:00:25. > :00:29.Hello and welcome to a very summery Westminster for the June edition of
:00:29. > :00:33.Scottish Questions. As you would expect on the day the latest
:00:33. > :00:38.unemployment figures are released, some questions on the state of the
:00:38. > :00:41.economy. And constitutional issues came to the fore. That is how
:00:41. > :00:47.proceedings began with a question on Scotland's place within the
:00:47. > :00:57.United Kingdom. Questions to the Secretary of State for Scotland.
:00:57. > :00:58.
:00:58. > :01:01.As the Prime Minister has made clear we believe Scotland is
:01:02. > :01:05.stronger in the United Kingdom and the United Kingdom is stronger with
:01:06. > :01:09.Scotland in it. Leading up to the referendum the Government will
:01:09. > :01:13.produce evidence and analysis to assess the benefits that Scotland
:01:13. > :01:17.gains from being part of the United Kingdom and the contribution that
:01:17. > :01:23.Scotland makes to our United Kingdom. I thank the Secretary of
:01:23. > :01:28.State for that answer. Would he agree with me that the defence of
:01:28. > :01:32.Scotland, England, Wales and Northern Ireland would be greatly
:01:32. > :01:39.enhanced rather than have a separate Scotland and defence
:01:39. > :01:46.matters to this country, the whole of this country, greatly. Well he
:01:46. > :01:51.makes an important point and ore the next 18 months, civil servants
:01:51. > :01:58.will be preparing analysis to show the basis of the arguments that we
:01:58. > :02:03.need to be involved in as Scotland confronts this debate. Protecting
:02:03. > :02:10.our citizens is one of the most important parts of our role in gft.
:02:10. > :02:16.We want to lack at our role in the world. -- role in government.
:02:16. > :02:25.Secretary of State and his Tory and Labour allies in the anti-
:02:25. > :02:29.independence coalition all say... All say... Tell it like it is.
:02:29. > :02:33.Secretary of State, his Tory and Labour allies in the anti-
:02:33. > :02:37.independence coalition say they all believe that the constitutional
:02:37. > :02:43.status quo is not sustainable. So with only days to go until the
:02:43. > :02:48.launch of the no campaign, could he outline to the House what joint
:02:48. > :02:53.proposal they have for further devolution and what powers will be
:02:53. > :02:58.devolved and when? I do hope he has not got himself into trouble for
:02:58. > :03:03.mentioning the independence word. But he is a brave gie, perhaps he
:03:03. > :03:08.thought it was a risk worth take. - - guy. It is rich of him to ask
:03:08. > :03:13.questions of us having delivered the biggest transfer of financial
:03:13. > :03:20.powers from London to Scotland since the act of union. When every
:03:20. > :03:24.time we ask him what independence mean, his proposals unravel.
:03:24. > :03:28.last time looked this was Scottish questions, for a second time, can I
:03:28. > :03:33.ask him given that he and his allies say that the constitutional
:03:33. > :03:37.status quo is not sustainable, what specific joint propose and do they
:03:37. > :03:43.have for the further devolution of powers? He didn't answer it the
:03:43. > :03:47.first time. Can he please answer it now I thought that the the
:03:47. > :03:52.honourable gentleman's party had welcomed the fact that the Scotland
:03:52. > :03:56.Act has set in place the biggest transfer of financial power, the
:03:56. > :04:00.transfer of stamp duty, land tax, north of the border. Can I say to
:04:00. > :04:05.him that the debate that he refers to that we need to get on with is
:04:05. > :04:10.the one about independence. That is whrooty UK government is committed
:04:10. > :04:16.to ensure we have the evidence, working with experts and others to
:04:17. > :04:20.ensure we're equipped for this debate across the country. Does he
:04:20. > :04:24.consider that Scotland being part of the United Kingdom is an
:04:24. > :04:30.important benefit in any international trade dispute? I
:04:30. > :04:36.particularly have in mind some year ago the efforts of United States to
:04:36. > :04:40.restrict the import of the export of his own constituency of finest
:04:40. > :04:45.quality cashmere goods in a dispute about bananas. Was the fact that
:04:45. > :04:49.Scotland was part of United Kingdom an important factor in ensuring a
:04:49. > :04:53.resolution of that issue? honourable gentleman is right. It
:04:54. > :04:57.was quit cal to -- critical to us in the borders and the row prove
:04:57. > :05:02.deucers of goods in Scotland that we were part of the United Kingdom
:05:02. > :05:05.and had great clout within the EU and could negotiate within the
:05:05. > :05:10.World Trade Organisation to get the right outcome. Our position in the
:05:10. > :05:16.world, the proTex of our citizens and the future of our economy,
:05:16. > :05:24.these are three key strands we will look at to make sure we are well
:05:24. > :05:29.informed in 24 is in. -- in the debate. We have heard the campaign,
:05:29. > :05:34.separatists for devolution. They don't like it. The word separation.
