:00:21. > :00:27.Hello and a very warm welcome to Westminster for February 's Scottish
:00:28. > :00:31.Questions. We may still be seven months away from the independence
:00:32. > :00:36.referendum, but as far as Scottish politics is concerned, everything is
:00:37. > :00:44.being put through a referendum prism. Proceedings here began with a
:00:45. > :00:50.question related to independence. Thank you. I speak to businesses
:00:51. > :00:54.from across Scotland regularly and frequently. We highlight the
:00:55. > :00:58.importance of the decision the Scottish people will make on the
:00:59. > :01:02.18th of September and encourage them to get involved in this important
:01:03. > :01:07.debate. As my right honourable friend the
:01:08. > :01:11.Secretary of State seen the recent intervention of Bob Dudley, the
:01:12. > :01:16.chief executive of British Petroleum which has a major stake in Scotland
:01:17. > :01:21.and whose view should be taken seriously. Does he agree that other
:01:22. > :01:26.business leaders with a big interest in Scotland's future should follow
:01:27. > :01:31.his example and set out clearly the implications and consequences of
:01:32. > :01:36.independence for their employees, shareholders and suppliers?
:01:37. > :01:42.Thank you. I have, indeed, seen and studied the intervention from Bob
:01:43. > :01:53.Dudley yesterday. The terms of that intervention do not surprise me.
:01:54. > :01:55.It's very much reflects the concerns I hear expressed to me when I speak
:01:56. > :01:57.to businessmen and businesswomen across Scotland in representing
:01:58. > :01:59.businesses of all sizes. They tell me the same thing. They see
:02:00. > :02:06.independence as being bad for business. It brings -- brings
:02:07. > :02:11.uncertainty and that is risk and bad for their business in the future.
:02:12. > :02:15.As the Secretary of State had any meetings with Sir Tom Hunter who has
:02:16. > :02:22.been pretty vocal on the whole question? If not, will he have?
:02:23. > :02:27.I recently met Sir Tom Hunter at a business breakfast organised by the
:02:28. > :02:31.Prime Minister in ten Downing St. The honourable gentleman will have
:02:32. > :02:35.seen the recent initiative taken by Sir Tom which is an invaluable part
:02:36. > :02:41.and it sits very well with the efforts of Her Majesty 's government
:02:42. > :02:44.in ensuing there is a solid piece of information to inform the electorate
:02:45. > :02:49.in relation to the decision they are being asked to take.
:02:50. > :02:55.Can the Secretary of State assure the house he is aware of business
:02:56. > :02:59.concerns about the uncertainty posed by an independent Scotland, not only
:03:00. > :03:03.in terms of cut this -- currency, but that borrowing costs and
:03:04. > :03:09.interest rates can be set outside of Scotland?
:03:10. > :03:14.The honourable lady makes the point that was made very eloquently and in
:03:15. > :03:18.a very measured way, I thought, by the Governor of the Bank of England
:03:19. > :03:24.last week in Edinburgh. He made the point that a currency union such as
:03:25. > :03:29.that proposed inevitably involves ceding some degree of national
:03:30. > :03:34.sovereignty. The very opposite of what independence is supposed to be
:03:35. > :03:40.about. You wonder why any nationalist would, in all sincerity,
:03:41. > :03:45.genuinely want one. This week, the Financial Times
:03:46. > :03:50.reported that an independent Scotland should have healthier state
:03:51. > :03:55.finances than the rest of the UK. So far, more than 1200 business owners
:03:56. > :04:02.and directors have declared their support for a yes vote by joining
:04:03. > :04:05.the pro-independence business group. Does the Secretary of State
:04:06. > :04:06.recognise their role in the Scottish economy and welcome their
:04:07. > :04:10.contribution to the referendum debate?
:04:11. > :04:15.I speak to businessmen and businesswomen of all views at any
:04:16. > :04:21.time. The difficulty is, however, that the recent polling exercise
:04:22. > :04:26.taken in the polling -- business community shows that three quarters
:04:27. > :04:29.of people were intending to vote no and that is because they know
:04:30. > :04:35.independence would be bad for their business.
