05/02/2014

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: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.