Ayrshire Growth Deal

Patricia Gibson Excerpts

Thursday 19th January 2017 Commons Chamber

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

This evening’s debate could not be more important to the good people of Ayrshire. As everyone at home and everyone in the Chamber can see, it is also very important to the MPs from across Scotland who have turned out to show their support for the Ayrshire growth deal. The Ayrshire growth deal is of huge importance to re-energising of the economy of the whole county of Ayrshire. The whole of Ayrshire, including the part I represent, has quite breathtaking natural beauty in parts. However, no one would deny that it also has its challenges.

The Ayrshire growth deal, should it secure the necessary support from the UK Government, would represent a step-change in economic growth and the economic prospects of Ayrshire. The Scottish Government are already supportive, but UK Government support, and the value it can bring cannot and must not be underestimated. Indeed, the entire Ayrshire growth deal depends on support from the UK Government.

Targeting the costed £359.8 million of investment would support a number of exciting projects, and generate and stimulate real, lasting and inclusive economic growth. The Scottish Government are enthusiastic and I understand—correctly, I hope—that the UK Government are receptive to it as well. I am keen tonight for the Minister to articulate his Government’s support for this bold, ambitious, innovative and transformative vision for the whole of Ayrshire. The feedback from the Secretary of State for Business, Energy and Industrial Strategy has been most encouraging and I understand that the Secretary of State for Scotland has also expressed his support for this initiative. I am therefore both lobbying and urging the Minister today to do all he can to ensure that on the day of the spring Budget, 8 March, the Ayrshire growth deal is firmly on the UK Government’s agenda. There is no doubt that on the Scottish National party Benches and across the whole county of Ayrshire there is a collective will to maximise the considerable and significant economic potential of this particularly picturesque part of Scotland.

We all know that in the past such growth deals have focused on cities. However, I sense that there is some interest in seeing how such an initiative would work on a diverse county such as Ayrshire, with its mix of urbanisation, towns, rural elements and two islands. Ayrshire is a diverse county with so much to offer. There is no doubt that stimulated growth would be repaid, as it would do much to re-energise, galvanise and revitalise the considerable untapped potential of the Ayrshire economy.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I congratulate my hon. Friend on securing this very important debate for our area. She rightly says that to date the Government have focused on city deals. City deals certainly have a place and we welcome the investment they have brought to Scotland. However, in terms of connectivity and distance between cities, there is no doubt that another approach needs to be undertaken to regenerate areas like Ayrshire, which have suffered from de-industrialisation.

I was looking today at the latest unemployment figures: 1,960 in my constituency of Kilmarnock and Loudoun, the 76th highest claimant rate by constituency; 1,745 in Ayr, Carrick and Cumnock; 1,635 in Central Ayrshire; and 2,185 in North Ayrshire and Arran, the 29th highest claimant rate by constituency. It is therefore really important that a new way is found to re-industrialise our area.

[Patricia Gibson]

The figures my hon. Friend quotes paint their own picture of the challenges faced by the entire county of Ayrshire. I am sure the Minister was listening keenly and will take them on board.

For Ayrshire to truly reach its potential, it is essential to reduce inequalities across communities and give everyone a stake in Ayrshire’s growth. Therefore, inclusive growth is, and must be, an integral part of the Ayrshire growth deal business case. A successful economy must ensure that all the talents of our people are harnessed, which will help Ayrshire to be truly competitive and resilient to emerging technologies and challenges. We must work to ensure that Ayrshire folk are better connected to the economy, and have better and greater opportunities to prosper. I believe, and all MPs on the SNP Benches believe, that the Ayrshire growth deal provides a compelling route towards achieving that. We have so many resources and successes in Ayrshire to build upon, with our aerospace and space industry, life sciences and manufacturing.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

As well as the beauty that my hon. Friend has mentioned, we also have incredible potential. Even in my small part of Ayrshire, we have life sciences at one end and at the other an airport that not only was Scotland’s first passenger airport but has the potential to be the UK’s first spaceport, with its long runway, its clear weather and an air traffic control centre and aerospace cluster. We have the pieces of marble in the grass; we just need help to put them on top of each other.

[Patricia Gibson]

My hon. Friend has well articulated the importance of the spaceport to Ayrshire and the opportunities it would bring to build on that to spread and attract growth to Ayrshire.

In addition, we can enhance Ayrshire’s beautiful coast and capitalise on the considerable opportunities that Ayrshire’s harbours and ports provide. Indeed, proposed projects are well placed to feed into the delivery of national tourism strategies, such as marine tourism. This is an area in which there is great potential for growth in Ayrshire, but the infrastructure to make it possible is essential, alongside opportunities for the provision of land for the development of new housing.

I am particularly excited about the coastal regeneration of Ardrossan. Investment of about £22 million will deliver a transformation of the port as a regional transport interchange, serving south-west Scotland. Ardrossan is Scotland’s largest and busiest ferry terminal and is well placed to play a key role in delivering wider benefits to communities and businesses across Ayrshire. The prize is a port that will serve and promote a range of opportunities—cruising, leisure, marine tourism, waterfront residential—as well as improving lifeline services to the Isle of Arran, which I believe will continue to be served by the port of Ardrossan.

My hon. Friend the Member for Central Ayrshire (Dr Whitford) mentioned the exciting project for the establishment of a spaceport at Prestwick airport. Estimates from the Spaceport UK report of 2014 show that a spaceport has the potential cumulatively to realise a baseline of £320 million of additional economic activity.