:04:36. > :04:43.All the evidence in recent weeks show there has been a substantial
:04:44. > :04:50.swing to" yes". The polls also show that the public by a majority of 4-1
:04:51. > :04:54.wish to see a debate between the Prime Minister and the First
:04:55. > :04:57.Minister Alex Salmond. How long can the Prime Minister continue
:04:58. > :05:01.supporting everyone else becoming part of the debate but ran away from
:05:02. > :05:06.one himself? Make no mistake, we know exactly why
:05:07. > :05:09.the Nationalists want to see this debate between Alex Salmond and
:05:10. > :05:15.David Cameron and it is because they are trying to set the decision up as
:05:16. > :05:21.being one of a contest between Scotland and England, which it
:05:22. > :05:24.absolutely is not. It is about Scotland's constitutional future and
:05:25. > :05:29.it is to be decided by Scots in Scotland.
:05:30. > :05:32.If my right honourable friend aware that the First Minister dismissed Mr
:05:33. > :05:38.Dudley 's remarks as being a personal opinion? In the light of
:05:39. > :05:42.that, maybe take it that all of those who apparently have subscribed
:05:43. > :05:46.to independence on the business sector can have their opinion
:05:47. > :05:51.dismissed in the same way? I would dismiss nobody 's opinion
:05:52. > :05:57.and I would engage with people of all shades of opinion across this
:05:58. > :06:03.debate. The fact is that Bob Dudley is not a lone voice. He is part of a
:06:04. > :06:05.growing corn -- chorus in the business community in Scotland who
:06:06. > :06:11.highlight the dangers of independence and they say the same
:06:12. > :06:16.thing. It is the risk that comes from the uncertainty regarding the
:06:17. > :06:20.future. Also currency position and membership of the EU. On those two
:06:21. > :06:27.key issues, the Nationalists have got no comfort for business.
:06:28. > :06:32.It is, indeed, welcome as this Secretary of State has said that the
:06:33. > :06:36.chief executive of BP and the outgoing chief executive of
:06:37. > :06:40.Sainsbury's have spelt out concerns about independence. Does the
:06:41. > :06:45.Secretary of State agree that what ever side of the debate you are on,
:06:46. > :06:49.all businesses, voluntary organisations and trade unions have
:06:50. > :06:53.a right to be heard without insult, intimidation or fear of the
:06:54. > :06:58.consequences? I do, absolutely. In that regard, I
:06:59. > :07:03.would commend the efforts of the Scottish Daily Mail who, in recent
:07:04. > :07:08.days and weeks, have sought to highlight the poison that is coming
:07:09. > :07:12.into this debate from some of these cyber interventions. Others in this
:07:13. > :07:18.House have also raised this issue. The truth is, whatever the outcome,
:07:19. > :07:24.we all will have to work together in Scotland for the best future of
:07:25. > :07:29.Scotland and that is not going to be possible if we allow the well to be
:07:30. > :07:36.poisoned in the way that some seem determined to do.
:07:37. > :07:42.Perhaps I will press him further. In fact, business leaders have told me
:07:43. > :07:48.of intimidating the tactics used in an attempt to stop them intervening
:07:49. > :07:51.in the independence debate. One leader of a Footsie company told
:07:52. > :07:59.Robert Preston of the BBC that the Scottish Government, " became very
:08:00. > :08:03.aggressive" when he tried to raise concerns regarding independence. But
:08:04. > :08:10.Dudley of BP was dismissed yesterday by the yes campaign as "a British
:08:11. > :08:14.nationalist" is. Will the Secretary of State join with me in condemning
:08:15. > :08:18.this pattern of behaviour we are beginning to see in Scotland and say
:08:19. > :08:24.in the strongest possible terms that it has no place for us Scots as we
:08:25. > :08:30.debate our future? I can, indeed, agree with that in
:08:31. > :08:35.the strongest terms. She knows as well as I do that these incidents
:08:36. > :08:41.are by no means isolated and we hear them and it totally all the time. I
:08:42. > :08:47.would encourage anybody who finds themselves bullied or intimidated in
:08:48. > :08:57.that way to follow the example of an academic from Dundee University who
:08:58. > :09:01.appeared at a Better Together event and found a Scottish minister on the
:09:02. > :09:06.phone to his employers saying he should be silenced. That is no way
:09:07. > :09:11.to conduct this debate on Scotland's future and it is deplorable.
