10/02/2016 Scottish Questions

Hello, and a very warm welcome to Westminster for February's Scottish

questions. No shortage of topics for our MPs to get their teeth into,

ranging from the financial challenges of the North Sea oil and

gas industry to the challenges that will be posed by further devolution

to Scotland, but proceedings began with another very current issue, the

European Union, and how Scotland fares as part of the single market.

Questions to the Secretary of State for Scotland. We do not take points

of order now. Later. Points of order come after questions and statements.

We start with questions. I am sure everyone, particularly in

Scotland, will share your warm wishes to Andy Murray and his wife

on the birth of their daughter. Mr Speaker, official statistics

published last month showed that in 2014 around 42% of all Scottish

international exports were destined for countries within the European

Union. The value of these exports is estimated at around ?11.6 billion.

Does the Secretary of State agree with me that the package the Prime

Minister will be discussing in more detail with his colleagues and the

European Council will bring about much-needed reform and be a catalyst

for more reform in the future, thus making it quite clear the single

market is good for the United Kingdom and good for Scotland? Mr

Speaker, in a reformed EU we could have the best of both worlds, access

to the single market, while not being a member of the euro or

Schengen and I think that would be good for Scotland and the rest of

the United Kingdom. The single European market, and the ability to

impact the legislation that governs it is hugely important to the

Scottish economy, especially the exporting sectors, such as whiskey.

Will the Secretary of State confirm that regardless of the ongoing

negotiations, he will personally campaign for Scotland and the UK to

remain within the European Union? Mr Speaker, the honourable gentleman

will know, and will be sure to be pleased to have heard that the

leader of the Scottish Unionist party has expressed exactly that

position. Perhaps at the end of this question the Secretary of State can

answer the question about whether he will support Scotland remaining

within the European Union? Making a positive case for remaining in the

EU will be crucial in the weeks and months ahead. Will the Secretary of

State give a commitment not to repeat the grinding of negativity

project fear and ridiculous scare stories such as this from the Prime

Minister on the refugee camp in Calais. I will make my -- position

known when the negotiations have been concluded but I make this offer

to the honourable gentleman. If there reform package goes ahead and

if I am campaigning to keep Scotland in the United Kingdom, I would be

delighted to join him, the right Honourable member for Gordon, and

the First Minister on a platform to make that case. I had the pleasure

last night of meeting with the Scotch Whisky Association who

introduced me to some of the finer products from across the border.

