:00:00. > :00:00.of parliament at 11 o'clock tonight. As we have questions to the
:00:00. > :00:17.Secretary of Scotland, David Mundell. Order. Order. Questions to
:00:18. > :00:23.the Secretary of State for Scotland. Mr Speaker, can I begin by
:00:24. > :00:27.commending you not only on xour attendance of the Davis Cup
:00:28. > :00:31.semifinal in Glasgow but for your obvious enthusiasm and exubdrance
:00:32. > :00:35.which the honourable lady for Glasgow Central and I were witness
:00:36. > :00:40.to. I'm sure you'll agree that although the result was not as we
:00:41. > :00:43.would've wished, the event once again confirmed Glasgow's place
:00:44. > :00:52.place as a great international sporting venue. Mr Speaker, with
:00:53. > :00:56.permission, I once questions one, to an four together. The UK le`ving the
:00:57. > :01:03.EU should be seen as an opportunity for today's GDP figures are an
:01:04. > :01:06.encouraging sign of growth, however Scotland is still lagging bdhind the
:01:07. > :01:11.UK as a whole. That underlines the need for Scotland's two govdrnments
:01:12. > :01:18.to work together to take such opportunities. You and your daughter
:01:19. > :01:25.did a fantastic job as well as did the constituency member of
:01:26. > :01:29.Parliament. Thank you. Given that Brexit continues to be billdd as
:01:30. > :01:34.taking back control, can be Secretary of State tell us which
:01:35. > :01:40.powers that are currently controlled by Brussels will be UK Government
:01:41. > :01:53.commit to giving to Hollywood and which will be redeveloped to
:01:54. > :01:57.Westminster? -- Holyrood. They are predicated on the basis that the
:01:58. > :02:00.United Kingdom was a member of the European Union, then those
:02:01. > :02:04.devolution settlement will be changed by the United Kingdom
:02:05. > :02:10.leaving the EU. Those wobblx matters that will be subject to deb`te and
:02:11. > :02:15.discussion. Dot-mac will be matters. Thank you. I am not entirelx certain
:02:16. > :02:20.answered that question. Will he categorically rule out the powers
:02:21. > :02:26.that will not be revisited to this Parliament as a result of the
:02:27. > :02:29.decision to leave? Mr Speakdr, what I can say is that no powers which
:02:30. > :02:34.are currently exercised by the Scottish Parliament will be reserved
:02:35. > :02:42.to this Parliament as a restlt of the United Kingdom leaving the EU.
:02:43. > :02:48.Thank you. Will the constittency that has an interest in havhng an
:02:49. > :02:50.aerospace cluster, in an airport and a large pharmaceutical prodtction,
:02:51. > :02:54.can I asked what the Secret`ry of State's view is going to be on the
:02:55. > :03:03.single market, the open skids and the European's medicines agdncy The
:03:04. > :03:08.Prime Minister at the Conservative conference made very clear that we
:03:09. > :03:15.want to have access to the single market are now we want to ensure
:03:16. > :03:18.free trade. The sectors that she has mentioned are very important, they
:03:19. > :03:22.are part of the group of sectors that were engaging very, very
:03:23. > :03:25.closely with to identify thdir specific interests and concdrns so
:03:26. > :03:30.that they will be part of the UK's negotiation position. Is not the
:03:31. > :03:33.case that there should be a substantial boost to Scottish
:03:34. > :03:43.exports as a result of the depreciation of the pound shnce the
:03:44. > :03:47.Brexit vote? Mr Speaker, I think that sectors within Scotland would
:03:48. > :03:51.acknowledge, the tourism sector for example, where we saw a record
:03:52. > :03:57.attendance at the Edinburgh Festival press release. They have benefited
:03:58. > :04:01.from the devaluation of the pound and I think the agriculture sector
:04:02. > :04:06.in Scotland would acknowledge that as well. But I don't see th`t as
:04:07. > :04:11.being an end in itself. What we need to do is ensure that we get the best
:04:12. > :04:15.possible deal the Scotland `nd the UK from these negotiations `re
:04:16. > :04:21.Scottish by the can flourish. - Scottish business. He is right in
:04:22. > :04:23.saying that we are leaving ` dysfunctional union are not as an
:04:24. > :04:28.opportunity for the people of Scotland but it is not also the case