:05:34. > :05:40.They don't like the word independence. And in fact they want
:05:40. > :05:46.to leave Britain in order to make us more British. What a ludicrous
:05:46. > :05:52.set of proposals. I think there afs question mark somewhere. -- there
:05:52. > :05:56.was a question mark somewhere. I agree with the honourable gentleman.
:05:56. > :06:05.What representations has he had on whether an independent Scotland
:06:05. > :06:11.would wish to join the euro? None, but that is a matter for the SNP
:06:11. > :06:15.and the Scottish government. Thank you Mr Speaker. The Secretary of
:06:16. > :06:21.state maybe aware that I received answers to Parliamentary questions
:06:21. > :06:25.yesterday that indicates that although the Scottish Government
:06:26. > :06:30.say a separate Scotland will use sterling and the Bank of England
:06:30. > :06:35.and UK financial institutions, they have not yet undertaken any work
:06:35. > :06:39.behind the scenes in order to explore these options. No
:06:39. > :06:43.correspondence sent, no questions asked, no discussions taking place.
:06:43. > :06:49.Perhaps he agrees with me that the First Minister should spend less
:06:49. > :06:55.time in Hollywood and more time in Holyrood. Given that the Scottish,
:06:55. > :07:01.it was a good try, given the Scottish Government have made these
:07:01. > :07:08.statement about the economy, can I ask what steps he is taking in
:07:08. > :07:14.relation to the Scottish economy to clear up confusion of ambiguity and
:07:14. > :07:19.claims? I agree with the honourable lady that it is striking that the
:07:19. > :07:23.Scottish National Party and the Scottish Government, as they set
:07:24. > :07:28.out what has been their ambition for an independent Scotland are
:07:29. > :07:31.short on detail and aren't curious to ask about it. I start from the
:07:31. > :07:34.point that Scotland is stronger within the United Kingdom and the
:07:34. > :07:40.United Kingdom is stronger for having Scotland part of it and the
:07:40. > :07:44.economy is a key part of that argument. Thank you. I think we're
:07:44. > :07:48.clear in Scotland that in fact what we have got is we don't have
:07:48. > :07:53.argument, we have assertion, we have facts rather than fantasy 5
:07:53. > :07:57.even the arguments from the Scottish Government cannot pass the
:07:57. > :08:00.most basic test of credible evidence. Can I ask the Secretary
:08:00. > :08:06.of State and the whole UK Government that they can work with
:08:06. > :08:10.others to ensure that we do have credible evidence, argument, that
:08:10. > :08:15.passes the test of objective and independent scrutiny, to ensure
:08:15. > :08:19.Scottish people get the arguments they deserve. I agree with the
:08:19. > :08:24.honourable lady that it is important that this debate is well
:08:24. > :08:29.informed by detailed evidence and strong analysis. That is why we're
:08:29. > :08:32.getting civil servants to work through issues to engage with
:08:32. > :08:36.academics, think-tanks and other experts outside Government to
:08:36. > :08:41.ensure we have all the evidence to inform that debate. I'm confident
:08:41. > :08:49.that as we do that we will show beyond doubt that Scotland's place
:08:49. > :08:52.is stronger as part of the UK. Question No two. A question about
:08:52. > :09:00.modern apprentices. I'm in contact with the Scottish Government and
:09:00. > :09:08.later this week the British/Irish council will discuss programmes to
:09:08. > :09:15.support youth employment in those administrations. Last week in the
:09:15. > :09:19.Scottish Parliament, the Labour spoke person uncovered figures that
:09:19. > :09:23.showed that the 25,000 modern apprenticeships the Scottish
:09:23. > :09:26.Government is claiming to sets up, over 10,000 were people who were
:09:26. > :09:30.already in work. And would the minister agree with me that the
:09:30. > :09:37.Scottish Government should be spending public money creating
:09:37. > :09:42.additional jobs, not just rebadging jobs. I share the honourable lady's
:09:42. > :09:46.concerns about the way in which the Scottish Government seeds to
:09:46. > :09:52.present facts. But the facts are clear in relation to their
:09:52. > :09:56.responsibilities on employment. They have had 22 million pounds
:09:56. > :10:02.additional monies in relation to youth contract consequentials. I
:10:02. > :10:08.would like to see them focus on how they spend that, rather than their
:10:08. > :10:14.obsession with the constitution. would like to see greater brevity.
