:00:23. > :00:27.Hello and a warm welcome to Westminster for the June edition of
:00:27. > :00:31.the Scottish questions. What a difference a few weeks makes. The
:00:31. > :00:36.last programme came the day before the Hollyrood elections which gave
:00:36. > :00:40.the SNP an overall majority and now we have the commitment to an
:00:40. > :00:44.independence referendum within the next five years. So no shortage of
:00:44. > :00:50.topics for MPs to get their teeth into. Here is a flavour of how
:00:50. > :00:56.things began... Questions to the Secretary of State for Scotland, Mr
:00:57. > :00:59.Graham Morris. Question number one. I have regular discussions with my
:00:59. > :01:03.right honourable friend the Chancellor of the Exchequer on a
:01:03. > :01:07.wide range of issues including the state of the economy. Inflation is
:01:07. > :01:13.being pushed higher by rising global commodity prices, a global
:01:13. > :01:19.problem that requires global solutions. I thank the Minister for
:01:19. > :01:24.his answers. It is clear the government's VAT hike in January
:01:24. > :01:26.has helped to drive up inflation which is hitting consumer spending,
:01:26. > :01:31.squeezing family incomes and holding back growth. Will the
:01:31. > :01:34.Secretary of State now speak up for families and businesses in Scotland
:01:35. > :01:40.and urge the Chancellor to reverse that rise to help boost consumer
:01:40. > :01:44.confidence and bring down inflation? As the honourable member
:01:44. > :01:48.knows the former Chancellor and Scottish MP the right honourable
:01:48. > :01:53.member for Edinburgh South said he would have done exactly the same in
:01:53. > :01:57.relation to VAT. And a cut in VAT would do nothing to reverse global
:01:57. > :02:01.commodity price rises but we do a lot to reverse the government's
:02:01. > :02:08.hard-won credibility for getting the deficit down. Credibility on
:02:08. > :02:11.economic matters does not seem to be important to the party opposite.
:02:11. > :02:15.In answer to a written parliamentary questions by me the
:02:15. > :02:18.Office for National Statistics confirmed that four out of the last
:02:18. > :02:22.five years the rise in domestic gas prices outstripped the rate of
:02:22. > :02:26.inflation and that is before the latest rise. Yet family income is
:02:26. > :02:35.about best remain static. What steps can the government take to
:02:35. > :02:39.help hard-pressed families to avoid these costs in the winter? As the
:02:39. > :02:45.honourable member will know the government is concerned about the
:02:45. > :02:51.rise of fuel prices, particularly gas prices as he highlights. One of
:02:51. > :02:58.the measures it has taken is to ensure that the poorest families do
:02:58. > :03:03.have protection a relation to their fuel costs. I am sure the Minister
:03:03. > :03:07.will welcome the inquiry announced today but Ofgem on the price rise
:03:07. > :03:11.to be announced by ScottishPower and the way they have announced it
:03:11. > :03:14.to consumers. Does he agree with me that it is inappropriate for energy
:03:14. > :03:18.companies do have added to the increased cost of living in
:03:18. > :03:25.Scotland with a decision to hike domestic bills and can he tell us
:03:25. > :03:30.what he is doing about it? As the honourable lady knows there is
:03:30. > :03:39.widespread concern in Scotland at the actions, particularly in
:03:39. > :03:42.relation to the recent rises in fuel costs by ScottishPower. As the
:03:42. > :03:48.honourable lady knows the Secretary of State and I have raised these
:03:48. > :03:52.issues with the energy companies. Although it is very nice to meet up
:03:52. > :03:57.I think what Scottish consumers want it action as their bills are
:03:57. > :04:04.facing a rise an average of �198 a year when wages are being frozen
:04:04. > :04:08.cod prices are rising above the target inflation rate and now that
:04:08. > :04:12.borrowing is �46 billion higher unexpected because of that decrease
:04:12. > :04:17.in economic activity, would the Minister now greet his time for
:04:17. > :04:22.another plan and a temporary cut in VAT which Labour called for?
:04:22. > :04:27.will not surprise the honourable lady to say that most certainly not.
