10/06/2013 Scottish Conservative Party Conference

Conservative conference. These are interesting times for the party.

Challenges on the white from UKIP have undermined Westminster

backbench confidence in David Cameron's leadership. Meanwhile, the

Scottish leader has been under fire. Having stood under a policy of no

more devolution, she has now set up a commission under Lord Strathclyde

to investigate more devolution. This was a policy of defeating leadership

rival Murdo Fraser. And then at the end, an unlikely visitor. First up,

the prime minister. Dealing with our debts is not some optional extra, it

is a necessity. The argument of the head is clear. We know the risks if

we keep on running a massive deficit. You can't borrow your way

out of a debt crisis. Do you know how much we spent on servicing, just

servicing Labour's debt last year? �47 billion. That is equivalent to

the entire NHS budget in Scotland for the next five years. We should

not be leaving these debts to our children. The next national

challenge that our party must take on is firing up enterprise, hoping

an economy that creates well-paid jobs, a match for any where in the

world. They sometimes say we are the party of those at the top of the

ladder, but that is not true. We are the party of those who want to climb

it. That is why my government is pulling out all the stops for them.

Corporation tax has been slashed. Jobs tax has been stopped. Broadband

money has been rolled out. Edinburgh will soon be a super connected city,

with Aberdeen and Perth not far behind. In the last three years,

82,000 small businesses have been created in Scotland. Our third

challenge is sorting out welfare. Here are three facts. Fact one dash

our welfare system has become unaffordable. Last year, we spent

�24 billion on housing benefit alone. That is a lot more than we

spent on Doctors' salaries in our NHS. Fact two - it has become

unsustainable. One in every �7 we spend is spent on working age

benefits. Not pensions, but benefits for working age people. Act three

minus nine it has become unfair. For years now, the income of those on

benefits has risen faster than on wages. That is why we are rolling

out the benefits cap so that a family on benefits can't earn more

than the average family in work. In this party, we know the value of

work, the purpose it gives you, the dignity it brings, the satisfaction

of that paycheque at the end of the month. There was one more challenge

to meet - keeping our United Kingdom together. Let's look at the debate

so far. We said we are better together as one economy with a

shared currency. Alex Salmond said no, let's go our separate ways, but

keep the pound. How does that work? Has Alex Salmond not seen what has

happened in Europe over the past two years? You can't make a currency

union work without a political union. We said we are better

together, to protect jobs in Scotland's defence industry. Alex

Salmond said no, we are scaremongering. But what is the

evidence? There are 12,000 people employed across Scotland by defence

companies, backed by a British defence budget that is the fourth

largest in the world. We said our banking system is better together.

Again, Alex Salmond said no. Listen to this. Cyprus's banking system was

seven times the size of its economy. Iceland's banking system

was nine times the size of its economy. I don't have to remind you

what happened there. Do you know how big Scotland's banking system would

be if we were to separate? It would be 12 times the size of the Scottish

economy. If there is one thing we have learned from the financial

crisis, you can't have banks that are too big to fail. Our United

Kingdom's history has always been one of shared endeavour, proud in

our individual identities, but working together for a common good.

We saw it when our soldiers fought together under one flag on the

beaches of Normandy. We saw it when our doctors came together to build

one NHS. We saw it in the scientific breakthroughs we have made

together, from the television to penicillin, and we saw it last

summer as athletes from around Britain, no matter where they were

from, draped themselves in one flag. And there is so much more to come.

