:00:07. > :00:19.Questions to the Secretary of State for Scotland. The Chief Secretary to
:00:20. > :00:24.the Treasury intended a joint exchequer committee with the
:00:25. > :00:26.Scottish Government's Cabinet Secretary for Finance in November
:00:27. > :00:33.and discuss the ongoing war between both Governments to implement this
:00:34. > :00:34.power and there are ongoing discussions between officials from
:00:35. > :00:46.both governments. Does my honourable friend agree
:00:47. > :00:50.these taxation powers coupled with other powers that have been devolved
:00:51. > :00:57.to Hollywood make it one of the most powerful devolved parliaments in the
:00:58. > :01:01.world? And when she agree with me that quite rightly they make the
:01:02. > :01:07.Scottish Government accountable for its actions in respect of taxation
:01:08. > :01:13.and responsible for making Scotland the most highly taxed part of the
:01:14. > :01:16.United Kingdom? of course my honourable friend makes a very good
:01:17. > :01:19.point. The new devolution settlement does indeed deliver one of the most
:01:20. > :01:23.powerful and accountable devolved parliaments in the world and the
:01:24. > :01:28.people of Scotland will look to the Government to use those tax powers
:01:29. > :01:31.wisely to make Scotland as competitive and attractive to
:01:32. > :01:34.business as possible. We want to see the Scottish Government use those
:01:35. > :01:42.powers to deliver that and to choose how to use them. Does my honourable
:01:43. > :01:49.friend agree with me that when she shared my confusion that the
:01:50. > :01:52.Scottish Government prefers the narrative of Winch, wine and waffle
:01:53. > :01:58.rather than use the powers as Parliament has given them to prove
:01:59. > :02:04.their competence of running the country -- whinge, whine and waffle.
:02:05. > :02:07.I'm aware that since the referendum last year, many of the conversations
:02:08. > :02:13.we've had with businesses in particular who are thinking about
:02:14. > :02:16.their plans for the future doozy competitiveness through tax and want
:02:17. > :02:18.to know that a Government is entirely focused on creating the
:02:19. > :02:24.conditions in which businesses can grow and thrive and I really think
:02:25. > :02:31.what we need to focus on, all of us, is pursuing our plans to make our
:02:32. > :02:38.country is very competitive and I think Scotland the Government has to
:02:39. > :02:44.realise that the decisions they make should be best for businesses. The
:02:45. > :02:48.Tories at Westminster are facing a rebellion in the backbenches about
:02:49. > :02:56.business rates. What advice are they taking from the Government in
:02:57. > :03:01.Scotland who have listened to local businesses and account for 12.5% of
:03:02. > :03:06.the businesses in hospitality and in Aberdeen where they have been
:03:07. > :03:20.hard-hit by the oil price? I think that is an attempt at political
:03:21. > :03:22.bragging. I think the Chancellor as my right honourable friend the
:03:23. > :03:28.Secretary of State for local Government have made it clear they
:03:29. > :03:34.will listen to concerns especially of the smallest businesses hit by
:03:35. > :03:37.income tax and business rates. And the ministers explain how the
:03:38. > :03:41.Scottish Government can simultaneously not be using the
:03:42. > :03:45.taxation powers it has and also be the highest taxed part of the
:03:46. > :03:50.country? Particularly when neither of these statements are in fact
:03:51. > :03:56.true. It's for the Scottish Government to account to the
:03:57. > :04:03.Scottish people for its plans and these might be interesting points to
:04:04. > :04:09.bring to Westminster and not about in this chamber, but real people are
:04:10. > :04:13.looking at the impact on their family income, on these plans, and
:04:14. > :04:18.the Scottish Government will have to account to them and it is far more
:04:19. > :04:22.than just a debating point. The Scottish Government's decision to
:04:23. > :04:29.make Scotland the most high taxed part of the United Kingdom will
:04:30. > :04:33.reduce the competitiveness and make Scotland a less attractive place to
:04:34. > :04:40.live, work or do business. These are all very important points. It is for
:04:41. > :04:44.the Scottish Government to use the powers that we devolved to it. It is
:04:45. > :04:48.for them to account to the people but there's no doubt that people
:04:49. > :04:52.look at the competitiveness of tax regimes, whether it is personal or
:04:53. > :05:03.business, and then imported Nicky decisions people make about
:05:04. > :05:06.competitiveness and other things. Following the EU referendum,
:05:07. > :05:08.Scotland Office ministers have regularly met with representatives
:05:09. > :05:12.from Scottish industry and business. What comes out clearly as the
:05:13. > :05:16.appetite to seize and make a success of the opportunities afforded to us
:05:17. > :05:20.by leaving the EU, forging a new role for ourselves in the world, to
:05:21. > :05:33.negotiate our own trade arrangements and be a champion for free trade.