:04:27. > :04:33.The honourable lady, in setting it out -- in setting out the woes she
:04:33. > :04:41.does, never acknowledges her part as a minister in bringing this
:04:41. > :04:46.country to the verge of bankruptcy, or a party's part. Or the need to
:04:46. > :04:50.take action, she knows as well that the shadow chancellor is in a
:04:50. > :04:58.majority of one in terms of his proposals and has not set out...
:04:58. > :05:02.must move on. This was a question about the benefits of the union
:05:02. > :05:05.from the Tory MP for Carlisle. There are government formally
:05:05. > :05:12.believes - Matt Ridley Scott and benefits from being part of the UK
:05:12. > :05:18.and that the UK benefits from having Scotland within it. I agree
:05:18. > :05:21.wholeheartedly. As someone who represents a seat just over the
:05:21. > :05:27.border in England would the Minister also agree that England
:05:27. > :05:31.benefits from being part of the Union and it is in the interests of
:05:31. > :05:38.all of us that we all remain part of the UK? I endorse what my
:05:38. > :05:41.honourable friend has just said. The union is of great benefit to
:05:41. > :05:44.all of the UK, however, my constituents still want to see
:05:44. > :05:48.fairness between Scotland and England. With this in mind what
:05:48. > :05:56.plans as the Minister had to review the current Barnett Formula? Grey M
:05:56. > :05:59.Evans is the Tory MP for Weaver Vale. Last night we recognised this
:05:59. > :06:03.was an issue across the UK, however, we are committed to reviewing it
:06:03. > :06:09.when we have resolved at the current financial problems we
:06:09. > :06:13.inherited from the party opposite. Is that a separate Scotland simply
:06:13. > :06:17.would not have been able to answer by the global banking crisis on its
:06:17. > :06:27.own and had it been separate would now be heading the way of Ireland
:06:27. > :06:27.
:06:27. > :06:32.The scale of the financial disaster that befell the Royal Bank of
:06:32. > :06:36.Scotland and Halifax Bank of Scotland would have put a crippling
:06:36. > :06:42.burden on Scotland by being part of the UK. We are sharing the risks
:06:42. > :06:47.and recovery and that is the right way forward. Does the Secretary of
:06:47. > :06:52.State agree with me that whilst the future of the Constitution is hotly
:06:52. > :06:59.debated there is no place for leading Unionists to describe the
:06:59. > :07:03.supporters of Scottish independence as neo-fascists? It is incumbent
:07:03. > :07:09.upon all of us in this debate to ensure we use moderate appropriate
:07:09. > :07:13.language. Given what the Secretary of State has just said is it a
:07:13. > :07:16.benefit to the union and Scotland that the House of Commons Scottish
:07:16. > :07:22.affairs select committee is chaired by somebody who last night
:07:22. > :07:27.described Scotland's majority party of government as neo-fascist?
:07:27. > :07:33.is an issue he should take up with the honourable gentleman himself.
:07:33. > :07:38.In this House we do not like challenges to one another's on a,
:07:38. > :07:42.or otherwise. It is a matter for the honourable gentleman to raise.
:07:42. > :07:45.I have made my commission -- position clear. It is important we
:07:45. > :07:55.are careful about language and we have a debate on the substance of
:07:55. > :07:58.the issues. I will answer question three and five together with
:07:58. > :08:00.permission. My right honourable friend the Secretary of State and I
:08:00. > :08:03.have had regular discussions with my right honourable friend the
:08:03. > :08:06.debited from in astonishes. The government is committed to
:08:06. > :08:13.establishing they Commission later this year to consider the West
:08:13. > :08:17.Lothian question. Time is of the essence here because this is a
:08:17. > :08:21.difficult question. The commission will need time to consider its
:08:21. > :08:24.recommendations and then this House will need time to consider the
:08:24. > :08:27.outcome of those recommendations. It would be much better that this
:08:27. > :08:34.is done at a time of constitutional peace rather than at a time of
:08:34. > :08:39.crisis. I respect the honourable lady's passion on the subject and
:08:39. > :08:44.she has a Bill before the House was charters on these issues which I
:08:44. > :08:48.understand will be heard on the first Friday of the September sit-
:08:48. > :08:52.in which will give the House eight chance to debate these issues. I
:08:53. > :08:57.will convey her call for urgency to the debited Prime Minister. Having
:08:57. > :09:02.passed the Scotland Bill and with new powers devolved to Wales does
:09:02. > :09:06.my honourable friend agree that the last thing we want is another
:09:06. > :09:12.expensive Parliament Assembly, or talking shop in England? The
:09:12. > :09:19.British Parliament here can cope with matters than with -- with
:09:19. > :09:25.English matters but decided by English MPs. I have always
:09:25. > :09:29.expressed the view that there was no desire for an English parliament
:09:29. > :09:36.and the same two be but always written to me after two so I was
:09:36. > :09:40.wrong. -- people have always written to me after to say I was
:09:40. > :09:45.wrong. Does he agree the issue is more complex than some members give
:09:45. > :09:48.to understand and a good example of that was the debates we had before
:09:48. > :09:51.Christmas on tuition fees for universities. That might have been
:09:51. > :09:58.regarded as a purely English issue but in fact it had tremendous
:09:58. > :10:01.consequences for Scotland. I do acknowledge that comment, it is a
:10:01. > :10:06.complex issue and that is why the coalition government is committed
:10:06. > :10:13.to establishing a commission to look at the issue and I hope it
:10:13. > :10:16.will be able to take evidence from people like the honourable lady.
