:00:24. > :00:28.A very warm welcome to Westminster for the first programme of 2012.
:00:28. > :00:33.The weather here at Westminster is unseasonably mild, and the
:00:33. > :00:36.political temperature is rising as well. The announcement last night
:00:36. > :00:42.from the First Minister Alex Salmond that he wants an
:00:42. > :00:49.independence referendum in Scotland, in the autumn of 2014 has led the
:00:49. > :00:55.constitutional genie out of the bottle. Proceedings began with a
:00:55. > :01:04.very specific question about defence and security.
:01:04. > :01:08.Order. Questions to the Secretary of State for Scotland.
:01:09. > :01:13.We have regular discussions with ministerial colleagues on defence
:01:13. > :01:17.matters relating to Scotland. My right honourable friend the
:01:17. > :01:25.Parliamentary Under-Secretary of State last spoke to the minister of
:01:25. > :01:28.defence personnel this week. As recently as November, the Prime
:01:28. > :01:33.Minister said there are no current plans to reduce -- reduce the
:01:33. > :01:36.number of MoD police officers at naval bases. However since then the
:01:36. > :01:43.Government has confirmed plans to cut the budget of the MoD police by
:01:43. > :01:50.50%. To the Prime Minister's assurances hold any water? What
:01:50. > :01:53.proportion of these cuts will fall in Scotland, and as he believed the
:01:53. > :02:00.threat to national security have diminished if -- sufficiently in
:02:00. > :02:03.recent months to justify a 50% cut in numbers? What the Prime Minister
:02:03. > :02:10.said stance, there are no current plans for the MoD to reduce the
:02:10. > :02:15.core police role or security of our national institutions such as
:02:15. > :02:19.nuclear safety. We take national security and the security of the
:02:19. > :02:24.defence installations and as the highest priority we have. We have
:02:24. > :02:27.so many MoD police in Scotland and the first place because of the huge
:02:28. > :02:35.defence imprint that we have. That would be addressed if the country
:02:35. > :02:38.were to be independent. -- at risk. I am delighted the Secretary of
:02:39. > :02:43.State has mentioned this, that there would be no current plans to
:02:43. > :02:50.reduce the number of MoD police. I would hope that he can assure the
:02:50. > :02:54.House that the Government will never adopt any plans to reduce the
:02:54. > :03:01.security at these bases because of the installations there. As I said,
:03:01. > :03:11.national security is our highest priority as a government. We will
:03:11. > :03:20.do nothing but compromise is and -- that will compromise his insecurity.
:03:20. > :03:27.The system must stay fair and affordable, and the benefit will
:03:27. > :03:32.increase by 5.2% in April. The debt consolidation plan, the Government
:03:32. > :03:36.will increase the child element of the child tax credit by the rate of
:03:36. > :03:40.inflation. According to the House of Commons library, under the
:03:40. > :03:45.Government's decision not to go ahead with the �110 increase in the
:03:45. > :03:50.child element of tax credits, it will mean �41 million has taken
:03:50. > :03:54.away from almost 400,000 children in Scotland alone. The worst hit in
:03:54. > :04:00.Scotland will be Glasgow City, where 44,000 children are set to
:04:00. > :04:05.miss out on �4.8 million. When will the Secretary of State stand up for
:04:05. > :04:09.the children of Scotland? Government is standing up for the
:04:09. > :04:16.children of Scotland. That is why its priority is sorting out the
:04:16. > :04:20.mess was the last Labour government made of our economy. I think the
:04:20. > :04:25.honourable gentleman would do well to heed the words of the former
:04:25. > :04:33.Secretary of State, who said the truth is that the Labour Party
:04:33. > :04:36.would have to make cuts if it were in power. We all it said we are in
:04:36. > :04:39.difficult economic times, but with the Minister agree one of the most
:04:39. > :04:48.effective ways of helping the lowest-paid families is to raise
:04:48. > :04:54.the income tax threshold to 10,000? I agree with my honourable friend.