:10:14. > :10:18.Thank you does the minister, is the minister aware that almost every
:10:18. > :10:23.economic analysis shows beyond doubt that employment prospects in
:10:23. > :10:28.Scotland would be significantly reduced if Scotland became a
:10:28. > :10:32.country separate from the United Kingdom? I agree with the
:10:32. > :10:36.honourable lady, who I am sure will welcome with me the fact that
:10:36. > :10:42.employment in Scotland has increased by 18,000 in the last
:10:42. > :10:48.period. I am sure the minister has witnessed the ridiculous campaign
:10:48. > :10:51.by the Labour Party against what is one of most successful modern
:10:51. > :10:55.apprenticeship schemes in Scotland and their complaint is based on
:10:55. > :10:58.rules that they introduced and set themselves. Should the minister
:10:58. > :11:02.congratulate the Scottish Government for almost doubling the
:11:02. > :11:07.number of modern apprenticeships and also the extra �72 million of
:11:07. > :11:11.investment that we saw? Well I do notice that he didn't mention the
:11:11. > :11:17.word independence. So he is obviously on message. What I have
:11:17. > :11:21.to say in relation to employment and youth unemployment in Scotland
:11:21. > :11:28.is the UK and the Scottish Government should work on these
:11:28. > :11:31.issues. A question about what employment in Scotland. I will
:11:31. > :11:35.answer questions three and five together. This Government is
:11:35. > :11:42.committed to creating the right environment for economic growth to
:11:42. > :11:49.provide the basis for the creation of jobs. It will be no surprise
:11:49. > :11:54.that unemployment in slash is at crisis levels. It is still
:11:54. > :12:00.unacceptable and disgraceful numbers of youth unemployed. If it
:12:00. > :12:06.were not more my council in Inverclyde. Could we just have a
:12:06. > :12:11.question? Can I press on the Government to make unemployment
:12:11. > :12:15.figures, reduction of the figures, a priority in Scotland and will he
:12:15. > :12:22.join... We're grateful, but we must move on. Listen, I agree with the
:12:22. > :12:25.honourable gentleman, we must do everything question to reduce
:12:25. > :12:30.unemployment, particularly youth unemployment, which began to rise
:12:30. > :12:34.under the last Labour Government. We have through our measures and
:12:34. > :12:39.the work we have been doing with the Scottish Government, bearing
:12:39. > :12:42.down on this. I'm happy to discuss that further. As the Secretary --
:12:43. > :12:47.is the Secretary of state aware that the Scottish chambers of
:12:47. > :12:51.commerce have called for an expansion of investment in
:12:51. > :12:57.infrastructure to help Scottish businesses? What will he do to make
:12:57. > :13:02.sure this happens? Can I say she needs to recognise the serious
:13:02. > :13:06.steps that we're tairking to get the economy back on a secure path
:13:07. > :13:11.to growth after what we inherited from her Government and also
:13:11. > :13:18.bearing in minds the crisis we see in other parts of Europe. By
:13:19. > :13:24.cutting corporation tax and keeping interest rates and with specific
:13:24. > :13:30.measures for Scotland, including enterprise areas, we are taking
:13:30. > :13:35.action to help the Scottish economy. Does the minister agree that by
:13:35. > :13:41.cutting corporation tax, by reducing regulation and having the
:13:41. > :13:46.largest work programme the country has seen, we're succeeding in
:13:46. > :13:52.Scotland w14 thousand less unemployment this month. The third
