Oral Answers to Questions

Debate between Tommy Sheppard and David Mundell

Wednesday 1st March 2017 Commons Chamber

[David Mundell]

I have said previously from this Dispatch Box that I do not support the devolution of immigration powers to the Scottish Parliament, but I do support arrangements that will ensure that the vital workers needed in depopulating areas, skilled areas and in areas that rely on seasonal workers can come to Scotland.

[Tommy Sheppard (Edinburgh East) (SNP)]

Earlier, the Secretary of State refused to confirm that Scottish fishing and Scottish agriculture would become the responsibility of the Scottish Parliament. When will his Department present to the Joint Ministerial Committee a list of powers that will be devolved to the Scottish Parliament after Brexit, or will he refuse to do so and simply follow instructions from No. 10?

[David Mundell]

What I want to do and what I have attempted to do is engage in a constructive discussion and dialogue with the Scottish Government and the Scottish Parliament about how we repatriate powers from Brussels. I do not try to make a serious and wrong political point that this is an attempt to destabilise the Scottish Parliament, because I know that when the process is complete, the Scottish Parliament will have more powers than it does today.

Scotland’s Fiscal Framework

Debate between Tommy Sheppard and David Mundell

Wednesday 24th February 2016 Commons Chamber

[Tommy Sheppard (Edinburgh East) (SNP)]

My constituents will welcome this agreement. In particular, they will welcome the fact that the Scottish Government were able to persuade the Treasury to abandon its initial position, which would have meant £7 billion of cuts to Scottish finances, and to come to the Smith position that there should be no detriment. They will observe though that had that been the original position for the Treasury, we might have been able to get this agreement before Christmas rather than spend all this time on it. Will the Secretary of State confirm that it is now the case, beyond doubt, that the principle of no detriment to the Scottish budget is enshrined in his Government’s thinking both now and in the future?

[David Mundell]

Yes, as is the other element of the Smith commission consideration of no detriment, which is taxpayer fairness—not just in Scotland, but across the UK.

Scotland Bill

Debate between Tommy Sheppard and David Mundell

Monday 6th July 2015 Commons Chamber

[Tommy Sheppard (Edinburgh East) (SNP)]

rose—

[David Mundell]

Let me complete this point. Fort Kinnaird is held by an English limited partnership in which the Crown Estate manages an interest alongside other commercial investors. The partnership owns property in other parts of the United Kingdom. Fort Kinnaird has never been wholly and directly owned by the Crown. Revenues from the Crown Estate’s interest in Fort Kinnaird will therefore continue to be passed to the UK Consolidated Fund for the benefit of the UK as a whole.

The hon. Member for Edinburgh South (Ian Murray) raised the coastal communities fund. Coastal communities funding has been allocated for 2014-15, 2015-16 and 2016-17. The Government have committed themselves to the coastal communities fund until 2016-17. Devolution of the Crown Estate in Scotland will not impact on this funding.

In answer to the points raised by my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve), the position on the Crown Estate Commissioners is that they will still be able to make commercial investments in Scotland, as and when opportunities arise in the Scottish market.

Scotland Bill

Debate between Tommy Sheppard and David Mundell

Tuesday 30th June 2015 Commons Chamber

[David Mundell]

On this occasion, I am afraid I will disappoint the hon. Member for Edinburgh South (Ian Murray) because I am going to speak for more than 90 seconds. I have enjoyed hearing the full contribution rather than just interventions from the hon. Member for Ross, Skye and Lochaber (Ian Blackford), although the length was probably not that different. The hon. Member for North Ayrshire and Arran (Patricia Gibson) gave a spirited contribution, although I did not recognise myself in her description. As for the hon. Member for Edinburgh East (Tommy Sheppard), we are in agreement on so many things; it is only bits in his contribution that spoil it. I do trust the Scottish Parliament and I want it to make significant decisions on welfare unimpeded by the views of the UK Government. I shall say more about clause 25(3) later, but there is no restriction on the policy decisions of the Scottish Government and Parliament in relation to those provisions. The issue is about timing.

Let me make some wider comments about what was said by the hon. Gentleman. As I have said throughout, I am reflecting on points that have been made during all our discussions. I have given that undertaking not just to Parliament but to the Devolution (Further Powers) Committee, and, indeed, to the Scottish Government. If Members want selective quotations from Mr Swinney’s letter, I will give them one that I think sums up the situation.

“When we met on 25 June we agreed on a programme of work to be undertaken before Report stage with a view to producing a Bill that reflected the Smith commission, the concerns of stakeholders and the views of the Scottish Parliament.”

That is absolutely my position, and I am committed to working with the Deputy First Minister in that regard.

[Tommy Sheppard]

Does the Secretary of State not accept that, if we read further in the letter, we find that the Deputy First Minister fears that that process is not going to take place? We, too, are marvelling at the fact that after four days of debate, the Secretary of State still refuses to accept one single line of one single amendment that has been put to him.

[David Mundell]

I think that the hon. Gentleman has got the order of the statements in the letter wrong. Mr Swinney says that if the process did not take place, the undertaking would obviously not be valid. That is of course correct, but my approach to the Bill is to proceed with it on the basis that it fully reflects the Smith commission proposals, and that it takes account of the issues and concerns that have been raised.

