:00:23. > :00:29.Hello and a warm welcome to Westminster for a's edition of
:00:30. > :00:34.Scottish Questions. We start off with a note for your diaries. We are
:00:35. > :00:41.one year away from the next UK general election. It will take place
:00:42. > :00:47.on the 7th of May, 2015. It is another date which is occupying the
:00:48. > :00:53.thoughts of Scottish politicians, the 18th of September, 2014. People
:00:54. > :00:57.of Scotland will be going to the polls for the independence
:00:58. > :01:03.referendum. Everything at the moment in Scottish politics is being seen
:01:04. > :01:08.through that prism. Scottish Questions is no exception. Order,
:01:09. > :01:15.order, questions to the Secretary of State for Scotland. As a United
:01:16. > :01:23.Kingdom we all have better job opportunities. Every day 30,000
:01:24. > :01:28.people travel between Scotland and England between work. If Scotland
:01:29. > :01:32.were to leave the United Kingdom, our border constituencies would be
:01:33. > :01:36.the first to feel the effects of a creation of an international
:01:37. > :01:40.border. Would the Secretary of State agree that one of the challenges of
:01:41. > :01:47.separation would be that our focus would be lost, our energy would be
:01:48. > :01:50.dissipated, looking at the details of administration and borders rather
:01:51. > :01:58.than all the opportunities in the world from Brazil to Venice? That is
:01:59. > :02:01.one of the many downsides that a vote for independence would bring
:02:02. > :02:07.and it would be an unnecessary distraction would which would move
:02:08. > :02:12.our focus from the opportunities of being part of the United Kingdom
:02:13. > :02:21.give us to develop our business by looking overseas. On the question of
:02:22. > :02:25.this separation, surely it is understood that divorce can be messy
:02:26. > :02:29.and in this case would be messy? Given what I have been told by
:02:30. > :02:35.businessmen in my area, they say they will move out of Scotland as a
:02:36. > :02:39.result of separation taking place. What matters to business is the
:02:40. > :02:44.bottom line and the profit and loss account and the balance sheet. If
:02:45. > :02:49.they felt that independence was something that was going to be good
:02:50. > :02:54.for them, businesses would be lining up to support it. Since the turn of
:02:55. > :02:59.the New Year we have had the steady chorus from the business community
:03:00. > :03:04.all coming out, all underlining the real risks and uncertainties that
:03:05. > :03:07.would come from independence. These are voices that the honourable
:03:08. > :03:15.members may wish to drown out with their incessant chatter, but they
:03:16. > :03:21.may not do it. Anybody who pauses at the top of the hill in the Carter
:03:22. > :03:27.bar on the A68 is able to reflect on one of the most beautiful views of
:03:28. > :03:32.Scotland and England and reflect on the fact that these two countries
:03:33. > :03:36.have so much in common and have shared experiences. Does my right
:03:37. > :03:43.honourable friend share my hope that will always be the case rather than
:03:44. > :03:48.marking the border point? I always think of the United Kingdom as being
:03:49. > :03:52.like a family of nations. Like all families we have moments when we
:03:53. > :03:57.have disagreements and we want to do things in a slightly different way.
:03:58. > :04:03.But as a family it is the ties that bind us that are so much greater
:04:04. > :04:07.than the differences that bind us. That is why I believe Scotland will
:04:08. > :04:14.choose to remain part of that family of UK nations. But the people of the
:04:15. > :04:23.Borders and the rest of Scotland are being subjected by this self-styled
:04:24. > :04:28.project fear campaign, described by its own supporters as negative,
:04:29. > :04:33.nasty, threatening, and that the Prime Minister is toxic in Scotland.
:04:34. > :04:40.Why are even his own colleagues saying this? Mr Speaker, I have to
:04:41. > :04:45.say it is a bit rich to hear the honourable gentleman talking about
:04:46. > :04:49.Project fear, when we had the First Minister on Saint Georges Day go to
:04:50. > :04:57.Carlisle and deliver a lecture that I could only describe as Project
:04:58. > :05:00.ridiculous. There is no escaping this for the Nationalists. For
:05:01. > :05:04.people living in the border constituencies on either side of the
:05:05. > :05:10.border there are real benefits of being part of the United Kingdom.