:05:34. > :05:37.My question is around exports. Scotland has made a particular
:05:38. > :05:41.success of the food and drink industries. How confident are
:05:42. > :05:44.worried should they be if we come out of Europe that was markets will
:05:45. > :05:52.be damaged and what can the Government do to support them? My
:05:53. > :05:57.honourable friend is absolutely right to highlight food and drink as
:05:58. > :06:02.Scotland's top manufacturing export with exports of ?8.9 billion in
:06:03. > :06:06.2015. I believe leaving the EU now offers us the opportunity to
:06:07. > :06:08.negotiate new trade deals across the globe and create even more
:06:09. > :06:17.opportunities for Scotland's world-renowned food and drink.
:06:18. > :06:21.Agriculture and fisheries are key parts of the Scottish economy and
:06:22. > :06:28.Scotland's export sector. They're both devolved powers. Under the
:06:29. > :06:30.plans of the Government, will all decisions relating to agriculture
:06:31. > :06:39.and fisheries be taken by the Scottish Parliament and Scottish
:06:40. > :06:42.fisheries after Brexit? As they honourable gentleman knows, the
:06:43. > :06:47.Government has confirmed in the White Paper that all power is
:06:48. > :06:50.currently exercised by the Scottish Parliament in relation to
:06:51. > :06:56.agriculture, fisheries and all the other issues will continue to be so.
:06:57. > :06:59.We wish to have a dialogue with the Scottish Government with the other
:07:00. > :07:05.devolved administrations and stakeholders about what happens in
:07:06. > :07:09.relation to powers currently held in Brussels and where the rate we rest
:07:10. > :07:16.after the United Kingdom leaves the EU. -- where they rightly rest.
:07:17. > :07:21.Anyone watching will realise the Secretary of State didn't answer the
:07:22. > :07:25.question. I'll ask again. During the Brexit campaign, people were told
:07:26. > :07:26.that decision is currently taken in Brussels on agriculture and
:07:27. > :07:31.fisheries would revert to the Scottish Parliament. The Secretary
:07:32. > :07:35.of State has not given a clear answer to this question and it
:07:36. > :07:38.really matters to our rural industries, to our global economy
:07:39. > :07:42.and Scotland as a trading nation so let me try again, the same question,
:07:43. > :07:46.I be grateful if you could answer that, under the plans of his
:07:47. > :07:49.Government, will all decisions relating to agriculture and
:07:50. > :07:58.fisheries be taken by the Scottish Parliament and the Scottish
:07:59. > :08:01.Government after Brexit? Yes or no? This Government's plan is to engage
:08:02. > :08:07.with the Scottish Government and other devolved administrations to
:08:08. > :08:11.discuss these serious issues. It is not to go out and tell the people of
:08:12. > :08:16.Scotland that the devolved settlement is being undermined by
:08:17. > :08:25.Brexit, a Brexit which will lead to more powers being exercised by the
:08:26. > :08:30.Scottish Parliament, so what I can give is a guarantee that after the
:08:31. > :08:32.United Kingdom leaves the EU, the Scottish Parliament and Scottish
:08:33. > :08:52.ministers will have more powers than they have today. I add my
:08:53. > :08:59.condolences to the family of the genuine parliamentarian. Whatever
:09:00. > :09:07.sport is put in place of businesses in the North East of England, this
:09:08. > :09:17.was in relation to the deal struck with Nissan. Does he stand by that
:09:18. > :09:25.promise? Firstly can I associate myself with the honourable