SNP Members have tabled a number of amendments with which I do not agree, but which I think might be described as Smith-plus. We are listening to the points being made about the amendments, but we are also listening to what everyone is saying about the Bill in its current form and how it reflects Smith. I have appeared before the Devolution (Further Powers) Committee, and we have had a lengthy discussion about the clauses that we have debated today. I expect to have further discussions with the Committee, and there will, of course, be further parliamentary debate.

Much of what is being said is predicated on the view that the Scottish Government and the United Kingdom Government are always at odds. That is simply not the case, and it should not be given common currency. On 90% of issues, the two Governments work together very closely for the benefit of the people of Scotland. They are working together closely on very serious ongoing issues at this moment, and there are absolutely no problems and no need to resort to external review processes. The Smith process established a shared response for welfare, and I think that it shows that we must adopt a new mindset. That, to me, is what the spirit of the Smith commission is about: working together in a shared space. A commitment to doing that is as important as anything in the Bill.

The hon. Member for Banff and Buchan (Dr Whiteford) is always extremely passionate about these issues. I generally consider her to be a reasonable person until she stands up to speak in the Chamber. The way she has portrayed the relationship between the two Governments is simply not correct. We have established a joint ministerial working group on welfare, and last Thursday I met Alex Neil—no doubt there will be a letter about that meeting—to discuss the transitional arrangements and the next meeting of the joint ministerial group. Our discussions have been very productive and have led to a great deal of good work on the transition of powers and the establishment of processes in Scotland. I see no reason to believe that that cannot continue. That is what people in Scotland want: they want the two Parliaments and Governments to work together. They do not want to see constant bickering and I am making a determined effort to ensure that that does not happen and that we can deliver a process.

I am conscious of, and respect and take into account, the views of charities and voluntary organisations.

Scotland Bill

Debate between Tommy Sheppard and David Mundell

Monday 29th June 2015 Commons Chamber

[The Secretary of State for Scotland (David Mundell)]

May I start by agreeing with the hon. Member for Edinburgh South (Ian Murray) that we should put on record our thoughts for those people who have been caught up in the events in Tunisia, particularly those from Scotland who have perished? Although our debate has been curtailed today, it is right that that matter has been given such due consideration in this House.

I say to the right hon. Member for Orkney and Shetland (Mr Carmichael) that I have considered the various issues raised in the House in the first part of our Committee stage, and I will continue that approach through the further days in Committee.

[Tommy Sheppard]

rose—

[David Mundell]

I would like to make a little progress.

Since the Committee last met, I have had the opportunity to appear before the Devolution (Further Powers) Committee—to give it its full title—and to listen to its views and explain the Government’s stance. I can assure the hon. Member for Dundee East (Stewart Hosie) that that Committee will continue to play a full part in my consideration of the Bill as it progresses through the House, and I have assured the convener of that.

I had a very useful meeting with the Deputy First Minister to look at how we move forward, particularly in relation to the fiscal framework, and I am going to disappoint the hon. Gentleman, but in a good way, because the criticism that was forthcoming from the Committee to both me and the Deputy First Minister was that we both said the same thing to the Committee, which was that we are not going to give a running commentary on the negotiation of the fiscal framework. What I can say is that the list of issues that the hon. Gentleman referred to in his contribution will be part of the discussion of the fiscal framework. We will of course keep this House updated from a UK Government perspective, but it will be for the Scottish Government to keep the Scottish Parliament updated.

I am pleased to start with the clauses on income tax in today’s debate. These are often overlooked, meriting only a few lines in the comments received on the Bill from both Parliaments and from the Scottish Government, but that is because, as has been said, they command widespread support as delivering the central aspect of the Smith agreement in full.

The changes made by clauses 12, 13 and 14 will give unprecedented flexibilities to the Scottish Parliament on income tax and are a significant milestone in Scotland’s devolution journey within the UK. The Scottish Parliament will be able to set income tax rates and thresholds for earned income. This includes the ability to introduce new bands.

--- Later in debate ---

[David Mundell]

The Deputy First Minister, Mr John Swinney.

Ruth Davidson, however, has set out the Scottish Conservative position by saying that Scotland would never have higher rates of income tax than the rest of the UK. If people elect Scottish Conservative MSPs next May, that is what they will get. Scots voted decisively to remain within a United Kingdom. The UK is more than just a name and a flag; it is a social and fiscal union in which risks and rewards are pooled and shared. The Smith commission looked closely at a range of tax powers and agreed on a package of devolution that enhances Scotland’s place within the United Kingdom. It strikes the right balance, by empowering the Scottish Parliament, while maintaining the UK’s strength and coherence. There is a good reason for transferring every power that we are devolving in the Bill, and a good reason for keeping in reserve everything that we are not devolving.