:05:11. > :05:15.They want us to walk away from them. Leading members of his own campaign
:05:16. > :05:20.have told people in the Borders that they will have to show a passport at
:05:21. > :05:24.the border, drive on the right-hand side of the road, worry about their
:05:25. > :05:29.pensions when in this place are being told they will be saved, they
:05:30. > :05:35.will not be able to use their own currency. Why do his colleagues
:05:36. > :05:41.think the people of the Borders and the rest of Scotland will fall for
:05:42. > :05:46.this demeaning, insulting nonsense? On the question of borders it
:05:47. > :05:49.highlights perfectly how the Scottish Nationalists want to have
:05:50. > :05:55.their cake and eat it. They tell us we could have a Common travel area
:05:56. > :05:59.which works very well with the Republic of Ireland at present, but
:06:00. > :06:03.at the same time they tell us we will have a widely diverging
:06:04. > :06:11.immigration policy, which the Republic of Ireland does not happen.
:06:12. > :06:13.You can have one thing or the other, you cannot have them both. Their
:06:14. > :06:18.prospectus is flawed. In places such as Carlisle there are many
:06:19. > :06:25.businesses with branches and offices on both sides of the border. With
:06:26. > :06:30.the Minister agree, that if Scotland votes yes, businesses will have an
:06:31. > :06:35.additional burden to them that will affect jobs and economic prosperity
:06:36. > :06:40.on both sides of the border? An independent Scotland would have a
:06:41. > :06:43.different taxation system, different national insurers and different
:06:44. > :06:49.economic regulations. That would be an extra cost for business. You have
:06:50. > :06:54.already seen the financial services sector, which supports 200,000 jobs
:06:55. > :07:04.in Scotland, giving very serious warnings about what would happen to
:07:05. > :07:08.their business. I will answer questions two and nine together. I
:07:09. > :07:15.have had regular discussions with ministerial colleagues on the
:07:16. > :07:19.application of discretionary housing payments to those affected by the
:07:20. > :07:25.removal of the spare room subsidy. An announcement on Friday was the
:07:26. > :07:28.offsetting of the limits on such payments could become the
:07:29. > :07:36.responsibility of the Scottish Government. Much of the money has
:07:37. > :07:40.not got through to tenants as yet. Given there has now been an
:07:41. > :07:44.announcement in relation to the discretionary cap, with the Minister
:07:45. > :07:50.agree that the Scottish Government could have acted before now, but now
:07:51. > :07:54.this announcement has been made will he do everything in his power to
:07:55. > :07:57.make sure there is co-operation between Westminster and the Scottish
:07:58. > :08:03.Government to make sure the money gets to the people who need it? I
:08:04. > :08:07.agree with the honourable lady. The Scottish Government already had
:08:08. > :08:11.powers which they could have used to take other steps for the mitigation
:08:12. > :08:17.they said was necessary. They chose not to do so. The Scottish
:08:18. > :08:21.Parliament forced additional funding to be provided and we will not stand
:08:22. > :08:26.in the way of that money being spent. I have a meeting tomorrow and
:08:27. > :08:33.I will convey the honourable Lady's comets. Does the Minister agree with
:08:34. > :08:39.proposals from the demolition commission, does he agree it would
:08:40. > :08:44.be a logical and practical step which would enhance revolution and
:08:45. > :08:52.help the ability to meet Scottish housing needs? The proposal to
:08:53. > :08:57.devolve the setting of the cap is a positive step forward. I welcome the
:08:58. > :09:01.fact the Labour Party has come forward with proposals. The Scottish
:09:02. > :09:08.Conservative Party will come forward with proposals at the end of May. An
:09:09. > :09:13.important part of looking at housing benefit is ensuring there is
:09:14. > :09:18.sufficient, affordable housing. Does my right honourable friend agree
:09:19. > :09:23.that a lack of suitable housing is the result and responsibility of
:09:24. > :09:29.successive Scottish governments. I agree with the honourable lady and
:09:30. > :09:33.she will be aware that since 2010 the Scottish Government have added
:09:34. > :09:36.an additional ?1.3 billion in relation to funding which they could
:09:37. > :09:42.have used for affordable housing in Scotland. We used to hear constantly
:09:43. > :09:52.there were so many shovel ready projects, in Scotland, but we have
:09:53. > :09:57.not seen much shovelling. The bedroom tax has been a costly fiasco
:09:58. > :10:02.in Scotland. I am glad the Government at long last has agreed
:10:03. > :10:08.to let the Scottish Government mitigate the worst impact. However,
:10:09. > :10:11.the Secretary of State boasted we have a fantastic benefits system.
:10:12. > :10:15.Does the Minister think he was talking about the bedroom tax or is
:10:16. > :10:23.he also living on a parallel universe? I certainly do not live in
:10:24. > :10:28.the universe that the SNP in habit. They have not set out a single
:10:29. > :10:34.detail of how a welfare system would operate in Scotland. In the 670
:10:35. > :10:39.pages of the White Paper there is one reference to setting up a
:10:40. > :10:43.welfare system. They set up a commission and we have heard nothing
:10:44. > :10:51.from it and I am not taking any lessons from the honourable lady.