Would the minister be kind enough support whether a company in my

constituency, who provide an enormous amount of the malted barley

that is sold across the border in Scotland, should produce this

whiskey and expansion into growth markets is important for the

industry. There are tremendous opportunities for the development of

the Scotch whiskey industry and it is an issue on which broke the

Scottish Government, UK Government and all parties in this united. We

recently, when the president of China was here in the United

Kingdom, had the opportunity to present the president's wife with

her favourite bottle of malt whiskey from Scotland and the President and

his good lady were able to set out how important that product is to

developing markets in China. I wonder if the Secretary of State is

able to tell me what discussions he has had with Scottish businesses

about the possibility of a UK exit from the EU and what concerns they

have raised about the impact this would have on their ability to

access and export to the single market? The clearest message I get

from businesses in Scotland is that they want a short EU referendum

campaign so that we have the minimum amount of uncertainty. This is a

question about the fiscal framework. I have regular discussions with the

Deputy First Minister to discuss the first framework and the negotiations

are ongoing. Yesterday the First Minister wrote to the Prime Minister

and set out areas where agreement still needs to be reached and she

listed those areas as the method for Block grant adjustments, capital and

revenue borrowing, fiscal oversight and dispute resolution, can the

secretary of state confirmed that those are all of the outstanding

issues where agreement still needs to be reached? The nature of the

discussion is that it was agreed at the start and until everything is

agreed nothing is agreed. Considerable progress has been made

on all of those issues. I very much welcome what the First Minister says

in that letter, that the finance secretary is going to bring forward

revised proposals from the Scottish Government. That is what a Scottish

-- negotiation involves, it involves both parties bringing forward

revised proposals at the negotiation progresses and that is what the UK

Government is committed to doing. The starting point of the fiscal

framework discussions with the Barnett Formula which means that

Scotland has 15% extra public spending per capita than the UK has

an average. Could the secretary of state inform the house whether he

believes that differential will maintain in perpetuity. The Hons

gentleman's views on the Barnett Formula are well-known. I do not

agree with them, nor does the government. The government's

position is that the Barnett Formula will remain even in the post fiscal

framework environment. The negotiations that the fiscal

framework are very sensitive and fragile and we need to be very

careful about the language that is used. The Secretary of State was

using language like ludicrous and chancing his arm when it was coming

to one party in this negotiation which is profoundly unhelpful. Of

the secretary of state and the Scotland Office had got nothing to

offer business negotiation discussions, will he vowed to stay

right out of it and try to get these negotiations fixed. I do find it a

little odd, Mr Speaker, to take a lecture from that particular

honourable gentleman on moderate language, but I don't think anybody

can doubt my commitment to ensuring that we have a negotiated fiscal

framework. I am delighted that the First Minister, in her letter to the

Prime Minister, set out her strong commitment to achieve that

agreement. That is the Prime Minister's position. As I said at

the weekend, both sides have done the dance, let's do the deal. Would

my right honourable friend agree that if we are to have a successful

devolution agreement that we all want, it does need a firm and

sensible framework for fiscal discipline, so that it will last and

stand the test of all the unknown economic vicissitudes that make it

the country. Will he assure us that we will not repeat the mistakes that

were made in Spain where devolved provinces quite frequently run up

quite unsustainable debts which they then blame on Madrid and cause very

great difficulty to the Spanish government in seeking recovery. Ken

Clarke is a former Conservative Chancellor of the Exchequer. The

settlement within Spain is quite different. I do agree on the need

for the sustainability of the fiscal framework. What the government has

made quite clear in terms of the negotiations is our willingness to

see the arrangements reviewed within a few years, to make sure that they

do stand up to the scrutiny of being fair to Scotland advert of the rest

of the United Kingdom. I would like to join you in congratulating Andy

Murray and his wife on the birth of their baby daughter. Actually their

baby daughter may be winning Wimbledon by the time you get a deal

on the fiscal framework. The UK and Scottish governments have been

negotiating it for over six months which is longer than it took to

negotiate the Scotland Bill itself and longer than it took to have the

historic climate change agreement and longer than it took the Jeep 20

leaders to negotiate $1.1 trillion of support for the UK economy. It is

clear it is the indexation model that is vexatious, can be Secretary

of State tell the house where he thinks the per capita index model is

not appropriate for the block grant? What I have made clear in previous

discussions is that we are not going to have been the detailed

negotiation in relation to this matter on the floor this house. What

I have said earlier is that I very much welcome the fact that the First

Minister has indicated that the Scottish Government is going to

bring forward a revised proposal. Through the negotiations we had

brought forward revised proposals and I believe we are in touching

distance of striking a deal and I remain optimistic that we will do

so. The secretary of state says that you will not rip -- provide a

running commentary on the fiscal framework while both governments are

providing a very running commentary. A respected economist has said I do

not understand why it should be such a huge stumbling block and a

constitutional expert said the fiscal framework is an eminently

solvable problem. The Prime Minister has spent recent months shuttling

around Europe, trying to strike a deal on EU reform. Isn't it time the

Prime Minister got involved and showed the same enthusiasm for

striking a fair deal for Scotland on our own union as he has on the

European Union? There are Prime Minister is committed to securing a

deal. He has spoken with Nicola Sturgeon on this issue and they have

had a productive discussion and are now involved in an exchange of

letters but both of them are quite clear that they want to get a deal

and I am confident that when the position set out in the letter from

the First Minister, that the Scottish Government actively

engaging in that negotiation process, as are we, that we will be

able to get that deal. This is a question about the oil and gas

industry in the North Sea. On 28 January the Prime Minister and I

held discussions with industry representatives in Aberdeen on

further support for the North Sea. As a member of the joint ministerial

group on oil and gas I also engage with key stakeholders such as the

oil and gas authority on a regular basis.