Turning to amendment 124, devolution of income tax is a significant step, but it is important to remember that in the independence referendum only last September, the Scottish people decisively opted for the security of being part of the UK family of nations, and part of that is a single, cohesive income tax system. That is why HMRC will administer Scottish income tax for the Scottish Parliament as part of its UK-wide management of income tax, thus minimising the burdens on employers and individuals. It is also why the Smith commission—which it is important to remember all parties present in the Scottish Parliament signed up to—specifically decided after careful consideration not to devolve the personal allowance.

[Tommy Sheppard]

Colleagues here are finding it incredibly depressing that on this, the third day of our debates on this important Bill, the Secretary of State still seems to be resisting completely any amendment to his point of view. What parallel universe is he living in if he thinks that the will of his party, which has one representative in Scotland, should prevail over the wishes of the majority of the electorate in Scotland, who voted decisively for our party and for more powers?

[David Mundell]

The world in which I live is one in which I have had a very productive discussion with the Deputy First Minister of Scotland on how we should take forward these financial measures and reach agreement on a package that will provide stability and financing for the Scottish Parliament within the United Kingdom. That is what I am committed to doing. Of course I will listen to the views expressed in amendments tabled in this House, and that is what we are continuing to do today. It is for those who are tabling amendments to make a case for their being accepted.

Scotland Bill

Debate between Tommy Sheppard and David Mundell

Monday 15th June 2015 Commons Chamber

[David Mundell]

The hon. Gentleman has already spoken a great deal on the subject this evening. I would also like to see empirical evidence to back up the suggestion made by the hon. Member for Edinburgh East that the vow and the offer of additional powers made a significant change to the referendum result, because I do not believe that such empirical evidence exists.

[Tommy Sheppard]

Is the Secretary of State suggesting that they had no effect at all? In that case, what was the point of them?

[David Mundell]

What I am suggesting is that the hon. Gentleman cannot bring forward a shred of evidence to suggest that those proposals changed the referendum result and that somehow the people of Scotland have been defrauded. The people of Scotland voted decisively no in the referendum. They voted for a strong Scottish Parliament within the United Kingdom. The vow, which was set out in the Daily Record and other outlets, was taken forward on the basis of the Smith commission, of which the Scottish National Party was a part and to which it was a signatory. I received an interesting letter today from John Swinney, the Deputy First Minister of Scotland, who was a signatory to the Smith commission recommendations. He now tells me that the Smith commission recommendations, which he signed, were incoherent. I do not understand how he came to sign those recommendations if he genuinely believed that they were incoherent. If that was the case, he should have been making some of the arguments that we have heard this evening and during the general election campaign.

Scotland Bill

Debate between Tommy Sheppard and David Mundell

Monday 8th June 2015 Commons Chamber

[David Mundell]

As my hon. Friend is aware, that proposal was in the Conservative party manifesto and it will be brought to this Parliament. [Interruption.] I think we have concluded on the issue of what devolution means throughout the United Kingdom.

The Conservative-led coalition Government passed the Scotland Act 2012—the biggest single transfer of fiscal responsibility to Edinburgh in 300 years. They also oversaw significant further devolution to Wales and Northern Ireland, as well as groundbreaking work on city deals and a step change across England with the work towards the creation of the northern powerhouse. The Bill before the House today represents a further step forward in the governance of Scotland and our United Kingdom.

The settled will of the Scottish people is now that Scotland should remain part of the United Kingdom. As such, this Bill demonstrates the Government’s determination that the Scottish Parliament should be made more powerful, more accountable yet autonomous, and better equipped to serve the people of Scotland. It is the fulfilment of our manifesto commitment that the all-party Smith commission agreement should be implemented in full. The fact that the Bill was introduced on the first day after the Queen’s Speech and that its Second Reading is taking place at the first opportunity since the general election speaks volumes for the Government’s determination to honour that manifesto commitment and get on with the job.

[Tommy Sheppard (Edinburgh East) (SNP)]

I congratulate the right hon. Gentleman on his new position and on beating off the opposition that he no doubt had in getting it. Does he not have cause to reflect that, whereas the previous Government in which he served as a Minister had the support of about a quarter of the elected Members of this House from Scotland, he is now this Government’s sole representative in Scotland? Does not that place on him a moral obligation to discuss with the elected representatives of the people of Scotland how to take forward this Bill? Is he not concerned that the all-party group in the Scottish Parliament that considered his draft proposals says that they do not equate to the proposals made by the Smith commission?

[Mr Speaker]

Order. Interventions must be brief.

[David Mundell]

I was intending to cover a number of the points that the hon. Gentleman raises. I have met the Scottish Parliament committee that was set up in relation to the Bill, and I am going to appear before it to give evidence directly on 25 June. I am in ongoing and constant dialogue with the Scottish Government in relation to this Bill. This very morning, I had a very cordial meeting with John Swinney, the Deputy First Minister, who is responsible for constitutional matters. During the four days when the Bill will be debated on a line-by-line basis, I will be very pleased to hear the suggestions and proposals that come forward from the hon. Gentleman’s group and, indeed, from any Members of this House.

[Tommy Sheppard]

What, then, is your observation on the fact that an all-party group of the Scottish Parliament, including members from your own party, has come to the conclusion that the proposals before us do not put into effect the Smith commission proposals? What is your reflection on that?