01/03/2017 Scottish Questions

Hello and very warm welcome to Westminster for March's Scottish

Questions. It is of course the first of March today, the official

beginning of spring. While we're looking at our calendars we are one

week away from the Budget here at Westminster and this will also be

the final Scottish Questions before Theresa May triggers Article 50 to

begin the formal negotiations for the UK to leave the European Union.

So you won't be surprised when I tell you that Brexit and the

possible constitutional implications for Scotland featured prominently.

Here is how proceedings got underway.

THE SPEAKER: Order, questions to the secretary for Scotland. Mr Argar.

Thank you very much, Mr Speaker. The Chief Secretary

to the Treasury attended a Joint Exchequer Committee

with the Scottish Government's Cabinet Secretary for Finance

and Constitution in November. They discussed the ongoing work

between both Governments There are, of course,

regular and ongoing discussions between officials from both

Governments. Does my honourable friend agree

that these taxation powers, coupled with other powers that have

been devolved to Holyrood, make it one of the most powerful

devolved Parliaments in the world? Does she also agree that,

quite rightly, they make the Scottish Government accountable

for their actions in respect of taxation,

and that the Scottish Government are responsible for making Scotland

the most highly taxed part My honourable friend

makes a very good point. The new devolution settlement does

indeed deliver one of the most powerful and accountable devolved

Parliaments in the world, and the people of Scotland will look

to their Government to use those tax powers wisely to make

Scotland as competitive and attractive a place as possible

in which to do business. We, obviously, want the Scottish

Government to use those powers to deliver that and it is for them

to choose how they use them, but they do have

to account for their use Does my honourable friend

share my confusion that the Scottish Government prefer the narrative

of whinge, whine and waffle to using the powers that this

Parliament has given them to prove their competence

in running the country? from many of my conversations

with businesses - particularly those thinking about their plans

for the future, especially since the referendum last year -

that they often see competitiveness through the prism of tax

and that they want to know the Government are entirely focused

on creating the conditions in which businesses

can grow and thrive. I really think that all of us need

to focus on pursuing our plans to make our respective

countries very competitive. In Scotland, the Government have

to understand that the decisions they take about using their powers

are part of such The Tories at Westminster

are facing rebellion on their Back Benches

on business rates. What advice are they taking

from the Government in Scotland, who have listened to local

businesses and put on a cap of 12.5% for businesses in the hospitality

sector and particularly those in Aberdeen that have been hard

hit by the oil price? I think that is just an attempt

to make a political bragging point. My right honourable friends

the Chancellor of the Exchequer and the Secretary of State

for Communities and Local Government have made it quite clear

that they will have more They are listening carefully

to the concerns of particularly the smallest businesses and of those

hardest hit by business Will the Minister explain to me

how, simultaneously, the Scottish Government can,

first, be not using the taxation powers they have and, secondly,

be the highest taxed part of the country, particularly

when neither of those It is for the Scottish Government

to account to the Scottish These points might be interesting

ones to bring to Westminster and knock about in this Chamber,

but real people are looking at the impact of those plans

on their family income and the Scottish Government

will have to account It is far more than

just a debating point. Does the Minister agree

that the Scottish Government's decision to make Scotland the most

highly taxed part of the United Kingdom will reduce

the country's competitiveness and, ultimately, make

Scotland a less attractive place in which to live,

work or do business? It is for the Scottish Government

to use the powers that have been devolved to them and to account

to their people for using them, but there is no doubt that people

look at the competitiveness of tax regimes, whether personal

or business, and that those regimes are important in the key decisions

that people make about Following the EU referendum,

Scotland Office Ministers have regularly met representatives

of Scottish industry and business. What comes out clearly

is the appetite to seize and make a success of the opportunities

afforded to us by leaving the EU, forging a new role for ourselves