:04:54. > :04:59.This has had significant impact in Scotland, and over 2 million basic
:04:59. > :05:07.rate taxpayers will benefit from the proposal over the period of the
:05:07. > :05:17.spa element. After another week dominating the headlines on
:05:17. > :05:17.
:05:17. > :05:24.Scotland's constitution, we cannot ignore the Child poverty problems.
:05:24. > :05:29.What action does the Secretary of State have to make sure the
:05:29. > :05:33.children of Scotland have the best start in life? He raises an
:05:33. > :05:36.important issue, and how it will -- highlights that many of the
:05:36. > :05:40.decisions rest with the Scottish government. The Scottish government
:05:40. > :05:46.received only if -- over �500 million in additional revenue, and
:05:46. > :05:54.I would have thought they would be better focused and how to deploy
:05:54. > :05:59.that, rather than obsessing about the constitution for.
:05:59. > :06:02.The Secretary of State and I firmly believe that Scotland is the ideal
:06:02. > :06:12.destination for international inward investment, and we have
:06:12. > :06:17.
:06:17. > :06:27.taken a range of departments -- Does my Honourable Friend accept
:06:27. > :06:34.
:06:34. > :06:38.On I agree with my honourable friend, which is why I believe it
:06:38. > :06:42.is better that a referendum on Scottish and a attendances held
:06:42. > :06:47.sooner, rather than later. In contrast to the previous
:06:47. > :06:51.intervention, will the Minister acknowledge that international
:06:51. > :06:58.companies investing in Scotland since the election of the SNP
:06:58. > :07:03.Scottish government include Amazon, Hewlett-Packard, does the Minister
:07:03. > :07:07.acknowledged this and welcome the investment to? What I acknowledge
:07:07. > :07:11.his these companies have invested in spite of the uncertainty. Think
:07:11. > :07:18.of the level of investment that Scotland could achieve if there was
:07:18. > :07:25.not uncertainty. That is the usual mantra we hear from the government,
:07:25. > :07:29.so perhaps he can answer Scotland's leading entrepreneur, who said,
:07:29. > :07:34.business is not concerned about the independence referendum. Whilst
:07:34. > :07:39.many of us in business are convinced about is that a
:07:39. > :07:42.prosperous future for the country depends on securing real economic
:07:42. > :07:50.powers through constitutional change. Will the UK Government
:07:51. > :07:55.dropped its bullish conditions -- drop its foolish conditions? He is
:07:55. > :08:01.entitled to his opinion, just like any other citizen of Scotland. I am
:08:01. > :08:11.sure you will encourage them to contribute to the consultation on
:08:11. > :08:11.
:08:11. > :08:14.the independence referendum. Does my Honourable Friend believe
:08:14. > :08:20.that for Scotland to become separate from the United Kingdom,
:08:20. > :08:26.and if it were forced to join the euro-zone as a condition, that this
:08:26. > :08:31.would hinder or help inward investment into Scotland? What I
:08:31. > :08:36.would say to my honourable friend is uncertainty over Scotland's
:08:36. > :08:40.position in the EU over which currency Scotland will use of it
:08:40. > :08:49.were to come independent will certainly hinder inward investment
:08:49. > :08:54.in Scotland. According to the annual population
:08:54. > :09:02.survey of 2010, the proportion of 18-19-year-old estimated to be not
:09:02. > :09:06.in education, employment or training in Scotland was 36,000.