:04:29. > :04:33.that if we were to follow the Scottish National Party's advocacy,
:04:34. > :04:36.and leave the union that works to comment the United Kingdom, we would
:04:37. > :04:40.not be people in Scotland whth a huge public sector deficit `nd the
:04:41. > :04:45.prospect of either tax rises or cuts in services? My right honourable
:04:46. > :04:50.friend is absolutely right. It does seem to me to be a very str`nge
:04:51. > :04:57.contradiction that members on the benches opposite are rightlx so
:04:58. > :05:03.concerned about Scotland's continued trade with the EU but the dhsregard
:05:04. > :05:09.the fact that Scotland's tr`de with the rest of the United Kingdom is
:05:10. > :05:14.four times as much as with the EU and a jobs in Scotland are dependent
:05:15. > :05:20.on trade within the United Kingdom. That is the union that mattdrs to
:05:21. > :05:24.Scotland. Given the importance of that single market to Scotl`nd, as
:05:25. > :05:28.my right honourable friend `gree, that the last thing the Scottish
:05:29. > :05:38.economy needs is a perpetual uncertainty of another independence
:05:39. > :05:41.referendum? If anyone who actually listens to businesses in Scotland
:05:42. > :05:47.and indeed to the people of Scotland, it is quite clear that
:05:48. > :05:53.people do not want another divisive independence referendum in Scotland,
:05:54. > :05:58.other than individuals who `re obsessed with independence. We need
:05:59. > :06:02.to listen to business, take a second independence referendum of the table
:06:03. > :06:07.and concentrate on getting the best possible deal for Scotland `nd the
:06:08. > :06:16.UK from these negotiations. Thank you. As a result of demands from the
:06:17. > :06:22.sun, the Chancellor of the Dxchequer has suggested the company whll
:06:23. > :06:25.result in the loss of profits due to exiting the EU? Can you show
:06:26. > :06:28.business is based in Scotland he will suffer the same loss in profits
:06:29. > :06:33.that they will be entitled to the same bill and has a made an
:06:34. > :06:40.assessment of the cost of stch compensation? Can I begin bx
:06:41. > :06:47.congratulating the honourable gentleman on retaining his position
:06:48. > :06:50.as shadow Scottish secretarx? I understand that on the benches
:06:51. > :06:55.behind him is the Westminstdr spokesman of the Scottish L`bour
:06:56. > :07:00.Party. I am sure it will emdrge during these questions how those two
:07:01. > :07:05.positions interrelate. The point that I would make in response to his
:07:06. > :07:08.question is that we will have a common response across the Tnited
:07:09. > :07:11.Kingdom and what other supporters put in place for businesses in the
:07:12. > :07:18.north of England will apply for businesses in Scotland. As ` long
:07:19. > :07:23.and proud history of inventhon, innovation and creativity and has
:07:24. > :07:27.always looked up to the wild, could the Government do more to rdkindle
:07:28. > :07:31.that outlet in Scotland rather than the First Minister creating
:07:32. > :07:42.uncertainty and constantly talking about independence? I agree that we
:07:43. > :07:49.need to see Brexit as an opportunity and I was very interested to see
:07:50. > :07:53.yesterday that the leader of Glasgow City Council also took that view
:07:54. > :07:59.that Brexit offered an opportunity for Glasgow to continue to flourish.
:08:00. > :08:06.So rather than doom mongering which is a constant refrain of thd SMP,
:08:07. > :08:16.let us take a positive approach and let's seize the opportunitids that
:08:17. > :08:20.are baffled scholars. -- S `nd P. He was elected on a manifesto
:08:21. > :08:26.commitment to safeguard British interests in the single market. Will
:08:27. > :08:30.he and his Government work with the Scottish Government, respect the 62%
:08:31. > :08:35.of Scottish voters who voted to remain within the European Tnion and
:08:36. > :08:45.protect our place in Europe? Of course I will do that but I will
:08:46. > :08:50.also respect the half of voters in his own constituency who voted to
:08:51. > :08:55.leave the EU. The right honourable gentleman does not make much of its
:08:56. > :09:00.Speaker but a higher percentage of people in his constituency voted to
:09:01. > :09:08.leave the EU than voted for him Let us respect everybody in this debate.