Why wouldn't we want to face the future together? There is no

challenge we face today were breaking up Britain is the right

cancer. David Cameron's defence of the union was echoed by a guest, the

chairman of better together, Alistair Darling. This is a

different campaign to the one that most of you are used to fighting. In

a general election, you vote for a government and if you don't like

them after five years, you can vote them out. This campaign is

different. The Nationalists only need to win once, by one vote. After

that, there is no going back. Nothing will be the same again. That

is why it is important that not only do we win this referendum campaign,

but we win it well. I will not be put off asking questions of the

nationalist case. When you ask questions of the Nationalists, they

say it is negative or scaremongering. Scaremongering

actually means you have asked Alex Salmond a question to which he

doesn't know the answer. The reason we are entitled to ask these

questions is if anyone came to you and said, I have a proposition that

will change your life for ever and nothing will be the same again, you

are tired to say, tell me why. Does your argument back-up? I would never

argue that Scotland could not go it alone, but I do argue that to be

dependent on 20% of your tax revenues from one source, North Sea

oil, which will inevitably diminish over time, seems unwise. Look what

happened to this country, which was so dependent on financial services

for its revenue. When the crash came, it made a huge hit to our

public finances. Take renewable energy. It only exists because of

the UK subsidy. We in Scotland pay 10% into our subsidy and get a third

of the benefit back. Does anyone honestly think that the rest of the

UK would take the same view if Scotland was a foreign country? It

would not do so. In relation to defence, I can't understand the

nationalist logic of saying that they will join NATO after a lifetime

against it, but the one country with which we have a close link, we want

to break our forces away from the rest of the British Army. It makes

no sense. These are issues that will be looked at over the next few

months. My last point is this. I said that this referendum campaign

is different from an election campaign and the stakes could not be

higher. Another thing is different, too. This campaign still has 17

months to go. These opinion polls are all very nice and encouraging.

As Scottish Conservatives, I am sure you know exactly what it is like to

be ahead in the polls(!). It is a great feeling for you. But there is

a long way to go, and we need everyone, whether in a political

party or not, who believes in the case for staying in the UK to make

that case. We need every vote. This time, it is not just the votes in

the key marginals, it is the votes in every part of Scotland. That is

why we need your effort. Brian, some Conservatives argue that if there is

a no vote next year, it will be their victory, but will it? That is

the customary bragging one gets at a party conference. They will scarcely

come to a conference and say they are bystanders in a campaign to save

the union. The second word in their name is Unionist, after all. So in

the better together campaign, they will be working with other parties,

and in the case of labour, with a larger party. The campaign is being

led by the former Labour Chancellor, Alistair Darling. So they will be

prepared to claim a share of the games, should they win the contest.

As far as aeroplanes are concerned, a separate Scotland might get 14

fast jets. The defence debate returned to a familiar theme. If you

are being charitable, a couple of Hercules and some Apaches.

much, and they could all be based in about a quarter of Lossiemouth, so

what will happen to the rest of it? Turning to the Navy, if you look at

what parts Mr 10%'s naval force might get, there are currently two

assumptions. If he gets 10%, he will get a landing craft. For six

destroyers, you will get one for six months of the year. There are 13

frigates, so now Mr 10% has one ship. Good news. And there are two

aircraft carriers being built. I am not sure what 10% is, probably a

propeller. So we have a navy that consists of one ship, one half ship

for half a year and a presidential barge - I mean, landing craft.

Westminster education secretary Michael Gove returned from London to

his native Scotland to bat for Britain. We are going to win the

referendum next year on Scotland's place in the UK. We will win because

Scottish Conservatives have put forward the most coherent,

compelling and convincing case for our United Kingdom over the years.

When it comes to that momentous day next year, when people vote, as I am

convinced they will, to keep this kingdom united because we are better

together, it will be our victory, because our party has argued the

Unionist case undimmed for years. And our party is arguing the

Unionist case with greater passion than ever before now. Why am I

convinced we can win? Because I think the good sense of the Scottish

people when presented with a proposition as to whether we should

end 300 years of history, whether we should end a partnership that has

been a force for good across the world, will say emphatically, no.