:09:06. > :09:12.That answer does not really answer the question. What is happening
:09:12. > :09:16.between the ages of 16 and 18, which is as important, if not more
:09:16. > :09:23.important? What is he doing to try to encourage youngsters into
:09:23. > :09:27.industry, to be able to take on apprenticeships in joinery,
:09:27. > :09:31.electrician, and plumbing? That is where there is a failure in trying
:09:31. > :09:35.to attract people into these industries. Does he not agree that
:09:35. > :09:43.the idea of the school's liaison committees that I suggested to him
:09:43. > :09:46.is something that is worthwhile support in? He is right to focus on
:09:46. > :09:51.this issue. Youth unemployment is something we are all concerned
:09:51. > :09:55.about, and when I was in his constituency, it is right we all
:09:55. > :10:04.come together with employers, and all the agencies, to help young
:10:04. > :10:06.people. The use contract which we announced before Christmas, will
:10:06. > :10:11.bring �1 billion extra investment into supporting the young
:10:11. > :10:14.unemployed, which uses -- whether it is wage incentives, work
:10:14. > :10:18.experience opportunities, or money to the Scottish government that
:10:19. > :10:26.could be used to create those school liaison groups that he wants
:10:26. > :10:32.to see. Youth unemployment is a huge concern on all sides of the
:10:32. > :10:34.house, and across Scotland. The youth contract will help that by
:10:34. > :10:39.providing 40,000 opportunities for young people in Scotland. But this
:10:39. > :10:43.will not be solved easily, so what will he do to bring together people
:10:43. > :10:47.from UK government, Jobcentres, Scottish government, business
:10:47. > :10:51.employers and education opportunities to bring the
:10:51. > :10:54.opportunities to the young people of Scotland? Over many months I
:10:54. > :10:59.have been bringing together those groups in different part of
:10:59. > :11:03.Scotland. At the end of March, along with the Secretary of State
:11:03. > :11:13.for work and pensions and the Scottish Finance Secretary, I will
:11:13. > :11:14.
:11:14. > :11:17.bring everyone together so we can focus on tackling this. The problem
:11:17. > :11:22.with the Secretary of State's complacent answers is that he
:11:22. > :11:26.simply does not grasp the scale of the crisis of slumping demand,
:11:26. > :11:30.employment and confidence, which Scotland's economy is gripped by
:11:30. > :11:34.due to the crushing austerity imposed by the Government. Does he
:11:34. > :11:39.not share the real fears of the people, that with youth
:11:39. > :11:43.unemployment at over 21%, and seven people chasing every vacancy in
:11:43. > :11:49.Scotland, there are not just enough jobs in Scotland to go around? Is
:11:49. > :11:53.it not time to change course by boosting demand, and cutting VAT,
:11:53. > :11:58.before the economic plan plunges Scotland into the misery of another
:11:58. > :12:01.downturn? It is wrong for the Labour Party to be complacent about
:12:01. > :12:10.his record in the economy, which landed us in this mess and the
:12:11. > :12:14.first place. One of my predecessors said Labour has to face up to be
:12:14. > :12:17.challenges of the economy and deficit. We want to work with
:12:17. > :12:25.everyone so we can reduce youth unemployment, and the youth
:12:25. > :12:28.contract, I invite them to look at in more detail.
:12:28. > :12:31.The Government took action in the Autumn Statement to build a
:12:32. > :12:36.stronger and more balanced economy. As a result more than �500 million
:12:36. > :12:39.has been added to the Scottish government budget by the UK budget,
:12:39. > :12:45.which provides the Scottish Government with additional
:12:45. > :12:48.resources in these uncertain times. Can I sank the Minister for that,
:12:48. > :12:53.but would he agree with me that one of the most important ways to
:12:54. > :13:03.tackle poverty is ensuring there is full-employment? Does he therefore
:13:04. > :13:11.
:13:11. > :13:21.share my concerns that jobs seems set to be a move to end my
:13:21. > :13:26.
:13:26. > :13:35.constituency -- set to be removed. I know the honourable lady as a
:13:35. > :13:44.campaigner for this, and employers Can I tell the minister that on
:13:44. > :13:49.Monday, when 700 of my constituents returned to work at a construction
:13:49. > :13:57.company, they were told that their company were going into
:13:57. > :14:00.administration, without any consultation whatsoever. I am told
:14:00. > :14:06.that the Scottish Enterprise was not even aware of it. The trade
:14:06. > :14:13.unions were not aware of it. The NS -- MSP was not aware of it. This
:14:13. > :14:21.company was taken over two years ago when it had a turnover of �200
:14:21. > :14:23.million. It has now been run into the ground, and the executives have
:14:23. > :14:33.run away with the money. Can the Minister made with me to discuss
:14:33. > :14:35.