:09:09. > :09:14.I am committed to working whth the Scottish Government, I have met
:09:15. > :09:17.Michael Russell on a number of occasions, the First Ministdr and
:09:18. > :09:23.the Prime Minister will meet on the 24th of October and they did Iraq
:09:24. > :09:28.that engagement will be essdntial in achieving what one, the best
:09:29. > :09:30.possible deal for Scotland. We learned from statistics emanating
:09:31. > :09:37.from his own Government the cost of Brexit will cost ?66 billion a year
:09:38. > :09:41.will stop if these statistics are being prepared for the Cabinet
:09:42. > :09:45.Office, surely they are also being prepared for the Scotland Office. So
:09:46. > :09:50.will be Secretary of State for Scotland be candid with the House
:09:51. > :09:58.and candid with the people of Scotland and tell us how much will
:09:59. > :10:02.Brexit cost Scotland? We ard not even at the stage of beginnhng the
:10:03. > :10:06.negotiations. What we are going to see, the Prime Minister has set up
:10:07. > :10:10.the process for taking thosd negotiations forward. It is
:10:11. > :10:16.inevitable but over the next few weeks, months and years, we are
:10:17. > :10:22.going to sleep less reports, press speculation, and all sorts of other
:10:23. > :10:26.subdivision. All I want to do is ensure about going into those
:10:27. > :10:29.negotiations we do so in conjunction with the Scottish Government to get
:10:30. > :10:37.the best possible deal. That is what my commitment is. You've sedn the
:10:38. > :10:42.report published yesterday by the Marine Centre showing that one half
:10:43. > :10:49.of all the muscle Fish and pelagic fish caught in York n UK waters were
:10:50. > :10:54.caught by boats and other you countries. Do you understand why
:10:55. > :11:01.Scottish fishermen see thesd negotiations as a once-in-a,lifetime
:11:02. > :11:05.chance to undo those? Will he put these interests of the heart of the
:11:06. > :11:09.negotiations, unlike his Tory predecessors from the 1970s who saw
:11:10. > :11:14.our fishing industry as being expendable?
:11:15. > :11:21.I commend the Scottish fishdrmen 's Federation and others as to the
:11:22. > :11:27.approach in relation to the negotiations, they see them as an
:11:28. > :11:33.opportunity for the reasons he refers to. They were quite right
:11:34. > :11:40.characterised yesterday's rdport as a sea of opportunity and thdy have
:11:41. > :11:46.my support in that. It is an assessment of the hmpact of
:11:47. > :11:50.the Scottish economy of the UK leaving the EU, has he incltded the
:11:51. > :11:55.impact of Scotland leaving hts biggest single market, the rest of
:11:56. > :12:01.the UK, something some people demand every week?
:12:02. > :12:07.As I said in my earlier comlents, I find it very surprising people who
:12:08. > :12:12.set out a great enthusiasm for the single market at the same thme are
:12:13. > :12:18.willing to dismiss the UK shngle market, which is one of four times
:12:19. > :12:24.as much to the Scottish economy and employs 1 million Scottish people in
:12:25. > :12:28.jobs. Today's GDP figures in Scotland are
:12:29. > :12:37.welcome and the increase in GDP as a result of the services sector and
:12:38. > :12:40.the financial services sector, what specifically is the secretary of
:12:41. > :12:44.state doing to protect that financial services and can give the
:12:45. > :12:53.hosts issue he will stand bx the party commitment that he saxs yes to
:12:54. > :12:57.the single market? Firstly, we fully recognise the
:12:58. > :13:02.importance of the financial sector, not just in Edinburgh robot in
:13:03. > :13:06.Scotland more generally and I am determined their interests `re
:13:07. > :13:11.protected and we are working closely with them to ensure they ard very
:13:12. > :13:15.much to the forefront as we move forward with establishing the UK's
:13:16. > :13:23.negotiating position. Questhon three, Mr Speaker.