The vision is also for Ayrshire to be recognised as a centre of excellence for digital skills. This can be done by developing—indeed transforming—the use of digital technology in schools, weaving technology through the teaching and learning process. Ayrshire’s Connected Classroom initiative is a recognition that digital is a key enabler of science, technology, engineering and mathematics —the so-called STEM subjects—and aims to ensure that our young people are well prepared for our increasingly digital world. Such a digitally savvy generation will support the exciting potential of Ayrshire’s space industry and aerospace innovation district.

[Alan Brown]

The digital connectivity initiative is a fantastic scheme giving every kid in Ayrshire from the age of three to 18 the highest level of digital connectivity. It is a welcome ambition and will help to close the skills and productivity gaps, as those young people move into the workforce, and the aim of a 40% higher entry level into the digital workforce is laudable. Just yesterday, I was reading an EU Commission report saying that the UK has 5,000 such skills vacancies but that this figure is predicted to rise to 161,000. So such an initiative could open up opportunities across the entire UK.

[Patricia Gibson]

Indeed, it could. The importance of upskilling our population cannot be underestimated when we are talking about inclusive economic growth.

North Ayrshire schools have the third-highest rates of positive outcomes for school leavers in Scotland. By continuing to ensure that our transitions from school are robust and continue to develop, Ayrshire is well placed to meet changing economic challenges, and this will enable our communities to become more prosperous, ambitious and vibrant. The UK’s medicine industry is one of the leading manufacturing sectors, with exports worth more than £22 billion. The medicines manufacturing innovation centre is a national innovation centre for the life sciences and pharmaceutical industries, and north Ayrshire is shortlisted to host it. Infrastructure funding secured through the Ayrshire growth deal would go a long way to seeing it constructed in Ayrshire’s i3 investment park in Irvine before too long. Ayrshire has so much to offer. All Members, including the Minister, are invited to sample some of its delights, both in the gastronomic sense and in the context of business potential.

[Corri Wilson (Ayr, Carrick and Cumnock) (SNP)]

I am lucky enough to have some fantastic drinks companies in my constituency, including the company that produces Hendrick’s gin, and Caledonian Bottlers and Ayr Brewing Company, as well as wonderful food suppliers such as We Hae Meat, Barwheys Dairy, Chocolati and Roundsquare Roastery, which roasts coffee beans. In fact, there are too many to mention. Does my hon. Friend agree that the growth deal would give a welcome and much-needed boost to Ayrshire, which would include the food and drink sector?

[Patricia Gibson]

Indeed. One of Ayrshire’s real selling points, and one of the reasons why so many tourists go there—apart from the fantastic scenery and the lovely people—is the provision of gastronomic delights, some of which my hon. Friend has just mentioned. However, I would not want the Minister to think that it was just about the alcohol. We have so much more to offer—although the alcohol does go down well too.

The event at which the gastronomic delights that the Minister, and indeed all Members, are invited to sample will take place on 8 February. It will be hosted by all four Ayrshire Members, and what it will show—if, indeed, it needs to be shown to those who have not yet been lucky enough to visit the county—is that Ayrshire is one of the most productive agricultural regions in the United Kingdom, which is well known for its outstanding and award-winning food and drink produce. It is home not just to a range of dairy, beef and seafood suppliers, but to world-renowned farmhouse cheese makers, ice cream producers, bakers, brewers, smokehouses, chocolatiers, and, of course, all the businesses that my hon. Friend mentioned.

[Alan Brown]

And the world Scotch pie championships.

[Patricia Gibson]

Yes, indeed.

Perhaps it is because of the presence of all the businesses that might supply the gastronomic feast that we could put in front of you in Ayrshire, Madam Deputy Speaker, that the town of Dalry, in my constituency, houses a very well-respected Michelin-starred restaurant, which I recommend to you.

Ultimately, the Ayrshire growth deal is about people. It is about removing barriers to employment, upskilling our workforce to address the issue of low pay, and promoting apprenticeships.

[Dr Whitford]

I am sure my hon. Friend agrees that we have an additional strength. The three separate campuses belonging to Ayrshire College work closely with our local employers in the aerospace and food and drink sectors to ensure that the young people training in those sectors—along with other young people from the senior sections of our schools—have access to the same equipment and materials that they would use professionally. It is a great relationship: the college is delivering the skills that local industry needs.

[Patricia Gibson]

Absolutely. That is an excellent point. I think that the other colleges in the United Kingdom should note the links between Ayrshire College and local employers. That delivery to young people of the skills that employers say they need and that are in short supply is second to none. The college has won many accolades—far too many for me to mention to the Minister today—for its work in this sphere, and in several others as well.

[Alan Brown]

Ayrshire College recently opened a £53 million new campus in Kilmarnock. It is a fantastic facility, and it is all about getting people ready to go into the workplace. It has been built on the site of the former Johnnie Walker bottling plant; that iconic industry has been lost to the town. As part of the growth deal, the HALO project is expected to achieve the final regeneration of the entire site. It is predicted that the project will generate nearly 1,000 jobs, and it is shovel-ready. That is another fantastic aspect of the Ayrshire growth deal: some projects come out of the ground very quickly, and we see real results within a very short time.

[Patricia Gibson]

I thank my hon. Friend for making that point. As the Minister will be well aware, economic growth creates more economic growth: it creates its own dynamic. If we secure this investment, Ayrshire will grow from a flower into a tree. [Interruption.] That was very poetic; I may represent some of the parts of the country that Robert Burns was familiar with, but I do not have his skill in that regard.

We want to remove the barriers to employment, to upskill our workforce to address the issue of low pay, to promote apprenticeships, linking them with schools and investing in our schools and local colleges, and to support local companies with the greatest ambitions for growth. We also want to attract new inward investment, to deliver on key infrastructure projects such as the Dalry bypass—which is very close to starting—to improve connectivity, to improve public transport, and to improve digital connectivity by investing in the roll-out of superfast broadband.