:14:35. > :14:40.what we can do to save as many of But someone from South Lanarkshire,
:14:40. > :14:45.I am disappointed to hear what you have related. I would be pleased to
:14:45. > :14:55.meet with him to ensure that employment is secured in South
:14:55. > :14:56.
:14:56. > :15:02.Lanarkshire. My Right Honourable Friend, the Secretary of State, is
:15:02. > :15:07.in contact with the Department of Work and Pensions on welfare reform.
:15:07. > :15:12.We met to discuss at secondary review of the work capability
:15:13. > :15:19.assessment. Thank you for that answer. You will be a way of a
:15:20. > :15:26.report from the Citizens' Advice Bureau examining incorrect and in -
:15:26. > :15:29.- examining incorrect conclusions made by several reviews. Is it time
:15:29. > :15:37.for the Government to consider the recommendations of the report that
:15:37. > :15:43.financial penalties be booked on thought incorrect assessments?
:15:43. > :15:46.was one of the issues the Secretary of State and I discussed with the
:15:47. > :15:52.Professor Harrington. We know that as he moves forward to prepare his
:15:52. > :16:00.father report, this is inevitably one of the issues he will address.
:16:00. > :16:05.There are far too many noisy private conversations taking place.
:16:05. > :16:08.Thank you Mr Speaker. Now that the move from incapacity benefit to
:16:08. > :16:12.employment support allowance is under way, it would appear that
:16:12. > :16:17.people are finding it difficult to carry out work capability
:16:17. > :16:20.assessments and there could be extra delays. Will you please
:16:21. > :16:28.engaged with fellow ministers in the Department of Work and Pensions
:16:28. > :16:35.to make sure that they can deliver on their contract? I can certainly
:16:35. > :16:41.ensure that I will pass on concerns to the Department.
:16:41. > :16:46.And the question about the independence referendum.
:16:46. > :16:51.I will answer questions 7, 8, 10 together. I made a statement
:16:51. > :16:56.yesterday about how any referendum could be made legal, fair and
:16:56. > :17:01.decisive. I discussed this with the First Minister and hope to have
:17:01. > :17:09.fathered discussions across Scottish Civic Society during the
:17:09. > :17:14.consultation. -- further discussions. The House of Commons
:17:14. > :17:17.library had showed that the academies of Quebec and Canada
:17:17. > :17:21.suffered during constitutional uncertainty in the 1990s. For the
:17:21. > :17:26.sake of jobs in Scotland and England, do you agree the last
:17:26. > :17:33.thing we need is a prolonged period of constitutional uncertainty and
:17:33. > :17:37.the First Minister should get on with that? You are correct to point
:17:37. > :17:43.to that analysis and the experience we can see from Quebec and the rest
:17:43. > :17:47.of Canada. It is vital that the economic uncertainty we now face
:17:47. > :17:51.because of the referendum is resolved and that is why we have
:17:51. > :17:56.brought forward proposals to make it legal, beer and decisive and I
:17:56. > :18:02.wanted to happen as soon as possible. -- legal, freer and
:18:02. > :18:08.decisive. Will you confirm if a UK Government does not have an
:18:08. > :18:12.independent referendum, one cannot take place? The central issue from
:18:12. > :18:17.my consultation is that as things currently stand the Scottish
:18:17. > :18:22.Parliament does not have the legal power to hold a referendum. We have
:18:22. > :18:26.to provide that by working with them. I am committed to working
:18:26. > :18:30.with the Scottish Government, from people across the country, to get
:18:30. > :18:35.the power devolved to Scotland and the Scottish Government can develop
:18:35. > :18:41.the question and we can get on with the referendum to be made in
:18:41. > :18:45.Scotland or the people of Scotland. Have you had any conversations to
:18:45. > :18:52.establish what impact an independent Scotland would have on
:18:52. > :18:58.the relationship with the European Union and the euro? You are
:18:58. > :19:01.absolutely focusing on some central issues. We need to debate those as
:19:01. > :19:05.to whether Scotland should go its own way or continued to be part of
:19:05. > :19:11.the more successful multi- nation state in the history of the world.