:09:12. > :09:18.In recent months I met with every local authority in Scotland as part
:09:19. > :09:21.of an ongoing dialogue with local authorities and other stakeholders
:09:22. > :09:29.in Scotland on what the impact of welfare reforms have for them, their
:09:30. > :09:32.services and their tenants. The Minister will know that 80% of
:09:33. > :09:38.households in Scotland affected by the bedroom tax in a home with
:09:39. > :09:46.someone with a bid -- disability, he will know of the mismatch. People
:09:47. > :09:50.voted overwhelmingly against this policy, including his own
:09:51. > :09:53.backbenchers. Will his own government now live legal
:09:54. > :09:56.restrictions on discretionary housing payments to allow the
:09:57. > :10:02.Scottish Government to mitigate the impact of this nonsense of a policy?
:10:03. > :10:06.The honourable lady has a brass neck. She is a member of the
:10:07. > :10:11.Scottish affairs select committee yet fails to take up her place. This
:10:12. > :10:15.issue was debated in detailed yesterday and if she had been
:10:16. > :10:19.present she would know the Scottish Government already have the power to
:10:20. > :10:25.take measures if they genuinely believe there are concerns with
:10:26. > :10:31.welfare policies. I believe the government listens
:10:32. > :10:35.when I point out problems over the withdrawal of the spare room subsidy
:10:36. > :10:38.and what it would cause for tenants. I'm delighted the
:10:39. > :10:45.government has given over for thousand pounds to one council to
:10:46. > :10:50.help affected tenants -- 400,000 pounds.
:10:51. > :10:57.I can commend the honourable gentleman in pointing out the
:10:58. > :11:01.specific issues made on island issues and rural issues. That is why
:11:02. > :11:02.we have come forward with a discretionary housing payment for
:11:03. > :11:17.rural areas. We are in regular dialogue with
:11:18. > :11:22.institutions with regard to funding for Scotland. People are living
:11:23. > :11:26.longer and we all need to save for retirement. Councils are struggling
:11:27. > :11:34.to protect local services because the SNP government is not funding
:11:35. > :11:39.Council Cats fees. Will the Minister stand up for Scottish councils and
:11:40. > :11:43.make representations to met -- relevant ministries to protect
:11:44. > :11:48.councils from this budgetary problem? I note what the honourable
:11:49. > :11:55.lady says. I will ensure her comments on the agenda for our
:11:56. > :11:59.forthcoming meeting. It would be useful if the minister
:12:00. > :12:06.in those discussions would push forward statutory overrides which
:12:07. > :12:09.would help companies manage to a single tier pension because it will
:12:10. > :12:16.have an effect when they are not able to opt out of Serps. The
:12:17. > :12:19.honourable lady is chairman of the relevant select committee and we
:12:20. > :12:28.take her comments very seriously and I will ensure they are part of that
:12:29. > :12:33.discussion. Rising energy bills are a serious
:12:34. > :12:38.concerns for consumers in Scotland and across the rest of the UK. We
:12:39. > :12:41.are sustaining vitals financial support for the most vulnerable
:12:42. > :12:46.consumers and reforms are opening up the market to competition. We are
:12:47. > :12:50.working to ensure suppliers put customers on the cheapest tariff
:12:51. > :12:53.possible. Energy prices have risen
:12:54. > :12:59.dramatically since the coalition came to power and, in rule and
:13:00. > :13:04.island communities, people pay a greater proportion of their income
:13:05. > :13:08.on fuel prices. There was a sevenfold increase last year in
:13:09. > :13:15.people approaching them for advice about mis-selling in the energy
:13:16. > :13:19.sector. Is it now time for manic -- a radical reform of the energy
:13:20. > :13:24.sector and a price freeze until we put the reforming place?
:13:25. > :13:31.I know the honourable lady has taken a long term interest in this and has
:13:32. > :13:34.a notable record on it. The phenomenon of energy price increases
:13:35. > :13:39.is not something that just started in 2010. It was a feature of the
:13:40. > :13:44.years of the Labour government as well and it was a consequence of the
:13:45. > :13:49.reduction of the number of companies operating in the market. That would
:13:50. > :13:54.be a problem that was recreated if we were to undertake her policy of a
:13:55. > :14:00.price freeze. We have already seen the number of energy companies rise
:14:01. > :14:08.from six to 14 but a price freeze would be a real threat to that.