:10:52. > :10:54.Does the Minister accept that now the Scottish Government have been
:10:55. > :11:00.given the powers they asked for there is no reason why they should
:11:01. > :11:07.not, firstly, it cancelled the bedroom tax for this year and,
:11:08. > :11:10.secondly, right of all the debts that were incurred last year and to
:11:11. > :11:20.make sure there is no moral hazard involved refund the money that was
:11:21. > :11:27.paid by Scottish people for the bedroom tax last year? There will be
:11:28. > :11:30.a statement in the Scottish Parliament on this matter today and
:11:31. > :11:38.I am sure the honourable gentleman's colleagues will raise
:11:39. > :11:42.those points. Mr Speaker, rising energy bills are a serious concern
:11:43. > :11:50.for consumers in Scotland and the UK. Increasing competition and
:11:51. > :11:57.working to ensure suppliers put customers on the cheapest tariffs is
:11:58. > :12:04.what we are doing. Does he agree that with the closing of coal
:12:05. > :12:08.powered fire stations, the adoption of nuclear power stations north of
:12:09. > :12:13.the border that under independence with the reliance on renewables and
:12:14. > :12:20.energy costs must increase in independence? I agree with the
:12:21. > :12:25.honourable gentleman in relation to the serious loss to the Scottish
:12:26. > :12:29.economy of closing the door on the nuclear industry that has brought so
:12:30. > :12:35.much benefit to Scotland. I pay tribute to him for being such a
:12:36. > :12:38.champion of that cause. Energy costs will go up in an independent
:12:39. > :12:45.Scotland is set up in the Government's analysis on energy. In
:12:46. > :12:49.Northumberland and Scotland people I setting up or ill buying clubs to
:12:50. > :12:54.deal with the problem of off grid energy. Does the Minister agree the
:12:55. > :12:59.best way to combat energy problems and price rises is to copy this good
:13:00. > :13:07.measure and spread it out across the country? I think oil clubs are
:13:08. > :13:11.developing in Scotland and it is something the Government is keen to
:13:12. > :13:18.promote and support and I commend him on highlighting it today. If the
:13:19. > :13:22.Minister is genuinely concerned about rising costs of energy in
:13:23. > :13:30.Scotland, why is it that Ofgem have yet again delayed the implementation
:13:31. > :13:34.of a project which would tackle the discriminatory and expensive
:13:35. > :13:42.transmission charges? Will he pressed his colleagues to implement
:13:43. > :13:48.it immediately? The programme is one thing I am in agreement with with
:13:49. > :13:53.the honourable gentleman. It is disappointing that it has taken some
:13:54. > :13:57.time, but in the Scotland Office we are determined to work toward
:13:58. > :14:03.getting the right answer and I urge him and his colleagues to press
:14:04. > :14:08.Ofgem as well. Can the Minister explain why when the Prime Minister
:14:09. > :14:13.said consumers in Scotland would be ?50 better off after cuts to the
:14:14. > :14:19.green levies hundreds of thousands of Scottish consumers have only seen
:14:20. > :14:24.their bills increase by ?12? There is no reason why consumers in
:14:25. > :14:27.Scotland should not be seeing this ?50 benefits and the Government will
:14:28. > :14:35.continue to do or it can to make sure they do. That is the definition
:14:36. > :14:40.of an in adequate answer and goes some way to explain why Labour's
:14:41. > :14:44.policy has widespread support across Scotland. Opposing the energy
:14:45. > :14:50.freeze, the Tory led Government have had the full support of our surprise
:14:51. > :14:55.friend in the Scottish Nationalist party. Standing up for the energy
:14:56. > :15:01.companies, failing to take action on the living wage, proposing tax cuts
:15:02. > :15:07.for those at the top, doesn't the Minister agree that Scotland
:15:08. > :15:10.deserves better than this? What I believe is we do not take any
:15:11. > :15:19.lectures from Labour on energy issues. Gas bills more than doubled
:15:20. > :15:25.under Labour, electricity bills went up 50%. The leader of the Labour
:15:26. > :15:31.Party was responsible for ?179 of additional levies on gas bills and
:15:32. > :15:35.fuel duty went up 12 times. I am proud of this Government's record on
:15:36. > :15:52.energy and Scotland is doing well under it. As he had any discussions
:15:53. > :16:00.on the potential role of the Bank of England? If people are voting to
:16:01. > :16:07.leave the UK VI are voting to leave UK organisations which support it.