:10:16. > :10:20.am sure the honourable gentleman is right when he says there is no
:10:20. > :10:27.demand for an English parliament but does he not accept that the
:10:27. > :10:32.proposal to it effectively have two classes of MPs in his house does
:10:32. > :10:35.amount to setting up an English parliament in this building and
:10:35. > :10:41.that is a road he will go down if his government except having two
:10:42. > :10:47.classes of MPs in his house. I do not acknowledge that. Because the
:10:47. > :10:50.devolution settlement -- that comment because the devolution
:10:50. > :10:54.settlement means there are different spot it --
:10:54. > :10:57.responsibilities in this House. The government is committed to looking
:10:57. > :11:01.at the issue of the West Lothian question which is based at standard
:11:01. > :11:11.issue which the previous government ignored and will set up a
:11:11. > :11:13.
:11:13. > :11:17.With permission I will answer the questions together. The plan for
:11:17. > :11:20.growth published in the March Budget set at Ibrahim Mogra forms
:11:20. > :11:23.to create the right conditions for private sector-led growth. This
:11:23. > :11:26.month the government launched the next stage of the growth of the
:11:26. > :11:31.with the central purpose of creating the right conditions for
:11:31. > :11:34.business to be established to invest, grow and create jobs.
:11:34. > :11:37.time when the Treasury is bringing about stability to the banking
:11:37. > :11:41.sector and banking regulation does my right honourable friend agree
:11:41. > :11:51.with me that the SNP's right for independent Scotland could
:11:51. > :11:57.
:11:57. > :12:01.destabilise gone and Oz are The number of questions and the
:12:01. > :12:04.timing is uncertainty which is no good for the Scottish economy.
:12:04. > :12:08.Small and medium-sized companies are vital engines of growth and
:12:08. > :12:13.also job-creation in Scotland and across the UK. In the economic
:12:13. > :12:16.climate improving access to funding for those is a priority. Can my
:12:16. > :12:19.right honourable friend tell the House was at sea is taking to
:12:19. > :12:25.address this challenge and do those steps include working with
:12:25. > :12:29.organisations like the Federation for small businesses in Scotland?
:12:29. > :12:34.The Conservative MP for Macclesfield.
:12:34. > :12:37.Access to Finance is a critical issue and unless we get another
:12:37. > :12:41.lending to small and medium-sized businesses we will not get the
:12:41. > :12:45.economy growing once again. That is why it is central to the plan for
:12:45. > :12:49.growth to make sure we create the conditions in which we can see
:12:49. > :12:59.businesses start, grow and invest in the appropriate way. And why we
:12:59. > :13:00.
:13:00. > :13:04.have set out tough targets for Way to the Secretary of State agree
:13:04. > :13:09.that it is essential for business growth that businesses have access
:13:09. > :13:12.to faster broadband? Dotty to share my concern that many constituencies
:13:12. > :13:17.in Scotland do not have access to this, and can he say what
:13:17. > :13:21.discussions he has had with the Scottish Government over this?