:13:52. > :13:55.month in a row. I think we need to recognise things are going to
:13:55. > :14:00.continue to be challenging for people in Scotland and the United
:14:00. > :14:04.Kingdom. But he is right, the measures we are taking to get the
:14:04. > :14:11.economy on the right track are right and are the way in which we
:14:11. > :14:16.will create secure jobs. Does the Secretary of State recognise stat
:14:16. > :14:22.oil's decision to invest in the North Sea is a recognition that the
:14:22. > :14:26.new positive approach taken by the Treasury is bearing fruit? He is
:14:26. > :14:31.right that in the energy sector we have had significant announcements
:14:31. > :14:35.from stat oil and BP and others on the future of Scotland's energy
:14:35. > :14:39.needs in oil and gas and elsewhere. They recognise that is an important
:14:39. > :14:47.part of what this government is committed to and that Scotland is
:14:47. > :14:52.better as being part of United Kingdom. I am glad he welcomed the
:14:52. > :15:00.14,000 fall in unemployment. He will want to twbg news on foreign
:15:00. > :15:05.direct - o' welcome the news 07 foreign investment on jobs. But we
:15:05. > :15:08.should have done ward pressure on costs, particularly on fuel prices,
:15:08. > :15:13.which are one of the most significant cost pressures that
:15:13. > :15:18.businesses face. Will he take this opportunity today to speak to his
:15:18. > :15:23.colleagues in the Treasury to cancel the fuel duty rise planned
:15:23. > :15:29.for August? I would point out that thanks to the action this
:15:29. > :15:33.Government has take non-vo deucing the fuel duty stabiliser and
:15:33. > :15:37.abandoning the escalater, we are doing a lot to help motorists and
:15:37. > :15:45.will continue to do that. The clue is in the heading. Questions to the
:15:45. > :15:50.Secretary of State. Listening to the Secretary of State reminds us
:15:50. > :15:55.how isolated he is in Scotland in believing the answer to this crisis
:15:55. > :15:59.of weak economic demand is hash harsher austerity. Does he accept
:15:59. > :16:03.nearly twice as many people as on black Wednesday are being forced to
:16:03. > :16:07.work part-time, because there are not enough full-time jobs in our
:16:07. > :16:11.economy? And three hundred and tent thousand people in Scotland are
:16:11. > :16:19.struggling below the poverty line, despite being in work and real
:16:19. > :16:28.wages have fallen. Isn't this the real explanation of why we are
:16:28. > :16:33.facing a double dip rerecession He cannot forget the legacy of his
:16:33. > :16:36.government and the mess we inherited or be blinkered about the
:16:37. > :16:40.challenges in Europe and around the world. We are ensuring we create
:16:40. > :16:46.the right financial and economic conditions to ensure we get
:16:46. > :16:52.Scotland's and the UK's economy back on the foot. This is a
:16:52. > :16:57.question about agricultural. Thank you, Mr Speaker. I regularly meet
:16:57. > :17:03.with representatives of the Scottish agricultural industry,
:17:03. > :17:08.including the farmers union and individual producers much I look
:17:08. > :17:12.forward to engagement tomorrow when I attend the Royal Highland Show.
:17:12. > :17:18.Does the minister agree that those in the Scottish agricultural centre
:17:18. > :17:23.are better off with Scotland remaininged in the UK? I absolutely
:17:23. > :17:31.agree. An independent Scotland would shrink our home market of 60
:17:31. > :17:41.million consumers to five million over night. Farmers will be reliant
:17:41. > :17:41.