:13:24. > :13:28.With permission, I will answer questions three, six and seven
:13:29. > :13:32.together. Since the referendum Scotland Office ministers h`ve
:13:33. > :13:36.failed over 50 meetings with the Scottish Government ministers and
:13:37. > :13:42.trade bodies to discuss the implications -- have hailed over 50.
:13:43. > :13:46.We intend to hold further mdetings to ensure Scottish business
:13:47. > :13:49.interests are fully represented in negotiations for the UK's exit from
:13:50. > :13:55.the EU and future trade arrangements.
:13:56. > :13:59.Both my right honourable frhend agree when we negotiate fred-trade
:14:00. > :14:04.deals outside of the Europe`n union we can remove some of the
:14:05. > :14:09.protectionist barriers the DU has erected, thereby reducing consumer
:14:10. > :14:15.prices for consumers in Scotland and the whole United Kingdom?
:14:16. > :14:22.I do agree with my honourable friend and I believe this Government and
:14:23. > :14:27.this country can be an advocate around the world for free trade
:14:28. > :14:31.trade liberalisation between advanced economies can have a
:14:32. > :14:37.positive impact on the constmer and that is what we want to see in
:14:38. > :14:40.Scotland and across the UK. Can the secretary of state reassure
:14:41. > :14:47.the house as he is conducting those discussions around the world he does
:14:48. > :14:53.two things, firstly, gets the maximum opportunities for Scottish
:14:54. > :14:56.business but also uses it as an opportunity to demonstrate that
:14:57. > :15:00.Scotland is a better as part of the UK and not on the head this talk of
:15:01. > :15:08.Independence which we incessantly hear from the party oppositd.
:15:09. > :15:14.Mr Speaker, I agree with my right honourable friend, I think ht is
:15:15. > :15:19.vital we promote Scotland's interests in that way what we do so
:15:20. > :15:23.working in conjunction with the Scottish Government. Both
:15:24. > :15:28.governments can have a role to play, for example as the Scotch Whisky
:15:29. > :15:30.Association has identified hn developing new markets are promoting
:15:31. > :15:38.that vitally important prodtct for Scotland's economy.
:15:39. > :15:43.On the theme of Scotch whiskey I was pleased to read last month dxport of
:15:44. > :15:46.whiskey or opt for the first time in three years with the surge of
:15:47. > :15:51.exports to India. Does my rhght honourable friend agree the UK
:15:52. > :15:54.should work together to support the export of great British products
:15:55. > :16:00.including great Scottish products like whiskey?
:16:01. > :16:07.I do, as I have set out in ly previous remarks, and bodies such as
:16:08. > :16:11.the Scotch Whisky Association are and accept that and want to see the
:16:12. > :16:17.two governments working togdther in that regard and that is what I am
:16:18. > :16:21.committed to doing. If the Government believes the EU
:16:22. > :16:26.without specific trade arrangements with the EU is he quite happy to
:16:27. > :16:32.fall back on WTO organisation methods?
:16:33. > :16:37.I am sure that is the type of speculation that will be constantly
:16:38. > :16:43.sought from ministers over the weeks and months ahead. The Prime Minister
:16:44. > :16:49.has set up the process for negotiating our exit from the EU and
:16:50. > :16:52.the conclusion of that procdss then I will be confident we will achieve
:16:53. > :16:58.the best possible deal for Scotland and the UK.
:16:59. > :17:02.The secretary of state has on many occasions extol the trade bdnefits
:17:03. > :17:07.of the single market to Scotland. Regardless of whether the UK is a
:17:08. > :17:12.member state of the EU and what does he still believes it is in
:17:13. > :17:14.Scotland's and pressed the membership of the single market
:17:15. > :17:21.rather than negotiating third-party access?
:17:22. > :17:27.What I have also said is thd UK will have a bespoke arrangement with the
:17:28. > :17:35.EU when we leave and it is not appropriate or insensible to see the
:17:36. > :17:39.negotiating process in the context of existing arrangements with other
:17:40. > :17:42.countries or the existing structure of the EU. We should look to get the
:17:43. > :17:51.best possible deal for our businesses.
:17:52. > :17:58.Crucial to promoting trade hs supporting apprenticeships. Our
:17:59. > :18:02.training bodies are telling me they struggle to get clear guidance on
:18:03. > :18:06.how the apprenticeship levy will work in Scotland. Can he ensure that
:18:07. > :18:09.unlike his colleague, the Btsiness Secretary, he works with thd
:18:10. > :18:16.Scottish Government to give these people the information they need?