:13:21. > :13:24.week or so ago when I met the honourable lady to discuss the
:13:24. > :13:29.situation with the economy in Ayrshire, this was one of the key
:13:29. > :13:32.issues she wanted to raise. We are committed to fast broadband across
:13:32. > :13:36.the United Kingdom, and we're in discussions with the Scottish
:13:36. > :13:40.Government about how they should go about implementing that. It is
:13:40. > :13:44.vital that we see it in M and the Borders and all parts of the
:13:44. > :13:50.country, and we're happy to work with her to make sure we achieve
:13:50. > :13:54.that. Has the Secretary of State had an opportunity to read the
:13:54. > :13:57.government expenditure and revenue study published this morning, which
:13:57. > :14:01.shows that the Scottish economy is outperforming the UK economy and
:14:01. > :14:04.carrying a lower deficit? Will he take this opportunity to
:14:04. > :14:09.congratulate the Scottish Government on its efforts to
:14:09. > :14:12.promote stability pride promoting economic growth. Us that is a
:14:12. > :14:17.typically interesting interpretation of the figures in
:14:17. > :14:21.the report this morning, which show that Scotland is running at a
:14:21. > :14:25.deficit. That highlights the volatility and the difficulties
:14:25. > :14:29.that are associated with the different measures. Can I say that
:14:29. > :14:34.it is absolutely vital that we get Scotland's economy back on the
:14:34. > :14:38.right that in. That is why we are cutting corporation tax, keeping
:14:39. > :14:42.interest rates low, reducing the burden on national insurance. I am
:14:42. > :14:49.happy to work with the Scottish Government to ensure the economy
:14:49. > :14:59.grows. We need to work in partnership. This is a question
:14:59. > :14:59.
:14:59. > :15:03.about the Greenock coastguard station. I want to pay tribute to
:15:03. > :15:09.David Cairns who had been campaigning to save the Clyde
:15:09. > :15:15.coastguard station before his tragic death. The waters around
:15:15. > :15:19.Argyll and Bute presents a unique challenges seafarers. And if the
:15:19. > :15:23.Clyde coastguard station is closed, all that valuable local knowledge
:15:23. > :15:27.held by the people who work there will be lost. Will the Minister
:15:27. > :15:32.please drop his to the attention of the Transport Secretary and urge
:15:32. > :15:38.him to keep the station opened? is appropriate there is mention of
:15:38. > :15:43.David Cairns at this first Scottish Questions since his death, having
:15:43. > :15:46.served with such distinction as a Scotland Office minister. I can
:15:46. > :15:51.assure my honourable friend that the points he made will have been
:15:51. > :15:55.heard, as they were in the recent Westminster Hall debate that he
:15:55. > :15:59.took part in, and the Department of Transport will not make any
:15:59. > :16:04.announcement on the future of Coastguard stations until the
:16:04. > :16:09.transport select committee has reported. I would like to associate
:16:09. > :16:13.myself with the comments regarding David Cairns. The Minister would be
:16:13. > :16:19.aware of the concern in Scotland about what it is it at -- he
:16:19. > :16:24.actually does. Could I offer him the opportunity to LA that concern
:16:24. > :16:30.by making, in a very clear and unambiguous way, his opposition to
:16:30. > :16:37.his government's plans to close the coastguard centre in Greenock. Will
:16:37. > :16:41.he stand up for Scotland now in regard to Greenock? As he knows,
:16:41. > :16:45.the Scotland offers always makes the case for Scotland and poor
:16:45. > :16:49.facilities and resources within Scotland. I very much welcome the
:16:49. > :16:52.approach of my colleagues in the Department of Transport, saying
:16:52. > :16:57.that they will listen to all the representations that are made,
:16:57. > :17:03.having carried out a consultation and awaiting the report of the
:17:03. > :17:09.Transport Select Committee. Clyde Coast Guard is important on the
:17:09. > :17:16.west coast, and as a West Coast MP I believe we have already suffered
:17:16. > :17:23.enough on this. Does he agree that we need Stornoway, Shetland and the
:17:23. > :17:28.Clyde as an insurance policy? characterise the honourable member
:17:28. > :17:32.as a doughty fighter for the station in Stornoway. He has made
:17:33. > :17:36.very significant representations, and they have been heard, and my
:17:36. > :17:38.colleagues in the Department of Transport will announce their
:17:38. > :17:48.conclusion after the Transport Select Committee has delivered its
:17:48. > :17:53.
