12/10/2016 Scottish Questions

Hello and a very warm welcome to a decidedly

autumnal Westminster for October's

Scottish Questions, the first one since the party

political conference season.

Before then it was about Brexit and now it is all

about Brexit.

In fact, Scottish Questions could be summed up in

three words, Brexit, Brexit, Brexit.

Here's how proceedings got underway.

Order, order.

Questions to the Secretary of State for Scotland,

Carol Monaghan.

Can I begin by commending you, not only on your

attendance at the Davis Cup semifinal in Glasgow, but for your

obvious enthusiasm and exuberance which the honourable lady for

Glasgow Central and I were witness to and I'm sure you'll agree that

although the result was not as we would have wished,

the event once again confirmed Glasgow's place as a

great sporting venue.

Mr Speaker, with permission I will answer

questions one, two and four together.

The UK leaving the EU should be seen as an opportunity

for Scotland.

Today's GDP figures are encouraging as a sign of growth.

But Scotland still lags behind the UK as

a whole and that underlines the need for Scotland's two governments to

work together to take such opportunities.

You and your daughter did a fantastic job again.

As did the constituency member of Parliament.

Given that Brexit continues to be billed

as taking back control, can the Secretary of State tell us which

powers that are currently controlled by Brussels will the UK Government

commit to giving to Holyrood and which we'll be going to Westminster?

Because of devolution settlements within the UK, they are predicated

on the basis that the UK was a member of the EU then those

devolution settlements will be changed by the United Kingdom

leaving the EU and those will be matters which will be subject to

debate and discussion.

I am not entirely certain the Secretary of

State answered that question.

Will he categorically rule out that powers

will not be re-reserve to this Parliament

as a result of the decision to leave the EU?

What I can say is that no powers which are

currently exercised by the Scottish parliament will be re-reserved to

this Parliament as a result of the United Kingdom leaving the EU.

With a constituency that has an industry

that's right interest in having a large

pharmaceutical production and airport,

can I ask what the view will be

on the single market, the open skies

and the European Medicines Agency?

Mr Speaker, the Prime Minister at the Conservative

conference made very, very clear that we

want to have access to the single market

and that we want to ensure free trade.

The sectors she has mentioned are very important and

are part of a group of sectors we are in gauging closely with to

identify their specific interests and concerns so that they will be

part of the UK's negotiating position.

Is it not the case there should be a substantial boost to

Scottish exports as a result of the depreciation

of the pound since the Brexit vote?

Well, Mr Speaker, sectors within Scotland would

acknowledge, for example, the tourism sector where we saw

a record attendance at the Edinburgh Festival

recently, have benefited from the devaluation of the pound.

I think the agricultural sector in Scotland

would acknowledge that, too.

But I don't see that as being an end in itself.

We need to ensure we get the best possible deal

for Scotland and the UK from these negotiations

It is right to say we leave a dysfunctional union

in the European Union and it's an opportunity for

the people of Scotland.

Is it not also the case that if we were to

follow the SNP policy, we would land the people of Scotland

with a huge public sector deficit and the prospect of either tax rises

or cuts in services?

That is absolutely right and it seems to be

a very strange contradiction that members on the benches opposite are

rightly so concerned about Scotland's

continued trade with the EU,

but they disregard the fact that Scotland's

trade with the rest of the UK

is four times as much is with the EU

and that a million jobs in Scotland

depend on our trade within the UK and that's the

union that matters to Scotland.

Thank you.

Given the importance of that single market to Scotland, does

my right honourable friend agree that the last thing the Scottish

economy needs is perpetual uncertainty of another

independence referendum?

Mr Speaker, if anyone actually listens to businesses in Scotland,

and indeed to the people of Scotland, it's quite clear that

people do not want another divisive independence referendum

in Scotland other than individuals who are

obsessed with independence.

We need to listen to business, take a second

independence referendum off the table and

concentrate on getting the best possible deal

for Scotland and the UK from these negotiations.