:18:17. > :18:20.I am absolutely committed to that and can confirm the apprenthceship
:18:21. > :18:25.levy will be discussed when the joint ministerial Council mdets on
:18:26. > :18:29.the 24th of October. One of the areas in which these
:18:30. > :18:33.apprenticeships could work hs the decommissioning of the oil rigs We
:18:34. > :18:42.have already seen the loss of 8 ,000 jobs in that industry which if we
:18:43. > :18:45.continue if we lose contracts were decommissioning link to othdr
:18:46. > :18:49.countries. Does the Governmdnt have any strategy at all to ensure these
:18:50. > :18:54.crucial jobs remain in Scottish fans?
:18:55. > :19:00.The honourable gentleman will know the Government is committed to the
:19:01. > :19:04.industry, ?2.3 billion investment and associated tax changes were
:19:05. > :19:10.exactly what the industry asked in terms of support and we havd
:19:11. > :19:13.established, along with the Scottish Government, the ?250 million
:19:14. > :19:17.Aberdeen City Deal which will have at its heart a new technology centre
:19:18. > :19:27.to ensure skills and the jobs remain in the north-east.
:19:28. > :19:31.Mr Speaker, a significant ntmber of new welfare problems came into force
:19:32. > :19:35.on the September and give the Scottish Parliament new chohces or
:19:36. > :19:39.welfare. The joint ministerhal working group on welfare whhch
:19:40. > :19:42.includes Scottish ministers met yesterday to continue its ilportant
:19:43. > :19:49.and constructive work oversdeing the transfer of the remaining p`rtners.
:19:50. > :19:52.With that significant transfer of powers from the UK Government to
:19:53. > :19:57.Edinburgh does my right honourable friend agree with me the Scottish
:19:58. > :20:00.Government should get on with exercising the powers for the sake
:20:01. > :20:06.of the welfare of the Scotthsh people rather than wasting time on
:20:07. > :20:12.expensive and unnecessary sdcond independence referendums?
:20:13. > :20:16.I absolutely agree with my honourable friend. These ard
:20:17. > :20:21.significant powers which thd Scottish Government and the SNP in
:20:22. > :20:26.this house and asked for and I think people around Scotland will look to
:20:27. > :20:30.see how they are being deployed and what process is being used `nd I
:20:31. > :20:33.think the message coming from the Scottish people generally to the
:20:34. > :20:39.Scottish Government is get on with the day job.
:20:40. > :20:41.I am sure yesterday at the joint ministerial working group the
:20:42. > :20:45.Scottish ministers would have stressed their desire to sed the
:20:46. > :20:52.employment programmes on a voluntary basis. What steps for the sdcretary
:20:53. > :20:56.of state take to seek that desire respected?
:20:57. > :21:00.We have made it clear we will respect the desire for the
:21:01. > :21:04.programmes to proceed on a voluntary basis and that has been madd clear.
:21:05. > :21:08.What I think the people of Scotland will want to know is what the
:21:09. > :21:12.Scottish Government intends to do in relation to people who do not
:21:13. > :21:18.volunteer to be part of the programme. Question number dight, Mr
:21:19. > :21:23.Speaker. With your permission I will answer
:21:24. > :21:26.this together with question ten The Government continues to work closely
:21:27. > :21:29.with industry both directly and through the oil and gas authority to
:21:30. > :21:36.drive investment and support jobs in the North Sea.
:21:37. > :21:40.Revenue from North Sea oil has dropped by more than ?10 million
:21:41. > :21:46.over the course of the last two years. What steps is the Government
:21:47. > :21:52.taking to ensure public servers and Scotland's do not suffer as a result
:21:53. > :21:56.of the shortfall in public revenue? As my colleague rightly notds that
:21:57. > :22:02.has been a shock from global changes in oil and gas industry and as the
:22:03. > :22:08.letters public figures financed show being part of the UK products living
:22:09. > :22:11.standards in Scotland. This drop in revenue has been offset by `
:22:12. > :22:17.vigorous programme of Government support in tax relief and allowances
:22:18. > :22:23.as well as a host of other `reas. Please supply of home-grown stocks
:22:24. > :22:28.is a vital for the Cheshire chemical industry and part relying on the
:22:29. > :22:31.success of the North Sea oil and gas. Can the Minister shall behold
:22:32. > :22:35.the Government will continud to support the many jobs in thdse
:22:36. > :22:40.industries that depend very much on the sector?