in the world to negotiate our own trade agreements and be

a champion for free trade. I am a bit scared to ask my

supplementary question because I think my Scottish National

Party colleagues have had three My question is about exports,

of which Scotland has made a fantastic success,

particularly in food and drink. How confident or worried should

we be if we come out of Europe that those markets will be damaged,

and what can the Government My honourable friend is absolutely

right to highlight food and drink as Scotland's top manufacturing

export, accounting for Leaving the EU offers us

the opportunity to negotiate new trade deals across the globe

and create even more opportunities for Scotland's

world-renowned food and drink. Agriculture and fisheries are key

parts of the Scottish economy Powers for both are devolved

to the Scottish Government. Under the Secretary

of State's Government's plans, will all decisions on agriculture

and fisheries be taken by the Scottish Parliament

and the Scottish Government after As the right honourable gentleman

knows, the Government have confirmed in the White Paper that

all the powers that the Scottish Parliament currently exercises

in relation to agriculture, fisheries and all other

issues will continue. We wish to have a dialogue

with the Scottish Government, the other devolved administrations

and stakeholders about what happens to powers that are currently held

in Brussels and where they will rightly rest after the

United Kingdom leaves the EU. Anybody watching this will realise

that the Secretary of State did not During the Brexit referendum

campaign, people were told that decisions currently taken

in Brussels on agriculture and fisheries would revert

to the Scottish Parliament. The Secretary of State has not given

a clear answer to the question, which really matters to our rural

industries, our rural economy Let me try the same question

again, and I would be grateful if the Secretary

of State answered it. Under his Government's plans,

will all decisions on agriculture and fisheries be taken

by the Scottish Parliament and the Scottish Government

after Brexit - yes or no? This Government's plan is to engage

with the Scottish Government and with the other devolved

administrations to discuss It is not to go out and tell

the people of Scotland that the devolved settlement

is being undermined by Brexit, which will lead to the Scottish

Parliament exercising more powers. I can give the right

honourable gentleman an absolute guarantee that,

after the United Kingdom leaves the EU, the Scottish Parliament

and Scottish Ministers will have Before I ask a question,

I take the opportunity to send my condolences to the family

of my great comrade, Gerald Kaufman, On 12 October, the Secretary

of State stood at the Dispatch Box and said, "whatever support is put

in place for businesses in the north of England will apply

to businesses in Scotland." That was in relation

to the deal struck with Nissan. I associate myself with

the honourable gentleman's comments He was a near neighbour of mine

in the previous Parliament and I always found him to be

the perfect gentleman. In relation to the approach this

I made it clear in previous answers that the Government's

approach will be consistent across the United Kingdom.

I thank him for the reply, but can I ask While some businesses

and workers are aware of that welcome reassurance,

I have yet to meet any businesses in Scotland that know

about the commitment to give them the same deal

Why has the Secretary of State not been more public

Why is it the best kept secret in Scotland?

I have made it clear to the honourable gentleman how

the UK Government are approaching the Brexit negotiations and how

we are fully engaged with businesses in Scotland to ensure

We can go forward on a basis that will ensure that Scotland

and the whole United Kingdom get the best possible deal

THE SPEAKER: Ms Tasmina Ahmed-Sheikh.

Scotland's international exports have increased by 41%

since the Scottish National Party Government came into office in 2007,

which is a fantastic success story for Scotland.

Will the Secretary of State therefore explain why the UK

Government failed to negotiate any geographical indications

for Scottish produce in the EU-Canada CETA trade deal?

I hope the honourable lady's approach on the EU-CETA trade deal

is more consistent than that of her parliamentary group.

On the Monday of the week when the Canada deal was discussed,

By the Wednesday, they somehow found that they were against.

THE SPEAKER: Seema Kennedy. This is a question about the draft Scottish

Government. As I have mentioned,

the Chief Secretary to the Treasury has regular engagement with

the Scottish Government's Finance They discussed matters relating

to the Scottish Government's budget for 2017-18 at a joint Exchequer

committee in November and at a Finance Ministers'