:17:53. > :17:57.report. The Scottish Government included to the devolution of
:17:57. > :18:05.corporation tax within his requests for the amendment of the devolution
:18:05. > :18:09.Bills. On the same day, the Business Secretary said that the
:18:09. > :18:15.logic of devolving corporation tax was irresistible. He then said that
:18:15. > :18:18.he fully supported the government's position in opposing it. Is not the
:18:18. > :18:21.Business Secretary at bit of an embarrassment bows to the
:18:21. > :18:25.government and to Scottish Business? And is it not about time
:18:25. > :18:30.that he starts speaking to the Secretary of State of Scotland
:18:30. > :18:40.about important matters like corporation tax? For I can assure
:18:40. > :18:50.him that the Business Secretary and I are at one on this issue. This is
:18:50. > :18:53.a question about discussions with the agriculture industry. We
:18:53. > :18:56.regularly discussed devolution issues as part of the Scotland Bill,
:18:57. > :19:03.which is delivering the government's commitment to settle
:19:03. > :19:08.in -- strengthening the devolution settlement. I thank him for that
:19:08. > :19:11.response. He will no doubt be acutely aware of how important
:19:11. > :19:16.reform of the Common Agricultural Policy is, to farming in Scotland
:19:16. > :19:21.and elsewhere in the UK. Given the importance of the industry to the
:19:21. > :19:28.economy, does he agree with me that it is essential we secure a deal
:19:28. > :19:33.that is fairer and more transparent for our farmers? He gave an answer
:19:34. > :19:40.to a different question, and the Speaker is now telling us that.
:19:40. > :19:45.Just to clarify that. Thank you Mr Speaker, I can advise the
:19:45. > :19:48.honourable lady that that my right honourable friend the Secretary of
:19:48. > :19:58.State for Scotland was in Brussels last week and was making the very
:19:58. > :20:02.
:20:02. > :20:09.point that she has made in her questions. I could referred the
:20:09. > :20:14.honourable lady to my previous answers. I am most grateful as ever
:20:14. > :20:19.to my honourable friend. Has the Advocate-General had time, have
:20:19. > :20:25.they received an update on progress being made by the expert group set
:20:25. > :20:31.up by the Scottish Government looking at the role of the UK
:20:31. > :20:35.Supreme Court? The Advocate-General wrote to the chair of the Scottish
:20:35. > :20:40.Government's expert group offering to meet with them, but now has
:20:40. > :20:43.received a response saying that their timetable means they have not
:20:43. > :20:49.had time in the first instance to receive submissions or hear
:20:49. > :20:53.evidence. So what we appear to have his and you expert group set up by
:20:53. > :21:00.the First Minister one week, which meets the following week, no
:21:00. > :21:05.evidence taking in any week, and reports the next week. That is a
:21:05. > :21:15.disappointing response. Will the government has start supporting the
:21:15. > :21:16.
:21:16. > :21:23.integrity and independence of Scots Lough? -- Scots Law. I would have
:21:23. > :21:27.hoped Mr Speaker that the honourable gentle man, like his
:21:27. > :21:32.colleague, it would have sought to disassociate himself from the
:21:32. > :21:40.appalling comments which the First Minister has made about Lord Hope,
:21:40. > :21:47.which had been described as foolish as juvenile. There are too many
:21:47. > :21:52.private conversations taking place here. It is discourteous. What
:21:52. > :21:55.possible confidence can we have in the findings of a group which is
:21:55. > :22:00.unwilling to meet the Advocate- General, who last year established
:22:00. > :22:07.an inquiry for precisely the same purpose as this group has been
:22:07. > :22:13.established? He makes an extremely good point, as I said in my initial
:22:13. > :22:18.response, it seems incredible that a great set up to look at this very
:22:18. > :22:23.complicated issue is not going to take evidence, not going to receive
:22:23. > :22:27.submissions. I'm pleased to say that the Lord Advocate -- the
:22:27. > :22:35.Advocate-General has made his information available to the grave.
:22:35. > :22:39.So that may give us some confidence in the report he produces.