I am very pleased that we have secured this debate on the Ayrshire growth deal in the Chamber of the House of Commons. I am delighted that, as far as I have been able to establish, this is the first time Ayrshire has been centre-stage in the House of Commons. I am proud that my colleagues have, with me, set out the ambitious plans for Ayrshire—our bold vision which requires what is, in the scheme of things, quite a modest £359.8 million of investment, which will of course be in partnership with the Scottish Government and local authorities. I am delighted that the UK Government are engaged in this debate and I hope that, with this investment forthcoming, Ayrshire can enjoy inclusive growth and her greatest asset—her people—can reach their true potential.

If I may be permitted to have another bash at the poetry, I will add that, relative to what it is now, as much as it is now, the Ayrshire growth deal could awaken what may be called the economic sleeping giant of Ayrshire. Wonderful as this part of the country is, it could be—and I hope, with the UK Government’s help, it will be—so much more.

The Ayrshire growth deal seeks to create a virtuous circle of growth: growth in business leading to growth in employment, and growth in individual household prosperity—and, as a benefit from that, growth in health outcomes. I urge the Minister to support it, and I urge the Chancellor of the Exchequer to offer support to Ayrshire’s growth deal when he delivers his deliberations in his spring statement on 8 March. I urge him to work with us—the four Ayrshire MPs—the three Ayrshire local authorities, and the Scottish Government.

This vision is a partnership of the best in the private and public sectors and represents key stakeholders in Ayrshire. It represents the local knowledge of Ayrshire College, the University of the West of Scotland, and the Ayrshire chamber of commerce, which has been fused with the national expertise of Scottish Enterprise, Skills Development Scotland, the Scottish Futures Trust and the Scottish Council for Development and Industry. We are all working together for the good of Ayrshire and her people. I ask that the UK Government in their spring statement join in with and support that work and invest in the county and the people of Ayrshire.

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[Michael Ellis]

I do not accept that characterisation. It is important to note that employment in North Ayrshire and Arran is up by 1,100 over the past year and by 300 overall since 2010, so things are clearly moving in the right direction.

[Patricia Gibson]

The Minister is correct to talk about the importance of city deals, but is it fair that communities that do not happen to be part of a big city are left to suffer without UK Government support? He was quite right to mention the Scottish Government, which are on board and doing all they can, but I said in my speech—I know he was listening—that UK Government support is essential here. Is Ayrshire to be punished simply because, through an accident of geography, it does not happen to be part of a city?

[Michael Ellis]

The hon. Lady clearly represents a picturesque rural area, but she will no doubt recognise that the United Kingdom Government have provided very significant support to large conurbations, to city areas, by way of the city deals, which we use as an example of the Westminster Government’s support for such areas. The proof of the pudding is in the eating, and the city deals are an example of the Government’s support. This option is open to the Scottish Government, who have devolved responsibility for economic development. There is no rationale for disregarding the fact that the Scottish Government, wishing to have that devolved responsibility, do have it and can use the very significant resources available to them.

Oral Answers to Questions

Patricia Gibson Excerpts

Tuesday 17th January 2017 Commons Chamber

The Chancellor of the Exchequer was asked—

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

1. What discussions he has had with his Cabinet colleagues on the Ayrshire Growth Deal.

[The Chief Secretary to the Treasury (Mr David Gauke)]

We have regular discussions with Cabinet colleagues on how the Government can boost growth and productivity across Scotland and the UK. The Government are discussing city deals for Edinburgh and Stirling, and we are looking forward to receiving proposals from the Tay cities. The Government are focused on taking those deals forward as we look to agree city deals for all of Scotland’s great cities.

[Patricia Gibson]

Would the Chief Secretary to the Treasury agree that the Ayrshire growth deal would generate investment and create the economic conditions to achieve a step change throughout Ayrshire, an area of huge potential? Will he commit today to working actively and constructively with the four Ayrshire MPs, the three Ayrshire local authorities and the Scottish Government to support the deal, to the benefit of the whole county of Ayrshire?

[Mr Gauke]

Up to this point, growth deals have been city growth deals and, by definition, have focused on cities. As I said earlier, we have made a lot of progress on all the Scottish cities. Of course, it is open to the Scottish Government to take forward projects to enable growth in the county of Ayrshire, if they wish to do so.

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[The Financial Secretary to the Treasury (Jane Ellison)]

I thank my hon. Friend for that point, which I am happy to discuss. It is worth putting on record that VAT is projected to raise £138 billion for the public finances this year. We have one of the highest thresholds in the EU, but I am always happy to listen to colleagues. I know that the concerns of the tourism industry are to the fore in the minds of many colleagues.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

T6. Last week, the Nuclear Decommissioning Authority began a statutory consultation on UK Government plans to cut final salary pensions across the nuclear estate, which will have an impact on 16,000 workers, including hundreds in my constituency. Is the Chancellor aware that this is a betrayal of promises made by Margaret Thatcher to nuclear workers when the electricity industry was privatised?

Concentrix

Patricia Gibson Excerpts

Wednesday 26th October 2016 Commons Chamber

[Mhairi Black (Paisley and Renfrewshire South) (SNP)]

The Scottish National party will fully support Labour’s motion. I thank the hon. Member for Salford and Eccles (Rebecca Long Bailey) for making the case so eloquently, but I think it is worth while reiterating some key points.

HMRC gave the contract to Concentrix, with the

“additional capacity to review and correct tax credit claims that are potentially based on incorrect information.”