quadrilateral in February. What does my honourable friend

believe will be the consequences of the Scottish Government

using their new powers for the Scottish economy to make

Scotland the most highly taxed part Colleagues are rightly focused

on tax and competitiveness. The increased tax powers delivered

through the Scotland Act 2016 mean that the Scottish Government have

responsibility for raising It is for them to decide how

to use those tax powers to shape Scotland's economy,

growth and jobs. I might not like their plans to make

Scotland a higher-tax nation - it is up to them -

but they have to explain those plans The publication of this year's draft

Scottish budget had to be delayed because the Chancellor

of the Exchequer did not make financial information available

until the Autumn Statement. What impact will the move

to the autumn Budget have on the Scottish Government's ability

to plan effectively There are many good reasons

for moving to a single fiscal event in the autumn - allowing

for longer-term planning On the subject of planning

for the long term and increasing certainty, I would add that taking

the threat of a second referendum off the table is the single

biggest thing that the SNP and the Scottish Government could do

for certainty and confidence among This is a question about the

exciting of EU nationals. I have regular conversations with

the Secretary of State for Exiting The UK Government have

made it absolutely clear in their White Paper that securing

the rights of EU citizens in the UK and of UK citizens in the EU is one

of our top priorities The Secretary of State's answer

is not very reassuring given the speculation about a potential

cut-off date for EU The other place will vote

on an amendment today that will secure the residency rights

of EU nationals. If that is passed, will

the Secretary of State urge his colleagues to end this

disgraceful uncertainty on residency rights for EU nationals,

who contribute so much If he does not, he will send out

a very strong message that he is willing to use the lives

of EU nationals as a bargaining chip I agree with one thing

the honourable gentleman says: EU citizens in Scotland,

and indeed in the whole United Kingdom, make a significant

contribution to civic life As the Prime Minister has

repeatedly made clear, She has sent out a very clear

message, and it is clearly set We do not believe that the

withdrawal from the European Union (Article 50) Bill is the place

to set it out. I will certainly bear it in mind

that it is a similar Does my right honourable friend

the Secretary of State agree that the business community

in Scotland shares a far more positive and optimistic outlook,

rather than the forever-negative comments from the

Scottish Government? I know that businesses

across Scotland value the contribution that EU citizens

make to their businesses, and I am clear with them that even

when the UK leaves the EU, it will be important for EU citizens

still to come to Scotland and play A recent report from

the British Medical Association shows that 40% of European doctors

might leave the UK after Brexit because of the Government's shameful

inaction on giving a clear guarantee Why will the UK Government not do

the right thing and give a clear guarantee to EU nationals,

who are a valued part of our society in Scotland,

that they have the right to remain? I am absolutely clear

about the importance we place on the role of EU nationals

in the economy and the health service, but I would take

the honourable lady's comments about encouraging doctors and other

medical professionals to come to Scotland a lot more seriously

if her Government had not decided to tax them more

than any other part of the UK. Does my right honourable friend

agree that as well as safeguarding the role of EU citizens in the UK

after we leave the EU, it is vital that we safeguard Scots

people who have gone to live I absolutely agree

with my honourable friend. It is vital that we secure

the position of UK citizens in the EU, many of whom are Scots,

and it is perfectly legitimate to take forward that issue

in conjunction with securing the rights of EU citizens

in Scotland and the rest of the UK. I am hopeful that that can be dealt

with very early in the negotiations. It is clear that the Government

are happy to play political football It shows contempt for 12,000 people

working in our health and social care service in Scotland

and for 20,000 people working in the food industry,

which the Secretary of State has just bragged is the most important

part of Scottish industry. When will he stop treating these

people this way and give them the guarantee they need to live

a happy and secure life in Scotland? I have made it absolutely clear,

as has the Prime Minister, how much we value the contribution

that EU nationals make in Scotland to both

the economy and civic society. We want them to stay,

but we also want UK nationals elsewhere in the EU to be able

to stay where they are. The Government are committed

to getting the best deal for Scotland and the UK

in the negotiations with the EU. The Joint Ministerial Committee

on EU Negotiations was established to facilitate engagement

between the UK Government and devolved Administrations and has

had substantive and constructive discussions in monthly

meetings since November. At the last meeting of the JMC,

the Prime Minister committed to an intensified engagement

with the Scottish Government Can he update the House