:17:41. > :17:46.of exporting their produce. Perhaps the Minister could try answering a
:17:46. > :17:51.question about the responsibility of the UK government. Is he aware
:17:51. > :17:55.of the concern about Scottish agricultural and horticulture of
:17:55. > :17:58.the seasonal agricultural workers scheme, has he made the
:17:58. > :18:03.representations to to the Home Office for continuation of the
:18:03. > :18:08.scheme? I know it. -- I note his concerns. I will meet with him to
:18:08. > :18:13.discuss it further. Another economic-related question about
:18:13. > :18:18.unemployment. I meet with Scottish ministers regularly to discuss a
:18:18. > :18:21.range of issues. Scottish ministers join me in Dundee for a summit to
:18:21. > :18:30.discuss youth unemployment in Scotland. We continued to work
:18:30. > :18:33.together on this important issue. With the information that there is
:18:33. > :18:41.(inaudible) going on in the apprenticeship schemes with people
:18:41. > :18:45.in work being counted as new apprenticeships. Off shore industry
:18:45. > :18:51.say they need them to fill their spaces in their industry. Should he
:18:51. > :18:55.not call an all party, all Parliament forum in Scotland about
:18:55. > :19:00.unemployment and stop this behaviour of the SNP running a
:19:00. > :19:05.single party state with their ministers wondering around having
:19:05. > :19:09.one party meetings? I appreciate the length of time he spent working
:19:09. > :19:13.on this particular issue over his political career. I also believe
:19:13. > :19:16.it's important that the parties can work together because the origins
:19:16. > :19:19.of youth unemployment lie elsewhere rather than just under this
:19:19. > :19:25.government's tenure. I'm happy to work with him and others to make
:19:25. > :19:29.sure we get all the best ideas focused on tackling youth
:19:29. > :19:34.unemployment. I welcome the Secretary of State's recent visit
:19:34. > :19:39.to my constituency's largest employer, Aviva, with 1100 staff,
:19:39. > :19:45.and the support for the working initiative which since the end of
:19:45. > :19:54.April created new employment and training opportunities in the area.
:19:54. > :20:00.What more can the government do to employ young people? I would like
:20:00. > :20:03.to thank her for the opportunity to visit with her the Aviva offices in
:20:03. > :20:06.their constituency and pay tribute to the work they are doing with
:20:06. > :20:14.young people. It's important we do all we can to support young people.
:20:14. > :20:19.That is why the youth contract is in place, helping to ensure the
:20:19. > :20:22.Scottish Government has support... There is plenty of scope for an
:20:22. > :20:25.adjournment debate, I think. Speaker, the Secretary of State
:20:25. > :20:30.recently visited my constituency. I wonder if he can give us a progress
:20:30. > :20:36.report on how he got on with the schools industry liaison
:20:36. > :20:40.committees? I regret to inform the honourable gentleman I have not
:20:40. > :20:46.made as much progress. I hope he recognises the important support we
:20:46. > :20:50.have given him in form of the enterprise allowances available.
:20:50. > :20:58.There I will catch up with him and the Scottish government role in it
:20:58. > :21:03.any time soon. Does he agree the plans to reform employment law will
:21:03. > :21:06.encourage small businesss to take on more young people. The employ
:21:06. > :21:11.law review will carry on throughout this Parliament. I look forward to
:21:11. > :21:16.seeing what proposals come forward in due course. A question about
:21:16. > :21:21.combating high energy prices. are committed to ensuring consumers
:21:21. > :21:26.get the best deal for their energy usage and has put in place measures
:21:26. > :21:31.to reduce household energy bills sms in May I held a summit bringing
:21:31. > :21:40.together the big six energy suppliers, Scottish consumer groups
:21:40. > :21:49.and Ofcom to -- offgom to address this issue. -- Ofgem to address
:21:49. > :21:54.this issue. The average energy prices have increased by 140% her
:21:54. > :21:59.household whereas the average income for households is a mere 20%.
:21:59. > :22:03.What is the Government doing to respond to people's worries,
:22:03. > :22:10.especially elderly people, people with disabilities and low income
:22:10. > :22:13.families to deal with what is now an onslaught on vulnerable people?
:22:13. > :22:18.The Government is continuing with cold weather payments and winter
:22:18. > :22:21.fuel payment and is bringing forward the green deal. We are
:22:21. > :22:25.working with voluntary organisations across Scotland to
:22:25. > :22:31.help them help support the most vulnerable to get access to all the
:22:31. > :22:36.benefits available to them for fuel issues. Mr Speaker, many islanders
:22:36. > :22:40.are telling me that the 5p fuel duty discount is not being passed
:22:40. > :22:44.on to the motorists. Will the minister speak to the bodies and
:22:44. > :22:49.ask them to investigate. They must make sure this discount is passed
:22:49. > :22:54.on to the motorists in its entirety. I'm concerned to hear what he has
:22:54. > :22:59.to say on that issue. I will be very happy to meet with him and
:22:59. > :23:03.other concerned island MPs to discuss it. This is a question
:23:03. > :23:08.about the funding for Scotland from the UK Government. The agreement
:23:08. > :23:12.sets out we are committed to a review of public funding
:23:12. > :23:16.arrangements once we deal with the deficit we inherited from the
:23:16. > :23:22.previous government. Whilst you would have to have an intelligence
:23:22. > :23:26.as profound as a spinnosa to understand central government
:23:26. > :23:30.funding of Scotland, isn't one thing clear, not only do we have no
:23:30. > :23:34.say over education and health in Scotland, but they run ours we pay
:23:34. > :23:44.over the odds for theirs. Perhaps the SNP's should be careful what
:23:44. > :23:45.