With demands from Nissan suggesting the company will suffer

a loss in profits may be due compensation, can the Secretary of

State ensure businesses in Scotland that they will be entitled

to the same deal?

If that's the case, has he made an assessment of the cost of

such compensation?

Can I begin by congratulating the honourable gentleman on retaining

his position as a Shadow Scottish Secretary.

On the benches behind him, I understand is the Westminster

spokesman of the Scottish Labour Party and I'm sure it will emerge

during these questions how those two positions interrelate.

The point I would make in response to the question

is that we will have a common response across the UK and

whatever support is put in place for businesses in the North

of England will apply for businesses in Scotland.

Scotland has always looked out to the world.

Could the government do

more to rekindle the outlook in Scotland rather than the First

Minister creating uncertainty and constantly talking about

independence?

I agree that we need to see Brexit as an opportunity and

I was very interested to see yesterday that the leader of Glasgow

City Council also took that view that Brexit offered an opportunity

for Glasgow to continue to flourish.

So rather than doom-mongering which is a constant refrain of the SNP,

let's take a positive approach and seize the opportunities that are out

there for Scotland.

May I remind the Secretary of State for Scotland

that he was elected on a manifesto commitment

to "Safeguard British interests in the single market".

So will he and his government work with the Scottish Government,

respect the 62% of Scottish voters who voted to remain

within the European Union and protect our place within Europe?

Of course I will do that, but I will also respect

the half of voters in his own constituency

who voted to leave the EU.

The right honourable gentleman doesn't make much of it, Mr Speaker,

but a higher percentage of people in his constituency

voted to leave the EU than voted for him,

so let's respect everybody in this debate.

I'm committed...

I am committed to working with the Scottish Government.

I've met Michael Russell on a number of occasions,

the First Minister and the Prime Minister will meet on the

24th October and their engagement will be essential to achieving what

we want, the best possible deal for Scotland.

Yesterday we learned from statistics that the cost Brexit will cost

?66 billion a year.

If this is being prepared for the Cabinet Office,

surely they are also being prepared for the

Scotland Office so will

the Secretary of State for Scotland be candid with the house and candid

with the people of Scotland and tell us how much will Brexit cost?

We're not even at the stage of the negotiations.

What the Prime Minister has set out the process

for taking the negotiations forward, it's inevitable that we

will see press reports and speculation, leaks and all sorts of

other supposition.

What I want to do is to ensure that going into those

negotiations, we do so in conjunction with the Scottish

Government to get the best possible deal and that's what

my commitment is.

Thank you.

Has the Secretary of State seen the report published

yesterday showing that one half of all commercial fish and two

thirds of all pelagic fish caught in UK waters

were caught by boats from other EU countries?

Does he understand why Scottish fishermen

see these negotiations as a once-in-a-lifetime opportunity to

undo the damage caused by the Common Fisheries Policy.

Mr Speaker, I commend the Scottish Fishermen's Federation

and others as to their approach in relation

to the negotiations.

They see them as an opportunity for the very reasons

that he refers to in yesterday's report.

They were quite right to characterise the report and they

have my support in achieving that.

It is an assessment on the impact of the Scottish economy...

Some people are demanding that Scotland leave

the UK market week in and week out.

As I said earlier, I find it very surprising

that people who set out a great enthusiasm

for the European single market at the same time are

willing to dismiss the UK single market

which is worth four times as much

to the Scottish economy and employs

a million Scottish people.

Today's GDP figures in Scotland are welcome

and the major increase is a result

of the services sector, probably driven by the financial

services sector in Scotland.

So what is the Secretary of State doing to

protect that sector and can he give an assurance that he will

stand by the Conservative Party's commitment in the 2015 manifesto

that he says "Yes" to the single market?

We fully recognise the importance

of the financial sector in Edinburgh and Scotland

more generally.