:09:26. > :09:29.gentleman's comments on Gerald Kauffman. I found him to be the
:09:30. > :09:37.perfect gentleman. In relation to the approach this Government is
:09:38. > :09:42.taking, it will be an approach that is consistent across the whole of
:09:43. > :09:49.the United Kingdom. I thank him for the reply but can I ask when
:09:50. > :09:54.businesses are winner of this welcome reassurance to make
:09:55. > :10:04.businesses in Scotland the same deal as was done with Nissan. Why is this
:10:05. > :10:11.the best kept secret in Scotland? I've made clear to the honourable
:10:12. > :10:13.gentleman that the UK Government is approaching the Brexit negotiations,
:10:14. > :10:18.how we are fully engaged with businesses across Scotland to make
:10:19. > :10:23.sure that we understand the issues and concerns and that we can go
:10:24. > :10:25.forward on the basis that will ensure that Scotland and the whole
:10:26. > :10:33.of the native kingdom makes the best possible deal of the UK leaving the
:10:34. > :10:38.EU. Scotland's international exports have increased by 41% since the SNP
:10:39. > :10:43.Government came into office in 2007, a fantastic success story for
:10:44. > :10:47.Scotland. Can the Secretary of State explain why the UK Government failed
:10:48. > :10:49.to negotiate any geographical indications for Scottish colleges in
:10:50. > :11:02.the Canada deal? I hope is a honourable lady's
:11:03. > :11:06.approach on the EU trade deal is more consistent than her
:11:07. > :11:12.parliamentary group, because on the Monday of the week this issue was
:11:13. > :11:17.discussed the SNP voted in favour of the Canada deal and by the Wednesday
:11:18. > :11:28.they had somehow found they were against it.
:11:29. > :11:33.I have mentioned, the Chief Secretary of the Treasury has
:11:34. > :11:37.regular engagement with the Scottish Government finance minister in the
:11:38. > :11:44.discuss matters relating to the Scottish Government's budget and at
:11:45. > :11:51.a joint committee in November and the finance minister quadrilateral.
:11:52. > :11:56.I would ask her what does she believe the consequence will be the
:11:57. > :12:03.Scottish Government using new powers to make Scotland the most highly
:12:04. > :12:08.taxed part of the United Kingdom? Quite rightly colleagues are focused
:12:09. > :12:13.on this issue of tax and competitiveness. The increase tax
:12:14. > :12:16.powers delivered to the Scotland Act mean the Scottish Government has
:12:17. > :12:21.responsibility for raising more of what it spends and it is for them to
:12:22. > :12:25.decide how to use these powers the shape Scotland's economy and jobs. I
:12:26. > :12:30.may not like they are plans to make Scotland a higher tax nation but it
:12:31. > :12:34.is up to them but they do have to explain those plans to the people
:12:35. > :12:42.they represent. The publication of this year's draft
:12:43. > :12:44.Scottish budget was delayed because the Chancellor did not make
:12:45. > :12:46.financial information available until the Autumn Statement. What
:12:47. > :12:51.impact will be moved to the open budget have on the Scottish
:12:52. > :12:56.Government's black -- ability to plan for its budget? There are many
:12:57. > :13:00.good reasons to move to single festival event in autumn and a
:13:01. > :13:11.longing for longer term planning is one of them. -- single budget in the
:13:12. > :13:15.autumn. Taking a referendum of the table is the single biggest thing
:13:16. > :13:22.the SNP could do for confidence amongst the business community.