:14:09. > :14:13.We have two governments choosing to side with energy companies. Is it
:14:14. > :14:17.now clear that the only families across the UK can see some relief in
:14:18. > :14:23.their cost of living is a freezing of their bills and a break up of the
:14:24. > :14:29.monopoly of the six energy companies and to vote no in the referendum. I
:14:30. > :14:35.agree with the first part of the prescription. A no vote in September
:14:36. > :14:40.is important. I have to remind him, there was one year in the Labour
:14:41. > :14:44.years where there was an increase of 20% in energy prices and there was
:14:45. > :14:49.no suggestion of a price freeze then. When they were in government
:14:50. > :14:53.they knew the reality. A price freeze would see prices going up
:14:54. > :14:57.before the freeze on going up again afterwards. We are delivering help
:14:58. > :15:04.to vulnerable people in the here and now.
:15:05. > :15:09.Whatever the headline of the average increase, it hides a multitude of
:15:10. > :15:15.sins. A constituent approached me this week who is a low electricity
:15:16. > :15:21.user and is facing a 50% increase in his unit cost. Others find they are
:15:22. > :15:27.being handed by high standing charges -- hammered. Isn't it about
:15:28. > :15:32.time these practices were stopped? These are real reasons why it is
:15:33. > :15:36.important that there is transparency within the market and the range of
:15:37. > :15:41.tariffs is improved. That is a result of the action we have been
:15:42. > :15:46.taking. Under the last government, there were 400 different tariffs
:15:47. > :15:51.available and there was no surprise that people were getting confused.
:15:52. > :15:53.Simplicity is the way ahead and that is something that the government
:15:54. > :16:05.works on -- with the regulator. We know that energy bills have
:16:06. > :16:08.rocketed, and as my right honourable friend said this morning, one third
:16:09. > :16:13.of Jewish investment in renewables comes to Scotland but Scots
:16:14. > :16:19.contribute less than a 10th of this. -- British investment. Does the
:16:20. > :16:23.Secretary of State agree that the best future for renewables in
:16:24. > :16:30.Scotland and the best way to keep costs down. Lund is by Scotland
:16:31. > :16:35.saying part of the UK? That is absolutely the case. Scotland has a
:16:36. > :16:39.tremendous opportunity to contribute to the growth of renewable energy as
:16:40. > :16:44.part of the UK. That is going to take subsidies that come from
:16:45. > :16:50.consumers bills. That is a cost which is spread across the whole
:16:51. > :16:57.nation, not simply the household of an independent Scotland. It would
:16:58. > :17:03.emerge is for the renewable energy industry to support independence for
:17:04. > :17:10.Scotland in the future. Question five, but the minimum wage and the
:17:11. > :17:11.nonpayment of it. They have been no persecutions or naming and shaming
:17:12. > :17:21.since at least 2007. A revised scheme came into place
:17:22. > :17:26.which makes it simpler to name and shame any such employers. I would
:17:27. > :17:32.urge anyone with information about such an employer to use that scheme.