:22:39. > :22:42.White Paper set out a strategy for creating opportunities and
:22:42. > :22:48.providing the conditions for private sector growth through trade
:22:48. > :22:55.and international investment. The Minister for trade and investment
:22:55. > :22:58.is visiting Scotland in July. he share my fear that has got a
:22:58. > :23:03.should government's plans for a referendum on 7th -- separation
:23:03. > :23:07.will undermine its efforts to create jobs in Scotland? He is
:23:07. > :23:11.right to highlight what we are focusing on as a government. The
:23:11. > :23:16.plan for growth is 60 make us the most competitive tax system in the
:23:16. > :23:23.G20, to insure that we are the best place in Europe to start, grow
:23:23. > :23:28.Llansannan said business. -- and finance and business. None of that
:23:28. > :23:34.can be done in the and 70 which the independence referendums would
:23:34. > :23:38.create. Does he agree that the Olympics offer as splendid
:23:38. > :23:46.opportunities for promoting investment to Scotland? In that
:23:46. > :23:51.regard, is it not tragic that the talks will fly over John O'Groats?
:23:51. > :24:00.He makes his point as elegantly as I would expect him to. I'm sure
:24:00. > :24:04.those who are organising the trip will have heard his points.
:24:04. > :24:09.seminar I hosted in Arizona last month discussed how to tackle a
:24:09. > :24:13.high level of youth unemployment in M. The Scotland Office is working
:24:13. > :24:17.with key partners to focus resources on the most challenging
:24:18. > :24:24.areas identified at the seminar. We look forward to working with the
:24:24. > :24:31.government on this issue. One of the areas of major concern
:24:31. > :24:36.identified at a seminar was a high levels of unemployment fast amongst
:24:37. > :24:43.people between 16 and 18, of which seems to have slipped off the radar.
:24:43. > :24:48.He was present at that meeting and Mark that as a very important point.
:24:48. > :24:55.What assessment has been made, and what is going to be done about that
:24:55. > :24:59.particular issue? I thank him for his participation in that seminar,
:24:59. > :25:04.the first in a series we will be holding to tackle what is a deep-
:25:04. > :25:08.rooted problem, not just in Ayrshire but elsewhere. It is one
:25:08. > :25:12.that has defied governments through the ages. He rightly points out
:25:12. > :25:15.that the Secretary of State was at that salmon are. If we continue to
:25:15. > :25:21.discuss the challenges faced by youth unemployment, and I'm happy
:25:21. > :25:25.to discuss it with him again in due course. As he knows, Ayrshire has
:25:25. > :25:31.some of the worst rates of unemployment and youth unemployment
:25:31. > :25:37.in Scotland. In 2007, Scotland had the highest levels of employment in
:25:37. > :25:41.Britain, it now has the lowest levels. What more can the
:25:42. > :25:47.Westminster government do to work with the Scottish Government to
:25:47. > :25:52.bring in concrete steps to address this problem? He I would make two
:25:52. > :25:56.observations. On the first of those, of course, we are at a stage now
:25:56. > :26:00.when we need to get the economy in a place where we can see sustained,
:26:01. > :26:05.balanced growth. In complete contrast to the situation we
:26:05. > :26:08.inherited from her government. On her second point, she is right to
:26:08. > :26:14.highlight the serious economic power is that the Scottish
:26:14. > :26:22.Government already have. And it is vitally important that we work
:26:22. > :26:28.together to ensure that we do the best for people across Scotland.
:26:28. > :26:32.the issue was raised in discussions between the Deputy Prime Minister
:26:32. > :26:36.and the Secretary of State for Scotland, and the First Minister,
:26:36. > :26:41.on 9th June. As announced by the Chancellor and the Secretary of
:26:42. > :26:50.State on 13th June, the government is bringing forward to 2011 the
:26:50. > :26:56.power for Scottish ministers to make repayments. As the Minister
:26:56. > :27:03.will be aware, there are teenagers game is about to take case in the
:27:03. > :27:08.UK. The force road rage is to be funded by the Treasury, the Mersey
:27:08. > :27:14.gateway interests should -- Cheshire to be funded by tolls. How
:27:14. > :27:19.can the Government justified that? The justification is devolution, it
:27:19. > :27:21.is a decision of the Scottish Government to proceed with the 4th
:27:21. > :27:28.road bridge replacement crossing on the basis that there will be no