One of the main tasks of Concentrix was to find people with an “undisclosed partner” and to see whether they were claiming the benefit as a single person but actually living with others. That is where the problem really begins. Concentrix spent a considerable amount of money putting out “fishing” letters to try to catch people claiming fraudulently. In a written answer on 7 September, the Treasury Minister said that Concentrix sent out 381,000 letters to tax credit claimants requesting proof of single status; 254,000 letters asking for details of hours worked; and 312,000 letters asking for evidence of childcare use.

Concentrix’s logic was that, unless people replied with the appropriate evidence, their tax credits would be stopped. However, despite all those letters apparently being sent out, thousands of people had absolutely no idea they were being investigated. Quite often, they did not know that they were under investigation, or that their tax credits had been stopped.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Given the clampdown on supposedly fraudulent claims with these fishing letters, would it not be good to see the same rigour applied to aggressive corporate tax avoidance?

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[Kevin Foster]

The focus should be on what went wrong, waiting to see what the National Audit Office comes up with—I shall say more about that shortly—observing the reaction to that and dealing with the issues, rather than getting into a debate about whether the gesture of an apology should be made. That said, I am pleased that the Government are not seeking to nit-pick the Opposition motion, that we are not going to divide the House, and that, effectively, we will support the motion. That, I think, speaks for itself.

In the light of the problems that had been raised with me, I welcomed the Government’s action in making it very clear that the contract would not be renewed. It is over a month since the last new case was sent to Concentrix. I am also pleased that HMRC is moving in to resolve many of the issues.

[Patricia Gibson]

Will the hon. Gentleman give way?

[Kevin Foster]

Will the hon. Lady give it a moment? I shall make some more progress, for now.

I said that HMRC was moving in. It should be noted that that organisation has had its own customer service issues in the past. In fact, in the next half hour my fellow members of the Public Accounts Committee will be discussing and examining its customer service. There have been some welcome improvements recently, but many Members who are present today will have had their own experiences of sitting and waiting to get through to the “hotline”.

Concentrix: Tax Credit Claimants

Patricia Gibson Excerpts

Tuesday 18th October 2016 Westminster Hall

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Like other Members in the Chamber, I am all too aware of the significant number of people caused great hardship by the withdrawal of tax credit payments. Many of them are in my constituency of North Ayrshire and Arran. Some of my constituents have had payments stopped because the claimant has been incorrectly accused of sharing a home with a non-existent partner. Tax credits have been suddenly and unexpectedly withdrawn, with the claimant even having difficulty in securing any kind of explanation, however misguided and mistaken that explanation turns out to be. Claimants are on the phone for hours over weeks and weeks, and are caught up in a grotesque bureaucratic nightmare. The system seems to mock their hardship, leaving them to rely on food banks.

There can be no doubt that the system is a mess. Concentrix’s indiscriminate and groundless accusations of fraud directed at low and middle-income families is completely unacceptable, and cause huge emotional distress, financial hardship and utter despair. Now we know from reports that Concentrix’s misconduct could be in breach of the Data Protection Act, since claimants’ details have been known to have been sent to the wrong address. The allegations are extremely serious and must be fully investigated by both Concentrix and HMRC. Outstanding cases must be dealt with urgently. Only then will the hardship caused end. I urge the Minister to indicate how and by when that will happen. Concentrix’s contract expires in May 2017, but the suffering continues right now. Urgent action is needed to protect claimants from this appalling situation.

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[Simon Kirby]

I will not give way.

Thirdly, anyone who does not agree with Concentrix’s decision has a right to ask for a review called a mandatory reconsideration. HMRC has allocated its own staff to carry out such reviews within 21 days of the request. It is a large organisation with flexible staffing, so it is able to deal with peaks and troughs of demand. The hon. Member for Aberavon (Stephen Kinnock) mentioned the issue of extra costs, but I am confident that there will not be any.

[Patricia Gibson]

Given the extra work being created for HMRC to clean up the mess created by Concentrix, does the Minister have any view on the fact that one third of HMRC staff will be cut by 2021?

Oral Answers to Questions

Patricia Gibson Excerpts

Tuesday 19th July 2016 Commons Chamber

[The Economic Secretary to the Treasury (Simon Kirby)]

I know that my hon. Friend takes a keen interest in this interesting and increasingly complex matter. It is very important that people have the skills they need to help them to navigate financial matters, which is why in 2014 the coalition Government made financial education part of the national curriculum in English schools. That said, I am quite happy to concede that there is more work to be done.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

T6. Even excluding cuts to welfare and capital spending, the Office for Budget Responsibility forecasts that funding for day-to-day public services will fall between 2009-10 and 2019-20 by the equivalent of about £1,800 per head, while between 2014-15 and 2019-20, day-to-day spending per head is forecast to fall by £1,000 per head. What plans does the Chancellor have to reverse this dangerous trend?

[Mr Hammond]

I have no plans at the moment to reverse the spending plans set out by my predecessor. Any such plans will be announced in the autumn statement. I would say to the hon. Lady, however, that Scotland now has devolved taxation and spending powers and can consider addressing the balance within its own competence.

Fixed Odds Betting Terminals

Patricia Gibson Excerpts

Tuesday 26th April 2016 Westminster Hall

[Jim Shannon]

I seek a lesser number in the shops, and fewer shops as well. We agree on many things, but we do not agree on this topic. The opinion that I express will win: ComRes did a survey of MPs seeking their opinion, and of the MPs who responded, seven out of 10 want FOBTs regulated. They want a reduction in the number of machines and shops. It was quite clear. If a private Member’s Bill is brought before the House—some in this Chamber are of a mind to do that—we can tackle the problem.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Does the hon. Gentleman agree that reducing the maximum stake to £2, which is opposed by betting shops, would be a good way forward?