:17:33. > :17:40.I know he cannot tell us of any instances, but it is a scandal at a
:17:41. > :17:42.time of economic difficulty that people are being exploited by being
:17:43. > :17:47.paid less than the national minimum wage. The policing of this act or to
:17:48. > :17:54.be strengthened, then there ought to be vigorous persecutions and they're
:17:55. > :17:58.certainly ought to be a question of naming and shaming. Will the
:17:59. > :18:02.government can't write with any investigation of the Scottish
:18:03. > :18:09.affairs committee, conducted into this matter? Are recognised the
:18:10. > :18:13.Scottish affairs committee has done much valuable work on this area, and
:18:14. > :18:18.of course we will continue to work with them. In Scotland, prosecutions
:18:19. > :18:25.are a matter for the Lord Advocate and I'm sure he will have heard the
:18:26. > :18:28.honourable member's contribution. What representations has the
:18:29. > :18:31.Scottish office made to the Chancellor of the Exchequer but
:18:32. > :18:35.increasing the national minimum wage disempowered an hour and what effect
:18:36. > :18:41.does he think they would be on living standards in Scotland would
:18:42. > :18:44.that come about? I can say that I agree with the Chancellor Willy said
:18:45. > :18:52.that I believe England can afford and above inflation increase in the
:18:53. > :18:58.minimum wage, so to restore its real value and make sure that work always
:18:59. > :19:05.pays. The Conservative MP for Central Devon, the. Near-record
:19:06. > :19:17.highs of least 2.5 million. These figures reflect how well
:19:18. > :19:17.Scotland is doing as part of the UK under the government's long-term
:19:18. > :19:31.economic plan I thank him for that positive
:19:32. > :19:36.response. Would he agree with me that the biggest threat to Scottish
:19:37. > :19:43.job is the promise of the SNP and its plan to remove Scotland from the
:19:44. > :19:47.UK labour market? That is indeed the case. We talk about business people
:19:48. > :19:52.having concerned, that means there is a threat, not just to business,
:19:53. > :19:58.but jobs as a result. The UK is now the fastest growing economy in the
:19:59. > :20:03.G7 and unemployment in Scotland is at 6.4%, significantly lower than
:20:04. > :20:09.the average across the UK, which is 7.1%. That is something we have
:20:10. > :20:16.achieved because we are part of the UK, not despite it. It is a result
:20:17. > :20:24.of Scotland, with our own Parliament, being represented here,
:20:25. > :20:27.having the best of both worlds. Unfortunately within my own
:20:28. > :20:35.constituency, unemployment levels appear to have stagnated. Does the
:20:36. > :20:39.Secretary of State agree with me that the Scottish Government needs
:20:40. > :20:41.to be doing more for people even living in the capital city of
:20:42. > :20:50.Scotland, who are still without jobs? There remains a great deal
:20:51. > :20:53.still to do. I share, I suspect, many concerned she would have about
:20:54. > :20:57.the continuing high level of youth unemployment, the number of people
:20:58. > :21:05.who have been unemployed for a longer period of time. I see
:21:06. > :21:09.encouraging signs of growth in these areas but they are by no means to be
:21:10. > :21:12.taken for granted. There are tremendous opportunities for the two
:21:13. > :21:18.governments in Scotland, along with councils in Edinburgh, Aberdeen and
:21:19. > :21:24.elsewhere, to work together to get the best possible arrangements for
:21:25. > :21:30.the unemployed. When the Secretary of State visits the Highlands at the
:21:31. > :21:32.end of the week and addresses people in Inverness, I'm sure he will be
:21:33. > :21:37.hearing a lot from those present about one of the most exciting
:21:38. > :21:42.potential job prospect is for the Highlands and the Scotland as a
:21:43. > :21:48.whole, which is the potential of a site in my own constituency for
:21:49. > :21:50.offshore wind development. Can I courage him and his colleagues to
:21:51. > :21:55.continue to work with Edinburgh to promote the interests of this
:21:56. > :21:59.exciting project, and I wanted to get my plug in now because due to a
:22:00. > :22:06.previous long-standing engagement, I won't be there on Friday night
:22:07. > :22:10.myself! I shall in fact be carrying out other engagement although I do
:22:11. > :22:16.understand that gets for that supper are still available and are
:22:17. > :22:23.reasonably priced! -- tickets. The honourable gentleman raises an
:22:24. > :22:25.important local concerns his constituents, he has a long and
:22:26. > :22:34.proud record of doing so, I would suggest to him that this is sorted
:22:35. > :22:39.development we're now seeing growing across the whole of the UK,
:22:40. > :22:44.particularly in Scotland, and it is happening because our plan worked.
:22:45. > :22:49.He may think that everything is rosy but isn't it the fact that we are
:22:50. > :22:52.seeing the most sustained fall in real wages since records began 50
:22:53. > :22:57.years ago? Isn't it the fact that the jobs market is not working for
:22:58. > :23:02.ordinary Scots and both governments are failing the people we represent?