I'm determined the interests will be protected and we

are working closely with them to make sure

they are very much to the forefront

as we move forward with establishing the UK's

negotiating position.

Question three, Mr Speaker.

With permission, I will answer questions three, six

and seven together.

Since the referendum, Scotland's office ministers have

held meetings to discuss the implications for Scotland.

We intend to hold further such meetings to

ensure Scottish business interests are fully represented in the

negotiations on the UK's exit from the EU and in any

future trade arrangements.

Does my right honourable friend agree that when we

negotiate free-trade deals outside of the EU

we can remove some of the protectionist

tariffs barriers the EU has erected thereby reducing

consumer prices for consumers in Scotland

and, indeed, the whole of the UK?

I do agree with my honourable friend and I believe that this government

and this country can be an advocate around the world for free trade.

Trade liberalisation between advanced economies can have a

positive impact on the consumer and that's what we want to see in

Scotland and across the UK.

He gets the maximum opportunities for Scottish business,

but also uses as an opportunity to demonstrate

that Scotland is better as part of the United Kingdom

and knock on the head all this talk of independence which

we incessantly hear from the party opposite.

Mr Speaker, I agree with my right honorable friend.

It is vital that we promote Scotland's

interests in that way but that we do so working

in conjunction with the Scottish Government.

Both governments can have a role to play.

As the Scotch Whisky Association has identified in developing new markets

in promoting that vitally important product's future.

Exports of Scotch with are up for the first

time in three years with a surge in exports to India.

Should the UK work together to support the export of

Great British products, including great Scottish products

like whisky?

Mr Speaker, I do as I said in my previous remarks and bodies

such as the Scotch whisky Association

acknowledge and accept that

and they want to see the two governments working together in

regard to that and that is what I am committed to doing.

If the government leaves the European

Union, via as specific trade arrangement with the EU, is he happy

to fall back on WTO work organisations?

Mr Speaker, I am sure that is the sort of speculation is

sought from ministers over the weeks and months ahead.

The Prime Minister has set out the process for

negotiating our exit from the EU and the conclusion of that process

I am confined we will have achieved the best possible deal

for Scotland and the rest of the UK.

The Secretary of State on many occasions extolled the

trade benefits of the single market in Scotland.

So regardless of whether the UK is a member state of

the EU or not, does he still believe it is in Scotland's interest

have membership of the single market rather than access third party

access?

As I have also said is that the United Kingdom will have abysmal

-- bespoke arrangement with the EU when we leave.

It is not appropriate or sensible

to see the negotiating process and context of existing

arrangements that have been done with other countries are the

existing structure of the EU.

What we should look to do is get the best

possible deal for businesses.

Our training bodies and organisations,

business employees in Scotland are saying they are struggling on how

the apprenticeship levy will work in Scotland.

Can he ensure that unlike his colleague, he will work with the

Scottish Government to give the people the information they need?

I am committed to doing that and I can

confirm that the apprenticeship levy will be discussed when the joint

ministerial council meets on the 24th of October.

What's are the areas in which these apprenticeships

could work will be the decommission of the oil industry and oil rigs.

We have already seen the loss of 80,000

jobs in that industry.

If we continue to lose contracts with

decommissioning to other countries this will continue.

Does the government have any strategy to make

sure that these crucial jobs remaining Scottish fans?

Mr Speaker, he will know the

government is committed to the industry.

It ?2.3 billion investments and associated tax

changes were exactly what the industry asked

in terms of support.

We have also established along with the Scottish Government the ?250

million Aberdeen city deal which will have at its heart a new

technology centre to ensure skills and jobs remain in the north-east.

Mr Speaker, a significant number of new welfare powers

came into force this September.

And gave the Scottish Parliament new choices of welfare in Scotland.

The joint ministerial working group in Scotland met

yesterday to continue it is important and constructive work

overseeing the transfer of remaining powers.