[Jim Shannon]

I thank the hon. Lady for that; it is one of my concluding points. I know that other Members are of the same opinion. Yes, the maximum stake should be lowered; then we could manage the issue, so that people are not deprived.

The regulation of FOBTs is out of kilter, as I have said. The only material restriction is the four machines per shop. We have seen an increase nationally in the number of betting shops in town centres, and last year the Government stepped in and imposed a £50 staking threshold on fixed odds betting terminals, above which players are required to identify themselves to staff or sign up for a loyalty card. The objective of this measure is to help players stay in control. I suggest that that has not happened. The measure is non-evidence-based and the Department for Culture, Media and Sport failed to quantify what impact it would have on players other than the £17 million reduction—1%—in bookmaker revenue from the machines. Secondary research based on the British gambling prevalence survey 2010 estimates that up to 40% of B2 revenue comes from at-risk and pathologically addicted players—higher than all other combined gambling activities—so the Government predicted very little impact. There is also evidence that bookmakers are using the player registration as a mechanism to market FOBTs further.

An evaluation of the DCMS assessment of the £50 measure so far, carried out by Landman Economics, highlighted issues with the quality of the data provided by the bookmakers; it also noted that DCMS could not assess changes in staking, mentioned the absence of a pilot scheme so that the measure could be evaluated better, and noted that the evaluation omitted key questions that it is important to consider when looking at the success or failure of the £50 regulations. For example, the question why fixed odds betting terminal machine players might wish to remain anonymous is not discussed. Despite the Government measure, players are still able to stake up to £100 per spin, and it appears that bookmakers are using the change as an opportunity to further market products to vulnerable gamblers. Even £50 is still materially out of kilter in the normal gambling world.

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[Patricia Gibson (North Ayrshire and Arran) (SNP)]

It is a pleasure to serve under your chairmanship, Sir Alan. I congratulate the hon. Member for Strangford (Jim Shannon) on securing this debate. We have witnessed today the common agreement among most in this Chamber that there is a particular problem with fixed odds betting terminals, which leads those who are vulnerable and seduced by the promise of easy money into all sorts of difficulty.

In my constituency and the neighbouring constituency, there are 135 FOBTs in bookmakers, where gamblers racked up losses of more than £5 million in the year to 2015. Those are two constituencies with some of the deepest pockets of poverty and deprivation in the entire United Kingdom, and they host 37 betting shops. That spend of more than £5 million is set to increase, and campaigners have expressed deep concern.

This problem affects some of the most vulnerable people in communities right across Scotland and the United Kingdom. People who struggle with gambling are drawn in by the glamour, the glitter and the promise of easy wins for the hollow thrill that these machines offer. They promise so much and deliver so little. We have heard today that vulnerable players are gambling as much as £100 in 20 seconds. Who can afford to sustain such losses without facing huge difficulties? It is no wonder that FOBTs are called the crack cocaine of the gambling world.

So far, the approach of the gambling industry has been about self-exclusion, but we know that that does not work. Research has shown there were around 22,000 self-exclusions in 2012-13, but more than two thirds of those who self-excluded cancelled the exclusion after the minimum period expired. As the hon. Member for Congleton (Fiona Bruce) has pointed out, this is an issue of social justice. It is clear that the particular danger of these machines is that so much money can be lost so quickly. We cannot continue to stand aside and watch this problem develop. The casino industry has said in evidence to the Scottish Parliament that these machines are a hard form of gambling and are completely unsuitable, as we have heard today, for the unsupervised environment of a bookmakers shop.

We know that more research needs to be done to inform policy. We need play to be safe and enjoyable. The Responsible Gambling Trust has said there should be further studies so that we can target problem gamblers using informed research. It is time the Government looked at the recommendations from the Responsible Gambling Trust on these machines.

We have heard today about inconvenient truths, and I would like to point out one such truth. We have all seen areas—usually ones with socially disadvantaged communities—that have bookie after bookie on each street corner. Despite what the hon. Member for Tewkesbury (Mr Robertson) said, 55 of the most deprived boroughs in the United Kingdom have more than twice as many betting shops as those in the most affluent areas. That is an inconvenient truth. Too many local authorities feel powerless to stop that clustering, and the Scottish Government have taken action to tackle the issue through planning policy.

The betting industry has claimed that reducing the maximum stake from £100 to £2 would put betting shops at risk. It is a little known fact that like the hon. Member for St Helens North (Conor McGinn), I, too, once worked for betting shops—for two high street betting shops to put myself through university, working in just about every bookmakers in and around Glasgow. I can tell hon. Members categorically that there were no FOBTs at that time and that profitability for bookmakers was never an issue. There are now about four terminals in each shop.

I want to make a very important point. There has been an attempt to make political points in this debate, which is utterly inappropriate, but they have been raised and therefore must be answered. It was suggested that the Scottish National party did not table any amendments to the Scotland Bill with regard to these machines. I can tell the hon. Member for Hyndburn (Graham Jones), who made that point, that that is utterly untrue. Perhaps he was so busy working with his Tory allies against more powers for Scotland that he missed it. The SNP tabled an amendment on 4 November 2015 to clause 45 on page 47 and it was not accepted. It is true that some power has been devolved under the Scotland Act 2016, but what the Scottish Government are not able to do with the powers is retrospectively re-examine the licences for the number of betting terminals that are already available. The way that the powers have been devolved will create confusion because there will, in effect, be a two-tier system.

We know that these machines are an issue. We know that we need to tackle it, and I ask the Minister—if one thing comes out of today’s debate—to seriously consider making the maximum stake £2 so that people can gamble with much more safety and responsibility, and so that they are less open to being preyed upon by these machines and mistaken about the riches that they offer.