:19:11. > :19:19.It is vital it does, so let us get on, devolve the power to make it a
:19:19. > :19:22.legal and fair referendum and make a decisive. The Scottish affairs
:19:22. > :19:26.select committee has already embarked on an inquiry to identify
:19:26. > :19:31.those issues such as defence, which need to be resolved before a
:19:31. > :19:37.referendum is held. Do you plan to continue -- do you plan to
:19:37. > :19:41.contribute to that debate? certainly do. What is important is
:19:41. > :19:46.not just the debate now about the future of Scotland, but everyone in
:19:46. > :19:52.the country gets the opportunity to participate in the consultation on
:19:52. > :19:56.the sheet of the referendum and I hope people will respond. But not
:19:56. > :20:01.just politicians should get involved. Defence, welfare, the
:20:01. > :20:05.state of the economy, all a much steeper within the United Kingdom.
:20:05. > :20:13.These are important matters we are discussing. We should do so in an
:20:13. > :20:20.atmosphere of mutual respect. We now know there will be an
:20:20. > :20:28.independence referendum in the autumn of 2014 -- of 1914...
:20:28. > :20:33.LAUGHTER. That was the year the Great War started. There will be an
:20:33. > :20:37.independence referendum in 2014 designed and decided by the people
:20:37. > :20:42.of Scotland. If you are so concerned about the legal powers of
:20:42. > :20:47.that referendum, why not evolved those powers through section 30
:20:47. > :20:50.without condition? I see the Prime Minister has walked in. I hope you
:20:50. > :20:56.can encourage the Prime Minister to come to Scotland in the next two
:20:56. > :21:05.years, because you are the best recruiting sergeant to a yes word
:21:05. > :21:10.mac. The Prime Minister will be a bill participant. -- yes and vote.
:21:10. > :21:16.The most important thing is we have a referendum made his Scotland or
:21:16. > :21:20.the people of Scotland about the future of Scotland. You have put
:21:20. > :21:24.forward your preference for when the referendum should be. But we
:21:24. > :21:30.have to make sure it is a legal referendum. I hope the Scottish
:21:30. > :21:34.Government will work with us to make sure that is the case. Thank
:21:34. > :21:38.you very much. Does the Secretary of State recognise that following
:21:38. > :21:43.these developments the referendum campaign is now effectively
:21:43. > :21:46.underway? It is time to get on to the substance of the issue. Given
:21:46. > :21:51.that the Scottish Government have said they have been involved for
:21:51. > :21:55.some time in details about the prospects for Scotland, could the
:21:55. > :21:59.Secretary of State indicate if in the UK Government officials have
:21:59. > :22:03.been involved in any discussions relating to the future of the
:22:03. > :22:11.Scottish economy? In particular, whether a separate Scotland keeps
:22:11. > :22:16.the pound, joins the euro or has a separate currency. You are right to
:22:16. > :22:19.focus in on these key issues about the future of Scotland. I believe
:22:19. > :22:24.Scotland's places best served by continuing to be part of the United
:22:24. > :22:28.Kingdom, with the economy is stronger, Defence more secure, much
:22:28. > :22:34.greater cloud internationally. The welfare system will be more
:22:34. > :22:40.generous and better. I hope we can publish plans for what will be
:22:40. > :22:45.planned in Scotland, but as she says, let the debate get on. Thank
:22:45. > :22:49.you for your answer. Do you agree with me that one of Britain's
:22:49. > :22:53.greatest achievements was the creation of the welfare state? Can
:22:53. > :22:58.either on ask if any questions have taken place about the implications
:22:58. > :23:01.of separation for welfare spending Scotland, particularly as recent
:23:02. > :23:08.figures reveal that welfare spending in Scotland was three