:23:03. > :23:07.I really wish that they could find it within themselves to recognise
:23:08. > :23:13.the substantial progress we are making in relation to the improving
:23:14. > :23:16.employment situation in Scotland. There is significant progress and
:23:17. > :23:23.that makes a real difference for her constituents and mine. Wage levels
:23:24. > :23:26.will doubtless need to see some improvement to catch up, that as a
:23:27. > :23:30.consequence of the steps we had to take clear up the mess she made.
:23:31. > :23:42.Questionable seven. The White Paper shows that the case
:23:43. > :23:50.for independence is unravelling. They promised answers but fail to
:23:51. > :23:56.key -- address key issues such as currency and the EU membership.
:23:57. > :24:07.Can the Secretary of State explain why there are issues about the
:24:08. > :24:12.funding of pensions in Scotland? Indeed, the most pertinent
:24:13. > :24:15.intervention was that which came from the Institute of chartered
:24:16. > :24:19.accountants of Scotland. Not a political party, not a body that has
:24:20. > :24:22.any axe to grind, the people who know what they are talking about,
:24:23. > :24:27.and they told us what we already know, that our substantial questions
:24:28. > :24:34.on pensions and other areas have not been answered. Surely one of the
:24:35. > :24:38.great weaknesses of the White Paper is when it comes to the future of
:24:39. > :24:42.the pound in Scotland. Surely the simplest way the people of Scotland
:24:43. > :24:49.can be guaranteed to keep the pound is to vote no in the referendum.
:24:50. > :24:53.That is indeed the case and I'm confident they will do so because
:24:54. > :24:59.the people of Scotland value having the ? their currency. They value
:25:00. > :25:04.having the Bank of England as a lender of last resort and the value
:25:05. > :25:12.that the risks and opportunities are spread across the whole UK. The
:25:13. > :25:15.Tories and Labour are worried but still the Prime Minister is afraid
:25:16. > :25:19.to debate with Alex Salmond, the First Minister. In this week the FT
:25:20. > :25:24.tells us an independent Scotland could expect to start with healthier
:25:25. > :25:29.state finances than the rest of the UK, our GDP per head is higher than
:25:30. > :25:35.France and Italy. Will he make sure that people know these facts and
:25:36. > :25:42.stop people making the best decision for Scotland? Indeed I will, these
:25:43. > :25:46.are all things we have achieved as part of the United Kingdom, it
:25:47. > :25:51.ultimate streets what is possible for Scotland as part of the United
:25:52. > :25:54.Kingdom. As for any question of debate, we have dealt with that
:25:55. > :25:57.already. Isn't it remarkable that when they could be answering
:25:58. > :26:02.questions, all they want to do is have a debate about the debate? A
:26:03. > :26:16.question about pensions. Despite publishing a paper
:26:17. > :26:19.specifically on pensions in September and a much vaunted White
:26:20. > :26:23.Paper in November, the Scottish Government has left many questions
:26:24. > :26:27.on pensions unanswered. The honourable member will be aware that
:26:28. > :26:32.the UK and Scottish governments have agreed there will be no pay
:26:33. > :26:32.negotiation ahead of the independence referendum in
:26:33. > :26:40.September. The Institute of chartered
:26:41. > :26:45.accountants in Scotland published a report for the White Paper and we
:26:46. > :26:49.are told by the SNP that the answers would be in the White Paper. This
:26:50. > :26:53.week the Institute of chartered accountants gave their response,
:26:54. > :26:57.there are not the answers in the White Paper to give Scots certainty
:26:58. > :27:03.about their pensions. This is the Secretary of State aware of any
:27:04. > :27:09.intention to answer the crucial questions on Scottish pensions? I am
:27:10. > :27:13.pretty certain that any answers that would come from the Nationalists
:27:14. > :27:17.would be ones that would not find favour with the people of Scotland,
:27:18. > :27:20.so I am pretty sure we will not be hearing much by way of answers in
:27:21. > :27:25.the future. The people of Scotland will hear what the Institute of
:27:26. > :27:28.chartered accountants have to say, they will want to hear from the
:27:29. > :27:33.Scottish Government but their answer is.
:27:34. > :27:38.That is all we have time for. The next Scottish Questions will be on
:27:39. > :27:46.Wednesday 19th of March, which also happens to be a get day down here at
:27:47. > :27:48.Westminster. -- I get a. Join us then if you can. From all of us,
:27:49. > :27:50.goodbye.