Scotch Whisky Industry

Patricia Gibson Excerpts

Wednesday 9th March 2016 Westminster Hall

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Everyone here today understands that Scotch whisky is a huge player in the UK economy and overseas markets, and without the success of this industry Britain’s trade deficit of around £35 billion would be around 11% larger. This wonderfully popular product is the biggest net contributor to UK trade in goods. Exports are worth almost £4 billion and imports in the supply chain, such as packaging for products and casks for maturing the spirit, add value to our economy. The industry’s trade balance is £3.8 billion, supporting almost 40,000 jobs, 10,800 of which are worth £1.4 billion to UK workers.

As my hon. Friend the Member for Argyll and Bute (Brendan O’Hara) pointed out, more than 7,000 workers in the Scotch whisky industry are employed in rural communities such as Arran in my constituency, leading to considerable added value in both direct and indirect incomes. Further, it accounts for 21% of the food and drink exports of the whole of the UK.

I am here today to applaud the success of this industry and its huge contribution to the UK economy. I am delighted that my constituency can boast some of the finest whisky distilleries in the UK with the Arran distillery being one of the few remaining independent distilleries in Scotland and the only malt whisky distillery on Arran, home to an award-winning dram. It opened in 1995 at Lochranza, which is the perfect location for producing the perfect malt. It is home to the purest water in all Scotland, water that has been cleansed by granite and softened by peat as it slowly meanders from the mountain tops into nearby Loch na Davie. Arran also enjoys a warm microclimate. The atmosphere of sea breezes and clear mountain air with the warm flow of the gulf stream is ideal for the speedy maturation of single malts.

I have painted a rather poetic picture. As for my hon. Friends the Members for Argyll and Bute and for Ross, Skye and Lochaber (Ian Blackford), I will put their gas at a peep because the Arran distillery, despite what they have said about their own neck of the woods, is a patron of the Robert Burns World Federation and, as such, has created a Robert Burns single malt and Robert Burns blended whisky in honour of Scotland’s national poet. It is the only whisky distillery able to use the image and signature of Robert Burns on its packaging—a true accolade indeed. [Interruption.] Not for nothing does the island of Arran have a reputation for producing the highest-quality whisky, although I am sure that the whisky from the constituency of my hon. Friend the Member for Ross, Skye and Lochaber is quite nice, too.

I join my hon. Friends in urging the Government to make a cut in excise duty on spirits at the Budget next week to boost the Scotch whisky industry. The Government must make it clear that the whisky industry will not be viewed as a cash cow, as the oil industry has been for too many years. Failing to cut the excise duty in the Budget will risk holding back this vital industry and the revenues, jobs and tax receipts from which the whole of the UK benefits. We need to help to create the conditions for the growth of this industry in our home market and stimulate long-term investment. If we cut excise duty, the revenues will go up, not down. The current staggering and eye-watering 76% tax on a bottle of Scotch whisky is far too high. Consumers hand over almost £10 on each bottle of whisky that they buy. That is 51% more duty than beer drinkers and 27% more duty than wine drinkers. That is clearly unfair and unsustainable. The 76% duty is the fourth highest rate in Europe. A cut would at a stroke support not only the whisky industry, but farmers, local pubs, rural and island economies, responsible consumers, manufacturers, exporters and supply chains across the UK.

There is no denying that distilleries are a source of jobs in areas that, as has been pointed out, might otherwise find it hard to sustain them and they are strongly aligned with wider tourism activities in rural economies. In my own constituency, a visit to Isle of Arran Distillers Ltd is all part of the experience of visiting the island of Arran.

The Scotch whisky industry is, rightly, a source of pride to all Scots, and no wonder, but it is also a huge success story that needs to be told more often. The question is not whether the UK Government can afford to cut excise duty on whisky. The question is whether the UK Government can afford not to make that cut? This is an iconic industry for both Scotland and the entire UK. It has a crucial role to play in the economic health of the UK, and that must be recognised. I urge the Minister today to support a cut in excise duty on whisky and recognise this jewel in the crown of Scotland’s —and the UK’s—industrial strength.

House of Lords Reform

Patricia Gibson Excerpts

Thursday 14th January 2016 Commons Chamber

[Martin Vickers]

Humanism has always seemed to me to be the absence of faith. We could debate the hon. Gentleman’s rather philosophical point endlessly, and I would be very happy to do so some time.

The hon. Member for West Dunbartonshire referred to a unicameral system. It would be a mistake to move to a system with only one Chamber. However, I would point out that, with devolution, Scotland is almost a unicameral Assembly; I will leave that matter to Scottish National party Members.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Although the Scottish Parliament has one Chamber, it has a very strong committee system. It is not an Assembly, but a Parliament in which the Government sit.

--- Later in debate ---

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

When I first wandered into the Chamber today, I thought I had come into the wrong debate, because the Annunciator shows the title of the debate as “House of Lords reform”. Neither my colleagues nor I believe that there can be any reforming of something that is so deeply undemocratic and rotten to the core.

There is no doubt that the general public across the UK are deeply disengaged from and alienated by much of what goes on in this place. It is dangerous for democracy when the very people it is intended to serve lose so much interest and faith in it. We can come up with warm words and grand ideas about how to tackle that, but perhaps the single most important thing we can do to repair some, although not all, of the damaging rift between those of us who serve and those whom we seek to serve would be to hear the calls—a deafening din in Scotland—to abolish the House of Lords. It is no better than a carbuncle on the face of democracy across the United Kingdom, and there is a deep sense of frustration with it across communities in Scotland. It has already been pointed out that this archaic, outdated and medieval and anachronistic institution has no place in any state that purports to be a modern, enlightened and forward-looking democracy. Just to be clear, we do not simply object to the personnel in the House of Lords, although we do; we do not recognise its legitimacy or its right to legislate over the citizens of the UK.