Calor gas has its largest operational site in the UK in my

constituency in South Leicestershire. A number of

residents in the Scottish Highlands and other areas rely on Calor gas to

receive a large part of the Scottish gas supply from the North Sea and

does my right honourable friend agree as a result of the sport that

the UK Government is able to provide, we are in a much better

place to absorb the falling oil prices that would have been the case

had Scotland been an independent country? Well, firstly, Mr Speaker,

I do acknowledge the importance of Calor gas and those who supply the

network energy -- might be off the network energy which is very

important in rural Scotland. On the wider point he makes an important

point about the ability of the United Kingdom as a whole to absorb

the change in the oil price. What discussions have the secretary of

state had with the Chancellor about continued funding for seismic

surveys on the UK continental shelf? I am sure that the honourable lady

welcome to the Prime Minister's announcement, when he was in

Aberdeen, the ?20 million contribution for a second round of

new seismic surveys. The severity of the collapse in the

global oil price carries but that the

economy? That's very issue was part of the

discussion with the Prime Minister Fergus Ewing from the Scottish

Government and representatives of the oil and gas industry at the

recent meeting in Aberdeen, and the Prime Minister made it very clear

that he would look at any specific request or proposal in relation to

supporting the industry in the forthcoming budget.

Mr forthcoming budget.

programmes per say, yes, there will be greater devilish and for the

Scottish Government in welfare and when it comes to employment

programmes, we would be happy to have discussions with the Scottish

Government in particular, many of which will look at how those

employment programmes can be taken further to support those out of work

in Scotland who desperately want to work.

Mr Speaker, due to the changes from DLA to PIP, thousands of Scots are

losing the rights to mobility vehicles and this is devastating in

rural areas where successful public transport may be limited, while the

Minister end this policy? As I have said, Mr Speaker, there

will be new powers under the devolution deal that will include

top-up payments, which are very much based on welfare payments as well

and it will be down to the Scottish Government in particular to start

making some of these decisions. You have the powers coming to you you,

you will have to decide how you use them.

It was thanks to Labour peers in the other place for the government's

initial cack-handed and unfair cuts to tax credits that were brought to

an abrupt end. But the noble that the government wants to introduce

new changes which will leave 800,000 people on tax credits across the

United Kingdom worse off come the month of April. Can the Minister

tell this house how many people in Scotland will be affected?

He is the shadow Scotland minister. When the house has discussed the

issues of welfare reform and changes, that we have the bill going

through the other place right now, so the changes that we are making

are there to bring fairness and stability to the welfare bill in

this country and at the same time, we have been clear, despite the

figure is that the honourable gentleman in the party opposite

where bridges constantly that people would not be affected and the right

support will be put in place. This is a question from the

Conservative MP about boosting employment in Scotland.

The employment rate in Scotland has never been higher, standing at

74.1%. We will build upon this and recognise the changes to the labour

market environment while delivering value for money to the taxpayer.

Then ever wash we have many great examples of businesses, operations

north of the border which helps to sustain jobs locally especially in

the transport and engineering. Would the Minister agree with me that the

Scotland blog only supports jobs for its own population but great ape

bashed -- but also create a great deal of employment for the rest of

the United Kingdom. You are correct to say, with record

levels of implement in Scotland, her constituency has clearly benefited

from the crossover in terms of employment opportunities both in her

constituency and in Scotland. With our growing economy and the strength

of it, that will continue to grow. Thank you, Mister Speaker, under the

SNP Scottish Government, Scottish and climate is at its highest level

since 2005, 7% higher than the rest of the UK. Can the Secretary of

State and ensure that you'll make representations to the sector state

for business innovation and is to ensure that Scotland receives a fair

share of funding from the apprenticeship leading?

I would say to the honourable gentleman, I did not feel we hear

that question, but I will take that away and I understand that the

Department are looking at that. It is a very serious situation of

the ministers cannot hear the questions and it is a discourtesy to

the people of Scotland and when we are discussing these important

matters that questions and answers cannot be heard. Try to have a bit

of water! This is a question about the West

Coast Main Line. We are working with others to ensure

that the viaduct on my own constituency is addressed as soon as

possible. We remain committed to working together with all parties to

reopen the West Coast Main Line in the first week of March.