:13:23. > :13:26.Number seven. I have regular conversations with the Secretary of
:13:27. > :13:31.State for Exiting the EU and the UK Government has made clear securing
:13:32. > :13:37.the rights of EU citizens in the UK and UK citizens in the EU is one of
:13:38. > :13:41.our top priorities in negotiations for Brexit. I do not find an answer
:13:42. > :13:45.very reassuring giving the speculation about the cut-off date
:13:46. > :13:50.for EU nationals coming later this month, potentially. The other place
:13:51. > :13:55.is voting on an amendment which will secure the rights of EU nationals
:13:56. > :14:00.source that is passed will be secretary of state urged colleagues
:14:01. > :14:04.to end this uncertainty because they contribute so much of the Scottish
:14:05. > :14:08.and British economy and if he does not it sends out a strong message he
:14:09. > :14:13.is willing to use EU nationals as a bargaining chip for a hard Tory
:14:14. > :14:19.Brexit. I agree with one thing that the
:14:20. > :14:24.honourable gentleman said and that is EU citizens who are in Scotland
:14:25. > :14:30.and across the UK are making a very significant contribution to civic
:14:31. > :14:34.life and the economy and as the Prime Minister has repeatedly made
:14:35. > :14:40.clear we want those people to stay and that is a clear message she has
:14:41. > :14:45.sent out and set out clearly in the White Paper. We do not believe the
:14:46. > :14:57.Article 50 bill is the place to set that out. Number 12, sir.
:14:58. > :15:01.Bearing in mind it is a similar question, certainly. My right
:15:02. > :15:04.honourable friend the secretary of state, does he agree with me the
:15:05. > :15:08.business community in Scotland shares a far more positive and
:15:09. > :15:13.optimistic outlook rather than the fun of negative comment coming from
:15:14. > :15:24.the Scottish Government's -- rather than the negative comments.
:15:25. > :15:30.Mr Speaker, I know that businesses across Scotland's value the
:15:31. > :15:36.contribution that EU citizens make to their businesses and I am very
:15:37. > :15:42.clear that even when the UK leaves the EU it will be a portent for EU
:15:43. > :15:47.citizens still to come to Scotland and play an important role in our
:15:48. > :15:50.economy -- it will still be important for EU citizens to come to
:15:51. > :15:55.Scotland. A recent report said 40% of European
:15:56. > :15:58.doctors might leave the UK after Brexit because of the shameful
:15:59. > :16:02.inaction from the Government on giving clear guarantees to EU
:16:03. > :16:08.nationals. While what the UK Government not do the right thing
:16:09. > :16:13.and give that clear guaranteed to EU nationals who are a valued part of
:16:14. > :16:18.our society and they have the right. I am absolutely clear of the
:16:19. > :16:24.importance we place on the role you nationals in the economy and in the
:16:25. > :16:27.health service but I would take what the honourable lady says a lot more
:16:28. > :16:30.seriously in respect of encouraging doctors and other medical
:16:31. > :16:34.professionals to come to Scotland of her Government had not decided to
:16:35. > :16:40.tax them more than any other part of the United Kingdom does my right
:16:41. > :16:45.honourable friend agree with me that, as well as safeguarding the
:16:46. > :16:51.role of EU citizens in the UK after we leave the EU, it is vital we
:16:52. > :16:56.safeguard Scottish people who have gone to live in other parts of the
:16:57. > :17:02.EU as well? I absolutely agree with my
:17:03. > :17:09.honourable friend, it is vital we do secure the position of UK citizens
:17:10. > :17:14.currently in the EU, many of whom are Scottish, and it is perfectly
:17:15. > :17:18.legitimate to take for that issue in conjunction with securing the rights
:17:19. > :17:23.of EU citizens in Scotland and the rest of the UK and I am hopeful that
:17:24. > :17:31.can be dealt with very early in the negotiations.