:23:08. > :23:13.times greater than oil revenues in 2010? You make an important about
:23:13. > :23:17.the contrast between the level of spending to support some of the
:23:17. > :23:21.most vulnerable in society in Scotland and the rest of the
:23:21. > :23:26.country and the volatility of oil revenues. What I believe as we can
:23:26. > :23:34.have a more secure and generous welfare system by securing the
:23:34. > :23:40.risks and benefits across the whole UK. Would my Right Honourable
:23:40. > :23:44.friend agreed that all Scots should be entitled to vote on any
:23:44. > :23:49.referendum in independence, whether or not living in Scotland,
:23:49. > :23:58.including my father, a proud Scotsman, who happens to live in
:23:58. > :24:04.England and thinks of himself as first and foremost British? I pay
:24:04. > :24:07.tribute to your father's says of Patriot system and I am sure he
:24:07. > :24:14.like many other Scots around the country and indeed the world will
:24:14. > :24:19.want to contribute to this consultation. -- -- Patriot system.
:24:19. > :24:23.This is a historic decision, done on a legal, be a basis and on a
:24:23. > :24:28.straight forward the size of bases. Let us get that sorted and get on
:24:28. > :24:35.with the debate. And the question about youth
:24:35. > :24:40.unemployment. The Government has committed...
:24:40. > :24:45.apologise for interrupting. We are discussing youth unemployment. It
:24:45. > :24:49.is an important matter and I want to hear his answer.
:24:49. > :24:54.Back you, Mr Speaker. We have committed 1 billion over three
:24:55. > :25:00.years to implement the new contract. -- thank you. The Norwegian centres
:25:00. > :25:08.for employers to recruit 18-24- year-olds from the work programme
:25:08. > :25:15.and increased work opportunities for this age group. I thank you for
:25:15. > :25:18.your answer. You aware of the rising levels of youth unemployment
:25:18. > :25:23.and North Ayrshire and has seen its strong representation from MPs from
:25:23. > :25:30.that region. What more do you think this Government can do at
:25:30. > :25:35.Westminster to increase more public and private investment? And I
:25:35. > :25:40.acknowledge the work the honourable lady has done and the fact we met
:25:40. > :25:44.to discuss this serious issue recently. It is important that the
:25:44. > :25:47.youth contract that the Deputy Prime Minister was in Scotland to
:25:47. > :25:51.discuss on Friday is something taken advantage of across the
:25:51. > :25:57.country and I look forward to coming to your constituency to meet
:25:57. > :26:00.with those people to discuss how to implement it effectively.
:26:00. > :26:06.And a question about subsidies to key services in Scotland and the
:26:06. > :26:09.North of England. It is for the department -- it is for the
:26:09. > :26:16.parliament to Scotland to discuss allocating budgets. There is an
:26:16. > :26:23.annual subsidy to the Post Office of �150 million and �180 million
:26:23. > :26:26.for this financial year. It is not distributed by country or region.
:26:26. > :26:31.It would be helpful in the forthcoming debate that all these
:26:31. > :26:38.figures are made public, so that my constituents and others can fully
:26:38. > :26:41.participate. And I absolutely agreed that the debate in relation
:26:42. > :26:46.to the independence of Scotland should be based on facts and on the
:26:46. > :26:53.issues, which is why we need to move on from the process and get on
:26:53. > :26:57.with the referendum. The question of the referendum on
:26:57. > :27:07.Scotland isn't a matter just for the Scottish Government or people.
:27:07. > :27:10.
:27:10. > :27:14.How and when will my constituents in England B asked on this matter?
:27:14. > :27:18.Mr Speaker, the Honourable Gentleman's constituents have the
:27:18. > :27:23.opportunity to be represented on this is due to the honourable