:16:08. > :16:13.The majority of my constituents hope that Scotland will stay in the
:16:14. > :16:22.union. Can you confirm that in the event of yes vote there are no
:16:23. > :16:29.circumstances which will affect the borrowing plans whatever currency
:16:30. > :16:33.they use? I would like to thank him for his support for the continuation
:16:34. > :16:38.of Scotland with the United Kingdom. The position on any currency union
:16:39. > :16:43.or central banking arrangements has been made very clear by the
:16:44. > :16:54.Chancellor and the chief secretary and by the Shadow Chancellor. There
:16:55. > :16:56.will be no such arrangements. Will the Bank of England monetary policy
:16:57. > :17:02.committee take their instructions from the United Kingdom Treasury
:17:03. > :17:09.from the Scottish Government? From the United Kingdom Treasury and that
:17:10. > :17:13.would not change. If Scotland separates from the United Kingdom,
:17:14. > :17:20.how would the United Kingdom's foreign-exchange reserves be
:17:21. > :17:23.deposited? That would be a matter to be determined in the matter of
:17:24. > :17:29.Scotland voting to leave the United Kingdom. I very much hope that will
:17:30. > :17:32.not come to pass. The Bank of England ready rather sensibly in
:17:33. > :17:41.gays in technical discussions with the Scottish Government and as each
:17:42. > :17:50.day passes and a yes vote becomes a more likely, is it not time that the
:17:51. > :18:00.government engaged with the Scottish Government to find how these matters
:18:01. > :18:05.might be resolved? In the Edinburgh agreement both governments agreed
:18:06. > :18:15.and I am astonished at the honourable gentleman wishes to walk
:18:16. > :18:19.away from it. Do we agree that it is an extraordinary kind of
:18:20. > :18:27.independence that wants to hand over control of your fiscal and monetary
:18:28. > :18:31.policy to a foreign bank? He puts it perfectly, the difference between an
:18:32. > :18:35.asset and an institution is not a difficult one to understand but the
:18:36. > :18:44.Scottish Nationalists do seem to struggle with it. I have not had any
:18:45. > :18:54.discussions with the Scottish Government about the prospect of a
:18:55. > :19:00.currency union. The only way to keep the United Kingdom pound is to stay
:19:01. > :19:03.in the United Kingdom. I thank the Minister for that reply. Having read
:19:04. > :19:06.the report of the fiscal commission, it is clear that they took the
:19:07. > :19:10.advice I have been giving Scottish Nationalist colleagues that they
:19:11. > :19:16.would be destroyed if they went into the Eurozone so if they have no
:19:17. > :19:20.currency union with the United Kingdom, what prospects are there
:19:21. > :19:28.for the 8% deficit that Scotland is running at the moment? The position
:19:29. > :19:32.is clearly laid out and the difficulties which would be created
:19:33. > :19:37.via the currency union would be difficulties for the whole of the
:19:38. > :19:43.United Kingdom that particularly for the people of Scotland. If we are to
:19:44. > :19:52.be independent, we need to be independent with all that that
:19:53. > :20:07.means. Is he aware that if Scotland where to gain its independence, the
:20:08. > :20:27.credit waiting -- rating would be lowered. ? That would mean more
:20:28. > :20:36.expensive store cards and overdrafts and mortgages. We are cheaper as
:20:37. > :20:39.part of the United Kingdom. Does the Secretary of State agree that all of
:20:40. > :20:56.the currency options that have been foot forward -- put forward by the
:20:57. > :21:05.Scottish Nationalists is inferior to what we currently have? Yes, that is
:21:06. > :21:10.the truth that they do not want to hear that from which there is no
:21:11. > :21:17.such escaping and the people of Scotland know that. The number of
:21:18. > :21:25.people claiming unemployment benefit in Argyll and Bute has been reduced
:21:26. > :21:28.by 490 over the last year. Does he agree that the best way to keep the
:21:29. > :21:34.sustained economic growth is to stay within the United Kingdom? Indeed.