:17:32. > :17:35.It is quite clear that Government is happy to play political football
:17:36. > :17:40.with these people's lights and they have showed contempt for 12,000
:17:41. > :17:43.people who work and health and social care in Scotland and showing
:17:44. > :17:47.contempt for the 20,000 people working in the food industry which
:17:48. > :17:52.is secretary of state has just been bragging about is the most important
:17:53. > :17:57.part of Scottish industry. When will we stop treating people this way and
:17:58. > :18:00.give them the guarantee they need to continue living a happy and secure
:18:01. > :18:07.life in Scotland? I have been absolutely clear, as has
:18:08. > :18:12.the Prime Minister, how much we value the contribution you nationals
:18:13. > :18:16.make in Scotland, both to the economy and to civic society. We
:18:17. > :18:20.want them to stay but we also want the UK's National elsewhere in the
:18:21. > :18:27.EU to be able to stay where they are as well.
:18:28. > :18:30.Number five. With permission I will answer questions five and plan
:18:31. > :18:33.together. The Government is committed to getting the best deal
:18:34. > :18:38.for Scotland and the UK in negotiations with the EU and the
:18:39. > :18:43.joint ministerial committee on EU negotiations was established to
:18:44. > :18:45.facilitate engagement between the UK Government and devolved
:18:46. > :18:51.administrations and have had constructive discussions in monthly
:18:52. > :19:00.meetings since November. At the last meeting of the JMC the
:19:01. > :19:03.Prime Minister committed to intensified negotiations with the
:19:04. > :19:07.Scottish Government on EU proposals, can he update the house underscores
:19:08. > :19:12.Mac one I appeared last week before the Scottish Parliament's you'd
:19:13. > :19:19.committee I was able to tell them in the two weeks since the JMCP six
:19:20. > :19:23.substantive meetings had taken place between senior officials in order
:19:24. > :19:27.for both governments to be able to discuss the proposals set out in
:19:28. > :19:31.Scotland's place in Europe document. We regard this as a serious
:19:32. > :19:40.contribution to the debate and continue to engage with it.
:19:41. > :19:48.May I drop a pension -- may I draw attention to the committee has been
:19:49. > :19:53.taking great interest in the relationships within the United
:19:54. > :19:57.Kingdom and we produced a report in December that I commend to him and
:19:58. > :20:01.the main thrust of that recommendation is not about
:20:02. > :20:05.structures and institutions, it is about natural adversarial sitting
:20:06. > :20:10.down together and developing relationships and bonds of trust and
:20:11. > :20:15.understanding. Mr Speaker, I very much take the
:20:16. > :20:22.work of the honourable gentleman's committee seriously, despite what
:20:23. > :20:26.often appears in the media, it is possible for the two governments to
:20:27. > :20:30.engage in a constructive way and there are many areas in which we are
:20:31. > :20:36.already in agreement on issues contained within the Scottish
:20:37. > :20:41.Government's document. It is not just a matter of trying to
:20:42. > :20:47.keep the EU National in our health and social care service, the
:20:48. > :20:51.workforce is the biggest challenge NHS Scotland faces, so will the
:20:52. > :20:56.Secretary of state support Scotland having the powers to attract EU
:20:57. > :21:04.nationals in the future, not just the ones covered with your? -- the
:21:05. > :21:10.ones currently here. I have previously said at this box I
:21:11. > :21:15.do not support the devolution of immigration powers to the Scottish
:21:16. > :21:18.Parliament but I do support a ring -- support arrangements that would
:21:19. > :21:24.ensure those vital work as Scotland's needs in areas that are
:21:25. > :21:30.depopulating and in skill areas and areas of relying on seasonal
:21:31. > :21:35.workers, to come to Scotland. Earlier the secretary of state
:21:36. > :21:38.refused to confirm the Scottish fishing and Scottish agriculture
:21:39. > :21:43.would become the responsibility of the Scottish Parliament. Can I ask
:21:44. > :21:47.when his department will present to the JMC a list of powers that will
:21:48. > :21:51.be devolved to the Scottish Parliament after Brexit, well he
:21:52. > :21:58.refused to do so and simply follow instructions from Number ten?