:22:41. > :22:44.My college is right to highlight this issue. The UK chemical sector
:22:45. > :22:49.is a vital part of our manufacturing industry and imported contrhbuted to
:22:50. > :22:56.the economy and we work closely with the industry to implement the desire
:22:57. > :22:59.to gross value added by ?104 million by 2030 and a key element whll be
:23:00. > :23:05.delivering competitive energy and feedstock supplies.
:23:06. > :23:10.Industry has been crystal clear that more work must be done to boost
:23:11. > :23:14.exploration in the Autumn Statement will this Government bring forward
:23:15. > :23:20.exploration incentives to protect employment and postproduction?
:23:21. > :23:23.Exploration remains very important and the continental shelf is
:23:24. > :23:29.depleting and the Government has taken serious steps in this area in
:23:30. > :23:32.Aberdeen was the City Deal `nd I will not comment on the Auttmn
:23:33. > :23:39.Statement but it is an issud of summer focus for the Governlent
:23:40. > :23:45.Mr Speaker, since questioned they began this morning five members on
:23:46. > :23:49.these benches have asked about membership of the EU and to have
:23:50. > :23:52.asked about Scottish jobs. Seven members on the Conservative benches
:23:53. > :23:59.what the doc about Scottish independence. Which of thesd
:24:00. > :24:04.would-be be is secretary of state described as being obsessed with
:24:05. > :24:08.independence? I can do no bdtter than regret the honourable gentleman
:24:09. > :24:20.to do what Adam Smith when he said that the union of 1707...
:24:21. > :24:27.Question number nine. Order! Far too much noise in the
:24:28. > :24:36.chamber. The Minister is a debutante at the box and he ought to be heard.
:24:37. > :24:42.Not quite a debutante, Mr Speaker. We can only hope. The steel industry
:24:43. > :24:47.in Scotland remains a vital part of the UK steel industry and the
:24:48. > :24:51.Government continues to eng`ge with steel companies of civil Government
:24:52. > :24:56.and trade unions do ensure ` prosperous and sustainable hndustry
:24:57. > :25:01.in the future. Leopard White house is taking more
:25:02. > :25:05.than 70% of its new workforce from among former part that steel
:25:06. > :25:11.employees and it should be congratulated for that which is good
:25:12. > :25:15.news for Motherwell. -- Tat` steel. Well my honourable friend
:25:16. > :25:22.congratulate them for their apprenticeship programme? Mx
:25:23. > :25:28.honourable friend is right to focus on the mail which opened last month
:25:29. > :25:33.under its new owners of libdrty Group with the support of the
:25:34. > :25:35.Government. This illustrates in supporting British Steel we have
:25:36. > :25:42.taken include action to help the industry including securing energy
:25:43. > :25:46.costs, flexibility over emissions regulations and other areas and I
:25:47. > :25:56.share his delight in the work done with the apprenticeships as well.
:25:57. > :26:01.During -- I attended the reopening of the works and Motherwell. Will
:26:02. > :26:05.the minister speak to the Scottish Government on how to save jobs in
:26:06. > :26:11.steel by putting together a package that really works?
:26:12. > :26:15.I am grateful to the honour`ble lady and the Government stands rdady to
:26:16. > :26:20.work with the Scottish Government on in the area to support and protect
:26:21. > :26:45.Scottish jobs and industry. Order. Questions to the Prime Minister
:26:46. > :26:54.Coalition government gifted to the urgent care. Bergin imposed a system
:26:55. > :26:57.of double appointments forchng patients to have unnecessarx extra
:26:58. > :27:00.consultations before surgerx boosting their profits at the
:27:01. > :27:07.expense of the taxpayer and patient safety. Is this acceptable `nd what
:27:08. > :27:09.is the Prime Minister prepared to do about