[Kelvin Hopkins]

I agree very much with what the hon. Lady is saying. The hon. Member for Spelthorne (Kwasi Kwarteng) suggested earlier that this subject never came up on the doorstep. Does she agree that that is because people’s first concerns are jobs, housing, poverty and the health service? However, if people are asked about the House of Lords, many would say that we should abolish it.

[Patricia Gibson]

I absolutely agree with what the hon. Gentleman has just said. When people talk to us on the doorstep, their priorities are of course job security, benefit sanctions and putting food on the table, but if we scratch the surface, we find that the House of Lords is universally hated, across the UK in my view. There might be small pockets of support among what might be called traditionalists, but for the ordinary man and woman in the street, the House of Lords is an affront to modern democracy.

What I am about to say has already been mentioned earlier in the debate. That is one of the disadvantages of being so far down the speaking list. It is bad enough that the House of Lords is unelected, but it really is quite incredible to think that we are the only state in the world apart from Iran that has clerics pontificating on legislation. That further illustrates the absurdity of this relic.

Despite all the plaudits and feeble attempts to justify the other place, perhaps by those who have pals or cronies there or those who seek to retire there themselves when the voters reject them, it cannot be justified to retain those who are unelected. They have often been actively rejected by the voters. It is arguably worse that some of them have shied away from presenting themselves to the voters at any time at all, despite having political ambitions. That really makes the House of Lords a laughing stock in the eyes of the rest of the world.

[Steven Paterson]

Does my hon. Friend share my disappointment that this Government, who made their one MP from Scotland Secretary of State, had to aggrandise or ennoble someone and put them in the House of Lords to fulfil the role of deputy—Under-Secretary of State—in the Scotland Office?

[Patricia Gibson]

Indeed, I wholeheartedly agree with my hon. Friend. I wish to add my disappointment at the fact that the Leader of the Opposition, who considers himself to have very left-wing credentials, has co-opted Members of the House of Lords into his shadow Cabinet. That is a travesty if ever there was one.

I may have been a huge fan of the political novels of Anthony Trollope in my formative years, but I have no wish to live in the 19th century. Madam Deputy Speaker, if you will indulge me for just a moment, I feel that I must share some figures with the House. My hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands) has shamed me into doing this, and marital relations would become strained if I did not mention the fact that the distinguished—certainly he is in my house—MSP for Cunninghame North unearthed some figures that showed that nearly 75% of appointments to the Lords are defeated, retired or deselected MPs or former advisers. After every election, we actually hear the stampede towards the ermine, from this place to that place. If this matter were not so serious, I would be laughing. We have hereditary peers and Church of England bishops—I have often wondered whether that means that God is an Englishman.

[Martin John Docherty]

Does my hon. Friend agree that if God were a Scotsman, he still would not want a place in the House of Lords?

[Patricia Gibson]

Absolutely. We have in the Lords cronies, party donors, party-placed men and women—although there are fewer women than men—failed politicians, and retired politicians who are looking for a wee hobby in 2016. Perhaps that was fitting in Anthony Trollope’s time, but, for the love of God—Madam Deputy Speaker, forgive me—let us get a grip. I bet that when we do get rid of this relic, just like the smoking ban we will wonder why it took so long and why we waited so long. No one on these Benches is saying that there are not some folk in the House of Lords who are well intentioned or who have much expertise and skill to offer their country’s legislative process. No one is even saying that we should not enter into a debate about the relative merits of a second Chamber to revise legislation. That is a debate that we could and should have in the future. What we are saying is that anyone who seeks to pontificate over, revise, introduce or influence legislation in our Parliament should be elected by the people whom they purport to serve. It is as simple as that.

I am almost embarrassed to repeat the numbers for China’s National People’s Congress—as I have now made comparisons with China and Iran, I can see that we are in good company with those beacons of democracy.

[Alison Thewliss]

In his book “The Point of Departure”, the late Member of Parliament for Livingston recalled an incident at a Europe-Africa summit. A president of one African country said that they could not be criticised for failing to introduce full democracy after only 50 years of independence when Britain had failed to get rid of the hereditary principle after 500 years.

[Patricia Gibson]

As I have said, we are becoming a laughing stock all over the world.

In addition—and this is a very, very serious point—we are told that these are austere times. We cannot afford to help the so-called “benefit scroungers”, but we can afford to help the “strivers”—and the House of Lords is full of them. We must punish families with more than two children, because everyone knows that if a person has a third child, they are clearly trying to get money out of the taxpayer. Yet here we have in the House of Lords what many of my constituents would call a trough. It is costing £94.4 million. This dripping roast, as my constituents would call it, costs more than the Scottish Parliament—elected, accountable, forward-thinking, enlightened and representative of the people—and has even more Members than the European Parliament.

In my view, Clement Attlee was being extremely kind when he described the House of Lords as

“like a glass of champagne that has stood for five days”.

I much prefer the analysis that the best cure for admiring the House of Lords is to go and look at it. When we sanction vulnerable folk on benefits who are five minutes late for an appointment at the jobcentre, when we hammer women born in the 1950s by moving their retirement age further away, when my constituents see Scotland’s budget being squeezed and we hear this being called “a sustainable economic plan”, I and many others ask how that sustainable economic plan impacts on the waste, the affront to democracy, the dripping roast that is the House of Lords—and these people dare to pontificate on Scotland’s constitutional future. Even the Lords themselves hardly take it seriously: attendance is around 60%, although it has improved recently, perhaps because the dripping roast is drying up and much must be suckled in the dying moments of the House.