:21:59. > :22:03.What I want to do and have attempted to do is engage in a constructive
:22:04. > :22:06.discussion and dialogue with the Scottish Government and Scottish
:22:07. > :22:13.Parliament about how we repeat rates powers back from Brussels --
:22:14. > :22:17.repatriate powers back. I do not seek to make a political point that
:22:18. > :22:22.this is an attempt to destabilise the Scottish Parliament because I
:22:23. > :22:27.know when this process is complete that Scottish Parliament will have
:22:28. > :22:34.more powers than it does today. Number six, Mr Speaker. With
:22:35. > :22:39.permission, I will ask a question six and seven together. Sales from
:22:40. > :22:45.Scotland to the rest of the UK are worth nearly ?50 billion, a figure
:22:46. > :22:49.increased by over 70% since 2002 and is for prime is greater than the
:22:50. > :22:57.value of exports from Scotland to the EU. -- four times greater. It is
:22:58. > :23:01.no doubt the UK is the vital economy for Scotland. Does he agree with
:23:02. > :23:05.should not create barriers or anything to impede the function of
:23:06. > :23:10.the UK domestic market as we leave the EU, given the vital importance
:23:11. > :23:17.of vested economy of Scotland? I could not agree more with my
:23:18. > :23:22.honourable friend and I find it very strange those who make such a fuss
:23:23. > :23:26.about the EU single market seemed to have a complete disregard for a
:23:27. > :23:33.market that is four times as large to Scotland's economy.
:23:34. > :23:38.Given Scottish whiskey is the largest net contributor to the UK's
:23:39. > :23:48.balance of trade and goods is the secretary of state encouraged every
:23:49. > :23:53.move from the single market to the WTO arrangements were stable have a
:23:54. > :24:00.zero tariff? It is important to note there is a zero tariff under WTO for
:24:01. > :24:06.Scotch whiskey bottle in relation to our future relationship with the EU
:24:07. > :24:11.the Prime Minister has made it clear we want to negotiate a free-trade
:24:12. > :24:18.agreement with the EU and that would be enormously to the benefit of the
:24:19. > :24:22.whiskey industry. All this UK's single market business
:24:23. > :24:30.is all quite interesting but is he trying to suggest it Brexit isolated
:24:31. > :24:38.UK desperate for friends and any trading partners would not trade
:24:39. > :24:42.with an independent Scotland's what I am suggesting is if an independent
:24:43. > :24:49.Scotland was to put up tariffs and barriers with its largest trading
:24:50. > :24:54.partner that is vital for four times as much of its economic development
:24:55. > :25:00.as the EU, that would be a disaster this series of events.
:25:01. > :25:10.How is job creation in Scotland affecting the Scottish economy?
:25:11. > :25:16.It is vitally important, Mr Speaker, both the UK Government and Scottish
:25:17. > :25:19.Government work together to maximise the number of jobs created but it is
:25:20. > :25:25.clearly one thing the Scottish Government could do which would most
:25:26. > :25:28.help job creation in Scotland is to take the suggestion of a divisive
:25:29. > :25:36.independence referendum off the table.
:25:37. > :25:39.The secretary of state previously told the Scottish Affairs Committee
:25:40. > :25:43.he attends Cabinet Brexit meetings based on whether he thinks the
:25:44. > :25:48.agenda items are important to Scotland. Can he tell the house
:25:49. > :25:54.which Brexit policy areas he thinks are important to Scotland and which
:25:55. > :26:00.are not? I also made clear to that committee
:26:01. > :26:05.it was not appropriate to give a running commentary on the
:26:06. > :26:10.Government's internal discussions on Brexit. What I have committed to do
:26:11. > :26:12.is deliver the best possible deal for Scotland in these negotiations.
:26:13. > :26:33.Questions to the Prime Minister. I'm sure the people here would like
:26:34. > :26:37.to join me in wishing the people across the world a happy St David's
:26:38. > :26:42.Day. I'm sure the whole house will also want to join me in paying
:26:43. > :26:47.tribute to our former colleague, Sir Gerald Kaufman, who died over the
:26:48. > :26:52.weekend. He was an outstanding MP who dedicated his life to the
:26:53. > :26:53.service of his constituents. As father of the House,