:21:35. > :21:38.He gives me the opportunity to remind the House that the United
:21:39. > :21:42.Kingdom has the fastest-growing economy in the G7 group of nations
:21:43. > :21:50.and that Scotland is a second wealthiest parts of that second
:21:51. > :22:00.fastest-growing -- fastest-growing economy. On what date, if Scotland
:22:01. > :22:03.chooses to separate, will Scotland have to start printing its own money
:22:04. > :22:12.or use the pound is a foreign currency? He invites me to look into
:22:13. > :22:16.the future and predict, which is never an easy prospect for anyone
:22:17. > :22:26.and that is an unwise enterprise. The truth of the matter is that all
:22:27. > :22:33.these things are uncertain and bring many risks. What could be more
:22:34. > :22:38.demeaning and insulting than to read the Scottish people to believe there
:22:39. > :22:43.are no risks in independence and that a currency union is a foregone
:22:44. > :22:48.conclusion? The only foregone conclusion about a currency union is
:22:49. > :22:52.that it will not happen. It will not happen because that is the advice
:22:53. > :23:01.that has been given by the permanent secretary to the Chancellor of each
:23:02. > :23:20.and that advice and the outcome of that advice will not change. --
:23:21. > :23:37.Chancellor of the Exchequer. Can the Secretary of State tell us what has
:23:38. > :23:45.happened to the gentleman that told the truth? It is amazing that he
:23:46. > :23:53.chooses to ignore the advice given by the permanent secretary to the
:23:54. > :24:15.Chancellor of the exchequer. Why does he want something that would be
:24:16. > :24:20.bad for something? For Scotland?. We are fed that 85% of the British
:24:21. > :24:24.Chambers and against independence and nearly half identify currency
:24:25. > :24:29.concerns as their most important issue. What we assurance is can the
:24:30. > :24:37.Secretary of State give in respect of currency for businesses on both
:24:38. > :24:39.side of the border? If people in Scotland votes know they will
:24:40. > :24:43.continue to enjoy the use of the pound and will continue to have the
:24:44. > :24:56.Bank of England as a lender of last resort. Beyond that, everything else
:24:57. > :25:01.is uncertain. Scotland has a place in the United Kingdom that means we
:25:02. > :25:04.have a truly single domestic market with no barriers to employment and
:25:05. > :25:09.trade. Independence would fundamentally change that and
:25:10. > :25:26.disrupt trade and free movement of workers. My constituency is home to
:25:27. > :25:28.a large number of logistics and distribution companies. Is he aware
:25:29. > :25:35.of the growing concern in that sector is separation would make some
:25:36. > :25:41.cross-border routes less attractive as they become international rather
:25:42. > :25:49.than domestic? I hear the same message from a whole range of
:25:50. > :25:50.different business interests. The financial services industry say that
:25:51. > :25:55.independence would bring extra costs of different taxation and
:25:56. > :25:59.legislation. The supermarkets have been very clear that extra costs
:26:00. > :26:14.would fall to Scottish consumers if they were independent. According to
:26:15. > :26:20.the Commons library, trade between the two of the United Kingdom and
:26:21. > :26:28.Ireland has never been higher. Of recently independence nations of the
:26:29. > :26:37.European Union foreign investment has risen dramatically. What scares
:26:38. > :26:40.the Tories? The white paper presents a prospectus where there would be
:26:41. > :26:44.barriers and where the mere existence of border would be an
:26:45. > :26:50.extra cost. If he wants to know the truth of the matter, he need look no
:26:51. > :26:54.further than the situation between Canada and the United States. He
:26:55. > :27:04.might not like it but that is the truth. What discussions has the
:27:05. > :27:06.Secretary of State had regarding the possibility of border controls
:27:07. > :27:16.between an independent Scotland and the rest of the United Kingdom? And
:27:17. > :27:21.as separate immigration policy? It is an inescapable fact that if, as
:27:22. > :27:26.the Scottish Nationalist tell us in the White Paper, Scotland had a
:27:27. > :27:30.widely diverging to immigration policy which is necessary for the
:27:31. > :27:34.economic plans that they had been prepared to tell us about, the
:27:35. > :27:37.operation of a Common travel area of the sort that works well currently
:27:38. > :27:50.with the Republic of Ireland simply would not operate. You cannot have
:27:51. > :27:52.your cake and eat it. Given the threat by the first minister to
:27:53. > :28:05.blockade at Scottish fishing grounds if he does not get his own way, what
:28:06. > :28:13.an analysis does the Secretary of State have the impact of employment
:28:14. > :28:18.on the fishing industry? It would be a serious impact on some of the most
:28:19. > :28:26.economically fragile communities Scotland has on our coastal and
:28:27. > :28:29.island communities. The conversation about blockading Scottish waters
:28:30. > :28:41.went beyond the ridiculous and makes me wonder why he seems so desperate
:28:42. > :28:46.to cosy up to Vladimir Putin. Normally I would give you the date
:28:47. > :28:48.for the next edition of our programme but the parliamentary
:28:49. > :28:52.authorities at Westminster have not finalised the programme yet. From
:28:53. > :29:00.Oliver Seer, goodbye.