Thank you, Mr Speaker. Apologies for my lack of voice. The closure of the

West Coast Main Line has a huge impact, not only on the economy of

southern Scotland, but of Cumbria as well. It is a strategic cross border

crossing and many businesses in my constituency rely upon it. I was

your PQ -- I was pleased they fear the sector state say it will be open

on the 1st of March. Can he can from the entire section of it will be

opened by that date? I welcome the honourable lady's

comments, because she will be with whether my own constituents use

Lockerbie station and people who are most affected by these changes are

concerned, but we are determined to get the West Coast Main Line fully

reopened in that first week in March.

John Nicolson. The Prime Minister claims that he is

going to get a good deal for Britain in the European Union. With the

Secretary of State like to see the United Kingdom play the same role

and of the same level of powers in the EU that Scotland is currently

has, he claims in the UK? Not related to the West Coast Main

Line, but I hope will be admitted and answer!

The West Coast Main Line is one of the most important routes within the

United Kingdom to Europe via London. I have set out my position in

relation to the EU referendum. I think it is important that if the

SNP Gemili once Scotland to remain in the EU rather than concert --

concentrate on process issues, they should get out and campaign for it.

The question about devolution to local government in Scotland.

I do not know of the honourable gentleman has had the opportunity of

meeting my speech of the 21st of December when I set out that I fully

support evolution of power to local committees as Lord Smith recommended

in his commission agreement. This is a responsibility of the Scottish

Parliament to implement, but I encourage them to do so.

While the Secretary of State condemn those who use devolution to actually

centralise power in Hollywood? Whether it is the centralisation of

the police, the Fire Service, the health spending, local governance

pending, sports, colleges and enterprises and enterprise

companies, will he ensure that he stands together with those who feel

devolution does not stop at Holyrood but goes down to the Scottish level

authorities and to the Scottish people?

Mister Speaker, I agree with the honourable gentleman and I can tell

him the best way to achieve that, under Ruth Davidson, to elect more

Scottish Conservative MSPs to the Scottish Parliament.

Mister Speaker, in the interests of the record, can the Secretary of

State can from that under the powers being devolved as part of the

current Scotland Bill, the Scottish Government will be able to vary

rates in bands of the Scottish rate of income tax, a leading the

Scottish Government to... Order! Order! I apologise. The

Secretary of State and the Minister could not hear the question because

of a rude eruption of noise. So, perhaps the honourable gentleman

could ask his question again and perhaps members could have the

common courtesy to allow him to be heard by their own ministers. Mister

fell was well. Thank you, we are getting used to

it! In the interests of the record, can the Secretary of State can from

that under the powers currently being devolved as part of the

current Scotland Bill, the Scottish Government will be able to vary

rates and bands of the Scottish rate of income tax, allowing the Scottish

Government to make progress of choices on these additional powers

and the Labour have big plans to raise Scottish income tax for

everyone before these powers were transferred...

Order! Members need to learn the merits of the blue pencil and if

they use that and questions were shorter, we would all benefit.

The Speaker ticking off a number of MPs.

We will take on these significant tax powers which the Scottish

Government will be able to use as they see fit. I hope that they will

use them to make Scotland a more attractive place for business and

commerce, grow the Scottish economy, and grow the Scottish population.

Fiona Bruce. This is a question about business.

My right honourable friend the Secretary of State for Scotland has

had a number of discussions with business organisations, including

the IoD, the Scottish Whisky Association, Oil and Gas UK. It is

because of this government's commitment to a long-term economic

plan and prosperity that we have seen such a growth in the Scottish

economy. Thank goodness the good people of Scotland voted to stay

within the United Kingdom and rejected independence.

This question is being and to buy Anna Soubry.

Scottish Opera this would lose money as the Sunday periods are abandoned

due to the new regulations. Would the minister take up the concerns

with the Business Secretary. -- Scottish shopkeepers.

I could not hear what you said, but I will tell you this, we intend to

devolve power down to local authorities so that they make the

decisions as what is in the best interests for people locally, that

includes local people who may want to shop on a Sunday but also the

interests of businesses who may want to open more liberally on a Sunday

to take full advantage me and I think that is a good idea and I hope

she would consider supporting it. I am afraid that as we have time for

at the moment. We will be in six weeks' time on the 23rd of March

with the next Scottish questions. That is also the final one before

the Holyrood elections on the 1st of May. It may be fairly lightly. Do

join us then add you can. But for now, from Oliver Searle from

Westminster, goodbye. -- from all of us here from Westminster.