With that significant transfer of powers from the UK

Government to Edinburgh, does he agree with me the

Scottish Government should get on with exercising those powers

for the sake and welfare of the people of

Scotland, rather than wasting time on talk of a second referendum?

I agree.

These are significant powers which the Scottish Government and

the Scottish National Party asked for.

People around Scotland will be looking to see how

they are being deployed and what processes are being used.

I think the message coming from the people

in Scotland generally is get on with the day job to

the Scottish Government.

I am sure yesterday at the joint ministerial working group,

ministers would have stressed their desire

to see work programmes on a voluntary basis.

What efforts will his government make to ensure those are met?

We will respect the desire for the programmes to proceed on a

voluntary basis.

And that has been made clear.

What the people of Scotland will want to know is what

the Scottish Government intends to do in relation to people

who do not volunteer to be part of the programme.

Question number eight, Mr Speaker.

I will answer this question with question ten.

The government closely with industry to drive

investment and support jobs in the North Sea.

Revenue from the North Sea oil has dropped by ?10 billion

over the last two years.

What steps is the government taking to ensure

that public services in Scotland do not

suffer as result of this drop in revenue?

There has been a shock from global changes in the

oil and gas industry.

As the latest finance public figures show, being

in the UK protects living standards in Scotland.

This drop in revenues has been offset by a programme of

government support in tax relief and allowances as well as a host of

other areas.

Supply of home-grown free stocks is important to...

Can the Minister assure the house that the

government will continue to take steps to support the many jobs of

our foundation industries that depend on the sector?

My colleague is right to highlight this issue.

The UK chemicals sector is a vital part of our manufacturing industry

and an important contributor to the economy.

The government is working closely with the industry to

implement the desire to grow by ?105 billion by 2030.

A key element of that will be delivering to energy

and feedstock supplies.

Industry have been quite clear that more work

needs to be done to boost exploration.

In the Autumn Statement will this government bring forward

exploration incentives to protect employment and boost production?

It remains an important part, the continental

shelf is depleting.

The government has taken serious steps

in this area in Aberdeen with the city deal and I am not going to

comment on the Autumn Statement.

It is an issue of some focus for the government.

Mr Speaker, since Question Time began this morning,

five members on these benches have asked about membership of the

European Union.

Two have asked about Scottish jobs.

Seven members of the Conservative benches want to talk

about Scottish independence.

Who is obsessed with Scottish independence?

I could do no better than refer him

to the words of Adam Smith when he said that the union of 77

was a measure from which infinite good has been derived to Scotland.

Order - there is far too much noise.

He ought to be heard.

Not quite a debutante.

We can only hope.

The steel industry in Scotland remains a

vital part of the UK steel industry as a whole.

The government continues to engage with steel companies and

trade unions to in-store a sustainable industry for the UK for

a future.

Liberty House is taking more than 70% of its new workforce from

among former Tata steel employees.

It is to be congratulated for that which is good news for

Motherwell.

Would my honourable friend congratulate the

company for its apprenticeship programme which is an endorsement of

the industrial future of the country?

My honourable friend is right to

focus on the company under its new owners, liberty group,

with the support of the government.

This illustrates in supporting British

Steel, we have taken clear action to help the industry, including

flexibility over EU emissions regulations and many other areas.

I share his delight in the work that is when done with the

apprenticeships as well.

During recess I attended the reopening of

the works in Motherwell.

Will the Minister speak to the Scottish

Government on how you can save jobs in steel by putting together a

package that really works?

I am grateful to the honourable lady.

The government stands ready to work with

the Scottish Government to work on any area that can protect

Scottish jobs and Scottish steel.

I am afraid that is all we have got time for.

The next Scottish Questions will be on Wednesday the 23rd of November,

which is also the day of the Chancellor's Autumn Statement.

So it will be a busy day here at Westminster.

Do join us then if you can.

From all of us here at Westminster, goodbye.

DRUM INTRO

One, two, three, four!

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