And one of the reasons I am convinced is that the case for the

maintenance of the UK is one that is borne out of optimism, hope and

generosity. If Scotland chose to become independent, thanks to the

native good sense of its people, Scotland could survive as an

independent nation. Scotland has great universities. My mum used to

work in one of them. Scotland has great schools. I and my sister were

educated in them. Scotland has great businesses. My dad used to run one

will stop so there is no question that Scotland could survive if it

were independent. Don't let anyone talk Scotland down. We never have

and never will. But while Scotland could survive as an independent

nation, Scotland is stronger, and in particular, Britain is better when

we stand together. I don't want Scotland to be an independent nation

because I think England and the rest of the UK benefit from the fact that

we are stronger together. This is at the heart of my commitment to the

UK. I don't want my children to grow up thinking granny and grandad are

foreigners. I don't want my children to grow up thinking the country

their dad was born in is a foreign land. And I don't want my children

to grow up in King that 300 years of proud history has ended because a

narrow nationalist vision trumped the generosity of spirit that has

characterised these islands throughout our lifetimes. The next

question is what might happen if independence is rejected. Should

there be more powers for the Scottish Parliament, or are the

current powers more than enough? Ruth Davidson set up a commission to

discuss that, but some delegates were angry as there was no debate on

the conference floor. So it came to a head at a meeting organised by the

I would like to state giving more powers is not appeasement, it is

not conciliation, it is sound Government for Scotland. If you

want more Conservatives in Scotland, lower taxes, genuinely responsible

parliaments, you need to stop us being bailed out by the English,

you need to have Conservative MSPs to argue for these things. Revival

for the Scottish Conservative party requires us to embrace devo-plus.

That is not the debate we should be having now. Let's get through the

independence referendum and then have that debate. This is what Alex

Salmond wants the Unionist parties to do. He wants them to start a

bidding war to give him more powers. By all means let's have a debate

after the referendum on all of the suggestions you have just made. I

would have thought that a party with the word Unionist Int it

should be more concerned with preserving the union ban the party.

I am convinced he is going to lose the referendum next year and I am

convinced the day after he loses it, he will say the people have spoken

at it is clear they all want extra powers even if we could not have a

question about it. I am off to London to lead the negotiations

until the next election. That is why we need more detail. We need

more detail on the process that we follow to take that leadership away

from him because that leadership should not be led by a nationalist,

but a Unionist. We should not be handing gifts to Alex Salmond and

weep if we start this bidding war, he will come at the winner. On the

other hand Alex has said I am convinced we will win the

referendum. I am convinced we will win it. As a responsible party we

cannot afford to be reactive, wait until we win and then say, what do

we do now? We have to start the generic process of preparing post

referendum when we have one and what kind of Government we want in

Scotland when we have got this off the agenda and seen off the SNP

hopefully for a decade or more. are forgetting the man in the

street. The man in the street is not bothering about all the

subtleties about what we will decide in advance of the referendum.

He wants to have the referendum decided. I tell you party activists

will be disillusioned and will get fed up if you are all going to

start discussions in advance of what changes there will be to

Scotland. I think we are coming back this up the wrong way. This is

a debate we are having in Scotland that has been mirrored in every

family across Scotland. When we have this referendum next year and

we get the result we need, we should not be frightened to sit

down with all parties because we have done it during this referendum

campaign, worked together, proved we are better together and worked

out what is best for Scotland. Less not be frightened about it. Anyone

who is here who has got a family and says we never talk about giving

power to your family, you are a liar. What we have got already is

perfectly adequate but with the problems of education and health.

They have to sort it out. But we still lack accountability. He wants

his kids educated and his granny treated in hospital, the person in

the street. When we say, our party is going to reduce tax and provide

you with a first class service and get the economy moving in Scotland,

we cannot do that in Scotland. We can do it in England, but we cannot

do it in Scotland because we have got limited powers over taxation

and spending. The limited powers we have got, we never used. This was

the party that opposed devolution in the 1990s. How much unhappiness

is there amongst grassroots members about the party changing position?

There is a huge degree of uncertainty among the Conservatives

as to what to do in the event of no vote. There are those who are

hostile to the idea of more powers. There are at those who are

sceptical about the idea. They frankly wish the world was other

than it is and they wish this was not the agenda. They were against

devolution in the first place. But there are at those who are

enthusiastic for the proposal because they believe if he

broadened the cambers of the powers of the Scottish Parliament, you can

paint a conservative picture and you can make an offer that involves

low-tax and Lowes spent, but you can only do that if you have the

powers available in the first place. The party is honourably divided,

but it is divided. Friday afternoon saw a smaller audience at a session

dedicated to the future of the party.

This is an extra session because we had such a great Conservative

Future conference a few weeks ago in Edinburgh. We had over 100 young

people and the calibre of those young people is absolutely superb.