on that process? When I appeared last

week before the Scottish Parliament's Culture,

Tourism, Europe and External Relations Committee,

I was able to tell it that in the two weeks since the plenary

meeting of the JMC, six substantive meetings had taken place

between senior officials so that both Governments could discuss

the proposals set out in the document,

"Scotland's Place in Europe". We regard this as a serious

contribution to the debate May I draw my right honourable

friend's attention to the fact that the Public Administration

and Constitutional Affairs Committee has been taking a great interest

in the inter-institutional relationships within the UK,

that we produced a report in December on this subject,

which I commend to him, and that the main thrust

of the recommendations are not about structures and institutions

but about natural adversaries sitting down together and developing

relationships and bonds Obviously, I very much take my

honourable friend's work seriously. Despite what often appears

in the media, it is possible for the two Governments to engage

in a constructive way. We are already in agreement on many

issues in the Scottish It is not just a matter of trying

to keep the EU nationals who are currently in our health

and social care service. The workforce is the biggest

challenge that NHS Scotland faces, so will the Secretary of State

support Scotland having the powers to attract EU nationals in future,

not just keeping the ones I have said previously from this

Dispatch Box that I do not support the devolution of immigration powers

to the Scottish Parliament, but I do support arrangements that

will ensure that the vital workers needed in depopulating areas,

skilled areas and in areas that rely on seasonal workers can

come to Scotland. Earlier, the Secretary of State

refused to confirm that Scottish fishing and Scottish agriculture

would become the responsibility When will his Department present

to the Joint Ministerial Committee a list of powers that will be

devolved to the Scottish Parliament after Brexit, or will he refuse

to do so and simply follow What I want to do and what I have

attempted to do is engage in a constructive discussion

and dialogue with the Scottish Government and the Scottish

Parliament about how we repatriate I do not try to make a serious

and wrong political point that this is an attempt to destabilise

the Scottish Parliament, because I know that when the process

is complete, the Scottish Parliament will have more powers

than it does today. Sales from Scotland to the rest

of the UK are worth nearly ?50 billion, a figure that has

increased by over 70% since 2002 and that is four times greater

than the value of exports There is no doubt that

the United Kingdom is the vital Does the Secretary of State agree

that we must not create barriers or do anything to impede

the functioning of the UK domestic market as we leave the EU,

given its vital importance I could not agree more

with my honourable friend. I find it strange that those

who make such a fuss about the EU single market seem

to have a complete disregard for a market that is four times

as large to Scotland's economy. Given that Scottish whisky

is the largest net contributor to the UK's balance of trade

and goods, is the Secretary of State encouraged by the fact that

if we move from the single market to World Trade Organisation

arrangements, Scottish whisky It is important to note

that there is a zero tariff As to our future relationship

with the EU, my right honourable friend the Prime Minister has made

it absolutely clear that we want to negotiate a free trade

agreement with the EU, which would be enormously

to the benefit of the All this UK single market business

is quite interesting, but is the Secretary of State trying

to suggest that a Brexitised isolated UK, desperate for friends

and any trading partners, would not trade with

an independent Scotland? What I am suggesting is that

if an independent Scotland were to put up tariffs and barriers

with its vital largest trading partner, which provides four times

as much economic development as the EU, that would be

a disastrous series of events. How is job creation in Scotland

affecting the Scottish economy? It is vital that both the UK

and the Scottish Governments work together to maximise the number

of jobs created, but it is clear that the one thing

the Scottish Government could do to help job creation in Scotland

most is take the suggestion of a divisive independence

referendum off the table. The Secretary of State previously

told the Scottish Affairs Committee that he attends Cabinet Brexit

meetings based on whether he thinks the agenda items are

important to Scotland. Will he tell the House which Brexit

policy areas he thinks are important to Scotland and which areas

he thinks are not important? I also made it clear to that

Committee that it was not appropriate to give a running

commentary on the Government's What I am committed to do

is delivering the best possible deal for Scotland in these

Brexit negotiations. I'm afraid that's all we've got time

for at the moment. The next Scottish questions is on 28th of April. By

then Article 50 will have been triggered to leave the EU. We will

see what impact that has on the Scottish constitutional debate. For

know, The idea of having hot running water

and inside toilets - I have my own path to follow.

Destiny. The very embodiment of the England

that must emerge.