What a tragedy it is that the 2015 Conservative manifesto indicated that the party did not consider House of Lords reform a priority. No, let us instead prioritise bashing the vulnerable and taking benefits away from the poor. The Strathclyde review was a wasted opportunity —then again, turkeys do not vote for Christmas. They can tinker at the edges all they like; they will never make this affront to democracy palatable enough for the people in my constituency that they see it as having any legitimacy. Let us abolish this carbuncle on the face of democracy. Let us listen to the people. Then, they may begin to listen to what this place has to say. I urge the Minister to screw his courage to the sticking place, to get a grip and to get rid. It is time the UK grew up.

Tax Credits

Patricia Gibson Excerpts

Tuesday 20th October 2015 Commons Chamber

[Ian Blackford]

We are not making any apocalyptic predictions about the economy. What we are talking about is the impact on hard-working families. We want to see investment in our economy. We want to see investment in innovation and skills, improving productivity and improving the living standards of all, in Scotland and elsewhere. We want to work with you so that we can improve those things.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Will my hon. Friend give way?

[Ian Blackford]

I will give way in a second, but I want to make a little bit of progress.

Let me pose this question to Conservative Members. What will you say next year to constituents, hard-working, decent folk, many of whom will have voted for you, and who have just seen their incomes cut by more than £1,000? Are you going to tell them that their hard work is paying dividends—that for them, work is paying? You do not have an answer, because there isn’t one. The policy is wrong, and you have the opportunity to change it: to do the right thing for the country, and to do the right thing for hard-working families in your constituencies.

--- Later in debate ---

[Mhairi Black]

There are two points to be made in response to that intervention. First, it is worth remembering that 85% of power over welfare remains at Westminster. Tax credit is a reserved issue. Secondly, I think that the use of the income powers highlights a deficiency in the initial argument. If there is a need for the Scottish Government to top up benefits, surely there must have been a fault in the benefits to begin with.

[Patricia Gibson]

Does my hon. Friend agree that politics is always about choice? Notwithstanding the rhetoric from the Conservatives about balancing the books, they could choose not to spend £100 billion on Trident. They could choose not to raise the threshold of inheritance tax. They could choose to close the Mayfair tax loophole completely, rather than balancing the books on the backs of the working poor.

[Mhairi Black]

I completely agree with my hon. Friend.

The House of Commons Library also tells us that the proposed changes will deliver savings of £4.4 billion in 2016-17, but that means that the Government will be taking £4.4 billion out of the pockets of the poorest people in this country. If people qualify for tax credits in the first place, it is clear that their wages are considered inadequate to live on. Given that we can cite credible evidence that the new minimum wage will not compensate for the loss of income created by the cuts, we can conclude only that they exist purely for ideological purposes and to continue the madness of austerity. As was pointed out earlier, we know that when the average person has money in their pockets they spend it. By taking £4.4 billion out of their pockets, we are taking money out of local economies, further tightening the economy and increasing the pressure placed on ordinary people.

The third and final point that leads me to believe that the Government should abandon these tax credit cuts is the two child policy. Are we really saying that people should count themselves lucky if they qualify for tax credits only for their first two children? In Scotland, 54% of families have only one child and poorer families are no different, so this aspect of the policy serves only to perpetuate the myth and the stereotype that the poorest in society have lots of children that they cannot afford. Not only that, but are we really making the disgraceful proposal to our citizens that, as our Government are so compassionate, we might consider helping them if they have a third child so long as they have been raped? Is that where we are now setting the bar for providing decent opportunities for our children—only if they are the product of rape? Forget the fact that that is a moral outrage from the get go; it is also completely unsustainable. How does someone qualify? Does there have to be a conviction for rape? Or could there just be a claim? This is completely unrealistic. What further damage will it do to women who have suffered a heinous sexual attack if we make them have to relive that attack by giving evidence to ministerial bodies?

Fundamentally, this is an ill-thought-out, illogical and harmful proposal. Even the Adam Smith Institute has just this afternoon called on the Government to remove these proposals. I am therefore proud to say that I will support the motion tonight and that the Government should abandon their current course of action immediately.

--- Later in debate ---

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

As has been pointed out, this measure is very much part of the overall narrative of this Government. They have enthusiastically embraced both austerity measures that harm the poorest and the most vulnerable households in our constituencies while giving tax breaks to the better-off, and a series of ideological measures that can only increase inequality.

Scottish National party Members believe in progressive taxation, but these changes are not progressive. They are regressive, taking proportionately more from lower-income households than from rich ones. These changes will significantly reduce the incomes of more than 200,000 households in Scotland—that is 200,000 households where choices have to be made between eating and heating, and where families have to decide whether they will have to go to the food bank again this week. If the Government want to make cuts, I suggest they are made to the £100 billion being spent on Trident. If the Government want to make cuts, I suggest they do not increase tax breaks in respect of inheritance tax thresholds.

As the youngest of eight children to a widowed mother, I grew up in deep poverty—I know what it is like. I know what it does to aspiration and to motivation, and I know how corrosive it can be to every area of life. I suspect that if more Government Members had lived the life that I have lived, they would not be supporting this measure tonight. I do not want any child in Scotland to grow up in more poverty than they are already in. I do not want any child in the UK growing up in poverty. Far from the mantra of “making work pay”, this measure punishes the working poor. I ask the Government to consider the impact of this measure on our poorest families; they should consider the impact on our households and on our most vulnerable children. Anyone who truly believes in a fairer society must reject this measure. Anyone who supports this measure tonight should hang their head in shame.