First up was Jamie Walker who told of his reaction when his mum died.

I made a promise to my mum in 2010 that I was going to make her proud.

I have been with cancer research as an ambassador and have done a lot

of work in key policies in the area of health. I have co-founded the

Stirling University students Against Cancer Society. Since my

mum died, her illness has had a significant impact upon myself and

I am not going to let her down. were attracted to the Conservatives

because we were doing something for cancer patients. In Scotland we are

three times less likely to get drugs than those in England. It is

an inequality, there is no denying it. Jamie is 18 years old and this

is what he has done already. Show your appreciation. You are from a

slightly different background, you are on order, you are in your

twenties, and you work at the JobCentre in dandy. Why did you end

up coming to us? I was fortunate enough to be brought up in a

politically neutral background and was allowed to make my own choices.

I did not have too much of an interest in politics until I

started working as an adviser in the JobCentre. You are face to face

with unemployment and labour reform and face to face with all the

problems in society. The previous Government had a system in which

idleness was rewarded. If you were out of work long term, we will give

you more money. People would come in with no intention and no

ambition to work. I would try and promote work and bettering

themselves and the opportunities and they would look at me as if I

had two heads. There was no responsibility on their behalf.

Whereas now the Conservative Government have come in and it is

very much rewarding those who want to work, giving financial

incentives to those who want to create opportunities for themselves.

It is a fairer welfare system which is in place and I am face-to-face

with that every day. You have had people that have been unemployed

for how long? 1976 is my record. Have you manage to get them back

into work yet? We have signposted them to a provision. They are on

the road back into the workplace. Given the attention there has been

about Ruth Davidson's change of position on devolution, it was

significant that David Cameron endorsed her strongly. She was not

born into the Conservative Party, she chose it. She understands we

have to be a party for all of Scotland, not afraid to look at how

devolution can be improved. We are the Scottish Conservative and

Unionist Party. We believe in Britain. But we put Scotland first.

In doing so we seek to ask ourselves two questions. What kind

of Scotland do we want to build? What kind of party do we want to

be? We can talk to ourselves as perhaps we have too often in the

past all we can have an open conversation with the people of

Scotland about how we can meet their aspirations. We can hold on

to the old ways and follow a path of slow decline, or we can choose

to do something about it. We can choose to turn it around, choose to

build a modern, Scottish Conservative party that speaks to

the aspirations of mainstream Scotland. Scotland has moved on and

we have to move on as well. No vote next year will not be a vote for no

change. Scotland needs to change. A parliament that is more accountable

to the people of Scotland. A Scotland that stands on its own two

feet, but which does not stand on its own in the world. We need to

find a devilish and settlement in Scotland which is stable and meets

the aspirations of the Scottish people. It is time to resolve this

for generations to come. We must lay the foundations for a stable

and lasting settlement and union between our home nations. We will

advance a set of clear, Conservative proposals for a

stronger, more accountable, more responsible Scottish Parliament

serving a dynamic and self- confident Scotland, proposals which

will have our future prosperity at our core. A coherent Scotland is a

society that flourishes, creating wealth, putting the wages in the

pockets and purses of Scottish people. When we argue for lower

income tax for ordinary Scots the SNP condemn us and claimed it would

cost the Scottish Government money they cannot afford. It would not

cost the Scottish Government a penny because it is not their money.

It is the hard earned cash... It is the hard earned cash of Scotland's

taxpayers and it belongs to them and they will spend it here where

that spending will help secure and generate sustainable Scottish jobs.

The tax powers of the Scottish Parliament must be used in only one

way, to drive down the tax burden in Scotland. As Ruth Davidson done

enough to quieten her critics. has been a difficult spell for Ruth

Davidson because of the devolution question and the uncertainty and

disquiet there is within the party conference and also she was not by

any means the unanimous choice of the party. Most of the party's MSPs

voted for others and that creates circumstances where she is bound to

face difficult it. But some of the grandees point about which he did

does not on occasion? It was notable David Cameron went out of

his way to bolster her which is a sign there was an underlying

problem in the first place. The best comment came from Annabel

Goldie who characterised the critics as to why whilst looking