:23:45. > :23:47.they wish for when they call for independence? He more than most
:23:47. > :23:51.understands the complexities of public spending in this country. If
:23:51. > :23:55.I might say to him, our priority has to be to reduce the deficit. We
:23:55. > :23:58.can then look again at these issues. I would point out to him, within
:23:58. > :24:05.England there are quite large variations. The figure for health
:24:05. > :24:09.spending in London is higher than that of Scotland. Mr Speaker, given
:24:09. > :24:13.that the Scottish Government have had no discussions with either the
:24:13. > :24:16.Cha or the Bank of England to have a place on the Bank of England's
:24:16. > :24:21.Monetary Policy Committee, which would be a committee of a foreign
:24:21. > :24:25.country, does the Secretary of State agree with me this is another
:24:25. > :24:29.assertion that (inaudible (to Scottish people. He Seine tierl
:24:29. > :24:32.right to highlight again the assertion that is are made by the
:24:32. > :24:36.Scottish Government rather than detailed evidence and analysis
:24:36. > :24:40.which we as a Government are determined to provide for this
:24:40. > :24:46.great debate. They seem to be willing and able to swap a good
:24:46. > :24:50.partnership for a new dependency. That is not right. This is a
:24:50. > :24:54.question relating to the fishing industry. The UK government warked
:24:54. > :25:00.hard to influence the content of the general approach at fisheries
:25:00. > :25:08.council. It would deliver positive benefits for Scotland's fisheries
:25:08. > :25:16.and those depend on them. More moves towards more regalised
:25:16. > :25:21.fisheries management and that fish discards are eliminated. I welcome
:25:21. > :25:27.the progress last week. Does the minister think this is an
:25:27. > :25:31.appropriate juncture in the process to introduce more transparency by
:25:31. > :25:40.the UK government making public the individuals and companies which
:25:40. > :25:45.hold fish stock quota here? What I think I agree with the honourable
:25:45. > :25:49.lady on is that the UK and Scottish Government work well together. The
:25:49. > :25:54.fisheries council is a good example of both governments working
:25:54. > :26:00.together in that way for the benefit of Scotland's fishermen.
:26:00. > :26:03.She is absolutely right. We need a register of active fishermen to
:26:03. > :26:07.show... The House must come to order. The House should be
:26:07. > :26:13.listening to the Chair of the Ken Livingstone environmental Food and
:26:13. > :26:21.Rural Affairs Select Committee, listening with respect.
:26:21. > :26:26.fisheries. She's absolutely right. Without a register we do not know
:26:26. > :26:33.who our active fishermen in Scotland and who are slipper
:26:33. > :26:38.skippers. The ministers both here in the UK government and the
:26:38. > :26:46.Scottish Government will have heard her comments as a respected
:26:46. > :26:50.contributor on such matters. This is a question the by centenary of
:26:50. > :26:55.Dr David Livingstone. I have discussed the best way for the UK
:26:55. > :26:59.Government to mark this bicentenary. Scotland office will hold a
:27:00. > :27:04.commemorative event at Dover House. My officials will work will other
:27:04. > :27:10.interested parties to ensure this anniversary is celebrated across
:27:10. > :27:16.the UK. Would he also join with me in supporting my invitation to the
:27:16. > :27:21.President to visit the UK during the bicentenary and as part of that
:27:21. > :27:26.visit to come to my constituency? Can I commend the honourable member
:27:26. > :27:29.for the role he has played in promoting the David Livingstone
:27:29. > :27:34.bicentenary which has great resonance in his constituency. Yes,
:27:34. > :27:39.the Scotland office will work with him and others to encourage the
:27:39. > :27:44.President to come to Scotland. is all we have time for at the
:27:44. > :27:48.moment. That is all from Scottish Questions for the couple of months.
:27:48. > :27:51.With the summer break the next Scottish Questions here at