects of Tory sanctions and welfare

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policy? Mr Speaker, the honourable lady is very well aware that I have

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visited a food bank, and now the issues that surround them. The

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agreement between the United Kingdom and Scottish Government set out

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exactly how the new Scottish welfare budget would be agreed. Candy

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Secretary of State explain what would happen in the event of the UK

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Government abolishing the specific benefits would have been devolved to

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Scotland? In that circumstance will be Scottish Government retahn the

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budget or will they lose it? The financial arrangements for the

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transfer of powers were dealt with in the fiscal framework in which

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that circumstance was contelplated. There are two sets of benefhts which

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are subject to transfer. Ond of benefits for which the Scottish

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judgment will have full responsibility, and therefore can

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shape and make a new benefit, or change the benefit. Other bdnefits,

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other powers relate to top tps of existing UK benefits. Clearly if a

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existing UK benefit did not exist, then the power to top it up would

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not exist, but the power to create an equivalent might well do. Number

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eight, Mr Speaker. Can I thank my right honour`ble

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friend, who originally commhssioned the report. The governance has

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published its response. What I can say is that a new ministeri`l group,

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now that we have had the eldctions in May, is being put togethdr from

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all the various administrathons across the United Kingdom the

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equalities Minister, might honourable friend the member for

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Gosport, so we can make progress. The gender pay gap is diminhshing to

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an all-time record low. I thank the Minister for th`t

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answer. As we tackle the economic challenges facing Scotland `s a

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result of Brexit, removing barriers to the full economic contribution of

:20:41.:20:44.

women to Scotland's economy becomes more important than ever. The report

:20:45.:20:50.

offers the government a road map for that. Will she ensure that somebody

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in big Scotland Office blows the dust off it and increment some of

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the good, solid recommendathons contained within it? It is ` very

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good report. What is critic`l is that everybody works togethdr on and

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of course we now have a sittation where the Scottish Parliament

:21:10.:21:14.

actually has more devolved powers, specifically to look at and address

:21:15.:21:17.

the problems of gender equality which of course includes anx

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disadvantage for women. Question ten come Mr Speaker. I was

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delighted in April two attend the plant at DL for the handover from

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Tata to the Liberty group, `nd I think on the prospect that we

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continue with the excellent work, working together, that the prospects

:21:43.:21:45.

for the steel industry in Scotland must be good and I am posithve about

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its future. I thank the Minister for th`t

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encouraging answer. What discussions is she having with both the First

:21:54.:21:56.

Minister and the other government departments to make sure th`t the

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Scottish steel industry recdives all the help and support it needs?

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Of course we do work togethdr and in glove and that is important. It is

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also important to realise that the steel Council has more than one

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member, a number of representatives from the Scottish and Welsh

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governments, which is part `nd parcel of it so together we can make

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sure that throughout the Unhted Kingdom we have a strong and

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sustainable steel industry. With welcomed the fact that now we

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have Brexit that it would bd better and helpful for the British steel

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industry, including the stedl industry in Scotland, it is a good

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day we have come out and wotld be Minister welcome it? What I would

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say is theirs. I think we now all of us have to work together however we

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voted, whatever our views are, come together to make sure that we now do

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the very best for our country. But we should be under no illushons

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whatsoever, we are facing some very big challenges, some very dhfficult

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and not just days, months and years, but coming together, putting the

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past behind us, that is what is important now.

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Procurement has been an important part of the government's work, and I

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can say that we are determined to deliver our target of centr`l

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departments pending, 33% of budgets with SMEs by 2020, and the last set

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of results showed we were increasing it to 27.1%.

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I am grateful to the Ministdr for that reply. Does she agree with me

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that, rather than setting specific percentage targets for proctrement,

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the Scottish Government shotld follow best practices in cotntries

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like Norfolk and working close corporation with the UK Govdrnment.

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The short answer is an emph`tic yes. Question 15.

:24:07.:24:18.

Mr Speaker, the 2015 budget the government introduced a ?1.3 billion

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package of tax measures to help our oil and gas industry, and today I am

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launching a group and oil and gas workforce plan to work out how we

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can retain talent in this sdctor, opportunities for workers in other

:24:41.:24:48.

sectors. North Sea Oil and gas supports a supply chain partnership

:24:49.:24:50.

including business is on thd south coast. We'll be Minister continue to

:24:51.:24:54.

support those businesses as they diversify? In short, yes, bdcause we

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understand the difficulties in the oil and gas sector at the moment,

:25:00.:25:03.

and that is why we have dond this report. Again, by working together

:25:04.:25:08.

we can improve a lot, but these are difficult times for the oil and gas

:25:09.:25:15.

sector. I am grateful to thd Minister and the honourable

:25:16.:25:17.

gentleman who posed the question six today but copperhead civillx -- on

:25:18.:25:24.

Prensa three. It is now timd for prime ministers questions.

:25:25.:25:38.

I know the whole house will want to join me in wishing Wales lock this

:25:39.:25:42.

evening. Chloe Smith. Mr Speaker, I `m a

:25:43.:26:04.

Conservative because I belidve it is not where you are coming from, it is

:26:05.:26:08.

where you are going to. Does my right honourable friend agrde? Does

:26:09.:26:13.

my right honourable friend `gree that the opportunities to stcceed no

:26:14.:26:17.

matter what your background is what we want for

:26:18.:26:18.

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